AT&T Wireless 2015 Annual Report Download - page 60

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
58 | AT&T INC.
from these assets, over a weighted-average of 8.6 years
(9.2 years for customer lists and relationships and 4.2 years
for amortizing trade names and other). Amortization
expense for definite-life intangible assets was $2,728 for
the year ended December 31, 2015, $500 for the year
ended December 31, 2014 and $672 for the year ended
December 31, 2013. Amortization expense is estimated
to be $5,207 in 2016, $4,623 in 2017, $3,580 in 2018,
$2,521 in 2019, and $2,041 in 2020.
In 2015, we wrote off approximately $1,483 of fully
amortized intangible assets (primarily customer lists).
In 2014, we wrote off approximately $2,850 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.
The majority of our goodwill acquired during 2015 related to our acquisitions of DIRECTV, Nextel Mexico and GSF Telecom.
The allocation of goodwill represents goodwill previously assigned to our Wireless and Wireline segments. Other changes
to our goodwill in 2015 include foreign currency translation adjustments and the final valuation of Leap. The majority of
our goodwill acquired during 2014 related to our acquisition of Leap. Other changes to our goodwill during 2014 include
adjustments to the amount of goodwill moved to held for sale in 2013 related to the sale of our Connecticut wireline
operations. (See Note 5)
Our other intangible assets are summarized as follows:
December 31, 2015 December 31, 2014
Gross Currency Gross Currency
Carrying Translation Accumulated Carrying Translation Accumulated
Other Intangible Assets Amount Adjustment Amortization Amount Adjustment Amortization
Amortized intangible assets:
Customer lists and relationships:
Wireless acquisitions $ 1,055 $ — $ 679 $ 1,082 $ — $ 550
BellSouth Corporation 4,450 — 4,347 5,825 — 5,559
DIRECTV 19,505 (294) 1,807 — — —
AT&T Corp. 33 — 23 56 — 42
Mexican wireless 485 (60) 110 — — —
Subtotal 25,528 (354) 6,966 6,963 — 6,151
Trade name 2,905 — 424 — — —
Other 686 — 195 275 — 189
Total $29,119 $(354) $7,585 $ 7,238 $ — $6,340
Indefinite-lived intangible assets
not subject to amortization:
Licenses
Wireless licenses $81,147 $60,824
Orbital slots 11,946 —
Trade names 6,437 5,241
Total $99,530 $66,065
Wireless license additions in 2015 were primarily related to
FCC Auction 97, with the remainder originating from our
Mexico business acquisitions and various spectrum license
purchases. The increase in orbital slots and trade names was
primarily due to the DIRECTV acquisition. (See Note 5)
We review indefinite-lived intangible assets for impairment
annually (see Note 1). Licenses include wireless licenses
that provide us with the exclusive right to utilize
certain radio frequency spectrum to provide wireless
communications services, similar licenses in Mexico and
orbital slots representing the space in which we operate
the broadcast satellites that support our digital video
entertainment service offerings.
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