|
Note 10
Goodwill and Other Intangibles
The following table presents allocated Goodwill at December 31, 2005 and 2004 for each business segment and All Other. The increases from December 31, 2004 were primarily due to the $65 million of goodwill adjustments related to National Processing, Inc. (NPC) and the acquisitions of Works, Inc., which
added approximately $49 million to Goodwill.
|
| December 31
|
| (Dollars in millions) |
|
2005
|
|
2004
|
| Global Consumer and Small Business Banking |
|
$ |
18,491 |
|
$ |
18,453 |
| Global Business and Financial Services |
|
|
16,750 |
| 16,707 |
| Global Capital Markets and Investment Banking |
|
|
4,542 |
| 4,500 |
| Global Wealth and Investment Management |
|
|
5,333 |
| 5,338 |
| All Other |
|
|
238 |
| 264 |
|
|
|
|
|
|
| Total |
|
$ |
45,354 |
|
$ |
45,262 |
|
|
|
|
|
|
The gross carrying value and accumulated amortization related to core deposit intangibles and other intangibles at December 31, 2005 and 2004 are presented below:
|
| December 31
|
| 2005
|
|
2004
|
| (Dollars in millions) |
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
| Core deposit intangibles |
|
$ |
3,661 |
|
$ |
1,881 |
|
$ |
3,668 |
|
$ |
1,354 |
| Other intangibles |
|
|
2,353 |
|
|
939 |
| 2,256 |
| 683 |
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
6,014 |
|
$ |
2,820 |
|
$ |
5,924 |
|
$ |
2,037 |
|
|
|
|
|
|
|
|
|
|
|
|
As a result of the FleetBoston 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. The weighted average amortization
period of these intangibles is approximately nine years. As a result of the acquisition of NPC during 2004, the Corporation allocated $479 million to other intangibles with a weighted average amortization period of approximately 10 years.
Amortization expense on core deposit intangibles and other intangibles was $809 million, $664 million and $217 million for 2005, 2004, and 2003, respectively. The increase for the year ended December 31, 2005 was primarily due to the FleetBoston Merger. The Corporation estimates that aggregate amortization expense will be $746 million, $599
million, $486 million, $385 million and $311 million for 2006, 2007, 2008, 2009 and 2010, respectively.
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