GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in Goodwill were as follows:


In millions of dollars	Institutional Clients Group		Personal Banking and Wealth Management		Legacy Franchises		Total




Balance at December 31, 2022	$	8,986	$	9,741	$	964	$	19,691


Foreign currency translation	42		69		80		191
Balance at March 31, 2023	$	9,028	$	9,810	$	1,044	$	19,882


Foreign currency translation	13		48		55		116
Balance at June 30, 2023	$	9,041	$	9,858	$	1,099	$	19,998

Citi tests goodwill impairment annually as of October 1 (the annual test) and conducts interim assessments between the annual test if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. No such events or circumstances were identified as part of the qualitative assessment performed as of June 30, 2023. For additional information regarding Citi’s goodwill impairment testing process, see Notes 1 and 16 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.

While the inherent risk related to uncertainty is embedded in the key assumptions used in the valuations of the reporting units, the economic and business environments continue to evolve as Citi’s management implements its strategic refresh. If management’s future estimates of key economic and market assumptions were to differ from its current assumptions, Citi could potentially experience material goodwill impairment charges in the future.

Intangible Assets

The components of intangible assets were as follows:


	June 30, 2023						December 31, 2022
In millions of dollars	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Purchased credit card relationships(1)	$	5,302	$	4,290	$	1,012	$	5,513	$	4,426	$	1,087
Credit card contract-related intangibles(2)	4,193		1,612		2,581		3,903		1,518		2,385
Other customer relationships	355		271		84		373		283		90
Present value of future profits	37		36		1		32		31		1
Indefinite-lived intangible assets	217		—		217		192		—		192
Other	—		—		—		65		57		8
Intangible assets (excluding MSRs)	$	10,104	$	6,209	$	3,895	$	10,078	$	6,315	$	3,763
Mortgage servicing rights (MSRs)(3)	681		—		681		665		—		665
Total intangible assets	$	10,785	$	6,209	$	4,576	$	10,743	$	6,315	$	4,428

The changes in intangible assets were as follows:


In millions of dollars	Net carrying amount at December 31, 2022		Acquisitions/renewals/ divestitures		Amortization		Impairments		FX translation and other		Net carrying amount at June 30, 2023
Purchased credit card relationships(1)	$	1,087	$	—	$	(75)	$	—	$	—	$	1,012
Credit card contract-related intangibles(2)	2,385		290		(94)		—		—		2,581
Other customer relationships	90		11		(12)		—		(5)		84
Present value of future profits	1		—		—		—		—		1
Indefinite-lived intangible assets	192		—		—		—		25		217
Other	8		—		(8)		—		—		—
Intangible assets (excluding MSRs)	$	3,763	$	301	$	(189)	$	—	$	20	$	3,895
Mortgage servicing rights (MSRs)(3)	665										681
Total intangible assets	$	4,428									$	4,576

(1)Reflects intangibles for the value of purchased cardholder relationships, which are discrete from contract-related intangibles.

(2)Reflects contract-related intangibles associated with the extension or renewal of existing credit card program agreements with card partners. For the credit card program agreement extended during 2023, the remaining term is over 10 years.

(3)See Note 20 for additional information on Citi’s MSRs, including the rollforward for the three months ended June 30, 2023.