GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

12 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS, NET

Our goodwill and identifiable intangible assets result from various acquisitions. See Note 2 for a discussion of our goodwill and intangible assets accounting policies. The following table presents our goodwill and net identifiable intangible asset balances as of the dates indicated.

	September 30,
$ in millions	2021		2020
Goodwill	$	660	$	466
Identifiable intangible assets, net	222		134
Total goodwill and identifiable intangible assets, net	$	882	$	600

Goodwill

The following table summarizes our goodwill by segment and the balances and activity for the years indicated.

$ in millions	Private Client Group		Capital Markets		Asset Management		Total
Year ended September 30, 2021
Goodwill as of beginning of year	$	277	$	120	$	69	$	466
Additions	139		54		—		193
Foreign currency translations	1		—		—		1
Goodwill as of end of year	$	417	$	174	$	69	$	660
Year ended September 30, 2020
Goodwill as of beginning of year	$	275	$	120	$	69	$	464
Foreign currency translations	2		—		—		2
Goodwill as of end of year	$	277	$	120	$	69	$	466

The additions to goodwill during the year ended September 30, 2021 arose from our acquisitions of NWPS in the Private Client Group segment and Financo and Cebile in the Capital Markets segment. See Note 3 for additional discussion of these acquisitions.

Qualitative assessments

As described in Note 2, we perform goodwill impairment testing on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We performed our latest annual goodwill impairment testing as of our January 1, 2021 evaluation date, evaluating balances as of December 31, 2020. In that testing, we performed a qualitative impairment assessment for each of our reporting units that had goodwill. Based upon the outcome of our qualitative assessments, no impairment was identified.

Our qualitative assessments consider macroeconomic indicators, such as trends in equity and fixed income markets, gross domestic product, unemployment rates, interest rates, and housing markets. We also consider regulatory changes, reporting unit results, and changes in key personnel and strategy. Changes in these indicators, and our ability to respond to such changes, may trigger the need for impairment testing at a point other than our annual assessment date. No events have occurred since our annual assessment date that would cause us to update this impairment testing.

Identifiable intangible assets, net

The following table sets forth our identifiable intangible asset balances by segment, net of accumulated amortization, and activity for the years indicated.

$ in millions	Private Client Group		Capital Markets		Asset Management		Total
Year ended September 30, 2021
Net identifiable intangible assets as of beginning of year	$	31	$	13	$	90	$	134
Additions	96		13		—		109
Amortization expense	(7)		(9)		(5)		(21)
Net identifiable intangible assets as of end of year	$	120	$	17	$	85	$	222
Year ended September 30, 2020
Net identifiable intangible assets as of beginning of year	$	35	$	17	$	95	$	147
Amortization expense	(4)		(4)		(5)		(13)
Net identifiable intangible assets as of end of year	$	31	$	13	$	90	$	134

The additions of identifiable intangible assets during the year ended September 30, 2021 arose from our acquisitions of NWPS in the Private Client Group segment and Financo and Cebile in the Capital Markets segment. See Note 3 for additional discussion of these acquisitions.

The following table summarizes our identifiable intangible assets by type.

	September 30,
	2021				2020
$ in millions	Gross carrying value		Accumulated amortization		Gross carrying value		Accumulated amortization
Customer relationships	$	238	$	(79)	$	134	$	(61)
Non-amortizing customer relationships	52		—		52		—
Trade name	12		(5)		10		(4)
Seller relationship agreements	4		(3)		4		(2)
Other	6		(3)		6		(5)
Total	$	312	$	(90)	$	206	$	(72)

The following table sets forth the projected amortization expense by fiscal year associated with our identifiable intangible assets with finite lives.

Fiscal year ended September 30,	$ in millions
2022	$	22
2023	15
2024	14
2025	13
2026	10
Thereafter	96
Total	$	170

Qualitative assessments

As described in Note 2, we perform impairment testing for our non-amortizing customer relationships intangible asset on an annual basis or when an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. We performed our latest annual impairment testing as of our January 1, 2021 evaluation date, evaluating the balance as of December 31, 2020. In that testing, we performed a qualitative assessment for our non-amortizing customer relationships intangible asset. Based upon the outcome of our qualitative assessment, no impairment was identified. No events have occurred since such assessment that would cause us to update this impairment testing.