Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the cost of an acquisition over the fair value of the net tangible and other intangible assets acquired. Other intangible assets represent purchased long-lived intangible assets, primarily client relationships and core deposit intangible assets, that can be distinguished from goodwill because of contractual rights or because the asset can be exchanged on its own or in combination with a related contract, asset or liability. Goodwill is not amortized, but is subject to at least annual evaluation for impairment. Other intangible assets, which are also subject to annual evaluation for impairment, are mainly related to client relationships, which are amortized on a straight-line basis over periods ranging from five to twenty years, and core deposit intangible assets, which are amortized on a straight-line basis over periods ranging from sixteen to twenty-two years, with such amortization recorded in other expenses in our consolidated statement of income.

Impairment of goodwill is deemed to exist if the carrying value of a reporting unit, including its allocation of goodwill and other intangible assets, exceeds its estimated fair value. Impairment of other intangible assets is deemed to exist if the balance of the other intangible asset exceeds the cumulative expected net cash inflows related to the asset over its remaining estimated useful life. If these reviews determine that goodwill or other intangible assets are impaired, the value of the goodwill or the other intangible asset is written down through a charge to other expenses in our consolidated statement of income.

The following table presents changes in the carrying amount of goodwill during the periods indicated:



(In millions)	Investment Servicing			Investment Management			Total
Goodwill:
Ending balance December 31, 2015	$	5,641		$	30		$	5,671
Acquisitions⁽¹⁾	—			236			236
Divestitures and other reductions	(11		)	—			(11		)
Foreign currency translation	(80		)	(2		)	(82		)
Ending balance December 31, 2016	$	5,550		$	264		$	5,814
Acquisitions	17			—			17
Divestitures and other reductions	(9		)	—			(9		)
Foreign currency translation	194			6			200
Ending balance December 31, 2017	$	5,752		$	270		$	6,022

⁽¹⁾ Investment Management includes our acquisition of the GEAM business on July 1, 2016, which is described in Note 1.

The following table presents changes in the net carrying amount of other intangible assets during the periods indicated:



(In millions)	Investment Servicing			Investment Management			Total
Other intangible assets:
Ending balance December 31, 2015	$	1,753		$	15		$	1,768
Acquisitions⁽¹⁾	—			217			217
Divestitures	(8		)	—			(8		)
Amortization	(186		)	(21		)	(207		)
Foreign currency translation and other, net	(20		)	—			(20		)
Ending balance December 31, 2016	$	1,539		$	211		$	1,750
Acquisitions	16			—			16
Divestitures	(11		)	—			(11		)
Amortization	(183		)	(31		)	(214		)
Foreign currency translation and other, net	71			1			72
Ending balance December 31, 2017	$	1,432		$	181		$	1,613

⁽¹⁾Investment Management includes our acquisition of the GEAM business on July 1, 2016, which is described in Note 1.

The following table presents the gross carrying amount, accumulated amortization and net carrying amount of other intangible assets by type as of the dates indicated:



	December 31, 2017							December 31, 2016
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets:
Client relationships	$	2,669	$	(1,470	)	$	1,199	$	2,620	$	(1,306	)	$	1,314
Core deposits	686		(320		)	366		661		(277		)	384
Other	142		(94		)	48		132		(80		)	52
Total	$	3,497	$	(1,884	)	$	1,613	$	3,413	$	(1,663	)	$	1,750

Amortization expense related to other intangible assets was $214 million, $207 million and $197 million in 2017, 2016 and 2015, respectively.

Expected future amortization expense for other intangible assets recorded as of December 31, 2017 is as follows:



(In millions)	Future Amortization
Years Ending December 31,	Future Amortization
2018	$	191
2019	174
2020	171
2021	166
2022	165

- 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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