Sun Life 2010 Annual Report Download - page 107

payment of these amounts is more certain. These liquidity ratios are measured and managed at the business segment, and at our
consolidated level. Our coverage ratios were higher than the policy thresholds as at December 31, 2010 and December 31, 2009.
7. Goodwill and intangible assets
7.A Goodwill
In addition to acquisitions and dispositions of subsidiaries, transactions with the non-controlling interests also result in increases and
decreases to goodwill. There were no write-downs of goodwill due to impairment during 2010, 2009 and 2008.
Changes in goodwill of subsidiaries are as follows:
SLF Canada SLF U.S. SLF Asia Corporate Total
Balance, January 1, 2009 $ 3,481 $ 1,897 $ 536 $ 684 $ 6,598
Acquisitions (Note 3) – – – 216 216
Dispositions – – – (8) (8)
Effect of changes in currency exchange rates – (257) (73) (57) (387)
Balance, December 31, 2009 $ 3,481 $ 1,640 $ 463 $ 835 $ 6,419
Acquisitions 7– –1623
Dispositions (Note 3) (1) – – (319) (320)
Effect of changes in currency exchange rates – (86) (26) (32) (144)
Balance, December 31, 2010 $ 3,487 $ 1,554 $ 437 $ 500 $ 5,978
7.B Intangible assets
As at December 31, the components of the intangible assets are as follows:
2010 2009
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Amount
Finite-life intangible assets:
Sales potential of field force $ 487 $ 102 $ 385 $ 491 $ 88 $ 403
Asset administration contracts 226 76 150 228 69 159
Software and other 167 45 122 144 32 112
880 223 657 863 189 674
Indefinite-life intangible assets:
Fund management contracts 231 – 231 241 – 241
State licenses 10 – 10 11 – 11
241 – 241 252 – 252
Total intangible assets $ 1,121 $ 223 $ 898 $ 1,115 $ 189 $ 926
The write-down of intangible assets due to impairment during 2010 was $7 ($Nil in 2009 and 2008). Amortization of intangible assets
recorded in Operating expenses during the year was $40 ($34 in 2009 and $24 in 2008). We expect to record amortization expenses of
$44 to Operating expenses each year for each of the next five years.
8. Other assets
Other assets as at December 31 consist of the following:
2010 2009
Accounts receivable $ 1,222 $ 978
Investment income due and accrued 1,045 1,100
Future income taxes (Note 19) 709 1,054
Deferred acquisition costs 187 167
Prepaid expenses 260 244
Premiums receivable 298 390
Accrued benefit asset (Note 22) 408 405
Capital assets 160 151
Other 13 28
Total other assets $ 4,302 $ 4,517
Amortization of deferred acquisition costs charged to income amounted to $53 in 2010 ($48 and $50 in 2009 and 2008, respectively).
Capital assets are carried at a cost of $770 ($729 in 2009), less accumulated depreciation and amortization of $610 ($578 in 2009).
Depreciation and amortization charged to Operating expenses in our Consolidated Statements of Operations totalled $53 in 2010 ($60
and $63 in 2009 and 2008, respectively).
Notes to the Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2010 103