Goodwill and intangible assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Goodwill and intangible assets

Goodwill

The tables below provide a breakdown of goodwill by business.

Goodwill by business (in millions)	Investment Services			Investment Management			Other			Consolidated
Balance at Dec. 31, 2019	$	8,332		$	9,007		$	47		$	17,386
Foreign currency translation	(43		)	(103		)	—			(146		)
Other (a)	47			—			(47		)	—
Balance at March 31, 2020	$	8,336		$	8,904		$	—		$	17,240

(a) Reflects the transfer of goodwill associated with the Capital Markets business.

Goodwill by business (in millions)	Investment Services			Investment Management		Other		Consolidated
Balance at Dec. 31, 2018	$	8,333		$	8,970	$	47	$	17,350
Foreign currency translation	(5		)	22		—		17
Balance at March 31, 2019	$	8,328		$	8,992	$	47	$	17,367

Intangible assets

The tables below provide a breakdown of intangible assets by business.

Intangible assets – net carrying amount by business (in millions)	Investment Services			Investment Management			Other		Consolidated
Balance at Dec. 31, 2019	$	678		$	1,580		$	849	$	3,107
Amortization	(18		)	(8		)	—		(26		)
Foreign currency translation	(1		)	(10		)	—		(11		)
Balance at March 31, 2020	$	659		$	1,562		$	849	$	3,070

Intangible assets – net carrying amount by business (in millions)	Investment Services			Investment Management			Other		Consolidated
Balance at Dec. 31, 2018	$	758		$	1,613		$	849	$	3,220
Amortization	(20		)	(9		)	—		(29		)
Foreign currency translation	(1		)	3			—		2
Balance at March 31, 2019	$	737		$	1,607		$	849	$	3,193

The table below provides a breakdown of intangible assets by type.

Intangible assets	March 31, 2020								Dec. 31, 2019
(in millions)	Gross carrying amount		Accumulated amortization			Net carrying amount		Remaining weighted- average amortization period	Gross carrying amount		Accumulated amortization			Net carrying amount
Subject to amortization: (a)
Customer contracts—Investment Services	$	1,515	$	(1,227	)	$	288	10 years	$	1,520	$	(1,214	)	$	306
Customer relationships—Investment Management	709		(548		)	161		11 years	712		(544		)	168
Other	64		(18		)	46		14 years	64		(16		)	48
Total subject to amortization	2,288		(1,793		)	495		10 years	2,296		(1,774		)	522
Not subject to amortization: (b)
Tradenames	1,291		N/A			1,291		N/A	1,293		N/A			1,293
Customer relationships	1,284		N/A			1,284		N/A	1,292		N/A			1,292
Total not subject to amortization	2,575		N/A			2,575		N/A	2,585		N/A			2,585
Total intangible assets	$	4,863	$	(1,793	)	$	3,070	N/A	$	4,881	$	(1,774	)	$	3,107

(a) Excludes fully amortized intangible assets.

(b) Intangible assets not subject to amortization have an indefinite life.

Estimated annual amortization expense for current intangibles for the next five years is as follows:

For the year ended Dec. 31,	Estimated amortization expense (in millions)
2020		$	104
2021		81
2022		63
2023		52
2024		45

Impairment testing

BNY Mellon’s business segments include six reporting units for which goodwill impairment testing is performed on an annual basis, in the second quarter. In the first quarter of 2020, we performed an interim goodwill impairment test of the Asset Management reporting unit, which resulted in no goodwill impairment.

Intangible assets not subject to amortization are tested for impairment annually or more often if events or circumstances indicate they may be impaired.