Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill—For the three months ended March 31, 2018 and 2017, changes in the carrying value of Goodwill were as follows (in thousands of dollars):



	Three Months Ended March 31, 2018						Three Months Ended March 31, 2017
	Agency		All Other		Total		Agency		All Other		Total
Beginning balance as of January 1	$	44,396	$	6,151	$	50,547	$	43,878	$	6,151	$	50,029
Goodwill acquired	5,109		—		5,109		—		—		—
Foreign currency exchange rate changes	175		—		175		68		—		68
Ending balance as of March 31	$	49,680	$	6,151	$	55,831	$	43,946	$	6,151	$	50,097

On February 2, 2018, we acquired Viyet, an online marketplace for interior design specializing in vintage and antique furniture, decorative objects, and accessories. This acquisition complements and enhances our online sales program, and provides an additional sale format to offer clients.

Intangible Assets—As of March 31, 2018, December 31, 2017, and March 31, 2017, intangible assets consisted of the following (in thousands of dollars):



	Amortization Period	March 31, 2018			December 31, 2017			March 31, 2017
Indefinite lived intangible assets:
License (a)	N/A	$	324		$	324		$	324
Intangible assets subject to amortization:
Customer relationships - Art Advisory Partners	8 years	10,800			10,800			10,800
Non-compete agreements - Art Advisory Partners	6 years	3,060			3,060			3,060
Artworks database (b)	10 years	1,200			1,200			1,125
Technology (c)	4 years	4,461			—			—
Total intangible assets subject to amortization		19,521			15,060			14,985
Accumulated amortization		(4,527		)	(3,892		)	(2,409		)
Total amortizable intangible assets (net)		14,994			11,168			12,576
Total intangible assets (net)		$	15,318		$	11,492		$	12,900


(a)	Relates to a license obtained in conjunction with the purchase of a retail wine business in 2008.


(b)	Relates to a database containing historic information concerning repeat sales of works of art. This database was acquired along with the associated business in exchange for an initial cash payment made in the third quarter of 2016 and a subsequent cash payment made in the third quarter of 2017.


(c)	Relates to taste-based image recognition and recommendation technologies acquired in the first quarter of 2018.

For the three months ended March 31, 2018 and 2017, amortization expense related to intangible assets was approximately $0.6 million and $0.5 million, respectively.

The estimated aggregate amortization expense for the remaining useful lives of intangible assets subject to amortization during the five-year period succeeding the March 31, 2018 balance sheet date are as follows (in thousands of dollars):



Period	Amount
April 2018 to March 2019	$	3,095
April 2019 to March 2020	$	3,095
April 2020 to March 2021	$	3,095
April 2021 to March 2022	$	2,782
April 2022 to March 2023	$	1,470

- 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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