TIPTREE INC
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
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(8) Goodwill and Intangible Assets, net
The following table presents identifiable finite and indefinite-lived intangible assets, accumulated amortization, and goodwill by operating segment and/or reporting unit, as appropriate:
| As of June 30, 2024 | As of December 31, 2023 | |||||
|---|---|---|---|---|---|---|
| Finite-Lived Intangible Assets: | Insurance | Other | Total | Insurance | Other | Total |
| Customer relationships | $162,712 | $— | $162,712 | $162,844 | $— | $162,844 |
| Accumulated amortization | (81,205) | — | (81,205) | (74,776) | — | (74,776) |
| Trade names | 16,217 | 800 | 17,017 | 16,227 | 800 | 17,027 |
| Accumulated amortization | (9,161) | (720) | (9,881) | (8,452) | (680) | (9,132) |
| Software licensing | 17,318 | 640 | 17,958 | 17,372 | 640 | 18,012 |
| Accumulated amortization | (10,303) | (640) | (10,943) | (9,891) | (640) | (10,531) |
| Insurance policies and contracts acquired | 36,500 | — | 36,500 | 36,500 | — | 36,500 |
| Accumulated amortization | (36,500) | — | (36,500) | (36,500) | — | (36,500) |
| Other | 1,085 | — | 1,085 | 1,088 | — | 1,088 |
| Accumulated amortization | (669) | — | (669) | (536) | — | (536) |
| Total finite-lived intangible assets | 95,994 | 80 | 96,074 | 103,876 | 120 | 103,996 |
| Indefinite-Lived Intangible Assets: (1) | ||||||
| Insurance licensing agreements | 13,761 | — | 13,761 | 13,761 | — | 13,761 |
| Other | — | 1,000 | 1,000 | — | 1,000 | 1,000 |
| Total indefinite-lived intangible assets | 13,761 | 1,000 | 14,761 | 13,761 | 1,000 | 14,761 |
| Total intangible assets, net | $109,755 | $1,080 | $110,835 | $117,637 | $1,120 | $118,757 |
| Goodwill | 204,264 | 1,708 | 205,972 | 204,447 | 1,708 | 206,155 |
| Total goodwill and intangible assets, net | $314,019 | $2,788 | $316,807 | $322,084 | $2,828 | $324,912 |
(1)Impairment tests are performed at least annually on indefinite-lived intangible assets.
Goodwill
The following table presents the activity in goodwill, by operating segment and/or reporting unit, as appropriate, and includes the adjustments made to the balance of goodwill to reflect the effect of the final valuation adjustments made for acquisitions, as well as the reduction to any goodwill attributable to impairment related charges:
| Insurance | Other | Total | |
|---|---|---|---|
| Balance at December 31, 2023 | $204,447 | $1,708 | $206,155 |
| Foreign currency translation and other | (183) | — | (183) |
| Balance at June 30, 2024 | $204,264 | $1,708 | $205,972 |
The Company conducts annual impairment tests of its goodwill as of October 1. For the three and six months ended June 30, 2024 and 2023, no impairments were recorded on the Company’s goodwill. There was no accumulated impairment recorded in the goodwill balance as of June 30, 2024.
Intangible Assets, net
The following table presents the activity, by operating segment and/or reporting unit, as appropriate, in finite and indefinite-lived other intangible assets and includes the adjustments made to the balance to reflect the effect of any final valuation adjustments made for acquisitions, as well as any reduction attributable to impairment-related charges:
| Insurance | Other | Total | |
|---|---|---|---|
| Balance at December 31, 2023 | $117,637 | $1,120 | $118,757 |
| Amortization expense | (7,698) | (40) | (7,738) |
| Foreign currency translation and other | (184) | — | (184) |
| Balance at June 30, 2024 | $109,755 | $1,080 | $110,835 |
The following table presents the amortization expense on finite-lived intangible assets for the following periods:
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Amortization expense on intangible assets | $3,747 | $3,923 | $7,738 | $7,849 |
For the three and six months ended June 30, 2024 and 2023, no impairments were recorded on the Company’s intangible assets. The Company’s accumulated impairment on intangible assets was $728 as of June 30, 2024.
The following table presents the amortization expense on finite-lived intangible assets for the next five years and thereafter by operating segment and/or reporting unit, as appropriate:
| As of June 30, 2024 | |||
|---|---|---|---|
| Insurance (1) · Other · Total | |||
| Remainder of 2024 | $7,674 | $40 | $7,714 |
| 2025 | 13,240 | 40 | 13,280 |
| 2026 | 10,894 | — | 10,894 |
| 2027 | 9,543 | — | 9,543 |
| 2028 | 8,341 | — | 8,341 |
| 2029 and thereafter | 46,101 | — | 46,101 |
| Total | $95,793 | $80 | $95,873 |
(1)Does not include foreign currency translation adjustment of $201 as of June 30, 2024.
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