Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and intangible assets

Impairment testing

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

Goodwill

The table below provides a breakdown of goodwill by business.



Goodwill by business (in millions)	Investment Management		Investment Services		Other		Consolidated
Balance at Dec. 31, 2013	$	9,473	$	8,550	$	50	$	18,073
Foreign exchange translation	20		7		—		27
Balance at March 31, 2014	$	9,493	$	8,557	$	50	$	18,100



Goodwill by business (in millions)	Investment Management			(a)	Investment Services			Other			(a)	Consolidated
Balance at Dec. 31, 2012	$	9,440			$	8,517		$	118			$	18,075
Foreign exchange translation	(104		)		(51		)	(4		)		(159		)
Other (b)	4				—			—				4
Balance at March 31, 2013	$	9,340			$	8,466		$	114			$	17,920


(a)	Includes the reclassification of goodwill associated with the Newton Private Clients business from Investment Management to the Other segment.


(b)	Other changes in goodwill include purchase price adjustments and certain other reclassifications.

Intangible assets

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



Intangible assets – net carrying amount by business (in millions)	Investment Management			Investment Services			Other		Consolidated
Balance at Dec. 31, 2013	$	2,065		$	1,538		$	849	$	4,452
Amortization	(31		)	(44		)	—		(75		)
Foreign exchange translation	3			—			—		3
Balance at March 31, 2014	$	2,037		$	1,494		$	849	$	4,380



Intangible assets – net carrying amount by business (in millions)	Investment Management			(a)	Investment Services			Other			(a)	Consolidated
Balance at Dec. 31, 2012	$	2,220			$	1,732		$	857			$	4,809
Amortization	(39		)		(47		)	—				(86		)
Foreign exchange translation	(23		)		(3		)	(1		)		(27		)
Balance at March 31, 2013	$	2,158			$	1,682		$	856			$	4,696


(a)	Includes the reclassification of intangible assets associated with the Newton Private Clients business from Investment Management to the Other segment.

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



Intangible assets	March 31, 2014								Dec. 31, 2013
(in millions)	Gross carrying amount		Accumulated amortization			Net carrying amount		Remaining weighted- average amortization period	Net carrying amount
Subject to amortization:
Customer relationships—Investment Management	$	2,053	$	(1,488	)	$	565	11 years	$	594
Customer contracts—Investment Services	2,351		(1,244		)	1,107		11 years	1,150
Other	83		(63		)	20		4 years	16
Total subject to amortization	4,487		(2,795		)	1,692		11 years	1,760
Not subject to amortization: (a)
Trade name	1,363		N/A			1,363		N/A	1,369
Customer relationships	1,325		N/A			1,325		N/A	1,323
Total not subject to amortization	2,688		N/A			2,688		N/A	2,692
Total intangible assets	$	7,175	$	(2,795	)	$	4,380	N/A	$	4,452


(a)	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)
2014		$	304
2015		270
2016		242
2017		217
2018		182

- 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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