Goodwill And Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets [Abstract]

6.GOODWILL AND INTANGIBLE ASSETS

The Company had $8.1 million in goodwill at each of December 31, 2017 and 2016. The entire amount of goodwill is within the insurance agency activities segment. The Company measures the fair value of the insurance agency reporting unit annually, as of December 31, utilizing market value EBITDA multiples based on industry data and cash flow modeling. When modeling future cash flows, management considered historical information, the operating budget, and strategic goals in projecting net income and cash flows for the next five years. No impairment was recognized as a result of the goodwill impairment test as of December 31, 2017 and 2016, respectively. Further discussion of the Company’s goodwill impairment testing is included in Note 1.

TEA purchased the assets of A.M. Smith Group, Inc., a local insurance agency in Lockport, NY, on December 31, 2016 and Mietus Agency in Derby, N.Y on January 1, 2017. Intangible assets related to those acquisitions are reflected in the table below:



2017	Gross Carrying Amount		Accumulated Amortization		Net		Weighted Avg Amortization Period
	(in thousands)

Insurance expirations	$	565	$	(113)	$	452	4 years



2016	Gross Carrying Amount		Accumulated Amortization		Net		Weighted Avg Amortization Period
	(in thousands)

Insurance expirations	$	305	$	-	$	305	5 years

Amortization expense related to intangibles for the years ended December 31, 2017, 2016, and 2015 was $113 thousand, $0, and $0, respectively. Estimated amortization expense for each of the four succeeding fiscal years is as follows:



Year Ending December 31	Amount
	(in thousands)
2018	$	113
2019		113
2020		113
2021		113
	$	452

- 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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