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Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
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.

BNY Mellon’s three business segments include seven reporting units for which goodwill impairment testing is performed on an annual basis. In the second quarter of 2014, BNY Mellon conducted an annual goodwill impairment test on all seven reporting units. The estimated fair value of the seven reporting units exceeded the carrying value and no goodwill impairment was recognized.
Goodwill

The tables below provide 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

Acquisitions/dispositions

 
39

 

 
39

Foreign currency translation
67

 
17

 

 
84

Balance at June 30, 2014
$
9,540

 
$
8,606

 
$
50

 
$
18,196




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 currency translation
(120
)
 
(49
)
 
(4
)
 
(173
)
Other (b)
17

 

 

 
17

Balance at June 30, 2013
$
9,337

 
$
8,468

 
$
114

 
$
17,919

(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 tables 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
(62
)
 
(88
)
 

 
(150
)
Foreign currency translation
12

 

 

 
12

Balance at June 30, 2014
$
2,015

 
$
1,450

 
$
849

 
$
4,314




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

Disposition

 
(1
)
 

 
(1
)
Amortization
(77
)
 
(102
)
(b)

 
(179
)
Foreign currency translation
(24
)
 
(3
)
 

 
(27
)
Other (c)
(14
)
 

 

 
(14
)
Balance at June 30, 2013
$
2,105

 
$
1,626

 
$
857

 
$
4,588

(a)
Includes the reclassification of intangible assets associated with the Newton Private Clients business from Investment Management to the Other segment.
(b)
Includes an $8 million intangible asset impairment recorded in the second quarter of 2013.
(c)
Other changes in intangible assets include purchase price adjustments and certain other reclassifications.
The table below provides a breakdown of intangible assets by type.

Intangible assets
June 30, 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
$
2,069

$
(1,532
)
$
537

11 years
 
$
594

Customer contracts—Investment Services
2,347

(1,281
)
1,066

11 years
 
1,150

Other
84

(66
)
18

4 years
 
16

Total subject to amortization
4,500

(2,879
)
1,621

11 years
 
1,760

Not subject to amortization: (a)
 
 
 
 
 
 
Trade name
1,364

N/A

1,364

N/A
 
1,369

Customer relationships
1,329

N/A

1,329

N/A
 
1,323

Total not subject to amortization
2,693

N/A

2,693

N/A
 
2,692

Total intangible assets
$
7,193

$
(2,879
)
$
4,314

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
 
$
302

2015
 
271

2016
 
242

2017
 
218

2018
 
182