SunTrust 2007 Annual Report Download - page 110

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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
Note 9 – Goodwill and Other 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 2007 annual review
based on information that was as of September 30, 2007; however, the analysis included assumptions that considered the
current market conditions. The Company determined there was no impairment of goodwill as of this date and that 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, 2007 and 2006 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, 2006 $4,873,158 $1,261,363 $147,470 $247,985 $297,857 $7,335 $6,835,168
NCF purchase adjustments116,982 811 (1) 133 (1) (505) 17,419
BancMortgage contingent consideration - - - 22,500 - - 22,500
Purchase of GenSpring (formerly 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
NCF purchase adjustments1(7,579) 9,469 (54) (190) 2,418 (6,837) (2,773)
Purchase of GenSpring minority shares - - - - 10,148 - 10,148
SunAmerica contingent consideration - - - 1,368 - - 1,368
Prime Performance contingent
consideration 7,034 - - - - - 7,034
Seix contingent consideration - - - - 42,287 - 42,287
Sale upon merger of Lighthouse Partners
- - - - (48,474) - (48,474)
FIN 48 adoption adjustment 3,042 840 39 138 69 7 4,135
Acquisition of Inlign Wealth
Management - - - - 7,332 - 7,332
Acquisition of TBK Investments, Inc. - - - - 10,576 - 10,576
Balance, December 31, 2007 $4,893,970 $1,272,483 $147,454 $275,840 $331,746 $- $6,921,493
1 SFAS No. 141 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. See Note 1 “Accounting Policies,” to the Consolidated Financial Statements for changes to be
implemented upon adoption of SFAS No. 141( R ).
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