Huntington Bancshares Incorporated Current report filing

Current report filing

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Other Intangible Assets [Abstract]

7. Goodwill and Other Intangible Assets

Business segments are based on segment leadership structure, which reflects how segment performance is monitored and assessed. During the 2014 first quarter, we reorganized our business segments to drive our ongoing growth and leverage the knowledge of our highly experienced team. We now have five major business segments: Retail and Business Banking, Commercial Banking, Automobile Finance and Commercial Real Estate (AFCRE), Regional Banking and The Huntington Private Client Group (RBHPCG), and Home Lending. A Treasury / Other function includes our insurance brokerage business, along with technology and operations, other unallocated assets, liabilities, revenue, and expense. All periods presented have been reclassified to conform to the current period classification.

A rollforward of goodwill by business segment for the years ended December 31, 2013 and 2012, is presented in the table below:

								Retail &
					Home		Former	Business		Commercial					Treasury/	Huntington
(dollar amounts in thousands)			RBHPCG		Lending (1)		WGH	Banking		Banking			AFCRE		Other	Consolidated
Balance, January 1, 2012		$	98,951	$	---	$	98,951	$	286,824	$	16,169	$	---	$	42,324	$	444,268
	Adjustments / Reallocation		(5,939)		---		(5,939)		---		5,939		---		---		---
Balance, December 31, 2012			93,012		---		93,012		286,824		22,108		---		42,324		444,268
	Adjustments / Reallocation		---		---		---		---		---		---		---		---
Balance, December 31, 2013		$	93,012	$	---	$	93,012	$	286,824	$	22,108	$	---	$	42,324	$	444,268

	(1) As a result of the reorganization in our reported business segments, goodwill was reallocated among the business segments during the 2014 first quarter. As part of the reallocation at that time, $3.0 million was allocated to the Home Lending reporting segment. Immediately following the reallocation, impairment of $3.0 million was recorded in the Home Lending business segment. The allocation of goodwill to the Home Lending reporting segment was not practical at December 31, 2013.

Goodwill is not amortized but is evaluated for impairment on an annual basis as of October 1st each year or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. No impairment was recorded in 2013, 2012 or 2011.

At December 31, 2013 and 2012, Huntington's other intangible assets consisted of the following:

			Gross				Net
			Carrying		Accumulated		Carrying
(dollar amounts in thousands)			Amount		Amortization		Value

December 31, 2013
	Core deposit intangible	$	380,249	$	(335,552)	$	44,697
	Customer relationship		106,974		(58,675)		48,299
	Other		25,164		(24,967)		197
Total other intangible assets		$	512,387	$	(419,194)	$	93,193

December 31, 2012
	Core deposit intangible	$	380,249	$	(302,003)	$	78,246
	Customer relationship		104,574		(50,925)		53,649
	Other		25,164		(24,902)		262
Total other intangible assets		$	509,987	$	(377,830)	$	132,157

The estimated amortization expense of other intangible assets for the next five years is as follows:
		Amortization
(dollar amounts in thousands)		Expense

2014	$	36,711
2015		20,550
2016		7,336
2017		6,854
2018		5,983

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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