Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS

We test goodwill for impairment at a reporting unit level, which is deemed to be our principal operating segments or one level below, using the methodology described in Note 1. With our annual impairment testing as of October 1, the calculated fair value of each reporting unit exceeded its book value.

Changes to our goodwill in 2024 resulted from a third-quarter noncash goodwill impairment charge of $4,422 in our consolidated statements of income, which represented the entirety of our Business Wireline reporting unit goodwill. The decline in fair value was primarily due to the change in the long-term strategic plan of our Business Wireline reporting unit, which reflected lower long-term projected future cash flows associated with the industry-wide secular decline, including a faster-than-previously anticipated decline of legacy services.

Our Communications segment has three reporting units: Mobility, Consumer Wireline and Business Wireline. Business Wireline goodwill was fully impaired in 2024. The reporting unit is deemed to be the operating segment for Latin America and its goodwill was fully impaired in 2022. At December 31, 2025, accumulated goodwill impairments totaled $29,234.

The following table sets forth the changes in the carrying amounts of goodwill for the Communications segment:


	2025						2024
	Balance at Jan. 1		Dispositions and other		Balance at Dec. 31		Balance at Jan. 1		Impairment		Balance at Dec. 31
Communications
Goodwill	$	91,840	$	(7)	$	91,833	$	91,840	$	—	$	91,840
Accumulated Impairments	(28,408)		—		(28,408)		(23,986)		(4,422)		(28,408)






Total	$	63,432	$	(7)	$	63,425	$	67,854	$	(4,422)	$	63,432

We review amortizing intangible assets for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable over the remaining life of the asset or asset group.

In 2025, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our FCC wireless licenses exceeded the book value and did not result in an impairment. In 2024, we performed a quantitative impairment assessment, which reflected the fair value of our FCC wireless licenses exceeded their book value.

FCC wireless licenses increased in 2025 primarily due to spectrum acquisitions and capitalized interest. FCC wireless licenses increased in 2024 primarily due to compensable relocation and incentive payments and $199 of capitalized interest. (See Notes 6 and 23)

Our other intangible assets at December 31 are summarized as follows:


	2025							2024
Other Intangible Assets	Weighted-Average Life	Gross Carrying Amount		Accumulated Amortization		Currency Translation Adjustment		Gross Carrying Amount		Accumulated Amortization		Currency Translation Adjustment
Amortized intangible assets:
Wireless licenses	21.3 years	$	3,582	$	831	$	(73)	$	2,999	$	696	$	(343)
Customer lists and relationships	N/A	—		—		—		349		275		(74)
Trademarks, trade names and other	13.2 years	42		23		(6)		43		23		(6)
Total	21.2 years	$	3,624	$	854	$	(79)	$	3,391	$	994	$	(423)

Indefinite-lived intangible assets not subject to amortization:


Wireless licenses	$	125,470	$	125,075
Trade names	5,241		5,241
Total	$	130,711	$	130,316

Amortized intangible assets are definite-life assets, and, as such, we record amortization expense based on a method that most appropriately reflects our expected cash flows from these assets. Amortization expense for definite-life intangible assets was $140 for the year ended December 31, 2025, $159 for the year ended December 31, 2024 and $184 for the year ended December 31, 2023. Estimated amortization expense for the next five years is: $178 for 2026, $178 for 2027, $178 for 2028, $178 for 2029 and $176 for 2030.