Goodwill and Intangible Assets
|6 Months Ended|
Jun. 30, 2016
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Goodwill and Intangible Assets||
The table below presents goodwill balances by business segment and All Other at June 30, 2016 and December 31, 2015. The reporting units utilized for goodwill impairment testing are the operating segments or one level below. For additional information, see Note 8 – Goodwill and Intangible Assets to the Consolidated Financial Statements of the Corporation's 2015 Annual Report on Form 10-K.
Effective April 1, 2016, the Corporation realigned its business segments. As part of the realignment, the Corporation completed a review of all consumer real estate-secured lending and servicing activities within LAS, Consumer Banking, GWIM and All Other with a view to strategically align the business activities and loans into core and non-core categories, with core loans reflected on the balance sheet of the appropriate business segment and non-core on the balance sheet of All Other. There was no goodwill in LAS at December 31, 2015 and therefore, this realignment had no impact on the allocation of goodwill to the Corporation's reporting units.
During the three months ended June 30, 2016, the Corporation completed its annual goodwill impairment test as of June 30, 2016 for all applicable reporting units. Following the realignment, the Corporation combined the Card Services, Consumer Vehicle Lending and Home Loans reporting units within the Consumer Banking segment into a single Consumer Lending reporting unit, effective June 30, 2016. This combination of reporting units triggered a test for goodwill impairment, which was performed both immediately before and after the combination of reporting units. The Corporation performed this analysis in conjunction with its annual impairment test as of June 30, 2016. Based on the results of the annual goodwill impairment test, the Corporation determined there was no impairment. For more information regarding annual goodwill impairment testing, see Note 8 – Goodwill and Intangible Assets to the Consolidated Financial Statements of the Corporation's 2015 Annual Report on Form 10-K.
The table below presents the gross and net carrying values and accumulated amortization for intangible assets at June 30, 2016 and December 31, 2015.
The table below presents intangible asset amortization expense for the three and six months ended June 30, 2016 and 2015.
The table below presents estimated future intangible asset amortization expense as of June 30, 2016.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef