SunTrust 2014 Annual Report Download - page 131

Notes to Consolidated Financial Statements, continued
108
Various Company facilities are leased under capital leases
and noncancelable operating leases with initial remaining terms
in excess of one year. The following table presents future
minimum lease payments at December 31, 2014.
(Dollars in millions) Operating
Leases Capital Leases
2015 $205 $2
2016 201 2
2017 183 2
2018 107 2
2019 87 3
Thereafter 328 —
Total minimum lease payments $1,111 11
Less: Amounts representing interest 2
Present value of net minimum lease payments $9
NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
The Company evaluates goodwill for impairment each year as
of September 30, or 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 fair value of a reporting unit is determined by using
discounted cash flow analyses and, when applicable, guideline
company information. The carrying value of a reporting unit is
determined using an equity allocation methodology that
allocates the total equity of the Company to each of its reporting
units considering both regulatory risk-based capital and tangible
equity relative to tangible assets. See Note 1, "Significant
Accounting Policies" for additional information regarding the
Company's goodwill accounting policy.
The Company performed a goodwill impairment analysis
for all of its reporting units with goodwill balances as of
September 30, 2014 and 2013, and based on the results of the
annual goodwill impairment test, the Company determined that
there was no impairment. The Company monitored events and
circumstances during the fourth quarter of 2014 and determined
that due to an increase in the carrying value of the Wholesale
Banking reporting unit, driven primarily by asset growth and
increased total equity of the Company, it was necessary to
perform an interim goodwill impairment analysis for the
Wholesale Banking reporting unit as of December 31, 2014.
Based on the results of the interim goodwill impairment analysis,
the Company determined that there was no impairment.
As discussed in Note 2, "Acquisitions/Dispositions," the
Company completed the sale of its asset management subsidiary,
RidgeWorth, during the second quarter of 2014. Also, during the
year ended December 31, 2013, branch-managed business
banking clients were transferred from Wholesale Banking to
Consumer Banking and Private Wealth Management, resulting
in the reallocation of $300 million in goodwill. The changes in
the carrying amount of goodwill by reportable segment for the
years ended December 31 are as follows:
(Dollars in millions)
Consumer Banking
and Private Wealth
Management Wholesale Banking Total
Balance, January 1, 2014 $4,262 $2,107 $6,369
Acquisition of Lantana Oil and Gas Partners, Inc. — 8 8
Sale of RidgeWorth — (40) (40)
Balance, December 31, 2014 $4,262 $2,075 $6,337
Balance, January 1, 2013 $3,962 $2,407 $6,369
Intersegment transfers 300 (300) —
Balance, December 31, 2013 $4,262 $2,107 $6,369