Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Other Intangible Assets

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table sets forth the changes in the carrying amounts of goodwill by segment, which is the same as reporting unit for Business Solutions, Entertainment Group and Consumer Mobility. The International segment has three reporting units: Mexico Wireless, Brazil and PanAmericana.

	Business Solutions			Entertainment Group		Consumer Mobility		International		Wireless		Wireline		Total
Balance as of December 31, 2014	$	-	$	-	$	-	$	-	$	36,469	$	33,223	$	69,692
Goodwill acquired		-		30,839		-		4,672		6		-		35,517
Foreign currency translation adjustments		-		-		-		(638)		-		-		(638)
Allocation of goodwill		45,351		7,834		16,512		-		(36,471)		(33,226)		-
Other		-		-		-		(2)		(4)		3		(3)
Balance as of December 31, 2015		45,351		38,673		16,512		4,032		-		-		104,568
Goodwill acquired		22		380		14		65		-		-		481
Foreign currency translation adjustments		-		-		-		167		-		-		167
Other		(9)		-		-		-		-		-		(9)
Balance as of December 31, 2016	$	45,364	$	39,053	$	16,526	$	4,264	$	-	$	-	$	105,207

The majority of our goodwill acquired during 2016 related to the final valuation of DIRECTV, Nextel Mexico and GSF Telecom, as well as our acquisition of Quickplay Media. Other changes to our goodwill in 2016 include foreign currency translation adjustments.

The majority of our goodwill acquired during 2015 related to our acquisitions of DIRECTV, Nextel Mexico and GSF Telecom. Other changes to our goodwill in 2015 include foreign currency translation adjustments and the final valuation of Leap.

The allocation of goodwill represents goodwill previously assigned to our Wireless and Wireline segments. As part of our organizational realignment in 2015, the goodwill from the previous Wireless segment was allocated to the Business Solutions and Consumer Mobility segments and the goodwill from the previous Wireline segment was allocated to the Business Solutions and Entertainment Group segments. The allocations were based on the relative fair value of the portions of the previous Wireless and Wireline segments which were moved into the new Business Solutions, Entertainment Group and Consumer Mobility segments.

Our other intangible assets are summarized as follows:

	December 31, 2016							December 31, 2015
Other Intangible Assets		Gross Carrying Amount		Currency Translation Adjustment		Accumulated Amortization		Gross Carrying Amount		Currency Translation Adjustment		Accumulated Amortization
Amortized intangible assets:
Customer lists and relationships:
Wireless acquisitions	$	942	$	-	$	715	$	1,055	$	-	$	679
BellSouth Corporation		4,450		-		4,429		4,450		-		4,347
DIRECTV		19,547		(125)		5,618		19,505		(294)		1,807
AT&T Corp.		33		-		26		33		-		23
Mexican wireless		506		(108)		214		485		(60)		110
Subtotal		25,478		(233)		11,002		25,528		(354)		6,966
Trade name		2,942		(7)		1,394		2,905		-		424
Other		707		(3)		283		686		-		195
Total	$	29,127	$	(243)	$	12,679	$	29,119	$	(354)	$	7,585

Indefinite-lived intangible assets not subject to amortization:
Licenses:
Wireless licenses	$	82,474					$	81,147
Orbital slots		11,702						11,946
Trade name		6,479						6,437
Total	$	100,655					$	99,530

We review indefinite-lived intangible assets for impairment annually (see Note 1). Wireless licenses provide us with the exclusive right to utilize certain radio frequency spectrum to provide mobile communications services in the United States and Mexico. Orbital slots represent the space in which we operate the broadcast satellites that support our digital video entertainment service offerings.

Amortized intangible assets are definite-life assets, and, as such, we record amortization expense based on a method that most appropriately reflects our expected cash flows from these assets, over a weighted-average life of 8.5 years (9.2 years for customer lists and relationships and 4.2 years for trade names and other). Amortization expense for definite-life intangible assets was $5,186 for the year ended December 31, 2016, $2,728 for the year ended December 31, 2015 and $500 for the year ended December 31, 2014. Amortization expense is estimated to be $4,612 in 2017, $3,573 in 2018, $2,516 in 2019, $2,038 in 2020, and $1,563 in 2021.

In 2016, we wrote off approximately $117 of fully amortized intangible assets (primarily customer lists). In 2015, we wrote off approximately $1,483 of fully amortized intangible assets (primarily customer lists). We review amortized intangible assets for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable over the remaining life of the asset or asset group.

- 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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