GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in Goodwill by segment were as follows:



In millions of dollars	Global Consumer Banking			Institutional Clients Group			Corporate/Other			Total
Balance at December 31, 2016⁽¹⁾	$	11,874		$	9,741		$	44		$	21,659
Foreign exchange translation	$	286		$	443		$	—		$	729
Divestitures⁽²⁾	(32		)	(72		)	—			(104		)
Impairment of goodwill⁽³⁾	—			—			(28		)	(28		)
Balance at December 31, 2017	$	12,128		$	10,112		$	16		$	22,256
Foreign exchange translation	$	(41	)	$	(153	)	$	—		$	(194	)
Divestitures⁽⁴⁾	—			—			(16		)	(16		)
Balance at December 31, 2018	$	12,087		$	9,959		$	—		$	22,046
Foreign exchange translation	$	15		$	65		$	—		$	80
Balance at December 31, 2019	$	12,102		$	10,024		$	—		$	22,126


(1)	December 31, 2016 has been revised to reflect intersegment goodwill allocations that resulted from the 2019 reorganization of the Citi commercial banking business from GCB to ICG. See Note 3 to the Consolidated Financial Statements.

(2) Primarily related to the sale of a fixed income analytics business and a fixed income index business completed in 2017 and agreement to sell a Mexico asset management business as of December 31, 2017. See Note 2 to the Consolidated Financial Statements.


(3)	Related to the transfer of the mortgage servicing business from North America GCB to Corporate/Other effective January 1, 2017.


(4)	Primarily related to the sale of consumer operations in Colombia in 2018.

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.

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.

Effective in the fourth quarter of 2019, the Citi commercial banking business, previously included in North America GCB, Latin America GCB and Asia GCB, was reorganized and is now part of ICG. Goodwill was allocated to the transferred business based on relative fair value to the legacy reporting units. An interim goodwill impairment test was performed under both the legacy and current reporting unit structures, which resulted in no impairment. No additional triggering events were identified and no goodwill was impaired during the year.

Intangible Assets

The components of intangible assets were as follows:



	December 31, 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	$	5,676	$	4,059	$	1,617	$	5,733	$	3,936	$	1,797
Credit card contract-related intangibles⁽¹⁾	5,393		3,069		2,324		5,225		2,791		2,434
Core deposit intangibles	434		433		1		419		415		4
Other customer relationships	424		275		149		470		299		171
Present value of future profits	34		31		3		32		29		3
Indefinite-lived intangible assets	228		—		228		218		—		218
Other	82		77		5		84		75		9
Intangible assets (excluding MSRs)	$	12,271	$	7,944	$	4,327	$	12,181	$	7,545	$	4,636
Mortgage servicing rights (MSRs)⁽²⁾	495		—		495		584		—		584
Total intangible assets	$	12,766	$	7,944	$	4,822	$	12,765	$	7,545	$	5,220


(1)	Primarily reflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco and AT&T credit card program agreements, which represented 96% of the aggregate net carrying amount as of December 31, 2019.


(2)	For additional information on Citi’s MSRs, see Note 21 to the Consolidated Financial Statements.

Intangible assets amortization expense was $564 million, $557 million and $603 million for 2019, 2018 and 2017, respectively. Intangible assets amortization expense is estimated to be $424 million in 2020, $399 million in 2021, $1,025 million in 2022, $226 million in 2023 and $219 million in 2024.

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		December 31, 2019
Purchased credit card relationships⁽¹⁾	$	1,797	$	9	$	(189	)	$	—	$	—	$	1,617
Credit card contract-related intangibles⁽²⁾	2,434		73		(336		)	—		153		2,324
Core deposit intangibles	4		—		(4		)	—		1		1
Other customer relationships	171		—		(24		)	—		2		149
Present value of future profits	3		—		—			—		—		3
Indefinite-lived intangible assets	218		4		—			—		6		228
Other	9		6		(11		)	—		1		5
Intangible assets (excluding MSRs)	$	4,636	$	92	$	(564	)	$	—	$	163	$	4,327
Mortgage servicing rights (MSRs)⁽³⁾	584											495
Total intangible assets	$	5,220										$	4,822


(1)	Reflects intangibles for the value of cardholder relationships, which are discrete from partner contract-related 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 and AT&T credit card program agreements, which represent 96% of the aggregate net carrying amount at December 31, 2019 and 2018.

(3)

For additional information on Citi’s MSRs, including the rollforward from 2018 to 2019, see Note 21 to the Consolidated Financial Statements.