Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Goodwill

The following table summarizes the Company’s Goodwill by segment (in thousands):

	September 30, 2013		December 31, 2012
Market Making	$	15,159	$	4,645
Global Execution Services	3,239		—
Total	$	18,398	$	4,645

Finite-Lived Intangible Assets, Net of Accumulated Amortization

The following tables summarize the Company’s Intangible assets, net of accumulated amortization by segment and type (in thousands):

	September 30, 2013		December 31, 2012
Market Making
Trading rights	$	47,065	$	42,635
Technology	52,791		3,488
Total	99,856		46,123
Global Execution Services
Customer relationships	34,139		—
Trade names	3,900		—
Technology	39,900		—
Total	77,939		—
Corporate and Other
Technology	14,250
Consolidated Total	$	192,045	$	46,123

		September 30, 2013			December 31, 2012
Customer relationships(1)	Gross carrying amount	$	35,000		$	—
	Accumulated amortization	(861		)	—
	Net carrying amount	34,139			—
Trading rights(2)	Gross carrying amount	59,628			51,828
	Accumulated amortization	(12,563		)	(9,193		)
	Net carrying amount	47,065			42,635
Trade names(3)	Gross carrying amount	4,000			—
	Accumulated amortization	(100		)	—
	Net carrying amount	3,900			—
Technology(4)	Gross carrying amount	115,580			5,580
	Accumulated amortization	(8,639		)	(2,092		)
	Net carrying amount	106,941			3,488
Total	Gross carrying amount	214,208			57,408
	Accumulated amortization	(22,163		)	(11,285		)
	Net carrying amount	$	192,045		$	46,123

________________________________________ 

⁽¹⁾  Customer relationships relate to KCG Hotspot and KCG BondPoint. The weighted average remaining life is approximately 10 years as of September 30, 2013. Lives may be reduced depending upon actual retention rates.

⁽²⁾  Trading rights provide the Company with the rights to trade on certain exchanges. The weighted average remaining life is approximately 9 and 10 years as of September 30, 2013 and December 31, 2012, respectively.

⁽³⁾  Trade names relate to KCG Hotspot and KCG BondPoint. The weighted average remaining life is approximately 10 years as of September 30, 2013.

⁽⁴⁾  The weighted average remaining life is approximately five and three years as of September 30, 2013 and December 31, 2012, respectively.

Summary of Amortization Expense Relating to Intangible Assets

The following table summarizes the Company’s amortization expense from continuing operations relating to Intangible assets (in thousands):

	For the three months   ended September 30,				For the nine months   ended September 30,
	2013		2012		2013		2012
Amortization expense	$	8,119	$	1,380	$	10,878	$	4,139

Summary of Estimated Amortization Expense for Future Years

As of September 30, 2013, the following table summarizes the Company’s estimated amortization expense for future periods (in thousands):

	Amortization     expense
For the three months ending December 31, 2013	$	8,119
For the year ended December 31, 2014	32,477
For the year ended December 31, 2015	31,780
For the year ended December 31, 2016	31,082
For the year ended December 31, 2017	31,082