Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

. Goodwill and Intangible Assets

As of December 31, goodwill was as follows:



Goodwill	Global Integrated Agencies			Domestic Creative Agencies		Specialist Communications			Media Services			All Other			Total
Balance at December 31, 2015	$	364,159		$	36,671	$	97,578		$	142,286		$	229,607		$	870,301
Acquired goodwill	24,778			—		—			—			—			24,778
Disposition	—			—		—			—			(764		)	(764		)
Impairment loss recognized	—			—		(18,893		)	—			(29,631		)	(48,524		)
Transfer of goodwill between segments ⁽¹⁾	(34,400		)	—		—			34,400			—			—
Foreign currency translation	(3,821		)	91		6			—			2,692			(1,032		)
Balance at December 31, 2016	$	350,716		$	36,762	$	78,691		$	176,686		$	201,904		$	844,759
Acquired goodwill	—			—		—			—			—			—
Disposition	(964		)	—		—			(16,629		)	—			(17,593		)
Impairment loss recognized	—			—		—			—			(3,238		)	(3,238		)
Transfer of goodwill between segments ⁽¹⁾	3,630			—		—			—			(3,630		)	—
Foreign currency translation	5,689			218		15			—			6,085			12,007
Balance at December 31, 2017	$	359,071		$	36,980	$	78,706		$	160,057		$	201,121		$	835,935

⁽¹⁾During the year ended December 31, 2017 and 2016, the Company transferred a component of one reporting unit to another reporting unit. An interim impairment analysis was performed both before and after the transfer, noting no impairment indicators were present.

As a result of the annual impairment test performed as of October 1, 2017, the Company recognized a partial impairment of goodwill of $3,238 relating to two of the Company’s reporting units. See Note 2 of the Notes to the Consolidated Financial Statements herein for further information. Additionally, during 2017, the Company wrote off goodwill of $17,593 related to the sale of certain subsidiaries. This write off is included in other income (expense).

During the third quarter of 2016, there was a change to the Company’s reporting units. This change, coupled with a decline in operating performance required the Company to perform interim goodwill testing on one of its experiential reporting units. Additionally, a triggering event occurred during the third quarter of 2016 that required the Company to perform interim goodwill testing on one non-material reporting unit. This interim impairment analysis resulted in a partial impairment of goodwill of $27,893 and $1,738 relating to the experiential reporting unit and non-material reporting unit, respectively.

For the 2016 annual impairment test, a partial impairment of goodwill of $18,893 in one of the Company’s strategic communications reporting units. The fair value for all other reporting units were in excess of their respective carrying amounts and as a result there was no additional impairment of goodwill. Additionally, in the third quarter of 2016, the Company sold its ownership interests in a subsidiary to the noncontrolling shareholders, resulting in a write off of goodwill of $764.

The total accumulated goodwill impairment charges are $98,645 through December 31, 2017.

As of December 31, the gross and net amounts of acquired intangible assets other than goodwill were as follows:



	For the Year Ended December 31,
Intangible Assets	2017			2016
Trademarks (indefinite life)	$	17,780		$	17,780
Customer relationships – gross	$	102,325		$	121,408
Less accumulated amortization	(73,767		)	(80,432		)
Customer relationships – net	$	28,558		$	40,976
Other intangibles – gross	$	37,273		$	43,656
Less accumulated amortization	(13,006		)	(17,341		)
Other intangibles – net	$	24,267		$	26,315
Total intangible assets	$	157,378		$	182,844
Less accumulated amortization	(86,773		)	(97,773		)
Total intangible assets – net	$	70,605		$	85,071

The weighted average amortization periods for customer relationships are six years and other intangible assets are nine years. In total, the weighted average amortization period is seven years. Amortization expense related to amortizable intangible assets for the years ended December 31, 2017, 2016, and 2015 was $17,125, $21,726, and $30,024, respectively.

The estimated amortization expense for the five succeeding years is as follows:



Year	Amortization
2018	$	13,051
2019	8,832
2020	6,619
2021	5,038
2022	4,520

- 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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