Other Assets

12 Months Ended

Dec. 31, 2017

NOTE 7

Other Assets

The following is a summary of Other assets as of December 31:

(Millions)	2017		2016
Goodwill	$	3,009	$	2,927
Deferred tax assets, net^(a)		1,647		2,336
Tax credit investments		1,023		824
Other intangible assets, at amortized cost		899		868
Prepaid expenses		684		696
Restricted cash^(b)		336		286
Derivative assets^(a)		124		555
Other		2,033		2,069
Total	$	9,755	$	10,561

Refer to Notes 14 and 21 for a discussion of derivative assets and deferred tax assets, net, as of December 31, 2017 and 2016. For 2017 and 2016, $98 million and $81 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements and cash collateral.
Includes restricted cash available to settle obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs.

Goodwill

The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows:

(Millions)	USCS		ICNS		GCS		GMS		Corporate & Other		Total
Balance as of January 1, 2016	$	122	$	620	$	1,715	$	291	$	1	$	2,749
Acquisitions		―		―		―		201		―		201
Dispositions		―		―		―		―		―		―
Other^(a)		―		(16)		(3)		(3)		(1)		(23)
Balance as of December 31, 2016	$	122	$	604	$	1,712	$	489	$	―	$	2,927
Acquisitions		4		15		―		―		―		19
Dispositions		―		―		―		―		―		―
Other^(a)		1		41		12		9		―		63
Balance as of December 31, 2017	$	127	$	660	$	1,724	$	498	$	―	$	3,009

Primarily includes foreign currency translation.

Accumulated impairment losses were $220 million as of both December 31, 2017 and 2016.

Other Intangible Assets

The components of other intangible assets were as follows:

		2017						2016
(Millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	1,863	$	(1,073)	$	790	$	1,625	$	(895)	$	730
Other		242		(133)		109		260		(122)		138
Total	$	2,105	$	(1,206)	$	899	$	1,885	$	(1,017)	$	868

Amortization expense for the years ended December 31, 2017, 2016 and 2015 was $207 million, $194 million and $183 million, respectively. Intangible assets acquired in 2017 and 2016 are being amortized, on average, over 6 and 7 years, respectively.

Estimated amortization expense for other intangible assets over the next five years is as follows:

(Millions)			2018			2019			2020			2021			2022
Estimated amortization expense		$	221		$	183		$	156		$	126		$	98

TAX CREDIT INVESTMENTS

The Company accounts for its tax credit investments, including Qualified Affordable Housing (QAH) investments, using the equity method of accounting. The Company had $1,023 million and $824 million in tax credit investments as of December 31, 2017 and 2016, respectively, included in Other assets on the Consolidated Balance Sheets, of which $1,018 million and $798 million, respectively, specifically related to QAH investments. Included in QAH investments as of December 31, 2017 and 2016, the Company had $933 million and $701 million, respectively, specifically related to investments in unconsolidated VIEs for which the Company does not have a controlling financial interest.

As of December 31, 2017, the Company had committed to provide funding related to certain of these QAH investments, which is expected to be paid between 2018 and 2032, resulting in a $373 million unfunded commitment reported in Other liabilities, of which $352 million specifically related to unconsolidated VIEs.

In addition, the Company had contractual off-balance sheet obligations, which were not deemed probable of being drawn, to provide additional funding up to $66 million for these QAH investments as of December 31, 2017, fully related to unconsolidated VIEs.

During the years ended December 31, 2017 and 2016, the Company recognized equity method losses related to its QAH investments of $112 million and $43 million, respectively, which were recognized in Other, net expenses; and associated tax credits of $74 million and $63 million, respectively, recognized in Income tax provision.