GOODWILL AND INTANGIBLE ASSETS |
GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill by reportable segment as of March 31, 2019 and December 31, 2018 (in millions):
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U.S. Domestic
Package
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International
Package
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Supply Chain &
Freight
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Consolidated |
December 31, 2018: |
$ |
715 |
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|
$ |
417 |
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$ |
2,679 |
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$ |
3,811 |
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Acquired |
— |
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2 |
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— |
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|
2 |
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Currency / Other |
— |
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(2 |
) |
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2 |
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— |
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March 31, 2019: |
$ |
715 |
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|
$ |
417 |
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$ |
2,681 |
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$ |
3,813 |
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The change in goodwill for both the International Package and Supply Chain & Freight segments was primarily 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, 2019 and December 31, 2018 (in millions):
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Gross Carrying
Amount
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Accumulated
Amortization
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Net Carrying
Value
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March 31, 2019: |
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Capitalized software |
$ |
3,783 |
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$ |
(2,524 |
) |
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$ |
1,259 |
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Licenses |
117 |
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(43 |
) |
|
74 |
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Franchise rights |
146 |
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(106 |
) |
|
40 |
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Customer relationships |
737 |
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(236 |
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501 |
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Trade name |
200 |
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— |
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|
200 |
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Trademarks, patents and other |
55 |
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(36 |
) |
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19 |
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Total Intangible Assets, Net |
$ |
5,038 |
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|
$ |
(2,945 |
) |
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$ |
2,093 |
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December 31, 2018: |
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Capitalized software |
$ |
3,693 |
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$ |
(2,478 |
) |
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$ |
1,215 |
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Licenses |
117 |
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(36 |
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|
81 |
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Franchise rights |
145 |
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(105 |
) |
|
40 |
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Customer relationships |
736 |
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(217 |
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519 |
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Trade name |
200 |
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— |
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|
200 |
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Trademarks, patents and other |
52 |
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(31 |
) |
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20 |
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Total Intangible Assets, Net |
$ |
4,943 |
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|
$ |
(2,867 |
) |
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$ |
2,075 |
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As of March 31, 2019, 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.
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