GOODWILL AND INTANGIBLE ASSETS

Goodwill is the purchase premium excess of the fair value allocated to net assets associated with the acquisition of a business and is assigned to reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The Company has identified and allocated goodwill to two reporting units - Consumer Banking and Commercial Banking - based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. For further detail regarding the Company’s Goodwill see Note 9 “Goodwill” to the Company’s audited Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2017.

In August 2018, the Company acquired certain assets and assumed certain liabilities of FAMC, which resulted in an increase to goodwill of $59 million. Refer to Note 1 “Basis of Presentation” for more information. The change in the carrying value of goodwill for the nine months ended September 30, 2018 is presented below:



(in millions)	Consumer Banking		Commercial Banking		Total
Balance at December 31, 2017		$2,136		$4,751		$6,887
Business acquisition	59		—		59
Balance at September 30, 2018		$2,195		$4,751		$6,946

Accumulated impairment losses related to the Consumer Banking reporting unit totaled $5.9 billion at September 30, 2018 and December 31, 2017. The accumulated losses related to the Commercial Banking reporting unit totaled $50 million at September 30, 2018 and December 31, 2017. There was no impairment recorded for the three and nine months ended September 30, 2018 and 2017.

Other Intangibles

Other intangible assets are recognized separately from goodwill if the asset arises as a result of contractual rights or if the asset is capable of being separated and sold, transferred or exchanged. Intangible assets are recorded in other assets on the Consolidated Balance Sheets and are amortized on a straight-line basis. Intangible assets are subject to an annual impairment evaluation. Amortization expense is recorded in other expenses in our Consolidated Statements of Operations.

A summary of the carrying value of intangible assets is presented below. Included in the carrying value at September 30, 2018 are $32 million in other intangibles related to the FAMC acquisition.



		September 30, 2018						December 31, 2017
(in millions)	Amortizable Lives (years)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Acquired technology	7		$20		$—		$20		$—		$—		$—
Acquired relationships	5 - 15	11		1		10		2		—		2
Other	2 - 3	3		—		3		—		—		—
Total			$34		$1		$33		$2		$—		$2

As of September 30, 2018, all of the Company’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $1 million for the three and nine months ended September 30, 2018. There was no amortization expense for the three and nine months ended September 30, 2017. The Company’s projection of amortization expense is based on balances as of September 30, 2018, and future amortization expense may vary from these projections.

Estimated intangible asset amortization expense for the remainder of 2018 through 2022 is as follows:



(in millions)	Total
Remainder of 2018		$1
2019	5
2020	5
2021	4
2022	4