Annual report pursuant to Section 13 and 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.10.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS
Business segments are based on segment leadership structure, which reflects how segment performance is monitored and assessed. We have four major business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group (RBHPCG). The Treasury / Other function includes technology and operations, other unallocated assets, liabilities, revenue, and expense.
A rollforward of goodwill by business segment for the years ended December 31, 2018 and 2017, is presented in the table below:
 
Consumer &
 
 
 
 
 
 
 
 
 
 
 
Business
 
Commercial
 
Vehicle
 
 
 
Treasury/
 
Huntington
(dollar amounts in millions)
Banking
 
Banking
 
Finance
 
RBHPCG
 
Other
 
Consolidated
Balance, January 1, 2017
$
1,398

 
$
453

 
$
—

 
$
142

 
$
—

 
$
1,993

Adjustments
—

 
(28
)
 
—

 
28

 
—

 
—

Balance, December 31, 2017
1,398

 
425

 
—

 
170

 
—

 
1,993

Goodwill acquired during the period
—

 
1

 
—

 
—

 
—

 
1

Adjustments
(5
)
 
—

 
—

 
—

 
—

 
(5
)
Balance, December 31, 2018
$
1,393

 
$
426

 
$
—

 
$
170

 
$
—

 
$
1,989


Huntington announced a change in its executive leadership team, which became effective at the end of 2017. As a result, Commercial Real Estate is now included as an operating unit in the Commercial Banking segment. During the 2017 second quarter, the previously reported Home Lending segment was included as an operating unit within the Consumer and Business Banking segment, and the Insurance operating unit previously included in Commercial Banking was realigned to RBHPCG. As a result of these changes, Huntington reclassified a net $28 million of goodwill from the Commercial Banking segment to the RBHPCG segment.
On October 1, 2018, Huntington completed its acquisition of HSE. As part of the transaction, Huntington recorded $1 million of goodwill.
During the fourth quarter of 2018, Huntington reclassified $5 million of goodwill in the Consumer & Business Banking segment related to the held for sale disposal group.
Goodwill is not amortized but is evaluated for impairment on an annual basis at October 1 of each year or whenever events or changes in circumstances indicate the carrying value may not be recoverable. No impairment was recorded in 2018 or 2017.
At December 31, 2018 and 2017, Huntington’s other intangible assets consisted of the following:
(dollar amounts in millions)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Value
December 31, 2018
 
 
 
 
 
Core deposit intangible
$
314

 
$
(93
)
 
$
221

Customer relationship
182

 
(122
)
 
60

Total other intangible assets
$
496

 
$
(215
)
 
$
281

December 31, 2017
 
 
 
 
 
Core deposit intangible
$
325

 
$
(61
)
 
$
264

Customer relationship
190

 
(108
)
 
82

Total other intangible assets
$
515

 
$
(169
)
 
$
346


The estimated amortization expense of other intangible assets for the next five years is as follows:
(dollar amounts in millions)
Amortization
Expense
2019
$
49

2020
41

2021
38

2022
36

2023
34