Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7—GOODWILL AND INTANGIBLE ASSETS

The table below displays the components of goodwill, intangible assets and mortgage servicing rights (“MSRs”) as of March 31, 2016 and December 31, 2015. Goodwill is presented separately on our consolidated balance sheets. Intangible assets and MSRs are included in other assets on our consolidated balance sheets.

Table 7.1: Components of Goodwill, Intangible Assets and MSRs



	March 31, 2016
(Dollars in millions)	Carrying Amount of Assets⁽¹⁾		Accumulated Amortization⁽¹⁾			Net Carrying Amount
Goodwill	$	14,492	N/A			$	14,492
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	2,147		$	(1,529	)	618
Core deposit intangibles	1,391		(1,301		)	90
Other⁽²⁾	375		(146		)	229
Total intangible assets	3,913		(2,976		)	937
Total goodwill and intangible assets	$	18,405	$	(2,976	)	$	15,429
MSRs:
Consumer MSRs⁽³⁾	$	59	N/A			$	59
Commercial MSRs⁽⁴⁾	222		$	(58	)	164
Total MSRs	$	281	$	(58	)	$	223

	December 31, 2015
(Dollars in millions)	Carrying Amount of Assets⁽¹⁾		Accumulated Amortization⁽¹⁾			Net Carrying Amount
Goodwill	$	14,480	N/A			$	14,480
Intangible assets:
PCCR intangibles	2,156		$	(1,467	)	689
Core deposit intangibles	1,771		(1,662		)	109
Other⁽²⁾	378		(135		)	243
Total intangible assets	4,305		(3,264		)	1,041
Total goodwill and intangible assets	$	18,785	$	(3,264	)	$	15,521
MSRs:
Consumer MSRs⁽³⁾	$	68	N/A			$	68
Commercial MSRs⁽⁴⁾	212		$	(51	)	161
Total MSRs	$	280	$	(51	)	$	229

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⁽¹⁾	Certain intangible assets that were fully amortized in prior periods were removed from our consolidated balance sheets.


⁽²⁾	Primarily consists of intangibles for sponsorship relationships, brokerage relationship intangibles, partnership and other contract intangibles and trade name intangibles.


⁽³⁾	Represents MSRs related to our Consumer Banking business that are carried at fair value on our consolidated balance sheets.


⁽⁴⁾	Represents MSRs related to our Commercial Banking business that are subsequently accounted for under the amortization method and periodically assessed for impairment.

Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $101 million and $110 million for the three months ended March 31, 2016 and 2015, respectively.

Goodwill

The following table presents goodwill attributable to each of our business segments as of March 31, 2016 and December 31, 2015.

Table 7.2: Goodwill Attributable to Business Segments



(Dollars in millions)	Credit Card			Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2015	$	4,997		$	4,600	$	4,883	$	14,480
Acquisitions	0			0		14		14
Other adjustments	(2		)	0		0		(2		)
Balance as of March 31, 2016	$	4,995		$	4,600	$	4,897	$	14,492

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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