GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in Goodwill were as follows:



In millions of dollars
Balance, December 31, 2015	$	22,349
Foreign exchange translation and other	239
Divestitures	(13		)
Balance at March 31, 2016	$	22,575

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 2015 Annual Report on Form 10-K.

During the first quarter of 2016, Citigroup announced its intention to exit its consumer businesses in Argentina, Brazil and Colombia. These businesses, which previously had been reported as part of Latin America GCB, are reported as part of Citi Holdings—Consumer Latin America beginning the first quarter of 2016. In addition, the other component businesses of Latin America GCB, except the Mexico consumer business, were either transferred to the ICG reporting units (Banking and Markets) or North America GCB reporting unit (International Personal Banking). Furthermore, the remaining businesses in EMEA GCB, except for the commercial business which was transferred to the ICG—Banking reporting unit, are reported under Asia GCB.

Goodwill balances associated with the transfers were allocated to each of the component businesses based on their relative fair values to the legacy reporting units. An interim goodwill impairment test was performed as of January 1, 2016 for the impacted reporting units resulting in no impairment under the legacy and current reporting unit structures. There were no other triggering events during the first quarter of 2016.

The fair values of the Company’s reporting units substantially exceeded their carrying values and did not indicate a risk of impairment based on current valuations.

The following table shows reporting units with goodwill balances as of March 31, 2016.



In millions of dollars
Reporting unit⁽¹⁾⁽²⁾	Goodwill
North America Global Consumer Banking	$	6,764
Asia Global Consumer Banking⁽³⁾	4,895
Latin America Global Consumer Banking ⁽⁴⁾	1,220
ICG—Banking	3,091
ICG—Markets and Securities Services	6,536
Citi Holdings—Consumer Latin America	69
Total	$	22,575


(1)	Citi Holdings—Other and Citi Holdings—ICG are excluded from the table as there is no goodwill allocated to them.


(2)	Citi Holdings—Consumer EMEA, is excluded from the table as the entire reporting unit, together with allocated goodwill, is classified as held-for-sale as of March 31, 2016.


(3)	Asia Global Consumer Banking includes the consumer businesses in UK, Russia, Poland, UAE and Bahrain beginning the first quarter of 2016.


(4)	Latin America Global Consumer Banking contains only the consumer business in Mexico beginning the first quarter of 2016.

Intangible Assets

The components of intangible assets were as follows:



	March 31, 2016						December 31, 2015
In millions of dollars	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Purchased credit card relationships	$	7,585	$	6,542	$	1,043	$	7,606	$	6,520	$	1,086
Core deposit intangibles	984		917		67		1,050		969		81
Other customer relationships	496		268		228		471		252		219
Present value of future profits	37		32		5		37		31		6
Indefinite-lived intangible assets	228		—		228		234		—		234
Other⁽¹⁾	4,493		2,571		1,922		4,709		2,614		2,095
Intangible assets (excluding MSRs)	$	13,823	$	10,330	$	3,493	$	14,107	$	10,386	$	3,721
Mortgage servicing rights (MSRs)	1,524		—		1,524		1,781		—		1,781
Total intangible assets	$	15,347	$	10,330	$	5,017	$	15,888	$	10,386	$	5,502


(1)	Includes contract-related intangible assets.

The changes in intangible assets were as follows:



	Net carrying amount at											Net carrying amount at
In millions of dollars	December 31, 2015		Acquisitions/ divestitures			Amortization			FX translation and other			March 31, 2016
Purchased credit card relationships	$	1,086	$	(9	)	$	(49	)	$	15		$	1,043
Core deposit intangibles	81		(7		)	(7		)	—			67
Other customer relationships	219		—			(6		)	15			228
Present value of future profits	6		—			—			(1		)	5
Indefinite-lived intangible assets	234		(6		)	—			—			228
Other	2,095		(101		)	(67		)	(5		)	1,922
Intangible assets (excluding MSRs)	$	3,721	$	(123	)	$	(129	)	$	24		$	3,493
Mortgage servicing rights (MSRs)⁽¹⁾	1,781											1,524
Total intangible assets	$	5,502										$	5,017


(1)	For additional information on Citi’s MSRs, including the roll-forward for the three months ended March 31, 2016, see Note 20 to the Consolidated Financial Statements.

- 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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