Other Assets

12 Months Ended

Dec. 31, 2022

The table below presents other assets by type.


	As of December

$ in millions	2022		2021
Property, leasehold improvements and equipment	$	17,074	$	18,094
Goodwill	6,374		4,285
Identifiable intangible assets	2,009		418
Operating lease right-of-use assets	2,172		2,292
Income tax-related assets	7,012		3,860
Miscellaneous receivables and other	4,567		5,659
Total	$	39,208	$	34,608

During 2022, the firm completed the acquisitions of (i) GreenSky, a leading technology company facilitating point-of-sale financing for merchants and consumers, in an all-stock transaction, (ii) NN Investment Partners (NNIP), a leading European asset manager, in an all-cash transaction, and (iii) NextCapital Group, Inc. (NextCapital), a digital retirement advice provider, in an all-cash transaction. These acquisitions were accounted for under the acquisition method of accounting for business combinations and had an aggregate purchase price of $3.83 billion, substantially all of which related to GreenSky and NNIP. The purchase price of GreenSky has been preliminarily allocated to goodwill of approximately $1.05 billion, identifiable intangible assets of approximately $710 million and tangible assets of approximately $960 million (primarily cash and other assets), and to liabilities assumed of approximately $990 million (primarily unsecured short-term borrowings and customer and other payables). The purchase price of NNIP has been preliminarily allocated to goodwill of approximately $880 million, identifiable intangible assets of approximately $900 million, tangible assets of approximately $540 million (primarily cash and customer and other receivables), and to liabilities assumed of approximately $500 million (primarily deferred tax liabilities and customer and other payables). See below for further information about goodwill and identifiable intangible assets related to these acquisitions.

Property, Leasehold Improvements and Equipment

Property, leasehold improvements and equipment is net of accumulated depreciation and amortization of $12.19 billion as of December 2022 and $10.81 billion as of December 2021. Property, leasehold improvements and equipment included $7.17 billion as of December 2022 and $6.71 billion as of December 2021 that the firm uses in connection with its operations, and $89 million as of December 2022 and $194 million as of December 2021 of foreclosed real estate primarily related to distressed loans that were purchased by the firm. The remainder is held by investment entities, including VIEs, consolidated by the firm. Substantially all property and equipment is depreciated on a straight-line basis over the useful life of the asset. Leasehold improvements are amortized on a straight-line basis over the shorter of the useful life of the improvement or the term of the lease. Capitalized costs of software developed or obtained for internal use are amortized on a straight-line basis over three years.

The firm tests property, leasehold improvements and equipment for impairment when events or changes in circumstances suggest that an asset’s or asset group’s carrying value may not be fully recoverable. To the extent the carrying value of an asset or asset group exceeds the projected undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group, the firm determines the asset or asset group is impaired and records an impairment equal to the difference between the estimated fair value and the carrying value of the asset or asset group. In addition, the firm will recognize an impairment prior to the sale of an asset or asset group if the carrying value of the asset or asset group exceeds its estimated fair value.

The firm had impairments of $314 million during 2022, $143 million during 2021, and $171 million during 2020, primarily related to properties held by the firm’s investment entities within Asset & Wealth Management.

Goodwill

Goodwill is the cost of acquired companies in excess of the fair value of net assets, including identifiable intangible assets, at the acquisition date.

During the fourth quarter of 2022, in connection with the changes to the firm’s business segments, the firm reassigned the goodwill to its new reporting units using a relative fair value approach in accordance with ASC 350.

The table below presents the carrying value of goodwill by reporting unit.


	As of December

$ in millions	2022		2021
Global Banking & Markets:
Investment banking	$	267	$	267
FICC	269		269
Equities	2,647		2,647
Asset & Wealth Management:
Asset management	1,385		349
Wealth management	1,310		718
Platform Solutions:
Consumer platforms	482		21
Transaction banking and other	14		14
Total	$	6,374	$	4,285

In the table above:

•Goodwill of $14 million previously in Investment Banking was reassigned to the Transaction banking and other reporting unit related to the transfer of the transaction banking business. The amount of goodwill reassigned was based on the relative fair values of the transferred business and the remaining business within Investment Banking.

•Goodwill of $9 million previously in Wealth management was reassigned to the Equities reporting unit related to the transfer of a securities-based loans business of the firm. The amount of goodwill reassigned was based on the relative fair values of the transferred business and the remaining business within Wealth management.

•All goodwill previously in Consumer banking was reassigned to Wealth management and Consumer platforms based on the relative fair values of the businesses transferred to each reporting unit.

•Goodwill previously in FICC, Equities and Asset Management was not reassigned as no businesses were transferred out of these reporting units.

•Substantially all of the increase in goodwill from December 2021 to December 2022 was driven by the acquisitions of GreenSky and NNIP.

Goodwill is assessed for impairment annually in the fourth quarter or more frequently if events occur or circumstances change that indicate an impairment may exist. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment.

The quantitative goodwill test compares the estimated fair value of each reporting unit with its carrying value (including goodwill and identifiable intangible assets). If the reporting unit’s estimated fair value exceeds its carrying value, goodwill is not impaired. An impairment is recognized if the estimated fair value of a reporting unit is less than its carrying value.

During the fourth quarter of 2022, goodwill was tested for impairment using a quantitative test (both prior to and following the firm’s changes to its business segments). For each test, the estimated fair value of each of the reporting units exceeded its respective carrying value, and therefore, goodwill was not impaired.

The estimated fair value of each reporting unit was based on valuation techniques the firm believes market participants would use to value these reporting units. Estimated fair values are generally derived from utilizing a relative value technique, which applies observable price-to-earnings multiples or price-to-book multiples of comparable competitors to the reporting units’ net earnings or net book value, or a discounted cash flow valuation approach, for reporting units with businesses in early stages of development. The carrying value of each reporting unit reflects an allocation of total shareholders’ equity and represents the estimated amount of total shareholders’ equity required to support the activities of the reporting unit under currently applicable regulatory capital requirements.

Identifiable Intangible Assets

The table below presents identifiable intangible assets by type.


	As of December

$ in millions	2022		2021
Customer lists and merchant relationships
Gross carrying value	$	3,225	$	1,460
Accumulated amortization	(1,275)		(1,130)
Net carrying value	1,950		330

Acquired leases and other
Gross carrying value	486		500
Accumulated amortization	(427)		(412)
Net carrying value	59		88

Total gross carrying value	3,711		1,960
Total accumulated amortization	(1,702)		(1,542)
Total net carrying value	$	2,009	$	418

The firm acquired approximately $1.79 billion of identifiable intangible assets (with a weighted average amortization period of 13 years) during 2022, substantially all in connection with the acquisitions of GreenSky and NNIP. Substantially all of these identifiable intangible assets consisted of customer lists and merchant relationships. During 2021, the amount of identifiable intangible assets acquired by the firm was not material.

Substantially all of the firm’s identifiable intangible assets have finite useful lives and are amortized over their estimated useful lives generally using the straight-line method.

The tables below present information about the amortization of identifiable intangible assets.


	Year Ended December

$ in millions	2022		2021		2020
Amortization	$	174	$	120	$	147


	As of
$ in millions	December 2022
Estimated future amortization
2023	$	200
2024	$	188
2025	$	171
2026	$	164
2027	$	163

The firm tests identifiable intangible assets for impairment when events or changes in circumstances suggest that an asset’s or asset group’s carrying value may not be fully recoverable. To the extent the carrying value of an asset or asset group exceeds the projected undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group, the firm determines the asset or asset group is impaired and records an impairment equal to the difference between the estimated fair value and the carrying value of the asset or asset group. In addition, the firm will recognize an impairment prior to the sale of an asset or asset group if the carrying value of the asset or asset group exceeds its estimated fair value. There were no material impairments during 2022, 2021 and 2020.

Operating Lease Right-of-Use Assets

The firm enters into operating leases for real estate, office equipment and other assets, substantially all of which are used in connection with its operations. For leases longer than one year, the firm recognizes a right-of-use asset representing the right to use the underlying asset for the lease term, and a lease liability representing the liability to make payments. The lease term is generally determined based on the contractual maturity of the lease. For leases where the firm has the option to terminate or extend the lease, an assessment of the likelihood of exercising the option is incorporated into the determination of the lease term. Such assessment is initially performed at the inception of the lease and is updated if events occur that impact the original assessment.

An operating lease right-of-use asset is initially determined based on the operating lease liability, adjusted for initial direct costs, lease incentives and amounts paid at or prior to lease commencement. This amount is then amortized over the lease term. Right-of-use assets and operating lease liabilities recognized (in non-cash transactions for leases entered into or assumed) by the firm were $256 million for 2022, $305 million for 2021 and $182 million for 2020. See Note 15 for information about operating lease liabilities.

For leases where the firm will derive no economic benefit from leased space that it has vacated or where the firm has shortened the term of a lease when space is no longer needed, the firm will record an impairment or accelerated amortization of right-of-use assets. There were no material impairments or accelerated amortizations during 2022 and 2021.

Miscellaneous Receivables and Other

Miscellaneous receivables and other included:

•Investments in qualified affordable housing projects of $793 million as of December 2022 and $714 million as of December 2021.

•Assets classified as held for sale of $285 million as of December 2022 and $1.02 billion as of December 2021 related to certain of the firm’s consolidated investments within Asset & Wealth Management, primarily consisted of property and equipment.