Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets

Intangible assets consisted of the following:



	March 31, 2014							December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	350,929	$	(254,937	)	$	95,992	$	354,373	$	(251,388	)	$	102,985
Supplier relationships	29,000		(25,738		)	3,262		29,000		(25,013		)	3,987
Software & technology	167,276		(156,796		)	10,480		167,009		(155,009		)	12,000
Trademarks & trade names	34,378		(33,264		)	1,114		35,366		(33,985		)	1,381
Non-compete agreements	7,448		(7,418		)	30		7,407		(7,373		)	34
Total intangible assets	$	589,031	$	(478,153	)	$	110,878	$	593,155	$	(472,768	)	$	120,387

Amortization expense for intangible assets was $6 million and $9 million for the three months ended March 31, 2014 and 2013, respectively.

The future amortization expense for intangible assets as of March 31, 2014 was as follows:



Remaining for year ended December 31, 2014	$	25,170
Year ending December 31, 2015	30,124
Year ending December 31, 2016	22,870
Year ending December 31, 2017	11,392
Year ending December 31, 2018	8,610
Thereafter	12,712
Total	$	110,878

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

Goodwill

As a result of the reclassification of our shipping solutions operations from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment, we reallocated goodwill on a relative fair value basis 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 value of goodwill for the three months ended March 31, 2014 were as follows:



	Gross value before accumulated impairment (1)		Accumulated impairment		December 31, 2013		Other (2)			March 31, 2014
North America Mailing	$	326,665	$	—	$	326,665	$	(627	)	$	326,038
International Mailing	182,261		—		182,261		864			183,125
Small & Medium Business Solutions	508,926		—		508,926		237			509,163

Production Mail	118,060		—		118,060		143			118,203
Presort Services	195,140				195,140		—			195,140
Enterprise Business Solutions	313,200		—		313,200		143			313,343

Digital Commerce Solutions	903,392		—		903,392		698			904,090

Discontinued operations	9,353		—		9,353		—			9,353

Total	$	1,734,871	$	—	$	1,734,871	$	1,078		1,735,949
Reclassified to Assets held for sale										(9,353		)
Balance at March 31, 2014										$	1,726,596


(1)	Includes the reallocation of certain goodwill from the Small & Medium Business Solutions segment group to the Digital Commerce Solutions segment and discontinued operations.


(2)	Primarily represents the impact of foreign currency translation.

- 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.

+ References+ Details