XML 28 R12.htm IDEA: XBRL DOCUMENT v3.20.4
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets GOODWILL AND OTHER INTANGIBLE ASSETS
The following tables show an analysis of goodwill and other intangible assets included in goodwill and other intangible assets on the Company’s consolidated balance sheets:
Goodwill and Other Intangible Assets
At December 31, 20202019
Goodwill, net$211,013 $210,665 
Other intangible assets, net38,628 51,561 
Total goodwill and other intangible assets$249,641 $262,226 
Included in goodwill and other intangible assets on the Company’s consolidated balance sheet at December 31, 2020 was gross goodwill of $213.3 million (2019 - $213.0 million, 2018 - $199.9 million). Included in goodwill, net at December 31, 2020 was accumulated impairment losses of $2.3 million (2019 - $2.3 million).
In addition, the Company has also recorded goodwill and other intangible assets included in investments in other ventures, under equity method on the Company’s consolidated balance sheets:
Goodwill and Other Intangible Assets Included in Investments in Other Ventures, Under Equity Method
At December 31, 20202019
Goodwill, net$10,598 $10,598 
Other intangible assets, net12,368 14,326 
Total goodwill and other intangible assets$22,966 $24,924 
Included in Investments and other ventures, under equity method on the Company’s consolidated balance sheet at December 31, 2020 was gross goodwill of $15.1 million (2019 - $15.1 million, 2018 - $15.1 million). Included in goodwill, net at December 31, 2020 was accumulated impairment losses of $4.5 million (2019 - $4.5 million).
The following table shows a roll forward of goodwill included in goodwill and other intangible assets and goodwill included in investments in other ventures, under equity method on the Company’s consolidated balance sheets:
Goodwill
Goodwill and Other Intangible AssetsGoodwill and Other Intangible Assets Included in Investments in Other Ventures, Under Equity Method
Balance at December 31, 2018, net$197,590 $10,598 
Acquired13,094 — 
Foreign currency translation(19)— 
Balance at December 31, 2019, net210,665 10,598 
Foreign currency translation348 — 
Balance at December 31, 2020, net$211,013 $10,598 
The gross carrying value, accumulated amortization and accumulated impairment losses by major category of other intangible assets included in goodwill and other intangible assets and investments in other ventures, under equity method on the Company’s consolidated balance sheets are shown below:
Other Intangible Assets
At December 31, 2020Gross 
Carrying  
Value		Accumulated
Amortization 		Accumulated Impairment LossesNet
Customer relationships and customer lists$108,798 $(76,118)$(1,403)$31,277 
Licenses (1)26,214 — (6,800)19,414 
Value of business acquired20,200 (20,200)— — 
Software12,230 (12,230)— — 
Patents and intellectual property4,500 (1,875)(2,625)— 
Covenants not-to-compete4,030 (4,030)— — 
Trademarks and trade names1,710 (1,405)— 305 
$177,682 $(115,858)$(10,828)$50,996 
(1)Licenses is comprised of $19.4 million of indefinite lived other intangible assets, included in other intangible assets, net, as of December 31, 2020
Other Intangible Assets
At December 31, 2019Gross 
Carrying  
Value		Accumulated
Amortization		Accumulated Impairment LossesNet
Customer relationships and customer lists$108,641 $(67,879)$(1,390)$39,372 
Licenses (1)26,186 — — 26,186 
Value of business acquired20,200 (20,200)— — 
Software12,230 (12,230)— — 
Patents and intellectual property4,500 (1,875)(2,625)— 
Covenants not-to-compete4,030 (4,030)— — 
Trademarks and trade names1,710 (1,381)— 329 
$177,497 $(107,595)$(4,015)$65,887 
(1)Licenses is comprised of $26.2 million of indefinite lived other intangible assets, included in other intangible assets, net, as of December 31, 2019
During 2020, the Company recorded amortization expense of $8.3 million and an impairment loss of $6.8 million related to other intangible assets (2019 - $9.1 million and $Nil, respectively).
During the quarter ended March 31, 2019, the Company recognized goodwill of $13.1 million, based on foreign exchange rates on March 22, 2019, attributable to the excess of the purchase price over the fair value of the net assets acquired in the TMR Stock Purchase. In addition, the Company recognized identifiable finite lived intangible assets of $11.2 million and identifiable indefinite lived intangible assets of $6.8 million associated with TMR. Refer to “Note 3. Acquisition of Tokio Millennium Re” for additional information related to goodwill and other intangible assets associated with the acquisition of TMR.
In accordance with the Company’s established accounting policy, the beginning of the fourth quarter was used as the date for performing the annual impairment test. During 2020, the Company elected to renew certain reinsurance contracts, that had previously been written on one of the acquired TMR balance sheets, on other balance sheets within the consolidated group and placed the TMR entity into run-off. Accordingly and in connection with the Company’s impairment assessment performed during the fourth quarter of 2020, it was determined that the license associated with this acquired TMR entity, which was initially reflected as an indefinite lived intangible asset of $6.8 million at the time of the acquisition of TMR, should be written down to $Nil. The Company recorded an intangible asset impairment charge of $6.8 million during the year ended December 31, 2020.
In performing the impairment assessment, the Company first assessed qualitative factors to determine whether it was necessary to perform a quantitative impairment test. Based on its qualitative assessment, the Company determined it was not more likely than not that the fair value of the goodwill and other intangible assets in question were less than their respective carrying amounts. The qualitative assessment included the following factors which the Company determined had not significantly deteriorated given specific facts and circumstances: macroeconomic conditions; industry and market conditions; costs factors; and overall financial performance. Other than the goodwill and other intangible assets acquired and the intangible assets impaired as noted above and normal course amortization of intangible assets, in accordance with the Company’s established accounting policy, there were no adjustments to carried goodwill and other intangible assets during the year ended December 31, 2020.
The remaining useful life of intangible assets with finite lives ranges from 2.3 to 13.2 years, with a weighted-average amortization period of 6.2 years. Expected amortization of the other intangible assets, including other intangible assets recorded in investments in other ventures, under equity method, is shown below:
Other
Intangibles Assets		Other Intangible Assets Included in Investments in Other Ventures, Under Equity MethodTotal
2021$5,990 $1,095 $7,085 
20225,602 1,095 6,697 
20235,173 631 5,804 
20244,716 194 4,910 
20251,976 24 2,000 
2025 and thereafter4,902 184 5,086 
Total remaining amortization expense28,359 3,223 31,582 
Indefinite lived10,269 9,145 19,414 
Total$38,628 $12,368 $50,996