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.