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Goodwill And Intangible Assets | 3 Months Ended
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Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill And Intangible Assets | NOTE 8 – Goodwill and Intangible Assets The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):
|  | December 31, 2017 |  |  | Adjustments |  |  | Write-off |  |  | March 31, 2018 |
Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 276,477 |  |  | $ | 13,912 |  |  | $ | — |  |  | $ | 290,389 |
Institutional Group |  |  | 692,357 |  |  |  | 1,542 |  |  |  | — |  |  |  | 693,899 |
|  | $ | 968,834 |  |  | $ | 15,454 |  |  | $ | — |  |  | $ | 984,288 |
|  | December 31, 2017 |  |  | Net Additions |  |  | Amortization |  |  | March 31, 2018 |
Intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 44,525 |  |  | $ | 10,800 |  |  | $ | (1,097 | ) |  | $ | 54,228 |
Institutional Group |  |  | 65,102 |  |  |  | 1,280 |  |  |  | (1,641 | ) |  |  | 64,741 |
|  | $ | 109,627 |  |  | $ | 12,080 |  |  | $ | (2,738 | ) |  | $ | 118,969 |
On March 19, 2018, the Company completed the acquisition of Ziegler. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Accordingly, goodwill was measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. We recorded $27.5 million of goodwill and intangibles in the consolidated statement of financial condition, which has been allocated to our company’s Global Wealth Management and Institutional Group segments. The allocation of the purchase price of Ziegler is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of Ziegler as of the acquisition date and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from that reflected herein as a result of future measurement period adjustments and the recording of identified intangible assets. See Note 1 in the notes to our consolidated financial statements for additional information regarding the acquisition of Ziegler. The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of the Ziegler business and of the hired financial advisors and the conversion of the customer accounts to our platform. Goodwill is expected to be deductible for federal income tax purposes. Amortizable intangible assets consist of acquired customer relationships, trade name, investment banking backlog, and non-compete agreements that are amortized over their contractual or determined useful lives. Intangible assets subject to amortization as of March 31, 2018 and December 31, 2017 were as follows (in thousands):
|  | March 31, 2018 |  |  | December 31, 2017 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Customer relationships |  | $ | 147,101 |  |  | $ | 58,056 |  |  | $ | 146,986 |  |  | $ | 55,809 |
Trade name |  |  | 24,713 |  |  |  | 10,610 |  |  |  | 24,713 |  |  |  | 10,228 |
Investment banking backlog |  |  | 2,603 |  |  |  | 1,273 |  |  |  | 2,598 |  |  |  | 1,202 |
Non-compete agreements |  |  | 1,431 |  |  |  | 1,058 |  |  |  | 1,419 |  |  |  | 968 |
Estimated Ziegler intangibles (1) |  |  | 12,000 |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 187,848 |  |  | $ | 70,997 |  |  | $ | 175,716 |  |  | $ | 68,207 |
(1) See discussion regarding the allocation of the estimated goodwill and intangibles recorded for the Ziegler acquisition. Amortization expense related to intangible assets was $2.7 million and $3.0 million for the three months ended March 31, 2018 and 2017, respectively. The weighted-average remaining lives of the following intangible assets at March 31, 2018, are: customer relationships, 10.6 years; trade name, 10.3 years; non-compete agreements, 9.4 years; and Ziegler intangibles, 12 years. As of March 31, 2018, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal year |  |  |  |
Remainder of 2018 |  | $ | 9,062 |
2019 |  |  | 11,541 |
2020 |  |  | 11,324 |
2021 |  |  | 10,822 |
2022 |  |  | 10,080 |
Thereafter |  |  | 64,022 |
|  | $ | 116,851 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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