Goldman Sachs 2015 Annual Report Download - page 182

THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Identifiable Intangible Assets. The table below presents
the gross carrying amount, accumulated amortization and
net carrying amount of identifiable intangible assets and
their weighted average remaining useful lives.
As of December
$ in millions 2015
Weighted Average
Remaining Useful
Lives (years) 2014
Customer lists
Gross carrying amount $ 1,072 $1,036
Accumulated amortization (777) (715)
Net carrying amount 295 6 321
Commodities-related
Gross carrying amount 185 216
Accumulated amortization (94) (78)
Net carrying amount 91 17138
Other
Gross carrying amount 264 200
Accumulated amortization (159) (144)
Net carrying amount 105 2656
Total
Gross carrying amount 1,521 1,452
Accumulated amortization (1,030) (937)
Net carrying amount $ 491 6 $ 515
1. Primarily includes commodities-related transportation rights.
2. Primarily includes intangible assets related to acquired leases.
Substantially all of the firm’s identifiable intangible assets
are considered to have finite useful lives and are amortized
over their estimated useful lives using the straight-line
method or based on economic usage for certain
commodities-related intangibles.
The tables below present details about amortization of
identifiable intangible assets.
Year Ended December
$ in millions 2015 2014 2013
Amortization $132 $217 $205
$ in millions
Estimated future amortization
As of
December 2015
2016 $130
2017 117
2018 100
2019 68
2020 21
Impairments
The firm tests property, leasehold improvements and
equipment, identifiable intangible assets and other assets
for impairment whenever events or changes in
circumstances suggest that an asset’s or asset group’s
carrying value may not be fully recoverable. To the extent
the carrying value of an asset exceeds the projected
undiscounted cash flows expected to result from the use
and eventual disposal of the asset or asset group, the firm
determines the asset is impaired and records an impairment
equal to the difference between the estimated fair value and
the carrying value of the asset or asset group. In addition,
the firm will recognize an impairment prior to the sale of an
asset if the carrying value of the asset exceeds its estimated
fair value.
During 2015, the firm recorded impairments of
$103 million, substantially all of which were attributable to
consolidated investments and included in the firm’s
Investing & Lending segment. The impairments generally
reflected challenging market conditions for certain
companies in the energy industry resulting from continued
low energy commodity prices. These impairments consisted
of $81 million related to property, leasehold improvements
and equipment, which was included in “Depreciation and
amortization,” and $22 million related to other assets,
which was included in “Other Expenses.”
During 2014, primarily as a result of deterioration in
market and operating conditions related to certain of the
firm’s consolidated investments and the firm’s exchange-
traded fund lead market maker (LMM) rights, the firm
determined that certain assets were impaired and recorded
impairments of $360 million, all of which were included in
“Depreciation and amortization.” These impairments
consisted of $268 million related to property, leasehold
improvements and equipment, substantially all of which
was attributable to a consolidated investment in Latin
America, $70 million related to identifiable intangible
assets, primarily attributable to the firm’s LMM rights, and
$22 million related to goodwill as a result of the sale of
Metro International Trade Services (Metro). The
impairments related to property, leasehold improvements
and equipment and goodwill were included within the
firm’s Investing & Lending segment and the impairments
related to identifiable intangible assets were principally
included within the firm’s Institutional Client Services
segment.
The impairments represented the excess of the carrying
values of these assets over their estimated fair values,
substantially all of which are calculated using level 3
measurements. These fair values were calculated using a
combination of discounted cash flow analyses and relative
value analyses, including the estimated cash flows expected
to result from the use and eventual disposition of these assets.
170 Goldman Sachs 2015 Form 10-K