XML 27 R14.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended
--- | ---
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The following table indicates the allocation of goodwill as of June 30, 2024 and December 31, 2023 (in millions):
| U.S. Domestic Package |  | International Package |  | Supply Chain Solutions |  | Consolidated
December 31, 2023: | $ | 847 |  |  | $ | 503 |  |  | $ | 3,522 |  |  | $ | 4,872 |
Acquired | — |  |  | — |  |  | 21 |  |  | 21 |
Currency / Other | — |  |  | (11) |  |  | (532) |  |  | (543) |
June 30, 2024: | $ | 847 |  |  | $ | 492 |  |  | $ | 3,011 |  |  | $ | 4,350 |
During the six months ended June 30, 2024: •Within Supply Chain Solutions, we reclassified $494 million of goodwill as held for sale in connection with the pending divestiture of our truckload brokerage business, Coyote, as discussed in note 18. Prior to reclassification, we performed an impairment test for our Coyote reporting unit. This analysis did not indicate impairment. •We recorded an increase in goodwill of $15 million as part of purchase accounting allocations for our November 2023 acquisitions of MNX Global Logistics and Happy Returns. Certain areas of purchase accounting, including our estimates of tax positions, remain preliminary as of June 30, 2024. In addition, we recorded $6 million of goodwill related to the acquisition of certain locations of The UPS Store. •The remaining movements are due to the impact of changes in the value of the U.S. Dollar on the translation of non-U.S. Dollar goodwill balances. We complete our annual goodwill impairment evaluation as of July 1 on a reporting unit basis. As of June 30, 2024, none of our reporting units had indications that an impairment was more likely than not. Approximately $1.1 billion of our consolidated goodwill balance of $4.4 billion is represented by our Global Freight Forwarding and Roadie reporting units which, based on our quarterly monitoring, are exhibiting a limited excess of fair value above carrying value and reflect a greater risk of an impairment occurring in future periods. We do not expect any impairment would have a significant impact on our consolidated financial position, results of operations or cash flows. For each of our reporting units, we continue to monitor the impact of macroeconomic conditions and business performance on our estimates of fair value. Actual reporting unit performance, revisions to our forecasts of future performance, market factors, changes in estimates or assumptions in connection with our annual testing, or a combination thereof could result in an impairment charge in one or more of our reporting units during a future period. We continue to monitor business performance and external factors affecting our reporting units. The following is a summary of intangible assets as of June 30, 2024 and December 31, 2023 (in millions):
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
June 30, 2024: |  |  |  |  |
Capitalized software | $ | 5,954 |  |  | $ | (4,061) |  |  | $ | 1,893 |
Licenses | 45 |  |  | (19) |  |  | 26 |
Franchise rights | 348 |  |  | (51) |  |  | 297 |
Customer relationships | 684 |  |  | (186) |  |  | 498 |
Trade name | 112 |  |  | (23) |  |  | 89 |
Trademarks, patents and other | 376 |  |  | (77) |  |  | 299 |
Amortizable intangible assets | $ | 7,519 |  |  | $ | (4,417) |  |  | $ | 3,102 |
Indefinite-lived intangible assets | 4 |  |  | — |  |  | 4 |
Total Intangible Assets, Net | $ | 7,523 |  |  | $ | (4,417) |  |  | $ | 3,106 |
December 31, 2023: |  |  |  |  |
Capitalized software | $ | 5,839 |  |  | $ | (3,900) |  |  | $ | 1,939 |
Licenses | 30 |  |  | (7) |  |  | 23 |
Franchise rights | 291 |  |  | (49) |  |  | 242 |
Customer relationships | 1,115 |  |  | (516) |  |  | 599 |
Trade name | 172 |  |  | (30) |  |  | 142 |
Trademarks, patents and other | 320 |  |  | (53) |  |  | 267 |
Amortizable intangible assets | $ | 7,767 |  |  | $ | (4,555) |  |  | $ | 3,212 |
Indefinite-lived intangible assets | 93 |  |  | — |  |  | 93 |
Total Intangible Assets, Net | $ | 7,860 |  |  | $ | (4,555) |  |  | $ | 3,305 |
The table above excludes intangible assets associated with our Coyote business that were classified as held for sale as of June 30, 2024. These assets include an indefinite-lived trade name with a carrying value of $89 million and finite-lived intangibles with a carrying value of $104 million. Prior to reclassification, we tested the indefinite-lived trade name for impairment. This analysis did not indicate impairment. For the three months ended June 30, 2024, there were no impairment charges for finite-lived intangible assets. For the six months ended June 30, 2024, we recorded impairment charges of $48 million ($35 million after tax, or $0.04 per diluted share) within Other Expenses in our statement of consolidated income. These charges represented capitalized software license impairments of $7 million and a $41 million charge to write down the value of certain trade names acquired as part of our acquisition of Bomi Group. There were no impairment charges for finite-lived intangible assets for the three or six months ended June 30, 2023.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration