Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]



	Capital			Asset
(Dollars in thousands)	Markets			Management			Total
Goodwill
Balance at December 31, 2015	$	21,132		$	196,844		$	217,976
Goodwill acquired	60,723			419			61,142
Impairment charge	—			(82,900		)	(82,900		)
Balance at December 31, 2016	$	81,855		$	114,363		$	196,218
Impairment charge	—			(114,363		)	(114,363		)
Balance at December 31, 2017	$	81,855		$	—		$	81,855

Intangible assets
Balance at December 31, 2015	$	8,256		$	22,274		$	30,530
Intangible assets acquired	26,651			1,267			27,918
Amortization of intangible assets	(15,587		)	(5,627		)	(21,214		)
Balance at December 31, 2016	$	19,320		$	17,914		$	37,234
Intangible assets acquired	—			1,000			1,000
Amortization of intangible assets	(10,178		)	(5,222		)	(15,400		)
Balance at December 31, 2017	$	9,142		$	13,692		$	22,834

The Company tests goodwill and indefinite-life intangible assets for impairment on an annual basis and on an interim basis when circumstances exist that could indicate possible impairment. The Company tests for impairment at the reporting unit level, which is generally one level below its operating segments. The Company has identified two reporting units: capital markets and asset management. When testing for impairment, the Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after making an assessment, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then further analysis is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform a two-step impairment test, which requires management to make judgments in determining what assumptions to use in the calculation. The first step requires a comparison of the fair value of the reporting unit to its carrying value, including allocated goodwill. The estimated fair value of the reporting unit is derived based on valuation techniques that a market participant would use. The Company estimates the fair value of the reporting unit using the income approach (discounted cash flow method) and market approach (earnings and/or transaction multiples). As discussed in Note 3, the Company adopted ASU 2017-04 effective July 1, 2017. ASU 2017-04 eliminates the second step from the goodwill impairment test. Accordingly, the Company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value.

The Company identified impairment indicators in the third quarter of 2017 related to the asset management reporting unit resulting from declining profitability and performed an interim goodwill impairment test as of July 31, 2017, which resulted in a non-cash goodwill impairment charge of $114.4 million. The fair value of the asset management reporting unit was calculated using the income approach (discounted cash flow method based on revenue and EBITDA forecasts) and market approach (earnings multiples of comparable public companies).

The Company performed its annual goodwill impairment testing for its capital markets reporting unit as of October 31, 2017, which resulted in no impairment.

The Company concluded there was a $82.9 million non-cash goodwill impairment charge in 2016 related to the asset management reporting unit. The annual goodwill impairment testing for 2016 resulted in no impairment associated with the capital markets reporting unit. The Company concluded there was no goodwill impairment in 2015.

The Company also evaluated its intangible assets (indefinite and definite-lived) and concluded there was no impairment in 2017, 2016 and 2015, respectively.

The addition of goodwill and intangible assets during the year ended December 31, 2016 primarily related to the acquisition of Simmons, as discussed in Note 4. Management identified $26.6 million of intangible assets, consisting of customer relationships ($17.5 million) and the Simmons trade name ($9.1 million), which are being amortized over a weighted average life of 1.6 years and 4.0 years, respectively.

Intangible assets with determinable lives consist of customer relationships and the Simmons trade name. The following table summarizes the future aggregate amortization expense of the Company's intangible assets with determinable lives for the years ended:



(Dollars in thousands)
2018	$	10,460
2019	8,001
2020	1,256
2021	258
Total	$	19,975

- 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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