Citibank 2015 Annual Report Download - page 230

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17. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in Goodwill were as follows:
In millions of dollars
Balance at December 31, 2012 $25,673
Foreign currency translation (577)
Divestitures, purchase accounting adjustments and other (1) (25)
Sale of Brazil Credicard (62)
Balance at December 31, 2013 $25,009
Foreign currency translation and other $ (1,214)
Divestitures and purchase accounting adjustments (1) (203)
Balance at December 31, 2014 $23,592
Foreign currency translation and other $ (1,000)
Impairment of goodwill (31)
Divestitures (2) (212)
Balance at December 31, 2015 $22,349
The changes in Goodwill by segment were as follows:
In millions of dollars
Global
Consumer
Banking
Institutional
Clients
Group Citi Holdings Total
Balance at December 31, 2013 $13,985 $10,868 $ 156 $25,009
Foreign currency translation and other (505) (711) 2 (1,214)
Divestitures and purchase accounting adjustments (1) (86) (1) (116) (203)
Balance at December 31, 2014 $13,394 $10,156 $ 42 $23,592
Impact of reorganization at January 1, 2015 (3) $ (177) $ — $ 177 $ —
Foreign currency translation and other (355) (644) (1) (1,000)
Impairment of goodwill — — (31) (31)
Divestitures (2) (24) (1) (187) (212)
Balance at December 31, 2015 $12,838 $ 9,511 $ — $22,349
(1) Primarily related to the sales of the Spain consumer operations and the Japan retail banking business. See Note 2 to the Consolidated Financial Statements.
(2) Primarily related to the sales of the Latin America Retirement Services and Japan cards businesses completed during the year, and agreements to sell certain businesses in Citi Holdings as of December 31, 2015. See
Note 2 to the Consolidated Financial Statements.
(3) Goodwill allocation associated with the transfers of certain GCB businesses to Citi Holdings effective January 1, 2015, as described above. See Note 3 to the Consolidated Financial Statements.
Goodwill impairment testing is performed at the level below each business
segment (referred to as a reporting unit). The Company performed its annual
goodwill impairment test as of July 1, 2015 resulting in no impairment for
any of the reporting units. The reporting unit structure in 2015 was the same
as the reporting unit structure in 2014, except for the effect of the January 1,
2015 reorganization noted below and the sales involving the Citi Holdings—
Cards, Latin America Retirement Services, and Citi Holdings—Consumer
Japan reporting units during the third quarter of 2014 and second and
fourth quarter of 2015, respectively.
Furthermore, interim goodwill impairment tests were performed during
the year, which resulted in $31 million of total goodwill impairment recorded
in Operating expenses, as discussed below. No goodwill was deemed impaired
in 2014 and 2013.
Effective January 1, 2015, certain consumer banking and institutional
businesses were transferred to Citi Holdings and aggregated to form five
new reporting units: Citi Holdings—Consumer EMEA, Citi Holdings—
Consumer Latin America, Citi Holdings—Consumer Japan, Citi
Holdings—Consumer Finance South Korea, and Citi Holdings—ICG.
Goodwill balances associated with the transfers were allocated to each of
the component businesses based on their relative fair values to the legacy
reporting units. An interim goodwill impairment test was performed as
of January 1, 2015 under the legacy and new reporting structures, which
resulted in full impairment of the new Citi Holdings—Consumer Finance
South Korea reporting unit’s $16 million of goodwill. Additionally, during