Wireless Licenses, Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Wireless Licenses, Goodwill and Other Intangible Assets

Wireless Licenses, Goodwill and Other Intangible Assets

3.	Wireless Licenses, Goodwill and Other Intangible Assets

Wireless Licenses

Changes in the carrying amount of Wireless licenses are as follows:


(dollars in millions)
Balance at January 1, 2011	$	72,996
Acquisitions (Note 2)		51
Capitalized interest on wireless licenses		104

Balance at June 30, 2011	$	73,151

During the year ended December 31, 2010, approximately $12.2 billion of wireless licenses were under development for commercial service for which we were capitalizing interest costs. In December 2010, a substantial portion of these licenses were placed in service in connection with our deployment of fourth-generation Long-Term Evolution technology services. During the six months ended June 30, 2011, approximately $3.1 billion of wireless licenses remained under development for commercial service.

Goodwill

Changes in the carrying amount of Goodwill are as follows:


(dollars in millions)	Domestic Wireless		Wireline		Total
Balance at January 1, 2011	$	17,869	$	4,119	$	21,988
Acquisitions (Note 2)		81		1,404		1,485
Reclassifications, adjustments and other		–		7		7

Balance at June 30, 2011	$	17,950	$	5,530	$	23,480

Other Intangible Assets

The following table displays the composition of Other intangible assets, net:


	At June 30, 2011							At December 31, 2010

(dollars in millions)	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer lists (6 to 13 years)	$	3,542	$	(1,805	)	$	1,737	$	3,150	$	(1,551	)	$	1,599
Non-network internal-use software (3 to 7 years)		8,866		(5,058	)		3,808		8,446		(4,614	)		3,832
Other (2 to 25 years)		684		(284	)		400		885		(486	)		399

Total	$	13,092	$	(7,147	)	$	5,945	$	12,481	$	(6,651	)	$	5,830

Customer lists and Other at June 30, 2011 include $0.4 billion related to the Terremark acquisition (see Note 2).

The amortization expense for other intangible assets was as follows:


(dollars in millions)	Three Months Ended June 30,		Six Months Ended June 30,
2011	$	374	$	744
2010		462		919

Estimated annual amortization expense for other intangible assets is as follows:


Years	(dollars in millions)
2011	$	1,579
2012		1,340
2013		1,172
2014		860
2015		671

- 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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