Windstream 2012 Annual Report Download - page 151

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-53
4. Goodwill and Other Intangible Assets, Continued:
Intangible assets were as follows at December 31:
2012 2011
(Millions)
Gross
Cost
Accumulated
Amortization
Net Carrying
Value
Gross
Cost
Accumulated
Amortization
Net Carrying
Value
Franchise rights $ 1,285.1 $ (157.6) $ 1,127.5 $ 1,285.1 $ (114.8) $ 1,170.3
Customer lists (a) 1,914.0 (747.6) 1,166.4 1,939.0 (464.2) 1,474.8
Cable franchise rights 39.8 (25.9) 13.9 39.8 (24.7) 15.1
Other (a) 37.9 (34.4) 3.5 44.9 (19.8) 25.1
Balance $ 3,276.8 $ (965.5) $ 2,311.3 $ 3,308.8 $ (623.5) $ 2,685.3
(a) Changes in the gross cost of intangible assets were associated with the acquisition of PAETEC as previously discussed
in Note 3.
Intangible asset amortization methodology and useful lives were as follows as of December 31, 2012:
Intangible Assets Amortization Methodology Estimated Useful Life
Franchise rights straight-line 30 years
Customer lists sum of years digits 9 - 15 years
Cable franchise rights straight-line 15 years
Other straight-line 1 - 3 years
Amortization expense for intangible assets subject to amortization was $342.0 million, $220.6 million and $154.1 million in
2012, 2011 and 2010, respectively. Amortization expense for intangible assets subject to amortization is estimated to be $291.2
million, $256.2 million, $223.1 million, $185.0 million and $157.2 million in 2013, 2014, 2015, 2016 and 2017, respectively.