Capital One 2014 Annual Report Download - page 215

Capital One Financial Corporation (COF)
NOTE 7—GOODWILL AND INTANGIBLE ASSETS
The table below displays the components of goodwill, intangible assets and MSRs as of December 31, 2014 and
2013. Goodwill is presented separately on our consolidated balance sheets. Intangible assets and MSRs are included
in other assets on our consolidated balance sheets.
Table 7.1: Components of Goodwill, Intangible Assets and MSRs(1)
December 31, December 31,
(Dollars in millions) 2014 2013
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,978 $ 13,978
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles . . . . . . . . . . . . . . . . . . . . 972 1,341
Core deposit intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202 331
Other(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 177
Total intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,316 1,849
Total goodwill and intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,294 $ 15,827
MSRs:
Consumer MSRs(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53 $ 73
Commercial MSRs(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 132
Total MSRs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200 $ 205
(1) Certain intangible assets that were fully amortized in prior periods were removed from our consolidated balance sheets.
(2) Primarily consists of brokerage relationship intangibles, partnership and other contract intangibles and trademark/name intangibles. Also
includes certain indefinite-lived intangibles of $4 million as of both December 31, 2014 and 2013.
(3) Represents MSRs related to our Consumer Banking business that are carried at fair value on our consolidated balance sheets.
(4) Represents MSRs related to our Commercial Banking business that are subsequently measured under the amortization method and
periodically assessed for impairment. We recorded $21 million and $3 million amortization expense for the years ended December 31, 2014
and 2013, respectively. None of these MSRs were impaired during the year ended December 31, 2014 and no valuation allowance was
recorded as of December 31, 2014 and 2013.
Goodwill
The following table presents goodwill attributable to each of our business segments as of December 31, 2014 and
2013.
Table 7.2: Goodwill Attributable to Business Segments
Credit Consumer Commercial
(Dollars in millions) Card Banking Banking Total
Balance as of December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,003 $ 4,583 $ 4,318 $13,904
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 3 70 73
Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 (1) 0 1
Balance as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,005 $ 4,585 $ 4,388 $13,978
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 10 0 12
Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) (2) (4) (12)
Balance as of December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,001 $ 4,593 $ 4,384 $13,978
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CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)