v3.6.0.2
Other Assets
 12 Months Ended
Dec. 31, 2016
Disclosure Text Block Abstract  
Other Assets

NOTE 7

Other Assets

The following is a summary of Other assets as of December 31:

(Millions)  2016  2015
Goodwill  $2,927  $2,749
Deferred tax assets, net(a)  2,336  2,231
Prepaid expenses  696  851
Other intangible assets, at amortized cost  868  796
Tax Credit investments824638
Restricted cash(b)286  477
Derivative assets(a)  555  282
Other  2,069  2,045
Total  $10,561  $10,069

  • Refer to Notes 14 and 21 for a discussion of derivative assets and deferred tax assets, net, respectively, as of December 31, 2016 and 2015. For 2016 and 2015, $81 million and $80 million, respectively, of foreign deferred tax liabilities is reflected in Other liabilities. Derivative assets reflect the impact of master netting agreements.
  • Includes restricted cash available to settle obligations related to certain Card Member credit balances and customer deposits, as well as coupon and maturity obligations of consolidated VIEs.

Goodwill

The changes in the carrying amount of goodwill reported in the Company’s reportable operating segments and Corporate & Other were as follows:

(Millions)USCSICNSGCSGMSCorporate & OtherTotal
Balance as of January 1, 2015  $122  $673$1,715  $291  $223  $3,024
Acquisitions―  ――  ―  ―  ―
Dispositions―  ――  ―  ―  ―
Other, including impairment and foreign currency translation(a)  ―  (53)―  ―  (222)  (275)
Balance as of December 31, 2015  $122  $620$1,715  $291  $1  $2,749
Acquisitions―――201―  201
Dispositions―――――  ―
Other, including foreign currency translation(a)  ―  (16)(3)  (3)  (1)  (23)
Balance as of December 31, 2016  $122  $604$1,712  $489  $―  $2,927

Includes $1 million and $219 million in impairment charges within Corporate & Other as of December 31, 2016 and 2015, respectively. Refer to Note 2 for additional information.

Accumulated impairment losses were $220 million and $219 million as of December 31, 2016 and 2015, respectively.

Other Intangible Assets

The components of other intangible assets were as follows:

20162015
(Millions)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships$1,625$(895)$730$1,506$(836)$670
Other260(122)138231(105)126
Total$1,885$(1,017)$868$1,737$(941)$796

Amortization expense for the years ended December 31, 2016, 2015 and 2014 was $194 million, $183 million and $174 million, respectively. Intangible assets acquired in 2016 and 2015 are being amortized, on average, over 7 and 5 years, respectively.

Estimated amortization expense for other intangible assets over the next five years is as follows:

(Millions)20172018201920202021
Estimated amortization expense$189$175$146$121$93

TAX CREDIT INVESTMENTS

The Company accounts for its tax credit investments, including Qualified Affordable Housing (QAH) investments, using the equity method of accounting. The Company had $824 million and $638 million in tax credit investments as of December 31, 2016 and 2015, respectively, included in Other assets on the Consolidated Balance Sheets, of which $798 million and $578 million, respectively, specifically related to QAH investments. Included in QAH investments as of December 31, 2016 and 2015, the Company has $701 million and $489 million, respectively, specifically related to investments in unconsolidated VIEs for which the Company does not have a controlling financial interest.

As of December 31, 2016, the Company has committed to provide funding related to certain of these QAH investments, resulting in a $266 million unfunded commitment reported in Other liabilities, of which $239 million specifically relates to unconsolidated VIEs, which is expected to be paid between 2017 and 2029.

In addition, the Company has contractual off-balance sheet obligations, which were not deemed probable of being drawn, whereby it may provide additional funding up to $151 million for these QAH investments as of December 31, 2016, all of which specifically relate to unconsolidated VIEs.

During the years ended December 31, 2016 and 2015, the Company recognized equity method losses related to its QAH investments of $43 million and $50 million, respectively, which were recognized in Other, net expenses; and associated tax credits of $63 million and $53 million, respectively, recognized in Income tax provision.