Business Changes and Developments

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Business Changes and Developments

Business Changes and Developments

Pan and Discontinued Operations - In 2008, the Company made an equity method investment of $4,158 in Pan. This investment resulted in earnings (losses) of ($55), $90 and ($420)for the years ended December 31, 2013, 2012 and 2011, respectively, included within Income from Equity Method Investments on the Consolidated Statements of Operations.

In 2011 and 2012, the Company concluded that Pan was a VIE, and that the Company was not the primary beneficiary of the VIE. On March 15, 2013, the Company exchanged its notes receivable from Pan for additional common equity, increasing its common equity ownership interest to 68%, from 50%. The Company viewed this transaction as a reconsideration event and concluded that it had become the primary beneficiary of Pan, and therefore consolidated Pan in the Company's consolidated financial statements as of that date. The Company determined that it was the primary beneficiary of Pan because it possessed the power to significantly impact the economic performance of Pan and maintained the obligation to absorb losses of Pan, which could be potentially significant, or the right to receive benefits from Pan, that could be potentially significant. The assets retained by Pan are not generally available to the Company and the liabilities are generally non-recourse to the Company. The consolidation also resulted in goodwill of $3,020 and intangible assets relating to client relationships of $1,440, recognized in the Investment Management Segment. The intangible assets were being amortized over an estimated useful life of seven years.

During the third quarter of 2013, as part of an ongoing strategic initiative, the Company determined that Pan met the initial criteria to be classified as Held for Sale, which resulted in the Company reporting separately the assets and liabilities of Pan on the Consolidated Statement of Financial Condition. The Company further determined that Pan met the criteria to be classified within Discontinued Operations. The sale transaction closed on December 3, 2013. Based on the estimated fair value of Pan, the Company recorded a pretax loss of ($2,718) within Income (Loss) from Discontinued Operations on the Company’s Consolidated Statement of Operations for the year ended December 31, 2013. Further, discontinued operations includes revenues and pretax gains (losses) from Pan of $989 and ($1,542), respectively, for the year ended December 31, 2013.

Private Capital Advisory - During 2013, the Company expanded its global investment banking platform by establishing a private capital advisory business, focused on secondary transactions for private funds interests. In conjunction with the expansion, the Company formed Evercore Private Capital Advisory L.P. ("PCA"). The Company owns 80% of the common equity interest in PCA, with the remaining 20% owned by employees engaged in PCA's business. The Company is the general partner of PCA. The Company performed an assessment under ASC 810, and concluded that PCA is a VIE and determined that the Company is the primary beneficiary of this VIE. Specifically, the Company's general partner interest provides the Company with the ability to make decisions that significantly impact the economic performance of PCA, while the limited partners do not possess substantive participating rights over PCA. The Company's assessment of the primary beneficiary included assessing which parties have the power to significantly impact the economic performance and the obligation to absorb losses, which could be potentially significant to the entity, or the right to receive benefits from the entity that could be potentially significant. The assets of PCA are not generally available to the Company and the liabilities are generally non-recourse to the Company.

Mt. Eden Investment Advisors, LLC - In October 2012, the Company, through Evercore Wealth Management ("EWM"), entered into an agreement to acquire Mt. Eden Investment Advisors, LLC ("Mt. Eden"), a San Francisco-based registered investment advisor. The terms of the acquisition include $6,917 of cash and $2,694 of EWM equity paid to the sellers at closing, as well as contingent consideration of $282 subject to the retention of client relationships which was paid during 2013. The transaction was consummated on December 28, 2012. The transaction resulted in goodwill of $6,414 and intangible assets relating to client relationships, non-compete agreements and other intangibles of $3,630, $169 and $445, respectively, recognized in the Investment Management Segment. The intangible assets are being amortized over estimated useful lives ranging from two to 10 years. The Company recognized $455 of amortization expense related to these intangible assets for the year ended December 31, 2013. In addition, upon closing the Company funded the repayment of $1,047 of outstanding Mt. Eden debt.

Goodwill and Intangible Assets

Goodwill associated with the Company’s acquisitions is as follows:

	Investment Banking		Investment Management			Total
Balance at December 31, 2011	$	81,937	$	95,912		$	177,849
Acquisitions	—		6,500			6,500
Foreign Currency Translation and Other	4,415		(80		)	4,335
Balance at December 31, 2012	86,352		102,332			188,684
Foreign Currency Translation and Other	676		(86		)	590
Balance at December 31, 2013 (1)	$	87,028	$	102,246		$	189,274

(1) The balance includes the net effect of the goodwill related to the consolidation and disposition of Pan.

Intangible assets associated with the Company’s acquisitions are as follows:

	December 31, 2013
	Gross Carrying Amount						Accumulated Amortization
	Investment Banking		Investment Management		Total		Investment Banking		Investment Management		Total
Client Related	$	2,300	$	45,830	$	48,130	$	1,299	$	22,559	$	23,858
Acquired Mandates	1,810		—		1,810		1,786		—		1,786
Non-compete/Non-solicit Agreements	135		1,949		2,084		94		1,314		1,408
Other	—		2,245		2,245		—		486		486
Total	$	4,245	$	50,024	$	54,269	$	3,179	$	24,359	$	27,538
	December 31, 2012
	Gross Carrying Amount						Accumulated Amortization
	Investment Banking		Investment Management		Total		Investment Banking		Investment Management		Total
Client Related	$	2,300	$	46,960	$	49,260	$	969	$	16,412	$	17,381
Acquired Mandates	1,810		—		1,810		1,324		—		1,324
Non-compete/Non-solicit Agreements	135		1,949		2,084		67		920		987
Other	—		2,245		2,245		—		310		310
Total	$	4,245	$	51,154	$	55,399	$	2,360	$	17,642	$	20,002

Expense associated with the amortization of intangible assets was $7,994, $10,872 and $14,315for the years ended December 31, 2013, 2012 and 2011, respectively.

Based on the intangible assets above, as of December 31, 2013, annual amortization of intangibles for each of the next five years is as follows:

2014	$	5,526
2015	$	3,864
2016	$	3,510
2017	$	3,120
2018	$	3,034

The Company recorded impairment charges of $2,888 for Goodwill and Intangible Assets during the year ended December 31, 2013. During December 2013, the founder and key member of management of Morse, Williams and Company, Inc. left the Company pursuant to a separation agreement, which among other provisions, allowed him to solicit a limited number of former clients without violating his post-employment restrictive covenant agreements. As a result, the Company experienced an outflow of client assets, and the Company performed a Step 1 impairment assessment under ASC 360 for the identifiable intangible assets that the Company recorded related to Client Relationships from the acquisition of Morse, Williams and Company, Inc., which were recognized in the Investment Management segment. The Company determined that the recoverability of the intangible assets would not be achieved and recorded an impairment charge of $170 within Special Charges on the Company's Consolidated Statement of Operations for the year ended December 31, 2013. Further, during 2013, the Company sold its interest in Pan, resulting in an impairment charge related to goodwill of $2,718 within Income (Loss) from Discontinued Operations on the Company’s Consolidated Statement of Operations for the year ended December 31, 2013. See "Pan and Discontinued Operations" above for further information. The Company concluded that there was no impairment of Goodwill or Intangible Assets related to its other reporting units during the year ended December 31, 2013.