Sprint - Nextel 2011 Annual Report Download - page 85

Table of Contents
SPRINT NEXTEL CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Intangible Assets Subject to Amortization
Sprint's customer relationships are amortized using the sum of the years' digits method. We reduce the gross carrying value and associated accumulated
amortization when specified intangible assets become fully amortized. During 2011, we reduced the gross carrying value and accumulated amortization by approximately
$1.6 billion associated with fully amortized intangible assets primarily related to customer relationships in connection with the acquisitions of Nextel Partners, Inc. and
Virgin Mobile. Other intangible assets primarily include certain rights under affiliation agreements that were reacquired in connection with the acquisitions of Affiliates
and Nextel Partners, Inc., which are being amortized over the remaining terms of those affiliation agreements on a straight-line basis, and the Nextel, Direct Connect and
Virgin Mobile trade names, which are being amortized on a straight-line basis. During 2011, we conducted our annual assessment of the recoverability of intangible assets
subject to amortization and determined that no adjustment was necessary.
F-18
December 31, 2011 December 31, 2010
Useful Lives
Gross
Carrying
Value Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value Accumulated
Amortization
Net
Carrying
Value
(in millions)
Customer relationships 4 to 5 years $ 341 $ (297) $ 44 $ 1,925 $ (1,717) $ 208
Other intangible assets
Trademarks 10 to 37 years 1,169 (585) 584 1,169 (490) 679
Reacquired rights 9 to 14 years 1,571 (652) 919 1,571 (519) 1,052
Other 9 to 16 years 126 (57) 69 116 (46) 70
Total other intangible assets 2,866 (1,294) 1,572 2,856 (1,055) 1,801
Total definite-lived intangible
assets $3,207
$ (1,591) $1,616 $4,781 $ (2,772) $2,009
2012 2013 2014 2015 2016
(in millions)
Estimated amortization expense $ 280 $ 243 $239 $198 $137