Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

9. Goodwill and Intangible Assets

Goodwill

The Firm completed its annual goodwill impairment testing as of July 1, 2018 and July 1, 2017. The Firm’s impairment testing for each period did not indicate any goodwill impairment, as each of the Firm’s reporting units with goodwill had a fair value that was substantially in excess of its carrying value.

Goodwill Rollforward

$ in millions		IS		WM		IM		Total
At December 31, 2016¹	$	275	$	5,533	$	769	$	6,577
Foreign currency and other		20		—		—		20
At December 31, 2017¹	$	295	$	5,533	$	769	$	6,597
Foreign currency and other		(21)		—		—		(21)
Acquired		—		—		112		112
At December 31, 2018¹	$	274	$	5,533	$	881	$	6,688
Accumulated
impairments²		673		—		27		700

IS—Institutional Securities

WM—Wealth Management

IM—Investment Management

Balances represent cumulative the amount of the Firm’s goodwill after accumulated impairments.
Balances represent cumulative amounts at December 31, 2018, 2017 and 2016 of impairments recognized prior to 2016.

Intangible Assets by Business Segment

$ in millions		IS		WM		IM		Total
Amortizable intangibles	$	349	$	2,092	$	4	$	2,445
Mortgage servicing rights		—		3		—		3
At December 31, 2017	$	349	$	2,095	$	4	$	2,448
Amortizable intangibles	$	270	$	1,828	$	60	$	2,158
Mortgage servicing rights		2		3		—		5
At December 31, 2018	$	272	$	1,831	$	60	$	2,163

Gross Amortizable Intangible Assets by Type

		At December 31, 2018				At December 31, 2017
$ in millions		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Trademarks	$	3	$	1	$	1	$	—
Tradename		283		59		283		50
Customer
relationships		4,067		2,446		4,059		2,193
Management
contracts		507		311		503		299
Other		175		60		329		188
Total	$	5,035	$	2,877	$	5,175	$	2,730
Estimated annual amortization expense for the next five years							$	296

Net Amortizable Intangible Assets Rollforward

$ in millions		IS		WM		IM		Total
At December 31, 2016	$	346	$	2,361	$	11	$	2,718
Acquired		51		—		—		51
Disposals		(15)		—		—		(15)
Amortization expense		(33)		(269)		(7)		(309)
At December 31, 2017	$	349	$	2,092	$	4	$	2,445
Acquired		—		—		66		66
Disposals		(6)		—		—		(6)
Amortization expense		(70)		(264)		(10)		(344)
Other		(3)		—		—		(3)
At December 31, 2018	$	270	$	1,828	$	60	$	2,158

- 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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