Ameriprise 2007 Annual Report Download - page 83

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Ameriprise Financial 2007 Annual Report 81
11. Goodwill and Other Intangibles
Goodwill and other intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. The
Company tests goodwill for impairment on an annual basis. For the years ended December 31, 2007, 2006 and 2005 the tests did not indicate
impairment. Intangible assets with definite lives are amortized over their estimated useful lives. The Company evaluates the definite lived intan-
gible assets remaining useful lives annually and tests for impairment whenever events and circumstances indicate that an impairment may have
occurred. In 2007, the Company had an impairment charge of approximately $1 million related to an asset management contract.
The changes in the carrying amount of goodwill reported in the Company’s four main operating segments were as follows:
Advice &
Wealth Asset
Management Management Annuities Protection Consolidated
(in millions)
Balance at January 1, 2006(1) $96 $387 $44 $50 $577
Acquisitions — 4 — — 4
Foreign currency translation and other adjustments — 57 — — 57
Balance at December 31, 2006(1) 96 448 44 50 638
Acquisitions — 4 — — 4
Foreign currency translation and other adjustments — 1 — — 1
Balance at December 31, 2007 $96 $453 $44 $50 $643
(1) Balances have been retroactively adjusted to reflect changes in segments effective in the fourth quarter of 2007.
Definite-lived intangible assets consisted of the following:
December 31,
2007 2006
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
(in millions)
Customer relationships $ 40 $ (17) $ 23 $ 39 $(13) $ 26
Contracts 153 (61) 92 140 (44) 96
Other 146 (41) 105 144 (33) 111
Total $339 $(119) $220 $323 $(90) $233
The aggregate amortization expense for these intangible assets during the years ended December 31, 2007, 2006 and 2005 was $27 million,
$20 million and $28 million, respectively. These assets have a weighted-average useful life of 12 years.
Estimated intangible amortization expense as of December 31, 2007, for the next five years was as follows:
(in millions)
2008 $26
2009 25
2010 24
2011 19
2012 19
As of December 31, 2007 and 2006, the Company did not have identifiable intangible assets with indefinite useful lives.