Verizon Wireless 2009 Annual Report Download - page 56

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Notes to Consolidated Financial Statements continued
54
Other Intangible Assets
The following table displays the composition of Other intangible assets:
(dollars in millions)
At December 31, 2009 At December 31, 2008
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Other intangible assets:
Customer lists (6 to 8 years) $ 3,134 $ (1,012) $ 2,122 $ 1,415 $ (595) $ 820
Non-network internal-use software (2 to 7 years) 8,455 (4,346) 4,109 8,099 (4,102) 3,997
Other (1 to 25 years) 865 (332) 533 465 (83) 382
Total $ 12,454 $ (5,690) $ 6,764 $ 9,979 $ (4,780) $ 5,199
At December 31, 2009, the gross amount of Customer lists, Non-
network software and Other includes $2,391 million related to the Alltel
acquisition.
The annual amortization expense for Other intangible assets were as
follows:
Years (dollars in millions)
2009 $ 1,970
2008 1,383
2007 1,341
Estimated future annual amortization expense for Other intangible assets
at December 31, 2009 is as follows:
Years (dollars in millions)
2010 $ 1,848
2011 1,496
2012 1,224
2013 987
2014 582
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, net and is being amortized over the
estimated average remaining lives of the licensed intellectual property. In
addition, we executed a subscription agreement (with a capital commit-
ment up to $250 million, of which approximately $176 million remains to
be funded at December 31, 2009, 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-exclu-
sive license rights to certain intellectual property acquired by the LLC for
an annual license fee.
NOTE 5
PLANT, PROPERTY AND EQUIPMENT
The following table displays the details of Plant, property and equipment,
which is stated at cost:
(dollars in millions)
At December 31, 2009 2008
Land $ 925 $ 813
Buildings and equipment 21,492 20,085
Network equipment 184,547 174,715
Furniture, office and data processing equipment 9,083 9,177
Work in progress 3,331 3,038
Leasehold improvements 4,694 3,903
Vehicles and other 4,446 3,874
228,518 215,605
Less accumulated depreciation 137,052 129,059
Total $ 91,466 $ 86,546