Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.7.0.1
GOODWILL AND INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2017
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, 2017 and December 31, 2016 (in millions):
 
U.S. Domestic
Package
 
International
Package
 
Supply Chain &
Freight
 
Consolidated
December 31, 2016:
$
715

 
$
407

 
$
2,635

 
$
3,757

Acquired

 

 
21

 
21

Currency / Other

 
3

 
(4
)
 
(1
)
March 31, 2017:
$
715

 
$
410

 
$
2,652

 
$
3,777


The change in goodwill for the Supply Chain & Freight segment was related to our January 2017 acquisition of Freightex Ltd. ("Freightex"), a U.K.-based asset-light provider of truckload, less-than truckload and specialized over-the-road services. The acquisition of Freightex was paid for with cash from operations. The acquisition of Freightex was not material to our consolidated financial position or results of operations.
In December 2016, we acquired Maze 1 Limited ("Marken"), a global provider of supply chain solutions to the life sciences industry and leader in clinical trials material storage and distribution, for approximately $570 million. As of March 31, 2017, we had no material changes to our estimated fair values of assets acquired and liabilities assumed. The financial results of Marken are included in the Supply Chain & Freight segment from the date of acquisition and were not material to our results of operations.
The estimates of the fair value of assets acquired and liabilities assumed are subject to change based on the completion of purchase accounting. The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition.
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 March 31, 2017 and December 31, 2016 (in millions):
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Value
March 31, 2017:
 
 
 
 
 
Capitalized software
$
3,016

 
$
(2,196
)
 
$
820

Licenses
109

 
(55
)
 
54

Franchise rights
128

 
(91
)
 
37

Customer relationships
731

 
(103
)
 
628

Trade name
200

 

 
200

Trademarks, patents and other
68

 
(27
)
 
41

Total Intangible Assets, Net
$
4,252


$
(2,472
)
 
$
1,780

December 31, 2016:
 
 
 
 
 
Capitalized software
$
2,933

 
$
(2,157
)
 
$
776

Licenses
131

 
(70
)
 
61

Franchise rights
128

 
(90
)
 
38

Customer relationships
724

 
(85
)
 
639

Trade name
200

 

 
200

Trademarks, patents and other
67

 
(23
)
 
44

Total Intangible Assets, Net
$
4,183

 
$
(2,425
)
 
$
1,758



As of March 31, 2017, we had a trade name with a carrying value of $200 million and licenses with a carrying value of $4 million, which are deemed to be indefinite-lived intangible assets and are included in the table above.