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Other Assets
 12 Months Ended
Dec. 31, 2018
Disclosure Text Block Abstract  
Other Assets

NOTE 7

Other Assets

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

(Millions)  2018  2017
Goodwill  $3,072  $3,009
Deferred tax assets, net(a)  1,480  1,637
Prepaid expenses(b)  1,458  684
Tax credit investments1,0431,023
Derivative assets(a)  396  124
Restricted cash(c)363  336
Other intangible assets, at amortized cost(b)  275  899
Other  2,384  2,034
Total  $10,471  $9,746

  • Refer to Notes 14 and 21 for a discussion of derivative assets and deferred tax assets, net. For 2018 and 2017, $174 million and $98 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements and cash collateral.
  • As of September 30, 2018, $796 million of net assets previously included within Other intangible assets were reclassified to Prepaid expenses.
  • 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 our reportable operating segments were as follows:

(Millions)GCSGGCSGMNSTotal
Balance as of December 31, 2016  $590$1,711  $626  $2,927
Acquisitions  19―  ―  19
Dispositions  ――  ―  ―
Other(a)  2813  22  63
Balance as of December 31, 2017  $637$1,724  $648  $3,009
Acquisitions90――90
Dispositions――――
Other(a)(20)(6)(1)(27)
Balance as of December 31, 2018  $707$1,718  $647  $3,072

Primarily includes foreign currency translation.

Accumulated impairment losses were $221 million and $220 million as of December 31, 2018 and 2017, respectively.

Other Intangible Assets

Intangible assets are amortized on a straight-line basis over their estimated useful lives of 1 to 22 years. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value.

The gross carrying amount for other intangible assets as of December 31, 2018 and 2017 was $702 million and $2,105 million, respectively, with accumulated amortization of $427 million and $1,206 million, respectively. As of September 30, 2018, certain assets previously classified within Other intangible assets were reclassified to Prepaid expenses.

Amortization expense for the years ended December 31, 2018, 2017 and 2016 was $212 million, $207 million and $194 million, respectively.

TAX CREDIT INVESTMENTS

We account for our tax credit investments, including Qualified Affordable Housing (QAH) investments, using the equity method of accounting. As of December 31, 2018 and 2017, we had $1,043 million and $1,023 million in tax credit investments, respectively, included in Other assets on the Consolidated Balance Sheets, of which $1,006 million and $1,018 million, respectively, specifically related to QAH investments. Included in QAH investments as of December 31, 2018 and 2017, we had $936 million and $933 million, respectively, specifically related to investments in unconsolidated VIEs for which we do not have a controlling financial interest.

As of December 31, 2018, we had committed to provide funding related to certain of these QAH investments, which is expected to be paid between 2019 and 2033, resulting in a $237 million unfunded commitment reported in Other liabilities, of which $228 million specifically related to unconsolidated VIEs.

In addition, we had contractual off-balance sheet obligations, which were not deemed probable of being drawn, to provide additional funding up to $59 million for these QAH investments as of December 31, 2018, fully related to unconsolidated VIEs.

During the years ended December 31, 2018 and 2017, we recognized equity method losses related to our QAH investments of $126 million and $112 million, respectively, which were recognized in Other, net expenses; and associated tax credits of $97 million and $74 million, respectively, recognized in Income tax provision.