Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.23.1
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill as of March 31, 2023 and December 31, 2022 (in millions):
U.S. Domestic
Package		 International
Package		 Supply Chain Solutions Consolidated
December 31, 2022: $ 847  $ 492  $ 2,884  $ 4,223 
Acquired —  —  9  9 
Impairments —  —  (8) (8)
Currency / Other —  6  19  25 
March 31, 2023: $ 847  $ 498  $ 2,904  $ 4,249 
During the three months ended March 31, 2023, we recorded goodwill adjustments of $9 million relating to our November 2022 acquisition of Bomi Group. Certain areas, including our estimates of tax positions for Bomi Group, remain preliminary as of March 31, 2023.
Additionally, we recorded an immaterial impairment charge related to the closure of a trade management services business within Supply Chain Solutions. The remaining movements are due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances.
We complete our annual goodwill impairment evaluation as of July 1st on a reporting unit basis. Our 2022 annual impairment testing indicated that the fair value of goodwill associated with our Roadie reporting unit remained greater than its carrying value, although this excess was less than 10 percent. The goodwill associated with our Roadie reporting unit as of March 31, 2023 was $241 million. There were no events or changes in circumstances during the first quarter of 2023 that would indicate the carrying amount of Roadie goodwill may be impaired as of the date of this report.
For each of our reporting units and our indefinite-lived trade name, we continue to monitor the combined impact of macroeconomic conditions and business performance on our estimates of fair value.
The following is a summary of intangible assets as of March 31, 2023 and December 31, 2022 (in millions):
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
March 31, 2023:
Capitalized software $ 5,300  $ (3,598) $ 1,702 
Licenses 55  (34) 21 
Franchise rights 261  (39) 222 
Customer relationships 880  (474) 406 
Trade name 126  (10) 116 
Trademarks, patents and other 177  (37) 140 
Amortizable intangible assets $ 6,799  $ (4,192) $ 2,607 
Indefinite-lived intangible assets 204  —  204 
Total Intangible Assets, Net $ 7,003  $ (4,192) $ 2,811 
December 31, 2022:
Capitalized software $ 5,186  $ (3,500) $ 1,686 
Licenses 55  (30) 25 
Franchise rights 226  (37) 189 
Customer relationships 872  (453) 419 
Trade name 125  (8) 117 
Trademarks, patents and other 183  (27) 156 
Amortizable intangible assets $ 6,647  $ (4,055) $ 2,592 
Indefinite-lived intangible assets 204  —  204 
Total Intangible Assets, Net $ 6,851  $ (4,055) $ 2,796 
A trade name and licenses with carrying values of $200 and $4 million, respectively, as of March 31, 2023 are deemed to be indefinite-lived intangible assets, and therefore are not amortized. There were no events or changes in circumstances during the three months ended March 31, 2023 that would indicate the carrying amount of our indefinite-lived intangible assets may be impaired as of the date of this report.
Impairment tests for finite-lived intangible assets are performed when a triggering event occurs that may indicate that the carrying value of the intangible asset may not be recoverable. There were no impairment charges for finite-lived intangible assets during the three months ended March 31, 2023 or 2022.