Goodwill, Customer Relationships and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Customer Relationships and Other Intangible Assets

Customer relationships and other intangible assets consisted of the following:


	March 31, 2024		December 31, 2023
	(Dollars in millions)
Customer relationships, less accumulated amortization of $4,047 and $3,896	$	3,655	3,810
Capitalized software, less accumulated amortization of $431 and $419	412		427
Total customer relationships and other intangible assets, net	$	4,067	4,237

As of March 31, 2024, the gross carrying amount of customer relationships and capitalized software was $8.5 billion.

Our goodwill was derived from Lumen's acquisition of us where the purchase price exceeded the fair value of the net assets acquired. We are required to assess our goodwill for impairment annually, or under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our assessment determines the carrying value of equity of our reporting unit exceeds its fair value. Our annual impairment assessment date for goodwill is October 31, at which date we assess goodwill at our reporting unit. In reviewing the criteria for reporting units, we have determined that we are one reporting unit. During the second quarter of 2023, we fully impaired our remaining goodwill balance, recognizing a non-cash, non-tax-deductible goodwill impairment charge of $2.0 billion in that period.

Total amortization expense for finite-lived intangible assets for the three months ended March 31, 2024 and 2023 totaled $186 million and $176 million, respectively.

We estimate that total amortization expense for intangible assets for the years ending December 31, 2024 through 2028 will be as provided in the table below.


	(Dollars in millions)
2024 (remaining nine months)	$	519
2025	649
2026	636
2027	594
2028	557