Verizon Wireless 2008 Annual Report Download - page 53

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Notes to Consolidated Financial Statements continued
51
Goodwill
Changes in the carrying amount of goodwill are as follows:
(dollars in millions)
Domestic
Wireless Wireline Total
Balance at December 31, 2006 $ 345 $ 5,310 $ 5,655
Acquisitions – 343 343
Reclassications and adjustments – (753) (753)
Balance at December 31, 2007 $ 345 $ 4,900 $ 5,245
Acquisitions 954 – 954
Reclassications and adjustments (2) (162) (164)
Balance at December 31, 2008 $ 1,297 $ 4,738 $ 6,035
Reclassifications and adjustments to goodwill include the impact of
adopting FIN 48 (see Note 1) of $100 million as of January 1, 2007, as
well as to reflect revised estimated tax bases of acquired assets and lia-
bilities during 2008 and 2007.
Other Intangible Assets
The following table displays the details of other intangible assets:
(dollars in millions)
At December 31, 2008 At December 31, 2007
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Finite-lived intangible assets:
Customer lists (3 to 10 years) $ 1,415 $ 595 $ 820 $ 1,307 $ 459 $ 848
Non-network internal-use software
(2 to 7 years) 8,099 4,102 3,997 8,116 4,147 3,969
Other (1 to 25 years) 465 83 382 215 44 171
Total $ 9,979 $ 4,780 $ 5,199 $ 9,638 $ 4,650 $ 4,988
Customer lists and Other at December 31, 2008 include $198 million
related to the Rural Cellular acquisition. Amortization expense was $1,383
million, $1,341 million, and $1,423 million for the years ended December
31, 2008, 2007 and 2006, respectively and is estimated to be $1,430 mil-
lion in 2009, $1,139 million in 2010, $934 million in 2011, $713 million in
2012 and $552 million in 2013.
During 2008, we entered into an agreement to acquire a non-exclusive
license (the IP License) to a portfolio of intellectual property owned by
an entity formed for the purpose of acquiring and licensing intellectual
property. We paid an initial fee of $100 million for the IP License, which
is included in Other intangible assets and is being amortized over the
expected useful lives of the licensed intellectual property. In addition, we
executed a subscription agreement (with a capital commitment of $250
million, of which approximately $214 million is remaining to be funded
at December 31, 2008, as required through 2012) to become a member
in a limited liability company (the LLC) formed by the same entity for
the purpose of acquiring and licensing additional intellectual property.
In connection with this investment, we will receive non-exclusive license
rights to certain intellectual property acquired by the LLC for an annual
license fee.