Notes to Consolidated Financial Statements
NOTE 9
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
Changes in the carrying amount of goodwill are as follows:
(dollars in millions) |
|||||||||
|
Wireline |
Domestic Wireless |
Total |
||||||
|---|---|---|---|---|---|---|---|---|---|
Balance at December 31, 2005 |
$ |
315 |
|
$ |
— |
|
$ |
315 |
|
Acquisitions |
|
5,085 |
|
|
345 |
|
|
5,430 |
|
Reclassifications and adjustments |
|
(90 |
) |
|
— |
|
|
(90 |
) |
Balance at December 31, 2006 |
$ |
5,310 |
|
$ |
345 |
|
$ |
5,655 |
|
Acquisitions |
|
343 |
|
|
— |
|
|
343 |
|
Reclassifications and adjustments |
|
(753 |
) |
|
— |
|
|
(753 |
) |
Balance at December 31, 2007 |
$ |
4,900 |
|
$ |
345 |
|
$ |
5,245 |
|
Reclassifications and adjustments to goodwill include the impact of adopting FIN 48 (see Note 1) of $100 million as of January 1, 2007, as well as to reflect revised estimated tax bases of acquired assets and liabilities during 2007 and 2006.
Other Intangible Assets
The following table displays the details of other intangible assets:
(dollars in millions) |
||||||||||||
|
At December 31, 2007 |
|
At December 31, 2006 |
|
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Gross Amount |
Accumulated Amortization |
Gross Amount |
Accumulated Amortization |
|
|||||||
Finite-lived intangible assets: |
||||||||||||
Customer lists (3 to 10 years) |
$ |
1,307 |
|
$ |
459 |
|
$ |
1,278 |
|
$ |
270 |
|
Non-network internal-use software (2 to 7 years) |
|
8,116 |
|
|
4,147 |
|
|
7,777 |
|
|
3,826 |
|
Other (1 to 25 years) |
|
215 |
|
|
44 |
|
|
204 |
|
|
23 |
|
Total |
$ |
9,638 |
|
$ |
4,650 |
|
$ |
9,259 |
|
$ |
4,119 |
|
Indefinite-lived intangible assets: |
||||||||||||
Wireless licenses |
$ |
50,796 |
|
|
|
|
$ |
50,959 |
|
|
|
|
Reclassifications and adjustments to wireless licenses include the impact of adopting FIN 48 (see Note 1) of $535 million as of January 1, 2007, partially offset by acquisitions during 2007.
Amortization expense was $1,341 million, $1,423 million, and $1,444 million for the years ended December 31, 2007, 2006 and 2005, respectively and is estimated to be $1,324 million in 2008, $1,116 million in 2009, $884 million in 2010, $696 million in 2011 and $472 million in 2012. Customer lists and relationships of $3,313 million at Domestic Wireless became fully amortized during 2006.