9.A Goodwill

Changes in the carrying amount of goodwill acquired through business combinations by reportable segment are as follows:



	SLF Canada			SLF U.S.				SLF Asia				SLF Asset Management				Corporate			Total
Balance, January 1, 2017		$	2,573		$	1,112			$	686			$	767			$	179	$	5,317
Acquisitions (Note 3)		—			—				16				—				—		16
Foreign exchange rate movements		—			(69		)		(47		)		(38		)		4		(150		)
Balance, December 31, 2017		$	2,573		$	1,043			$	655			$	729			$	183	$	5,183
Acquisitions		34			7				—				—				—		41
Foreign exchange rate movements		—			88				50				46				4		188
Balance, December 31, 2018		$	2,607		$	1,138			$	705			$	775			$	187	$	5,412

Goodwill was not impaired in 2018 or 2017. The carrying amounts of goodwill allocated to our CGUs or groups of CGUs are as follows:



As at December 31,	2018			2017
SLF Canada
Individual		$	1,100		$	1,066
Group retirement services		453			453
Group benefits		1,054			1,054
SLF U.S. Employee benefits group		1,138			1,043
SLF Asia		705			655
SLF Asset Management
MFS		515			481
Sun Life Investment Management ("SLIM")		260			248
Corporate
U.K.		187			183
Total		$	5,412		$	5,183

Goodwill acquired in business combinations is allocated to the CGUs or groups of CGUs that are expected to benefit from the synergies of the particular acquisition.

Goodwill is assessed for impairment annually or more frequently if events or circumstances occur that may result in the recoverable amount of a CGU falling below its carrying value. The recoverable amount is the higher of fair value less costs of disposal and value in use. We use fair value less costs of disposal as the recoverable amount.

We use the best evidence of fair value less costs of disposal as the price obtainable for the sale of a CGU, or group of CGUs. Fair value less costs of disposal is initially assessed by looking at recently completed market comparable transactions. In the absence of such comparables, we use either an appraisal methodology (with market assumptions commonly used in the valuation of insurance companies or asset management companies) or a valuation multiples methodology. The fair value measurements are categorized in Level 3 of the fair value hierarchy.

Under the appraisal methodology, fair value is assessed based on best estimates of future income, expenses, level and cost of capital over the lifetime of the policies and, where appropriate, adjusted for items such as transaction costs. The value ascribed to new business is based on sales anticipated in our business plans, sales projections for the valuation period based on reasonable growth assumptions, and anticipated levels of profitability of that new business. In calculating the value of new business, future sales are projected for 10 to 15 years. In some instances, market multiples are used to approximate the explicit projection of new business.

The discount rates applied reflect the nature of the environment for that CGU. The discount rates used range from 9.0% to 12.5% (after tax). More established CGUs with a stronger brand and competitive market position use discount rates at the low end of the range and CGUs with a weaker competitive position use discount rates at the high end of the range. The capital levels used are aligned with our business objectives.

Under the valuation multiples methodology, fair value is assessed with reference to multiples or ratios of comparable businesses. For life insurers and asset managers, these valuation multiples and ratios may include price-to-earnings or price-to-assets-under-management measures. This assessment takes into consideration a variety of relevant factors and assumptions, including expected growth, risk, and market conditions among others. The price-to-earnings multiples used range from 10.5 to 11.5. The price-to-assets-under-management ratios used range from 0.6% to 2.0%.

Judgment is used in estimating the recoverable amounts of CGUs and the use of different assumptions and estimates could result in material adjustments to the valuation of CGUs and the size of any impairment. Any material change in the key assumptions including those for capital, discount rates, the value of new business, and expenses, as well as cash flow projections used in the determination of recoverable amounts, may result in impairment charges, which could be material.

In considering the sensitivity of the key assumptions above, management determined that there is no reasonably possible change in any of the above that would result in the recoverable amount of any of the CGUs to be less than its carrying amount.

9.B Intangible Assets

Changes in intangible assets are as follows:



		Finite life
	Internally generated software				Other			Indefinite life			Total
Gross carrying amount
Balance, January 1, 2017		$	518		$	1,172		$	661		$	2,351
Additions		81			5			—			86
Acquisitions (Note 3)		—			61			—			61
Disposals		(3		)	—			—			(3		)
Foreign exchange rate movements		(17		)	(36		)	(36		)	(89		)
Balance, December 31, 2017		$	579		$	1,202		$	625		$	2,406
Additions		118			(1		)	—			117
Acquisitions		—			19			3			22
Foreign exchange rate movements		25			46			45			116
Balance, December 31, 2018		$	722		$	1,266		$	673		$	2,661
Accumulated amortization and impairment losses
Balance, January 1, 2017		$	(291	)	$	(353	)	$	(4	)	$	(648	)
Amortization charge for the year		(59		)	(53		)	—			(112		)
Disposals		3			—			—			3
Foreign exchange rate movements		9			9			—			18
Balance, December 31, 2017		$	(338	)	$	(397	)	$	(4	)	$	(739	)
Amortization charge for the year		(66		)	(53		)	—			(119		)
Foreign exchange rate movements		(13		)	(11		)	—			(24		)
Balance, December 31, 2018		$	(417	)	$	(461	)	$	(4	)	$	(882	)
Net carrying amount, end of period:
As at December 31, 2017		$	241		$	805		$	621		$	1,667
As at December 31, 2018		$	305		$	805		$	669		$	1,779

The components of the intangible assets are as follows:



As at December 31,	2018			2017
Finite life intangible assets:
Distribution, sales potential of field force		$	366		$	376
Client relationships and asset administration contracts		439			429
Internally generated software		305			241
Total finite life intangible assets		1,110			1,046
Indefinite life intangible assets:
Fund management contracts⁽¹⁾		669			621
Total indefinite life intangible assets		669			621
Total intangible assets		$	1,779		$	1,667

⁽¹⁾ Fund management contracts are attributable to SLF Asset Management, where its competitive position in, and the stability of, its markets support their classification as indefinite life intangible assets.