Note 3
|
Wireless Licenses, Goodwill and Other Intangible Assets |
Wireless Licenses
Changes in the carrying amount of Wireless licenses are as follows:
| (dollars in millions) | ||||
|
Balance at January 1, 2012 |
$ | 73,250 | ||
|
Acquisitions (Note 2) |
4,544 | |||
|
Capitalized interest on wireless licenses |
205 | |||
|
Reclassifications, adjustments and other |
(255) | |||
|
|
|
|||
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Balance at December 31, 2012 |
$ | 77,744 | ||
|
Acquisitions (Note 2) |
579 | |||
|
Dispositions (Note 2) |
(2,361) | |||
|
Capitalized interest on wireless licenses |
566 | |||
|
Reclassifications, adjustments and other |
(781) | |||
|
|
|
|||
|
Balance at December 31, 2013 |
$ | 75,747 | ||
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|
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Reclassifications, adjustments and other includes $0.9 billion of Wireless licenses that are classified as held for sale and included in Prepaid expenses and other on our consolidated balance sheet at December 31, 2013 as well as the exchanges of wireless licenses in 2013 and 2012. See Note 2 for additional details.
At December 31, 2013 and 2012, approximately $7.7 billion and $7.3 billion, respectively, of wireless licenses were under development for commercial service for which we were capitalizing interest costs.
The average remaining renewal period of our wireless license portfolio was 5.1 years as of December 31, 2013. See Note 1 for additional details.
Goodwill
Changes in the carrying amount of Goodwill are as follows:
| (dollars in millions) | ||||||||||||
| Wireless | Wireline | Total | ||||||||||
|
Balance at January 1, 2012 |
$ | 17,963 | $ | 5,394 | $ | 23,357 | ||||||
|
Acquisitions (Note 2) |
209 | 551 | 760 | |||||||||
|
Reclassifications, adjustments and other |
– | 22 | 22 | |||||||||
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|
|
|||||||||||
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Balance at December 31, 2012 |
$ | 18,172 | $ | 5,967 | $ | 24,139 | ||||||
|
Acquisitions (Note 2) |
204 | 291 | 495 | |||||||||
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|
|
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Balance at December 31, 2013 |
$ | 18,376 | $ | 6,258 | $ | 24,634 | ||||||
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The increase in Goodwill at Wireless at December 31, 2013 was primarily due to obtaining control of previously unconsolidated wireless partnerships, which were previously accounted for under the equity method and are now consolidated. This resulted in an immaterial gain recorded during the year ended December 31, 2013. The increase in Goodwill at Wireline at December 31, 2013 was primarily due to the acquisition of a provider of content delivery networks.
Other Intangible Assets
The following table displays the composition of Other intangible assets, net:
| (dollars in millions) | ||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
| At December 31, |
Gross Amount |
Accumulated Amortization |
Net Amount |
Gross Amount |
Accumulated Amortization |
Net Amount |
||||||||||||||||||
|
Customer lists (5 to 13 years) |
$ | 3,639 | $ | (2,660 | ) | $ | 979 | $ | 3,556 | $ | (2,338 | ) | $ | 1,218 | ||||||||||
|
Non-network internal-use software (3 to 7 years) |
11,770 | (7,317 | ) | 4,453 | 10,415 | (6,210 | ) | 4,205 | ||||||||||||||||
|
Other (2 to 25 years) |
691 | (323 | ) | 368 | 802 | (292 | ) | 510 | ||||||||||||||||
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Total |
$ | 16,100 | $ | (10,300 | ) | $ | 5,800 | $ | 14,773 | $ | (8,840 | ) | $ | 5,933 | ||||||||||
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The amortization expense for Other intangible assets was as follows:
| Years | (dollars in millions) | |||
|
2013 |
$ | 1,587 | ||
|
2012 |
1,540 | |||
|
2011 |
1,505 | |||
Estimated annual amortization expense for Other intangible assets is as follows:
| Years | (dollars in millions) | |||
|
2014 |
$ | 1,486 | ||
|
2015 |
1,215 | |||
|
2016 |
971 | |||
|
2017 |
784 | |||
|
2018 |
619 | |||