Intangible Assets

6 Months Ended

Jun. 30, 2013

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets

Intangible Assets

The following table sets forth the details of the Company's intangible assets at June 30, 2013 and December 31, 2012.

	At June 30, 2013						At December 31, 2012
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	(in millions)
Directory services agreements	$	1,475	$	480	$	995	$	1,330	$	363	$	967
Client relationships	1,155		315		840		735		217		518
Trademarks and domain names	440		114		326		380		84		296
Patented technologies	85		35		50		75		30		45
Advertising commitment	11		5		6		11		4		7
Total intangible assets	$	3,166	$	949	$	2,217	$	2,531	$	698	$	1,833

Included in the above amounts at June 30, 2013 are the intangible assets acquired as a result of the merger with SuperMedia on April 30, 2013. For additional information related to the acquisition of SuperMedia's intangible assets, see Note 2.

As a result of the merger and emergence from bankruptcy, the Company performed an evaluation of the carrying value of its existing intangible assets for each reporting unit as of April 30, 2013, the date of the merger. The Company determined that the carrying values of its existing intangible assets remain recoverable and were not impaired.

The Company also evaluated the estimated remaining useful lives of its intangible assets as of April 30, 2013 and concluded that the estimated remaining useful lives needed to be shortened to properly reflect the remaining period that each intangible asset is expected to contribute to future cash flows. To determine the amount to amortize in each year of their estimated remaining useful lives, the Company used the income forecast method, which is an accelerated amortization method that assumes the remaining value of these intangible assets is greater in the earlier years and then steadily declines over time based on expected future cash flows. The changes to the estimated remaining useful lives are reflected in the following table:

	Estimated Remaining Useful Lives
	Previous	Revised
Directory services agreements	9 years	5 years
Client relationships	8 years	4 years
Trademarks and domain names	8 years	6 years
Patented technologies	5 years	5 years
Advertising commitment	5 years	3 years

Amortization expense for intangible assets was $176 million and $251 million for the three and six months endedJune 30, 2013, respectively. Amortization expense for intangible assets was $87 million and $175 million for the three and six months endedJune 30, 2012, respectively. The three and six months intangible asset amortization expense was impacted by the inclusion of SuperMedia's May 1, 2013 through June 30, 2013 amortization expense of $44 million. Additionally, amortization expense related to Dex One existing intangibles assets increased $45 million and $32 million for the three and six months ended June 30, 2013, respectively, primarily due to the change in estimated remaining useful lives.

The annual amortization expense for intangible assets is estimated to be $703 million in 2013, $768 million in 2014, $514 million in 2015, $310 million in 2016, $141 million in 2017, and $32 million thereafter.