Goodwill and Other Intangibles

GOODWILL AND OTHER INTANGIBLES

The changes in the book value of goodwill by area are as follows:



	Retirement		Investment Management			International Insurance			Total
	(in millions)
Balance at December 31, 2014:
Gross Goodwill	$	444	$	235		$	152		$	831
Accumulated Impairment Losses	0		0			0			0
Net Goodwill	444		235			152			831
2015 Activity:
Acquisitions	0		0			0			0
Other(1)	0		(4		)	(3		)	(7		)
Balance at December 31, 2015:
Gross Goodwill	444		231			149			824
Accumulated Impairment Losses	0		0			0			0
Net Goodwill	444		231			149			824
2016 Activity:
Acquisitions	0		0			0			0
Other(1)	0		(1		)	10			9
Balance at December 31, 2016:
Gross Goodwill	444		230			159			833
Accumulated Impairment Losses	0		0			0			0
Net Goodwill	444		230			159			833
2017 Activity:
Acquisitions	0		0			0			0
Other(1)	0		5			5			10
Balance at December 31, 2017:
Gross Goodwill	444		235			164			843
Accumulated Impairment Losses	0		0			0			0
Net Goodwill	$	444	$	235		$	164		$	843

__________


(1)	Represents foreign currency translation.

The Company tests goodwill for impairment annually as of December 31 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2.

The Company performed goodwill impairment testing using the quantitative approach for all reporting units that had goodwill at December 31, 2017 and 2016, and no impairments were recorded.

Other Intangibles

Other intangible balances at December 31, are as follows:



	2017							2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(in millions)
Subject to amortization:
Mortgage servicing rights	$	623	$	(382	)	$	241	$	548	$	(341	)	$	207
Customer relationships	174		(116		)	58		243		(179		)	64
Other	149		(109		)	40		138		(102		)	36
Not subject to amortization	3		N/A			3		3		N/A			3
Total						$	342						$	310

The fair values of net mortgage servicing rights were $256 million and $217 million at December 31, 2017 and 2016, respectively. Amortization expense for other intangibles was $51 million, $116 million and $64 million for the years ending December 31, 2017, 2016 and 2015, respectively. Amortization expense for other intangibles is expected to be approximately $52 million in 2018, $48 million in 2019, $40 million in 2020, $37 million in 2021 and $33 million in 2022. The amortization expense amounts listed above for 2017, 2016 and 2015 do not include impairments recorded for mortgage servicing rights or other intangibles. See the non-recurring fair value measurements section of Note 20 for more information regarding these impairments.

- 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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