Policy

8.Intangible Assets and Goodwill

The gross carrying value of intangible assets and accumulated amortization was:


	December 31, 2013							December 31, 2012
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Value		Amortization			Value		Value		Amortization			Value
Customer relationships	$	274		$	84	$	190	$	279		$	51	$	228
Technology		89			27		62		89			16		73
Trade name		17			4		13		17			2		15
Other		2			1		1		5			2		3
Total intangible assets	$	382		$	116	$	266	$	390		$	71	$	319

Amortization expense for intangible assets was $48 million, $47 million, and $20 million in 2013, 2012, and 2011, respectively.

Estimated future annual amortization expense for intangible assets as of December 31, 2013, is as follows:


2014	$	44
2015	$	40
2016	$	37
2017	$	34
2018	$	31
Thereafter	$	80
Total intangible assets	$	266

Goodwill impairment charges since January 1, 2002 are immaterial. The changes in the carrying amount of goodwill, as allocated to the Company’s reportable segments for purposes of testing goodwill for impairment going forward, are presented in the following table:


	Investor		Advisor
	Services		Services		Total
Balance at December 31, 2011	$	1,083	$	78	$	1,161
Goodwill acquired and other changes during the period		45		22		67
Balance at December 31, 2012		1,128		100		1,228
Goodwill acquired and other changes during the period		(1)		-		(1)
Balance at December 31, 2013	$	1,127	$	100	$	1,227

In testing for potential impairment of goodwill on April 1, 2013, management performed a qualitative assessment of each of the Company’s reporting units. As a result of this assessment, management concluded that goodwill was not impaired. The Company did not recognize any goodwill impairment in 2012 or 2011.

SCHWAB CHARLES CORP | 2013 | FY |

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