Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

Intangible assets consisted of the following:

	September 30, 2023						December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	155,712	$	(91,603)	$	64,109	$	155,715	$	(80,188)	$	75,527
Software & technology	21,941		(19,939)		2,002		22,000		(19,583)		2,417
Total intangible assets	$	177,653	$	(111,542)	$	66,111	$	177,715	$	(99,771)	$	77,944

Amortization expense for the three months ended September 30, 2023 and 2022 was $4 million and $5 million, respectively and amortization expense for the nine months ended September 30, 2023 and 2022 was $12 million and $20 million, respectively.

Future amortization expense as of September 30, 2023 is shown in the table below. Actual amortization expense may differ due to, among other things, fluctuations in foreign currency exchange rates, acquisitions, divestitures and impairment charges.

Remainder 2023	$	3,928
2024	15,714
2025	15,510
2026	14,520
2027	11,467
Thereafter	4,972
Total	$	66,111

Goodwill

Changes in the carrying value of goodwill by reporting segment are shown in the table below.

	December 31, 2022		Impairment		Currency impact		September 30, 2023
Global Ecommerce	$	339,184	$	(118,599)	$	—	$	220,585
Presort Services	223,763		—		—		223,763
SendTech Solutions	504,004		—		(2,934)		501,070
Total goodwill	$	1,066,951	$	(118,599)	$	(2,934)	$	945,418

Global Ecommerce goodwill is net of accumulated goodwill impairment charges of $317 million and $198 million at September 30, 2023 and December 31, 2022, respectively.

At the end of the second quarter of 2023, we determined that the performance of our Global Ecommerce reporting unit through June 30, 2023 and continuing changes in macroeconomic conditions, was a triggering event that caused us to evaluate the Global Ecommerce goodwill for impairment. To assess Global Ecommerce goodwill for impairment, we determined the fair value of the reporting unit and compared it to the unit's carrying value, including goodwill. We engaged a third-party to assist in the determination of the fair value of the reporting unit. The fair value was estimated using a discounted cash flow model based on management developed cash flow projections, which included judgements and assumptions related to revenue growth rates, operating margins, operating income, and a discount rate. We determined that the estimated fair value of the reporting unit was less than its carrying value and recorded a non-cash, pre-tax goodwill impairment charge of $119 million in the second quarter of 2023. Future changes in any of these judgements or assumptions could materially affect the determination of fair value and result in an additional impairment charge in the future. The estimates and assumptions are considered Level 3 inputs under the fair value hierarchy.