AT&T Wireless 2012 Annual Report Download - page 73

AT&T Inc. | 71
Our other intangible assets are summarized as follows:
December 31, 2012 December 31, 2011
Gross Carrying Accumulated Gross Carrying Accumulated
Other Intangible Assets Amount Amortization Amount Amortization
Amortized intangible assets:
Customer lists and relationships:
AT&T Mobility LLC $ 6,760 $ 6,335 $ 6,845 $ 5,906
BellSouth Corporation 5,825 4,994 9,205 7,686
AT&T Corp. 2,490 2,356 2,483 2,205
Other 351 350 350 329
Subtotal 15,426 14,035 18,883 16,126
Other 304 174 485 258
Total $15,730 $14,209 $19,368 $16,384
Indefinite-lived intangible assets not subject to amortization:
Licenses $52,352 $51,374
Trade names 4,902 4,985
Total $57,254 $56,359
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. Intangible assets that have finite useful
lives are amortized over their useful lives, a weighted-
average of 8.5 years (8.4 years for customer lists and
relationships and 12.1 years for other). Customer lists and
relationships are amortized using primarily the sum-of-the-
months-digits method of amortization over the expected
period in which those relationships are expected to
contribute to our future cash flows. The remaining finite-
lived intangible assets are generally amortized using the
straight-line method of amortization. Amortization expense
for definite-life intangible assets was $1,210 for the year
ended December 31, 2012, $2,009 for the year ended
December 31, 2011, and $2,977 for the year ended
December 31, 2010. Amortization expense is estimated to be
$667 in 2013, $348 in 2014, $218 in 2015, $123 in 2016,
and $57 in 2017. In 2012, we wrote off approximately $191
in fully amortized intangible assets (primarily patents) and
$3,187 of customer lists due to the sale of our Advertising
Solutions segment (see Note 4). 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 $52,318 at December 31, 2012 and $51,358 at
December 31, 2011, that provide us with the exclusive
right to utilize certain radio frequency spectrum to provide
wireless communications services.
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 primarily include
international equity investments, and our 47 percent
equity interest in YP Holdings. As of December 31, 2012,
our investments in equity affiliates included a 9.55 percent
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.
The following table is a reconciliation of our investments in
equity affiliates as presented on our consolidated balance
sheets: