Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents changes to goodwill for the years ended December 31, 2015 and 2016:



(in millions)	Global Business Solutions			Global Financial Solutions			Network & Security Solutions			Divested Operations			Totals
Balance as of January 1, 2015
Goodwill	$	15,712		$	2,126		$	2,238		$	181		$	20,257
Accumulated impairment losses	(1,363		)	(683		)	(1,013		)	(181		)	(3,240		)
	14,349			1,443			1,225			—			17,017
Acquisitions	9			—			46			—			55
Other adjustments (primarily foreign currency)	(154		)	(72		)	—			—			(226		)
Balance as of December 31, 2015
Goodwill	15,567			2,054			2,284			181			20,086
Accumulated impairment losses	(1,363		)	(683		)	(1,013		)	(181		)	(3,240		)
	14,204			1,371			1,271			—			16,846
Acquisitions	5			—			—			—			5
Dispositions	(25		)	—			—			—			(25		)
Other adjustments (primarily foreign currency)	(42		)	(88		)	—			—			(130		)
Balance as of December 31, 2016
Goodwill	15,505			1,966			2,284			181			19,936
Accumulated impairment losses	(1,363		)	(683		)	(1,013		)	(181		)	(3,240		)
	$	14,142		$	1,283		$	1,271		$	—		$	16,696

The intangible amortization expense associated with customer relationships and other intangibles, including amortization associated with investments in affiliates, was as follows for the periods indicated:



Year ended December 31,
(in millions)	Amount
2016	$	761
2015	843
2014	877

The carrying value of the First Data trade name is $604 million as of December 31, 2016 and 2015. Upon consideration of many factors, including the determination that there are no legal, regulatory or contractual provisions that limit the useful life of the First Data trade name, the Company determined that the First Data trade name had an indefinite useful life. The Company also considered the effects of obsolescence, demand, competition, other economic factors, and its ability to maintain and protect the trade name without significant expenditures. The First Data trade name is expected to contribute directly or indirectly to the future cash flows of the Company for an indefinite period. As an indefinite lived asset, the First Data trade name is not amortized but is reviewed annually for impairment until such time as it is determined to have a finite life. The First Data trade name was not impaired as of December 31, 2016 or 2015.

The following table provides the components of other intangibles:



	As of December 31,
	2016							2015
			Accumulated			Net of Accumulated				Accumulated			Net of Accumulated
(in millions)	Cost		Amortization			Amortization		Cost		Amortization			Amortization
Customer relationships	$	7,399	$	(5,660	)	$	1,739	$	7,435	$	(5,299	)	$	2,136

Other intangibles:
Conversion costs	$	248	$	(109	)	$	139	$	218	$	(102	)	$	116
Contract costs	306		(149		)	157		280		(123		)	157
Software	2,236		(1,726		)	510		2,019		(1,547		)	472
Other, including trade names	1,375		(381		)	994		1,400		(362		)	1,038
Total other intangibles	$	4,165	$	(2,365	)	$	1,800	$	3,917	$	(2,134	)	$	1,783

The estimated future aggregate amortization expense for the next five years is as follows:



Year ended December 31,
(in millions)	Amount
2017	$	629
2018	560
2019	475
2020	393
2021	276

The Company tests contract and conversion costs for recoverability on an annual basis by comparing the remaining expected undiscounted cash flows under the contract to the net book value. Any assets that are determined to be unrecoverable are written down to their fair value. In addition to this annual test, these assets and all other long lived assets are tested for impairment upon an indicator of potential impairment.

- 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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