AT&T Wireless 2008 Annual Report Download - page 63

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AT&T Annual Report 2008
| 61
NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amounts of goodwill, by segment, for the years ended December 31, 2008 and 2007, are as follows:
Advertising
Wireless Wireline & Publishing Other Total
Balance as of January 1, 2007 $ 28,110 $ 32,942 $ 5,664 $ 941 $ 67,657
Goodwill acquired: 2,623 133 171 — 2,927
Goodwill adjustment related to BellSouth acquisition 1,989 (1,554) — — 435
Settlement of IRS audit — (123) — — (123)
Goodwill adjustments for prior-year acquisitions and FIN 48 — (44) (51) (32) (127)
Other (9) (53) 4 2 (56)
Balance as of December 31, 2007 32,713 31,301 5,788 911 70,713
Goodwill acquired 264 185 — — 449
Goodwill adjustments for prior-year acquisitions and FIN 48 990 (95) (26) — 869
Other (116) (10) (68) (8) (202)
Balance as of December 31, 2008 $33,851 $31,381 $5,694 $903 $71,829
Segment goodwill is tested annually for impairment, with any impairments being expensed in that period’s income statement.
During our allocation period, we completed purchase accounting adjustments to the AT&T Mobility and BellSouth goodwill in 2007
and Dobson goodwill in 2008 (see Note 2). Other changes to goodwill include adjustments totaling $10 in 2008 for the tax effect
of stock options exercised.
NOTE 5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows at
December 31:
Lives (years) 2008 2007
Land — $ 1,730 $ 1,860
Buildings 35-45 23,372 23,670
Central office equipment 3-10 75,054 70,632
Cable, wiring and conduit 10-50 72,109 68,676
Other equipment 5-15 34,434 32,606
Software 3-5 8,348 9,298
Under construction — 3,532 3,776
218,579 210,518
Accumulated depreciation
and amortization 119,491 114,628
Property, plant and
equipment – net $ 99,088 $ 95,890
Our depreciation expense was $15,313 in 2008, $15,625 in
2007 and $8,874 in 2006.
Certain facilities and equipment used in operations are
leased under operating or capital leases. Rental expenses
under operating leases were $2,733 for 2008, $2,566 for
2007 and $869 for 2006. At December31,2008, the future
minimum rental payments under noncancelable operating
leases for the years 2009 through 2013 was $2,382, $2,182,
$1,951, $1,763 and $1,596 with $10,570 due thereafter.
Certain real estate operating leases contain renewal options
that may be exercised. Capital leases are not significant.
American Tower Corp. Agreement
In August 2000, we reached an agreement with American
Tower Corp. (American Tower) under which we granted
American Tower the exclusive rights to lease space on a
number of our communications towers. In exchange, we
received a combination of cash and equity instruments as
complete prepayment of rent with the closing of each leasing
agreement. The value of the prepayments were recorded as
deferred revenue and recognized in income as revenue over
the life of the leases. The balance of deferred revenue was
$539 in 2008, $569 in 2007 and $598 in 2006.