AT&T Wireless 2013 Annual Report Download - page 52

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
50 | AT&T Inc.
agreement, we paid a breakup fee of $3,000, entered into a
broadband roaming agreement and transferred certain wireless
spectrum with a book value of $962. These agreement
termination charges were included in “Selling, general and
administrative” expenses in our Other segment.
NOTE 6. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows at
December 31:
Lives (years) 2013 2012
Land — $ 1,523 $ 1,689
Buildings and improvements 10-44 31,485 28,939
Central office equipment1 3-10 86,370 86,185
Cable, wiring and conduit 15-50 76,107 80,338
Other equipment 3-15 67,887 61,387
Software 3 8,150 7,957
Under construction — 3,276 4,412
274,798 270,907
Accumulated depreciation
and amortization 163,830 161,140
Property, plant and
equipment – net $110,968 $109,767
1 Includes certain network software.
Our depreciation expense was $17,722 in 2013, $16,933 in
2012 and $16,368 in 2011. Depreciation expense included
amortization of software totaling $2,142 in 2013, $2,130 in
2012 and $2,243 in 2011.
Certain facilities and equipment used in operations are leased
under operating or capital leases. Rental expenses under
operating leases were $3,683 for 2013, $3,507 for 2012, and
$3,414 for 2011. At December 31, 2013, the future minimum
rental payments under noncancelable operating leases for
the years 2014 through 2018 were $3,003, $2,857, $2,694,
$2,458, and $2,233, with $11,707 due thereafter. Certain real
estate operating leases contain renewal options that may be
exercised. Capital leases are not significant.
Pending Disposition
Connecticut Wireline In December 2013, we entered
into an agreement to sell our incumbent local exchange
operations in Connecticut for $2,000 in cash. The transaction
is subject to review by the DOJ, the FCC and the Connecticut
Public Utilities Regulatory Authority and other state
regulatory authorities. We expect the deal to close in the
second half of 2014, subject to customary closing conditions.
These Connecticut operations represent approximately
$1,200 in annual revenues as of 2013. We applied held-for-
sale treatment to the assets and liabilities of the
Connecticut operations, and, accordingly, included the assets
in “Other current assets,” and the related liabilities in
“Accounts payable and accrued liabilities,” on our
consolidated balance sheets. However, the business will not
qualify as discontinued operations as we expect significant
continuing direct cash flows related to the disposed
operations. Assets and liabilities of the Connecticut
operations included the following as of December 31, 2013:
Assets held for sale:
Current assets $ 155
Property, plant and equipment – net 1,289
Goodwill 799
Other assets 17
Total assets $2,260
Liabilities related to assets held for sale:
Current liabilities $ 128
Noncurrent liabilities 480
Total liabilities $ 608
Other
T-Mobile In March 2011, we agreed to acquire from Deutsche
Telekom AG (Deutsche Telekom) all shares of T-Mobile USA, Inc.
(T-Mobile) for approximately $39,000, subject to certain
adjustments. In December 2011, in light of opposition to the
merger from the DOJ and FCC, we and Deutsche Telekom
agreed to terminate the transaction. Pursuant to the purchase
NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amounts of goodwill, by segment (which is the same as the reporting unit for Wireless, Wireline and
Advertising Solutions), for the years ended December 31, 2013 and 2012, were as follows:
Advertising
Wireless Wireline Solutions Other Total
Balance as of January 1, 2012 $ 35,755 $ 33,638 $ 1,059 $ 390 $ 70,842
Goodwill acquired 13 5 — — 18
Other 35 327 (1,059) (390) (1,087)
Balance as of December 31, 2012 35,803 33,970 — — 69,773
Goodwill acquired 305 — — — 305
Held for sale — (799) — — (799)
Other (2) (4) — — (6)
Balance as of December 31, 2013 $36,106 $33,167 $ — $ — $69,273