Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2015

Intangible Assets and Goodwill [Abstract]

8.Intangible Assets and Goodwill

Intangible assets and goodwill are detailed below:


	December 31, 2015							December 31, 2014
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Value		Amortization			Value		Value		Amortization			Value
Client relationships	$	274		$	144	$	130	$	274		$	116	$	158
Technology		89			47		42		89			37		52
Trade name		16			7		9		17			6		11
Other		-			-		-		7			1		6
Total intangible assets	$	379		$	198	$	181	$	387		$	160	$	227

Amortization expense for intangible assets was $45 million, $44 million, and $48 million in 2015, 2014, and 2013, respectively.

Estimated future annual amortization expense for intangible assets as of December 31, 2015, is as follows:


2016	$	37
2017		33
2018		31
2019		29
2020		23
Thereafter		28
Total intangible assets	$	181

The changes in the carrying amount of goodwill, as allocated to the Company’s reportable segments for purposes of testing goodwill for impairment going forward, are presented in the following table:


	Investor		Advisor
	Services		Services		Total
Balance at December 31, 2013	$	1,127	$	100	$	1,227
Goodwill acquired and other changes during the period		-		-		-
Balance at December 31, 2014		1,127		100		1,227
Goodwill acquired and other changes during the period (1)		(31)		31		-
Balance at December 31, 2015	$	1,096	$	131	$	1,227

(1)	During 2015, the Corporate Brokerage Retirement Services business was transferred from the Investor Services segment to the Advisor Services segment. Related goodwill amounts were transferred from the Investor Services segment to the Advisor Services segment.

In testing for potential impairment of goodwill on April 1, 2015, management performed an assessment of each of the Company’s reporting units. As a result of this assessment, management concluded that goodwill was not impaired. The Company did not recognize any goodwill impairment in 2015, 2014, or 2013.

- 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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