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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, 2014 $ 75,747
Acquisitions (Note2) 444
Dispositions (Note2) (1,978)
Capitalized interest on wireless licenses 167
Reclassications, adjustments and other 961
Balance at December31, 2014 $ 75,341
Acquisitions (Note2) 10,474
Capitalized interest on wireless licenses 389
Reclassications, adjustments and other 371
Balance at December31, 2015 $ 86,575
Reclassifications, adjustments and other includes the exchanges of wireless licenses in 2015 and 2014 as well as $0.3billion of Wireless licenses
that are classified as Assets held for sale on our consolidated balance sheets at December31, 2015 and 2014, respectively. See Note2 for addi-
tional details.
At December31, 2015 and 2014, approximately $10.4billion and $0.4billion, respectively, of wireless licenses were under development for com-
mercial service for which we were capitalizing interest costs. The increase is primarily due to licenses acquired in the AWS-3 auction.
The average remaining renewal period of our wireless license portfolio was 5.6 years as of December31, 2015. See Note1 for additional details.
Goodwill
Changes in the carrying amount of Goodwill are as follows:
(dollars in millions)
Wireless Wireline Other Total
Balance at January1, 2014 $ 18,376 $ 6,258 $ – $ 24,634
Acquisitions (Note2) 15 40 – 55
Dispositions (Note2) – (38) – (38)
Reclassications, adjustments and other (1) (11) – (12)
Balance at December31, 2014 $ 18,390 $ 6,249 $ – $ 24,639
Acquisitions (Note2 ) 3 – 2,035 2,038
Reclassications, adjustments and other – (1,918) 572 (1,346)
Balance at December31, 2015 $ 18,393 $ 4,331 $ 2,607 $ 25,331
As a result of the acquisition of AOL in the second quarter of 2015, we recognized preliminary Goodwill of $1.9billion, which is included within
Other (see Note2 for additional details). We also allocated $0.6billion of goodwill on a relative fair value basis from Wireline to Other as a result of
an internal reorganization. This increase was partially offset by a decrease in Goodwill in Wireline primarily due to the reclassification of $1.3billion
of Goodwill to Non- current assets held for sale on ourconsolidated balance sheet at December31, 2015 as a result of our agreement to sell our
local exchange business and related landline activities in California, Florida and Texas to Frontier (see Note2 for additional details). The amount
of Goodwill reclassified was based on arelative fair value basis.
52 Verizon Communications Inc. and Subsidiaries
Notes to Consolidated Financial Statements continued