Wireless Licenses, Goodwill and Other Intangible Assets

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, 2017	$	86,673
Acquisitions (Note 2)		76
Capitalized interest on wireless licenses		239
Reclassifications, adjustments and other		1,016

Balance at June 30, 2017	$	88,004

Reclassifications, adjustments and other includes $1.0 billion received in exchanges of wireless licenses during the six months ended June 30, 2017.

At June 30, 2017, approximately $10.0 billion of wireless licenses were under development for commercial service for which we were capitalizing interest costs.

The average remaining renewal period for our wireless licenses portfolio was 5.6 years as of June 30, 2017.

Goodwill

Changes in the carrying amount of Goodwill are as follows:


(dollars in millions)	Wireless		Wireline			Other		Total
Balance at January 1, 2017	$	18,393	$	3,784		$	5,028	$	27,205
Acquisitions (Note 2)		5		432			887		1,324
Reclassifications, adjustments and other		-		(5	)		3		(2	)

Balance at June 30, 2017	$	18,398	$	4,211		$	5,918	$	28,527

At June 30, 2017, we recognized preliminary goodwill of $0.9 billion in Corporate and other as a result of the acquisition of Yahoo’s operating business. At June 30, 2017, we recognized preliminary goodwill of $0.4 billion in Wireline as a result of the acquisition of XO. See Note 2 for additional information.

Other Intangible Assets

The following table displays the composition of Other intangible assets, net:


	At June 30, 2017							At December 31, 2016
(dollars in millions)	Gross Amount		Accumulated Amortization			Net Amount		Gross Amount		Accumulated Amortization			Net Amount
Customer lists (8 to 13 years)	$	4,014	$	(529	)	$	3,485	$	2,884	$	(480	)	$	2,404
Non-network internal-use software (5 to 7 years)		17,249		(11,525	)		5,724		16,135		(10,913	)		5,222
Other (5 to 25 years)		2,602		(668	)		1,934		1,854		(583	)		1,271

Total	$	23,865	$	(12,722	)	$	11,143	$	20,873	$	(11,976	)	$	8,897

At June 30, 2017, we recognized preliminary other intangible assets of $2.6 billion in Corporate and other as a result of the acquisition of Yahoo’s operating business. At June 30, 2017, we recognized preliminary other intangible assets of $0.2 billion (primarily customer lists) in Wireline as a result of the acquisition of XO. See Note 2 for additional information.

The amortization expense for Other intangible assets was as follows:


(dollars in millions)	Three Months Ended June 30,		Six Months Ended June 30,
2017	$	485	$	937
2016		401		836


The estimated future amortization expense for Other intangible assets is as follows:

Years	(dollars in millions)
Remainder of 2017	$	1,393
2018		1,891
2019		1,656
2020		1,406
2021		1,222

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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