PRUDENTIAL FINANCIAL INC | 2013 | FY | 3

9. GOODWILL AND OTHER INTANGIBLES

 

The changes in the book value of goodwill by area are as follows:

 

 

    Asset Management Retirement International Insurance Total
    (in millions)
Balance at December 31, 2010:            
 Gross Goodwill $239 $444 $24 $707
 Accumulated Impairment Losses  0  0  0  0
 Net Goodwill  239  444  24  707
               
 2011 Activity:            
  Acquisitions  0  0  184  184
  Other(1)  (1)  0  (2)  (3)
               
Balance at December 31, 2011:            
 Gross Goodwill  238  444  206  888
 Accumulated Impairment Losses  0  0  0  0
 Net Goodwill  238  444  206  888
               
 2012 Activity:            
  Other(1)  0  0  (15)  (15)
               
Balance at December 31, 2012:            
 Gross Goodwill  238  444  191  873
 Accumulated Impairment Losses  0  0  0  0
 Net Goodwill  238  444  191  873
               
 2013 Activity:            
  Other(1)  2  0  (36)  (34)
               
Balance at December 31, 2013:            
 Gross Goodwill  240  444  155  839
 Accumulated Impairment Losses  0  0  0  0
 Net Goodwill $240 $444 $155 $839

       

(1) Other represents foreign currency translation and purchase price adjustments.

The Company tests goodwill for impairment annually as of December 31 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2.

 

The Company performed goodwill impairment testing for all reporting units that had goodwill at December 31, 2013 and 2012, and no impairments were recorded.

 

Other Intangibles

       

Other Intangible balances at December 31, are as follows:

    2013 2012
    Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount
     (in millions)
Subject to amortization:                  
 Mortgage servicing rights $420 $(231) $189 $358 $(192) $166
 Customer relationships  285  (188)  97  287  (173)  114
 Other  43  (29)  14  51  (24)  27
Not subject to amortization  N/A  N/A  3  N/A  N/A  4
  Total       $303       $311

The fair values of net mortgage servicing rights were $200 million and $170 million at December 31, 2013 and 2012, respectively. Amortization expense for other intangibles was $61 million, $56 million and $50 million for the years ending December 31, 2013, 2012 and 2011, respectively. Amortization expense for other intangibles is expected to be approximately $48 million in 2014, $45 million in 2015, $38 million in 2016, $31 million in 2017 and $26 million in 2018. The amortization expense amounts listed above for 2013, 2012 and 2011 do not include impairments recorded for mortgage servicing rights or other intangibles. See the non-recurring fair value measurements section of Note 20 for more information regarding these impairments.

us-gaap:GoodwillAndIntangibleAssetsDisclosureTextBlock