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Intangible Assets
 3 Months Ended
Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 7.
Intangible Assets
Indefinite-Lived Intangible Assets
Our indefinite-lived intangible assets consist of FCC licenses, which were acquired primarily through FCC auctions and business combinations, certain of our trademarks, and goodwill. At June 30, 2014, we held 1.9 GHz, 800 MHz, 900 MHz and 2.5 GHz FCC licenses authorizing the use of radio frequency spectrum to deploy our wireless services. As long as the Company acts within the requirements and constraints of the regulatory authorities, the renewal and extension of these licenses is reasonably certain at minimal cost. Accordingly, we have concluded that FCC licenses are indefinite-lived intangible assets. Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations (see Note 3. Significant Transactions).
During the quarter ended June 30, 2014, the Company entered into definitive agreements with various counterparties to sell certain FCC licenses held by its Wireless Segment. The agreements are pending regulatory approval by the FCC. As of June 30, 2014, the carrying value of the FCC licenses reclassed from FCC licenses into held for sale was approximately $300 million and is included within “Prepaid expenses and other current assets” on the consolidated balance sheets. These sales are not expected to have a material impact on the Company's consolidated results of operations.
 
Successor
 
March 31,
2014
 
Net
Reductions
 
June 30,
2014
 
(in millions)
FCC licenses
$
36,043

 
$
(214
)
 
$
35,829

Trademarks
5,935

 
—

 
5,935

Goodwill
6,383

 
(40
)
(1 
) 
6,343

 
$
48,361

 
$
(254
)
 
$
48,107


 _________________
(1)
Net reduction to goodwill for the Successor three-month period ended June 30, 2014 of approximately $40 million was the result of purchase price allocation adjustments, which consisted of a $44 million reduction associated with the SoftBank Merger and a $4 million addition associated with the Clearwire Acquisition.
Intangible Assets Subject to Amortization
Customer relationships are amortized using the sum-of-the-months' digits method, while all other definite-lived intangible assets are amortized using the straight line method over the estimated useful lives of the respective assets. We reduce the gross carrying value and associated accumulated amortization when specified intangible assets become fully amortized. Amortization expense related to favorable spectrum and tower leases are recognized in cost of services.
 
 
 
Successor
 
 
 
June 30, 2014
 
March 31, 2014
 
Useful Lives
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
 
 
(in millions)
Customer relationships
4 to 8 years
 
$
6,923

 
$
(1,687
)
 
$
5,236

 
$
6,923

 
$
(1,289
)
 
$
5,634

Other intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Favorable spectrum leases
23 years
 
884

 
(40
)
 
844

 
884

 
(30
)
 
854

Favorable tower leases
3 to 7 years
 
589

 
(107
)
 
482

 
589

 
(80
)
 
509

Trademarks
34 years
 
520

 
(16
)
 
504

 
520

 
(12
)
 
508

Other
4 to 10 years
 
63

 
(10
)
 
53

 
60

 
(7
)
 
53

Total other intangible assets
 
2,056


(173
)

1,883


2,053


(129
)

1,924

Total definite-lived intangible assets
 
$
8,979


$
(1,860
)

$
7,119


$
8,976


$
(1,418
)

$
7,558