GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in Goodwill during the first nine months of 2014 were as follows:



In millions of dollars
Balance at December 31, 2013	25,009
Foreign exchange translation and other	1
Divestitures	(2		)
Balance at March 31, 2014	$	25,008
Foreign exchange translation and other	208
Divestitures	(129		)
Balance at June 30, 2014	25,087
Foreign exchange translation and other	(586		)
Divestitures	(1		)
Balance at September 30, 2014	24,500

The goodwill impairment testing process, including the methodology and assumptions used to estimate the fair value of the reporting units, is disclosed in more detail in Note 1 of Citigroup’s 2013 Annual Report on Form 10-K.

During the first nine months of 2014, no goodwill was written off due to impairment. The Company performed its annual goodwill impairment test during the third quarter of 2014 resulting in no impairment for any of the reporting units. The fair values of the Company’s reporting units as of the most recent goodwill impairment tests substantially exceeded their carrying values and did not indicate a more likely than not risk of impairment.

The following table shows reporting units with goodwill balances as of September 30, 2014.



In millions of dollars
Reporting Unit⁽¹⁾	Goodwill
North America Global Consumer Banking	$	6,765
EMEA Global Consumer Banking	346
Asia Global Consumer Banking	4,987
Latin America Global Consumer Banking	1,733
Banking	3,786
Markets and Securities Services	6,841
Latin America Retirement Services	42
Total	$	24,500


(1)	Citi Holdings—Other is excluded from the table as there is no goodwill allocated to it.

Intangible Assets

The components of intangible assets as of September 30, 2014 and December 31, 2013 were as follows:



	September 30, 2014						December 31, 2013
In millions of dollars	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Purchased credit card relationships	$	7,521	$	6,229	$	1,292	$	7,552	$	6,006	$	1,546
Core deposit intangibles	1,210		1,059		151		1,255		1,052		203
Other customer relationships	615		344		271		675		389		286
Present value of future profits	237		154		83		238		146		92
Indefinite-lived intangible assets	314		—		314		323		—		323
Other⁽¹⁾	5,088		2,674		2,414		5,073		2,467		2,606
Intangible assets (excluding MSRs)	$	14,985	$	10,460	$	4,525	$	15,116	$	10,060	$	5,056
Mortgage servicing rights (MSRs)	2,093		—		2,093		2,718		—		2,718
Total intangible assets	$	17,078	$	10,460	$	6,618	$	17,834	$	10,060	$	7,774


(1)	Includes contract-related intangible assets.

The changes in intangible assets during the nine months ended September 30, 2014 were as follows:



	Net carrying amount at														Net carrying amount at
In millions of dollars	December 31, 2013		Acquisitions/ divestitures			Amortization			Impairments			FX and other ⁽¹⁾			September 30, 2014
Purchased credit card relationships	$	1,546	$	(9	)	$	(247	)				$	2		$	1,292
Core deposit intangibles	203		(6		)	(44		)				(2		)	151
Other customer relationships	286		14			(21		)				(8		)	271
Present value of future profits	92		—			(9		)				—			83
Indefinite-lived intangible assets	323		(2		)	—						(7		)	314
Other	2,606					(252		)	(2		)	62			2,414
Intangible assets (excluding MSRs)	$	5,056	$	(3	)	$	(573	)	$	(2	)	$	47		$	4,525
Mortgage servicing rights (MSRs) ⁽²⁾	2,718														2,093
Total intangible assets	$	7,774													$	6,618


(1)	Includes foreign exchange translation and purchase accounting adjustments.


(2)	See Note 20 to the Consolidated Financial Statements for the roll-forward of MSRs.

- 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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