Goodwill and intangible assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Goodwill and intangible assets

Goodwill

The tables below provide a breakdown of goodwill by business.

Goodwill by business (in millions)	Investment Services			Investment and Wealth Management			Other			Consolidated
Balance at Dec. 31, 2019	$	8,332		$	9,007		$	47		$	17,386
Foreign currency translation	(24		)	(109		)	—			(133		)
Other (a)	47			—			(47		)	—
Balance at June 30, 2020	$	8,355		$	8,898		$	—		$	17,253

(a) Reflects the transfer of goodwill associated with the Capital Markets business.

Goodwill by business (in millions)	Investment Services			Investment and Wealth Management			Other		Consolidated
Balance at Dec. 31, 2018	$	8,333		$	8,970		$	47	$	17,350
Foreign currency translation	(6		)	(7		)	—		(13		)
Balance at June 30, 2019	$	8,327		$	8,963		$	47	$	17,337

Intangible assets

The tables below provide a breakdown of intangible assets by business.

Intangible assets – net carrying amount by business (in millions)	Investment Services			Investment and Wealth Management			Other		Consolidated
Balance at Dec. 31, 2019	$	678		$	1,580		$	849	$	3,107
Amortization	(36		)	(16		)	—		(52		)
Foreign currency translation	—			(10		)	—		(10		)
Balance at June 30, 2020	$	642		$	1,554		$	849	$	3,045

Intangible assets – net carrying amount by business (in millions)	Investment Services			Investment and Wealth Management			Other		Consolidated
Balance at Dec. 31, 2018	$	758		$	1,613		$	849	$	3,220
Amortization	(41		)	(18		)	—		(59		)
Foreign currency translation	—			(1		)	—		(1		)
Balance at June 30, 2019	$	717		$	1,594		$	849	$	3,160

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

Intangible assets	June 30, 2020								Dec. 31, 2019
(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	$	1,514	$	(1,244	)	$	270	10 years	$	1,520	$	(1,214	)	$	306
Customer relationships—Investment and Wealth Management	709		(554		)	155		10 years	712		(544		)	168
Other	64		(19		)	45		14 years	64		(16		)	48
Total subject to amortization	2,287		(1,817		)	470		10 years	2,296		(1,774		)	522
Not subject to amortization: (b)
Tradenames	1,291		N/A			1,291		N/A	1,293		N/A			1,293
Customer relationships	1,284		N/A			1,284		N/A	1,292		N/A			1,292
Total not subject to amortization	2,575		N/A			2,575		N/A	2,585		N/A			2,585
Total intangible assets	$	4,862	$	(1,817	)	$	3,045	N/A	$	4,881	$	(1,774	)	$	3,107

(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 six reporting units for which goodwill impairment testing is performed on an annual basis. The Investment Services segment is comprised of four reporting units and the Investment and Wealth Management segment is comprised of two reporting units. As a result of the annual goodwill impairment test of the six reporting units conducted in the second quarter of 2020, no goodwill impairment was recognized.