Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v2.4.0.8
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2014
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, 2014 and December 31, 2013 (in millions):
 
U.S. Domestic
Package
 
International
Package
 
Supply Chain &
Freight
 
Consolidated
December 31, 2013:
$
—

 
$
420

 
$
1,770

 
$
2,190

Acquired
—

 
—

 
21

 
21

Currency / Other
—

 
—

 
(3
)
 
(3
)
March 31, 2014:
$
—

 
$
420

 
$
1,788

 
$
2,208


The goodwill acquired in the Supply Chain & Freight segment was related to our February 2014 acquisition of Polar Speed Distribution Limited ("Polar Speed"), a U.K.-based company that provides temperature-sensitive pharmaceutical supply chain solutions in the U.K. and continental Europe. The acquisition of Polar Speed was not material to our consolidated financial position or results of operations.
The purchase price allocation for acquired companies can be modified for up to one year from the date of acquisition. As of March 31, 2014, the purchase price allocation for Polar Speed had not been completed, and the preliminary purchase price allocation included in our consolidated balance sheet is based on the current best estimates of management. We anticipate completing the purchase price allocation in the second quarter of 2014, which may result in adjustments to the carrying values of Polar Speed's recorded assets and liabilities, including any residual value allocated to goodwill.
The remaining change in goodwill for the Supply Chain & Freight segment 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, 2014 and December 31, 2013 (in millions):
 
Gross Carrying
Amount
 
Accumulated
Amortization
 
Net Carrying
Value
March 31, 2014:
 
 
 
 
 
Capitalized software
$
2,481

 
$
(1,924
)
 
$
557

Licenses
225

 
(109
)
 
116

Franchise rights
117

 
(72
)
 
45

Customer lists
113

 
(59
)
 
54

Trademarks, patents, and other
36

 
(12
)
 
24

Total Intangible Assets, Net
$
2,972


$
(2,176
)
 
$
796

December 31, 2013:
 
 
 
 
 
Capitalized software
$
2,420

 
$
(1,897
)
 
$
523

Licenses
220

 
(97
)
 
123

Franchise rights
117

 
(70
)
 
47

Customer lists
118

 
(62
)
 
56

Trademarks, patents, and other
37

 
(11
)
 
26

Total Intangible Assets, Net
$
2,912

 
$
(2,137
)
 
$
775