Goodwill, Customer Relationships and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022(1)		2021(1)
	(Dollars in millions)
Goodwill	$	12,657	15,986
Indefinite-lived intangible assets	$	9	9
Other intangible assets subject to amortization:
Customer relationships, less accumulated amortization of $3,606 and $11,740(2)	4,574		5,365
Capitalized software, less accumulated amortization of $3,895 and $3,624	1,482		1,459
Trade names, patents and other, less accumulated amortization of $188 and $160	101		137
Total other intangible assets, net	$	6,166	6,970

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(1)These values exclude assets classified as held for sale.

(2)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 cost of equity

	As of October 31, 2022
	Reporting Units
	Mass Markets		NA Business		EMEA		APAC
Weighted average cost of capital	9.4	%	9.4	%	9.8	%	11.3	%
After-tax cost of debt	4.7	%	4.7	%	5.1	%	6.3	%
Cost of equity	14.0	%	14.0	%	14.4	%	16.2	%

	As of October 31, 2020
	Reporting Units
	Consumer, Enterprise, Wholesale, Small and medium business, and NA GAM		EMEA		LATAM		APAC
Weighted average cost of capital	7.6	%	8.0	%	14.3	%	10.1	%
After-tax cost of debt	2.5	%	2.9	%	6.9	%	3.9	%
Cost of equity	10.7	%	11.2	%	18.8	%	14.0	%

Schedule of goodwill attributable to segments

The following table shows the rollforward of goodwill assigned to our reportable segments (including the January 2021 reorganization discussed above) from December 31, 2020 through December 31, 2022.

	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	—
Classified as held for sale	—		—	—	—	—	(913)	(1,946)	(2,859)
Effect of foreign currency exchange rate change and other	—		—	—	—	—	(25)	—	(25)
As of December 31, 2021(1)	$	—	—	—	—	—	11,235	4,751	15,986

	Business		Mass Markets	Total
	(Dollars in millions)
As of December 31, 2021(1)	$	11,235	4,751	15,986
Effect of foreign currency exchange rate change and other	(58)		—	(58)
Impairment	(3,271)		—	(3,271)
As of December 31, 2022(1)	$	7,906	4,751	12,657

______________________________________________________________________

(1)Goodwill at December 31, 2022, December 31, 2021 and December 31, 2020 is net of accumulated impairment losses of $11.0 billion, $7.7 billion and $12.9 billion, respectively. The change in accumulated impairment losses at December 31, 2021 is the result of amounts classified as held for sale related to the divestitures of our Latin American and ILEC business on August 1, 2022 and October 3, 2022, respectively. The change in accumulated impairment losses at December 31, 2022 is the result of the impairments discussed above.

Schedule of estimated amortization expense for intangible assets

We estimate that total amortization expense for finite-lived intangible assets for the years ending December 31, 2023 through 2027 will be as provided in the table below. As a result of classifying our EMEA business as being held for sale on our December 31, 2022 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of the business to be divested. See Note 2—Divestitures of the Latin American and ILEC Businesses and Planned Divestiture of the EMEA Business for more information.

	(Dollars in millions)
2023	$	941
2024	871
2025	810
2026	765
2027	687