Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. Square 1 Financial's intangible assets for the quarter that ended in Jun. 2015 was $1.7 Mil.
Square 1 Financial Intangible Assets Historical Data
The historical data trend for Square 1 Financial's Intangible Assets can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Intangible assets are defined as identifiable non-monetary assets that cannot be seen, touched or physically measured. Examples of intangible assets include trade secrets, copyrights, patents, trademarks. If a company acquires assets at the prices above the book value, it may carry goodwill on its balance sheet. Goodwill reflects the difference between the price the company paid and the book value of the assets.
If a company (company A) received a patent through their own work, though it has value, it does not show up on its balance sheet as an intangible asset. However, if company A sells this patent to company B, it will show up on company B's balance sheet as an intangible asset.
The same applies to brand names, trade secrets etc. For instance, Coca-Cola's brand is extremely valuable, but the brand does not appear on its balance sheet, because the brand was never acquired.
Some intangibles are amortized. Amortization is the depreciation of intangible assets.
Many intangibles are not amortized. They may still be written down when the company decides the asset is impaired.
Whenever you see an increase in goodwill over a number of years, you can assume it's because the company is out buying other businesses above book value. GOOD if buying businesses with durable competitive advantage.
If goodwill stays the same, the company when acquiring other companies is either paying less than book value or not acquiring. Businesses with moats never sell for less than book value.
Intangibles acquired are on balance sheet at fair value.
Internally developed brand names (Coke, Wrigleys, Band-Aid) however are not reflected on the balance sheet.
One of the reasons competitive advantage power can remain hidden for so long.
Be Aware
Companies may change the way intangible assets are amortized, and this will affect their reported earnings.
Square 1 Financial Intangible Assets Related Terms
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Square 1 Financial (Square 1 Financial) Business Description
Square 1 Financial Inc is incorporated in Delaware on October, 2004. The Company is a financial services company, providing financial services to entrepreneurs and venture capitalists. The Company is bank holding company for Square 1 Bank. Through Square 1 Bank, the Company provides banking activities on venture capital firms and private equity firms and the portfolio companies funded by such firms. It provides various financial services nationwide to these investors and their portfolio companies, including, among others, term commercial loans, revolving lines of credit, asset-based loans, deposit products and fee-based banking services, including credit cards, foreign exchange, cash management and letters of credit. The Company also provides senior debt facilities to its borrowers that are secured by substantially all of the assets of the borrower client. In some instances, it also obtain the guarantee of the venture firm that provided venture capital to its borrower client or, in the case of a borrower that has not received venture capital funding, a guarantee of individuals associated with the borrower. For early stage companies, the primary source of repayment is typically cash collateral held in accounts with the bank.
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