Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets consisted of the following:



	June 30, 2015							December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	453,879	$	(257,095	)	$	196,784	$	337,438	$	(263,121	)	$	74,317
Supplier relationships	—		—			—		29,000		(27,913		)	1,087
Software & technology	168,695		(151,291		)	17,404		160,825		(154,610		)	6,215
Trademarks & other	35,959		(26,827		)	9,132		33,079		(32,525		)	554
Total intangible assets	$	658,533	$	(435,213	)	$	223,320	$	560,342	$	(478,169	)	$	82,173

Amortization expense was $8 million and $6 million for the three months ended June 30, 2015 and 2014, respectively and $16 million and $12 million, for the six months ended June 30, 2015 and 2014, respectively.

In 2015, we acquired certain intangible assets in connection with the acquisitions of Borderfree (see Note 3). The change in supplier relationships is the result of the sale of Imagitas.

Future amortization expense for intangible assets as of June 30, 2015 was as follows:



Remaining for year ending December 31, 2015	$	22,328
Year ending December 31, 2016	39,995
Year ending December 31, 2017	29,077
Year ending December 31, 2018	26,470
Year ending December 31, 2019	23,415
Thereafter	82,035
Total	$	223,320

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

The changes in the carrying value of goodwill for the six months ended June 30, 2015 were as follows:



	December 31, 2014		Acquisition		Divestiture			Foreign currency translation			June 30, 2015
North America Mailing	$	309,448	$	—	$	—		$	(9,949	)	$	299,499
International Mailing	162,146		—		—			(8,662		)	153,484
Small & Medium Business Solutions	471,594		—		—			(18,611		)	452,983
Production Mail	110,837		—		—			(2,786		)	108,051
Presort Services	195,140		—		—			—			195,140
Enterprise Business Solutions	305,977		—		—			(2,786		)	303,191
Software Solutions	677,008		5,792		—			(661		)	682,139
Global Ecommerce	23,910		285,727		—			—			309,637
Digital Commerce Solutions	700,918		291,519		—			(661		)	991,776
Other	194,232		—		(194,232		)	—			—
Total goodwill	$	1,672,721	$	291,519	$	(194,232	)	$	(22,058	)	$	1,747,950

- 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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