GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

For additional information regarding Citi’s goodwill impairment testing process, see Notes 1 and 17 to the Consolidated Financial Statements in Citi’s 2015 Annual Report on Form 10-K.

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
Foreign exchange translation and other	(79		)
Balance at June 30, 2016	$	22,496
Foreign exchange translation and other	$	43
Balance at September 30, 2016	$	22,539

For additional information on transfers of Goodwill balances between reporting units, see Note 16 in Citi’s First Quarter of 2016 Form 10-Q. There were no other triggering events during the second and third quarters of 2016.

The Company performed its annual goodwill impairment test as of July 1, 2016. The fair values of the Company’s reporting units exceeded their carrying values and did not indicate a risk of impairment.

The following table shows reporting units with goodwill balances as of September 30, 2016 and the fair value as a percentage of allocated book value as of the annual impairment test:



In millions of dollars
Reporting unit⁽¹⁾⁽²⁾	Goodwill		Fair value as a % of allocated book value
North America Global Consumer Banking	$	6,763	148	%
Asia Global Consumer Banking⁽³⁾	5,092		157
Latin America Global Consumer Banking ⁽⁴⁾	1,142		180
ICG—Banking	2,791		194
ICG—Markets and Securities Services	6,671		115
Citi Holdings—Consumer Latin America	80		127
Total as of September 30, 2016	$	22,539


(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 September 30, 2016.


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


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

Intangible Assets

The components of intangible assets were as follows:



	September 30, 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	$	8,396	$	6,596	$	1,800	$	7,606	$	6,520	$	1,086
Credit card contract related intangibles	5,255		2,249		3,006		3,922		2,021		1,901
Core deposit intangibles	854		811		43		1,050		969		81
Other customer relationships	536		298		238		471		252		219
Present value of future profits	33		28		5		37		31		6
Indefinite-lived intangible assets	228		—		228		284		—		284
Other	515		477		38		737		593		144
Intangible assets (excluding MSRs)	$	15,817	$	10,459	$	5,358	$	14,107	$	10,386	$	3,721
Mortgage servicing rights (MSRs)	1,270		—		1,270		1,781		—		1,781
Total intangible assets	$	17,087	$	10,459	$	6,628	$	15,888	$	10,386	$	5,502

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 ⁽¹⁾			Amortization			Impairments			FX translation and other			September 30, 2016
Purchased credit card relationships	$	1,086	$	848		$	(149	)	$	—		$	15		$	1,800
Credit card contract related intangibles	1,901		1,314			(227		)	—			18			3,006
Core deposit intangibles	81		(13		)	(22		)	—			(3		)	43
Other customer relationships	219		—			(19		)	—			38			238
Present value of future profits	6		—			—			—			(1		)	5
Indefinite-lived intangible assets	284		(18		)	—			(1		)	(37		)	228
Other	144		(106		)	(7		)	—			7			38
Intangible assets (excluding MSRs)	$	3,721	$	2,025		$	(424	)	$	(1	)	$	37		$	5,358
Mortgage servicing rights (MSRs)⁽²⁾	1,781														1,270
Total intangible assets	$	5,502													$	6,628


(1)	Reflects the recognition during the second quarter of 2016 of additional purchased credit card relationships and contract-related intangible assets as a result of the acquisition of the Costco cards portfolio, as well as the renewal and extension of the co-branded credit card program agreement with American Airlines.


(2)	For additional information on Citi’s MSRs, including the roll-forward for the nine months ended September 30, 2016, see Note 18 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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