Bank of Montreal 2013 Annual Report Download - page 146

A continuity of our goodwill by CGU for the years ended October 31, 2013 and 2012 is as follows:
(Canadian $ in millions)
Personal and
Commercial
Banking Wealth Management
BMO
Capital
Markets Corporate Services Total
Canadian
P&C U.S. P&C Total Client Investing Global Asset* Management Private Banking Insurance Total
Technology
and
Operations
Goodwill as at
October 31, 2011 122 2,545 2,667 68 377 344 2 791 191 – 3,649
Acquisitions during the year – – – – – 7 – 7 – – 7
Other (1) – 48 48 – 4 6 – 10 3 – 61
Goodwill as at
October 31, 2012 122 2,593 2,715 68 381 357 2 808 194 – 3,717
Acquisitions during the year 20 – 20 – – 17 – 17 – – 37
Other (1) – 110 110 – 7 17 – 24 5 – 139
Goodwill as at
October 31, 2013 142 (2) 2,703 (3) 2,845 68 (4) 388 (5) 391 (6) 2 (7) 849 199 (8) – 3,893
(1) Other changes in goodwill included the effects of translating goodwill denominated in (4) Relates to BMO Nesbitt Burns Inc.
foreign currencies into Canadian dollars and purchase accounting adjustments related to (5) Relates to Guardian Group of Funds Ltd., Pyrford International plc, Integra GRS, LGM and M&I.
prior-year purchases. (6) Relates primarily to Harris myCFO Inc., Stoker Ostler Wealth Advisors, Inc., M&I, CTC
(2) Relates primarily to Moneris Solutions Corporation, bcpbank Canada and Diners Club and Consulting, LLC and AWMB.
Aver Media LP. (7) Relates to AIG.
(3) Relates primarily to New Lenox State Bank, First National Bank of Joliet, Household Bank (8) Relates to Gerard Klauer Mattison & Co., Inc., BMO Nesbitt Burns Inc., Griffin, Kubik,
branches, Mercantile Bancorp, Inc., Villa Park Trust Savings Bank, First National Bank & Trust, Stephens & Thompson, Inc., Paloma Securities L.L.C. and M&I.
Ozaukee Bank, Merchants and Manufacturers Bancorporation, Inc., AMCORE and M&I. * Formerly Investment Products.
Intangible Assets
Intangible assets related to our acquisitions are recorded at their fair value at the acquisition date. Software is recorded at cost less accumulated
amortization. The following table presents the change in the balance of the intangible assets:
Branch Purchased Developed Software
Customer Core distribution software – software – under
(Canadian $ in millions) relationships deposits networks amortizing amortizing development Other Total
Intangible assets cost as at October 31, 2011 397 721 148 549 1,181 119 26 3,141
Additions/disposals/other (2) – 2 (11) 316 37 2 344
Acquisitions 11 – – – – – – 11
Foreign exchange 1 2 – – (3) – 1 1
Intangible assets cost as at October 31, 2012 407 723 150 538 1,494 156 29 3,497
Additions/disposals/other 10 – (3) 2 104 85 – 198
Acquisitions 23 – – – – – – 23
Foreign exchange 15 31 7 4 17 2 – 76
Intangible assets cost as at October 31, 2013 455 754 154 544 1,615 243 29 3,794
The following table presents the accumulated amortization of the intangible assets:
Branch Purchased Developed Software
Customer Core distribution software – software – under
(Canadian $ in millions) relationships deposits networks amortizing amortizing development Other Total
Accumulated amortization at October 31, 2011 98 207 147 480 621 – 26 1,579
Disposals/other (2) – – (29) 57 – 2 28
Amortization 35 98 1 32 173 – – 339
Foreign exchange – – – 1 (2) – – (1)
Accumulated amortization at October 31, 2012 131 305 148 484 849 – 28 1,945
Disposals/other 1 – (5) (27) (40) – (2) (73)
Amortization 44 76 3 29 198 – 2 352
Foreign exchange 4 16 6 3 11 – – 40
Accumulated amortization at October 31, 2013 180 397 152 489 1,018 – 28 2,264
Carrying value at October 31, 2013 275 357 2 55 597 243 1 1,530
Carrying value at October 31, 2012 276 418 2 54 645 156 1 1,552
Intangible assets are amortized to income over the period during which
we believe the assets will benefit us on either a straight-line or an
accelerated basis, over a period not to exceed 15 years. We have no
intangible assets with indefinite lives.
The useful lives of intangible assets are reviewed annually for any
changes in circumstances. We test intangible assets for impairment
when events or changes in circumstances indicate that their carrying
value may not be recoverable. If any intangible assets are determined to
be impaired, we write them down to their recoverable amount, the
higher of the value in use and the fair value less costs to sell, when this
is less than the carrying value.
There were no write-downs of intangible assets due to impairment
during the years ended October 31, 2013 and 2012.
Notes
BMO Financial Group 196th Annual Report 2013 157