GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2010

NOTE 13 – GOODWILL AND INTANGIBLE ASSETS

No goodwill impairment loss was recorded for the years ended December 31, 2010, 2009 and 2008. The following table presents the movement of aggregate goodwill for the years ended:

	12/31/2010			12/31/2009

Commercial bank segment
Opening balance – gross amount		177			224
Accumulated impairment losses		-			-
Opening balance – net amount		177			224
Effect of exchange rate on goodwill on entities outside Brazil		(7	)		(47	)
Closing balance - gross amount		170			177
Accumulated impairment losses		-			-
Closing balance net amount		170			177

Itaú BBA segment
Opening balance – gross amount		36			36
Accumulated impairment losses		-			-
Opening balance – net amount		36			36
Closing balance - gross amount		36			36
Accumulated impairment losses		-			-
Closing balance net amount		36			36

Consumer credit segment
Opening balance – gross amount		14,498			163
Accumulated impairment losses		-			-
Opening balance – net amount		14,498			163
Addition as a result of acquisition		-			14,376
Tax benefit in the realization of deductible goodwill		(40	)		(41	)
Closing balance - gross amount		14,458			14,498
Accumulated impairment losses		-			-
Closing balance net amount		14,458			14,498

Total goodwill
Opening balance – gross amount		14,711			423
Accumulated impairment losses		-			-
Opening balance – net amount		14,711			423
Addition as a result of acquisition		-			14,376
Effect of exchange rate on goodwill on entities outside Brazil		(7	)		(47	)
Tax benefit in the realization of deductible goodwill		(40	)		(41	)
Closing balance - gross amount		14,664			14,711
Accumulated impairment losses		-			-
Closing balance net amount		14,664			14,711

The table below shows the changes in intangible assets in the years ended December 31,

	2010															2009
	Exclusive access to customers of retailers and real estate brokers			Customer relationships (including Core Deposits)			Brand			Other			TOTAL			Exclusive access to customers of retailers and real estate brokers			Customer relationships (including Core Deposits)			Brand		Other			TOTAL
Opening balance		5,174			15,807			1,394			194			22,569			1,433			5,101			-		142			6,676
Additions as a result of transactions for the year:		367			178			-			-			545			4,270			14,144			1,394		114			19,922
Unibanco (Note 3a)		-			-			-			-			-			3,600			8,765			1,039		113			13,517
Redecard (Note 3b)		-			-			-			-			-			-			5,216			355		1			5,572
Other		367			178			-			-			545			670			163			-		-			833
Amortization for the year		(536	)		(3,552	)		(454	)		(50	)		(4,592	)		(520	)		(3,096	)		-		(47	)		(3,663	)
Effect of exchange rate on intangible assets of entities outside Brazil		-			(4	)		-			-			(4	)		-			(58	)		-		-			(58	)
Termination of contracts		(20	)		(76	)								(96	)		-			(38	)		-					(38	)
Impairment losses		(4	)		(7	)		-			-			(11	)		-			(10	)		-		-			(10	)
Tax benefit in the realization of deductible goodwill arising from acquisitions		(9	)		(238	)					(16	)		(263	)		(9	)		(236	)		-		(15	)		(260	)
Closing balance		4,972			12,108			940			128			18,148			5,174			15,807			1,394		194			22,569
Gross balance		6,415			23,813			1,394			369			31,991			6,048			23,635			1,394		369			31,446
Accumulated amortization		(1,443	)		(11,705	)		(454	)		(241	)		(13,843	)		(874	)		(7,828	)		-		(175	)		(8,877	)
Closing balances net		4,972			12,108			940			128			18,148			5,174			15,807			1,394		194			22,569
Weighted average useful life (in years)		11.3			3.1			0.0			4.3			4.7			12.3			4.1			0.0		5.4			5.5

Estimated amortization expense of intangible assets that have definite lives over the next five years are as follows:

Estimated amortization expense
2011			4,140
2012			2,967
2013			2,659
2014			1,709
2015			1,430

In 2010 we converted the "Unibanco" branches into "Itaú" branches and we decided to discontinue the use of "Fininvest" and "Unicard" brands. As a result, we concluded that the "Unibanco", "Fininvest" and "Unicard" brands are no longer indefinite lived intangible assets. We are amortizing these brands from January 1, 2010 over their useful lives to Itaú Unibanco, which we determined to be two years. We have used a residual value of zero since the conditions established by ASC 350 for use of a residual value different from zero are not met.

The carrying value of Brands as of December 31, 2010 consists of both indefinite lived brands and definite lived brands, as follows:

	Indefinite life		Definite life
Gross amount		485		909
Accumulated amortization		-		(454	)
Net amount		485		455

- 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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