Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net

The following table presents identifiable intangible assets, accumulated amortization, and goodwill by segment:



	As of September 30, 2016												As of December 31, 2015
	Insurance and insurance services			Real estate			Specialty finance			Total			Insurance and insurance services			Real estate			Specialty finance			Total
Customer relationships	$	50,500		$	—		$	—		$	50,500		$	50,500		$	—		$	—		$	50,500
Accumulated amortization	(3,553		)	—			—			(3,553		)	(1,200		)	—			—			(1,200		)
Trade names	6,500			—			800			7,300			6,500			—			800			7,300
Accumulated amortization	(1,306		)	—			(100		)	(1,406		)	(771		)	—			(40		)	(811		)
Software licensing	8,500			—			640			9,140			8,500			—			640			9,140
Accumulated amortization	(3,117		)	—			(114		)	(3,231		)	(1,842		)	—			(46		)	(1,888		)
Insurance policies and contracts acquired	36,500			—			—			36,500			36,500			—			—			36,500
Accumulated amortization	(33,455		)	—			—			(33,455		)	(28,510		)	—			—			(28,510		)
Insurance licensing agreements⁽¹⁾	13,000			—			—			13,000			13,000			—			—			13,000
Leases in place	—			29,834			—			29,834			—			23,404			—			23,404
Accumulated amortization	—			(19,105		)	—			(19,105		)	—			(14,095		)	—			(14,095		)
Intangible assets, net	73,569			10,729			1,226			85,524			82,677			9,309			1,354			93,340
Goodwill	89,854			—			2,913			92,767			89,854			—			2,913			92,767
Total	$	163,423		$	10,729		$	4,139		$	178,291		$	172,531		$	9,309		$	4,267		$	186,107


(1)	Represents intangible assets with an indefinite useful life. Impairment tests are performed at least annually on these assets.

Amortization expense on intangible assets was $3,702 and $7,922 for the three months ended September 30, 2016 and 2015, respectively, and $14,246 and $31,319 for the nine months ended September 30, 2016 and 2015, respectively. The Company conducts annual impairment tests of its goodwill as of December 31. For the three and nine months ended September 30, 2016, no impairment was recorded on the Company’s goodwill or intangibles. As of December 31, 2015, the Company recorded an impairment of $699 associated with Luxury within the Specialty Finance segment as a result of qualitative and quantitative procedures associated with our annual impairment testing.

The following table presents the amortization expense on intangible assets for the next five years by relevant segment:



	As of September 30, 2016
	Insurance and insurance services (VOBA)		Insurance and insurance services (other)		Real estate		Specialty finance		Total
Remainder of 2016	$	728	$	1,664	$	1,202	$	43	$	3,637
2017	1,250		9,865		3,418		171		14,704
2018	465		9,077		1,310		171		11,023
2019	217		7,509		621		171		8,518
2020	123		5,027		621		171		5,942
2021 and thereafter	262		24,382		3,557		499		28,700
Total	$	3,045	$	57,524	$	10,729	$	1,226	$	72,524

- 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.

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