Business Changes and Developments

12 Months Ended

Dec. 31, 2022

Business Developments

Sale of ECB Business and Wind-down of Mexico Advisory – During 2020, the Company completed the sale of its ECB businesses and the transition of its advisory presence in Mexico:

•On July 2, 2020, the Company completed the sale of the trust business of ECB (the "ECB Trust Business"), which was a part of its Investment Management segment, for a purchase price of MXN 39,500 ($1,830). As a result of this transaction, the Company deconsolidated assets of $475, representing an allocation of goodwill based on the relative fair value of the business being sold to the total fair value of the Institutional Asset Management reporting unit. This transaction resulted in a pre-tax gain of $1,355 included in Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

•On December 16, 2020, the Company completed the sale of its remaining ECB business for a purchase price of MXN 35,000 ($1,634). The ECB business was part of the Company’s Investment Management segment. As a result of this transaction, the Company deconsolidated assets of $32,487, comprised primarily of $24,742 of Financial Instruments Owned and Pledged as Collateral at Fair Value, $3,317 of Investment Securities and $2,785 of Cash and Cash Equivalents and Restricted Cash and deconsolidated liabilities of $26,519, comprised primarily of $24,764 of Securities Sold Under Agreements to Repurchase. This transaction resulted in a pre-tax loss of $4,796 included in Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020.

•In 2020, the Company completed the transition of its advisory presence in Mexico to a strategic alliance relationship with a newly-formed independent strategic advisory firm founded by certain former employees.

Following the above transactions, the Company concluded that the liquidation of its operations in Mexico was substantially complete. This determination resulted in the reclassification of $20,337 and $7,028 of cumulative foreign currency translation losses from Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest, respectively, on the Consolidated Statement of Financial Condition to Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 2020. In addition, the Company recorded $1,656 in Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations for the year ended December 31, 2020, for charges related to the impairment of assets resulting from the wind-down of the Company's businesses in Mexico. This was comprised of a charge of $1,176 related to the impairment of operating lease right-of-use assets and a charge of $480 related to the impairment of leasehold improvements.

Further, in conjunction with the ongoing wind-down of the administrative functions in Mexico, the Company incurred certain professional fees, separation benefits and other charges, which are recorded within Special Charges, Including Business Realignment Costs, on the Consolidated Statement of Operations for the year ended December 31, 2022. See Note 6 for further information.

Goodwill and Intangible Assets

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


	Investment Banking & Equities		Investment Management		Total
Balance at December 31, 2020(1)	$	121,599	$	7,527	$	129,126



Foreign Currency Translation and Other	(880)		—		(880)
Balance at December 31, 2021(1)	120,719		7,527		128,246


Foreign Currency Translation and Other	(4,961)		—		(4,961)
Balance at December 31, 2022(1)	$	115,758	$	7,527	$	123,285

(1)The amount of the Company's goodwill before accumulated impairment losses of $38,528 was $161,813, $166,774 and $167,654 at December 31, 2022, 2021 and 2020, respectively.

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












	December 31, 2021
	Gross Carrying Amount						Accumulated Amortization
	Investment Banking & Equities		Investment Management		Total		Investment Banking & Equities		Investment Management		Total

Client Related	$	—	$	3,630	$	3,630	$	—	$	3,294	$	3,294



Total	$	—	$	3,630	$	3,630	$	—	$	3,294	$	3,294

Expense associated with the amortization of intangible assets was $336, $362 and $1,605 for the years ended December 31, 2022, 2021 and 2020, respectively. The Company's intangible assets were fully amortized as of December 31, 2022.

Impairments of Goodwill

At November 30, 2022 and 2021, in accordance with ASC 350, "Intangibles - Goodwill and Other", the Company performed its annual goodwill impairment assessment and concluded that the fair value of its reporting units substantially exceeded their carrying values.