notes to consolidated financial statements
Note 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, 2010 |
$ |
72,067 |
|
Acquisitions (Note 2) |
|
178 |
|
Capitalized interest on wireless licenses |
|
748 |
|
Reclassifications, adjustments and other |
|
3 |
|
Balance at December 31, 2010 |
$ |
72,996 |
|
Acquisitions (Note 2) |
|
58 |
|
Capitalized interest on wireless licenses |
|
196 |
|
Balance at December 31, 2011 |
$ |
73,250 |
|
During the years ended December 31, 2011 and 2010, approximately $2.2 billion and $12.2 billion, respectively, 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. See Note 2 regarding the December 2011 agreement to acquire spectrum licenses.
The average remaining renewal period of our wireless license portfolio was 6.4 years as of December 31, 2011 (see Note 1, Goodwill and Other Intangible Assets – Intangible Assets Not Subject to Amortization).
Goodwill
Changes in the carrying amount of Goodwill are as follows:
|
(dollars in millions) |
|||||||||
|
Verizon |
|
Línea fija |
|
Total |
|
|||
|---|---|---|---|---|---|---|---|---|---|
Balance at January 1, 2010 |
$ |
17,738 |
|
$ |
4,734 |
|
$ |
22,472 |
|
Acquisitions (Note 2) |
|
131 |
|
|
– |
|
|
131 |
|
Dispositions (Note 2) |
|
– |
|
|
(614 |
) |
|
(614 |
) |
Reclassifications, adjustments and other |
|
– |
|
|
(1 |
) |
|
(1 |
) |
Balance at December 31, 2010 |
$ |
17,869 |
|
$ |
4,119 |
|
$ |
21,988 |
|
Acquisitions (Note 2) |
|
94 |
|
|
1,275 |
|
|
1,369 |
|
Balance at December 31, 2011 |
$ |
17,963 |
|
$ |
5,394 |
|
$ |
23,357 |
|
Other Intangible Assets
The following table displays the composition of Other intangible assets, net:
|
(dollars in millions) |
|||||||||||||||||||
|
2011 |
|
2010 |
|
|||||||||||||||
At December 31, |
Gross |
|
Accumulated |
|
Net |
|
Gross |
|
Accumulated |
|
Net |
|
|||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Customer lists (6 to 13 years) |
$ |
3,529 |
|
$ |
(2,052 |
) |
$ |
1,477 |
|
|
$ |
3,150 |
|
$ |
(1,551 |
) |
$ |
1,599 |
|
Non-network internal-use software (3 to 7 years) |
|
9,536 |
|
|
(5,487 |
) |
|
4,049 |
|
|
|
8,446 |
|
|
(4,614 |
) |
|
3,832 |
|
Other (2 to 25 years) |
|
561 |
|
|
(209 |
) |
|
352 |
|
|
|
885 |
|
|
(486 |
) |
|
399 |
|
Total |
$ |
13,626 |
|
$ |
(7,748 |
) |
$ |
5,878 |
|
|
$ |
12,481 |
|
$ |
(6,651 |
) |
$ |
5,830 |
|
Customer lists and Other at December 31, 2011 include $0.4 billion related to the Terremark acquisition (see Note 2).
The amortization expense for Other intangible assets was as follows:
Años |
(dollars in millions) |
|||
|---|---|---|---|---|
2011 |
|
$ |
1,505 |
|
2010 |
|
|
1,812 |
|
2009 |
|
|
1,970 |
|
Estimated annual amortization expense for Other intangible assets is as follows:
Años |
(dollars in millions) |
|||
|---|---|---|---|---|
2012 |
|
$ |
1,363 |
|
2013 |
|
|
1,193 |
|
2014 |
|
|
884 |
|
2015 |
|
|
695 |
|
2016 |
|
|
491 |
|