GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in Goodwill were as follows:



In millions of dollars	Global Consumer Banking			Institutional Clients Group			Total
Balance at December 31, 2018	$	12,743		$	9,303		$	22,046
Foreign currency translation	—			(9		)	(9		)
Balance at March 31, 2019	$	12,743		$	9,294		$	22,037
Foreign currency translation	(15		)	43			28
Balance at June 30, 2019	$	12,728		$	9,337		$	22,065
Foreign currency translation	(77		)	(166		)	(243		)
Balance at September 30, 2019	$	12,651		$	9,171		$	21,822

Goodwill impairment testing is performed at the level below each business segment (referred to as a reporting unit). See Note 3 for further information on business segments. For additional information regarding Citi’s goodwill impairment testing process, see Notes 1 and 16 to the Consolidated Financial Statements in Citi’s 2018 Annual Report on Form 10-K.

The Company performed its annual goodwill impairment test as of July 1, 2019. The fair values of the Company’s reporting units exceeded their carrying values by approximately 33% to 134% and no reporting unit is at risk of impairment. Further, there were no triggering events identified and no goodwill impaired during the three and nine months ended September 30, 2019.

Intangible Assets

The components of intangible assets were as follows:



	September 30, 2019						December 31, 2018
In millions of dollars	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Purchased credit card relationships	$	5,662	$	4,008	$	1,654	$	5,733	$	3,936	$	1,797
Credit card contract-related intangibles⁽¹⁾	5,316		2,983		2,333		5,225		2,791		2,434
Core deposit intangibles	416		415		1		419		415		4
Other customer relationships	463		306		157		470		299		171
Present value of future profits	32		29		3		32		29		3
Indefinite-lived intangible assets	216		—		216		218		—		218
Other	81		73		8		84		75		9
Intangible assets (excluding MSRs)	$	12,186	$	7,814	$	4,372	$	12,181	$	7,545	$	4,636
Mortgage servicing rights (MSRs)⁽²⁾	472		—		472		584		—		584
Total intangible assets	$	12,658	$	7,814	$	4,844	$	12,765	$	7,545	$	5,220


(1)	Primarily reflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco, Sears and AT&T credit card program agreements, which represented 97% of the aggregate net carrying amount as of September 30, 2019 and December 31, 2018.


(2)	For additional information on Citi’s MSRs, see Note 18 to the Consolidated Financial Statements.

The changes in intangible assets were as follows:



	Net carrying amount at												Net carrying amount at
In millions of dollars	December 31, 2018		Acquisitions/ divestitures		Amortization			Impairments		FX translation and other			September 30, 2019
Purchased credit card relationships⁽¹⁾	$	1,797	$	—	$	(142	)	$	—	$	(1	)	$	1,654
Credit card contract-related intangibles⁽²⁾	2,434		—		(252		)	—		151			2,333
Core deposit intangibles	4		—		(4		)	—		1			1
Other customer relationships	171		—		(18		)	—		4			157
Present value of future profits	3		—		—			—		—			3
Indefinite-lived intangible assets	218		—		—			1		(3		)	216
Other	9		—		(8		)	—		7			8
Intangible assets (excluding MSRs)	$	4,636	$	—	$	(424	)	$	1	$	159		$	4,372
Mortgage servicing rights (MSRs)⁽³⁾	584												472
Total intangible assets	$	5,220											$	4,844


(1)	Reflects intangibles for the value of cardholder relationships, which are discrete from partner contract intangibles and include credit card accounts primarily in the Costco, Macy’s and Sears portfolios.


(2)	Primarily reflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco, Sears and AT&T credit card program agreements, which represented 97% of the aggregate net carrying amount at September 30, 2019 and December 31, 2018.

(3)

For additional information on Citi’s MSRs, including the rollforward for the nine months ended September 30, 2019, see Note 18 to the Consolidated Financial Statements.