Goodwill, Customer Relationships and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023
	(Dollars in millions)
Goodwill(1)	$	1,964	1,964
Indefinite-lived intangible assets	$	9	9
Other intangible assets subject to amortization:
Customer relationships(2), less accumulated amortization of $4,504 and $4,248	3,196		3,811
Capitalized software, less accumulated amortization of $4,067 and $4,045(3)	1,529		1,564
Patents and other, less accumulated amortization of $86 and $72(3)	72		86
Total other intangible assets, net	$	4,806	5,470

______________________________________________________________________ 

(1)We recorded cumulative non-cash, non-tax-deductible goodwill impairment charges of $10.7 billion during the year ended December 31, 2023.

(2)For the year ended December 31, 2023, customer relationships decreased $121 million in conjunction with the sale of select CDN customer contracts, in the fourth quarter of 2023 that resulted in a net loss of $73 million included in selling, general and administrative expenses in our consolidated statements of operations.

(3)Certain capitalized software with a gross carrying value of $352 million and $183 million and trade names with a gross carrying value of $153 million and $130 million became fully amortized during 2023 and 2022, respectively, and were retired during the first quarter of 2024 and 2023, respectively.

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	%

Schedule of goodwill attributable to segments

The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2022 through December 31, 2024.

	Business		Mass Markets	Total
	(Dollars in millions)
As of December 31, 2022(1)	$	7,906	4,751	12,657
Impairment	(7,906)		(2,787)	(10,693)
As of December 31, 2023(1)	—		1,964	1,964
As of December 31, 2024(1)	$	—	1,964	1,964

______________________________________________________________________

(1)Goodwill at December 31, 2024, December 31, 2023 and December 31, 2022 is net of accumulated impairment losses of $21.7 billion, $21.7 billion and $11.0 billion, respectively.

Schedule of estimated amortization expense for intangible assets

We estimate that future total amortization expense for finite-lived intangible assets will be as follows:

	(Dollars in millions)
2025	$	926
2026	875
2027	788
2028	717
2029	488
2030 and thereafter	1,003
Total finite-lived intangible assets future amortization expense	$	4,797