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Goodwill And Purchased Intangible Assets

9 Months Ended

Sep. 30, 2011

Goodwill And Purchased Intangible Assets [Abstract]

Goodwill And Purchased Intangible Assets

5. Goodwill and Purchased Intangible Assets

Goodwill

The following table presents the changes in goodwill by business segment during the nine months ended September 30, 2011:


	Market Services			Issuer Services			Market Technology			Total
	(in millions)
Balance at December 31, 2010	$	4,679		$	292		$	156		$	5,127
Foreign currency translation adjustment		(70	)		(5	)		(6	)		(81	)

Balance at September 30, 2011	$	4,609		$	287		$	150		$	5,046

As of September 30, 2011, the amount of goodwill that is expected to be deductible for tax purposes in future periods is $99 million.

Goodwill represents the excess of the purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. Goodwill is allocated to the reporting units based on the assignment of the fair values of each reporting unit of the acquired company. We are required to test goodwill for impairment at the reporting unit level annually, or in interim periods if certain events occur indicating that the carrying value may be impaired. We test for impairment during the fourth quarter of our fiscal year using carrying values as of October 1. We considered the need to update our most recent annual goodwill impairment test as of September 30, 2011 and did not identify any impairment indicators that triggered a revised impairment analysis. As such, we concluded the assumptions used during the most recent annual assessment remained appropriate. There was no impairment of goodwill for the three and nine months ended September 30, 2011 and 2010, however, events such as economic weakness and unexpected significant declines in operating results of reporting units could result in goodwill impairment charges in the future.

Purchased Intangible Assets

The following table presents details of our total purchased intangible assets, both finite- and indefinite-lived:


	September 30, 2011											December 31, 2010
	Gross Amount			Accumulated Amortization			Net Amount			Weighted- Average Useful Life (in Years)		Gross Amount			Accumulated Amortization			Net Amount			Weighted- Average Useful Life (in Years)
	(in millions)											(in millions)
*Finite-Lived Intangible Assets*
Technology	$	37		$	(8	)	$	29			9	$	72		$	(41	)	$	31			6
Customer relationships		852			(185	)		667			21		853			(152	)		701			21
Other		6			(1	)		5			8		6			(1	)		5			8
Foreign currency translation adjustment		(23	)		3			(20	)				(15	)		4			(11	)

Total finite-lived intangible assets	$	872		$	(191	)	$	681				$	916		$	(190	)	$	726

*Indefinite-Lived Intangible Assets*
Exchange and clearing registrations	$	790		$	—		$	790				$	790		$	—		$	790
Trade names		181			—			181					181			—			181
Licenses		78			—			78					78			—			78
Foreign currency translation adjustment		(73	)		—			(73	)				(56	)		—			(56	)

Total indefinite-lived intangible assets	$	976		$	—		$	976				$	993		$	—		$	993

Total intangible assets	$	1,848		$	(191	)	$	1,657				$	1,909		$	(190	)	$	1,719

Amortization expense for purchased finite-lived intangible assets was $13 million for the three months ended September 30, 2011 and $41 million for the nine months ended September 30, 2011 compared to $15 million for the three months ended September 30, 2010 and $42 million for the nine months ended September 30, 2010.

The estimated future amortization expense (excluding the impact of foreign currency translation adjustments of $20 million as of September 30, 2011) of purchased finite-lived intangible assets as of September 30, 2011 is as follows:


	(in millions)
2011⁽¹⁾	$	13
2012		51
2013		50
2014		48
2015		46
2016 and thereafter		493

Total	$	701

⁽¹⁾	Represents the estimated amortization to be recognized for the remaining three months of 2011.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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