Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 6—GOODWILL AND INTANGIBLE ASSETS

The table below presents our goodwill, intangible assets and MSRs as of September 30, 2021 and December 31, 2020. Goodwill is presented separately, while intangible assets and MSRs are included in other assets on our consolidated balance sheets.

Table 6.1: Components of Goodwill, Intangible Assets and MSRs

	September 30, 2021
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	14,652	N/A		$	14,652
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles	29		$	(8)	21
Other(1)	183		(116)		67
Total intangible assets	212		(124)		88
Total goodwill and intangible assets	$	14,864	$	(124)	$	14,740
Commercial MSRs(2)	$	609	$	(199)	$	410
	December 31, 2020
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount
Goodwill	$	14,653	N/A		$	14,653
Intangible assets:
PCCR intangibles	148		$	(138)	10
Other(1)	248		(168)		80
Total intangible assets	396		(306)		90
Total goodwill and intangible assets	$	15,049	$	(306)	$	14,743
Commercial MSRs(2)	$	542	$	(175)	$	367

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(1)Primarily consists of intangibles for sponsorship, customer and merchant relationships, partnership, trade name and other contract intangibles.

(2)Commercial MSRs are accounted for under the amortization method on our consolidated balance sheets.

Amortization expense for amortizable intangible assets, which is presented separately in our consolidated statements of income, totaled $5 million and $16 million for the three and nine months ended September 30, 2021, respectively, and $14 million and $52 million for the three and nine months ended September 30, 2020, respectively.

Goodwill

The following table presents changes in carrying amount of goodwill by each of our business segments as of September 30, 2021 and December 31, 2020.

Table 6.2: Goodwill by Business Segments

(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Balance as of December 31, 2020	$	5,088	$	4,645	$	4,920	$	14,653
Other adjustments(1)	(1)		0		0		(1)
Balance as of September 30, 2021	$	5,087	$	4,645	$	4,920	$	14,652

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(1)Represents foreign currency translation adjustments.