XML 59 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Intangible Assets
3 Months Ended
Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Note 7.
Intangible Assets
Indefinite-Lived Intangible Assets
 
December 31,
2012
 
Net
Additions
 
March 31,
2013
 
 
 
(in millions)
 
 
FCC licenses
$
20,268

 
$
45

 
$
20,313

Trademarks
409

 

 
409

Goodwill
359

 

 
359

 
$
21,036

 
$
45

 
$
21,081


We hold 1.9 gigahertz (GHz), 800 megahertz (MHz), and 900 MHz FCC licenses authorizing the use of radio frequency spectrum to deploy our wireless services. As long as the Company acts within the requirements and constraints of the regulatory authorities, the renewal and extension of these licenses is reasonably certain at minimal cost. We are not aware of any technology being developed that would render this spectrum obsolete and have concluded that licenses, for which we have an expectation of future use, are indefinite-lived intangible assets. Our Sprint and Boost Mobile trademarks have also been identified as indefinite-lived intangible assets. Goodwill represents the excess of consideration paid over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations.
Intangible Assets Subject to Amortization
Sprint's customer relationships are amortized using the sum-of-the-months' digits method. We reduce the gross carrying value and associated accumulated amortization when specified intangible assets become fully amortized. Other intangible assets primarily include certain rights under affiliation agreements that were reacquired in connection with the acquisitions of Affiliates and Nextel Partners, Inc., which are being amortized over the remaining terms of those affiliation agreements on a straight-line basis, and the Nextel, Direct Connect and Virgin Mobile trade names, which are being amortized on a straight-line basis.
 
 
 
March 31, 2013
 
December 31, 2012
 
Useful Lives
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Net
Carrying
Value
 
 
 
 
 
 
 
(in millions)
 
 
 
 
Customer relationships
4 years
 
$
234

 
$
(233
)
 
$
1

 
$
234

 
$
(230
)
 
$
4

Other intangible assets

 
 
 
 
 
 
 
 
 
 
 
 
Trademarks
10 to 37 years
 
1,168

 
(705
)
 
463

 
1,168

 
(681
)
 
487

Reacquired rights
9 to 14 years
 
1,571

 
(818
)
 
753

 
1,571

 
(785
)
 
786

Other
9 to 10 years
 
141

 
(87
)
 
54

 
138

 
(80
)
 
58

Total other intangible assets
 
 
2,880

 
(1,610
)
 
1,270

 
2,877

 
(1,546
)
 
1,331

Total definite-lived intangible assets
 
 
$
3,114

 
$
(1,843
)
 
$
1,271

 
$
3,111

 
$
(1,776
)
 
$
1,335