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Goodwill, Customer Relationships and Other Intangible Assets | 6 Months Ended
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Jun. 30, 2022
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:
| June 30, 2022 |  | December 31, 2021
| (Dollars in millions)
Goodwill | $ | 15,947 |  |  | 15,986 |
Indefinite-lived intangible assets | $ | 9 |  |  | 9 |
Other intangible assets subject to amortization: |  |  |
Customer relationships, less accumulated amortization of $3,422 and $11,740(1) | 5,002 |  |  | 5,365 |
Capitalized software, less accumulated amortization of $3,741 and $3,624 | 1,500 |  |  | 1,459 |
Trade names, patents and other, less accumulated amortization of $172 and $160 | 117 |  |  | 137 |
Total other intangible assets, net | $ | 6,628 |  |  | 6,970 |
______________________________________________________________________ (1) Certain customer relationships with a gross carrying value of $8.7 billion became fully amortized during 2021 and were retired during the first quarter of 2022. As of June 30, 2022, the gross carrying amount of goodwill, customer relationships, indefinite-lived and other intangible assets was $29.9 billion. Our goodwill was derived from numerous acquisitions where the purchase price exceeded the fair value of the net assets acquired. We assess our goodwill and other indefinite-lived intangible assets 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 any of our reporting units exceeds its fair value. Our annual impairment assessment date for goodwill is October 31, at which date we assess our reporting units. Our annual impairment assessment date for indefinite-lived intangible assets other than goodwill is December 31. Our reporting units are not discrete legal entities with discrete full financial statements. Our assets and liabilities are employed in and relate to the operations of multiple reporting units. For each reporting unit, we compare its estimated fair value of equity to its carrying value of equity that we assign to the reporting unit. If the estimated fair value of the reporting unit is greater than the carrying value, we conclude that no impairment exists. If the estimated fair value of the reporting unit is less than the carrying value, we record a non-cash impairment equal to the excess amount. Depending on the facts and circumstances, we typically estimate the fair value of our reporting units by considering either or both of (i) a discounted cash flow method, which is based on the present value of projected cash flows over a discrete projection period and a terminal value, which is based on the expected normalized cash flows of the reporting units following the discrete projection period, and (ii) a market approach, which includes the use of market multiples of publicly-traded companies whose services are comparable to ours. The following table shows the rollforward of goodwill assigned to our reportable segments from December 31, 2021 through June 30, 2022:
| Business | Mass Markets | Total
| (Dollars in millions)
As of December 31, 2021(1)(2) | $ | 11,235 |  | 4,751 |  | 15,986 |
Effect of foreign currency exchange rate change and other | (39) |  | — |  | (39) |
As of June 30, 2022(1)(2) | $ | 11,196 |  | 4,751 |  | 15,947 |
______________________________________________________________________ (1)Goodwill at June 30, 2022 and December 31, 2021 is net of accumulated impairment losses of $7.7 billion. (2)As of June 30, 2022 and December 31, 2021, these amounts exclude goodwill classified as held for sale of $2.9 billion, primarily related to the recently completed divestiture of the Latin American business and planned divestiture of the ILEC business. See Note 2 for additional information. We report our results within two segments: Business and Mass Markets. See Note 12—Segment Information for more information on these segments and the underlying sales channels. As of June 30, 2022, we have five reporting units for goodwill impairment testing, which are (i) Mass Markets, (ii) North America Business (iii) Europe, Middle East and Africa region, (iv) Asia Pacific region and (v) Latin America region. Total amortization expense for finite-lived intangible assets for the three months ended June 30, 2022 and 2021 totaled $277 million and $318 million, respectively, and for the six months ended June 30, 2022 and 2021, totaled $551 million and $743 million, respectively. We estimate that total amortization expense for finite-lived intangible assets for the years ending December 31, 2022 through 2026 will be as provided in the table below. As a result of reclassifying our Latin American and ILEC businesses as being held for sale on our June 30, 2022 consolidated balance sheet, the amounts presented below do not include future amortization expense for intangible assets of the businesses to be divested. See Note 2—Recently Completed Divestiture of the Latin American Business and Planned Divestiture of ILEC Business for more information.
| (Dollars in millions)
2022 (remaining six months) | $ | 523 |
2023 | 970 |
2024 | 898 |
2025 | 832 |
2026 | 755 |

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