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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | NOTE 10 - GOODWILL AND INTANGIBLE ASSETS Goodwill is the purchase premium associated with the acquisition of a business and is assigned to the Company’s reporting units at the acquisition date. A reporting unit is a business operating segment or a component of a business operating segment. The Company has identified and assigned goodwill to two reporting units, Consumer Banking and Commercial Banking, based upon reviews of the structure of the Company’s executive team and supporting functions, resource allocations and financial reporting processes. Goodwill no longer retains its association with a particular acquisition once assigned to a reporting unit, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. Goodwill is subject to an annual impairment test and not amortized. Goodwill is reviewed for impairment annually as of October 31 st and in interim periods when events or changes indicate the carrying value of one or more reporting units may not be recoverable. The Company has the option of performing a qualitative assessment of goodwill to determine whether it is more likely than not that the fair value of each reporting unit is less than the carrying value. If it is more likely than not that the fair value exceeds the carrying value, then no further testing is necessary; otherwise, a quantitative assessment of goodwill must be performed. The Company may elect to bypass the qualitative assessment and perform a quantitative assessment, which is used to identify potential impairment and involves comparing each reporting unit’s fair value to its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value inclusive of goodwill, applicable goodwill is deemed not to be impaired. If the carrying value of the reporting unit inclusive of goodwill exceeds fair value, an impairment loss is recognized for the excess, establishing a new basis in the goodwill, and cannot exceed the amount of goodwill assigned to the reporting unit. Subsequent reversal of goodwill impairment losses is not permitted. The fair value of the Company’s reporting units is determined using a combination of income and market-based approaches. The Company relies on several assumptions to estimate the fair value of its reporting units under the income-based approach including discount rate, projected loan losses, income tax and capital retention rates. The Company performed a quantitative goodwill impairment assessment in the fourth quarter of 2023 as part of its annual impairment assessment. Based on this quantitative assessment, the Company concluded that the estimated fair value of the Consumer Banking and Commercial Banking reporting units exceeded their carrying value; therefore, the Company determined that there was no impairment to the carrying value of its goodwill as of December 31, 2023. The Commercial Banking reporting unit’s fair value exceeded its carrying value by approximately 10%. The Company monitored events and circumstances during the period from October 31, 2023 through December 31, 2023, including macroeconomic and market factors, industry and banking sector events, Company-specific performance indicators, a comparison of the Company’s forecast and assumptions to those used in its October 31, 2023 quantitative impairment test, and the sensitivity of the October 31, 2023 quantitative test results to changes in assumptions through December 31, 2023. Based on these considerations, the Company concluded that it was not more-likely-than-not that the fair value of either of its reporting units is below its respective carrying amount as of December 31, 2023. Changes in the carrying value of goodwill for the years ended December 31, 2023 and 2022 are presented below.
(dollars in millions) | Consumer Banking |  | Commercial Banking |  | Total
Balance at December 31, 2021 | $2,258 |  |  | $4,858 |  |  | $7,116 |
Business acquisitions | 415 |  |  | 642 |  |  | 1,057 |
Balance at December 31, 2022 | $2,673 |  |  | $5,500 |  |  | $8,173 |
Business acquisitions | 5 |  |  | 10 |  |  | 15 |
Balance at December 31, 2023 | $2,678 |  |  | $5,510 |  |  | $8,188 |
Accumulated impairment losses related to the Consumer Banking and Commercial Banking reporting units totaled $5.9 billion and $50 million, respectively, at December 31, 2023 and 2022. No impairment was recorded for the years ended December 31, 2023, 2022 or 2021. Other Intangibles Other intangible assets are recognized separately from goodwill if the asset arises as a result of contractual rights or if the asset is capable of being separated and sold, transferred or exchanged. These assets are amortized on a straight-line basis with the exception of core deposits, which are amortized using an accelerated methodology, and are subject to an annual impairment evaluation. Amortization expense is recorded in other operating expense in the Consolidated Statements of Operations. A summary of the carrying value of intangible assets is presented below.
|  | December 31, 2023 |  | December 31, 2022
(dollars in millions) | Amortizable Lives (years) | Gross | Accumulated Amortization | Net |  | Gross | Accumulated Amortization | Net
Core deposits | 10 | $144 |  | $44 |  | $100 |  |  | $144 |  | $20 |  | $124 |
Acquired technology | 5 - 7 | 23 |  | 21 |  | 2 |  |  | 23 |  | 19 |  | 4 |
Acquired relationships | 2 - 15 | 52 |  | 26 |  | 26 |  |  | 54 |  | 21 |  | 33 |
Naming Rights | 5 - 10 | 33 |  | 12 |  | 21 |  |  | 33 |  | 7 |  | 26 |
Other | 2 - 8 | 18 |  | 10 |  | 8 |  |  | 17 |  | 7 |  | 10 |
Total |  | $270 |  | $113 |  | $157 |  |  | $271 |  | $74 |  | $197 |
As of December 31, 2023, all of the Company’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $42 million, $41 million and $11 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company’s projection of amortization expense is based on balances as of December 31, 2023. Future amortization expense may vary from these projections. Estimated intangible asset amortization expense for the next five years is as follows:
Year | (dollars in millions)
2024 | $35 |
2025 | 32 |
2026 | 28 |
2027 | 24 |
2028 | 17 |

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