Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

Intangible assets consisted of the following:



	September 30, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	353,241	$	(244,275	)	$	108,966	$	407,901	$	(269,100	)	$	138,801
Supplier relationships	29,000		(24,288		)	4,712		29,000		(22,113		)	6,887
Software & technology	166,397		(153,153		)	13,244		169,632		(151,628		)	18,004
Trademarks & trade names	35,177		(33,549		)	1,628		35,078		(32,615		)	2,463
Non-compete agreements	7,349		(7,311		)	38		7,471		(7,412		)	59
Total intangible assets	$	591,164	$	(462,576	)	$	128,588	$	649,082	$	(482,868	)	$	166,214

Amortization expense for intangible assets was $8 million and $9 million for the three months ended September 30, 2013 and 2012, respectively, and $26 million and $30 million for the nine months ended September 30, 2013 and 2012, respectively. The future amortization expense for intangible assets as of September 30, 2013 was as follows:



Remaining for year ended December 31, 2013	$	8,848
Year ended December 31, 2014	34,246
Year ended December 31, 2015	30,288
Year ended December 31, 2016	22,935
Year ended December 31, 2017	11,352
Thereafter	20,919
Total	$	128,588

Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, impairments, future acquisitions and accelerated amortization.

Goodwill

As a result of the change in reporting segments, we reallocated goodwill among some of our segments and performed the required goodwill impairment test. Based on the results of the impairment tests, we determined that the estimated fair values of the affected reporting units exceeded the carrying values.

The changes in the carrying amount of goodwill, by reporting segment, for the nine months ended September 30, 2013 were as follows:



	Gross value before accumulated impairment		Accumulated impairment			December 31, 2012		Impairment (2)			Other (1)			September 30, 2013
North America Mailing	$	355,874	$	—		$	355,874	$	—		$	2,439		$	358,313
International Mailing	183,908		—			183,908		(1,162		)	(1,633		)	181,113
Small & Medium Business Solutions	539,782		—			539,782		(1,162		)	806			539,426

Production Mail	131,865		—			131,865		—			(15,050		)	116,815
Management Services ⁽²⁾	488,399		(84,500		)	403,899		(100,253		)	(1,159		)	302,487
Presort Services	259,106		(63,965		)	195,141		—			—			195,141
Enterprise Business Solutions	879,370		(148,465		)	730,905		(100,253		)	(16,209		)	614,443

Digital Commerce Solutions	865,451		—			865,451		—			12,345			877,796

Total	$	2,284,603	$	(148,465	)	$	2,136,138	$	(101,415	)	$	(3,058	)	$	2,031,665
Reclassified to Assets held for sale ⁽²⁾														(302,487		)
Balance at September 30, 2013														$	1,729,178


(1)	Includes the impact of reallocating goodwill as a result of the change in segments and foreign currency translation adjustments.

(2)

The goodwill impairment charges are included in (loss) income from discontinued operations in the Condensed Consolidated Statements of Income (Loss). The remaining carrying value of goodwill in the Management Services segment is included in assets held for sale in the Condensed Consolidated Balance Sheet (see Note 4). Management Services was previously a reporting segment prior to our change in segment reporting (see Note 2).

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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