Wells Fargo 2005 Annual Report Download - page 81

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79
The changes in the carrying amount of goodwill as allocated to our operating segments for goodwill impairment analysis were:
Note 9: Goodwill
For goodwill impairment testing, enterprise-level goodwill
acquired in business combinations is allocated to reporting units
based on the relative fair value of assets acquired and recorded
in the respective reporting units. Through this allocation, we
assigned enterprise-level goodwill to the reporting units that
are expected to benefit from the synergies of the combination.
We used discounted estimated future net cash flows to evaluate
goodwill reported at all reporting units.
For our goodwill impairment analysis, we allocate all
of the goodwill to the individual operating segments. For
management reporting we do not allocate all of the goodwill
to the individual operating segments: some is allocated at
the enterprise level. See Note 19 for further information
on management reporting. The balances of goodwill for
management reporting were:
(in millions) Community Wholesale Wells Fargo Enterprise Consolidated
Banking Banking Financial Company
December 31, 2004 $ 3,433 $ 1,087 $364 $ 5,797 $ 10,681
December 31, 2005 $3,527 $1,097 $366 $5,797 $10,787
(in millions) Community Wholesale Wells Fargo Consolidated
Banking Banking Financial Company
December 31, 2003 $ 7,286 $ 2,735 $350 $ 10,371
Goodwill from business combinations 5 302 — 307
Foreign currency translation adjustments — — 3 3
December 31, 2004 7,291 3,037 353 10,681
Reduction in goodwill related to divested businesses (31) (3) — (34)
Goodwill from business combinations 125 13 — 138
Realignment of automobile financing business (11) —11—
Foreign currency translation adjustments — — 2 2
December 31, 2005 $7,374 $3,047 $366 $10,787