Sprint - Nextel 2015 Annual Report Download - page 114

Table of Contents
Index to Consolidated Financial Statements
SPRINT CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The determination of fair value requires considerable judgment and is highly sensitive to changes in underlying assumptions. Consequently, there can
be no assurance that the estimates and assumptions made for the purposes of the goodwill, spectrum and Sprint trade name impairment tests will prove to be an
accurate prediction of the future. Continued, sustained declines in the Company’s operating results, future forecasted cash flows, growth rates and other
assumptions, as well as significant, sustained declines in the Company’s stock price and related market capitalization could impact the underlying key assumptions
and our estimated fair values, potentially leading to a future material impairment of goodwill or other indefinite-lived intangible assets.
Intangible Assets Subject to Amortization
Customer relationships are amortized using the sum-of-the-months' digits method, while all other definite-lived intangible assets are amortized using the
straight line method over the estimated useful lives of the respective assets. We reduce the gross carrying value and associated accumulated amortization when
specified intangible assets become fully amortized. Amortization expense related to favorable spectrum and tower leases is recognized in "Cost of services" in our
consolidated statements of operations.
March 31, 2016
March 31, 2015
Useful Lives
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
(in millions)
Customer relationships 4 to 8 years
$ 6,923
$ (4,045)
$ 2,878
$ 6,923
$ (2,791)
$ 4,132
Other intangible assets:
Favorable spectrum leases 23 years
881
(110)
771
884
(71)
813
Favorable tower leases 3 to 7 years
589
(302)
287
589
(189)
400
Trademarks 34 years
520
(43)
477
520
(27)
493
Other 4 to 10 years
83
(27)
56
72
(17)
55
Total other intangible assets
2,073
(482)
1,591
2,065
(304)
1,761
Total definite-lived intangible assets
$ 8,996
$ (4,527)
$ 4,469
$ 8,988
$ (3,095)
$ 5,893
Fiscal Year 2016
Fiscal Year 2017
Fiscal Year 2018
Fiscal Year 2019
Fiscal Year 2020
(in millions)
Estimated amortization expense $ 1,157
$ 882
$ 666
$ 462
$ 257
F-30