Assets and Liabilities Held For Sale

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

On May 26, 2021, the Company entered into an agreement to sell its Insurance brokerage business to The Ardonagh Group, subject to receipt of the required regulatory approvals and satisfaction of other closing conditions and approval, for $500 million of cash consideration, subject to adjustments for working capital and other certain closing adjustments. As of September 30, 2021, the Company’s Insurance brokerage business continued to meet the criteria to be classified as held for sale. As the business still met this criteria, the Company is required to record the respective assets and liabilities at the lower of carrying value or fair value less any costs to sell, and present the related assets and liabilities as separate line items in the unaudited condensed consolidated statements of financial condition.

The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in the Company’s unaudited condensed consolidated statements of financial condition as of September 30, 2021:


	September 30, 2021
Accrued commissions and other receivables, net	$	497,845
Cash segregated under regulatory requirements	278,785
Goodwill	68,978
Other intangible assets, net 1	55,562
Other assets	38,903
Cash and cash equivalents	36,574
Loans, forgivable loans and other receivables from employees and partners, net	13,931
Fixed assets, net1	9,179
Other	3,029
Total assets held for sale	$	1,002,786

Accounts payable, accrued and other liabilities	$	784,456
Accrued compensation	14,910

Total liabilities held for sale	$	799,366

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1Depreciation and amortization expenses were not recorded during the period in which the Insurance brokerage business is classified as held for sale under FASB interpretation.

No impairment charge was recorded for the three and nine months ended September 30, 2021 as the carrying amount of the net assets was less than the fair value less costs to sell. Fair value was determined based on the sales price in the sales and purchase agreement. Further, the sale of the business did not represent a strategic shift that would have a major effect on operations and financial results and was, therefore, not classified as discontinued operations.