v3.8.0.1
Goodwill and intangible assets
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12 Months Ended |
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Goodwill and Intangible Assets Disclosure [Abstract] |
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Goodwill and intangible assets |
Goodwill and intangible assets
Goodwill
The table below provides a breakdown of goodwill by business.
| | | | | | | | | | | | | | | | | Goodwill by business (in millions) | Investment Management |
| | Investment Services |
| (a) | Other |
| (a) | Consolidated |
| | $ | 9,207 |
| | $ | 8,366 |
| | $ | 45 |
| | $ | 17,618 |
| Acquisition (dispositions) | 29 |
| | (2 | ) | | — |
| | 27 |
| Foreign currency translation | (238 | ) | | (91 | ) | | — |
| | (329 | ) | Other (b) | 2 |
| | (4 | ) | | 2 |
| | — |
| | $ | 9,000 |
| | $ | 8,269 |
| | $ | 47 |
| | $ | 17,316 |
| Foreign currency translation | 128 |
| | 120 |
| | — |
| | 248 |
| | $ | 9,128 |
| | $ | 8,389 |
| | $ | 47 |
| | $ | 17,564 |
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| | (a) | Includes the reclassification of goodwill associated with credit-related activities from the Other segment to Investment Services in 2016. |
| | (b) | Other changes in goodwill include purchase price adjustments and certain other reclassifications. |
Total goodwill increased in 2017 compared with 2016 reflecting the impact of foreign exchange translation on non-U.S. dollar denominated goodwill.
Intangible assets
The table below provides a breakdown of intangible assets by business.
| | | | | | | | | | | | | | | | | Intangible assets – net carrying amount by business (in millions) | Investment Management |
| | Investment Services |
| | Other |
| | Consolidated |
| | $ | 1,807 |
| | $ | 1,186 |
| | $ | 849 |
| | $ | 3,842 |
| Acquisitions | 30 |
| | 2 |
| | — |
| | 32 |
| Amortization (a) | (82 | ) | | (155 | ) | | — |
| | (237 | ) | Foreign currency translation | (38 | ) | | (1 | ) | | — |
| | (39 | ) | | $ | 1,717 |
| | $ | 1,032 |
| | $ | 849 |
| | $ | 3,598 |
| Amortization | (60 | ) | | (149 | ) | | — |
| | (209 | ) | Foreign currency translation | 17 |
| | 5 |
| | — |
| | 22 |
| | $ | 1,674 |
| | $ | 888 |
| | $ | 849 |
| | $ | 3,411 |
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| | (a) | Includes $6 million of impairment charges related to the write-down of intangible assets in the Investment Management business, to their respective fair values. |
Intangible assets decreased in 2017 compared with 2016 primarily reflecting amortization. Amortization of intangible assets was $209 million in 2017, $237 million in 2016 and $261 million in 2015. The table below provides a breakdown of intangible assets by type.
| | | | | | | | | | | | | | | | | | | | | | Intangible assets | | | | (in millions) | Gross carrying amount |
| Accumulated amortization |
| Net carrying amount |
| Remaining weighted- average amortization period | | Gross carrying amount |
| Accumulated amortization |
| Net carrying amount |
| Subject to amortization: (a) | | | | | | | | | Customer relationships—Investment Management | $ | 1,262 |
| $ | (1,015 | ) | $ | 247 |
| 11 years | | $ | 1,439 |
| $ | (1,136 | ) | $ | 303 |
| | 2,260 |
| (1,744 | ) | 516 |
| 10 years | | 2,249 |
| (1,590 | ) | 659 |
| Other | 42 |
| (23 | ) | 19 |
| 5 years | | 37 |
| (33 | ) | 4 |
| Total subject to amortization | 3,564 |
| (2,782 | ) | 782 |
| 10 years | | 3,725 |
| (2,759 | ) | 966 |
| Not subject to amortization: (b) | | | | | | | | | Tradenames | 1,334 |
| N/A |
| 1,334 |
| N/A | | 1,348 |
| N/A |
| 1,348 |
| Customer relationships | 1,295 |
| N/A |
| 1,295 |
| N/A | | 1,284 |
| N/A |
| 1,284 |
| Total not subject to amortization | 2,629 |
| N/A |
| 2,629 |
| N/A | | 2,632 |
| N/A |
| 2,632 |
| Total intangible assets | $ | 6,193 |
| $ | (2,782 | ) | $ | 3,411 |
| N/A | | $ | 6,357 |
| $ | (2,759 | ) | $ | 3,598 |
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| | (a) | Excludes fully amortized intangible assets. |
| | (b) | Intangible assets not subject to amortization have an indefinite life. |
Estimated annual amortization expense for current intangibles for the next five years is as follows:
| | | | | | For the year ended Dec. 31, | Estimated amortization expense (in millions) | | 2018 | | $ | 180 |
| 2019 | | 116 |
| 2020 | | 102 |
| 2021 | | 79 |
| 2022 | | 60 |
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Impairment testing
The goodwill impairment test is performed at least annually at the reporting unit level. Intangible assets not subject to amortization are tested for impairment annually or more often if events or circumstances indicate they may be impaired.
BNY Mellon’s three business segments include eight reporting units for which goodwill impairment testing is performed on an annual basis. The Investment Management segment consists of two reporting units. The Investment Services segment consists of five reporting units. One reporting unit is included in the Other segment. In the second quarter of 2017, BNY Mellon conducted an annual goodwill impairment test on all eight reporting units. As a result of the annual goodwill impairment test of the eight reporting units, no goodwill impairment was recognized.
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- DefinitionThe 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.
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