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.