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Acquisitions, Divestitures, Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Acquisition, Divestiture, Intangible Assets and Goodwill Acquisitions, Divestitures, Intangible Assets and Goodwill
Acquisitions/Divestitures
Effective July 1, 2022, we sold Borderfree for proceeds of $95 million, net of cash transferred, and recognized a pre-tax gain of $5 million, which included a goodwill allocation of $56 million attributable to Borderfree and write-off of intangible assets of $34 million. During 2022, we also received additional proceeds of $7 million related to the 2021 sale of a business and recognized a pre-tax gain of $4 million, and spent $5 million on acquisitions for our Presort Services segment.
During 2021, we sold a U.K. based software consultancy business ("Tacit") acquired as part of our 2017 acquisition of Newgistics. We received net proceeds of $28 million and recognized a pre-tax gain of $10 million (after-tax gain of $4 million), which included a goodwill allocation of $16 million attributable to Tacit. Additionally, we acquired CrescoData for $15 million in cash plus potential additional payments of up to $7 million based on the achievement of revenue targets during 2022-2024. CrescoData is a Singapore based, Platform-as-a-Service business that enables mapping and automating of product, stock and order data between platforms and is included in our SendTech Solutions segment.

Intangible Assets
Intangible assets consisted of the following:
December 31, 2022December 31, 2021
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Customer relationships$155,715 $(80,188)$75,527 $268,187 $(141,492)$126,695 
Software & technology22,000 (19,583)2,417 21,981 (16,234)5,747 
Total intangible assets, net$177,715 $(99,771)$77,944 $290,168 $(157,726)$132,442 

Amortization expense was $24 million, $30 million and $33 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Future amortization expense for intangible assets at December 31, 2022 is as follows:
2023$15,724 
202415,724 
202515,520 
202614,530 
202711,475 
Thereafter4,971 
Total$77,944 
Actual amortization expense may differ from the amounts above due to, among other things, fluctuations in foreign currency exchange rates, acquisitions, divestitures and impairment charges.
Goodwill
During 2022, we determined that the agreement to sell Borderfree was a triggering event and an impairment test was performed as of July 1, 2022. Further, we determined that the shortfall in fourth quarter performance of the Global Ecommerce reporting unit was an additional triggering event. Accordingly, we performed another goodwill impairment test as of December 31, 2022 to assess whether the goodwill of the Global Ecommerce reporting unit was impaired. We engaged a third-party to assist in the determination of the reporting unit fair value. 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 and operating income, and discount rate.
The results of our annual test and triggering event tests indicated that the fair value of the Global Ecommerce reporting unit exceeded its carrying value and no impairment existed. However, the estimated fair value of the reporting unit at December 31, 2022 exceeded its carrying value by less than 10%. Further, the judgements and assumptions used to estimate the fair value of the reporting unit are inherently subjective and changes in any of these judgements or assumptions used to determine the fair value of this reporting unit at December 31, 2022 could result in a different fair value determination in a future period. The carrying value of goodwill for the Global Ecommerce reporting unit at December 31, 2022 was $339 million.
Events and circumstances that could change our original judgements and assumptions and materially impact the fair value determination of the Global Ecommerce reporting unit, include, but are not limited to, continued financial and operating performance below expectations, reduced consumer spending due to inflationary pressures and rising prices, a continued and prolonged slow-down in economic activity, increased competition and pricing pressures, changing consumer behaviors, our ability to increase volumes, gain economies of scale and improve margins, and rising interest rates.


Changes in the carrying amount of goodwill by reporting segment are shown in the tables below.
Goodwill before accumulated impairmentAccumulated impairmentDecember 31, 2021Acquisitions/(dispositions)FX ImpactDecember 31, 2022
Global Ecommerce$593,231 $(198,169)$395,062 $(55,878)$— $339,184 
Presort Services220,992 — 220,992 2,771 — 223,763 
SendTech Solutions519,049 — 519,049 — (15,045)504,004 
Total goodwill$1,333,272 $(198,169)$1,135,103 $(53,107)$(15,045)$1,066,951 
Goodwill before accumulated impairmentAccumulated impairmentDecember 31, 2020Acquisitions/(dispositions)FX ImpactDecember 31, 2021
Global Ecommerce$609,431 $(198,169)$411,262 $(16,200)$— $395,062 
Presort Services220,992 — 220,992 — — 220,992 
SendTech Solutions520,031 — 520,031 13,804 (14,786)519,049 
Total goodwill$1,350,454 $(198,169)$1,152,285 $(2,396)$(14,786)$1,135,103