Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill during 2016 and 2015 are shown in the table below.



(Dollars in millions)	2016		2015
Goodwill, beginning of year	$	3,225	$	3,225
Net change from business combinations	—		—
Goodwill, end of year	$	3,225	$	3,225

For impairment testing, goodwill was assigned to the following operating segments at December 31, 2016 and 2015:



(Dollars in millions)	2016		2015
Regional Bank	$	2,134	$	2,126
U.S. Wholesale Banking	410		407
Transaction Banking	251		251
Investment Banking & Markets	430		427
Asian Corporate Banking	—		14
Goodwill, end of year	$	3,225	$	3,225

The Company reviews its goodwill for impairment on an annual basis and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The annual goodwill impairment test was performed as of April 1, 2016 and 2015. The Company also performed an impairment test of goodwill as of October 1, 2015 as a result of the realignment of the Company’s business model and resulting consolidation of the previous Commercial Banking segment into the new segments. Goodwill was reassigned to the new reporting units using a relative fair value allocation. Based on these tests, we concluded that goodwill allocated to our reporting units was not impaired at December 31, 2016 or 2015. Fair values of the Company's reporting units exceeded their carrying amounts and did not generally represent a significant risk of goodwill impairment based on current projections and valuations.

Intangible Assets

The table below reflects the Company's identifiable intangible assets and accumulated amortization at December 31, 2016 and 2015.



	December 31, 2016							December 31, 2015
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangibles	$	565	$	(516	)	$	49	$	565	$	(497	)	$	68
Trade names	113		(26		)	87		114		(24		)	90
Customer relationships	118		(34		)	84		57		(30		)	27
Other	41		(15		)	26		40		(19		)	21
Total intangible assets with a definite useful life	$	837	$	(591	)	$	246	$	776	$	(570	)	$	206

Total amortization expense for 2016, 2015 and 2014 was $28 million, $42 million and $52 million, respectively.

Estimated future amortization expense at December 31, 2016 is as follows:



(Dollars in millions)	Core Deposit Intangibles		Trade Name		Customer Relationships		Other		Total Identifiable Intangible Assets
Years ending December 31, :
2017	$	14	$	3	$	10	$	4	$	31
2018	7		3		9		4		23
2019	7		3		9		4		23
2020	5		3		9		3		20
2021	4		3		9		3		19
Thereafter	12		72		38		8		130
Total estimated amortization expense	$	49	$	87	$	84	$	26	$	246

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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