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GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2022
Business Combinations [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table indicates the allocation of goodwill (in millions):
| U.S. Domestic Package |  | International Package |  | Supply Chain Solutions |  | Consolidated
Balance as of January 1, 2021 | $ | 715 |  |  | $ | 422 |  |  | $ | 2,230 |  |  | $ | 3,367 |
Acquired | 132 |  |  | — |  |  | 243 |  |  | 375 |
Currency / Other | — |  |  | (19) |  |  | (31) |  |  | (50) |
Balance as of December 31, 2021 | $ | 847 |  |  | $ | 403 |  |  | $ | 2,442 |  |  | $ | 3,692 |
Acquired | — |  |  | 105 |  |  | 491 |  |  | 596 |
Currency / Other | — |  |  | (16) |  |  | (49) |  |  | (65) |
Balance as of December 31, 2022 | $ | 847 |  |  | $ | 492 |  |  | $ | 2,884 |  |  | $ | 4,223 |
2022 Goodwill Activity The goodwill acquired during 2022 primarily relates to our acquisitions of Delivery Solutions in May 2022 and Bomi Group in November 2022. Goodwill associated with Delivery Solutions is reported in Supply Chain Solutions. Goodwill associated with Bomi Group is reported in International Package and Supply Chain Solutions. The purchase price allocation for acquired businesses may be modified for up to one year from the date of acquisition if additional facts or circumstances lead to changes in our preliminary purchase accounting estimates. See note 8 for further discussion of business acquisitions. The remaining change in goodwill for both Supply Chain Solutions and International Package was attributable to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. 2021 Goodwill Activity The goodwill acquired in U.S. Domestic Package and Supply Chain Solutions relates to our October 2021 acquisition of Roadie. See note 8 for further discussion of business acquisitions. The remaining change in goodwill for both Supply Chain Solutions and International Package was attributable to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. Goodwill Impairment We complete our annual goodwill impairment evaluation as of July 1st on a reporting unit basis. Our annual impairment testing indicated that the fair value of goodwill associated with our Roadie reporting unit remained greater than its carrying value as of our July 1st testing date, although this excess was less than 10 percent. The goodwill associated with our Roadie reporting unit as of December 31, 2022 was $241 million. We did not identify any triggering events for the periods presented that required an interim impairment test. We did not record any goodwill impairment charges for the years ended December 31, 2022 and 2021. During 2020, we recorded a goodwill impairment charge of $494 million in connection with designating our UPS Freight business as held for sale. Cumulatively, we have recorded $1.1 billion of goodwill impairment charges in Supply Chain Solutions, while our International and U.S. Domestic Package segments have not recorded any goodwill impairment charges. Intangible Assets The following is a summary of intangible assets as of December 31, 2022 and 2021 (in millions):
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value |  | Weighted-Average Amortization Period (in years)
December 31, 2022 |  |  |  |  |  |  |
Capitalized software | $ | 5,186 |  |  | $ | (3,500) |  |  | $ | 1,686 |  |  | 6.9
Licenses | 55 |  |  | (30) |  |  | 25 |  |  | 3.3
Franchise rights | 226 |  |  | (37) |  |  | 189 |  |  | 20.0
Customer relationships | 872 |  |  | (453) |  |  | 419 |  |  | 10.2
Trade name | 125 |  |  | (8) |  |  | 117 |  |  | 7.2
Trademarks, patents and other | 183 |  |  | (27) |  |  | 156 |  |  | 8.0
Amortizable intangible assets | $ | 6,647 |  |  | $ | (4,055) |  |  | $ | 2,592 |  |  | 7.8
Indefinite-lived intangible assets | 204 |  |  | — |  |  | 204 |  |  |
Total Intangible Assets | $ | 6,851 |  |  | $ | (4,055) |  |  | $ | 2,796 |  |  |
December 31, 2021 |  |  |  |  |  |  |
Capitalized software | $ | 4,910 |  |  | $ | (3,275) |  |  | $ | 1,635 |  |  |
Licenses | 58 |  |  | (27) |  |  | 31 |  |  |
Franchise rights | 119 |  |  | (37) |  |  | 82 |  |  |
Customer relationships | 733 |  |  | (408) |  |  | 325 |  |  |
Trade name | 67 |  |  | (1) |  |  | 66 |  |  |
Trademarks, patents and other | 158 |  |  | (15) |  |  | 143 |  |  |
Amortizable intangible assets | $ | 6,045 |  |  | $ | (3,763) |  |  | $ | 2,282 |  |  |
Indefinite-lived intangible assets | 204 |  |  | — |  |  | 204 |  |  |
Total Intangible Assets | $ | 6,249 |  |  | $ | (3,763) |  |  | $ | 2,486 |  |  |
A trade name and licenses with carrying values of $200 and $4 million, respectively, as of December 31, 2022 are deemed to be indefinite-lived intangible assets, and therefore are not amortized. Impairment tests for indefinite-lived intangible assets are performed annually. There were no events or changes in circumstances that would indicate the carrying amount of our indefinite-lived intangible assets may have been impaired as of December 31, 2022. All of our other recorded intangible assets are deemed to be finite-lived intangibles, and are amortized over their estimated useful lives. Impairment tests for these intangible assets are only performed when a triggering event occurs that may indicate that the carrying value of the intangible may not be recoverable. Impairments of finite-lived intangible assets were $17, $19 and $13 million in 2022, 2021, and 2020, respectively. Amortization of intangible assets was $525, $475 and $416 million in each of 2022, 2021 and 2020, respectively. Expected amortization of finite-lived intangible assets recorded as of December 31, 2022 for the next five years is as follows (in millions): 2023—$595; 2024—$512; 2025—$432; 2026—$334; 2027—$257. Amortization expense in future periods will be affected by business acquisitions and divestitures, software development, licensing agreements, purchases of development areas or similar franchise rights and other factors.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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