Acquisition and Transition Costs and Special Charges

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisition and Transition Costs and Special Charges [Text Block]

Acquisition and Transition Costs and Special Charges

Acquisition and Transition Costs

The Company recognized $1,013, $21 and $1,673 for the years ended December 31, 2019, 2018 and 2017, respectively, as Acquisition and Transition Costs incurred in connection with acquisitions, divestitures, and other ongoing business development initiatives. These costs are primarily comprised of professional fees for legal and other services.

Special Charges

The Company recognized $10,141 for the year ended December 31, 2019, as Special Charges incurred related to a charge of $2,921 associated with the impairment of goodwill in the Company's Institutional Asset Management reporting unit, expenses of $4,370 related to the acceleration of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations of $2,850.

In the first quarter of 2020, the Company completed a review of its operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth. This review, which began in the fourth quarter of 2019, will generate reductions of approximately 6% of the Company's headcount. In conjunction with the employment reductions, the Company is expected to incur costs (including costs related to the acceleration of deferred compensation) of approximately $38,000, $2,850 of which has been recorded in Special Charges in 2019. The Company's estimates are based on a number of assumptions. Actual results may differ materially and additional charges not currently expected may be incurred in connection with, or as a result of, these employment reductions.

The Company recognized $5,012 for the year ended December 31, 2018, as Special Charges incurred related to separation benefits and costs for the termination of certain contracts associated with closing the Company's agency trading platform in the U.K. and separation benefits and related charges associated with the Company's businesses in Mexico, as well as the acceleration

of depreciation expense for leasehold improvements in conjunction with the expansion of the Company's headquarters in New York.

The Company recognized $25,437 for the year ended December 31, 2017, as Special Charges incurred related to a charge of $7,107 associated with the impairment of goodwill in the Company's Institutional Asset Management reporting unit, a charge of $14,400 associated with the impairment of the Company's former equity method investment in G5, and expenses of $3,930 associated with the transition of certain employees in conjunction with the sale of the Institutional Trust and Independent Fiduciary business of ETC. See Notes 5 and 11 for further information.