v3.19.3.a.u2
Goodwill And Other Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill And Other Intangible Assets  
Goodwill And Other Intangible Assets [Text Block]

NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS

 

The following table sets forth the changes in the carrying amounts of goodwill by operating segment. We test goodwill for impairment at a reporting unit level, which is deemed to be our principal operating segments or one level below. Our Communications segment has three reporting units: Mobility, Entertainment Group and Business Wireline. Our WarnerMedia segment has three reporting units: Turner, Home Box Office and Warner Bros. Our Latin America segment has two reporting units: Mexico and Vrio.

 

2019

 

2018

 

Balance at Jan. 1

 

Acquisitions

 

Dispositions,

currency exchange

and other

 

Balance at Dec. 31

 

Balance at Jan. 1

 

Reallocation

 

Acquisitions

 

Dispositions,

currency exchange

and other

 

Balance at Dec. 31

Communications

$

100,551

 

$

-

 

$

(317)

 

$

100,234

 

$

39,280

 

$

61,075

 

$

422

 

$

(226)

 

$

100,551

WarnerMedia

 

40,698

 

 

-

 

 

181

 

 

40,879

 

 

-

 

 

681

 

 

40,036

 

 

(19)

 

 

40,698

Latin America

 

3,718

 

 

-

 

 

(56)

 

 

3,662

 

 

4,234

 

 

(32)

 

 

-

 

 

(484)

 

 

3,718

Xandr

 

1,403

 

 

66

 

 

(3)

 

 

1,466

 

 

-

 

 

211

 

 

1,220

 

 

(28)

 

 

1,403

Business Solutions

 

-

 

 

-

 

 

-

 

 

-

 

 

45,395

 

 

(45,395)

 

 

-

 

 

-

 

 

-

Consumer Mobility

 

-

 

 

-

 

 

-

 

 

-

 

 

16,540

 

 

(16,540)

 

 

-

 

 

-

 

 

-

Total

$

146,370

 

$

66

 

$

(195)

 

$

146,241

 

$

105,449

 

$

-

 

$

41,678

 

$

(757)

 

$

146,370

Changes to our goodwill in 2019, primarily resulted from the held-for-sale treatment of wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands (see Note 6) and final valuations related to our acquisitions of Time Warner and Otter Media, as well as changes from foreign currency translation.

 

The majority of our goodwill acquired in 2018 is from our acquisitions of Time Warner, AppNexus and Otter Media. Other changes to our goodwill in 2018 include the sale of our data colocation operations, as well as changes from foreign currency translation. With our segment realignment in 2018, we reallocated goodwill within our reporting units.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

2018

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

24.5

years

 

$

2,981

 

$

156

 

$

(243)

 

$

-

 

$

-

 

$

-

Trademarks and trade names

37.3

years

 

 

18,359

 

 

853

 

 

(6)

 

 

18,371

 

 

293

 

 

(7)

Distribution network

10.0

years

 

 

18,138

 

 

2,793

 

 

-

 

 

18,040

 

 

971

 

 

-

Released television and film content

16.4

years

 

 

10,941

 

 

4,974

 

 

-

 

 

10,814

 

 

2,988

 

 

-

Customer lists and relationships

9.1

years

 

 

20,304

 

 

14,773

 

 

(281)

 

 

20,516

 

 

12,451

 

 

(314)

Other

20.4

years

 

 

11,427

 

 

1,843

 

 

(3)

 

 

11,624

 

 

907

 

 

(25)

Total

21.5

years

 

$

82,150

 

$

25,392

 

$

(533)

 

$

79,365

 

$

17,610

 

$

(346)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indefinite-lived intangible assets not subject to amortization, net of currency translation adjustment:

 

 

 

 

Licenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless licenses

 

 

 

$

83,623

 

 

 

 

 

 

 

$

84,442

 

 

 

 

 

 

Orbital slots

 

 

 

 

11,702

 

 

 

 

 

 

 

 

11,702

 

 

 

 

 

 

Trade names

 

 

 

 

6,067

 

 

 

 

 

 

 

 

6,274

 

 

 

 

 

 

Total

 

 

 

$

101,392

 

 

 

 

 

 

 

$

102,418

 

 

 

 

 

 

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 $7,932 for the year ended December 31, 2019, $8,347 for the year ended December 31, 2018 and $4,626 for the year ended December 31, 2017. Amortization expense is estimated to be $6,614 in 2020, $5,683 in 2021, $4,961 in 2022, $4,299 in 2023 and $3,644 in 2024.

 

We review amortized 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 2019, we recorded a $145 impairment on the SKY Brasil trade name. In 2018, we wrote off approximately $2,892 of fully amortized trade names and $2,890 of fully amortized customer lists.

 

In 2019, we began amortizing wireless licenses in Mexico over their average remaining economic life (see Note 1). Renewal fees on these licenses are recorded as intangible assets and amortized over the renewal term on a straight-line basis, generally 20 years. In 2019, we recorded $1,561 of these intangible assets, with the majority to be amortized over 20 years.

 

Changes to our indefinite-lived wireless licenses in 2019 were partially due to the held-for-sale treatment of wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands (see Note 6).