US Bank 2009 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2009 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

Note 11 Intangible Assets
Intangible assets consisted of the following:
December 31 (Dollars in Millions)
Estimated
Life (a)
Amortization
Method (b) 2009 2008
Balance
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) $ 9,011 $ 8,571
Merchant processing contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 years/8 years SL/AC 473 564
Core deposit benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 years/5 years SL/AC 383 376
Mortgage servicing rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) 1,749 1,194
Trust relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 years/7 years SL/AC 222 277
Other identified intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 years/5 years SL/AC 579 423
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,417 $11,405
(a) Estimated life represents the amortization period for assets subject to the straight line method and the weighted average amortization period for intangibles subject to
accelerated methods. If more than one amortization method is used for a category, the estimated life for each method is calculated and reported separately.
(b) Amortization methods: SL = straight line method
AC = accelerated methods generally based on cash flows
(c) Goodwill is evaluated for impairment, but not amortized. Mortgage servicing rights are recorded at fair value, and are not amortized.
Aggregate amortization expense consisted of the following:
Year Ended December 31 (Dollars in Millions) 2009 2008 2007
Merchant processing contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $117 $136 $154
Core deposit benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 67 68
Trust relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 68 76
Other identified intangibles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 84 78
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $387 $355 $376
The estimated amortization expense for the next five years is as follows:
(Dollars in Millions)
2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $361
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2009 and 2008:
(Dollars in Millions)
Wholesale
Banking
Consumer
Banking
Wealth
Management
Payment
Services
Treasury and
Corporate Support
Consolidated
Company
Balance at December 31, 2007 . . . . . . . . . . . . . . . . . . . $1,330 $2,420 $1,564 $2,333 $ – $7,647
Goodwill acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 813 (2) 12 – 968
Other (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – (44) – (44)
Balance at December 31, 2008 . . . . . . . . . . . . . . . . . . . $1,475 $3,233 $1,562 $2,301 $ – $8,571
Goodwill acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . – 7 2 – 413 422
Other (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 18 – 18
Balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . $1,475 $3,240 $1,564 $2,319 $413 $9,011
(a) Other changes in goodwill include the effect of foreign exchange translation.
92 U.S. BANCORP