Intangible Assets

12 Months Ended

Dec. 31, 2021

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible assets consist of core deposit intangibles, developed technology, customer relationships, operating leases, non-compete agreements, trade names and books of business. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives and, based on the type of intangible asset, the amortization may be recorded in either leasing business revenue or other noninterest expense in the Consolidated Statements of Income. The increase in the gross carrying amount of intangible assets during the year ended December 31, 2021 reflects acquisition activity during the year, which included the recognition of $62 million in developed technology. This asset will be amortized over its remaining useful life, which was estimated to be 8 years at the time of acquisition.

The details of the Bancorp’s intangible assets are shown in the following table:


($ in millions)	Gross Carrying Amount		Accumulated Amortization	Net Carrying Amount
As of December 31, 2021
Core deposit intangibles	$	229	(153)	76
Developed technology	62		(3)	59
Customer relationships	25		(7)	18
Operating leases	11		(9)	2
Other	4		(3)	1
Total intangible assets	$	331	(175)	156
As of December 31, 2020
Core deposit intangibles	$	229	(116)	113
Customer relationships	24		(5)	19
Operating leases	17		(12)	5
Other	3		(1)	2
Total intangible assets	$	273	(134)	139

As of December 31, 2021, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $47 million, $55 million and $54 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of December 31, 2021. Future amortization expense may vary from these projections.

Estimated amortization expense for the years ending December 31, 2022 through 2026 is as follows:


($ in millions)	Total
2022	$	41
2023	32
2024	24
2025	17
2026	11