Intangible Assets

9 Months Ended

Sep. 30, 2013

8. Intangible Assets

Intangible assets consist of servicing rights, core deposit intangibles, customer lists, non-compete agreements and cardholder relationships. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. Intangible assets, excluding servicing rights, have an estimated remaining weighted-average life at September 30, 2013 of 4.1 years. The Bancorp reviews intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. For more information on servicing rights, see Note 10.

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

			Gross Carrying	Accumulated	Valuation	Net Carrying
($ in millions)			Amount	Amortization	Allowance	Amount
As of September 30, 2013
	Mortgage servicing rights	$	3,036	(1,610)	(511)	915
	Automobile servicing rights		6	(2)	-	4
	Core deposit intangibles		154	(139)	-	15
	Other		45	(39)	-	6
Total intangible assets		$	3,241	(1,790)	(511)	940
As of December 31, 2012
	Mortgage servicing rights	$	2,825	(1,467)	(661)	697
	Core deposit intangibles		180	(160)	-	20
	Other		44	(37)	-	7
Total intangible assets		$	3,049	(1,664)	(661)	724

As of September 30, 2013, all of the Bancorp's intangible assets were being amortized. Amortization expense recognized on intangible assets, including servicing rights, for the three months ended September 30, 2013 and 2012 was $42 million and $51 million, respectively. For the nine months ended September 30, 2013 and 2012, amortization expense was $152 million and $145 million, respectively.

The Bancorp's projections of amortization expense shown below are based on existing asset balances as of September 30, 2013. Future amortization expense may vary from these projections. Estimated amortization expense for the remainder of 2013 through 2017 is as follows:

		Servicing	Other
($ in millions)		Rights	Intangible Assets	Total
Remainder of 2013	$	29	2	31
2014		110	5	115
2015		101	2	103
2016		92	2	94
2017		85	2	87