Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

GOODWILL AND OTHER INTANGIBLES

The changes in the carrying value of goodwill by reportable segment are as follows:

	PGIM			Retirement		Assurance IQ		International Businesses		Other		Total
	(in millions)
Goodwill balance, December 31, 2016:	$	230		$	444	$	0	$	159	$	0	$	833
Effect of foreign currency translation	5			0		0		5		0		10
Goodwill balance, December 31, 2017:	235			444		0		164		0		843
Acquisitions	0			11		0		0		11		22
Effect of foreign currency translation	(2		)	0		0		0		0		(2		)
Goodwill balance, December 31, 2018:	233			455		0		164		11		863
Acquisitions	22			0		2,128		0		0		2,150
Effect of foreign currency translation	(1		)	0		0		1		0		0
Goodwill balance, December 31, 2019:	$	254		$	455	$	2,128	$	165	$	11	$	3,013

The Company tests goodwill for impairment annually, as of December 31, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2. The Company’s reporting units, except Assurance IQ, each performed their annual goodwill impairment test using the quantitative two-step approach at December 31, 2019 and 2018. The Assurance IQ segment performed a qualitative assessment at December 31, 2019 considering the October 2019 acquisition date. There are no impairments or accumulated impairment losses recorded in the periods presented above for goodwill.

Other Intangibles

Other intangible balances at December 31, are as follows:

	2019							2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in millions)
Subject to amortization:
Mortgage servicing rights	$	745	$	(468	)	$	277	$	689	$	(423	)	$	266
Customer relationships	244		(153		)	91		173		(120		)	53
Software and other	201		(38		)	163		114		(87		)	27
Not subject to amortization	69		N/A			69		2		N/A			2
Total						$	600						$	348

The fair values of net mortgage servicing rights were $287 million and $295 million at December 31, 2019 and 2018, respectively. Amortization expense for other intangibles was $65 million, $61 million and $51 million for the years ending December 31, 2019, 2018 and 2017, respectively. The amortization expense amounts for 2019, 2018 and 2017 do not include impairments recorded for mortgage servicing rights or other intangibles. See the nonrecurring fair value measurements section of Note 6 for more information regarding these impairments.

The following table provides estimated future amortization for the periods indicated.

	2020		2021		2022		2023		2024
	(in millions)
Estimated future amortization expense of other intangibles	$	70	$	65	$	57	$	41	$	34