Goodwill, Customer Relationships and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill, customer relationships and other intangible assets

Goodwill, customer relationships and other intangible assets consisted of the following:

	September 30, 2023(1)		December 31, 2022(1)
	(Dollars in millions)
Goodwill(2)	$	—	1,970
Customer relationships, less accumulated amortization of $3,735 and $3,265	$	4,088	4,563
Capitalized software, less accumulated amortization of $401 and $387	428		410
Trade names, less accumulated amortization of $— and $130 (3)	—		—
Total other intangible assets, net	$	4,516	4,973

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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 $2.0 billion during the second quarter of 2023.

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

Reconciliation of goodwill

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

	(Dollars in Millions)
As of December 31, 2022(1)	$	1,970
Impairment	(1,970)
As of September 30, 2023(1)	$	—

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(1)Goodwill at September 30, 2023 and December 31, 2022 is net of accumulated impairment losses of $10.2 billion and $8.2 billion, respectively.

Schedule of estimated amortization expense for intangible assets

We estimate that amortization expense for 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 being held for sale on our September 30, 2023 consolidated balance sheet, the amounts presented below do not include the future amortization of the intangible assets for the business to be divested. See Note 2—Planned Divestiture of the EMEA Business for more information.

	(Dollars in millions)
2023 (remaining three months)	$	172
2024	682
2025	663
2026	651
2027	609