Ameriprise 2011 Annual Report Download - page 142

8. Goodwill and Other Intangible Assets
Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment
tests. For the years ended December 31, 2011, 2010 and 2009, the tests did not indicate impairment.
The changes in the carrying amount of goodwill reported in the Company’s main operating segments were as follows:
Advice &
Wealth Asset
Management Management Annuities Protection Consolidated
(in millions)
Balance at January 1, 2010 $ 257 $ 739 $ 46 $ 45 $ 1,087
Acquisitions — 97 — — 97
Foreign currency translation — (11) — — (11)
Purchase price adjustments (2) (10) — — (12)
Balance at December 31, 2010 255 815 46 45 1,161
Acquisitions — 6 — — 6
Foreign currency translation — (2) — — (2)
Purchase price adjustments — (1) — — (1)
Balance at December 31, 2011 $ 255 $ 818 $ 46 $ 45 $ 1,164
On April 30, 2010, the Company acquired the long-term asset management business of Columbia Management from Bank
of America. The acquisition has enhanced the scale and performance of the Company’s retail mutual fund and institutional
asset management businesses. The Company recorded the assets and liabilities acquired at fair value and allocated the
remaining costs to goodwill and intangible assets.
As of both December 31, 2011 and 2010, the carrying amount of indefinite-lived intangible assets included $630 million
of investment management contracts and $67 million of trade names. Identifiable intangible assets with indefinite useful
lives acquired during the year ended December 31, 2010 included $615 million of investment management contracts and
$57 million of trade names.
Definite-lived intangible assets consisted of the following:
December 31,
2011 2010
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
(in millions)
Customer relationships $ 145 $ (69) $ 76 $ 150 $ (38) $ 112
Contracts 233 (122) 111 233 (103) 130
Other 150 (55) 95 143 (60) 83
Total $ 528 $ (246) $ 282 $ 526 $ (201) $ 325
Definite-lived intangible assets acquired during the year ended December 31, 2011 were $2 million with a weighted
average amortization period of 5 years. In 2011, the Company did not record any purchase price adjustments to definite-
lived intangible assets. The increase (decrease) to the net carrying amount of definite-lived intangible assets due to
changes in foreign currency exchange rates was nil, $(5) million and $13 million for the years ended December 31, 2011,
2010 and 2009, respectively. The aggregate amortization expense for definite-lived intangible assets during the years
ended December 31, 2011, 2010 and 2009 was $45 million, $46 million and $32 million, respectively. In 2011, 2010
and 2009, the Company did not record any impairment charges on definite-lived intangible assets.
Estimated intangible amortization expense as of December 31, 2011 for the next five years is as follows:
(in millions)
2012 $ 46
2013 45
2014 40
2015 31
2016 27
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