PRINCIPAL FINANCIAL GROUP INC | 2013 | FY | 3


3. Goodwill and Other Intangible Assets

Goodwill

        The changes in the carrying amount of goodwill reported in our segments were as follows:

 
  Retirement
and Investor
Services
  Principal
Global
Investors
  Principal
International
  U.S.
Insurance
Solutions
  Corporate   Consolidated  
 
  (in millions)
 

Balance at January 1, 2012

  $ 72.6   $ 237.0   $ 127.8   $ 44.9   $   $ 482.3  

Goodwill from acquisitions

            63.3     10.5         73.8  

Foreign currency

        2.9     (11.6 )           (8.7 )

Other

    (4.0 )                   (4.0 )
                           

Balance at December 31, 2012

    68.6     239.9     179.5     55.4         543.4  

Goodwill from acquisitions

            631.8     2.6         634.4  

Goodwill disposed

                (1.4 )       (1.4 )

Foreign currency

        1.2     (81.3 )           (80.1 )

Other

    4.0                     4.0  
                           

Balance at December 31, 2013

  $ 72.6   $ 241.1   $ 730.0   $ 56.6   $   $ 1,100.3  
                           
                           

Finite Lived Intangible Assets

        Amortized intangible assets that continue to be subject to amortization over a weighted average remaining expected life of 14 years were as follows:

 
  December 31,  
 
  2013   2012  
 
  Gross
carrying
value
  Accumulated
amortization
  Net
carrying
value
  Gross
carrying
value
  Accumulated
amortization
  Net
carrying
value
 
 
  (in millions)
 

Present value of future profits

  $ 13.5   $ 6.7   $ 6.8   $ 13.5   $ 6.1   $ 7.4  

Other finite lived intangible assets

    858.8     262.9     595.9     436.1     224.1     212.0  
                           

Total amortized intangible assets

  $ 872.3   $ 269.6   $ 602.7   $ 449.6   $ 230.2   $ 219.4  
                           
                           

        During 2013 and 2012, we fully amortized other finite lived intangible assets of $5.2 million and $5.0 million, respectively. We had no fully amortized other finite lived intangible assets in 2011.

        Other Finite Lived Intangible Assets.    The amortization expense for intangible assets with finite useful lives was $48.0 million, $22.7 million and $20.1 million for 2013, 2012 and 2011, respectively. At December 31, 2013, the estimated amortization expense for the next five years is as follows (in millions):

Year ending December 31:

       

2014

  $ 52.3  

2015

    50.9  

2016

    50.1  

2017

    49.2  

2018

    48.0  

Indefinite Lived Intangible Assets

        The net carrying amount of unamortized indefinite lived intangible assets was $856.3 million and $695.3 million as of December 31, 2013 and 2012, respectively. As of both December 31, 2013 and 2012, $608.0 million relates to investment management contracts associated with our acquisition of WM Advisors, Inc. in 2006. In addition, as of December 31, 2013, $185.2 million relates to trade name intangibles associated with our acquisition of Cuprum in 2013.


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