Condensed Consolidated Financial Statement Details

6 Months Ended

Jun. 30, 2019

Condensed Consolidated Financial Statement Details [Abstract]

Condensed Consolidated Financial Statement Details

The following table shows the Company’s Condensed Consolidated Financial Statement (Unaudited) details as of June 30, 2019 and December 31, 2018 (in millions):



	June 30, 2019						December 31, 2018
	Cost		Accumulated depreciation and amortization		Net		Cost		Accumulated depreciation and amortization		Net
Property and equipment	$	1,784	$	1,243	$	541	$	1,645	$	1,058	$	587
Intangible assets	$	6,157	$	3,294	$	2,863	$	6,122	$	2,990	$	3,132
Computer software	$	3,230	$	1,432	$	1,798	$	3,103	$	1,308	$	1,795

The Company entered into other financing obligations of $1 million and $0 million during the three months and $35 million and $0 million during the six months ended June 30, 2019 and 2018, respectively, for certain computer hardware and software. The assets are included in property and equipment and computer software and the other financing obligations are classified as long-term debt on our Condensed Consolidated Balance Sheets (Unaudited). Periodic payments are included in repayment of borrowings and other financing obligations on the Condensed Consolidated Statements of Cash Flows (Unaudited).

Changes in goodwill during the six months ended June 30, 2019 are summarized as follows (in millions):




	Total
Balance, December 31, 2018	$	13,545
Foreign currency adjustments	(3		)
Balance, June 30, 2019	$	13,542

As of June 30, 2019, intangible assets, net of amortization, includes $2,779 million of customer relationships and other amortizable intangible assets, $41 million of finite-lived trademarks, as well as $43 million of non-amortizable indefinite-lived trademarks. Amortization expense with respect to these intangible assets was $158 million and $169 million for the three months and $314 million and $336 million during the six months ended June 30, 2019 and 2018, respectively.

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).