GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2013

15. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in Goodwill during the first three months of 2013 were as follows:

*In millions of dollars*

Balance at December 31, 2012	$	25,673

Foreign exchange translation and other		(199	)

Balance at March 31, 2013	$	25,474

During the first quarter of 2013, no goodwill was written off due to impairment and no interim impairment test on goodwill was performed. Goodwill is tested for impairment annually during the third quarter at the reporting unit level and between annual tests 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. There were no triggering events present during the first quarter of 2013 for any reporting unit and thus an interim goodwill impairment test was not required.

While no goodwill was written off during the first quarter of 2013, the Company continues to monitor the Local Consumer Lending—Cards reporting unit for triggering events in the interim as the goodwill present in this reporting unit may be sensitive to further deterioration as the valuation of the reporting unit is particularly dependent upon economic conditions that affect consumer credit risk and behavior. The fair value as a percentage of allocated book value for Local Consumer Lending—Cards is 110%, based on the results of the goodwill impairment test performed during the third quarter of 2012. Small deterioration in the assumptions used in the valuations, in particular the discount rate, expected recovery, and expected loss rates, could significantly affect Citigroup's impairment evaluation and, hence, results. If the future were to differ adversely from management's best estimate of key economic assumptions, and associated cash flows were to decrease by a small margin, the Company could potentially experience future material impairment charges with respect to the $105 million of goodwill remaining in its Local Consumer Lending—Cards reporting unit. Any such charges, by themselves, would not negatively affect the Company's Tier 1 Common, Tier 1 Capital or Total Capital regulatory ratios, its Tangible Common Equity or the Company's liquidity position.

The following table shows reporting units with goodwill balances as of March 31, 2013.

*In millions of dollars* Reporting unit(1)	Goodwill

North America Regional Consumer Banking	$	6,799
EMEA Regional Consumer Banking		343
Asia Regional Consumer Banking		5,242
Latin America Regional Consumer Banking		1,942
Securities and Banking		9,387
Transaction Services		1,614
Brokerage and Asset Management		42
Local Consumer Lending—Cards		105

Total	$	25,474

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

INTANGIBLE ASSETS

The components of intangible assets were as follows:

	March 31, 2013						December 31, 2012

*In millions of dollars*	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Purchased credit card relationships	$	7,621	$	5,813	$	1,808	$	7,632	$	5,726	$	1,906
Core deposit intangibles		1,283		1,023		260		1,315		1,019		296
Other customer relationships		725		378		347		767		380		387
Present value of future profits		241		140		101		239		135		104
Indefinite-lived intangible assets		521		—		521		487		—		487
Other(1)		4,739		2,319		2,420		4,764		2,247		2,517

Intangible assets (excluding MSRs)	$	15,130	$	9,673	$	5,457	$	15,204	$	9,507	$	5,697
Mortgage servicing rights (MSRs)		2,203		—		2,203		1,942		—		1,942

Total intangible assets	$	17,333	$	9,673	$	7,660	$	17,146	$	9,507	$	7,639

(1): Includes contract-related intangible assets.

The changes in intangible assets during the first three months of 2013 were as follows:

*In millions of dollars*	Net carrying amount at December 31, 2012		Acquisitions/ divestitures		Amortization			Impairments			FX and other			Net carrying amount at March 31, 2013

Purchased credit card relationships	$	1,906	$	—	$	(95	)	$	(4	)	$	1		$	1,808
Core deposit intangibles		296		—		(19	)		(21	)		4			260
Other customer relationships		387		—		(9	)		—			(31	)		347
Present value of future profits		104		—		(3	)		—			—			101
Indefinite-lived intangible assets		487		—		—			—			34			521
Other		2,517		—		(78	)		—			(19	)		2,420

Intangible assets (excluding MSRs)	$	5,697	$	—	$	(204	)	$	(25	)	$	(11	)	$	5,457
Mortgage servicing rights (MSRs)(1)		1,942													2,203

Total intangible assets	$	7,639												$	7,660

(1): See Note 18 to the Consolidated Financial Statements for the roll-forward of MSRs.

- 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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