Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill during 2018 and 2017 are shown in the table below.



(Dollars in millions)	2018		2017
Goodwill, beginning of year	$	3,301	$	3,225
Net change from transferred subsidiaries ⁽¹⁾	—		76
Goodwill, end of year	$	3,301	$	3,301


(1)	For additional information on transferred subsidiaries, see Note 21 Related Party Transactions.

For impairment testing, goodwill was assigned to the following operating segments at December 31, 2018 and 2017:



(Dollars in millions)	2018		2017
Regional Bank	$	2,134	$	2,134
U.S. Wholesale & Investment Banking	840		840
Transaction Banking	251		251
MUFG Fund Services	76		76
Goodwill, end of year	$	3,301	$	3,301

The Company reviews its goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The annual goodwill impairment test was performed as of April 1, 2018 and 2017. Based on these tests, we concluded that goodwill allocated to our reporting units was not impaired at December 31, 2018 or 2017. Fair values of the Company's reporting units exceeded their carrying amounts and did not generally represent a significant risk of goodwill impairment based on current projections and valuations.

Intangible Assets

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2018 and 2017.



	December 31, 2018							December 31, 2017
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangibles	$	565	$	(537	)	$	28	$	565	$	(530	)	$	35
Trade names	111		(32		)	79		113		(29		)	84
Customer relationships	238		(63		)	175		238		(47		)	191
Other⁽¹⁾	18		(15		)	3		19		(16		)	3
Total intangible assets with a definite useful life	$	932	$	(647	)	$	285	$	935	$	(622	)	$	313


(1)	December 31, 2018 and December 31, 2017 exclude $159 million and $64 million, respectively, of mortgage servicing rights accounted for at fair value.

Total amortization expense for 2018, 2017 and 2016 was $26 million, $30 million and $28 million, respectively.

Estimated future amortization expense at December 31, 2018 is as follows:



(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Other		Total Identifiable Intangible Assets
Years ending December 31, :
2019	$	6	$	3	$	16	$	1	$	26
2020	5		3		16		1		25
2021	4		3		15		—		22
2022	4		3		15		—		22
2023	2		3		14		—		19
Thereafter	7		64		99		1		171
Total estimated amortization expense	$	28	$	79	$	175	$	3	$	285

- 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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