Goodwill And Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 8 – Goodwill and Intangible Assets

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, 2016		Adjustments		Write-off		June 30, 2017
Goodwill
Global Wealth Management	$	270,779	$	6,622	$	—	$	277,401
Institutional Group		691,503		860		—		692,363
	$	962,282	$	7,482	$	—	$	969,764

	December 31, 2016		Net Additions		Amortization			June 30, 2017
Intangible assets
Global Wealth Management	$	45,231	$	3,800	$	(2,273	)	$	46,758
Institutional Group		71,073		1,395		(3,973	)		68,495
	$	116,304	$	5,195	$	(6,246	)	$	115,253

The adjustments to goodwill and intangible assets during the six months ended June 30, 2017, are primarily attributable to the acquisition of City Securities, which closed on January 3, 2017. The allocation of the purchase price for this acquisition is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of the acquisitions as of the acquisition date and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from the preliminary estimate reflected herein. Goodwill for certain of our acquisitions is deductible for tax purposes.

Amortizable intangible assets consist of acquired customer relationships, trade name, investment banking backlog, and non-compete agreements that are amortized over their contractual or determined useful lives. Intangible assets subject to amortization as of June 30, 2017 and December 31, 2016 were as follows (in thousands):

	June 30, 2017				December 31, 2016
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Customer relationships	$	146,687	$	51,267	$	141,621	$	46,209
Trade name		24,713		9,464		24,713		8,670
Investment banking backlog		2,608		1,040		1,345		379
Non-compete agreements		1,445		547		2,578		813
	$	175,453	$	62,318	$	170,257	$	56,071

Amortization expense related to intangible assets was $3.2 million and $5.0 million for the three months ended June 30, 2017 and 2016, respectively. Amortization expense related to intangible assets was $6.2 million and $8.0 million for the six months ended June 30, 2017 and 2016, respectively.

The weighted-average remaining lives of the following intangible assets at June 30, 2017, are: customer relationships, 11.2 years; trade name, 11.0 years; non-compete agreements, 9.9 years; and backlog within the next 3 months. As of June 30, 2017, we expect amortization expense in future periods to be as follows (in thousands):

Fiscal year
Remainder of 2017	$	5,780
2018		10,953
2019		10,348
2020		10,128
2021		9,611
Thereafter		66,315
	$	113,135

- 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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