Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 7—GOODWILL AND INTANGIBLE ASSETS

The table below presents our goodwill, intangible assets and MSRs as of March 31, 2019 and December 31, 2018. Goodwill is presented separately, while 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, 2019
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization			Net Carrying Amount
Goodwill	$	14,546	N/A			$	14,546
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	2,102		$	(1,973	)	129
Core deposit intangibles	209		(209		)	0
Other(1)	217		(123		)	94
Total intangible assets	2,528		(2,305		)	223
Total goodwill and intangible assets	$	17,074	$	(2,305	)	$	14,769
Commercial MSRs(2)	$	482	$	(199	)	$	283
	December 31, 2018
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization			Net Carrying Amount
Goodwill	$	14,544	N/A			$	14,544
Intangible assets:
PCCR intangibles	2,102		$	(1,952	)	150
Core deposit intangibles	1,149		(1,148		)	1
Other(1)	271		(168		)	103
Total intangible assets	3,522		(3,268		)	254
Total goodwill and intangible assets	$	18,066	$	(3,268	)	$	14,798
Commercial MSRs(2)	$	459	$	(185	)	$	274

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⁽¹⁾  Primarily consists of intangibles for sponsorship relationships, partnership and other contract intangibles and trade name intangibles.

⁽²⁾  Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets.

Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $30 million and $44 million for the three months ended March 31, 2019 and 2018, respectively.

Goodwill

The following table presents changes in the carrying amount of goodwill by each of our business segments as of March 31, 2019 and December 31, 2018.

Table 7.2: Goodwill by Business Segments

(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2018	$	5,060	$	4,600	$	4,884	$	14,544
Other adjustments(1)	2		0		0		2
Balance as of March 31, 2019	$	5,062	$	4,600	$	4,884	$	14,546

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⁽¹⁾  Represents foreign currency translation adjustments.