Goodwill And Intangible Assets

3 Months Ended

Mar. 31, 2012

Goodwill And Intangible Assets [Abstract]

NOTE 9 – Goodwill and Intangible Assets

Goodwill impairment is tested at the reporting unit level, which is an operating segment or one level below an operating segment on an annual basis. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment. Our annual goodwill impairment testing was completed as of July 31, 2011, with no impairment identified.

The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):

December 31, 2011

Net additions

Impairment losses

March 31, 2012

Goodwill

Global Wealth Management

143,828

—

143,828

Institutional Group

215,160

—

215,160

358,988

—

358,988


	December 31, 2011		Net additions		Amortization			March 31, 2012
Intangible assets
Global Wealth Management	$	18,819	$	—	$	(625	)	$	18,194
Institutional Group		15,044		—		(704	)		14,340
	$	33,863	$	—	$	(1,329	)	$	32,534

Amortizable intangible assets consist of acquired customer relationships, trade name, non-compete agreements, and investment banking backlog that are amortized over their contractual or determined useful lives. Intangible assets subject to amortization as of March 31, 2012 and December 31, 2011 were as follows (in thousands):



	March 31, 2012				December 31, 2011
	Gross carrying value		Accumulated amortization		Gross carrying value		Accumulated amortization

Customer relationships	$	40,166	$	15,843	$	40,166	$	14,827
Trade name		9,442		1,264		9,442		1,011
Investment banking backlog		2,250		2,217		2,250		2,157
	$	51,858	$	19,324	$	51,858	$	17,995

Amortization expense related to intangible assets was $1.3 million and $1.1 million for the three months ended March 31, 2012 and 2011, respectively.

The weighted-average remaining lives of the following intangible assets at March 31, 2012 are: customer relationships, 6.9 years; and trade name, 8.1 years. The investment banking backlog will be amortized over their estimated lives, which we expect to be within the next 12 months. As of March 31, 2012, we expect amortization expense in future periods to be as follows (in thousands):


Fiscal year
Remainder of 2012	$	3,597
2013		4,309
2014		3,856
2015		3,129
2016		2,829
Thereafter		14,814
	$	32,534

- 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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