Goodwill and Other Intangible Assets
Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. There were no impairments for the years ended December 31, 2013, 2012 and 2011.
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, 2012 | $ | 255 |
| | $ | 818 |
| | $ | 46 |
| | $ | 45 |
| | $ | 1,164 |
|
Foreign currency translation | — |
| | 14 |
| | — |
| | — |
| | 14 |
|
Purchase price adjustments | (2 | ) | | (2 | ) | | — |
| | — |
| | (4 | ) |
Balance at December 31, 2012 | 253 |
| | 830 |
| | 46 |
| | 45 |
| | 1,174 |
|
Foreign currency translation | — |
| | 5 |
| | — |
| | — |
| | 5 |
|
Purchase price adjustments | (1 | ) | | (14 | ) | | — |
| | — |
| | (15 | ) |
Balance at December 31, 2013 | $ | 252 |
| | $ | 821 |
| | $ | 46 |
| | $ | 45 |
| | $ | 1,164 |
|
As of December 31, 2013 and 2012, the carrying amount of indefinite-lived intangible assets included $631 million and $630 million, respectively of investment management contracts. As of both December 31, 2013 and 2012, the carrying amount of indefinite-lived intangible assets included $67 million of trade names.
Definite-lived intangible assets consisted of the following:
|
| | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | December 31, 2012 |
| Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| (in millions) |
Customer relationships | $ | 152 |
| | $ | (87 | ) | | $ | 65 |
| | $ | 152 |
| | $ | (72 | ) | | $ | 80 |
|
Contracts | 240 |
| | (167 | ) | | 73 |
| | 238 |
| | (146 | ) | | 92 |
|
Other | 155 |
| | (94 | ) | | 61 |
| | 151 |
| | (82 | ) | | 69 |
|
Total | $ | 547 |
| | $ | (348 | ) | | $ | 199 |
| | $ | 541 |
| | $ | (300 | ) | | $ | 241 |
|
Definite-lived intangible assets acquired during the year ended December 31, 2013 were $2 million with a weighted average amortization period of 5 years. The increase to the net carrying amount of definite-lived intangible assets due to changes in foreign currency exchange rates was $1 million, $4 million and nil for the years ended December 31, 2013, 2012 and 2011, respectively. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2013, 2012 and 2011 was $45 million, $47 million and $45 million, respectively. In 2013, 2012 and 2011, the Company did not record any impairment charges on definite-lived intangible assets.
Estimated intangible amortization expense as of December 31, 2013 for the next five years is as follows:
|
| | | |
| (in millions) |
2014 | $ | 39 |
|
2015 | 31 |
|
2016 | 25 |
|
2017 | 21 |
|
2018 | 19 |
|
