Other Intangible Assets and Liabilities

In July 2015, BNSF Logistics, LLC, a wholly-owned, third-party logistics company, made an immaterial acquisition of a company, resulting in the recognition of $12 million in goodwill. The acquisition valuation is in process and additional analysis of intangibles and other assets and liabilities may result in a change in the total amount of goodwill. At September 30, 2015 and December 31, 2014, the carrying value of goodwill was $14,831 million and $14,819 million, respectively.

Intangible assets and liabilities were as follows (in millions):



	As of September 30, 2015				As of December 31, 2014
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Intangible assets	$	659	$	182	$	2,031	$	1,519
Intangible liabilities	$	1,403	$	709	$	2,056	$	1,274

As of September 30, 2015, intangible assets primarily consisted of franchise and customer assets. At December 31, 2014, intangible assets also included internally developed software that became fully amortized in the first quarter of 2015. Intangible liabilities primarily consisted of customer and shortline contracts which were in an unfavorable position at the date of Merger.

Amortizable intangible assets and liabilities are amortized based on the estimated pattern in which the economic benefits are expected to be consumed or on a straight-line basis over their estimated economic lives.

Amortization of intangible assets and liabilities was as follows (in millions):



	Nine Months Ended September 30,
	2015		2014
Amortization of intangible assets	$	48	$	233
Amortization of intangible liabilities	$	88	$	134

Amortization of intangible assets and liabilities for the next five years is expected to approximate the following (in millions):



	Amortization of intangible assets		Amortization of intangible liabilities
Remainder of 2015	$	10	$	27
2016	$	39	$	101
2017	$	36	$	96
2018	$	33	$	90
2019	$	31	$	27