PNC Bank 2010 Annual Report Download - page 151
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OTE
9G
OODWILL AND
O
THER
I
NTANGIBLE
A
SSETS
Changes in goodwill by business segment during 2009 and 2010 follow:
Changes in Goodwill by Business Segment (a)
In millions
Retail
Banking
Corporate &
Institutional
Banking
Asset
Management
Group
Black-
Rock
Residential
Mortgage
Banking Other (b) Total
December 31, 2008 $5,056 $2,521 $14 $ 44 $ 1,233 $ 8,868
Acquisition-related 313 235 54 $43 10 655
Other (c) (18) (18)
December 31, 2009 5,369 2,756 68 26 43 1,243 9,505
Sale of GIS (1,232) (1,232)
Other (c) (67) (28) (6) (12) (11) (124)
December 31, 2010 $5,302 $2,728 $62 $ 14 $43 $ — $ 8,149
(a) The Distressed Assets Portfolio business segment does not have any goodwill allocated to it.
(b) Includes goodwill related to GIS prior to the sale of GIS on July 1, 2010.
(c) Includes BlackRock.
Changes in goodwill and other intangible assets during 2010
follow:
Summary of Changes in Goodwill and Other Intangible
Assets
In millions Goodwill
Customer-
Related
Servicing
Rights
December 31, 2009 $ 9,505 $1,145 $2,259
Additions/adjustments:
Sale of GIS (1,232) (49)
Other (124) 4
Mortgage and other loan
servicing rights (216)
Sale of servicing rights (192)
Impairment charge (40)
Amortization (197) (110)
December 31, 2010 $ 8,149 $ 903 $1,701
See Note 2 Divestiture regarding our July 1, 2010 sale of GIS.
We conduct a goodwill impairment test on our reporting units
at least annually or more frequently if any adverse triggering
events occur. Based on the results of our analysis, there were
no impairment charges related to goodwill recognized in 2010,
2009 or 2008. The fair value of our reporting units is
determined by using discounted cash flow and market
comparability methodologies.
The purchase price allocation for the National City acquisition
was completed as of December 31, 2009 with goodwill of
$647 million recognized.
Our investment in BlackRock changes when BlackRock
repurchases its shares in the open market or issues shares for
an acquisition or pursuant to its employee compensation plans.
We adjust goodwill when BlackRock repurchases its shares at
an amount greater (or less) than book value per share which
results in an increase (or decrease) in our percentage
ownership interest.
The gross carrying amount, accumulated amortization and net
carrying amount of other intangible assets by major category
consisted of the following:
Other Intangible Assets
In millions
December 31
2010
December 31
2009
Customer-related and other intangibles
Gross carrying amount $1,524 $1,742
Accumulated amortization (621) (597)
Net carrying amount $ 903 $1,145
Mortgage and other loan servicing rights
Gross carrying amount $2,293 $2,729
Valuation allowance (40)
Accumulated amortization (552) (470)
Net carrying amount $1,701 $2,259
Total $2,604 $3,404
While certain of our other intangible assets have finite lives
and are amortized primarily on a straight-line basis, certain
core deposit intangibles are amortized on an accelerated basis.
For customer-related and other intangibles, the estimated
remaining useful lives range from less than one year to 10
years, with a weighted-average remaining useful life of 9
years.
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