Goodwill, Customer Relationships and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023(1)		December 31, 2022(1)
	(Dollars in millions)
Goodwill(2)	$	3,864	12,657
Indefinite-lived intangible assets	$	9	9
Other intangible assets subject to amortization:
Customer relationships, less accumulated amortization of $4,087 and $3,606	4,088		4,574
Capitalized software, less accumulated amortization of $3,961 and $3,895(3)	1,557		1,482
Trade names, patents and other, less accumulated amortization of $68 and $188(3)	90		101
Total other intangible assets, net	$	5,744	6,166

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

(2)    We recorded a non-cash, non-tax-deductible goodwill impairment charge of $8.8 billion during the second quarter of 2023.

(3)    Certain capitalized software with a gross carrying value of $183 million and trade names with a gross carrying value of $130 million became fully amortized during 2022 and were retired during the first quarter of 2023.

Schedule of Rollforward Goodwill

The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2022 through September 30, 2023.

	Business		Mass Markets	Total
	(Dollars in Millions)
As of December 31, 2022(1)	$	7,906	4,751	12,657
Impairment	(6,580)		(2,213)	(8,793)
As of September 30, 2023(1)	$	1,326	2,538	3,864

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(1)Goodwill at September 30, 2023 and December 31, 2022 is net of accumulated impairment losses of $19.8 billion and $11.0 billion, respectively.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

We estimate that 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 held for sale on our September 30, 2023 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—Planned Divestiture of the EMEA Business for more information.

	(Dollars in millions)
2023 (remaining three months)	$	244
2024	925
2025	853
2026	809
2027	730