XML 65 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Summary of Carrying Amounts of Goodwill and Intangible Assets

(a) Carrying amounts of goodwill and intangible assets

 

As at December 31, 2017    Balance,
January 1,
2017		      Additions/
disposals		      Amortization
expense		      Effect of changes
in foreign
exchange rates		     Balance,
December 31,
2017		  

Goodwill

    $ 5,884      $ –      $ n/a      $ (171 )    $ 5,713  

Indefinite life intangible assets

              

Brand

      805        –        n/a        (52 )      753  

Fund management contracts and other(1)

      785        –        n/a        (30 )      755  
       1,590        –        n/a        (82 )      1,508  

Finite life intangible assets(2)

              

Distribution networks

      1,093        –        47        (57 )      989  

Customer relationships

      969        –        56        (14 )      899  

Software

      494        306        121        (18 )      661  

Other

      77        –        5        (2 )      70  
       2,633        306        229        (91 )      2,619  

Total intangible assets

      4,223        306        229        (173 )      4,127  

Total goodwill and intangible assets

    $   10,107      $ 306      $   229      $   (344 )    $ 9,840  
As at December 31, 2016    Balance,
January 1,
2016		      Additions(3)/
disposals(4)		      Amortization
expense		      Effect of changes
in foreign
exchange rates		     Balance,
December 31,
2016		  

Goodwill

    $ 5,685      $ 256      $ n/a      $ (57 )    $ 5,884  

Indefinite life intangible assets

              

Brand

      831        –        n/a        (26 )      805  

Fund management contracts and other(1)

      723        76        n/a        (14 )      785  
       1,554        76        n/a        (40 )      1,590  

Finite life intangible assets(2)

              

Distribution networks

      726        450        50        (33 )      1,093  

Customer relationships

      947        79        53        (4 )      969  

Software

      396        229        126        (5 )      494  

Other

      76        6        5        –       77  
       2,145        764        234        (42 )      2,633  

Total intangible assets

      3,699        840        234        (82 )      4,223  

Total goodwill and intangible assets

    $ 9,384      $ 1,096      $ 234      $ (139 )    $   10,107  

 

(1) For fund management contracts, the significant CGUs to which these were allocated and their associated carrying values were John Hancock Investments and Retirement Plan Services with $367 (2016 – $393) and Canadian Wealth (excluding Manulife Bank of Canada) with $273 (2016 – $273).
(2) Gross carrying amount of finite life intangible assets was $1,294 for distribution networks, $1,128 for customer relationships, $1,841 for software and $126 for other (2016 – $1,363, $1,142, $1,581 and $133, respectively).
(3) In 2016, acquisitions of Standard Chartered’s MPF business in Hong Kong and Transamerica’s broker-dealer business in the USA led to additions of goodwill of $194 and $59 and intangible assets of $193 and $26, respectively. Commencement of sales through the DBS relationship led to recognition of $536 of distribution networks.
(4) In 2016, disposals include impairments of distribution networks for discontinued products of $150 in the U.S. Division.
Summary of Impairment Testing of Goodwill

sold, and where interdependencies exist. The following tables present the carrying value of goodwill by CGUs.

 

As at December 31, 2017

CGU or Group of CGUs

   

Balance,
January 1,

2017

      Additions/
disposals		      Effect of
changes in
foreign
exchange
rates		     

Balance,
December 31,

2017

  

Asia (excluding Hong Kong and Japan)

    $ 160      $ –      $ (6 )     $ 154  

Hong Kong

      194        –        (14 )       180  

Japan Insurance and Wealth

      403        –        (12 )       391  

Canadian Individual Life

      155        –               –        155  

Canadian Affinity Markets

      83        –        –        83  

Canadian Wealth (excluding Manulife Bank)

      1,085        –        –        1,085  

Canadian Group Benefits and Group Retirement Solutions

      1,773        –        –        1,773  

International Group Program

      90        –        (6 )       84  

John Hancock Insurance

      428        –        (28 )       400  

John Hancock Investments and Retirement Plan Services

      1,220        –        (99 )       1,121  

Manulife Asset Management and Other

      293        –        (6 )       287  

Total

    $   5,884      $ –      $ (171 )     $   5,713  

As at December 31, 2016

CGU or Group of CGUs

   

Balance,
January 1,

2016

      Additions/
disposals		      Effect of
changes in
foreign
exchange
rates		     

Balance,
December 31,

2016

  

Asia (excluding Hong Kong and Japan)

    $ 166      $ –      $ (6 )     $ 160  

Hong Kong

      –        194        –        194  

Japan Insurance and Wealth

      404        –        (1 )       403  

Canadian Individual Life

      155        –        –        155  

Canadian Affinity Markets

      83        –        –        83  

Canadian Wealth (excluding Manulife Bank)

      1,085        –        –        1,085  

Canadian Group Benefits and Group Retirement Solutions

      1,773        –        –        1,773  

International Group Program

      93        –        (3 )       90  

John Hancock Insurance

      378        59        (9 )       428  

John Hancock Investments and Retirement Plan Services

      1,254        3        (37 )       1,220  

Manulife Asset Management and Other

      294        –        (1 )       293  

Total

    $ 5,685      $   256      $ (57 )     $ 5,884