Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

Goodwill

At December 31, 2013 and 2012, the gross value of goodwill was $64.7 million and $340.9 million, respectively. Accumulated impairment losses were $50.3 million at December 31, 2013 and 2012. The deconsolidation of CyrusOne in January 2013 resulted in the divestiture of $276.2 million of goodwill. The changes in the carrying amount of goodwill, for the years ended December 31, 2013 and 2012 are as follows:



(dollars in millions)	Wireline		Wireless		IT Services and Hardware		Data Center Colocation			Total
Balance as of December 31, 2011	$	11.8	$	—	$	2.6	$	276.2		$	290.6
Impairment	—		—		—		—			—
Balance as of December 31, 2012	11.8		—		2.6		276.2			290.6
Goodwill divested from deconsolidation of CyrusOne	—		—		—		(276.2		)	(276.2		)
Balance as of December 31, 2013	$	11.8	$	—	$	2.6	$	—		$	14.4

Intangible Assets Not Subject to Amortization

As of December 31, 2013 and 2012, intangible assets not subject to amortization consist solely of FCC wireless spectrum licenses with a carrying value of $88.2 million. These licenses are subject to renewal every 10 years for a nominal fee. The next renewal date is in 2015.

Intangible Assets Subject to Amortization

As of December 31, 2013, intangible assets subject to amortization consist of customer relationships and trademarks. As of December 31, 2012, intangible assets subject to amortization consisted of customer relationships, trademarks and a favorable leasehold interest. For the year ended December 31, 2013, no impairment losses were recognized on intangible assets subject to amortization. For the year ended December 31, 2012, an impairment loss of $1.5 million was recognized by our former Data Center Colocation segment on a customer relationship intangible that was obtained with the 2007 GramTel acquisition. No impairments were recognized on intangible assets subject to amortization in 2011. The deconsolidation of CyrusOne in January 2013 resulted in the divestiture of customer relationships, trademarks and a favorable leasehold interest with net book values of $91.7 million, $6.1 million and $3.7 million, respectively.

Summarized below are the carrying values for the major classes of intangible assets subject to amortization:



	Weighted-
	Average	December 31, 2013					December 31, 2012
	Life in	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(dollars in millions)	Years	Amount		Amortization			Amount		Amortization
Customer relationships
Wireline	10	$	7.0	$	(6.1	)	$	7.0	(4.9		)
Wireless	9	8.7		(8.5		)	8.7		(8.1		)
IT Services and Hardware	5	2.0		(2.0		)	2.0		(2.0		)
Data Center Colocation	15	—		—			129.5		(36.8		)
		17.7		(16.6		)	147.2		(51.8		)
Trademarks
Wireless	6	6.2		(3.8		)	6.2		(2.8		)
Data Center Colocation	15	—		—			7.4		(1.3		)
		6.2		(3.8		)	13.6		(4.1		)
Favorable leasehold interest
Data Center Colocation	56	—		—			3.9		(0.2		)

		$	23.9	$	(20.4	)	$	164.7	$	(56.1	)

Amortization expense for intangible assets subject to amortization was $3.6 million in 2013, $18.6 million in 2012, and $19.1 million in 2011. In the fourth quarter of 2013, the remaining useful life for the Wireless trademark was reduced to 30 months as of December 31, 2013. The change in the useful life was not material to 2013 or future periods.

The following table presents estimated amortization expense for 2014 through 2018:



(dollars in millions)
2014	$	1.7
2015	1.2
2016	0.6
2017	—
2018	—

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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