Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 11 INTANGIBLE ASSETS

Intangible assets consisted of the following:


At December 31 (Dollars in Millions)	Estimated Life^(a)	Amortization Method^(b)			Balance
At December 31 (Dollars in Millions)	Estimated Life^(a)	Amortization Method^(b)			2015		2014

Goodwill			^(c	⁾	$	9,361	$	9,389
Merchant processing contracts	8 years/8 years		SL/AC			135		174
Core deposit benefits	22 years/5 years		SL/AC			194		234
Mortgage servicing rights			^(c	⁾		2,512		2,338
Trust relationships	10 years/6 years		SL/AC			75		97
Other identified intangibles	8 years/4 years		SL/AC			434		319
Total					$	12,711	$	12,551

(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)	2015		2014		2013
Merchant processing contracts	$	35	$	50	$	64
Core deposit benefits		40		38		41
Trust relationships		21		27		34
Other identified intangibles		78		84		84

Total	$	174	$	199	$	223

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


(Dollars in Millions)
2016	$	173
2017		162
2018		130
2019		101
2020		78

The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2015, 2014 and 2013:


(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, 2012	$	1,605		$	3,514	$	1,528		$	2,496		$	–	$	9,143
Goodwill acquired		–			–		37			20			–		57
Other^(a)		–			–		–			5			–		5

Balance at December 31, 2013	$	1,605		$	3,514	$	1,565		$	2,521		$	–	$	9,205
Goodwill acquired		43			166		8			–			–		217
Other^(a)		–			–		(3	)		(30	)		–		(33	)

Balance at December 31, 2014	$	1,648		$	3,680	$	1,570		$	2,491		$	–	$	9,389
Other^(a)		(1	)		1		(3	)		(25	)		–		(28	)

Balance at December 31, 2015	$	1,647		$	3,681	$	1,567		$	2,466		$	–	$	9,361

(a)

Other changes in goodwill include the effect of foreign exchange translation.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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