Regions Bank 2009 Annual Report Download - page 155

NOTE 8. PREMISES AND EQUIPMENT
A summary of premises and equipment at December 31 is as follows:
2009 2008
(In millions)
Land and land improvements ................................. $ 500 $ 519
Premises ................................................. 1,696 1,619
Furniture and equipment ..................................... 1,143 1,146
Software ................................................. 180 151
Leasehold improvements .................................... 373 317
Construction in progress ..................................... 188 327
4,080 4,079
Accumulated depreciation and amortization ..................... (1,412) (1,293)
$ 2,668 $ 2,786
NOTE 9. INTANGIBLE ASSETS
GOODWILL
Goodwill allocated to each reportable segment as of December 31 is presented as follows:
2009 2008
(In millions)
General Banking/Treasury .................................... $4,691 $4,691
Investment Banking/Brokerage/Trust ............................ 745 740
Insurance .................................................. 121 117
Balance at end of year ........................................ $5,557 $5,548
A summary of goodwill activity at December 31 is presented as follows:
2009 2008
(In millions)
Balance at beginning of year .................................. $5,548 $11,491
Acquisitions of other businesses ............................... 9 38
Impairment ............................................... — (6,000)
Tax adjustments ............................................ — 19
Balance at end of year ....................................... $5,557 $ 5,548
As stated in Note 1, Regions evaluates each reporting unit’s goodwill for impairment on an annual basis in
the fourth quarter, or more often if events or circumstances indicate that there may be impairment. Due to the
deteriorating economic environment in 2008 and 2009, Regions performed interim impairment tests during the
second and third quarters of 2008 and then again in the second and third quarters of 2009 in addition to the 2008
and 2009 annual tests. The results of these interim tests indicated that goodwill was not impaired as of these test
dates.
In the fourth quarter of 2008, Regions performed the Step One analysis for all three reporting units.
Regions’ annual test indicated potential impairment for the General Banking/Treasury reporting unit. Therefore,
Step Two was performed and resulted in the Company recording a goodwill impairment charge of $6.0 billion in
the General Banking/Treasury reporting unit. The primary cause of the goodwill impairment in the General
Banking/Treasury reporting unit was the continued and significant decline in the estimated fair value of the unit.
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