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Business Combinations, Goodwill and Acquired Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2017
Schedule of Carrying Value of Equity and Percentage of Fair Value in Excess of Carrying Value

The following table summarizes our goodwill, accumulated impairments and net goodwill for our reporting units and reportable segments.

 

 

 

As of December 31, 2017

 

 

As of December 31, 2016

 

(Dollars in millions)

 

Gross

 

 

Accumulated

Impairments

and Other

Adjustments(1)

 

 

Net

 

 

Gross

 

 

Accumulated

Impairments

and Other

Adjustments(1)

 

 

Net

 

FFELP Loans reportable segment

 

$

194

 

 

$

(4

)

 

$

190

 

 

$

194

 

 

$

(4

)

 

$

190

 

Private Education Loans reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Private Education Loans

 

 

147

 

 

 

(41

)

 

 

106

 

 

 

147

 

 

 

(41

)

 

 

106

 

       Earnest

 

 

87

 

 

 

—

 

 

 

87

 

 

 

—

 

 

 

—

 

 

 

—

 

Total Private Education Loans reportable segment(1)

 

 

234

 

 

 

(41

)

 

 

193

 

 

 

147

 

 

 

(41

)

 

 

106

 

Business Services reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing

 

 

50

 

 

 

—

 

 

 

50

 

 

 

50

 

 

 

—

 

 

 

50

 

Asset Recovery — Contingency

 

 

136

 

 

 

(136

)

 

 

—

 

 

 

136

 

 

 

(136

)

 

 

—

 

Asset Recovery — Gila

 

 

160

 

 

 

—

 

 

 

160

 

 

 

97

 

 

 

—

 

 

 

97

 

Asset Recovery — Xtend Healthcare

 

 

108

 

 

 

—

 

 

 

108

 

 

 

102

 

 

 

—

 

 

 

102

 

Total Business Services reportable segment

 

 

454

 

 

 

(136

)

 

 

318

 

 

 

385

 

 

 

(136

)

 

 

249

 

Total

 

$

882

 

 

$

(181

)

 

$

701

 

 

$

726

 

 

$

(181

)

 

$

545

 

 

(1)

In conjunction with our Separation from SLM BankCo in 2014, we removed $41 million of goodwill from our balance sheet as required under ASC 350, “Intangibles — Goodwill and Other.” This goodwill was allocated to the consumer banking business retained by SLM BankCo based on relative fair value.

Acquired Intangible Assets

Acquired intangible assets include the following:

 

 

As of December 31, 2017

 

 

As of December 31, 2016

 

(Dollars in millions)

 

Cost

Basis(1)

 

 

Accumulated

Impairment and

Amortization(1)

 

 

Net

 

 

Cost

Basis(1)

 

 

Accumulated

Impairment and

Amortization(1)

 

 

Net

 

Customer, services and lending relationships

 

$

292

 

 

$

(234

)

 

$

58

 

 

$

292

 

 

$

(219

)

 

$

73

 

Favorable lease

 

 

1

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

Non-competes

 

 

2

 

 

 

(2

)

 

 

—

 

 

 

2

 

 

 

(2

)

 

 

—

 

Software and technology

 

 

104

 

 

 

(85

)

 

 

19

 

 

 

101

 

 

 

(82

)

 

 

19

 

Trade names and trademarks(2)

 

 

48

 

 

 

(18

)

 

 

30

 

 

 

44

 

 

 

(13

)

 

 

31

 

Total acquired intangible assets

 

$

447

 

 

$

(339

)

 

$

108

 

 

$

440

 

 

$

(316

)

 

$

124

 

 

(1)

Accumulated impairment and amortization includes impairment amounts only if the acquired intangible asset has been deemed partially impaired. When an acquired intangible asset is considered fully impaired and no longer in use, the cost basis and any accumulated amortization related to the asset is written off.

(2)

During 2016 we reclassified certain trade names from indefinite life to definite life intangible assets and began to amortize these assets over their expected benefit period.