Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Other Intangible Assets

3. Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill reported in our segments were as follows:

	Retirement and Investor Services			Principal Global Investors		Principal International			U.S. Insurance Solutions			Corporate		Consolidated

	(in millions)
Balance at January 1, 2012	$	72.6		$	237.0	$	127.8		$	44.9		$	—	$	482.3
Goodwill from acquisitions		—			—		63.3			10.5			—		73.8
Foreign currency		—			2.9		(11.6	)		—			—		(8.7	)
Other		(4.0	)		—		—			—			—		(4.0	)


Balance at December 31, 2012		68.6			239.9		179.5			55.4			—		543.4
Goodwill from acquisitions		—			—		631.8			2.6			—		634.4
Goodwill disposed		—			—		—			(1.4	)		—		(1.4	)
Foreign currency		—			1.2		(81.3	)		—			—		(80.1	)
Other		4.0			—		—			—			—		4.0


Balance at December 31, 2013	$	72.6		$	241.1	$	730.0		$	56.6		$	—	$	1,100.3

Finite Lived Intangible Assets

Amortized intangible assets that continue to be subject to amortization over a weighted average remaining expected life of 14 years were as follows:

	December 31,

	2013						2012
	Gross carrying value		Accumulated amortization		Net carrying value		Gross carrying value		Accumulated amortization		Net carrying value
	(in millions)
Present value of future profits	$	13.5	$	6.7	$	6.8	$	13.5	$	6.1	$	7.4
Other finite lived intangible assets		858.8		262.9		595.9		436.1		224.1		212.0


Total amortized intangible assets	$	872.3	$	269.6	$	602.7	$	449.6	$	230.2	$	219.4

During 2013 and 2012, we fully amortized other finite lived intangible assets of $5.2 million and $5.0 million, respectively. We had no fully amortized other finite lived intangible assets in 2011.

Other Finite Lived Intangible Assets. The amortization expense for intangible assets with finite useful lives was $48.0 million, $22.7 million and $20.1 million for 2013, 2012 and 2011, respectively. At December 31, 2013, the estimated amortization expense for the next five years is as follows (in millions):


Year ending December 31:
2014	$	52.3
2015		50.9
2016		50.1
2017		49.2
2018		48.0

Indefinite Lived Intangible Assets

The net carrying amount of unamortized indefinite lived intangible assets was $856.3 million and $695.3 million as of December 31, 2013 and 2012, respectively. As of both December 31, 2013 and 2012, $608.0 million relates to investment management contracts associated with our acquisition of WM Advisors, Inc. in 2006. In addition, as of December 31, 2013, $185.2 million relates to trade name intangibles associated with our acquisition of Cuprum in 2013.

- 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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