Verizon Wireless 2014 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2014 Verizon Wireless annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

50
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
The amortization expense for Other intangible assets was as follows:
Years (dollars in millions)
2014 $ 1,567
2013 1,587
2012 1,540
Estimated annual amortization expense for Other intangible assets is as
follows:
Years (dollars in millions)
2015 $ 1,428
2016 1,193
2017 1,008
2018 843
2019 613
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, 2013 $ 77,744
Acquisitions (Note 2) 579
Dispositions (Note 2) (2,361)
Capitalized interest on wireless licenses 566
Reclassications, adjustments and other (781)
Balance at December 31, 2013 $ 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
Reclassications, adjustments and other includes the exchanges of wireless licenses in 2014 and 2013 as well as $0.3 and $0.9 billion of Wireless
licenses that are classied as held for sale and included in Prepaid expenses and other on our consolidated balance sheets at December 31, 2014 and
2013, respectively. See Note 2 for additional details.
At December 31, 2014 and 2013, approximately $0.4 billion and $7.7 billion, respectively, of wireless licenses were under development for
commercial service for which we were capitalizing interest costs. The decline is primarily due to the deployment of AWS licenses for commercial
service during 2014.
The average remaining renewal period of our wireless license portfolio was 4.7 years as of December 31, 2014. See Note 1 for additional details.
Goodwill
Changes in the carrying amount of Goodwill are as follows:
(dollars in millions)
Wireless Wireline Total
Balance at January 1, 2013 $ 18,172 $ 5,967 $ 24,139
Acquisitions (Note 2) 204 291 495
Balance at December 31, 2013 $ 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
The increase in Goodwill at Wireless at December 31, 2013 was primarily due to obtaining control of previously unconsolidated wireless partnerships,
which were previously accounted for under the equity method and are now consolidated. This resulted in an immaterial gain recorded during the year
ended December 31, 2013. The increase in Goodwill at Wireline at December 31, 2013 was primarily due to the acquisition of a provider of content
delivery networks.
Other Intangible Assets
The following table displays the composition of Other intangible assets, net:
(dollars in millions)
2014 2013
At December 31,
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Customer lists (5 to 13 years) $ 3,618 $ (2,924) $ 694 $ 3,639 $ (2,660) $ 979
Non-network internal-use software (3 to 7 years) 13,194 (8,462) 4,732 11,770 (7,317) 4,453
Other (2 to 25 years) 670 (368) 302 691 (323) 368
Total $ 17,482 $ (11,754) $ 5,728 $ 16,100 $ (10,300) $ 5,800