Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net

The following table presents identifiable finite- and indefinite-lived intangible assets, accumulated amortization, and goodwill by segment:



	As of December 31, 2016												As of December 31, 2015
	Specialty insurance			Senior living			Specialty finance			Total			Specialty insurance			Senior living			Specialty finance			Total
Customer relationships	$	50,500		$	—		$	—		$	50,500		$	50,500		$	—		$	—		$	50,500
Accumulated amortization	(4,614		)	—			—			(4,614		)	(1,200		)	—			—			(1,200		)
Trade names	6,500			—			800			7,300			6,500			—			800			7,300
Accumulated amortization	(1,484		)	—			(120		)	(1,604		)	(771		)	—			(40		)	(811		)
Software licensing	8,500			—			640			9,140			8,500			—			640			9,140
Accumulated amortization	(3,542		)	—			(137		)	(3,679		)	(1,842		)	—			(46		)	(1,888		)
Insurance policies and contracts acquired	36,500			—			—			36,500			36,500			—			—			36,500
Accumulated amortization	(34,184		)	—			—			(34,184		)	(28,510		)	—			—			(28,510		)
Insurance licensing agreements⁽¹⁾	13,000			—			—			13,000			13,000			—			—			13,000
Leases in place	1,317			32,233			—			33,550			—			23,404			—			23,404
Accumulated amortization	(18		)	(20,413		)	—			(20,431		)	—			(14,095		)	—			(14,095		)
Intangible assets, net	72,475			11,820			1,183			85,478			82,677			9,309			1,354			93,340
Goodwill	89,854			—			2,913			92,767			89,854			—			2,913			92,767
Total goodwill and intangible assets, net	$	162,329		$	11,820		$	4,096		$	178,245		$	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.

Goodwill

The following table presents the activity in goodwill, by segment, and includes the retrospective adjustments made to the balance of goodwill to reflect the effect of the final valuation adjustments made for acquisitions, the reduction to goodwill attributable to discontinued operations and any impairment related charges:



	Specialty insurance		Specialty finance			Total
Balance at December 31, 2014	$	89,854	$	1,904		$	91,758
Goodwill acquired in 2015	—		1,708			1,708
Goodwill impairment charges	—		(699		)	(699		)
Balance at December 31, 2015	89,854		2,913			$	92,767
Balance at December 31, 2016	$	89,854	$	2,913		$	92,767

The Company conducts annual impairment tests of its goodwill as of December 31. For the year ended December 31, 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. For the year ended December 31, 2014, no impairment was recorded on the Company’s goodwill or intangibles.

During the fourth quarter of 2016, the Company changed the date of its annual impairment test of goodwill from December 31 to October 1. The Company believes the change in goodwill impairment date does not result in a material change in the method of applying the accounting principle. This change provides the Company additional time to complete the annual impairment test of goodwill in advance of our year end reporting. The Company will continue to perform interim impairment testing should circumstances or events require. This change does not result in a delay, acceleration, or avoidance of an impairment charge. This change will be applied prospectively beginning in 2017 because it is impracticable to apply it retrospectively due to the difficulty in making estimates and assumptions without using hindsight.

Intangible Assets, Net

The following table presents the activity, by segment, in finite and indefinite-lived other intangible assets and includes the retrospective adjustments made to the balance to reflect the effect of any final valuation adjustments made for acquisitions, the reduction attributable to discontinued operations and any impairment related charges:



	Specialty insurance			Senior living			Specialty finance			Total
Balance at December 31, 2014	$	110,847		$	9,547		$	—		$	120,394
Intangible assets acquired in 2015	—			8,800			1,440			10,240
Less: amortization expense	(28,170		)	(9,038		)	(86		)	(37,294		)
Balance at December 31, 2015	82,677			9,309			1,354			93,340
Intangible assets acquired in 2016	1,317			8,829			—			10,146
Less: amortization expense	(11,519		)	(6,318		)	(171		)	(18,008		)
Balance at December 31, 2016	$	72,475		$	11,820		$	1,183		$	85,478

The following table present the amortization expense on finite-lived intangible assets for the following periods:



	Year Ended December 31,
	2016		2015		2014
Amortization expense on intangible assets	$	18,008	$	37,294	$	8,566

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



	As of December 31, 2016
	Specialty insurance (VOBA)		Specialty insurance (other)		Senior living		Specialty finance		Total
2017	$	1,250	$	9,975	$	3,807	$	171	$	15,203
2018	465		9,187		1,569		171		11,392
2019	217		7,619		787		171		8,794
2020	123		5,137		787		171		6,218
2021	82		4,361		787		171		5,401
2022 and thereafter	179		20,880		4,083		328		25,470
Total	$	2,316	$	57,159	$	11,820	$	1,183	$	72,478

- 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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