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Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

9.

GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at June 30, 2018 and December 31, 2017 are presented below:

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Goodwill

 

$

377,264

 

 

$

385,292

 

Other intangible assets (net of accumulated amortization)

 

 

5,096

 

 

 

6,072

 

 

 

$

382,360

 

 

$

391,364

 

 

At June 30, 2018 and December 31, 2017, goodwill of $312,723 and $320,751, respectively, was attributable to the Company’s Financial Advisory segment and, at each such respective date, $64,541 of goodwill was attributable to the Company’s Asset Management segment.

Changes in the carrying amount of goodwill for the six month periods ended June 30, 2018 and 2017 are as follows:

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2018

 

 

2017

 

Balance, January 1

 

$

385,292

 

 

$

373,117

 

Foreign currency translation adjustments

 

 

(8,028

)

 

 

8,785

 

Balance, June 30

 

$

377,264

 

 

$

381,902

 

 

All changes in the carrying amount of goodwill for the six month periods ended June 30, 2018 and 2017 are attributable to the Company’s Financial Advisory segment.

The gross cost and accumulated amortization of other intangible assets as of June 30, 2018 and December 31, 2017, by major intangible asset category, are as follows:

 

 

 

June 30, 2018

 

 

December 31, 2017

 

 

 

Gross

Cost

 

 

Accumulated

Amortization

 

 

Net

Carrying

Amount

 

 

Gross

Cost

 

 

Accumulated

Amortization

 

 

Net

Carrying

Amount

 

Success/incentive fees

 

$

35,295

 

 

$

31,136

 

 

$

4,159

 

 

$

35,422

 

 

$

29,723

 

 

$

5,699

 

Management fees, customer relationships

   and non-compete agreements

 

 

34,482

 

 

 

33,545

 

 

 

937

 

 

 

33,749

 

 

 

33,376

 

 

 

373

 

 

 

$

69,777

 

 

$

64,681

 

 

$

5,096

 

 

$

69,171

 

 

$

63,099

 

 

$

6,072

 

 

Amortization expense of intangible assets, included in “amortization and other acquisition-related (benefits) costs” in the condensed consolidated statements of operations, for the three month and six month periods ended June 30, 2018 was $863 and $1,696, respectively, and for the three month and six month periods ended June 30, 2017 was $822 and $1,651, respectively. Estimated future amortization expense is as follows:

 

Year Ending December 31,

 

Amortization

Expense (a)

 

2018 (July 1 through December 31)

 

$

1,335

 

2019

 

 

1,723

 

2020

 

 

1,701

 

2021

 

 

150

 

2022

 

 

150

 

2023

 

 

37

 

Total amortization expense

 

$

5,096

 

 

 

(a)

Approximately 35% of intangible asset amortization is attributable to a noncontrolling interest.