Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

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 reviewed for impairment annually or more frequently if circumstances arise or events occur that indicate an impairment of the carrying amount may exist. Other intangible assets, which are subject to 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 undiscounted 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 2023, 2022 and 2021.

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, 2021	$	7,354	$	267	$	7,621
Acquisitions	3		—		3

Foreign currency translation	(125)		(4)		(129)
Ending balance December 31, 2022	$	7,232	$	263	$	7,495
Acquisitions(1)	44		—		44

Foreign currency translation	70		2		72
Ending balance December 31, 2023	$	7,346	$	265	$	7,611

(1) Investment Servicing includes the impact of the consolidation of one of our operations joint ventures in India.

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, 2021	$	1,746	$	70	$	1,816

Amortization	(217)		(21)		(238)
Foreign currency translation	(34)		—		(34)
Ending balance December 31, 2022	$	1,495	$	49	$	1,544
Amortization	(217)		(22)		(239)
Foreign currency translation	15		—		15
Ending balance December 31, 2023	$	1,293	$	27	$	1,320

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


December 31, 2023	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
(In millions)
Other intangible assets:
Client relationships	$	2,761	$	(1,808)	$	953
Technology	402		(216)		186
Core deposits	690		(516)		174
Other	85		(78)		7
Total	$	3,938	$	(2,618)	$	1,320

December 31, 2022	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
(In millions)
Other intangible assets:
Client relationships	$	2,728	$	(1,626)	$	1,102
Technology	402		(178)		224
Core deposits	683		(477)		206
Other	84		(72)		12
Total	$	3,897	$	(2,353)	$	1,544

Amortization expense related to other intangible assets was $239 million, $238 million and $245 million in 2023, 2022 and 2021, respectively.

Expected future amortization expense for other intangible assets recorded as of December 31, 2023 is as follows:


(In millions)	Future Amortization
Years Ended December 31,
2024	$	241
2025	215
2026	204
2027	170
2028	121