Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

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, 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, technology assets, which are amortized on a straight-line basis over periods ranging from three to ten 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. There were no impairments to goodwill or other intangible assets in 2019, 2018 and 2017.

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



(In millions)	Investment Servicing⁽¹⁾			Investment Management			Total
Goodwill:
Ending balance December 31, 2017	$	5,752		$	270		$	6,022
Acquisitions⁽¹⁾	1,512			—			1,512
Foreign currency translation	(84		)	(4		)	(88		)
Ending balance December 31, 2018	7,180			266			7,446
Acquisitions⁽²⁾	122			—			122
Foreign currency translation	(13		)	1			(12		)
Ending balance December 31, 2019	$	7,289		$	267		$	7,556

⁽¹⁾ Investment Servicing includes our acquisition of CRD.

⁽²⁾We have completed the purchase price accounting for the CRD acquisition as of March 31, 2019. Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments in the year ended December 31, 2019, resulting in an increase in the goodwill of $113 million and a decrease of $93 million in other intangible assets.

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



(In millions)	Investment Servicing⁽¹⁾			Investment Management			Total
Other intangible assets:
Ending balance December 31, 2017	$	1,432		$	181		$	1,613
Acquisitions⁽¹⁾	1,007			—			1,007
Amortization	(196		)	(30		)	(226		)
Foreign currency translation	(25		)	—			(25		)
Ending balance December 31, 2018	$	2,218		$	151		$	2,369
Acquisitions⁽²⁾	(93		)	—			(93		)
Amortization	(207		)	(29		)	(236		)
Foreign currency translation	(10		)	—			(10		)
Ending balance December 31, 2019	$	1,908		$	122		$	2,030

⁽¹⁾ Investment Servicing includes our acquisition of CRD.

⁽²⁾ We have completed the purchase price accounting for the CRD acquisition as of March 31, 2019. Upon completion of valuation procedures related to the acquired assets and assumed liabilities, primarily the identifiable intangible assets, we recorded measurement period adjustments in the year ended December 31, 2019, resulting in a decrease in the fair value of other intangible assets of $93 million, with a corresponding increase to goodwill.

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, 2019	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets:
Client relationships	$	3,104	$	(1,718	)	$	1,386
Technology	403		(87		)	316
Core deposits	673		(381		)	292
Other	100		(64		)	36
Total	$	4,280	$	(2,250	)	$	2,030

December 31, 2018	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(In millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Other intangible assets:
Client relationships	$	3,262	$	(1,605	)	$	1,657
Technology	389		(49		)	340
Core deposits	676		(350		)	326
Other	103		(57		)	46
Total	$	4,430	$	(2,061	)	$	2,369

Amortization expense related to other intangible assets was $236 million, $226 million and $214 million in 2019, 2018 and 2017, respectively.

Expected future amortization expense for other intangible assets recorded as of December 31, 2019 is as follows:



(In millions)	Future Amortization
Years Ended December 31,
2020	$	240
2021	230
2022	227
2023	226
2024	220