AMERIPRISE FINANCIAL INC
For the period ended Dec 31, 2023. Filed Feb 22, 2024.
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FY2023 · Filed Feb 22, 2024
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Goodwill and Other Intangible Assets
- Goodwill and Other Intangible Assets
Goodwill and intangible assets deemed to have indefinite lives are not amortized but are instead subject to impairment tests. There wereno impairments of indefinite-lived intangible assets recorded for the years ended December 31, 2023, 2022 and 2021.
The changes in the carrying amount of goodwill reported in the Company’s reportable segments were as follows:
| Advice & Wealth Management | AssetManagement | Retirement & Protection Solutions | Consolidated | |
|---|---|---|---|---|
| (in millions) | ||||
| Balance at January 1, 2022 | $279 | $1,088 | $91 | $1,458 |
| Foreign currency translation | — | (59) | — | (59) |
| Other adjustments | — | (10) | — | (10) |
| Balance at December 31, 2022 | 279 | 1,019 | 91 | 1,389 |
| Foreign currency translation | — | 27 | — | 27 |
| Other adjustments | — | (6) | — | (6) |
| Balance at December 31, 2023 | $279 | $1,040 | $91 | $1,410 |
In 2023 and 2022, the Company completed the annual impairment evaluation for goodwill as of July 1. Additionally, in the fourth quarter of 2022, due to the macroeconomic conditions at the time, the Company performed an additional goodwill impairment evaluation. The Company concluded its goodwill was not impaired in either 2023 or 2022.
The carrying amount of indefinite-lived intangible assets consisted of the following:
| December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| (in millions) | ||
| Customer contracts | $848 | $837 |
| Trade names | 67 | 67 |
| Total | $915 | $904 |
Definite-lived intangible assets consisted of the following:
| December 31, 2023 · December 31, 2022 | ||||||
|---|---|---|---|---|---|---|
| Gross Carrying Amount · Accumulated Amortization · Net Carrying Amount · Gross Carrying Amount · Accumulated Amortization · Net Carrying Amount | ||||||
| (in millions) | ||||||
| Customer relationships | $380 | $(191) | $189 | $265 | $(174) | $91 |
| Contracts | 228 | (219) | 9 | 222 | (210) | 12 |
| Other | 343 | (243) | 100 | 295 | (206) | 89 |
| Total | $951 | $(653) | $298 | $782 | $(590) | $192 |
Index
On November 6, 2023, the Company and Comerica, Inc. (through certain affiliates) closed an arrangement in which the Company became Comerica’s new investment program provider and acquired Comerica’s customer lists for $110 million.
Definite-lived intangible assets acquired during the year ended December 31, 2023 were $110 million with a weighted average amortization period of 10 years. The aggregate amortization expense for definite-lived intangible assets during the years ended December 31, 2023, 2022 and 2021 was $52 million, $45 million and $34 million, respectively.There were $1 million, nil andnil of impairments of definite-lived intangible assets recorded for the years ended December 31, 2023, 2022 and 2021, respectively.
Estimated intangible amortization expense as of December 31, 2023 for the next five years is as follows:
| (in millions) | |
|---|---|
| 2024 | $53 |
| 2025 | 47 |
| 2026 | 43 |
| 2027 | 35 |
| 2028 | 24 |
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