Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Intangible Assets and Goodwill

Federated’s identifiable intangible assets and goodwill consisted of the following at December 31:



	2013							2012
in thousands	Cost		Accumulated Amortization			Carrying Value		Cost		Accumulated Amortization			Carrying Value
Finite-lived intangible assets:
Customer relationships	$	43,966	$	(38,110	)	$	5,856	$	45,812	$	(37,914	)	$	7,898
Noncompete agreements	4,594		(4,343		)	251		7,094		(6,310		)	784
Total finite-lived intangible assets	48,560		(42,453		)	6,107		52,906		(44,224		)	8,682
Indefinite-lived intangible assets:
Renewable investment advisory contracts	68,595		N/A			68,595		68,455		N/A			68,455
Trade names	1,900		N/A			1,900		1,900		N/A			1,900
Total indefinite-lived intangible assets	70,495		N/A			70,495		70,355		N/A			70,355
Goodwill	658,743		N/A			658,743		648,820		N/A			648,820
Total identifiable intangible assets and goodwill	$	777,798	$	(42,453	)	$	735,345	$	772,081	$	(44,224	)	$	727,857

The decrease of $4.3 million in the cost of the total finite-lived intangible assets at December 31, 2013 as compared to December 31, 2012 relates to the write-off of fully amortized customer relationship intangible assets and noncompete agreements relating to prior year acquisitions.

Amortization expense for finite-lived intangible assets was $2.6 million, $3.4 million and $7.0 million in 2013, 2012 and 2011, respectively. This expense was included in Intangible asset related on the Consolidated Statements of Income for each period.

Following is a schedule of expected aggregate annual amortization expense for intangible assets in each of the five succeeding years assuming no new acquisitions or impairments:



in millions
2014	$	2.0
2015	$	1.4
2016	$	1.0
2017	$	0.6
2018	$	0.6

Goodwill at December 31, 2013 and 2012 was $658.7 million and $648.8 million, respectively. During 2013, Federated recorded goodwill primarily in connection with accruals related to contingent purchase price payments related to the 2008 acquisition of certain assets of Clover Capital Management, Inc., an investment manager that specializes in value investing (Clover Capital Acquisition). This acquisition was accounted for under the purchase method of accounting and therefore goodwill was recorded at the time the contingencies lapsed. See Note (18)(a) for additional information.

- 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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