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
Wireless

 

Wireline

 

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
Amount

 

Accumulated
Amortization

 

Net
Amount

 

Gross
Amount

 

Accumulated
Amortization

 

Net
Amount

 

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:

Years

(dollars in millions)

2011

 

$

1,505

 

2010

 

 

1,812

 

2009

 

 

1,970

 

Estimated annual amortization expense for Other intangible assets is as follows:

Years

(dollars in millions)

2012

 

$

1,363

 

2013

 

 

1,193

 

2014

 

 

884

 

2015

 

 

695

 

2016

 

 

491