Goodwill, Customer Relationships and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

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

	September 30, 2021		December 31, 2020
	(Dollars in millions)
Goodwill	$	15,987	18,870
Indefinite-life intangible assets	$	9	278
Other intangible assets subject to amortization:
Customer relationships, less accumulated amortization of $11,571 and $11,060	5,535		6,344
Capitalized software, less accumulated amortization of $3,537 and $3,279	1,464		1,520
Trade names, patents and other, less accumulated amortization of $156 and $120	152		77
Total other intangible assets, net	$	7,160	8,219

Schedule of Goodwill

The following table shows the rollforward of goodwill assigned to our reportable segments, including the reorganization, from December 31, 2020 through September 30, 2021:

	International and Global Accounts		Enterprise	Small and Medium Business	Wholesale	Consumer	Business	Mass Markets	Total
	(Dollars in millions)
As of December 31, 2020(1)	$	2,555	4,738	2,808	3,114	5,655	—	—	18,870
January 2021 reorganization	(2,555)		(4,738)	(2,808)	(3,114)	(5,655)	12,173	6,697	—
Reclassified as held for sale(2)	—		—	—	—	—	(918)	(1,946)	(2,864)
Effect of foreign currency exchange rate change and other	—		—	—	—	—	(19)	—	(19)
As of September 30, 2021(1)	$	—	—	—	—	—	11,236	4,751	15,987

______________________________________________________________________

(1)Goodwill at September 30, 2021 and December 31, 2020 is net of accumulated impairment losses of $7.7 billion and $12.9 billion, respectively. The change in accumulated impairment losses at September 30, 2021 is a result of amounts reclassified as held for sale related to our planned divestitures.

(2)Includes $2.9 billion of goodwill, net of accumulated impairment loss reclassified as held for sale related to our pending divestitures. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

We estimate that total amortization expense for intangible assets for the years ending December 31, 2021 through 2025 will be as provided in the table below. As a result of reclassifying our disposal groups as being held for sale on our September 30, 2021 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of those disposal groups. See Note 2—Planned Divestiture of the Latin American and ILEC Businesses for more information.

	(Dollars in millions)
2021 (remaining three months)	$	286
2022	1,027
2023	932
2024	842
2025	801