Notes to the consolidated financial statements of Aegon N.V.  Note 2 140 2.4 Segment reporting 2.5 Offsetting of assets and liabilities 2.6 Intangible assets a. Goodwill b. Value of business acquired  c. Future servicing rights Annual Report 2013 The present value of the future servicing rights is amortized over the servicing period as the fees from services emerge and is subject to  impairment testing. It is derecognized when the related contracts are settled or disposed of. On the acquisition of a portfolio of investment contracts without discretionary participation features under which Aegon will render  investment management services, the present value of future servicing rights is recognized as an intangible asset. Future servicing  rights can also be recognized on the sale of a loan portfolio or the acquisition of insurance agency activities. When unrealized gains or losses arise on available-for-sale assets, VOBA is adjusted to equal the effect that the realization of the gains  or losses (through a sale or impairment) would have had on VOBA. The adjustment is recognized directly in shareholders’ equity. VOBA  is derecognized when the related contracts are settled or disposed of.  VOBA is amortized over the useful life of the acquired contracts, based on either the expected future premiums or the expected  gross profit margins. The amortization period and pattern are reviewed at each reporting date; any change in estimates is recorded  in the income statement. For all products, VOBA, in conjunction with DPAC where appropriate, is assessed for recoverability at least  annually on a country-by-country basis and the portion determined not to be recoverable is charged to the income statement. VOBA is  considered in the liability adequacy test for each reporting period.  When a portfolio of insurance contracts is acquired, whether directly from another insurance company or as part of a business  combination, the difference between the fair value and the carrying amount of the insurance liabilities is recognized as value of  business acquired (VOBA). The Group also recognizes VOBA when it acquires a portfolio of investment contracts with discretionary  participation features.  Goodwill is recognized as an intangible asset for interests in subsidiaries and joint ventures acquired after January 1, 2004 and  is measured as the positive difference between the acquisition cost and the Group’s interest in the net fair value of the entity’s  identifiable assets, liabilities and contingent liabilities. Subsequently, goodwill is carried at cost less accumulated impairment charges.  It is derecognized when the interest in the subsidiary or joint venture is disposed of. Financial assets and liabilities are offset in the statement of financial position when the Group has a legally enforceable right to offset  and has the intention to settle the asset and liability on a net basis or simultaneously.  The line item “Run-off businesses” includes earnings of certain business units where management has decided to exit the market and  to run-off the existing block of business. Aegon believes that excluding the earnings of these blocks of businesses from underlying  earnings enhances the comparability from period to period of Aegon’s key earnings measure, underlying earnings.  Aegon’s operating segments are based on the businesses as presented in internal reports that are regularly reviewed by the Executive  Board which is regarded as the “chief operating decision maker”. The operating segments are:  The resulting exchange differences are recognized in the “foreign currency translation reserve”, which is part of shareholders’ equity.  On disposal of a foreign entity the related cumulative exchange differences included in the reserve are recognized in the income  statement. ■ Aegon Americas: Covers business units in the United States, Canada, Mexico and Brazil, including any of the units’ activities located  outside these countries. ■ Aegon the Netherlands: Covers businesses operating in the Netherlands. ■ Aegon United Kingdom: Covers businesses operating in the United Kingdom. ■ New Markets: Covers businesses operating in Central & Eastern Europe, Asia, Spain and France as well as Aegon’s variable annuity  activities in Europe and Aegon Asset Management. ■ Holding and other activities: Includes financing, employee and other administrative expenses of holding companies.