GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2011

14. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in Goodwill during the first nine months of 2011 were as follows:

*In millions of dollars*

Balance at December 31, 2010	$	26,152

Foreign exchange translation	$	345
Smaller acquisitions/divestitures, purchase accounting adjustments and other		(11	)
Discontinued operations		(147	)

Balance at March 31, 2011	$	26,339

Foreign exchange translation		292
Smaller acquisitions/divestitures and other		(10	)

Balance at June 30, 2011	$	26,621

Foreign exchange translation		(1,184	)
Smaller acquisitions/divestitures and other		59

Balance at September 30, 2011	$	25,496

During the first nine months of 2011, no goodwill was written off due to impairment. The Company performed its annual goodwill impairment test during the third quarter of 2011 resulting in no impairment in step one for any of the reporting units.

The following tables present the Company's goodwill balances by reporting unit and by segment at September 30, 2011:

*In millions of dollars*

Reporting unit(1)		Goodwill
North America Regional Consumer Banking		$	2,545
EMEA Regional Consumer Banking			357
Asia Regional Consumer Banking			5,667
Latin America Regional Consumer Banking			1,730
Securities and Banking			9,185
Global Transaction Services			1,550
Brokerage and Asset Management			71
Local Consumer Lending—Cards			4,391

	Total	$	25,496

By Segment
Regional Consumer Banking		$	10,299
Institutional Clients Group			10,735
Citi Holdings			4,462

	Total	$	25,496


(1): Local Consumer Lending—Other is excluded from the table as there is no goodwill allocated to such unit.

Intangible Assets

The components of intangible assets as of September 30, 2011 and December 31, 2010 were as follows:

	September 30, 2011						December 31, 2010

*In millions of dollars*	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Purchased credit card relationships	$	7,617	$	5,205	$	2,412	$	7,796	$	5,048	$	2,748
Core deposit intangibles		1,340		944		396		1,442		959		483
Other customer relationships		835		344		491		796		289		507
Present value of future profits		235		120		115		241		114		127
Indefinite-lived intangible assets		493		—		493		550		—		550
Other(1)		4,829		1,936		2,893		4,723		1,634		3,089

Intangible assets (excluding MSRs)	$	15,349	$	8,549	$	6,800	$	15,548	$	8,044	$	7,504
Mortgage servicing rights (MSRs)		2,852		—		2,852		4,554		—		4,554

Total intangible assets	$	18,201	$	8,549	$	9,652	$	20,102	$	8,044	$	12,058


(1): Includes contract-related intangible assets.

The changes in intangible assets during the first nine months of 2011 were as follows:

*In millions of dollars*	Net carrying amount at December 31, 2010		Acquisitions/ divestitures		Amortization			Impairments			FX and other(1)			Discontinued Operations			Net carrying amount at September 30, 2011

Purchased credit card relationships	$	2,748	$	6	$	(330	)	$	—		$	(12	)	$	—		$	2,412
Core deposit intangibles		483		4		(73	)		—			(18	)		—			396
Other customer relationships		507		3		(39	)		—			20			—			491
Present value of future profits		127		—		(10	)		—			(2	)		—			115
Indefinite-lived intangible assets		550		—		—			—			(57	)		—			493
Other		3,089		74		(227	)		(16	)		(9	)		(18	)		2,893

Intangible assets (excluding MSRs)	$	7,504	$	87	$	(679	)	$	(16	)	$	(78	)	$	(18	)	$	6,800
Mortgage servicing rights (MSRs)(2)		4,554																2,852

Total intangible assets	$	12,058															$	9,652


(1): Includes foreign exchange translation, purchase accounting and other adjustments.
(2): See Note 17 to the Consolidated Financial Statements for the roll-forward of MSRs.

- Definition

Discloses 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 or 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. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

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