Wells Fargo 2012 Annual Report Download - page 185

Note 10: Intangible Assets
The gross carrying value of intangible assets and accumulated amortization was:
December 31, 2012 December 31, 2011
Gross Net Gross Net
carrying Accumulated carrying carrying Accumulated carrying
(in millions) value amortization value value amortization value
Amortized intangible assets (1):
MSRs (2) $ 2,317 (1,157) 1,160 2,383 (975) 1,408
Core deposit intangibles 12,836 (6,921) 5,915 15,079 (7,768) 7,311
Customer relationship and other intangibles 3,147 (1,795) 1,352 3,158 (1,519) 1,639
Total amortized intangible assets $ 18,300 (9,873) 8,427 20,620 (10,262) 10,358
Unamortized intangible assets:
MSRs (carried at fair value) (2) $ 11,538 12,603
Goodwill 25,637 25,115
Trademark 14 14
(1) Excludes fully amortized intangible assets.
(2) See Note 9 for additional information on MSRs.
We based our projections of amortization expense shown
below on existing asset balances at December 31, 2012. Future
amortization expense may vary from these projections.
The following table provides the current year and estimated
future amortization expense for amortized intangible assets.
Customer
Core relationship
Amortized deposit and other
(in millions) MSRs intangibles intangibles Total
Year ended December 31, 2012 (actual) $ 233 1,396 286 1,915
Estimate for year ended December 31,
2013 $ 235 1,241 267 1,743
2014 204 1,113 251 1,568
2015 178 1,022 227 1,427
2016 145 919 212 1,276
2017 101 851 195 1,147
For our goodwill impairment analysis, we allocate all of the
goodwill to the individual operating segments. We identify
reporting units that are one level below an operating segment
(referred to as a component), and distinguish these reporting
units based on how the segments and components are managed,
taking into consideration the economic characteristics, nature of
the products and customers of the components. We allocate
goodwill to reporting units based on relative fair value, using
certain performance metrics. See Note 24 for further
information on management reporting.
The following table shows the allocation of goodwill to our
operating segments for purposes of goodwill impairment testing.
Wealth,
Community Wholesale Brokerage and Consolidated
(in millions) Banking Banking Retirement Company
December 31, 2010 $ 17,922 6,475 373 24,770
Reduction in goodwill related to divested businesses - (9) (2) (11)
Goodwill from business combinations 2 354 - 356
December 31, 2011 17,924 6,820 371 25,115
Goodwill from business combinations (2) 524 - 522
December 31, 2012 $ 17,922 7,344 371 25,637
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