AT&T Wireless 2011 Annual Report Download - page 71

AT&T Inc. 69
Our other intangible assets are summarized as follows:
December 31, 2011 December 31, 2010
Gross Carrying Accumulated Gross Carrying Accumulated
Other Intangible Assets Amount Amortization Amount Amortization
Amortized intangible assets:
Customer lists and relationships:
AT&T Mobility LLC $ 6,845 $ 5,906 $ 6,987 $ 5,240
BellSouth 9,205 7,686 9,215 6,807
AT&T Corp. 2,483 2,205 3,134 2,647
Other 350 329 350 284
Subtotal 18,883 16,126 19,686 14,978
Other 485 258 525 239
Total $19,368 $16,384 $20,211 $15,217
Indefinite-lived intangible assets not subject to amortization:
Licenses $51,374 $50,372
Trade names 4,985 5,154
Total $56,359 $55,526
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 $2,009 for the year ended December 31, 2011,
$2,977 for the year ended December 31, 2010, and $3,666 for
the year ended December 31, 2009. Amortization expense is
estimated to be $1,335 in 2012, $744 in 2013, $347 in 2014,
$217 in 2015, and $123 in 2016. In 2011, we wrote off
approximately $1,130 in fully amortized intangible assets
(primarily customer lists). We review other amortizing
intangible 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.
We review indefinite-lived intangible assets for impairment
annually (see Note 1). Licenses include wireless FCC licenses
of $51,358 at December 31, 2011 and $50,356 at
December 31, 2010, that provide us with the exclusive
right to utilize certain radio frequency spectrum to provide
wireless communications services. In 2011, we completed
our acquisition of spectrum from Qualcomm of $1,925, and
recorded the intended transfer upon regulatory approval
of $962 of spectrum licenses to Deutsche Telekom in
conjunction with the termination of the T-Mobile merger
agreement (see Note 2).
We recorded a $165 impairment in 2011 and an $85
impairment in 2010 for a trade name.
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, 2011, our
investments in equity affiliates included a 9.39% interest in
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 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.
Telmex Transaction During 2011, the Board of Directors of
América Móvil approved and completed a tender offer for the
remaining outstanding shares of Telmex that were not already
owned by América Móvil. In conjunction with the tender of our
shares, we have recorded our portion of América Móvil’s
resulting equity adjustments.
Telmex Internacional 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. (Telmex Internacional) 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.