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Intangible Assets and Goodwill

3 Months Ended

Jun. 30, 2011

Notes To Condensed Consolidated Financial Statements [Abstract]

5. Intangible Assets and Goodwill

Intangible assets at June 30, 2011 and December 31, 2010 consisted of the following:

	June 30, 2011						December 31, 2010
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	460,524	$	(248,972)	$	211,552	$	453,523	$	(229,143)	$	224,380
Supplier relationships		29,000		(17,642)		11,358		29,000		(16,192)		12,808
Software & technology		174,823		(129,193)		45,630		172,188		(118,390)		53,798
Trademarks & trade names		37,305		(32,345)		4,960		36,322		(30,224)		6,098
Non-compete agreements		8,030		(7,700)		330		7,845		(7,486)		359
Total intangible assets	$	709,682	$	(435,852)	$	273,830	$	698,878	$	(401,435)	$	297,443

Amortization expense related to intangible assets was $14 million and $16 million for the three months ended June 30, 2011 and 2010, respectively, and $29 million and $32 million for the six months ended June 30, 2011 and 2010, respectively. The future amortization expense as of June 30, 2011 is as follows:

	Amount
Remaining for year ended December 31, 2011	$	28,761
Year ended December 31, 2012		52,413
Year ended December 31, 2013		47,081
Year ended December 31, 2014		41,560
Year ended December 31, 2015		36,273
Thereafter		67,742
Total	$	273,830

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

The changes in the carrying amount of goodwill, by reporting segment, for the six months ended June 30, 2011 is as follows:

	Balance at December 31, 2010 (1)		Acquired during the period		Other (2)		Balance at June 30, 2011
North America Mailing	$	357,918	$	-	$	11,343	$	369,261
International Mailing		181,530		-		14,052		195,582
Small & Medium Business Solutions		539,448		-		25,395		564,843

Production Mail		141,476		-		2,919		144,395
Software		678,101		-		(1,948)		676,153
Management Services		494,433		-		3,384		497,817
Mail Services		259,102		-		253		259,355
Marketing Services		194,233		-		-		194,233
Enterprise Business Solutions		1,767,345		-		4,608		1,771,953
Total	$	2,306,793	$	-	$	30,003	$	2,336,796

(1) Prior year amounts have been reclassified to conform to the current year presentation.

(2) Primarily foreign currency translation adjustments.

- 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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