Travelers 2005 Annual Report Download - page 164

THE ST. PAUL TRAVELERS COMPANIES, INC.AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
152
4. INTANGIBLE ASSETS AND GOODWILL (Continued)
The following presents a summary of the Company’s amortization expense for intangible assets by
major asset class:
(for the year ended December 31, in millions) 2005 2004 2003
Customer-related ........................................................ $151 $ 1 32 $ 42
Marketing-related ........................................................ 10 7 —
Fair value adjustment on claims and claim adjustmentexpense reserves and
reinsurance recoverables ................................................ (12 )(58) —
Total amortization expense.............................................. $149 $ 81 $ 42
Intangible asset amortization expense is estimated to be $153 million in 2006, $145 million in 2007,
$126 million in 2008, $100 million in 2009 and $86 million in 2010.
Goodwill
The following table presents the carrying amount of the Company’s goodwill by segment at
December 31, 2005 and 2004:
(at December 31, in millions) 2005 2004
Commercial................................................. $1,862 $1,893
Specialty .................................................... 860 900
Personal .................................................... 613 613
Other...................................................... 107 158
Total..................................................... $3,442 $3,564
The decrease in goodwill from December 31, 2004 was primarily due to additional purchase
accounting adjustments recorded during the allocation period and certain tax adjustments subsequently
affecting goodwill.
5. SEGMENT INFORMATION
The company is organized into three reportable business segments: Commercial, Specialty and
Personal. The accounting policies used to generate the followingsegment data are the same as those
described in the Summary of Significant Accounting Policies innote 1. The amount of investments in
equity method investees and total expenditures for additions to long-lived assets other than financial
instruments were not significant.