Goodwill and Acquired Intangible Assets

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table presents the changes in goodwill by business segment during the three months ended March 31, 2017:



	Market Services		Corporate Services		Information Services		Market Technology		Total
	(in millions)
Balance at December 31, 2016	$	3,390	$	674	$	1,806	$	157	$	6,027
Foreign currency translation adjustment	22		3		13		5		43
Balance at March 31, 2017	$	3,412	$	677	$	1,819	$	162	$	6,070

As of March 31, 2017, the amount of goodwill that is expected to be deductible for tax purposes in future periods is $858 million.

Goodwill represents the excess of purchase price over the value assigned to the net assets, including identifiable intangible assets, of a business acquired. Goodwill is allocated to our reporting units based on the assignment of the fair values of each reporting unit of the acquired company. We test goodwill for impairment at the reporting unit level annually, or in interim periods if certain events occur indicating that the carrying amount may be impaired, such as changes in the business climate, poor indicators of operating performance or the sale or disposition of a significant portion of a reporting unit. There was no impairment of goodwill for the three months ended March 31, 2017 and 2016; however, events such as extended economic weakness or unexpected significant declines in operating results of a reporting unit may result in goodwill impairment charges in the future.

Acquired Intangible Assets

The following table presents details of our total acquired intangible assets, both finite- and indefinite-lived:



	March 31, 2017										December 31, 2016
	Gross Amount			Accumulated Amortization			Net Amount			Weighted-Average Useful Life (in Years)	Gross Amount			Accumulated Amortization			Net Amount			Weighted-Average Useful Life (in Years)
	(in millions)										(in millions)
Finite-Lived Intangible Assets
Technology	$	38		$	(25	)	$	13		5	$	38		$	(24	)	$	14		5
Customer relationships	1,394			(485		)	909			18	1,394			(464		)	930			18
Other	7			(6		)	1			6	7			(6		)	1			6
Foreign currency translation adjustment	(153		)	56			(97		)		(160		)	58			(102		)
Total finite-lived intangible assets	$	1,286		$	(460	)	$	826			$	1,279		$	(436	)	$	843
Indefinite-Lived Intangible Assets
Exchange and clearing registrations	$	1,257		$	—		$	1,257			$	1,257		$	—		$	1,257
Trade names	129			—			129				130			—			130
Licenses	52			—			52				52			—			52
Foreign currency translation adjustment	(182		)	—			(182		)		(188		)	—			(188		)
Total indefinite-lived intangible assets	$	1,256		$	—		$	1,256			$	1,251		$	—		$	1,251
Total intangible assets	$	2,542		$	(460	)	$	2,082			$	2,530		$	(436	)	$	2,094

Amortization expense for acquired finite-lived intangible assets was $23 million for the three months ended March 31, 2017 and $17 million for the three months ended March 31, 2016. The increase in amortization expense in 2017 compared with 2016 was primarily due to additional acquired intangible assets in the second quarter of 2016.

The estimated future amortization expense (excluding the impact of foreign currency translation adjustments of $97 million as of March 31, 2017) of acquired finite-lived intangible assets as of March 31, 2017 is as follows:



	(in millions)
2017⁽¹⁾	$	72
2018	90
2019	76
2020	75
2021	74
2022 and thereafter	536
Total	$	923

____________


⁽¹⁾	Represents the estimated amortization to be recognized for the remaining nine months of 2017.

- Definition

The 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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