Other Assets

12 Months Ended

Dec. 31, 2015

Disclosure Text Block Abstract

Other Assets

NOTE 7

Other Assets

The following is a summary of Other assets as of December 31:

(Millions)	2015		2014
Goodwill	$	2,749	$	3,024
Deferred tax assets, net(a)		2,231		2,110
Prepaid expenses(b)		851		1,626
Other intangible assets, at amortized cost		796		854
Community Reinvestment Act Tax Credit investments		638		622
Restricted cash(c)		477		384
Derivative assets(a)		282		711
Other		2,045		2,011
Total	$	10,069	$	11,342

• Refer to Notes 14and 21 for a discussion of derivative assets and deferred tax assets, net, respectively, as of December 31, 2015and 2014. For 2015and 2014, $80 million and $96 million, respectively, of foreign deferred tax liabilities is reflected in Other Liabilities. Derivative assets reflect the impact of master netting agreements.
• Includes prepaid miles and reward points acquired primarily from airline partners of approximately $0.3 billion and $1.1 billion as of December 31, 2015and 2014, respectively, including approximately nil and $0.6 billion, respectively, from Delta.
• Includes restricted cash of approximately $155 million and $64 million as of December 31, 2015 and 2014, respectively, which is primarily held for coupon and certain asset-backed securitization maturities.

Goodwill

The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows:

									Corporate &
(Millions)	USCS		ICS		GCS		GNMS			Other	Total
Balance as of January 1, 2014	$	174	$	1,052	$	1,543	$	160	$	269	$	3,198
Acquisitions		―		―		―		―		―		―
Dispositions		―		―		(102)		―		―		(102)
Other, including foreign currency translation		―		(70)		―		―		(2)		(72)
Balance as of December 31, 2014	$	174	$	982	$	1,441	$	160	$	267	$	3,024
Acquisitions		―		―		―		―		―		―
Dispositions		―		―		―		―		―		―
Other, including impairment and foreign currency translation(a)		―		(53)		―		―		(222)		(275)
Balance as of December 31, 2015	$	174	$	929	$	1,441	$	160	$	45	$	2,749

Includes a $219 million impairment charge within Corporate & Other. Refer to Note 2 for additional information.

Accumulated impairment losses were $219 million as of December 31, 2015, and nil as of December 31, 2014 and December 31, 2013.

Other Intangible Assets

The components of other intangible assets were as follows:

		2015						2014
(Millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships(a)	$	1,506	$	(836)	$	670	$	1,455	$	(754)	$	701
Other		231		(105)		126		255		(102)		153
Total	$	1,737	$	(941)	$	796	$	1,710	$	(856)	$	854

Includes net intangibles related to airline partners of $255 million and $340 million as of December 31, 2015 and 2014, respectively, including approximately $165 million and $206 million, respectively, related to Delta.

Amortization expense for the years ended December 31, 2015, 2014and 2013was $183 million, $174 million and $193 million, respectively. Intangible assets acquired in 2015 and 2014 are being amortized, on average, over 5 and 7 years, respectively.

Estimated amortization expense for other intangible assets over the next five years is as follows:

(Millions)		2016		2017		2018		2019		2020
Estimated amortization expense	$	174	$	156	$	146	$	106	$	76

COMMUNITY REINVESTMENT ACT TAX CREDIT INVESTMENTS

The Company accounts for its investments in Qualified Affordable Housing (QAH) and other tax credit investments using the equity method of accounting. The Company had $638 million and $622 million in tax credit investments as of December 31, 2015 and 2014, respectively, included in Other assets on the Consolidated Balance Sheets, of which $578 million and $522 million,respectively, specifically related toQAHinvestments.

As of December 31, 2015, the Company has committed to provide funding related to certain of these investments, resulting in a $139 million unfunded commitment reported in Other liabilities, which is expected to be paid between 2016 and 2029.

In addition, the Company has contractual off-balance sheet obligations, which were not deemed probable of being drawn, whereby it may provide additional funding up to $200 million for these QAH investments as of December 31, 2015.

During the years ended December 31,2015 and 2014, the Company recognized equity method losses related to these QAH investments of $50 million and $48 million, respectively, which were recognized in Other expenses; and associated tax credits of $53 million and $47 million, respectively, recognized in Income tax provision.

OTHER

In 2014, the Company received $990 million in net cash proceeds for the sale of its equity method investment in Concur Technologies (Concur) with a carrying amount of $246 million and recognized a gain of $744 million in Other revenues.