Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill by reportable segment as of September 30, 2015 and December 31, 2014 (in millions):
 
U.S. Domestic
Package
 
International
Package
 
Supply Chain &
Freight
 
Consolidated
December 31, 2014:
$
—

 
$
449

 
$
1,735

 
$
2,184

Acquired
709

 
—

 
609

 
1,318

Currency / Other
—

 
(23
)
 
(37
)
 
(60
)
September 30, 2015:
$
709

 
$
426

 
$
2,307

 
$
3,442


The goodwill acquired in the U.S Domestic Package segment was related to our August 2015 acquisition of Coyote Logistics Midco, Inc ("Coyote"). The goodwill acquired in the Supply Chain & Freight segment was related to our August 2015 acquisition of Coyote, our May 2015 acquisition of Parcel Pro, Inc. ("Parcel Pro"), our June 2015 acquisition of the Insured Parcel Services division of G4S International Logistics ("IPS") and our March 2015 acquisition of Poltraf Sp. z.o.o. ("Poltraf"). The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. The purchase price allocations for Coyote, Parcel Pro, and IPS have not been finalized. See note 8 for further discussion of these acquisitions.
The majority of the remaining change in goodwill for both the International Package and Supply Chain & Freight segments was due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances.
The following is a summary of intangible assets as of September 30, 2015 and December 31, 2014 (in millions):
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Value
September 30, 2015:
 
 
 
 
 
Capitalized software
$
2,672

 
$
(1,979
)
 
$
693

Licenses
214

 
(163
)
 
51

Franchise rights
122

 
(81
)
 
41

Customer relationships
513

 
(22
)
 
491

Trademarks, patents, and other
261

 
(14
)
 
247

Total Intangible Assets, Net
$
3,782


$
(2,259
)
 
$
1,523

December 31, 2014:
 
 
 
 
 
Capitalized software
$
2,641

 
$
(1,997
)
 
$
644

Licenses
217

 
(133
)
 
84

Franchise rights
117

 
(77
)
 
40

Customer relationships
123

 
(66
)
 
57

Trademarks, patents, and other
31

 
(9
)
 
22

Total Intangible Assets, Net
$
3,129

 
$
(2,282
)
 
$
847


As described in note 8, intangible assets increased by $658 million related to the acquisition of Coyote in the third quarter of 2015.