AT&T INC.T

AT&T INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 9, 20263 min read
NOTE 9. GOODWILL AND OTHER INTANGIBLE ASSETS

We test goodwill for impairment at a reporting unit level, which is deemed to be our principal operating segments or one level below, using the methodology described in Note 1. With our annual impairment testing as of October 1, the calculated fair value of each reporting unit exceeded its book value.

Changes to our goodwill in 2024 resulted from a third-quarter noncash goodwill impairment charge of $4,422 in our consolidated statements of income, which represented the entirety of our Business Wireline reporting unit goodwill. The decline in fair value was primarily due to the change in the long-term strategic plan of our Business Wireline reporting unit, which reflected lower long-term projected future cash flows associated with the industry-wide secular decline, including a faster-than-previously anticipated decline of legacy services.

Our Communications segment has three reporting units: Mobility, Consumer Wireline and Business Wireline. Business Wireline goodwill was fully impaired in 2024. The reporting unit is deemed to be the operating segment for Latin America and its goodwill was fully impaired in 2022. At December 31, 2025, accumulated goodwill impairments totaled $29,234.
The following table sets forth the changes in the carrying amounts of goodwill for the Communications segment:
20252024
Balance at
Jan. 1		Dispositions
and other		Balance at
Dec. 31		Balance at
Jan. 1
Impairment
Balance at
Dec. 31
Communications
Goodwill$91,840 $(7)$91,833 $91,840 $— $91,840 
Accumulated Impairments(28,408)— (28,408)(23,986)(4,422)(28,408)
Total$63,432 $(7)$63,425 $67,854 $(4,422)$63,432 

We review amortizing intangible assets for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable over the remaining life of the asset or asset group.

In 2025, we performed a qualitative impairment assessment, which indicated it was more likely than not that the fair value of our FCC wireless licenses exceeded the book value and did not result in an impairment. In 2024, we performed a quantitative impairment assessment, which reflected the fair value of our FCC wireless licenses exceeded their book value.

FCC wireless licenses increased in 2025 primarily due to spectrum acquisitions and capitalized interest. FCC wireless licenses increased in 2024 primarily due to compensable relocation and incentive payments and $199 of capitalized interest. (See Notes 6 and 23)
Our other intangible assets at December 31 are summarized as follows:
20252024
Other Intangible Assets
Weighted-Average
Life
Gross
Carrying
Amount
Accumulated
Amortization		Currency
Translation
Adjustment
Gross
Carrying
Amount
Accumulated
Amortization		Currency
Translation
Adjustment
Amortized intangible
assets:
Wireless licenses
21.3 years$3,582 $831 $(73)$2,999 $696 $(343)
Customer lists and
   relationships
N/A— — — 349 275 (74)
Trademarks, trade names
   and other
13.2 years42 23 (6)43 23 (6)
Total21.2 years$3,624 $854 $(79)$3,391 $994 $(423)

Indefinite-lived intangible assets not subject to amortization:
Wireless licenses$125,470 $125,075 
Trade names5,241 5,241 
Total$130,711 $130,316 
Amortized intangible assets are definite-life assets, and, as such, we record amortization expense based on a method that most appropriately reflects our expected cash flows from these assets. Amortization expense for definite-life intangible assets was $140 for the year ended December 31, 2025, $159 for the year ended December 31, 2024 and $184 for the year ended December 31, 2023. Estimated amortization expense for the next five years is: $178 for 2026, $178 for 2027, $178 for 2028, $178 for 2029 and $176 for 2030.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 12, 2025
2023Feb 23, 2024
2022Feb 13, 2023
2021Feb 16, 2022
2020Feb 25, 2021
2019Feb 20, 2020
2018Feb 20, 2019
2017Feb 20, 2018
2016Feb 17, 2017
2015Feb 18, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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