Goodwill and intangible assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The tables below provide a breakdown of goodwill by business segment.


Goodwill by business segment (in millions)	Securities Services		Market and Wealth Services		Investment and Wealth Management		Consolidated
Balance at Dec. 31, 2021	$	7,062	$	1,435	$	9,015	$	17,512

Foreign currency translation	(87)		(10)		(144)		(241)
Balance at June 30, 2022	$	6,975	$	1,425	$	8,871	$	17,271


Goodwill by business segment (in millions)	Securities Services		Market and Wealth Services		Investment and Wealth Management		Consolidated
Balance at Dec. 31, 2020	$	7,033	$	1,423	$	9,040	$	17,496
Dispositions	—		—		(5)		(5)
Foreign currency translation	(22)		1		17		(4)

Balance at June 30, 2021	$	7,011	$	1,424	$	9,052	$	17,487

Intangible assets

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


Intangible assets – net carrying amount by business segment (in millions)	Securities Services		Market and Wealth Services		Investment and Wealth Management		Other		Consolidated
Balance at Dec. 31, 2021	$	230	$	392	$	1,520	$	849	$	2,991

Amortization	(17)		(4)		(13)		—		(34)
Foreign currency translation	(6)		—		(17)		—		(23)
Balance at June 30, 2022	$	207	$	388	$	1,490	$	849	$	2,934


Intangible assets – net carrying amount by business segment (in millions)	Securities Services		Market and Wealth Services		Investment and Wealth Management		Other		Consolidated
Balance at Dec. 31, 2020	$	194	$	414	$	1,555	$	849	$	3,012
Disposition	—		—		(6)		—		(6)
Amortization	(15)		(14)		(15)		—		(44)
Foreign currency translation	—		—		2		—		2
Balance at June 30, 2021	$	179	$	400	$	1,536	$	849	$	2,964

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


Intangible assets	June 30, 2022							Dec. 31, 2021
(dollars 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—Securities Services	$	739	$	(532)	$	207	11 years	$	747	$	(518)	$	229
Customer contracts—Market and Wealth Services	314		(297)		17		4 years	378		(356)		22
Customer relationships—Investment and Wealth Management	553		(451)		102		9 years	568		(456)		112
Other	47		(11)		36		13 years	47		(8)		39
Total subject to amortization	1,653		(1,291)		362		10 years	1,740		(1,338)		402
Not subject to amortization: (b)
Tradename	1,290		N/A		1,290		N/A	1,294		N/A		1,294
Customer relationships	1,282		N/A		1,282		N/A	1,295		N/A		1,295
Total not subject to amortization	2,572		N/A		2,572		N/A	2,589		N/A		2,589
Total intangible assets	$	4,225	$	(1,291)	$	2,934	N/A	$	4,329	$	(1,338)	$	2,991

(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)
2022		$	67
2023		57
2024		50
2025		43
2026		34

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 business segments include six reporting units for which goodwill impairment testing is performed on an annual basis. As a result of the annual goodwill impairment test of the six reporting units conducted in the second quarter of 2022, no goodwill impairment was recognized.