AT&T Wireless 2013 Annual Report Download - page 53

AT&T Inc. | 51
also included a reclassification of goodwill due to segment
reclassification to better align goodwill with operations.
In 2011, we recorded a $2,745 goodwill impairment in the
Advertising Solutions segment, triggered by declining
revenues in our directory business and the directory industry
as a whole, and we also recorded a $165 impairment for a
trade name.
The held for sale adjustment to goodwill in 2013 was
the result of a goodwill allocation in conjunction with our
pending sale of our Connecticut operations. Our goodwill
acquired during 2013 primarily related to our acquisition
of ATNI (see Note 5). Changes to goodwill during 2012
primarily resulted from the sale of the Advertising Solutions
segment (see Note 5). Changes in goodwill during 2012
Our other intangible assets are summarized as follows:
December 31, 2013 December 31, 2012
Gross Carrying Accumulated Gross Carrying Accumulated
Other Intangible Assets Amount Amortization Amount Amortization
Amortized intangible assets:
Customer lists and relationships:
AT&T Mobility LLC $ 982 $ 771 $ 6,760 $ 6,335
BellSouth Corporation 5,825 5,317 5,825 4,994
AT&T Corp. 2,482 2,438 2,490 2,356
Other — — 351 350
Subtotal 9,289 8,526 15,426 14,035
Other 284 169 304 174
Total $ 9,573 $8,695 $15,730 $14,209
Indefinite-lived intangible assets not subject to amortization:
Licenses $56,433 $52,352
Trade names 4,901 4,902
Total $61,334 $57,254
We review indefinite-lived intangible assets for impairment
annually (see Note 1). Licenses include wireless FCC
licenses of $56,399 at December 31, 2013 and $52,318
at December 31, 2012, that provide us with the exclusive
right to utilize certain radio frequency spectrum to provide
wireless communications services.
NOTE 8. 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 our
international equity investment, América Móvil, and our
interest in YP Holdings. Investments in equity affiliates
also include our investment in our mobile payment joint
venture, marketed as ISIS.
As discussed in Note 5, most of our license additions in
2013 were related to a spectrum swap and various business
acquisitions, with the remainder originating from various
spectrum license purchases.
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, over a weighted-average of 9.8 years
(9.7 years for customer lists and relationships and 12.2 years
for other). Amortization expense for definite-life intangible
assets was $672 for the year ended December 31, 2013,
$1,210 for the year ended December 31, 2012, and $2,009
for the year ended December 31, 2011. Amortization
expense is estimated to be $364 in 2014, $224 in 2015,
$127 in 2016, $60 in 2017, and $34 in 2018. In 2013, we
wrote off approximately $6,217 of fully amortized intangible
assets (primarily customer lists). 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 5).
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.