Capital One 2008 Annual Report Download - page 130

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112
Other National Lending sub-segments
National Lending Detail
U.S. Card
Global
Financial
Services
Other
National
Lending
Auto
Finance
International
National
Lending
Total
Balance at December 31, 2006 ........
.
$ 762,284 $ 752,948 $ 763,648 $ 763,648 $  $ 2,278,880
Transfers ..........................................
.
2,242,896 1,044,389 666,740 666,740 3,954,025
Foreign currency translation ............
.
2,795
2,795
Balance at December 31, 2007 ........
.
$ 3,005,180 $ 1,800,132 $ 1,430,388 $ 1,430,388 $  $ 6,235,700
Impact of reporting structure
reorganization..............................
.
756,138 (1,800,132) 956,146 956,146 (87,848)
Goodwill impairment.......................
.
(810,876) (810,876) (810,876)
Foreign currency translation ............
.
(33,677) (33,677) (33,677)
Balance at December 31, 2008 ........
.
$ 3,761,318 $  $ 1,541,981 $ 619,512 $ 922,469 $ 5,303,299
In connection with the acquisitions of Hibernia and North Fork, the Company recorded intangible assets that consisted of core deposit
intangibles, trust intangibles, lease intangibles, and other intangibles, which are subject to amortization. The core deposit and trust
intangibles reflect the estimated value of deposit and trust relationships. The lease intangibles reflect the difference between the
contractual obligation under current lease contracts and the fair market value of the lease contracts at the acquisition date. The other
intangible items relate to customer lists, brokerage relationships and insurance contracts. The following table summarizes the
Companys purchase accounting intangible assets subject to amortization.
December 31, 2008
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Remaining
Amortization
Period
Core deposit intangibles............................................................................
.
$ 1,320,000 $ (497,178) $ 822,822 9.1 years
Lease intangibles.......................................................................................
.
44,862 (16,695) 28,167 18.9 years
Trust intangibles .......................................................................................
.
10,500 (3,326) 7,174 14.9 years
Other intangibles.......................................................................................
.
7,947 (3,850) 4,097 9.9 years
Total ................................................................................................
.
$ 1,383,309 $ (521,049) $ 862,260
December 31, 2007
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Remaining
Amortization
Period
Core deposit intangibles......................................................................... $ 1,320,000 $ (305,606) $ 1,014,394 10.1 years
Lease intangibles.................................................................................... 44,862 (9,725) 35,137 19.9 years
Trust intangibles .................................................................................... 10,500 (2,330) 8,170 15.9 years
Other intangibles.................................................................................... 7,949 (2,836) 5,113 10.9 years
Total ............................................................................................. $ 1,383,311 $ (320,497) $ 1,062,814
Intangibles are amortized on an accelerated basis over their respective estimated useful lives. Intangible assets are recorded in Other
assets on the balance sheet. Amortization expense related to purchase accounting intangibles totaled $200.6 million and $221.4 million
for the years ended December 31, 2008 and 2007, respectively. Amortization expense for intangibles is recorded to non-interest
expense. The weighted average amortization period for all purchase accounting intangibles is 9.4 years.
The following table summarizes the Companys estimated future amortization of intangibles:
Year Ended December 31
Estimated Future Amortization Amounts
2009 ........................................................................
.
$ 178,230
2010 ........................................................................
.
$ 156,476
2011 ........................................................................
.
$ 135,546
2012 ........................................................................
.
$ 114,480
2013 ........................................................................
.
$ 93,104