Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The table below presents goodwill balances by reporting unit and All Other at June 30, 2018 and December 31, 2017. The reporting units utilized for goodwill impairment testing are the operating segments or one level below.




Goodwill

(Dollars in millions)	June 30 2018		December 31 2017
Deposits	$	18,414	$	18,414
Consumer Lending	11,709		11,709
Consumer Banking	30,123		30,123
U.S. Trust	2,917		2,917
Merrill Lynch Global Wealth Management	6,760		6,760
Global Wealth & Investment Management	9,677		9,677
Global Commercial Banking	16,146		16,146
Global Corporate and Investment Banking	6,231		6,231
Business Banking	1,546		1,546
Global Banking	23,923		23,923
Global Markets	5,182		5,182
All Other	46		46
Total goodwill	$	68,951	$	68,951

For the goodwill impairment test as of June 30, 2018, the Corporation used qualitative assessments. For additional information, see Note 1 – Summary of Significant Accounting Principles. The Corporation completed its annual goodwill impairment test as of June 30, 2018 for all applicable reporting units. Based on the results of the annual goodwill impairment test, the Corporation determined there was no impairment.

Intangible Assets

The table below presents the gross and net carrying values and accumulated amortization for intangible assets at June 30, 2018 and December 31, 2017.




Intangible Assets ^{(1, 2)}

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
(Dollars in millions)	June 30, 2018						December 31, 2017
Purchased credit card and affinity relationships	$	5,919	$	5,682	$	237	$	5,919	$	5,604	$	315
Core deposit and other intangibles ⁽³⁾	3,835		2,181		1,654		3,835		2,140		1,695
Customer relationships	3,886		3,735		151		3,886		3,584		302
Total intangible assets	$	13,640	$	11,598	$	2,042	$	13,640	$	11,328	$	2,312


⁽¹⁾	Excludes fully amortized intangible assets.


⁽²⁾	At June 30, 2018 and December 31, 2017, none of the intangible assets were impaired.


⁽³⁾	Includes $1.6 billion at both June 30, 2018 and December 31, 2017 of intangible assets associated with trade names that have an indefinite life and, accordingly, are not amortized.

Amortization of intangibles expense was $135 million and $269 million for the three and six months ended June 30, 2018 compared to $160 million and $322 million for the same periods in 2017. The Corporation estimates aggregate amortization expense will be $268 million for the remainder of 2018, $105 million for 2019, $53 million for 2020 and none for the years thereafter.

- 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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