doug-20230930

000187889712/312023Q3FALSEGOODWILL AND OTHER INTANGIBLE ASSETS

The components of Goodwill and other intangible assets, net were as follows:


	December 31, 2022		Amortization		September 30, 2023
Goodwill	$	32,230	$	—	$	32,230

Indefinite-life intangibles:
Trademark - Douglas Elliman	68,000		—		68,000
Intangibles with a finite life, net	5,666		(527)		5,139
Total other intangible assets, net	$	73,666	$	(527)	$	73,139


	December 31, 2021		Adjustments		Amortization		September 30, 2022
Goodwill	$	32,571	$	(341)	$	—	$	32,230

Indefinite-life intangibles:
Trademark - Douglas Elliman	68,000		—		—		68,000
Intangibles with a finite life, net	6,421		—		(577)		5,844
Total other intangible assets, net	$	74,421	$	(341)	$	(577)	$	73,844

Goodwill is evaluated for impairment annually on October 1 or whenever the Company identifies certain triggering events or circumstances that would more likely than not reduce the fair value of the Company below its carrying amount. Events or circumstances that might indicate an interim evaluation is warranted include, among other things, unexpected adverse business conditions, macro and reporting unit specific economic factors (for example, interest rate and foreign exchange rate fluctuations, and loss of key personnel), supply costs, unanticipated competitive activities, and acts by governments and courts.

All the goodwill and other intangibles are recorded at Douglas Elliman Realty. During the quarter ended September 30, 2023, the Company performed a quantitative analysis on goodwill and other intangibles to determine whether an impairment had occurred related to goodwill and other intangibles. The Company utilized third-party valuation specialists to prepare a quantitative assessment as of September 30, 2023 of goodwill and trademark intangible asset related to Douglas Elliman Realty.

For the goodwill testing, the Company utilized an income approach (a discounted cash flows method) to estimate the fair value of Douglas Elliman Realty. The estimated fair value of the trademark indefinite-life intangible asset related to the Douglas Elliman brand name was determined using an approach that values the Company’s cash savings from having a royalty-free license compared to the market rate it would pay for access to use the trade name.

The third-party quantitative assessments of the goodwill and trademark intangible asset reflected management’s assumptions regarding revenue growth rates, economic and market trends including current expectations, changes to the Company’s operations as well as other expectations about the anticipated short-term and long-term operating results of the Company.

The Company performed a quantitative test assessment as of September 30, 2023, which did not result in impairment charges related to its goodwill or trademark for the three or nine months ended September 30, 2023. If the Company fails to achieve the financial projections used in the quantitative assessments of fair value, additional impairment charges could result in future periods, and such impairment charges could be material.

The components of Goodwill and other intangible assets, net were as follows:


	December 31, 2022		Amortization		September 30, 2023
Goodwill	$	32,230	$	—	$	32,230

Indefinite-life intangibles:
Trademark - Douglas Elliman	68,000		—		68,000
Intangibles with a finite life, net	5,666		(527)		5,139
Total other intangible assets, net	$	73,666	$	(527)	$	73,139


	December 31, 2021		Adjustments		Amortization		September 30, 2022
Goodwill	$	32,571	$	(341)	$	—	$	32,230

Indefinite-life intangibles:
Trademark - Douglas Elliman	68,000		—		—		68,000
Intangibles with a finite life, net	6,421		—		(577)		5,844
Total other intangible assets, net	$	74,421	$	(341)	$	(577)	$	73,844

32,23032,23068,00068,0005,6665275,13973,66652773,13932,57134132,23068,00068,0006,4215775,84474,42134157773,84400018788972023-01-012023-09-3000018788972023-11-03xbrli:shares00018788972023-09-30iso4217:USD00018788972022-12-31iso4217:USDxbrli:shares0001878897doug:CommissionsAndOtherBrokerageIncomeMember20

SEC Form 10-Q filed by Douglas Elliman Inc.