Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 9. Goodwill and Other Intangible Assets

During 2019, the Company acquired USAA AMCO and recorded $120.6 million in goodwill related to this acquisition in the Consolidated Balance Sheets. The goodwill arising from the USAA AMCO Acquisition primarily results from expected future earnings and cash flows, as well as the expected synergies created by the integration of the USAA Acquired Companies within our organization. The following table presents changes in the goodwill balance from December 31, 2018 to December 31, 2019:

 

 

 

As of December 31,

 

(in thousands)

 

2019

 

 

2018

 

Balance, beginning of period

 

$

 

284,108

 

 

$

 

284,108

 

Goodwill recorded in acquisition

 

 

 

120,642

 

 

 

 

—

 

Balance, end of period

 

$

 

404,750

 

 

$

 

284,108

 

 

There were no impairments to goodwill recognized during the years ended December 31, 2019, 2018 or 2017.

Identifiable Intangible Assets

During 2019, and as part of the USAA AMCO Acquisition, the Company recorded indefinite-lived and definite-lived intangible assets of $770.1 million and $38.6 million, respectively, primarily related to investment advisory and administration service contracts and tradenames.

The following table presents a summary of definite‑lived intangible assets by type:

 

 

 

 

 

 

 

 

Fund

 

 

 

 

 

Intellectual

 

 

 

 

 

 

 

 

Customer

 

 

Advisory

 

 

Trade

 

 

Property/

 

 

 

 

 

 

(in thousands)

 

Relationships

 

 

Contracts

 

 

Names

 

 

Other

 

 

Totals

 

Gross book value - December 31, 2018

 

$

 

123,200

 

 

$

 

2,368

 

 

$

 

1,132

 

 

$

 

7,177

 

 

$

 

133,877

 

Accumulated amortization

 

 

 

(103,207

)

 

 

 

(2,368

)

 

 

 

(283

)

 

 

 

(6,940

)

 

 

 

(112,798

)

Net book value - December 31, 2018

 

$

 

19,993

 

 

$

 

—

 

 

$

 

849

 

 

$

 

237

 

 

$

 

21,079

 

Weighted average useful life (yrs)

 

 

 

0.8

 

 

 

 

—

 

 

 

 

1.5

 

 

 

 

0.2

 

 

 

 

0.8

 

Gross book value - December 31, 2019

 

$

 

123,200

 

 

$

 

2,368

 

 

$

 

39,332

 

 

$

 

7,547

 

 

$

 

172,447

 

Accumulated amortization

 

 

 

(118,577

)

 

 

 

(2,368

)

 

 

 

(5,607

)

 

 

 

(7,124

)

 

 

 

(133,676

)

Net book value - December 31, 2019

 

$

 

4,623

 

 

$

 

—

 

 

$

 

33,725

 

 

$

 

423

 

 

$

 

38,771

 

Weighted average useful life (yrs)

 

 

 

0.2

 

 

 

 

—

 

 

 

 

3.1

 

 

 

 

0.1

 

 

 

 

3.4

 

 

Amortization expense for definite‑lived intangible assets for the years ended December 31, 2019, 2018 and 2017, was $20.9 million, $20.3 million and $26.3 million, respectively, and is recorded in depreciation and amortization within the Consolidated Statements of Operations. There were no impairments to definite-lived intangible assets recognized in 2019, 2018 or 2017.

The following table presents estimated amortization expense for definite‑lived intangible assets for each of the five succeeding years and thereafter:

 

2020

 

$

 

12,830

 

2021

 

 

 

11,271

 

2022

 

 

 

9,568

 

2023

 

 

 

4,855

 

2024

 

 

 

143

 

Thereafter

 

 

 

104

 

Total

 

$

 

38,771

 

 

The following table presents a summary of indefinite‑lived intangible assets by type:

 

 

 

Fund

Advisory,

Transfer

 

 

 

 

 

 

 

 

 

 

 

Agent and

Distribution

 

 

Trade

 

 

 

 

 

 

(in thousands)

 

Contracts

 

 

Names

 

 

Totals

 

December 31, 2017 balance

 

$

 

342,900

 

 

$

 

24,832

 

 

$

 

367,732

 

Additions or transfers

 

 

 

—

 

 

 

 

(1,132

)

 

 

 

(1,132

)

December 31, 2018 balance

 

$

 

342,900

 

 

$

 

23,700

 

 

$

 

366,600

 

Additions or transfers

 

 

 

770,100

 

 

 

 

—

 

 

 

 

770,100

 

December 31, 2019 balance

 

$

 

1,113,000

 

 

$

 

23,700

 

 

$

 

1,136,700

 

 

There were no impairments to indefinite-lived intangible assets recognized in 2019, 2018 or 2017.