Goodwill, Customer Relationships and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022		December 31, 2021
	(Dollars in millions)
Goodwill	$	15,918	15,986
Indefinite-lived intangible assets	$	9	9
Other intangible assets subject to amortization:
Customer relationships, less accumulated amortization of $3,579 and $11,740(1)	4,822		5,365
Capitalized software, less accumulated amortization of $3,832 and $3,624	1,498		1,459
Trade names, patents and other, less accumulated amortization of $183 and $160	107		137
Total other intangible assets, net	$	6,436	6,970

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(1)    Certain customer relationships with a gross carrying value of $8.7 billion became fully amortized during 2021 and were retired during the first quarter of 2022.

Schedule of Goodwill

The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2021 through September 30, 2022:

	Business		Mass Markets	Total
	(Dollars in millions)
As of December 31, 2021(1)(2)	$	11,235	4,751	15,986
Effect of foreign currency exchange rate change and other	(68)		—	(68)
As of September 30, 2022(1)(3)	$	11,167	4,751	15,918

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(1)Goodwill at September 30, 2022 and December 31, 2021 is net of accumulated impairment losses of $7.7 billion.

(2)As of December 31, 2021 these amounts excluded $2.9 billion of goodwill classified as held for sale primarily related to the August 1, 2022 divestiture of the Latin American business and the October 3, 2022 divestiture of the ILEC business. See Note 2—Recently Completed Divestitures of the Latin American and ILEC Businesses for additional information.

(3)As of September 30, 2022 these amounts excluded $2.6 billion of goodwill classified as held for sale related to the October 3, 2022 divestiture of the ILEC business. See Note 2—Recently Completed Divestitures of the Latin American and ILEC Businesses and Note 17—Subsequent Events for additional information.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

We estimate that total amortization expense for finite-lived intangible assets for the years ending December 31, 2022 through 2026 will be as provided in the table below. The amounts presented in the table below do not include future amortization expense for intangible assets of the ILEC business that was classified as held for sale on September 30, 2022 and sold on October 3, 2022. See Note 2—Recently Completed Divestitures of the Latin American and ILEC Businesses for more information.

	(Dollars in millions)
2022 (remaining three months)	$	261
2023	978
2024	906
2025	839
2026	762