Capital One 2015 Annual Report Download - page 186

CAPITAL ONE FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
167 Capital One Financial Corporation (COF)
NOTE 8—GOODWILL AND INTANGIBLE ASSETS
The table below displays the components of goodwill, intangible assets and MSRs as of December 31, 2015 and 2014. Goodwill
is presented separately on our consolidated balance sheets. Intangible assets and MSRs are included in other assets on our
consolidated balance sheets.
Table 8.1: Components of Goodwill, Intangible Assets and MSRs
December 31, 2015
(Dollars in millions)
Carrying
Amount of
Assets(1) Accumulated Amortization(1)
Net
Carrying
Amount
Remaining
Amortization
Period
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,480 N/A $ 14,480 N/A
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles. . . . . . . 2,156 $ (1,467) 689 5.1 years
Core deposit intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,771 (1,662) 109 2.9 years
Other(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378 (135) 243 9.6 years
Total intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,305 (3,264) 1,041 5.9 years
Total goodwill and intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,785 $ (3,264) $ 15,521
MSRs:
Consumer MSRs(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68 N/A $ 68
Commercial MSRs(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 $ (51) 161
Total MSRs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 280 $ (51) $ 229
December 31, 2014
(Dollars in millions)
Carrying
Amount of
Assets(1) Accumulated Amortization(1)
Net
Carrying
Amount
Remaining
Amortization
Period
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,978 N/A $ 13,978 N/A
Intangible assets:
Purchased credit card relationship (“PCCR”) intangibles. . . . . . . 2,124 $ (1,152) 972 6.0 years
Core deposit intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,771 (1,569) 202 3.8 years
Other(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 (158) 142 9.6 years
Total intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,195 (2,879) 1,316 6.1 years
Total goodwill and intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,173 $ (2,879) $ 15,294
MSRs:
Consumer MSRs(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 53 N/A $ 53
Commercial MSRs(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 $ (24) 147
Total MSRs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 224 $ (24) $ 200
__________
(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 trade name intangibles.
(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 accounted for under the amortization method and periodically assessed
for impairment. We recorded $27 million and $21 million of amortization expense for the years ended December 31, 2015 and 2014, respectively.