Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 8 – Goodwill and Intangible Assets

Goodwill

The table below presents goodwill balances by business segment at March 31, 2015 and December 31, 2014. 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 2014 Annual Report on Form 10-K.



Goodwill
(Dollars in millions)	March 31 2015		December 31 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	835		836
Total goodwill	$	69,776	$	69,777

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. Allocated capital is based on multiple considerations that include, but are not limited to, risk-weighted assets measured under the Basel 3 Standardized and Advanced approaches, business segment exposures and risk profile, and strategic plans. The goodwill impairment test involves comparing the fair value of each reporting unit with its carrying value, including goodwill, as measured by allocated equity.

Effective January 1, 2015, the Corporation realigned its reporting segments. See Note 1 – Summary of Significant Accounting Principles for additional information. As part of the realignment, the Corporation moved a portion of the Business Banking business, including $1.6 billion of goodwill, from the former Consumer & Business Banking segment to Global Banking. This business constitutes a new reporting unit, Business Banking Regions, within the Global Banking segment. The remaining portion of the Business Banking business will be evaluated with Deposits as a single reporting unit within Consumer Banking. Prior periods have been reclassified to conform to current period presentation. The realignment triggered a test for goodwill impairment, which was performed both immediately before and after the realignment. In performing the goodwill impairment test, the Corporation compared the fair value of the affected reporting units with their carrying value as measured by allocated equity. The fair value of the affected reporting units exceeded their carrying value and, accordingly, no goodwill impairment resulted from the realignment. See Note 1 – Summary of Significant Accounting Principles and Note 8 – Goodwill and Intangible Assets to the Consolidated Financial Statements of the Corporation's 2014 Annual Report on Form 10-K for additional information regarding testing goodwill for impairment.

There was no goodwill in LAS at March 31, 2015 and December 31, 2014.

Intangible Assets

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



Intangible Assets ^{(1, 2)}
	March 31, 2015						December 31, 2014
(Dollars in millions)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Purchased credit card relationships	$	5,457	$	4,555	$	902	$	5,504	$	4,527	$	977
Core deposit intangibles	1,779		1,414		365		1,779		1,382		397
Customer relationships	4,025		2,735		1,290		4,025		2,648		1,377
Affinity relationships	1,557		1,297		260		1,565		1,283		282
Other intangibles	2,045		471		1,574		2,045		466		1,579
Total intangible assets	$	14,863	$	10,472	$	4,391	$	14,918	$	10,306	$	4,612


⁽¹⁾	Excludes fully amortized intangible assets.


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

The table below presents intangible asset amortization expense for the three months ended March 31, 2015 and 2014.



Amortization Expense
	Three Months Ended March 31
(Dollars in millions)	2015		2014
Purchased credit card and Affinity relationships	$	89	$	105
Core deposit intangibles	32		36
Customer relationships	87		91
Other intangibles	5		7
Total amortization expense	$	213	$	239

The table below presents estimated future intangible asset amortization expense as of March 31, 2015.



Estimated Future Amortization Expense
(Dollars in millions)	Remainder of 2015		2016		2017		2018		2019		2020
Purchased credit card and Affinity relationships	$	268	$	299	$	239	$	180	$	121	$	62
Core deposit intangibles	91		104		90		80		—		—
Customer relationships	253		325		310		302		—		—
Other intangibles	10		9		6		3		2		—
Total estimated future amortization expense	$	622	$	737	$	645	$	565	$	123	$	62

- 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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