GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2025

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The Company’s reportable segments are Capital Markets (“CM”), Servicing & Asset Management (“SAM”), and Corporate. A summary of the Company’s goodwill by reportable segments as of and for the three months ended March 31, 2025 and 2024 follows:


	As of and for the three months ended
	March 31,
(in thousands)	2025						2024
Roll Forward of Gross Goodwill	CM		SAM		Consolidated⁽¹⁾		CM		SAM		Consolidated⁽¹⁾
Beginning balance	$	524,189		439,521	$	963,710	$	524,189	$	439,521	$	963,710
Additions from acquisitions		—		—		—		—		—		—
Ending gross goodwill balance	$	524,189	$	439,521	$	963,710	$	524,189	$	439,521	$	963,710

Roll Forward of Accumulated Goodwill Impairment
Beginning balance	$	95,000		—	$	95,000	$	62,000	$	—	$	62,000
Impairment		—		—		—		—		—		—
Ending accumulated goodwill impairment	$	95,000	$	—	$	95,000	$	62,000	$	—	$	62,000

Goodwill	$	429,189	$	439,521	$	868,710	$	462,189	$	439,521	$	901,710

(1)As of March 31, 2025 and 2024 and December 31, 2024 and 2023, no goodwill was allocated to the Corporate reportable segment.

Other Intangible Assets

Activity related to other intangible assets for the three months ended March 31, 2025 and 2024 follows:


	As and for the three months ended
	March 31,
Roll Forward of Other Intangible Assets (in thousands)	2025		2024
Beginning balance	$	156,893	$	181,975
Amortization		(3,754)		(3,754)
Ending balance	$	153,139	$	178,221

The following table summarizes the gross value, accumulated amortization, and net carrying value of the Company’s other intangible assets as of March 31, 2025 and December 31, 2024:


Components of Other Intangible Assets (in thousands)	March 31, 2025		December 31, 2024
Gross value	$	208,782	$	210,616
Accumulated amortization		(55,643)		(53,723)
Net carrying value	$	153,139	$	156,893

The expected amortization of other intangible assets shown in the Condensed Consolidated Balance Sheet as of March 31, 2025 is shown in the table below. Actual amortization may vary from these estimates.




(in thousands)	Expected
Nine Months Ending December 31,	Amortization
2025	$	11,262
Year Ending December 31,
2026	$	15,016
2027		15,016
2028		15,016
2029		14,952
2030		14,946
Thereafter		66,931
Total	$	153,139

Contingent Consideration Liabilities

A summary of the Company’s contingent consideration liabilities, which are included in Other liabilities in the Condensed Consolidated Balance Sheets, as of and for the three months ended March 31, 2025 and 2024 follows:


	As of and for the three months ended
	March 31,
Roll Forward of Contingent Consideration Liabilities (in thousands)	2025		2024
Beginning balance	$	30,537	$	113,546
Accretion		40		512
Payments		(1,500)		(13,819)
Ending balance	$	29,077	$	100,239

The contingent consideration liabilities presented in the table above relate to (i) acquisitions of debt brokerage and investment sales brokerage companies over the past several years and (ii) other acquisitions completed over the past several years. The contingent consideration for each of the acquisitions may be earned over various lengths of time after each acquisition, with a maximum earnout period of five years, provided certain revenue targets and other metrics have been met. The last of the earnout periods related to the contingent consideration ends

in the third quarter of 2027. In each case, the Company estimated the initial fair value of the contingent consideration using a Monte Carlo simulation.