SunTrust 2008 Annual Report Download - page 118

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
assets, through a variety of valuation techniques that incorporated interest rates, credit or nonperformance risk, as well as
market risk premiums that are indicative of the current economic environment. The estimated values are based on an exit
price and reflect management’s expectations regarding how a market participant would value the assets and liabilities. Based
on this analysis, the Company determined that the implied fair value of the goodwill for the reporting units evaluated was in
excess of the carrying value of the goodwill for those reporting units; therefore, no goodwill impairment was recorded as of
December 31, 2008. This evaluation and resulting conclusion was significantly affected by the estimated fair value of the
loans pertaining to the reporting units that were evaluated, particularly the market risk premium that is a consequence of the
current distressed market conditions.
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2008 and 2007 are
as follows:
(Dollars in thousands) Retail Commercial
Retail &
Commercial Wholesale
Corporate and
Investment Mortgage
Wealth and
Investment
Management
Corporate
Other and
Treasury Total
Balance, January 1, 2007 $4,891,473 $1,262,174 $- $- $147,469 $274,524 $307,390 $6,830 $6,889,860
NCF purchase adjustments 1(7,579) 9,469 - - (54) (190) 2,418 (6,837) (2,773)
Purchase of GenSpring Holdings, Inc. 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
Investments, - - - - - - 7,332 - 7,332
GenSpring’s 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
Intersegment transfers (4,893,970) (1,272,483) 5,780,742 522,667 (147,454) - - 10,498 -
NCF purchase adjustments 1- - (11,782) (119) - (416) 1,502 - (10,815)
Inlign Wealth Management Investments, LLC
purchase price adjustments1- - - - - - 1,540 - 1,540
TBK Investments, Inc. purchase price
adjustments1- - - - - - 1,000 - 1,000
Sale of First Mercantile Trust Company - - - - - - (11,734) - (11,734)
Acquisition of GB&T - - 143,030 - - - - - 143,030
Sale of TransPlatinum Service Corp. - - - - - - - (10,498) (10,498)
Purchase of remaining interest in ZCI - - - - - - 20,712 - 20,712
Sale of majority interest in ZCI - - - - - - (15,433) - (15,433)
Acquisition of Cymric Family Office Service - - - - - - 1,378 - 1,378
SunAmerica contingent consideration - - - - - 2,830 - - 2,830
Balance, December 31, 2008 $- $- $5,911,990 $522,548 $- $278,254 $330,711 $- $7,043,503
1SFAS 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 “Significant Accounting Policies,” to the Consolidated Financial Statements for changes to be implemented
upon adoption of SFAS No. 141( R ).
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