Wells Fargo 2014 Annual Report Download - page 196

Note 10: Intangible Assets
The gross carrying value of intangible assets and accumulated
amortization was:
December 31, 2014 December 31, 2013
Gross Net Gross
carrying Accumulated carrying carrying Accumulated Net carrying
(in millions) value amortization value value amortization value
Amortized intangible assets (1):
MSRs (2) $ 2,906 (1,664) 1,242 2,639 (1,410) 1,229
Core deposit intangibles 12,834 (9,273) 3,561 12,834 (8,160) 4,674
Customer relationship and other intangibles 3,179 (2,322) 857 3,145 (2,061) 1,084
Total amortized intangible assets $ 18,919 (13,259) 5,660 18,618 (11,631) 6,987
Unamortized intangible assets:
MSRs (carried at fair value) (2) $ 12,738 15,580
Goodwill 25,705 25,637
Trademark 14 14
(1) Excludes fully amortized intangible assets.
(2) See Note 9 (Mortgage Banking Activities) for additional information on MSRs.
The following table provides the current year and estimated existing asset balances at December 31, 2014. Future
future amortization expense for amortized intangible assets. We amortization expense may vary from these projections.
based our projections of amortization expense shown below on
Customer
relationship and
Core deposit other
(in millions) Amortized MSRs intangibles intangibles Total
Year ended December 31, 2014 (actual) $ 254 1,113 261 1,628
Estimate for year ended December 31,
2015 $ 240 1,022 225 1,487
2016 202 919 211 1,332
2017 160 851 197 1,208
2018 129 769 187 1,085
2019 113 — 12 125
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. At the time we
acquire a business, we allocate goodwill to applicable reporting
units based on their relative fair value, and if we have a
significant business reorganization, we may reallocate the
goodwill. See Note 24 (Operating Segments) for further
information on management reporting.
The following table shows the allocation of goodwill to our
reportable operating segments for purposes of goodwill
impairment testing.
(in millions) Community Banking Wholesale Banking
Wealth,
Brokerage and
Retirement Consolidated Company
December 31, 2012 $ 17,922 7,344 371 25,637
December 31, 2013
Reduction in goodwill related to divested businesses
Goodwill from business combinations
$ 17,922
—
—
7,344
(11)
87
371
—
—
25,637
(11)
87
Other (8) — — (8)
December 31, 2014 $ 17,914 7,420 371 25,705
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