Goodwill, Customer Relationships and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Customer Relationships and Other Intangible Assets

Goodwill, Customer Relationships and Other Intangible Assets

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

	March 31, 2023		December 31, 2022
	(Dollars in millions)
Goodwill	$	9,360	9,360
Other intangible assets, less accumulated amortization of $1,938 and $1,924	$	129	138

Substantially all of our goodwill was derived from Lumen's acquisition of us where the purchase price exceeded the fair value of the net assets acquired.

We are required to assess our goodwill for impairment annually, or under certain circumstances, more frequently, such as when events or changes in circumstances indicate there may be impairment. We are required to write down the value of goodwill only when our assessment determines the carrying value of equity of our reporting unit exceeds its fair value. Our annual impairment assessment date for goodwill is October 31, at which date we assess goodwill at our reporting unit. In reviewing the criteria for reporting units, we have determined that we are one reporting unit.

As of March 31, 2023, the gross carrying amount of goodwill, customer relationships and other intangible assets was $11.4 billion. The amortization expense for finite-lived intangible assets for the three months ended March 31, 2023 and 2022 totaled $17 million and $19 million, respectively.

We estimate that total amortization expense for intangible assets for the years ending December 31, 2023 through 2027 will be as follows:

	(Dollars in millions)
2023 (remaining nine months)	$	48
2024	32
2025	16
2026	10
2027	7