PRUDENTIAL FINANCIAL INC
For the period ended Dec 31, 2024. Filed Feb 13, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 13, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
10. Goodwill and Other Intangibles
- GOODWILL AND OTHER INTANGIBLES
The changes in the carrying value of goodwill by reportable segment are as follows:
| PGIM | InternationalBusinesses | Corporate and Other | Other(1) | Total | |
|---|---|---|---|---|---|
| (in millions) | |||||
| Goodwill balance, December 31, 2021: | $558 | $130 | $1,106 | $10 | $1,804 |
| Impairments | 0 | 0 | (903) | 0 | (903) |
| Foreign currency translation | (9) | (15) | (1) | 0 | (25) |
| Goodwill balance, December 31, 2022: | 549 | 115 | 202 | 10 | 876 |
| Acquisitions(2) | 373 | 0 | 0 | 0 | 373 |
| Impairments | 0 | 0 | (177) | 0 | (177) |
| Divestitures(3) | 0 | 0 | (23) | 0 | (23) |
| Foreign currency translation | 30 | (7) | (1) | 0 | 22 |
| Goodwill balance, December 31, 2023: | 952 | 108 | 1 | 10 | 1,071 |
| Foreign currency translation and other(2) | (6) | (12) | 0 | 0 | (18) |
| Goodwill balance, December 31, 2024: | $946 | $96 | $1 | $10 | $1,053 |
(1)Other includes goodwill balances assigned to Individual Retirement Strategies, Individual Life, and Group Insurance.
(2)During 2023, PGIM acquired a majority stake in Deerpath Capital Management, LP, a leading U.S.-based private credit and direct lending manager. The goodwill associated with that acquisition includes a measurement period adjustment made during 2024.
(3)Includes a sale of a foreign operation classified as a divested business within Corporate and Other.
The Company tests goodwill for impairment annually, as of December 31, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2. The Company performed the annual goodwill impairment test using the quantitative approach for all reporting units at December 31, 2024. The estimated fair value of PGIM and Gibraltar and Other, within the International Businesses segment, incorporated a market approach based on earnings multiple and significantly exceeded their carrying value, resulting inno goodwill impairment as of December 31, 2024.
The Company recorded pre-tax impairment charges of $177 million and $903 million in 2023 and 2022, respectively, both related to AIQ, within Corporate and Other operations, resulting in no remaining goodwill assigned to AIQ as of December 31, 2023 and 2024.
Other Intangibles
Other intangible balances at December 31, are as follows:
| 2024 · 2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Carrying Amount · AccumulatedAmortization · Net Carrying Amount · Gross Carrying Amount · AccumulatedAmortization · Net Carrying Amount | |||||||||||
| (in millions) | |||||||||||
| Subject to amortization: | |||||||||||
| Mortgage servicing rights | $897 | $(630) | $267 | $884 | $(600) | $284 | |||||
| Customer relationships | 260 | (173) | 87 | 268 | (158) | 110 | |||||
| Software and other | 41 | (30) | 11 | 189 | (135) | 54 | |||||
| Not subject to amortization | 41 | N/A | 41 | 58 | N/A | 58 | |||||
| Total | $406 | $506 | |||||||||
The fair values of net mortgage servicing rights were $269 million and $286 million at December 31, 2024 and 2023, respectively. Amortization expense for other intangibles was $80 million, $89 million and $104 million for the years ending December 31, 2024, 2023 and 2022, respectively. The amortization expense amounts for 2024, 2023 and 2022 do not include impairments recorded for mortgage servicing rights or other intangibles. See the nonrecurring fair value measurements section of Note 6 for additional information regarding these impairments.
The following table provides estimated future amortization for the periods indicated:
| 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|
| (in millions) | |||||
| Estimated future amortization expense of other intangibles | $63 | $59 | $53 | $48 | $34 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.