AT&T Wireless 2014 Annual Report Download - page 56

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Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
54
|
AT&T INC.
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 and Wireline)
were as follows:
Wireless Wireline Total
Balance as of January 1, 2013 $ 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
Goodwill acquired 367 — 367
Other (4) 56 52
Balance as of December 31, 2014 $36,469 $33,223 $69,692
The majority of our goodwill acquired during 2014 related to our acquisition of Leap (see Note 5). Other changes to
our goodwill during 2014 include adjustments related to closing the sale of our Connecticut operations (see Note 5).
Changes to goodwill during 2013 resulted from the acquisition of ATNI and the held for sale adjustment to goodwill
in conjunction with the sale of our Connecticut operations (see Note 5).
Our other intangible assets are summarized as follows:
December 31, 2014 December 31, 2013
Gross Carrying Accumulated Gross Carrying Accumulated
Other Intangible Assets Amount Amortization Amount Amortization
Amortized intangible assets:
Customer lists and relationships:
Wireless Acquisitions $ 1,082 $ 550 $ 982 $ 771
BellSouth Corporation 5,825 5,559 5,825 5,317
AT&T Corp. 56 42 2,482 2,438
Subtotal 6,963 6,151 9,289 8,526
Other 275 189 284 169
Total $ 7,238 $6,340 $ 9,573 $8,695
Indefinite-lived intangible assets not subject to amortization:
Licenses $60,824 $56,433
Trade names 5,241 4,901
Total $66,065 $61,334
In 2014, we wrote off approximately $2,850 of fully
amortized intangible assets (primarily customer lists).
In 2013, we wrote off approximately $6,217 of 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 that provide us with the exclusive right to utilize
certain radio frequency spectrum to provide wireless
communications services.
As discussed in Note 5, license additions in 2014 were
primarily related to the Leap acquisition, 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 12.1 years for other). Amortization expense for
definite-life intangible assets was $500 for the year
ended December 31, 2014, $672 for the year ended
December 31, 2013, and $1,210 for the year ended
December 31, 2012. Amortization expense is estimated
to be $350 in 2015, $244 in 2016, $177 in 2017, $57 in
2018, and $28 in 2019.