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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Contributions are also made to defined contribution money purchase plans under certain collective
bargaining agreements. Amounts charged to expense were $72, $62, and $55 million for 2007, 2006, and 2005,
respectively.
NOTE 6. GOODWILL AND INTANGIBLE ASSETS
The following table indicates the allocation of goodwill by reportable segment (in millions):
U.S. Domestic
Package
International
Package
Supply Chain &
Freight Consolidated
December 31, 2005 balance ...................... $— $290 $2,259 $2,549
Acquired ................................. — 28 4 32
Purchase Accounting Adjustments ............ — (39) (60) (99)
Currency / Other .......................... — 11 40 51
December 31, 2006 balance ...................... — $290 $2,243 $2,533
Acquired ................................. — — 2 2
Purchase Accounting Adjustments ............ — — — —
Currency / Other .......................... — 5 37 42
December 31, 2007 balance ...................... $— $295 $2,282 $2,577
The goodwill acquired in the International Package segment during 2006 resulted primarily from the
purchase of the express operations of Sinotrans Air Transportation Development Co. Ltd. in China, offset by
adjustments to the purchase price allocation of Lynx Express Delivery Ltd. The decrease in goodwill for the
Supply Chain & Freight segment during 2006 resulted primarily from finalizing the purchase price allocation of
Overnite Corp. The currency / other balance includes the translation effect on goodwill from fluctuations in
currency exchange rates, as well as escrow reimbursements from acquisitions completed previously. See Note 7
for further discussion of these business acquisition transactions.
The following is a summary of intangible assets at December 31, 2007 and 2006 (in millions):
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Value
Weighted-Average
Amortization
Period (in years)
December 31, 2007:
Trademarks, licenses, patents, and other ..... $ 75 $ (54) $ 21 4.2
Customer lists ......................... 162 (40) 122 10.5
Franchise rights ........................ 110 (35) 75 20.0
Capitalized software .................... 1,663 (1,253) 410 3.2
Total Intangible Assets, Net .............. $2,010 $(1,382) $628 4.7
December 31, 2006:
Trademarks, licenses, patents, and other ..... $ 80 $ (37) $ 43
Customer lists ......................... 159 (24) 135
Franchise rights ........................ 108 (29) 79
Capitalized software .................... 1,576 (1,145) 431
Total Intangible Assets, Net .............. $1,923 $(1,235) $688
F-22