XML 28 R16.htm IDEA: XBRL DOCUMENT v3.23.3
Goodwill and Other Intangibles
9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles Goodwill and Other Intangibles
The Company is required to assess goodwill and any indefinite-lived intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The Company performs the annual impairment assessment for each of its reporting units during the third quarter of each year. The reporting unit level is defined as the same level as the Company's operating segments. In accordance with applicable accounting guidance, a company can assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. Alternatively, the Company may elect to proceed directly to the quantitative goodwill impairment test.
In 2023, the Company performed a quantitative goodwill impairment assessment. Fair values for the reporting units were estimated using both an income and market valuation approach. The carrying values were based on balances at June 30, 2023 and included directly identified assets and liabilities, as well as an allocation of those assets and liabilities not recorded at the reporting unit level. The Company concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded the carrying value.
Other intangible assets that are not deemed to have an indefinite life are amortized over their estimated lives and assessed for impairment upon the occurrence of certain triggering events in accordance with applicable accounting literature. Based on its assessment, the Company concluded that other intangible assets were not impaired. The Company had no indefinite lived intangible assets at September 30, 2023 and December 31, 2022.
Changes in the carrying amount of goodwill are as follows:
(In millions)20232022
Balance as of January 1,$16,251 $16,317 
Goodwill acquired480 139 
Other adjustments (a)
(76)(880)
Balance at September 30,
$16,655 $15,576 
(a) Primarily reflects the impact of foreign exchange.
The goodwill arising from acquisitions in 2023 and 2022 consists largely of the synergies and economies of scale expected from combining the operations of the Company and the acquired entities and the trained and assembled workforce acquired.
The goodwill acquired in 2023 included approximately $234 million and $12 million in the Risk and Insurance Services and Consulting segments, respectively, which is deductible for tax purposes.
Goodwill allocable to the Company’s reportable segments at September 30, 2023, is $12.7 billion for Risk and Insurance Services and $4.0 billion for Consulting.
The gross cost and accumulated amortization of other identified intangible assets at September 30, 2023 and December 31, 2022 are as follows:
September 30, 2023December 31, 2022
(In millions)Gross
Cost
Accumulated
Amortization
Net
Carrying
Amount
Gross
Cost
Accumulated
Amortization
Net
Carrying
Amount
Client relationships$4,133 $1,683 $2,450 $3,993 $1,508 $2,485 
Other (a)
373 325 48 360 308 52 
Other intangible assets$4,506 $2,008 $2,498 $4,353 $1,816 $2,537 
(a) Primarily reflects non-compete agreements, trade names and developed technology.
Aggregate amortization expense for the three and nine months ended September 30, 2023, was $85 million and $257 million, respectively, compared to $84 million and $258 million, respectively, for the corresponding periods in the prior year. The estimated future aggregate amortization expense is as follows:
For the Years Ending December 31,
(In millions)
Estimated Expense
2023 (excludes amortization through September 30, 2023)
$90 
2024320 
2025286 
2026266 
2027262 
Subsequent years1,274 
 Total future amortization$2,498