Note 9
Goodwill and Other Intangibles
The following table presents allocated Goodwill at December 31, 2004 and 2003 for each business segment. The increases from December 31, 2003 were primarily due to the Merger and the acquisition of NPC, which added approximately $33.2 billion and $625 million, respectively, of Goodwill.
| |
December 31, 2004 |
|
December 31, 2003 |
| |
December 31 |
|  |
(Dollars in millions) |
2004 |
|
2003 |
| |
| Global Consumer and Small Business Banking |
$22,501 |
|
$ 6,000 |
| Global Business and Financial Services |
13,269 |
|
1,144 |
| Global Capital Markets and Investment Banking |
4,500 |
|
1,953 |
| Global Wealth and Investment Management |
4,727 |
|
2,223 |
| All Other |
265 |
|
135 |
|
| Total |
$45,262 |
|
$11,455 |
|
The gross carrying value and accumulated amortization related to core deposit intangibles and other intangibles at December 31, 2004 and 2003 are presented below:
| |
December 31, 2004: Gross Carrying Value |
December 31, 2004: Accumulated Amortization |
December 31, 2003: Gross Carrying Value |
December 31, 2003: Accumulated Amortization |
| |
December 31 |
| |
| |
2004 |
2003 |
| |
(Dollars in millions) |
Gross Carrying
Value |
Accumulated
Amortization |
Gross Carrying
Value |
Accumulated
Amortization |
| |
| Core deposit intangibles |
$3,668 |
$1,354 |
$1,495 |
$ 886 |
| Other intangibles |
2,256 |
683 |
787 |
488 |
|
| Total |
$5,924 |
$2,037 |
$2,282 |
$1,374 |
|
As a result of the Merger, the Corporation recorded $2.2 billion of core deposit intangibles, $660 million of purchased credit card relationship intangibles and $409 million of other customer relationship intangibles. As of December 31, 2004, the weighted average amortization period for the core deposit intangibles as well as the other intangibles was approximately 9 years. As a result of the acquisition of NPC, the Corporation preliminarily allocated $482 million to other intangibles with a weighted average amortization period of approximately 10 years as of December 31, 2004. Included in this number is $84 million related to trade names, to which we have assigned an indefinite life.
Amortization expense on core deposit intangibles and other intangibles was $664 million, $217 million and $218 million for 2004, 2003 and 2002, respectively. The Corporation estimates that aggregate amortization expense will be $809 million, $745 million, $602 million, $499 million and $393 million for 2005, 2006, 2007, 2008 and 2009, respectively.
|
