Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

12. Goodwill

Goodwill is the excess of cost over the estimated fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. The goodwill impairment process requires a comparison of the estimated fair value of a reporting unit to its carrying value. The Company tests goodwill for impairment by either performing a qualitative assessment or a quantitative test. The qualitative impairment assessment is an assessment of historical information and relevant events and circumstances to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company may elect not to perform the qualitative impairment assessment for some or all of its reporting units and perform a quantitative impairment test. In performing the quantitative impairment test, the Company may determine the fair values of its reporting units by applying a market multiple, discounted cash flow, and/or an actuarial-based valuation approach.

The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management’s reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of the Company’s reporting units could result in goodwill impairments in future periods which could materially adversely affect the Company’s results of operations or financial position.

Information regarding goodwill by segment, as well as Corporate & Other, was as follows:

	U.S.		Asia (1)			Latin America			EMEA			MetLife Holdings			Corporate & Other		Total
	(In millions)
Balance at January 1, 2017
Goodwill	$	1,451	$	4,596		$	1,226		$	1,060		$	1,567		$	—	$	9,900
Accumulated impairment (2)	—		—			—			—			(680		)	—		(680		)
Total goodwill, net	1,451		4,596			1,226			1,060			887			—		9,220
Acquisition	—		—			—			—			—			103		103
Disposition (3)	—		—			(16		)	—			—			—		(16		)
Effect of foreign currency translation and other	—		77			96			110			—			—		283
Balance at December 31, 2017
Goodwill	1,451		4,673			1,306			1,170			1,567			103		10,270
Accumulated impairment	—		—			—			—			(680		)	—		(680		)
Total goodwill, net	1,451		4,673			1,306			1,170			887			103		9,590
Effect of foreign currency translation and other	—		17			(134		)	(51		)	—			—		(168		)
Balance at December 31, 2018
Goodwill	1,451		4,690			1,172			1,119			1,567			103		10,102
Accumulated impairment	—		—			—			—			(680		)	—		(680		)
Total goodwill, net	1,451		4,690			1,172			1,119			887			103		9,422
Acquisitions	15		4			—			—			—			—		19
Disposition (4)	—		(71		)	—			—			—			—		(71		)
Effect of foreign currency translation and other	—		13			(73		)	(2		)	—			—		(62		)
Balance at December 31, 2019
Goodwill	1,466		4,636			1,099			1,117			1,567			103		9,988
Accumulated impairment	—		—			—			—			(680		)	—		(680		)
Total goodwill, net	$	1,466	$	4,636		$	1,099		$	1,117		$	887		$	103	$	9,308

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(1) Includes goodwill of $4.5 billion from the Japan operations at December 31, 2019, 2018 and 2017.

(2) The $680 million accumulated impairment in the MetLife Holdings segment relates to the retail annuities business impaired in 2012 that was not part of the Separation. See Note 3.

(3) In connection with the disposition of MetLife Afore, goodwill was reduced by $16 million for the year ended December 31, 2017. See Note 3.

(4)

In connection with the pending disposition of MetLife Hong Kong, goodwill was reduced by $71 million for the year ended December 31, 2019. See Note 3.