Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets at June 30, 2017 and December 31, 2016 consisted of the following:



	June 30, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	452,614	$	(319,812	)	$	132,802	$	445,039	$	(300,906	)	$	144,133
Software & technology	152,589		(139,947		)	12,642		150,037		(136,508		)	13,529
Trademarks & other	36,981		(30,406		)	6,575		36,212		(28,702		)	7,510
Total intangible assets	$	642,184	$	(490,165	)	$	152,019	$	631,288	$	(466,116	)	$	165,172

Amortization expense was $8 million and $11 million for the three months ended June 30, 2017 and 2016, respectively and $17 million and $21 million for the six months ended June 30, 2017 and 2016, respectively.

Future amortization expense as of June 30, 2017 was as follows:



Remaining for year ending December 31, 2017	$	14,245
Year ending December 31, 2018	27,632
Year ending December 31, 2019	24,260
Year ending December 31, 2020	19,126
Year ending December 31, 2021	15,401
Thereafter	51,355
Total	$	152,019

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

Changes in the carrying value of goodwill, by reporting segment, for the six months ended June 30, 2017 are shown in the table below. Prior year amounts have been recast for the change in reportable segments.



	December 31, 2016		Acquisitions		Foreign currency translation		June 30, 2017
North America Mailing	$	354,000	$	—	$	9,095	$	363,095
International Mailing	145,566		—		8,085		153,651
Small & Medium Business Solutions	499,566		—		17,180		516,746
Production Mail	101,099		—		3,963		105,062
Presort Services	196,890		6,229		—		203,119
Enterprise Business Solutions	297,989		6,229		3,963		308,181
Software Solutions	501,591		—		5,613		507,204
Global Ecommerce	272,189		—		—		272,189
Digital Commerce Solutions	773,780		—		5,613		779,393
Total goodwill	$	1,571,335	$	6,229	$	26,756	$	1,604,320

- 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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