Citibank 2012 Annual Report Download - page 236

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18. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in Goodwill during 2012 and 2011 were as follows:
In millions of dollars
Balance at December 31, 2010 $26,152
Foreign exchange translation (636)
Smaller acquisitions/divestitures, purchase accounting adjustments and other 44
Discontinued operations (147)
Balance at December 31, 2011 $25,413
Foreign exchange translation 294
Smaller acquisitions/divestitures, purchase accounting adjustments and other (21)
Discontinued operations (13)
Balance at December 31, 2012 $25,673
The changes in Goodwill by segment during 2012 and 2011 were as follows:
In millions of dollars
Global
Consumer
Banking
Institutional
Clients
Group Citi Holdings
Corporate/
Other Total
Balance at December 31, 2010 $10,701 $10,826 $ 4,625 $— $26,152
Goodwill acquired during 2011 $ — $ 19 $ — $— $ 19
Goodwill disposed of during 2011 — (6) (153) — (159)
Other (1) (465) (102) (32) — (599)
Balance at December 31, 2011 $10,236 $10,737 $ 4,440 $— $25,413
Goodwill acquired during 2012 $ — $ — $ — $— $ —
Goodwill disposed of during 2012 — — (8) — (8)
Other (1) 20 244 4 — 268
Intersegment transfers in/(out) (2) 4,283 — (4,283) — —
Balance at December 31, 2012 $14,539 $10,981 $ 153 $— $25,673
(1) Other changes in Goodwill primarily reflect foreign exchange effects on non-dollar-denominated goodwill, discontinued operations in 2012, and purchase accounting adjustments.
(2) Primarily includes the transfer of the substantial majority of the Citi retail services business from Citi Holdings—Local Consumer Lending to Citicorp—North America Regional Consumer Banking during the first quarter
of 2012. See Note 4 to the Consolidated Financial Statements for a further discussion of this segment transfer.
Goodwill impairment testing is performed at the level below the business
segments (referred to as a reporting unit). The reporting unit structure in
2012 was the same as the reporting unit structure in 2011, although certain
underlying businesses were transferred between certain reporting units in the
first quarter of 2012, as discussed further below.
As of January 1, 2012, a substantial majority of the Citi retail services
business previously included within the Local Consumer Lending—Cards
reporting unit was transferred to North America—Regional Consumer
Banking. In addition, certain small businesses included within the Local
Consumer Lending—Cards reporting unit were transferred to Local
Consumer Lending—Other. Additionally, an insurance business in El
Salvador within Brokerage and Asset Management was transferred to
Latin America Regional Consumer Banking. Goodwill affected by the
reorganization was reassigned from Local Consumer Lending—Cards and
Brokerage and Asset Management to those reporting units that received
businesses using a relative fair value approach. Subsequent to January 1, 2012,
goodwill has been allocated to disposals and tested for impairment under
the reporting unit structure reflecting these transfers. An interim goodwill
impairment test was performed on the impacted reporting units as of January 1,
2012, resulting in no impairment.
The Company performed its annual goodwill impairment test as of
July 1, 2012 resulting in no impairment for any of the reporting units.
As per ASC 350, Intangibles—Goodwill and Other management elected
to perform a qualitative assessment for the Transaction Services reporting
unit. Through consideration of various factors including excess of fair value
over the carrying value in prior year, projected growth via positive cash flows,
and no adverse changes anticipated in the business and macroeconomic
environment, management determined that it is not more-likely-than-not
that the fair value of this reporting unit is less than its carrying amount and
therefore the two-step impairment test was not required.
No goodwill was deemed impaired in 2010, 2011 and 2012.