Windstream 2010 Annual Report Download - page 153

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Goodwill and Other Intangible Assets, Continued:
Intangible assets were as follows at December 31:
2010 2009
(Millions)
Gross
Cost
Accumulated
Amortization
Net Carrying
Value
Gross
Cost
Accumulated
Amortization
Net Carrying
Value
Wireline franchise rights (a) $ 1,285.1 $ (71.9) $ 1,213.2 $ 1,055.1 $ (32.3) $ 1,022.8
Customer lists (a) 1,097.5 (298.9) 798.6 393.1 (193.7) 199.4
Cable franchise rights (a) 39.7 (23.5) 16.2 34.1 (22.4) 11.7
Wireless license (b) - - - 16.6 - 16.6
Other (a) 19.1 (8.6) 10.5 3.2 (0.4) 2.8
Balance $ 2,441.4 $(402.9) $ 2,038.5 $ 1,502.1 $(248.8) $ 1,253.3
(a) Increases in the gross cost of intangible assets during 2010 were associated with the acquisitions of the
Acquired Companies as previously discussed in Note 3. Effective January 1, 2009, the Company
prospectively changed its assessment of useful life for its franchise rights from indefinite-lived to 30 years.
Effective with this change, these rights are now amortized on a straight-line basis in accordance with the way
in which these operations are expected to contribute to the undiscounted cash flows of the Company.
(b) During the second quarter of 2010, the Company reclassified the $16.6 million of wireless licenses acquired
from D&E to assets held for sale in the accompanying consolidated balance sheet.
Intangible asset amortization methodology and useful lives were as follows as of December 31, 2010:
Intangible Assets Amortization Methodology Estimated Useful Life
Wireline franchise rights straight-line 30 years
Customer lists sum of years digits 9 - 12 years
Cable franchise rights straight-line 15 years
Other straight-line 1 - 2 years
Amortization expense for intangible assets subject to amortization was $154.1 million in 2010, $80.9 million in
2009 and $51.9 million in 2008. Amortization expense for intangible assets subject to amortization is estimated to
be $213.1 million, $190.3 million, $164.0 million, $142.5 million and $123.5 million in 2011, 2012, 2013, 2014
and 2015, respectively.
F-53