|12 Months Ended
Dec. 31, 2021
|Business Combinations [Abstract]
In October 2021, we acquired Roadie, Inc. ("Roadie"), a technology platform that provides local same-day delivery with operations throughout the United States. The Roadie technology platform is purpose-built to connect merchants and consumers with contract drivers to enable efficient and scalable same-day local delivery services for items that are not compatible with the UPS network. The acquisition was funded using cash from operations. We report Roadie within Supply Chain Solutions. The financial results of the acquired business were not material to our results of operations for the fourth quarter or the year.
The estimated fair value of assets acquired and liabilities assumed are subject to change based on completion of our purchase accounting. The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed as of the acquisition date (in millions):
Goodwill recognized of approximately $375 million is attributable to expected synergies from future growth, including synergies to our U.S. Domestic Package segment. We have allocated $243 and $132 million of the recognized goodwill to Supply Chain Solutions and the U.S. Domestic Package segment, respectively. None of the goodwill is expected to be deductible for income tax purposes.
The intangible assets acquired of approximately $231 million primarily consist of $145 million of technology (amortized over 8 years), $67 million of trade name (amortized over 10 years), and an additional $19 million in other intangibles (amortized over an average of 8 years). The carrying value of accounts receivable approximates fair value.
Acquisition related costs were not material, and were expensed as incurred and included in Other expenses within the statements of consolidated income.
The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef