Goodwill, Customer Relationships and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill and other intangible assets

Goodwill, customer relationships and other intangible assets consisted of the following:

	As of December 31,
	2018		2017
	(Dollars in millions)
Goodwill	$	28,031	30,475
Customer relationships, less accumulated amortization of $8,492 and $7,096	$	8,911	10,876
Indefinite-life intangible assets	$	269	269
Other intangible assets subject to amortization:
Capitalized software, less accumulated amortization of $2,616 and $2,294	$	1,468	1,469
Trade names, less accumulated amortization of $61 and $31	131		159
Total other intangible assets, net	$	1,868	1,897

Schedule of estimated amortization expense for intangible assets

We estimate that total amortization expense for intangible assets for the years ending December 31, 2019 through 2023 will be as follows:

	(Dollars in millions)
2019	$	1,691
2020	1,589
2021	1,156
2022	985
2023	893

Schedule of goodwill attributable to segments

The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2016 through December 31, 2018.

	Business		Consumer		Total
	(Dollars in millions)
As of December 31, 2016(1)	$	9,372	10,278		19,650
Purchase accounting and other adjustments	10,825		—		10,825
As of December 31, 2017(1)	20,197		10,278		30,475
Purchase accounting and other adjustments(2)(3)	250		32		282
Impairment	—		(2,726	)	(2,726		)
As of December 31, 2018	$	20,447	7,584		$	28,031

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(1) Goodwill is net of accumulated impairment losses of $1.1 billion that related to our former hosting segment now included in our business segment.

(2) We allocated $32 million of Level 3 goodwill to consumer as we expect the consumer segment to benefit from synergies resulting from the business combination.

(3) Includes $58 million decrease due to effect of foreign currency exchange rate change.

As of December 31, 2018, our goodwill has been allocated to our reporting units as follows:

	(Dollars in millions)
Medium and small business	$	5,193
Enterprise	5,222
International and global accounts	3,596
Wholesale and indirect	6,436
Total business segment	20,447
Consumer	7,584
Total goodwill	$	28,031