AT&T Wireless 2010 Annual Report Download - page 75

AT&T Inc. 73
NOTE 7. EQUITY METHOD INVESTMENTS
Investments in partnerships, joint ventures and less-than-
majority-owned subsidiaries in which we have significant
influence are accounted for under the equity method.
Our investments in equity affiliates include primarily
international investments. As of December 31, 2010, our
investments in equity affiliates included an 8.4% interest in
Télefonos de México, S.A. de C.V. (Telmex), Mexico’s national
telecommunications company, and a 9.0% interest in
América Móvil, S.A. de C.V. (América Móvil), primarily a
wireless provider in Mexico with telecommunications
investments in the United States and Latin America. We are
a member of a consortium that holds all of the class AA
shares of Telmex stock, representing voting control of the
company. Another member of the consortium, Carso Global
Telecom, S.A.B. de C.V. (CGT), has the right to appoint a
majority of the directors of Telmex. We also are a member
of a consortium that holds all of the class AA shares of
América Móvil stock, representing voting control of the
company. Another member of the consortium has the right
to appoint a majority of the directors of América Móvil.
América Móvil Transactions On June 11, 2010, as part of a
tender offer from América Móvil, we exchanged all our shares
in Telmex Internacional, S.A.B. de C.V. (TI) for América Móvil L
shares at the offered exchange rate of 0.373, which resulted
in a pretax gain of $658. The exchange was accounted for at
fair value. In addition, we paid $202 to purchase additional
shares of América Móvil L shares to maintain our ownership
percentage at a pretransaction level.
Amortized intangible assets are definite-life assets, and as
such, we record amortization expense based on a method that
most appropriately reflects our expected cash flows from
these assets. Amortization expense for definite-life intangible
assets was $2,977 for the year ended December 31, 2010,
$3,666 for the year ended December 31, 2009, and $4,482
for the year ended December 31, 2008. Amortization expense
is estimated to be $2,007 in 2011, $1,325 in 2012, $739
in 2013, $346 in 2014 and $214 in 2015. In 2009, Mobility
wrote off $2,963 in fully amortized intangible assets (primarily
customer lists). We review other long-lived assets for
impairment whenever events or circumstances indicate that
the carrying amount may not be recoverable over the
remaining life of the asset or asset group.
Licenses include wireless FCC licenses of $50,356 at
December 31, 2010, and $48,650 at December 31, 2009,
that provide us with the exclusive right to utilize certain
radio frequency spectrum to provide wireless communications
services. In 2010, we recorded an $85 impairment for a
trade name.
Our other intangible assets are summarized as follows:
December 31, 2010 December 31, 2009
Gross Carrying Accumulated Gross Carrying Accumulated
Other Intangible Assets Amount Amortization Amount Amortization
Amortized intangible assets:
Customer lists and relationships:
AT&T Mobility LLC $ 6,987 $ 5,240 $ 7,729 $ 5,023
BellSouth 9,215 6,807 9,215 5,597
AT&T Corp. 3,134 2,647 3,134 2,377
Other 350 284 524 212
Subtotal 19,686 14,978 20,602 13,209
Other 525 239 778 519
Total $20,211 $15,217 $21,380 $13,728
Indefinite-life intangible assets not subject to amortization:
Licenses $50,372 $48,741
Trade name 5,154 5,235
Total $55,526 $53,976