XML 132 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and intangible assets
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets

Goodwill

The table below provides a breakdown of goodwill by business.

Goodwill by business
(in millions)
Investment
Services

Investment
Management

Other

Consolidated

Balance at Dec. 31, 2017
$
8,389

$
9,128

$
47

$
17,564

Dispositions

(65
)

(65
)
Foreign currency translation
(56
)
(93
)

(149
)
Balance at Dec. 31, 2018
$
8,333

$
8,970

$
47

$
17,350

Foreign currency translation
(1
)
37


36

Balance at Dec. 31, 2019
$
8,332

$
9,007

$
47

$
17,386




Total goodwill increased in 2019 compared with 2018 reflecting the impact of foreign currency translation on non-U.S. dollar denominated goodwill.

Intangible assets

The table below provides a breakdown of intangible assets by business.

Intangible assets – net carrying amount by business
(in millions)
Investment
Services

Investment
Management

Other

Consolidated

Balance at Dec. 31, 2017
$
888

$
1,674

$
849

$
3,411

Amortization
(129
)
(51
)

(180
)
Foreign currency translation
(1
)
(10
)

(11
)
Balance at Dec. 31, 2018
$
758

$
1,613

$
849

$
3,220

Amortization
(80
)
(37
)

(117
)
Foreign currency translation

4


4

Balance at Dec. 31, 2019
$
678

$
1,580

$
849

$
3,107




Intangible assets decreased in 2019 compared with 2018 primarily reflecting amortization.

The table below provides a breakdown of intangible assets by type.

Intangible assets
Dec. 31, 2019
 
Dec. 31, 2018
(in millions)
Gross
carrying
amount

Accumulated
amortization

Net
carrying
amount

Remaining
weighted-
average
amortization
period
 
Gross
carrying
amount

Accumulated
amortization

Net
carrying
amount

Subject to amortization: (a)
 
 
 
 
 
 
 
 
Customer contracts—Investment Services
$
1,520

$
(1,214
)
$
306

10 years
 
$
1,572

$
(1,186
)
$
386

Customer relationships—Investment Management
712

(544
)
168

11 years
 
899

(699
)
200

Other
64

(16
)
48

14 years
 
26

(12
)
14

Total subject to amortization
2,296

(1,774
)
522

10 years
 
2,497

(1,897
)
600

Not subject to amortization: (b)
 
 
 
 
 
 
 
 
Tradenames
1,293

N/A

1,293

N/A
 
1,332

N/A

1,332

Customer relationships
1,292

N/A

1,292

N/A
 
1,288

N/A

1,288

Total not subject to amortization
2,585

N/A

2,585

N/A
 
2,620

N/A

2,620

Total intangible assets
$
4,881

$
(1,774
)
$
3,107

N/A
 
$
5,117

$
(1,897
)
$
3,220


(a)
Excludes fully amortized intangible assets.
(b)
Intangible assets not subject to amortization have an indefinite life.


Estimated annual amortization expense for current intangibles for the next five years is as follows:

For the year ended
Dec. 31,
Estimated amortization expense
(in millions)
 
2020
 
$
104

2021
 
81

2022
 
63

2023
 
52

2024
 
45




Impairment testing

The goodwill impairment test is performed at least annually at the reporting unit level. Intangible assets not subject to amortization are tested for impairment annually or more often if events or circumstances indicate they may be impaired.

BNY Mellon’s three business segments include seven reporting units for which goodwill impairment testing is performed on an annual basis. The Investment Services segment is comprised of four reporting units; the Investment Management segment is comprised of two reporting units and one reporting unit is included in the Other segment. As a result of the annual goodwill impairment test of the seven reporting units conducted in the second quarter of 2019, no goodwill impairment was recognized.