Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Note 3—Goodwill and Intangible Assets

Goodwill

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

The following table presents the rollforward of goodwill:


	(Dollars in millions)

As of December 31, 2025(1)	$	3,638


As of March 31, 2026(1)	$	3,638

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(1) Goodwill as of both March 31, 2026 and December 31, 2025 is net of accumulated impairment losses of $4.4 billion.

Intangible Assets

Intangible assets, net is composed of the following:


	March 31, 2026				December 31, 2025
	Gross Carrying Amount		Accumulated Amortization	Net Carrying Amount	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount
	(Dollars in millions)
Capitalized software(1)	$	1,657	1,538	119	1,753	1,642	111

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(1) Certain capitalized software with a gross carrying value of $80 million became fully amortized during 2025 and were retired during the first quarter of 2026.

Total amortization expense for intangible assets was as follows:


	Three Months Ended March 31,
		2026		2025
	(Dollars in millions)
Amortization expense		$	7	8