XML 81 R12.htm IDEA: XBRL DOCUMENT

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

The changes in the net carrying amount of goodwill by operating segment for the years ended December 31, 2011 and 2010, respectively, are as follows (in millions):

	Risk Solutions			HR Solutions			Total


Balance as of January 1, 2010		5,693			385			6,078
Goodwill related to Hewitt acquisition		—			2,715			2,715
Goodwill related to other acquisitions		50			9			59
Goodwill related to disposals		(2	)		—			(2	)
Foreign currency revaluation		(192	)		(11	)		(203	)

Balance as of December 31, 2010	$	5,549		$	3,098		$	8,647
Goodwill related to acquisitions		73			4			77
Goodwill related to disposals		(2	)		—			(2	)
Goodwill related to Hewitt acquisition		—			50			50
Goodwill related to other prior year acquisitions		—			1			1
Transfers		(83	)		83			—
Foreign currency revaluation		20			(23	)		(3	)

Balance as of December 31, 2011	$	5,557		$	3,213		$	8,770

In 2011, the Company finalized the Hewitt purchase price allocation, adjusting goodwill principally for the completion of third party valuation reports, the impact of changes in actual employee severance costs compared to original estimates and the resolution of certain tax matters.

Other intangible assets by asset class are as follows (in millions):

	As of December 31

	2011						2010
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Intangible assets with indefinite lives:
Trademarks	$	1,024	$	—	$	1,024	$	1,024	$	—	$	1,024
												—
Intangible assets with finite lives:												—
Trademarks		4		1		3		3		—		3
Customer related and contract based		2,608		615		1,993		2,605		344		2,261
Marketing, technology and other		606		350		256		606		283		323

	$	4,242	$	966	$	3,276	$	4,238	$	627	$	3,611

Amortization expense on intangible assets was $362 million, $154 million and $93 million in 2011, 2010 and 2009, respectively. The estimated future amortization for intangible assets, inclusive of the impact of the transfer of the Health and Benefits Consulting business from the HR Solutions segment to the Risk Solutions segment effective January 1, 2012, as of December 31, 2011 is as follows (in millions):

	HR Solutions		Risk Solutions		Total


2012	$	294	$	117	$	411
2013		275		109		384
2014		239		95		334
2015		208		81		289
2016		174		71		245
Thereafter		468		121		589

	$	1,658	$	594	$	2,252

- 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.

+ References+ Details