Bank of America 2004 Annual Report Download - page 121

120 BANK OF AMERICA 2004
Three Over Over
months three months six months to
(Dollars in millions) or less to six months twelve months Thereafter Total
Certificates of deposit of $100 thousand or more $ 20,253 $ 11,588 $ 17,904 $ 6,410 $ 56,155
Other time deposits of $100 thousand or more 154 117 96 758 1,125
solidated VIEs that engage in leasing or lending activities or real
estate joint ventures. As of December 31, 2004 and 2003, the
amount of assets of these entities was $560 million and $382 mil-
lion, respectively, and the Corporation’s maximum possible loss expo-
sure was $132 million and $131 million, respectively.
Additionally, the Corporation had significant variable interests in
other VIEs that it did not consolidate because it was not deemed to
be the primary beneficiary. In such cases, the Corporation does not
absorb the majority of the entities’ expected losses nor does it
receive a majority of the entities’ expected residual returns, or both.
These entities typically support the financing needs of the
Corporation’s customers by facilitating their access to the commer-
cial paper markets. The Corporation functions as administrator and
provides either liquidity and letters of credit, or derivatives to the VIE.
The Corporation also provides asset management and related serv-
ices to other special purpose vehicles that engage in lending, invest-
ing, or real estate activities. Total assets of these entities at
December 31, 2004 and 2003 were approximately $32.9 billion and
$28.0 billion, respectively; revenues associated with administration,
liquidity, letters of credit and other services were approximately $154
million in 2004 and $94 million in 2003. At December 31, 2004 and
2003, the Corporation’s maximum loss exposure associated with
these VIEs was approximately $25.0 billion and $21.7 billion, respec-
tively, which is net of amounts syndicated.
Management does not believe losses resulting from its involve-
ment with the entities discussed above will be material. See Note 1
of the Consolidated Financial Statements for additional discussion of
special purpose financing entities.
Note 9 Goodwill and Other Intangibles
The following table presents allocated Goodwill at December 31,
2004 and 2003 for each business segment. The increases from
December 31, 2003 were primarily due to the Merger and the acqui-
sition of NPC, which added approximately $33.2 billion and $625 mil-
lion, respectively, of Goodwill.
December 31
(Dollars in millions) 2004 2003
Global Consumer and Small Business Banking $ 22,501 $ 6,000
Global Business and Financial Services 13,269 1,144
Global Capital Markets and Investment Banking 4,500 1,953
Global Wealth and Investment Management 4,727 2,223
All Other 265 135
Total $ 45,262 $11,455
The gross carrying value and accumulated amortization related to
core deposit intangibles and other intangibles at December 31, 2004
and 2003 are presented below:
December 31
2004 2003
Gross Gross
Carrying Accumulated Carrying Accumulated
(Dollars in millions) Value Amortization Value Amortization
Core deposit intangibles $ 3,668 $ 1,354 $1,495 $ 886
Other intangibles 2,256 683 787 488
Total $ 5,924 $ 2,037 $2,282 $1,374
As a result of the Merger, the Corporation recorded $2.2 billion of
core deposit intangibles, $660 million of purchased credit card rela-
tionship intangibles and $409 million of other customer relationship
intangibles. As of December 31, 2004, the weighted average amorti-
zation period for the core deposit intangibles as well as the other
intangibles was approximately 9 years. As a result of the acquisition
of NPC, the Corporation preliminarily allocated $482 million to other
intangibles with a weighted average amortization period of approxi-
mately 10 years as of December 31, 2004. Included in this number
is $84 million related to trade names, to which we have assigned an
indefinite life.
Amortization expense on core deposit intangibles and other
intangibles was $664 million, $217 million and $218 million for
2004, 2003 and 2002, respectively. The Corporation estimates that
aggregate amortization expense will be $809 million, $745 million,
$602 million, $499 million and $393 million for 2005, 2006, 2007,
2008 and 2009, respectively.
Note 10 Deposits
The Corporation had domestic certificates of deposit of $100 thou-
sand or more totaling $56.2 billion and $32.8 billion at December
31, 2004 and 2003, respectively. The Corporation had other domes-
tic time deposits of $100 thousand or more totaling $1.1 billion and
$1.0 billion at December 31, 2004 and 2003, respectively. Foreign
certificates of deposit and other foreign time deposits of $100 thou-
sand or more totaled $28.6 billion and $15.4 billion at December 31,
2004 and 2003, respectively.
The following table presents the maturities of domestic certifi-
cates of deposit of $100 thousand or more and of other domestic
time deposits of $100 thousand or more at December 31, 2004.