Ameriprise 2012 Annual Report Download - page 146

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, 2011 $ 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
Foreign currency translation — 14 — — 14
Purchase price adjustments (2) (2) — — (4)
Balance at December 31, 2012 $ 253 $ 830 $ 46 $ 45 $ 1,174
As of both December 31, 2012 and 2011, the carrying amount of indefinite-lived intangible assets included $630 million
of investment management contracts and $67 million of trade names.
Definite-lived intangible assets consisted of the following:
December 31,
2012 2011
Gross Net Gross Net
Carrying Accumulated Carrying Carrying Accumulated Carrying
Amount Amortization Amount Amount Amortization Amount
(in millions)
Customer relationships $ 152 $ (72) $ 80 $ 145 $ (69) $ 76
Contracts 238 (146) 92 233 (122) 111
Other 151 (82) 69 150 (55) 95
Total $ 541 $ (300) $ 241 $ 528 $ (246) $ 282
Definite-lived intangible assets acquired during the year ended December 31, 2012 were $2 million with a weighted
average amortization period of 5 years. The increase (decrease) to the net carrying amount of definite-lived intangible
assets due to changes in foreign currency exchange rates was $4 million, nil and $(5) million for the years ended
December 31, 2012, 2011 and 2010, respectively. The aggregate amortization expense for definite-lived intangible assets
during the years ended December 31, 2012, 2011 and 2010 was $47 million, $45 million and $46 million, respectively.
In 2012, 2011 and 2010, the Company did not record any impairment charges on definite-lived intangible assets.
Estimated intangible amortization expense as of December 31, 2012 for the next five years is as follows:
(in millions)
2013 $ 44
2014 38
2015 31
2016 25
2017 21
9. Deferred Acquisition Costs and Deferred Sales Inducement Costs
The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See Note 1 for the
effect of the change on affected financial statement line items for prior periods retrospectively adjusted.
In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions
relative to current experience and management expectations. To the extent that expectations change as a result of this
review, management updates valuation assumptions. The impact in the third quarter of 2012 and 2011 primarily reflected
the low interest rate environment and for 2012, the assumption of continued low interest rates over the near-term. As part
of the third quarter 2010 process, management extended the projection periods used for its annuity products and revised
client asset value growth rates assumed for variable annuity and VUL contracts.
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