Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]


NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS

The table below presents our goodwill, other intangible assets and MSRs as of December 31, 2025 and 2024. Goodwill and other intangible assets are presented separately, while MSRs are included in other assets on our consolidated balance sheets.

Table 7.1: Components of Goodwill, Other Intangible Assets and MSRs


	December 31, 2025
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization Period
Goodwill	$	28,509	N/A		$	28,509	N/A
Other intangible assets (definite lived):
Purchased credit card relationships(1)	10,469		$	(1,274)	9,195		10.3 years

Network and financial partner relationships(2)	1,500		(84)		1,416		10.6 years
Core deposit(2)	1,100		(125)		975		9.4 years
Other(3)	121		(107)		14		4.8 years
Total other intangible assets (definite lived):	13,190		(1,590)		11,600		10.3 years
Other intangible assets (indefinite lived):
Discover Network(2)	2,700		N/A		2,700
Brand / Trade names(2)	2,270		N/A		2,270
Other(4)	8		N/A		8
Total other intangible assets (indefinite lived):	4,978		N/A		4,978
Total other intangible assets	18,168		(1,590)		16,578
Total goodwill and other intangible assets	$	46,677	$	(1,590)	$	45,087
Commercial MSRs(5)	$	646	$	(343)	$	303

	December 31, 2024
(Dollars in millions)	Carrying Amount of Assets		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization Period
Goodwill	$	15,059	N/A		$	15,059	N/A
Other intangible assets (definite lived):
Purchased credit card relationships	369		$	(164)	205		6.1 years





Other(3)	126		(106)		20		5.1 years
Total other intangible assets (definite lived)	495		(270)		225		6.0 years
Other intangible assets (indefinite lived):
Other(4)	8		N/A		8
Total other intangible assets (indefinite lived)	8		N/A		8
Total other intangible assets	503		(270)		233
Total goodwill and other intangible assets	$	15,562	$	(270)	$	15,292
Commercial MSRs(5)	$	653	$	(309)	$	344

__________

(1)Includes a carrying value of $10.1 billion of PCCRs related to the Transaction.

(2)Intangible assets recognized as part of the Transaction.

(3)Primarily consists of intangibles for customer, sponsor and merchant relationships.

(4)Consists of license and domain names.

(5)Commercial MSRs are accounted for under the amortization method under which we recorded $80 million and $77 million of amortization expense for the years ended December 31, 2025 and 2024, respectively.

Intangible Assets

In connection with the Transaction, we recorded intangible assets that include PCCRs, network and financial partner relationships, core deposit, Discover Network and Brand/Trade names. PCCR intangible reflects the value of future activity from existing credit card relationships over their expected lives. Network and financial partner relationships intangible represents the value associated with economics generated by the existing third-party partners. Core deposit intangible represents the economics associated with the favorable funding spread between the acquired core deposit base and alternative sources of funding. Discover Network represents the value associated with the economics generated by the proprietary payment network, including any expected synergies. Brand/Trade names represent the economic benefits of the ability to generate revenue based on the value of the trade names, which include the Discover, Diners Club and PULSE brands. See “Note 2—Business Combinations and Discontinued Operations” for additional information. Other intangible assets were recorded as a result of acquisitions other than the Transaction. There were no impairments of intangible assets in 2025, 2024 and 2023, respectively.

Intangible assets are typically amortized over their respective estimated useful lives on either an accelerated or straight-line basis. The following table summarizes the actual amortization expense recorded for the year ended December 31, 2025, 2024 and 2023, respectively, and the estimated future amortization expense for intangible assets as of December 31, 2025 for the next five fiscal years and thereafter:

Table 7.2: Amortization Expense


(Dollars in millions)	Amortization Expense
Actual for the year ended December 31,
2023	$	82
2024	77
2025	1,326
Estimated future amounts for the year ending December 31,
2026	1,962
2027	1,779
2028	1,595
2029	1,412
2030	1,230
Thereafter	3,622
Total estimated future amounts	$	11,600

Goodwill

The following table presents changes in the carrying amount of goodwill by each of our business segments for the years ended December 31, 2025, 2024 and 2023. We did not recognize any goodwill impairment during 2025, 2024 and 2023, respectively.

Table 7.3: Goodwill by Business Segments


(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total








Balance as of December 31, 2022	$	5,078	$	4,645	$	5,054	$	14,777
Acquisitions	273		0		0		273
Other adjustments(1)	15		0		0		15
Balance as of December 31, 2023	5,366		4,645		5,054		15,065
Other adjustments(1)	(6)		0		0		(6)
Balance as of December 31, 2024	5,360		4,645		5,054		15,059
Acquisitions(2)	6,529		6,895		0		13,424

Other adjustments(1)	26		0		0		26
Balance as of December 31, 2025	$	11,915	$	11,540	$	5,054	$	28,509

__________

(1)Represents foreign currency translation adjustments.

(2)The goodwill associated with the Transaction was allocated to the Credit Card and Consumer Banking segments as of December 31, 2025. See “Note 2—Business Combinations and Discontinued Operations” for further details.

The goodwill impairment test is performed as of October 1 of each year. An impairment of a reporting unit’s goodwill is determined based on the amount by which the reporting unit’s carrying value exceeds its fair value, limited to the amount of goodwill allocated to the reporting unit.

The fair value of reporting units is calculated using a DCF methodology, a form of the income approach. The calculation uses projected cash flows based on each reporting unit’s internal forecast and uses the perpetuity growth method to calculate terminal values. These cash flows and terminal values are then discounted using appropriate discount rates, which are largely based on our external cost of equity with adjustments for the risk inherent in each reporting unit. The carrying amount for a reporting unit is the sum of its respective capital requirements, goodwill and other intangibles balances. Capital is allocated based on each reporting unit’s specific regulatory capital requirements and underlying risks. Consolidated stockholder’s equity in excess of the sum of all reporting unit’s capital requirements that is not identified for future capital needs, such as dividends, share buybacks, or other strategic initiatives, is allocated to the reporting units and the Other category and assumed distributed to equity holders. Our DCF analysis requires management to make judgments about future loan and deposit growth, revenue growth, credit losses, and capital rates. The reasonableness of our fair value calculation is assessed by reference to a market-based approach using comparable market multiples and recent market transactions where available.