Impairments

12 Months Ended

Dec. 31, 2019

Disclosure Text Block Supplement [Abstract]

Impairments

26. Impairments

The following table summarizes impairments recognized by the Company:

	Years Ended December 31,
	2019		2018		2017
AdvisorEngine—Financial interests (Note 8)	$	30,138	$	—	$	—
GCC—Intangible asset		—		9,953		—
AdvisorEngine—Option		—		3,278		—
Thesys—Series Y Preferred (Note 10)		—		3,829		—
WisdomTree Japan		572		326		—
Total	$	30,710	$	17,386	$	—

WisdomTree Continuous Commodity Index Fund (“GCC”)

During the fourth quarter of 2018, the Company performed its indefinite-lived intangible asset impairment test related to its GCC customary advisory agreements using a quantitative approach. The fair value of the intangible asset was derived from a discounted cash flow analysis which assumed projected revenue growth rates of 0% to 5%. Consideration was also given to the historical performance of GCC against prior expectations. The analysis resulted in the recognition of an impairment of $9,953. There is no value ascribed to this intangible asset at December 31, 2019.

AdvisorEngine—Option

During the year ended December 31, 2018, the Company recognized an impairment of $3,278 upon the expiration of an option to purchase the remaining equity interests in AdvisorEngine. The fair value of the option was originally determined on December 29, 2017 using a Monte Carlo simulation which was predominantly based on unobservable inputs and was therefore classified as Level 3. The enterprise value was derived from unobservable inputs including a WACC of 27% and an option volatility of 40%. An increase in the WACC would have reduced AdvisorEngine’s enterprise value, thereby reducing the fair value of the option, whereas an increase in the option volatility would have increased the fair value of the option.

WisdomTree Japan

The Company recorded an impairment expense of $572 in connection with the termination of its Japan office lease during the year ended December 31, 2019 and $326 on fixed assets of the Japan office during the year ended December 31, 2018 in connection with the closure of WTJ.