Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2011
GOODWILL AND INTANGIBLE ASSETS

NOTE 7. GOODWILL AND INTANGIBLE ASSETS

The following table indicates the allocation of goodwill by reportable segment as of September 30, 2011 and December 31, 2010 (in millions):

 

     U.S. Domestic
Package
     International
Package
    Supply Chain &
Freight
    Consolidated  

December 31, 2010 balance

   $ —         $ 377      $ 1,704      $ 2,081   

Acquired

     —           —          —          —     

Currency / Other

     —           (10     (5     (15
  

 

 

    

 

 

   

 

 

   

 

 

 

September 30, 2011 balance

     —         $ 367      $ 1,699      $ 2,066   
  

 

 

    

 

 

   

 

 

   

 

 

 

The decrease in goodwill in the International Package and Supply Chain & Freight segments was due to the impact of the strengthening U.S. Dollar on the translation of non-U.S. Dollar goodwill balances, as well as the reversal of acquisition-related restructuring reserves and the related deferred tax impact in the Supply Chain and Freight segment.

 

The following is a summary of intangible assets as of September 30, 2011 and December 31, 2010 (in millions):

 

     Gross Carrying
Amount
     Accumulated
Amortization
    Net Carrying
Value
 

September 30, 2011:

       

Trademarks, licenses, patents, and other

   $ 240       $ (88   $ 152   

Customer lists

     97         (65     32   

Franchise rights

     109         (57     52   

Capitalized software

     1,996         (1,610     386   
  

 

 

    

 

 

   

 

 

 

Total Intangible Assets, Net

   $ 2,442       $ (1,820   $ 622   
  

 

 

    

 

 

   

 

 

 

December 31, 2010:

       

Trademarks, licenses, patents, and other

   $ 187       $ (50   $ 137   

Customer lists

     99         (59     40   

Franchise rights

     109         (52     57   

Capitalized software

     1,927         (1,562     365   
  

 

 

    

 

 

   

 

 

 

Total Intangible Assets, Net

   $ 2,322       $ (1,723   $ 599