XML 91 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Goodwill and Other Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2012
Goodwill and Other Intangible Assets Disclosure [Abstract]  
Changes in Goodwill by Business Segment
Note 10 Goodwill and Other Intangible Assets 
                     
Changes in goodwill by business segment during the first nine months of 2012 follow: 
                     
Table 101: Changes in Goodwill by Business Segment (a) 
                     
      Corporate & Asset  Residential      
   Retail Institutional Management Mortgage      
In millions Banking Banking Group Banking Other Total 
December 31, 2011 $ 5,394 $ 2,763 $ 69 $ 43 $ 16 $ 8,285 
RBC Bank (USA) Acquisition  429  473     2  46  950 
Other  (29)  (22)  (5)     (16)  (72) 
September 30, 2012 $ 5,794 $ 3,214 $ 64 $ 45 $ 46 $ 9,163 
(a)The Non-Strategic Assets Portfolio business segment does not have any goodwill allocated to it. 
Summary of Changes In Goodwill and Other Intangible Assets
Changes in goodwill and other intangible assets during the first nine months of 2012 follow:    
             
Table 102: Summary of Changes in Goodwill and Other Intangible Assets 
             
      Customer- Servicing  
In millions Goodwill Related Rights 
December 31, 2011 $ 8,285 $ 742 $ 1,117 
Additions/adjustments:          
 RBC Bank (USA) Acquisition   950   164   16 
 Other (a)   (72)       
 Change in valuation allowance         4 
 Amortization      (125)   (114) 
 Mortgage servicing rights - Other         (26) 
September 30, 2012 $ 9,163 $ 781 $ 997 
(a)Primarily related to correction of amount for an acquisition affecting prior periods. 
Other Intangible Assets
Table 103: Other Intangible Assets 
          
    September 30 December 31 
In millions 2012 2011 
Customer-related and other intangibles      
 Gross carrying amount$ 1,689 $ 1,525 
 Accumulated amortization  (908)   (783) 
  Net carrying amount$ 781 $ 742 
Mortgage and other loan servicing rights      
 Gross carrying amount$ 1,986 $ 2,009 
 Valuation allowance  (193)   (197) 
 Accumulated amortization  (796)   (695) 
  Net carrying amount$ 997 $ 1,117 
   Total$ 1,778 $ 1,859 
Amortization Expense on Existing Intangible Assets
Table 104: Amortization Expense on Existing Intangible Assets 
      
In millions   
Nine months ended September 30, 2012 $ 239 
Nine months ended September 30, 2011   249 
Remainder of 2012   71 
2013   242 
2014   209 
2015   181 
2016   157 
2017   134 
      
Commercial Mortgage Servicing Rights
Changes in commercial mortgage servicing rights (MSRs) follow: 
          
Table 105: Commercial Mortgage Servicing Rights 
          
In millions 2012 2011 
          
Commercial Mortgage Servicing Rights – Net Carrying Amount      
January 1 $ 468 $ 665 
Additions (a)   43   100 
Amortization expense (b)   (113)   (126) 
Change in valuation allowance    4   (157) 
 September 30 $ 402 $ 482 
          
Commercial Mortgage Servicing Rights – Valuation Allowance       
January 1 $ (197) $ (40) 
Provision   (44)   (161) 
Recoveries   24   4 
Other (b)   24    
 September 30 $ (193) $ (197) 
(a)Additions for the first nine months of 2012 and first nine months of 2011 included $27 million and $37 million, respectively, from loans sold with servicing retained. Additions for the first nine months of 2012 and first nine months of 2011 included $16 million and $63 million, respectively, from purchases of servicing rights from third parties. 
(b)Includes a direct write down of servicing rights for $24 million recognized in the first quarter of 2012 primarily due to market-driven changes in interest rates. 
Residential Mortgage Servicing Rights
Changes in the residential MSRs follow: 
          
Table 106: Residential Mortgage Servicing Rights 
          
In millions 2012 2011 
January 1 $ 647 $ 1,033 
Additions:       
 From loans sold with servicing retained   85   94 
 RBC Bank (USA) acquisition   16    
 Purchases   118   48 
Changes in fair value due to:       
 Time and payoffs (a)   (121)   (122) 
 Other (b)   (151)   (369) 
September 30 $ 594 $ 684 
Unpaid principal balance of loans serviced for others at September 30 $ 119,246 $ 121,229 
(a)Represents decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan principal payments and loans that
 were paid down or paid off during the period.
(b)Represents MSR value changes resulting primarily from market-driven changes in interest rates, as well as changes in assumptions such as prepayments and servicing costs.
Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions
Table 107: Commercial Mortgage Loan Servicing Assets - Key Valuation Assumptions  
    September 30  December 31  
Dollars in millions 2012  2011  
Fair Value $ 410  $ 471  
Weighted-average life (years)   5.5    5.9  
Weighted-average constant prepayment rate   6.57%   5.08% 
 Decline in fair value from 10% adverse change $ 9  $ 6  
 Decline in fair value from 20% adverse change $ 18  $ 11  
Effective discount rate   7.74%   7.92% 
 Decline in fair value from 10% adverse change $ 11  $ 9  
 Decline in fair value from 20% adverse change $ 22  $ 18  
Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions
Table 108: Residential Mortgage Loan Servicing Assets - Key Valuation Assumptions  
    September 30  December 31  
Dollars in millions 2012  2011  
Fair value $ 594  $ 647  
Weighted-average life (years)   3.9    3.6  
Weighted-average constant prepayment rate   20.75%   22.10% 
 Decline in fair value from 10% adverse change $ 44  $ 44  
 Decline in fair value from 20% adverse change $ 84  $ 84  
Weighted-average option adjusted spread   11.25%   11.77% 
 Decline in fair value from 10% adverse change $ 23  $ 25  
 Decline in fair value from 20% adverse change $ 45  $ 48  
Fees from Mortgage and Other Loan Servicing
Table 109: Fees from Mortgage and Other Loan Servicing 
           
In millions 2012  2011 
Nine months ended September 30 $ 414  $ 481 
Three months ended September 30   138    163