Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7 Intangible Assets

Licenses

TDS reviews opportunities to acquire additional wireless spectrum, including pursuant to FCC auctions. TDS also may seek to divest outright or exchange wireless spectrum that is not strategic to its long-term success. Prior to 2009, TDS accounted for UScellular’s share repurchases as step acquisitions, allocating a portion of the share repurchase value to TDS’ Licenses. Consequently, UScellular's Licenses on a stand-alone basis do not equal the TDS consolidated Licenses related to UScellular. Activity related to TDS' Licenses is presented below.


	UScellular		TDS Telecom		Total
(Dollars in millions)
Balance at December 31, 2020	$	2,633	$	5	$	2,638
Acquisitions	1,464		—		1,464
Transferred to Assets held for sale	(18)		—		(18)



Capitalized interest	13		—		13
Balance at December 31, 2021	4,092		5		4,097
Acquisitions	595		—		595
Impairment1	(3)		—		(3)
Transferred to Assets held for sale	1		—		1

Exchanges - Licenses received	1		—		1

Capitalized interest	8		—		8
Balance at December 31, 2022	$	4,694	$	5	$	4,699

1Impairment charge relates to licenses in markets where UScellular no longer expects to meet FCC buildout requirements.

Auction 107

In February 2021, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 254 wireless spectrum licenses in the 3.7-3.98 GHz bands (Auction 107) for $1,283 million. UScellular paid $30 million of this amount in 2020 and the remainder in March 2021. The wireless spectrum licenses from Auction 107 were granted by the FCC in July 2021. Additionally, UScellular expects to be obligated to pay approximately $185 million in total from 2021 through 2024 related to relocation costs and accelerated relocation incentive payments. Such additional costs were accrued and capitalized at the time the licenses were granted, and are adjusted as necessary as the estimated obligation changes. UScellular paid $36 million and $8 million related to the additional costs in October 2021 and September 2022, respectively. At December 31, 2022, the remaining estimated payments of approximately $133 million and $8 million are included in Other current liabilities and Other deferred liabilities and credits, respectively, and at December 31, 2021, the remaining payments of approximately $17 million and $128 million are included in Other current liabilities and Other deferred liabilities and credits, respectively, in the Consolidated Balance Sheet. The spectrum must be cleared by incumbent providers before UScellular can access it. UScellular does not expect to have access to this spectrum until late 2023.

Auction 110

In January 2022, the FCC announced by way of public notice that UScellular was the provisional winning bidder for 380 wireless spectrum licenses in the 3.45-3.55 GHz band (Auction 110) for $580 million. UScellular paid $20 million of this amount in 2021 and the remainder in January and February 2022. The advance payment was included in Other assets and deferred charges in the December 31, 2021 Consolidated Balance Sheet. The wireless spectrum licenses from Auction 110 were granted by the FCC on May 4, 2022.

Goodwill

The Goodwill balance of TDS Telecom was $547 million at both December 31, 2022 and 2021, net of accumulated impairment losses of $29 million recorded in prior periods.

Other intangible assets

Activity related to TDS' Other intangible assets is presented below.


	December 31, 2022						December 31, 2021
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
(Dollars in millions)
Franchise rights	$	255	$	(85)	$	170	$	255	$	(68)	$	187
Customer lists	26		(25)		1		27		(23)		4
Internet protocol addresses	34		(2)		32		5		—		5
Other	1		—		1		1		—		1
Total	$	316	$	(112)	$	204	$	288	$	(91)	$	197

Amortization expense for intangible assets was $21 million, $21 million and $26 million for the years ended December 31, 2022, 2021 and 2020, respectively. Based on the current balance of finite-lived intangible assets, the estimated amortization expense is $22 million, $19 million, $19 million, $19 million and $19 million for the years 2023 through 2027, respectively.