Goodwill, Customer Relationships and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill and other intangible assets

Goodwill, customer relationships and other intangible assets consisted of the following:

	As of December 31,
	2023		2022(1)
	(Dollars in millions)
Goodwill(2)	$	1,964	12,657
Indefinite-lived intangible assets	$	9	9
Other intangible assets subject to amortization:
Customer relationships(3), less accumulated amortization of $4,248 and $3,606	3,811		4,574
Capitalized software, less accumulated amortization of $4,045(4) and $3,895	1,564		1,482
Trade names, patents and other, less accumulated amortization of $72(4) and $188	86		101
Total other intangible assets, net	$	5,470	6,166

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(1)These values exclude assets classified as held for sale.

(2)We recorded cumulative non-cash, non-tax-deductible goodwill impairment charges of $10.7 billion during the year ended December 31, 2023.

(3)For the year ended December 31, 2023, customer relationships decreased $121 million in conjunction with the sale of select CDN customer contracts in the fourth quarter of 2023 that resulted in a net loss of $73 million included in selling, general and administrative expenses in our consolidated statements of operations.

(4)Certain capitalized software with a gross carrying value of $183 million and trade names with a gross carrying value of $130 million became fully amortized during 2022 and were retired during the first quarter of 2023.

Schedule of goodwill attributable to segments

The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2021 through December 31, 2023.

	Business		Mass Markets	Total
	(Dollars in millions)
As of December 31, 2021	$	11,235	4,751	15,986
Effect of foreign currency exchange rate change and other	$	(58)	—	(58)
Impairment	$	(3,271)	—	(3,271)
As of December 31, 2022(1)	$	7,906	4,751	12,657
Impairment	(7,906)		(2,787)	(10,693)
As of December 31, 2023(1)	$	—	1,964	1,964

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(1)Goodwill at December 31, 2023, December 31, 2022 and December 31, 2021 is net of accumulated impairment losses of $21.7 billion, $11.0 billion and $7.7 billion, respectively.

Schedule of estimated amortization expense for intangible assets

We estimate that total amortization expense for finite-lived intangible assets for the years ending December 31, 2024 through 2028 will be as provided in the table below.

	(Dollars in millions)
2024	$	922
2025	847
2026	803
2027	722
2028	657

Schedule of cost of equity

	As of October 31, 2022
	Reporting Units
	Mass Markets		NA Business		EMEA		APAC
Weighted average cost of capital	9.4	%	9.4	%	9.8	%	11.3	%
After-tax cost of debt	4.7	%	4.7	%	5.1	%	6.3	%
Cost of equity	14.0	%	14.0	%	14.4	%	16.2	%