Capital One 2012 Annual Report Download - page 224

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other Intangible Assets
In connection with our acquisitions, we recorded intangible assets which include purchased credit card relationship
intangibles, core deposit intangibles, brokerage relations intangibles, partnership contract intangibles, other contract
intangibles, trade mark/name intangibles and other intangibles, which are subject to amortization. At acquisition, the
purchased credit card relationship intangibles reflect the estimated value of existing credit card holder relationships
and the core deposit intangibles reflect the estimated value of deposit relationships.
In connection with the February 17, 2012 acquisition of ING Direct, we recognized core deposit intangibles of
$209 million and other intangibles of $149 million at acquisition. In connection with the May 1, 2012 acquisition
of the HSBC credit card portfolios, we recognized purchased credit card relationship intangibles of $2.2 billion
and other intangibles of $47 million at acquisition.
The following table summarizes our intangible assets subject to amortization as of December 31, 2012 and 2011:
December 31, 2012
(Dollars in millions)
Carrying
Amount of
Assets
Accumulated
Amortization
Net
Carrying
Amount
Remaining
Amortization
Period
Purchased credit card relationship intangibles(1) ........... $2,242 $ (378) $1,864 7.8 years
Core deposit intangibles(2) ............................ 1,771 (1,275) 496 5.6 years
Other(3) ........................................... 354 (143) 211 10.3 years
Total ............................................. $4,367 $(1,796) $2,571 7.6 years
December 31, 2011
(Dollars in millions)
Carrying
Amount of
Assets
Accumulated
Amortization
Net
Carrying
Amount
Remaining
Amortization
Period
Purchased credit card relationship intangibles ............. $ 77 $ (25) $ 52 5.2 years
Core deposit intangibles .............................. 1,562 (1,083) 479 5.9 years
Other(4) ........................................... 160 (81) 79 11.7 years
Total ............................................. $1,799 $(1,189) $610 6.9 years
(1) Includes purchased credit card relationship intangibles with a net carrying amount of $1.8 billion related to the 2012 U.S. card
acquisition in the second quarter of 2012.
(2) Includes core deposit intangibles with a net carrying value amount of $160 million related to the acquisition of ING Direct in the first
quarter of 2012.
(3) Includes brokerage relations intangibles with a net carrying value of $73 million, partnership contract intangibles with a net carrying
value of $42 million, other contract intangibles with a net book value of $36 million, trade mark/name intangibles with a net carrying
value of $26 million and other intangibles with a net book value of $34 million.
(4) Includes brokerage relations intangibles with a net carrying value of $2 million, other contract intangibles with a net book value of $50
million and other intangibles with a net book value of $27 million.
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