Intangible Assets, Net And Goodwill

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net and Goodwill

A summary of Intangible assets, net and goodwill at September 30, 2015 and December 31, 2014 is as follows (in thousands):



	September 30, 2015		December 31, 2014
Indefinite-lived intangibles:
Exchange and clearing organization membership interests and registrations	$	13,166	$	14,528

Amortizable intangibles:
Customer and other relationships, net of accumulated amortization of $183,145 and $155,548	465,225		493,501
Trademarks and tradename, net of accumulated amortization of $59,814 and $47,101	334,789		347,883
Supply contracts, net of accumulated amortization of $38,124 and $30,433	111,871		119,562
Other, net of accumulated amortization of $5,125 and $4,703	2,588		2,900
Total intangible assets, net	927,639		978,374

Goodwill:
National Beef	14,991		14,991
Jefferies	1,716,689		1,718,847
Other operations	8,551		8,551
Total goodwill	1,740,231		1,742,389

Total Intangible assets, net and goodwill	$	2,667,870	$	2,720,763

Amortization expense on intangible assets was $15.8 million and $16.3 million for the three months ended September 30, 2015 and 2014, respectively, and $48.3 million and $49.6 million for the nine months ended September 30, 2015 and 2014, respectively. The estimated aggregate future amortization expense for the intangible assets for each of the next five years is as follows: 2015 (for the remaining three months) - $15.8 million; 2016 - $63.0 million; 2017 - $63.1 million; 2018 - $63.3 million; and 2019 - $63.1 million.

Goodwill and Intangibles Impairment Testing

We performed our annual impairment testing of Jefferies goodwill as of August 1, 2015. The quantitative goodwill impairment test is performed at our reporting unit level and consists of two steps. In the first step, the fair value of each reporting unit is compared with its carrying value, including goodwill and allocated intangible assets. If the fair value is in excess of the carrying value, the goodwill for the reporting unit is considered not to be impaired. If the fair value is less than the carrying value then a second step is performed in order to measure the amount of the impairment loss, if any, which is based on comparing the implied fair value of the reporting unit's goodwill to the carrying value. Our annual impairment test did not indicate an impairment of Jefferies goodwill.

We also performed our annual impairment testing of Jefferies intangible assets with an indefinite useful life, which consists of exchange and clearing organization membership interests and registrations, at August 1, 2015. We elected to perform a quantitative assessment of membership interests and registrations that have available quoted sales prices as well as all other membership interests and registrations related to the Bache business. A qualitative assessment was performed on the remainder of Jefferies indefinite-life intangible assets. In applying the quantitative assessment, we recognized an impairment loss of $1.3 million on certain exchange memberships based on a decline in fair value at August 1, 2015. With regard to the qualitative assessment of the remaining indefinite-life intangible assets, based on our assessment of market conditions, the utilization of the assets and replacement costs associated with the assets, we have concluded that it is not more likely than not that the intangible assets are impaired.

- 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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