Goodwill and intangible assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

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, 2020	$	8,456	$	9,040	$	—	$	17,496
Dispositions	—		(5)		—		(5)
Foreign currency translation	(48)		(23)		—		(71)
Balance at Sept. 30, 2021	$	8,408	$	9,012	$	—	$	17,420


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	21		(50)		—		(29)
Other (a)	47		—		(47)		—
Balance at Sept. 30, 2020	$	8,400	$	8,957	$	—	$	17,357

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

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, 2020	$	608	$	1,555	$	849	$	3,012
Disposition	—		(6)		—		(6)
Amortization	(41)		(22)		—		(63)
Foreign currency translation	—		(2)		—		(2)
Balance at Sept. 30, 2021	$	567	$	1,525	$	849	$	2,941


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	(54)		(24)		—		(78)
Foreign currency translation	1		(4)		—		(3)
Balance at Sept. 30, 2020	$	625	$	1,552	$	849	$	3,026

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


Intangible assets	Sept. 30, 2021							Dec. 31, 2020
(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	$	1,059	$	(864)	$	195	9 years	$	1,435	$	(1,199)	$	236
Customer relationships—Investment and Wealth Management	609		(491)		118		9 years	705		(564)		141
Other	46		(7)		39		14 years	59		(15)		44
Total subject to amortization	1,714		(1,362)		352		10 years	2,199		(1,778)		421
Not subject to amortization: (b)
Tradename	1,294		N/A		1,294		N/A	1,295		N/A		1,295
Customer relationships	1,295		N/A		1,295		N/A	1,296		N/A		1,296
Total not subject to amortization	2,589		N/A		2,589		N/A	2,591		N/A		2,591
Total intangible assets	$	4,303	$	(1,362)	$	2,941	N/A	$	4,790	$	(1,778)	$	3,012

(a) Excludes fully amortized intangible assets.

(b) Intangible assets not subject to amortization have an indefinite life.

N/A – Not applicable.

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)
2021		$	81
2022		63
2023		53
2024		45
2025		38

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 2021, no goodwill impairment was recognized.