Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 and 2016 are as follows:



	September 30,
	2017			2016
Balance at beginning of period	$	14,254		$	3,413
Acquisitions	46,109			10,841
Adjustments to finalize purchase price allocation	(684		)	—
Impairment	—			—
Balance at end of period	$	59,679		$	14,254

Using a qualitative assessment, we completed our most recent goodwill impairment testing during the fourth quarter of 2016 and determined that there was no impairment in the value of the asset as of December 31, 2016.

No impairment loss in the value of goodwill or goodwill amortization expense was recognized during the nine months ended September 30, 2017. Additionally, there was no accumulated impairment or accumulated amortization related to goodwill at September 30, 2017 or December 31, 2016.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as other assets at September 30, 2017 and December 31, 2016:



	September 30, 2017		December 31, 2016
Intangible assets subject to amortization	$	51,554	$	9,064
Indefinite-lived intangible assets⁽¹⁾	3,555		3,307
Total	$	55,109	$	12,371

⁽¹⁾Indefinite-lived intangible assets are comprised of state insurance and agent licenses, as well as perpetual software licenses.

Intangible assets subject to amortization consisted of the following:



	Weighted-average remaining amortization period (in years)	Gross carrying amount		Accumulated amortization			Net carrying amount
September 30, 2017
Value of Business Acquired	0.5	$	42,788	$	(25,882	)	$	16,906
Agency agreements acquired	8.2	34,661		(5,546		)	29,115
Trade names acquired	6.2	6,381		(848		)	5,533
Total		$	83,830	$	(32,276	)	$	51,554

December 31, 2016
Value of Business Acquired	0.3	$	8,975	$	(7,867	)	$	1,108
Agency agreements acquired	3.8	10,284		(2,784		)	7,500
Trade names acquired	2.1	720		(264		)	456
Total		$	19,979	$	(10,915	)	$	9,064

No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three and nine months ended September 30, 2017 and September 30, 2016.

Amortization expense of our intangible assets was $9,839,000 and $21,361,000 for the three and nine months ended September 30, 2017, respectively. Amortization expense of our intangible assets was $3,439,000 and $6,791,000 for the three and nine months ended September 30, 2016, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company over the next five years is as follows:



Year ending December 31,	Estimated Amortization Expense
Remaining 2017	$	11,818
2018	13,920
2019	5,355
2020	4,267
2021	3,555
2022	3,246

- 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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