Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets [Abstract]

NOTE 11 – Goodwill and Intangible Assets

Our annual goodwill impairment testing was completed as of July 31, 2013, with no impairment identified.

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, 2012		Net additions		Impairment losses		December 31, 2013
Goodwill
Global Wealth Management	$	144,377	$	16,981	$	-	$	161,358
Institutional Group		275,016		290,962		-		565,978
	$	419,393	$	307,943	$	-	$	727,336


	December 31, 2012		Net additions		Amortization		December 31, 2013
Intangible assets
Global Wealth Management	$	16,377	$	5,447	$	(2,430)	$	19,394
Institutional Group		12,590		27,256		(9,351)		30,495
	$	28,967	$	32,703	$	(11,781)	$	49,889

The adjustments to goodwill and intangible assets during the year ended December 31, 2013 are primarily attributable to our acquisitions of KBW, Inc., ZLCM, Acacia Federal, and Miller Buckfire. The allocation of the purchase price of ZLCM is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of ZLCM 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 3 in the notes to our consolidated financial statements for additional information regarding our acquisitions.

Amortizable intangible assets consist of acquired customer relationships, trade name, and investment banking backlog that are amortized over their contractual or determined useful lives. Intangible assets subject to amortization as of December 31, 2013 and 2012 were as follows (in thousands):


	December 31, 2013				December 31, 2012
	Gross carrying value		Accumulated amortization		Gross carrying value		Accumulated amortization

Customer relationships	$	51,166	$	24,034	$	40,166	$	18,648
Trade name		18,442		3,585		9,442		2,023
Investment banking backlog		7,388		6,871		2,250		2,220
Core deposits		5,447		182		-		-
	$	82,443	$	34,672	$	51,858	$	22,891

Amortization expense related to intangible assets was $11.8 million, $4.9 million, and $5.3 million for the years ended December 31, 2013, 2012, and 2011, respectively.

The weighted-average remaining lives of the following intangible assets at December 31, 2013 are: customer relationships, 5.8 years, core deposits, 4.8 years, and trade name, 9.2 years. The investment banking backlog will be amortized over its estimated life, which we expect to be within the next 12 months. As of December 31, 2013, we expect amortization expense in future periods to be as follows (in thousands):


Fiscal year
2014	$	7,726
2015		6,165
2016		5,624
2017		5,057
2018		4,394
Thereafter		18,805
	$	47,771

- 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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