Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows an analysis of goodwill and other intangible assets:




	Goodwill and other intangible assets
	Goodwill			Other intangible assets			Total
Balance as of December 31, 2015
Gross amount	$	199,889		$	96,599		$	296,488
Accumulated impairment losses and amortization	(2,299		)	(29,035		)	(31,334		)
	197,590			67,564			265,154
Amortization	—			(13,968		)	(13,968		)
Balance as of December 31, 2016
Gross amount	199,889			96,599			296,488
Accumulated impairment losses and amortization	(2,299		)	(43,003		)	(45,302		)
	197,590			53,596			251,186
Amortization	—			(8,041		)	(8,041		)
Balance as of December 31, 2017
Gross amount	199,889			96,599			296,488
Accumulated impairment losses and amortization	(2,299		)	(51,044		)	(53,343		)
	$	197,590		$	45,555		$	243,145

During the first quarter of 2015, the Company recognized goodwill of $191.7 million primarily attributable to Platinum’s assembled workforce and synergies expected to result upon integration of Platinum into the Company’s operations. Also during 2015, the Company recognized identifiable finite lived intangible assets of $75.2 million and identifiable indefinite lived intangible assets of $8.4 million in connection with its acquisition of Platinum. See “Note 3. Acquisition of Platinum” for additional information related to the Company’s acquisition of Platinum and other intangible assets acquired.

The following table shows an analysis of goodwill and other intangible assets included in investments in other ventures, under equity method:




	Goodwill and other intangible assets included in investments in other ventures, under equity method
	Goodwill			Other intangible assets			Total
Balance as of December 31, 2015
Gross amount	$	12,318		$	51,796		$	64,114
Accumulated impairment losses and amortization	(4,500		)	(36,460		)	(40,960		)
	7,818			15,336			23,154
Amortization	—			(3,474		)	(3,474		)
Balance as of December 31, 2016
Gross amount	12,318			51,796			64,114
Accumulated impairment losses and amortization	(4,500		)	(39,934		)	(44,434		)
	7,818			11,862			19,680
Amortization	—			(2,946		)	(2,946		)
Balance as of December 31, 2017
Gross amount	12,318			51,796			64,114
Accumulated impairment losses and amortization	(4,500		)	(42,880		)	(47,380		)
	$	7,818		$	8,916		$	16,734

In accordance with the Company’s established accounting policy, the beginning of the fourth quarter was used as the date for performing the annual impairment test. The Company first assessed qualitative factors to determine whether it was necessary to perform a quantitative impairment test. Based on its qualitative assessment, the Company determined it was not more likely than not that the fair value of the goodwill and other intangible assets in question were less than their respective carrying amounts. The qualitative assessment included the following factors which the Company determined had significantly deteriorated given specific facts and circumstances: macroeconomic conditions; industry and market conditions; costs factors; and overall financial performance. In light of the qualitative assessment, the Company performed a quantitative analysis using a discounted cash flow model and concluded that the full amount of the goodwill and other intangible assets associated with this equity method investment were impaired. Other than normal course amortization of intangible assets, in accordance with the Company’s established accounting policy, there were no adjustments to carried goodwill and other intangible assets during the year ended December 31, 2017.

The gross carrying value and accumulated amortization by major category of other intangible assets is shown below:




	Other intangible assets
At December 31, 2017	Gross carrying value		Accumulated amortization and impairment losses			Total
Customer relationships and customer lists	$	95,458	$	(51,633	)	$	43,825
Value of business acquired	20,200		(20,200		)	—
Software	12,230		(12,230		)	—
Licenses	10,267		—			10,267
Patents and intellectual property	4,500		(4,500		)	—
Covenants not-to-compete	4,030		(4,030		)	—
Trademarks and trade names	1,710		(1,331		)	379
	$	148,395	$	(93,924	)	$	54,471




	Other intangible assets
At December 31, 2016	Gross carrying value		Accumulated amortization and impairment losses			Total
Customer relationships and customer lists	$	95,458	$	(42,142	)	$	53,316
Value of business acquired	20,200		(19,527		)	673
Software	12,230		(11,938		)	292
Licenses	10,267		—			10,267
Patents and intellectual property	4,500		(4,500		)	—
Covenants not-to-compete	4,030		(3,523		)	507
Trademarks and trade names	1,710		(1,307		)	403
	$	148,395	$	(82,937	)	$	65,458

The remaining useful life of intangible assets with finite lives ranges from one to 16 years, with a weighted-average amortization period of 7.9 years. Expected amortization of the other intangible assets, including other intangible assets recorded in investments in other ventures, under equity method, is shown below:




	Other intangibles		Other intangible assets included in investments in other ventures, under equity method		Total
2018	$	5,727	$	2,596	$	8,323
2019	5,446		2,427		7,873
2020	5,237		1,564		6,801
2021	4,910		702		5,612
2022	4,522		702		5,224
2023 and thereafter	9,446		925		10,371
Total remaining amortization expense	35,288		8,916		44,204
Indefinite lived	10,267		—		10,267
Total	$	45,555	$	8,916	$	54,471

- 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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