Condensed Consolidated Financial Statement Details

The following table shows the Company’s Condensed Consolidated Financial Statement details as of September 30, 2017 and December 31, 2016 (in millions):



	September 30, 2017						December 31, 2016
	Cost		Accumulated depreciation and amortization		Net		Cost		Accumulated depreciation and amortization		Net
Property and equipment	$	1,620	$	1,044	$	576	$	1,522	$	896	$	626
Intangible assets	$	6,464	$	2,375	$	4,089	$	6,547	$	1,883	$	4,664
Computer software	$	2,788	$	1,082	$	1,706	$	2,358	$	750	$	1,608

The Company entered into capital lease obligations of $1 million and $16 million during the three months and $80 million and $18 million during the nine months ended September 30, 2017 and 2016, respectively. The assets are included in property and equipment and the remaining capital lease obligations are classified as long-term debt on our Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2017. Periodic payments are included in repayment of borrowings on the Condensed Consolidated Statements of Cash Flows (Unaudited).

Changes in goodwill during the nine months ended September 30, 2017 are summarized as follows (in millions):



	Total
Balance, December 31, 2016	$	14,178
Goodwill distributed through sale of assets	(487		)
Foreign currency adjustments	8
Balance, September 30, 2017	$	13,699

Foreign currency adjustments includes an immaterial prior period adjustment related to the allocation of goodwill to the appropriate foreign currency at the time of multi-currency entity acquisitions, with the related offset to accumulated other comprehensive earnings (loss).

As of September 30, 2017, intangible assets, net of amortization, includes $3,994 million of customer relationships and $47 million of finite-lived trademarks, as well as $48 million of non-amortizable assets consisting mainly of indefinite-lived trademarks. Amortization expense for the quarter to these intangible assets was $169 million.

Settlement Activity

We manage certain integrated electronic payment services and programs and wealth management processes for our clients that require us to hold and manage client cash balances used to fund their daily settlement activity. Settlement deposits represent funds we hold that were drawn from our clients to facilitate settlement activities. Settlement receivables represent amounts funded by us. Settlement payables consist of settlement deposits from clients, settlement payables to third parties, and outstanding checks related to our settlement activities for which the right of offset does not exist or we do not intend to exercise our right of offset. Our accounting policy for such outstanding checks is to include them in settlement payables on the Condensed Consolidated Balance Sheets (Unaudited) and operating cash flows on the Condensed Consolidated Statements of Cash Flows (Unaudited).