XML 111 R14.htm IDEA: XBRL DOCUMENT

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets

8. Goodwill and Other Intangible Assets

Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. For the years ended December 31, 2011, 2010 and 2009, the tests did not indicate impairment.

The changes in the carrying amount of goodwill reported in the Company's main operating segments were as follows:

	Advice & Wealth Management			Asset Management			Annuities		Protection		Consolidated


	(in millions)
Balance at January 1, 2010	$	257		$	739		$	46	$	45	$	1,087
Acquisitions		—			97			—		—		97
Foreign currency translation		—			(11	)		—		—		(11	)
Purchase price adjustments		(2	)		(10	)		—		—		(12	)

Balance at December 31, 2010		255			815			46		45		1,161
Acquisitions		—			6			—		—		6
Foreign currency translation		—			(2	)		—		—		(2	)
Purchase price adjustments		—			(1	)		—		—		(1	)

Balance at December 31, 2011	$	255		$	818		$	46	$	45	$	1,164

On April 30, 2010, the Company acquired the long-term asset management business of Columbia Management from Bank of America. The acquisition has enhanced the scale and performance of the Company's retail mutual fund and institutional asset management businesses. The Company recorded the assets and liabilities acquired at fair value and allocated the remaining costs to goodwill and intangible assets.

As of both December 31, 2011 and 2010, the carrying amount of indefinite-lived intangible assets included $630 million of investment management contracts and $67 million of trade names. Identifiable intangible assets with indefinite useful lives acquired during the year ended December 31, 2010 included $615 million of investment management contracts and $57 million of trade names.

Definite-lived intangible assets consisted of the following:

	December 31,

	2011							2010

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount

	(in millions)
Customer relationships	$	145	$	(69	)	$	76	$	150	$	(38	)	$	112
Contracts		233		(122	)		111		233		(103	)		130
Other		150		(55	)		95		143		(60	)		83

Total	$	528	$	(246	)	$	282	$	526	$	(201	)	$	325

Definite-lived intangible assets acquired during the year ended December 31, 2011 were $2 million with a weighted average amortization period of 5 years. In 2011, the Company did not record any purchase price adjustments to definite-lived intangible assets. The increase (decrease) to the net carrying amount of definite-lived intangible assets due to changes in foreign currency exchange rates was nil, $(5) million and $13 million for the years ended December 31, 2011, 2010 and 2009, respectively. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2011, 2010 and 2009 was $45 million, $46 million and $32 million, respectively. In 2011, 2010 and 2009, the Company did not record any impairment charges on definite-lived intangible assets.

Estimated intangible amortization expense as of December 31, 2011 for the next five years is as follows:

	(in millions)


2012	$	46
2013		45
2014		40
2015		31
2016		27

- 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