Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS

The table below displays the components of goodwill and other intangible assets subject to amortization as of September 30, 2013 and December 31, 2012. Goodwill is presented separately on our consolidated balance sheets. Other intangible assets are included in other assets on our consolidated balance sheets.

Table 7.1: Components of Goodwill and Other Intangible Assets


	September 30, 2013							December 31, 2012
(Dollars in millions)	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Unamortized intangible assets:
Goodwill	$	13,906		N/A		$	13,906	$	13,904		N/A		$	13,904

Amortized intangible assets:
Purchased credit card relationship intangibles⁽¹⁾		2,125		(682	)		1,443		2,242		(378	)		1,864
Core deposit intangibles		1,771		(1,402	)		369		1,771		(1,275	)		496
Other⁽²⁾		329		(166	)		163		354		(143	)		211

Total amortized intangible assets	$	4,225	$	(2,250	)	$	1,975	$	4,367	$	(1,796	)	$	2,571

⁽¹⁾

During the first quarter of 2013, purchased credit card relationship intangibles with a net carrying value of $89 million related to the Best Buy loan portfolio, which was acquired in the 2012 U.S. card acquisition, was reclassified from intangibles to held for sale. See “Note 4 —Loans” for further discussion of the Portfolio Sale, which closed during the third quarter of 2013.

⁽²⁾	Consists of brokerage relationship intangibles, partnership and other contract intangibles, trademark/name intangibles and other intangibles.

Amortization expense for amortized intangible assets, which is presented separately on our consolidated statements of income, totaled $161 million and $199 million for the three months ended September 30, 2013 and 2012, respectively and $505 million and $418 million for the nine months ended September 30, 2013 and 2012, respectively.

The following table presents goodwill attributable to each of our business segments as of September 30, 2013 and December 31, 2012.

Table 7.2: Goodwill Attributable to Business Segments


	Credit			Consumer		Commercial
(Dollars in millions)	Card			Banking		Banking		Total
Balance as of December 31, 2012	$	5,003		$	4,583	$	4,318	$	13,904
Acquisitions		0			3		0		3
Other adjustments		(1	)		0		0		(1	)

Balance as of September 30, 2013	$	5,002		$	4,586	$	4,318	$	13,906

- 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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