Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v2.4.0.6
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2012
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 March 31, 2012 and December 31, 2011 (in millions):
 
U.S. Domestic
Package
 
International
Package
 
Supply Chain &
Freight
 
Consolidated
December 31, 2011 balance
$
—

 
$
361

 
$
1,740

 
$
2,101

Acquired
—

 
67

 
—

 
67

Currency / Other
—

 
4

 
5

 
9

March 31, 2012 balance
—

 
$
432

 
$
1,745

 
$
2,177


The increase in goodwill in the International Package segment was due to the acquisition of Kiala S.A., a firm based in Brussels that provides e-commerce retailers a platform to offer delivery options to consumers. The purchase price allocation was not complete as of March 31, 2012 and therefore adjustments to the recorded amount of goodwill may occur in 2012 prior to the one year anniversary of the acquisition. The remaining increase in goodwill for both the International and Supply Chain & Freight segments was due to the impact of the weakening U.S. Dollar on the translation of non-U.S. Dollar goodwill balances.
The following is a summary of intangible assets as of March 31, 2012 and December 31, 2011 (in millions):
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Value
March 31, 2012:
 
 
 
 
 
Trademarks, licenses, patents, and other
$
189

 
$
(65
)
 
$
124

Customer lists
132

 
(70
)
 
62

Franchise rights
111

 
(59
)
 
52

Capitalized software
2,062

 
(1,666
)
 
396

Total Intangible Assets, Net
$
2,494

 
$
(1,860
)
 
$
634

December 31, 2011:
 
 
 
 
 
Trademarks, licenses, patents, and other
$
146

 
$
(54
)
 
$
92

Customer lists
120

 
(66
)
 
54

Franchise rights
109

 
(58
)
 
51

Capitalized software
2,014

 
(1,626
)
 
388

Total Intangible Assets, Net
$
2,389

 
$
(1,804
)
 
$
585