Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v2.4.0.6
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Note 11.
Goodwill and Intangible Assets
Goodwill
Goodwill is the cost of an acquired company in excess of the fair value of identifiable net assets at the acquisition date. Goodwill is tested annually (or more frequently under certain conditions) for impairment at the reporting unit level in accordance with Goodwill and Intangible Assets Accounting. If the fair value of the reporting unit exceeds its carrying value, its goodwill is not deemed to be impaired. If the fair value is less than the carrying value, a further analysis is required to determine the amount of impairment, if any. Based on the annual impairment analysis completed during the third quarter of 2011, Merrill Lynch determined that there was no impairment of goodwill as of the June 30, 2011 test date.

The carrying amount of goodwill was $5.7 billion at both December 31, 2011 and December 31, 2010.
Intangible Assets
Intangible assets with definite lives at December 31, 2011 and December 31, 2010 consisted primarily of value assigned to customer relationships. Intangible assets with definite lives are tested for impairment in accordance with ASC 360, Property, Plant and Equipment whenever certain conditions exist which would indicate the carrying amounts of such assets may not be recoverable. Intangible assets with definite lives are amortized over their respective estimated useful lives. Intangible assets with indefinite lives consist of value assigned to the Merrill Lynch brand and are tested for impairment in accordance with Goodwill and Intangible Assets Accounting. Intangible assets with indefinite lives are not amortized. Based on an impairment analysis conducted as of June 30, 2011, the Merrill Lynch brand intangible asset was not impaired.
The table below presents the gross carrying amount, accumulated amortization, and net carrying amounts of intangible assets as of December 31, 2011 and December 31, 2010:
(dollars in millions)
 
 
Year Ended
December 31,
2011
 
 
Year Ended
December 31,
2010
Customer relationships
Gross carrying amount
$
3,087

 
 
$
3,087

 
Accumulated amortization
(928
)
 
 
(618
)
 
Net carrying amount
2,159

 
 
2,469

Other(1)
Gross carrying amount
1,515

 
 
1,515

 
Accumulated amortization

 
 

 
Net carrying amount
1,515

 
 
1,515

Total
Gross carrying amount
4,602

 
 
4,602

 
Accumulated amortization
(928
)
 
 
(618
)
 
Net carrying amount
$
3,674

 
 
$
3,984

 
 
 
 
 
 
(1)
Represents value assigned to the Merrill Lynch brand.

Amortization expense for the years ended December 31, 2011 and December 31, 2010 was $309 million. Amortization expense for 2009 was $349 million.
The estimated future amortization of intangible assets from 2012 through 2016 is $309 million per year.