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Intangible Assets
12 Months Ended
Dec. 31, 2011
Intangible Assets [Abstract]  
Intangible Assets
  NOTE 11   Intangible Assets

Intangible assets consisted of the following:

 

                                 
   

Estimated

Life (a)

 

Amortization

Method (b)

        Balance  
At December 31 (Dollars in Millions)            2011     2010  

Goodwill

        (c       $ 8,927     $ 8,954  

Merchant processing contracts

  10 years/8 years     SL/AC           348       421  

Core deposit benefits

  18 years/5 years     SL/AC           232       283  

Mortgage servicing rights

        (c         1,519       1,837  

Trust relationships

  10 years/6 years     SL/AC           166       200  

Other identified intangibles

  9 years/5 years     SL/AC           471       472  

Total

                  $ 11,663     $ 12,167  

 

(a) Estimated life represents the amortization period for assets subject to the straight line method and the weighted average or life of the underlying cash flows amortization period for intangibles subject to accelerated methods. If more than one amortization method is used for a category, the estimated life for each method is calculated and reported separately.
(b) Amortization methods: SL = straight line method AC = accelerated methods generally based on cash flows
(c) Goodwill is evaluated for impairment, but not amortized. Mortgage servicing rights are recorded at fair value, and are not amortized.

 

Aggregate amortization expense consisted of the following:

 

 

                         
Year Ended December 31 (Dollars in Millions)   2011     2010     2009  

Merchant processing contracts

  $ 90     $ 102     $ 117  

Core deposit benefits

    81       102       103  

Trust relationships

    35       49       62  

Other identified intangibles

    93       114       105  

Total

  $ 299     $ 367     $ 387  

The estimated amortization expense for the next five years is as follows:

 

         
(Dollars in Millions)       

2012

  $ 275  

2013

    221  

2014

    168  

2015

    132  

2016

    102  

The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2011 and 2010:

 

 

                                                 
(Dollars in Millions)   Wholesale Banking and
Commercial Real Estate
    Consumer and Small
Business Banking
    Wealth Management and
Securities Services
    Payment
Services
    Treasury and
Corporate Support
    Consolidated
Company
 

Balance at December 31, 2009

  $ 1,605     $ 3,526     $ 1,515     $ 2,365     $     $ 9,011  

Goodwill acquired

          9       5                   14  

Disposal

                (57                 (57

Other (a)

                      (14           (14

Balance at December 31, 2010

  $ 1,605     $ 3,535     $ 1,463     $ 2,351     $     $ 8,954  

Other (a)

          (21           (6           (27

Balance at December 31, 2011

  $ 1,605     $ 3,514     $ 1,463     $ 2,345     $     $ 8,927  

 

(a) Other changes in goodwill include a reclassification from goodwill to covered loans related to an FDIC-assisted acquisition for Consumer and Small Business Banking and the effect of foreign exchange translation for Payment Services.