Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The table below presents goodwill balances by business segment at December 31, 2015 and 2014. The reporting units utilized for goodwill impairment testing are the operating segments or one level below.




Goodwill ⁽¹⁾

	December 31
(Dollars in millions)	2015		2014
Consumer Banking	$	30,123	$	30,123
Global Wealth & Investment Management	9,698		9,698
Global Banking	23,923		23,923
Global Markets	5,197		5,197
All Other	820		836
Total goodwill	$	69,761	$	69,777


⁽¹⁾	There was no goodwill in LAS at December 31, 2015 and 2014.

For purposes of goodwill impairment testing, the Corporation utilizes allocated equity as a proxy for the carrying value of its reporting units. Allocated equity in the reporting units is comprised of allocated capital plus capital for the portion of goodwill and intangibles specifically assigned to the reporting unit. The goodwill impairment test involves comparing the fair value of each reporting unit to its carrying value, including goodwill, as measured by allocated equity.

Annual Impairment Tests

The Corporation completed its annual goodwill impairment tests as of June 30, 2015 and 2014 for all applicable reporting units. Based on the results of the annual goodwill impairment test, the Corporation determined there was no impairment.

Effective January 1, 2015, the Corporation changed its basis of presentation related to its business segments. The realignment triggered a test for goodwill impairment, which was performed both immediately before and after the realignment. The fair value of the affected reporting units exceeded their carrying value and, accordingly, no goodwill impairment resulted from the realignment.

Intangible Assets

The table below presents the gross and net carrying values and accumulated amortization for intangible assets at December 31, 2015 and 2014.




Intangible Assets ^{(1, 2)}

	December 31
	2015						2014
(Dollars in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Purchased credit card relationships	$	5,450	$	4,755	$	695	$	5,504	$	4,527	$	977
Core deposit intangibles	1,779		1,505		274		1,779		1,382		397
Customer relationships	3,927		2,990		937		4,025		2,648		1,377
Affinity relationships	1,556		1,356		200		1,565		1,283		282
Other intangibles ⁽³⁾	2,143		481		1,662		2,045		466		1,579
Total intangible assets	$	14,855	$	11,087	$	3,768	$	14,918	$	10,306	$	4,612


⁽¹⁾	Excludes fully amortized intangible assets.


⁽²⁾	At December 31, 2015 and 2014, none of the intangible assets were impaired.


⁽³⁾	Includes intangible assets associated with trade names that have an indefinite life and, accordingly, are not amortized.

The tables below present intangible asset amortization expense for 2015, 2014 and 2013, and estimated future intangible asset amortization expense as of December 31, 2015.




Amortization Expense

(Dollars in millions)	2015		2014		2013
Purchased credit card and affinity relationships	$	356	$	415	$	475
Core deposit intangibles	122		140		197
Customer relationships	340		355		371
Other intangibles	16		26		43
Total amortization expense	$	834	$	936	$	1,086




Estimated Future Amortization Expense

(Dollars in millions)	2016		2017		2018		2019		2020
Purchased credit card and affinity relationships	$	298	$	237	$	179	$	121	$	60
Core deposit intangibles	104		90		80		—		—
Customer relationships	325		310		302		—		—
Other intangibles	10		6		4		2		—
Total estimated future amortization expense	$	737	$	643	$	565	$	123	$	60

- 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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