Annual report pursuant to Section 13 and 15(d)

Goodwill

v3.19.1
Goodwill
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Asset Impairment [Abstract]  
Goodwill
Goodwill

Changes to the carrying amount of goodwill during the years ended December 31, 2018 and 2017 are as follows:
 
 
Ladenburg
 
Independent Advisory and Brokerage Services
 
Insurance Brokerage
 
Total
Balance as of December 31, 2016
 
$
301

 
$
111,031

 
$
12,699

 
$
124,031

Correction related to Foothill acquisition purchase price allocation (1)
 
—

 
179

 
—

 
179

Balance as of December 31, 2017
 
$
301

 
$
111,210

 
$
12,699

 
$
124,210

Benefit applied to reduce goodwill
 
—

 
(541
)
 
—

 
(541
)
Business acquisitions
 
—

 
246

 
2,164

 
2,410

Balance as of December 31, 2018
 
$
301

 
$
110,915

 
$
14,863

 
$
126,079



(1) During 2017, Securities America corrected the allocation of purchase price related to the Foothill acquisition, which resulted in an increase in goodwill and related increase in contingent deferred liability.

The annual impairment tests performed at December 31, 2018 and 2017, based on quantitative assessments, did not indicate that the carrying value of goodwill had been impaired. However, changes in circumstances or business conditions could result in an impairment of goodwill. For 2018, the carrying amount of goodwill was reduced by $541 representing federal tax benefit realized for the excess of tax deductible goodwill over goodwill recognized for reporting purposes with respect to the Company’s subsidiaries.