SunTrust 2006 Annual Report Download - page 107

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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Net premises and equipment included $14.3 million and $15.3 million at December 31, 2006 and 2005,
respectively, related to capital leases. Aggregate rent expense (principally for offices), including
contingent rent expense, amounted to $169.5 million, $153.5 million, and $133.8 million for 2006,
2005, and 2004, respectively. Depreciation/amortization expense for the years ended December 31,
2006, 2005, and 2004 totaled $209.4 million, $211.9 million and $191.6 million, respectively.
Note 9 – Intangible Assets
Goodwill is tested for impairment on an annual basis and as events occur or circumstances change that
would more likely than not reduce the fair value of a reporting unit below its carrying amount. The
Company completed its 2006 annual review as of September 30, 2006, and determined there was no
impairment of goodwill as of this date. No events or circumstances have occurred during the year that
would more likely than not reduce the fair value of a reporting unit below its carrying value. The
changes in the carrying amount of goodwill by reportable segment for the twelve months ended
December 31, 2006 and 2005 are as follows:
(Dollars in thousands) Retail Commercial
Corporate and
Investment
Banking Mortgage
Wealth and
Investment
Management
Corporate
Other and
Treasury Total
Balance, January 1, 2005 $4,875,347 $1,267,452 $148,362 $243,808 $260,905 $10,139 $6,806,013
NCF purchase adjustments (2,189) (6,089) (892) (172) (1,223) (2,804) (13,369)
Purchase of Lighthouse
Partners minority shares - - - - 39,801 - 39,801
SunAmerica contingent
consideration - - - 4,349 - - 4,349
Purchase of AMA, LLC
minority shares - - - - 3,349 - 3,349
Sale of Carswell of Carolina,
Inc. - - - - (4,975) - (4,975)
Balance, December 31, 2005 $4,873,158 $1,261,363 $147,470 $247,985 $297,857 $7,335 $6,835,168
NCF purchase adjustments 116,982 811 (1) 133 (1) (505) 17,419
BancMortgage contingent
consideration - - - 22,500 - - 22,500
Purchase of AMA, LLC
minority shares - - - - 9,534 - 9,534
SunAmerica contingent
consideration - - - 3,906 - - 3,906
Prime Performance contingent
consideration 1,333 - - - - - 1,333
Balance, December 31, 2006 $4,891,473 $1,262,174 $147,469 $274,524 $307,390 $6,830 $6,889,860
1US GAAP requires net assets acquired in a business combination to be recorded at their estimated fair value. Adjustments to the estimated fair value of acquired assets and
liabilities generally occur within one year of the acquisition. However, tax related adjustments are permitted to extend beyond one year due to the degree of estimation and
complexity. The purchase adjustments in the above table represent adjustments to the estimated fair value of the acquired net assets within the guidelines under US GAAP.
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