Property, Plant and Equipment

9 Months Ended

Sep. 30, 2011

Property, Plant and Equipment [Abstract]


Note 5.	Property, Plant and Equipment

Property, plant and equipment consists primarily of network equipment and other long-lived assets used to provide service to our subscribers. Changes in technology or in our intended use of these assets, including our ability to successfully test and deploy our network modernization plan, Network Vision, as well as changes in economic or industry factors or in our business or prospects, may cause the estimated period of use or the value of these assets to change. In connection with Network Vision, certain spectrum licenses that were not previously placed in service are now expected to be utilized. As qualifying activities are performed related to Network Vision, interest expense primarily related to the carrying value of these spectrum licenses is being capitalized to construction in progress within property, plant and equipment. Interest expense capitalized was $103 million and $304 million for the three and nine-month periods ended September 30, 2011 and $3 million and $10 million for the three and nine-month periods ended September 30, 2010, respectively. Construction in progress (including any capitalized interest) associated with Network Vision is expected to be depreciated using the straight-line method based on estimated economic useful lives, which are expected to be depreciated over a weighted average useful life of approximately 8 years, once the assets are placed in service.

The components of property, plant and equipment, and the related accumulated depreciation were as follows:



	September 30, 2011			December 31, 2010
	(in millions)
Land	$	333		$	332
Network equipment, site costs and related software	38,311			37,514
Buildings and improvements	4,820			4,823
Non-network internal use software, office equipment and other	2,228			2,465
Construction in progress	1,608			995
Less accumulated depreciation	(33,132		)	(30,915		)
Property, plant and equipment, net	$	14,168		$	15,214

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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