Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 6—GOODWILL AND INTANGIBLE ASSETS

The table below presents our goodwill, intangible assets and MSRs as of March 31, 2021 and December 31, 2020. Goodwill is presented separately, while intangible assets and MSRs are included in other assets on our consolidated balance sheets.

Table 6.1: Components of Goodwill, Intangible Assets and MSRs

	March 31, 2021
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	14,654	N/A		$	14,654
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	147		$	(139)	8
Other(1)	184		(108)		76
Total intangible assets	331		(247)		84
Total goodwill and intangible assets	$	14,985	$	(247)	$	14,738
Commercial MSRs(2)	$	562	$	(183)	$	379
	December 31, 2020
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	14,653	N/A		$	14,653
Intangible assets:
PCCR intangibles	148		$	(138)	10
Other(1)	248		(168)		80
Total intangible assets	396		(306)		90
Total goodwill and intangible assets	$	15,049	$	(306)	$	14,743
Commercial MSRs(2)	$	542	$	(175)	$	367

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(1)Primarily consists of intangibles for sponsorship, customer and merchant relationships, partnership, trade name and other contract 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 $6 million and $22 million of amortization expense for the three months ended March 31, 2021 and 2020, respectively.

Goodwill

The following table presents changes in carrying amount of goodwill by each of our business segments as of March 31, 2021 and December 31, 2020.

Table 6.2: Goodwill by Business Segments

(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2020	$	5,088	$	4,645	$	4,920	$	14,653
Other adjustments(1)	1		0		0		1
Balance as of March 31, 2021	$	5,089	$	4,645	$	4,920	$	14,654

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(1)Represents foreign currency translation adjustments.