XML 49 R13.htm IDEA: XBRL DOCUMENT v2.3.0.15
Intangible Assets
9 Months Ended
Sep. 30, 2011
Intangible Assets [Abstract] 
Intangible Assets

Note 6 – Intangible Assets

The following is a summary of intangible assets, net of accumulated amortization, included in the Consolidated Condensed Statements of Condition:

 

The gross carrying amount of other intangible assets subject to amortization is $105.3 million on September 30, 2011, net of $78.0 million of accumulated amortization. Estimated aggregate amortization expense is expected to be $1.0 million for the remainder of 2011, and $3.8 million, $3.6 million, $3.5 million, $3.3 million, and $3.1 million for the twelve-month periods of 2012, 2013, 2014, 2015, and 2016, respectively.

The agreement to sell FHI resulted in a pre-tax goodwill impairment of $10.1 million in first quarter 2011. In second quarter 2011, the remaining $16.4 million of goodwill was removed in conjunction with the divestiture. In third quarter 2011, FHN sold Msaver resulting in a $2.0 million reduction of goodwill. In first quarter 2010, FHN exited its institutional research business, FTN Equity Capital Markets ("FTN ECM"), and incurred a pre-tax goodwill impairment of $3.3 million. The recognition of intangible asset impairment losses will have no effect on FHN's debt covenants.

The following is a summary of gross goodwill and accumulated impairment losses and write-offs detailed by reportable segments included in the Consolidated Condensed Statements of Condition through September 30, 2011. Gross goodwill and accumulated impairments and divestiture-related write-offs were determined beginning on January 1, 2002, when a change in accounting requirements resulted in goodwill being assessed for impairment rather than being amortized. Consistent with historical practices, FHN moved FHI's historical goodwill activity to the non-strategic segment in first quarter 2011 and moved Msaver's historical goodwill activity to the non-strategic segment in third quarter 2011.

 

(Dollars in thousands)    Non-Strategic     Regional
Banking
     Capital
Markets
     Total  

Gross goodwill

     $199,995        $36,238         $97,421         $333,654   

Accumulated impairments

     (100,675     -         -         (100,675

Accumulated divestiture related write-offs

     (67,451     -         -         (67,451

December 31, 2009

     $31,869        $36,238         $97,421         $165,528   

Additions

     -        -         -         -   

Impairments

     (3,348     -         -         (3,348

Divestitures

     -        -         -         -   

Net change in goodwill during 2010

     (3,348     -         -         (3,348

Gross goodwill

     $199,995        $36,238         $97,421         $333,654   

Accumulated impairments

     (104,023     -         -         (104,023

Accumulated divestiture related write-offs

     (67,451     -         -         (67,451

September 30, 2010

     $28,521        $36,238         $97,421         $162,180   

Gross goodwill

     $199,995        $36,238         $97,421         $333,654   

Accumulated impairments

     (104,023     -         -         (104,023

Accumulated divestiture related write-offs

     (67,451     -         -         (67,451

December 31, 2010

     $28,521        $36,238         $97,421         $162,180   

Additions

     -        -         -         -   

Impairments

     (10,100     -         -         (10,100

Divestitures

     (18,421     -         -         (18,421

Net change in goodwill during 2011

     (28,521     -         -         (28,521

Gross goodwill

     $199,995        $36,238         $97,421         $333,654   

Accumulated impairments

     (114,123     -         -         (114,123

Accumulated divestiture related write-offs

     (85,872     -         -         (85,872

September 30, 2011

     -        $36,238         $97,421         $133,659   

Certain previously reported amounts have been reclassified to agree with current presentation.