GOODWILL AND OTHER INTANGIBLES

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill is assigned to reporting units, which are operating segments or one level below an operating segment, as of the acquisition date. The following table presents activity in the Company's goodwill by its reporting units for the six-month period ended June 30, 2020:


(in thousands)	CBB		C&I		CRE & VF		CIB		SC		Total
Goodwill at December 31, 2019	$	1,880,304	$	317,924	$	1,095,071	$	131,130	$	1,019,960	$	4,444,389



Impairment during the period	(1,557,384)		(290,844)		—		—		—		(1,848,228)
Goodwill at June 30, 2020	$	322,920	$	27,080	$	1,095,071	$	131,130	$	1,019,960	$	2,596,161

There were no changes to the Company's reportable segments during the first half of 2020.

NOTE 5. GOODWILL AND OTHER INTANGIBLES (continued)

The Company made a change in its commercial banking reportable segments beginning January 1, 2019 and, accordingly, re-allocated goodwill previously attributed to commercial banking to the related C&I and CRE&VF reporting units based on the estimated fair value of each reporting unit at January 1, 2019. Upon re-allocation, management tested the new reporting units for impairment, using the same methodology and assumptions used in the October 1, 2018 goodwill impairment test, and noted that there was no impairment. Refer to Note 17 to these Consolidated Financial Statements for additional details on the Company's reportable segments.

The Company evaluates goodwill for impairment at the reporting unit level. The Company completes its annual goodwill impairment test as of October 1 each year. The Company conducted its last annual goodwill impairment tests as of October 1, 2019 using generally accepted valuation methods.

The Company continually assesses whether or not there have been events requiring a review of goodwill. During the second quarter of 2020, primarily due to the ongoing economic impacts of the COVID-19 pandemic, the Company determined that a goodwill triggering event occurred for the CBB, C&I, and CRE & VF reporting units. These Q2 triggering events are in addition to the CBB triggering event during Q1 2020, whereby the estimated fair value of CBB exceeded its carrying value by less than 5%.

Based on its goodwill impairment analysis performed as of June 30, 2020 the Company concluded that a goodwill impairment charge of $1.6 billion and $290.8 million was required for the CBB and C&I reporting units, respectively. The CRE & VF reporting unit’s estimated fair value exceeded its carrying value by less than 5%. The goodwill allocated to these reporting units has become more sensitive to an impairment as the valuation is highly correlated with forecasted interest rates, credit costs, and other factors. A risk of further impairment or impairment to additional reporting units exists in subsequent quarters if the reporting unit’s operating environment does not return to a more normalized status in the foreseeable future.

In prior annual goodwill impairment assessments, the Company determined that an equal weighting of the market and income approach valuation methods provided a reliable fair value estimate. In light of the significant market volatility arising from the continued impacts of the COVID-19 pandemic and the responses to the pandemic from multiple government agencies, the Company determined to give only a 25% weighting to the market approach in estimating the second quarter fair value of CBB, C&I, and CRE & VF, which is consistent with the approach used during the first quarter interim impairment assessment of CBB. The Company continued to analyze implied market multiples to support the valuation under the market approach.

There were no disposals, additions or impairments of goodwill for the three-month and six-month periods ended June 30, 2019.

Other Intangible Assets

The following table details amounts related to the Company's intangible assets subject to amortization for the dates indicated.


	June 30, 2020						December 31, 2019
(in thousands)	Net Carrying Amount		Accumulated Amortization		Net Carrying Amount		Accumulated Amortization
Intangibles subject to amortization:
Dealer networks	$	328,375	$	(251,625)	$	347,982	$	(232,018)
Chrysler relationship	42,500		(96,250)		50,000		(88,750)
Trade name	13,200		(4,800)		13,500		(4,500)
Other intangibles	2,647		(54,526)		4,722		(52,450)
Total intangibles subject to amortization	$	386,722	$	(407,201)	$	416,204	$	(377,718)

At June 30, 2020 and December 31, 2019, the Company did not have any intangibles, other than goodwill, that were not subject to amortization.

Amortization expense on intangible assets was $14.7 million and $29.5 million, for the three-month and six-month periods ended June 30, 2020, respectively, and $14.7 million and $29.5 million for the corresponding periods in 2019, respectively.

NOTE 5. GOODWILL AND OTHER INTANGIBLES (continued)

The estimated aggregate amortization expense related to intangibles, excluding any impairment charges, for each of the five succeeding calendar years ending December 31 is:


Year	Calendar Year Amount		Recorded To Date		Remaining Amount To Record
	(in thousands)
2020	$	58,661	$	29,487	$	29,174
2021	39,904		—		39,904
2022	39,901		—		39,901
2023	28,649		—		28,649
2024	24,792		—		24,792
Thereafter	224,302		—		224,302