Goodwill

A summary of the activity related to the Company’s goodwill follows.



	(In Thousands)
Balance, at December 31, 2018
Goodwill	$	9,835,400
Accumulated impairment losses	(4,852,104		)
Goodwill, net at December 31, 2018	4,983,296
Impairment losses	(470,000		)
Balance, at December 31, 2019
Goodwill	9,835,400
Accumulated impairment losses	(5,322,104		)
Goodwill, net at December 31, 2019	4,513,296
Impairment losses	(2,185,000		)
Balance, at March 31, 2020
Goodwill	9,835,400
Accumulated impairment losses	(7,507,104		)
Goodwill, net at March 31, 2020	$	2,328,296

Goodwill is allocated to each of the Company's segments (each a reporting unit: Commercial Banking and Wealth, Retail Banking, and Corporate and Investment Banking).

At March 31, 2020 and December 31, 2019, the goodwill, net of accumulated impairment losses, attributable to each of the Company’s three identified reporting units is as follows:



	March 31, 2020		December 31, 2019
	(In Thousands)
Commercial Banking and Wealth	$	1,930,830	$	2,659,830
Retail Banking	135,660		1,427,660
Corporate and Investment Banking	261,806		425,806

Through March 31, 2020, the Company had recognized accumulated goodwill impairment losses of $3.2 billion, $2.7 billion, and $883 million within the Commercial Banking and Wealth, Retail Banking, and Corporate and Investment Banking reporting units, respectively. In addition, the Company has previously recognized $784 million of accumulated goodwill impairment losses from reporting units that no longer have a goodwill balance.

In accordance with the applicable accounting guidance, the Company performs annual tests to identify potential impairment of goodwill. The tests are required to be performed annually and more frequently if events or circumstances indicate a potential impairment may exist. The Company compares the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.

The estimated fair value of the reporting unit is determined using a blend of both income and market approaches.

The Company completed its annual goodwill impairment test as of October 31, 2019. Additionally, on a quarterly basis, the Company evaluates whether a triggering event has occurred. During the three months ended March 31, 2020, the Company performed an interim impairment test due to the impact of COVID-19 pandemic on the economic environment. The interim impairment test indicated a goodwill impairment of $164 million within the Corporate and Investment Banking reporting unit, $729 million within the Commercial Banking and Wealth reporting unit, and $1.3 billion within the Retail Banking reporting unit resulting in the Company recording a goodwill impairment charge of $2.2 billion for the three months ended March 31, 2020. The primary causes of the goodwill impairment were economic and industry conditions, volatility in the market capitalization of U.S. banks, and management's downward revisions to financial projections that resulted in the fair value of the reporting units being less than the carrying value of the reporting units.

The fair values of the reporting units are based upon management’s estimates and assumptions. Although management has used the estimates and assumptions it believes to be most appropriate in the circumstances, it should be noted that even relatively minor changes in certain valuation assumptions used in management’s calculations could result in significant differences in the results of the impairment tests. Additionally, the impact of the COVID-19 pandemic is highly uncertain and cannot be predicted.