Bank of America 2006 Annual Report Download - page 125

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. These entities typically support the
financing needs of the Corporation’s customers by facilitating their access
to the commercial paper markets. The Corporation functions as admin-
istrator and provides either liquidity and letters of credit, or derivatives to
the VIE. The Corporation also provides asset management and related
services to or invests in other special purpose vehicles that engage in
lending, investing, or real estate activities. Total assets of these entities
at December 31, 2006 and 2005 were approximately $51.9 billion and
$36.1 billion. Revenues associated with administration, liquidity, letters of
credit and other services were approximately $136 million and $122 mil-
lion for the year ended December 31, 2006 and 2005. At December 31,
2006 and 2005, in the unlikely event that all of the assets in the VIEs
become worthless, the Corporation’s maximum loss exposure associated
with these VIEs would be approximately $46.0 billion and $30.4 billion,
which is net of amounts syndicated.
Management does not believe losses resulting from the Corpo-
ration’s involvement with the entities discussed above will be material.
See Note 1 of the Consolidated Financial Statements for additional dis-
cussion of special purpose financing entities.
Note 10 – Goodwill and Intangible Assets
The following table presents allocated Goodwill at December 31, 2006
and 2005 for each business segment and All Other.
December 31
(Dollars in millions) 2006 2005
Global Consumer and Small Business Banking $38,760 $18,491
Global Corporate and Investment Banking 21,331 21,292
Global Wealth and Investment Management 5,333 5,333
All Other 238 238
Total $65,662 $45,354
The gross carrying values and accumulated amortization related to
Intangible Assets at December 31, 2006 and 2005 are presented below:
December 31
2006 2005
(Dollars in millions)
Gross
Carrying
Value
Accumulated
Amortization
Gross
Carrying
Value
Accumulated
Amortization
Purchased credit card
relationships
$ 6,790 $1,159 $ 977 $ 450
Core deposit intangibles 3,850 2,396 3,661 1,881
Affinity relationships 1,650 205 ––
Other intangibles 1,525 633 1,376 489
Total $13,815 $4,393 $6,014 $2,820
For information on the impact of the MBNA merger, see Note 2 of the
Consolidated Financial Statements.
Amortization of Intangibles expense was $1.8 billion, $809 million
and $664 million in 2006, 2005 and 2004, respectively. The increase for
the year ended December 31, 2006 was primarily due to the MBNA merg-
er. The Corporation estimates the aggregate amortization expense will be
approximately $1.5 billion, $1.3 billion, $1.2 billion, $1.0 billion and $900
million for 2007, 2008, 2009, 2010 and 2011, respectively.
Note 11 – Deposits
The Corporation had domestic certificates of deposit of $100 thousand or more totaling $72.5 billion and $47.0 billion at December 31, 2006 and 2005.
The Corporation had other domestic time deposits of $100 thousand or more totaling $1.9 billion and $1.4 billion at December 31, 2006 and 2005. For-
eign certificates of deposit and other foreign time deposits of $100 thousand or more totaled $62.1 billion and $38.8 billion at December 31, 2006 and
2005.
Time deposits of $100 thousand or more
(Dollars in millions)
Three
months or
less
Over three
months to six
months
Over six
months to
twelve months Thereafter Total
Domestic certificates of deposit $33,540 $14,205 $20,794 $4,006 $72,545
Domestic other time deposits 300 364 399 885 1,948
Foreign certificates of deposit and other time deposits 55,649 4,569 906 971 62,095
At December 31, 2006, the scheduled maturities for total time deposits were as follows:
(Dollars in millions) Domestic Foreign Total
Due in 2007 $154,509 $88,396 $242,905
Due in 2008 7,283 218 7,501
Due in 2009 4,590 – 4,590
Due in 2010 2,179 1 2,180
Due in 2011 807 2 809
Thereafter 959 1,187 2,146
Total $ 170,327 $ 89,804 $ 260,131
Bank of America 2006 123