AT&T Wireless 2010 Annual Report Download - page 74

Notes to Consolidated Financial Statements (continued)
Dollars in millions except per share amounts
72 AT&T Inc.
Our depreciation expense was $16,402 in 2010, $15,849 in
2009 and $15,191 in 2008.
Certain facilities and equipment used in operations are leased
under operating or capital leases. Rental expenses under
operating leases were $3,060 for 2010, $2,889 for 2009 and
$2,733 for 2008. At December 31, 2010, the future minimum
rental payments under noncancelable operating leases for
the years 2011 through 2015 were $2,590, $2,454, $2,257,
$2,134 and $2,022, with $13,347 due thereafter. Certain real
estate operating leases contain renewal options that may be
exercised. Capital leases are not significant.
American Tower Corp. Agreement
In August 2000, we reached an agreement with American
Tower Corp. (American Tower) under which we granted
American Tower the exclusive rights to lease space on a
number of our communications towers. In exchange, we
received a combination of cash and equity instruments as
complete prepayment of rent with the closing of each leasing
agreement. The value of the prepayments was recorded as
deferred revenue and recognized in income as revenue over
the life of the leases. The balance of deferred revenue was
$480 in 2010, $509 in 2009 and $539 in 2008.
NOTE 5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is summarized as follows at
December 31:
Lives (years) 2010 2009
Land — $ 1,694 $ 1,724
Buildings 35-45 25,979 24,238
Central office equipment1 3-10 79,607 78,314
Cable, wiring and conduit 10-50 75,732 73,191
Other equipment1 5-15 46,622 39,723
Software 3-5 9,219 8,812
Under construction — 4,980 3,159
243,833 229,161
Accumulated depreciation
and amortization 140,637 129,642
Property, plant and
equipment – net $103,196 $ 99,519
1Includes certain network software.
NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amounts of goodwill, by segment (which is the same as the reporting unit for Wireless, Wireline and
Advertising Solutions), for the years ended December 31, 2010 and 2009, were as follows:
Advertising
Wireless Wireline Solutions Other Total
Balance as of January 1, 2009 $ 33,851 $ 31,381 $ 5,694 $ 426 $ 71,352
Goodwill acquired 1,276 344 36 — 1,656
Other (90) (117) 1 (20) (226)
Balance as of December 31, 2009 35,037 31,608 5,731 406 72,782
Goodwill acquired 937 — — 43 980
Other (219) 62 — (4) (161)
Balance as of December 31, 2010 $35,755 $31,670 $5,731 $445 $73,601
during 2010 include adjustments totaling $(219) related to
wireless business combinations and $62 due primarily to
adjustments relating to a wireline business combination.
Changes to goodwill during 2009 include adjustments
totaling $90 related to wireless liabilities in connection with
a business combination and disposition of a wireline entity
for $117 (see Note 2).
The reclassification of Sterling as a discontinued operation
impacted goodwill by $477 and other intangible assets
balances by $195 at December 31, 2009 and $254 at
January 1, 2009. Goodwill acquired in 2010 relates primarily
to the acquisition of certain wireless properties from Verizon
Wireless and in 2009 relates to certain wireless and wireline
properties acquired from Centennial. Changes to goodwill