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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
80
Intangible Assets
The following is a summary of intangible assets at December 31, 2012 and 2011 (in millions):
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Value
Weighted-
Average
Amortization
Period
(in years)
December 31, 2012
Trademarks, licenses, patents, and other $ 163 $ (80) $ 83 5.5
Customer lists 131 (79) 52 11.5
Franchise rights 117 (64) 53 20.0
Capitalized software 2,197 (1,782) 415 3.1
Total Intangible Assets, Net $ 2,608 $ (2,005) $ 603 4.4
December 31, 2011
Trademarks, licenses, patents, and other $ 146 $ (54) $ 92
Customer lists 120 (66) 54
Franchise rights 109 (58) 51
Capitalized software 2,014 (1,626) 388
Total Intangible Assets, Net $ 2,389 $ (1,804) $ 585
Licenses with a carrying value of $5 million as of December 31, 2012 are deemed to be indefinite-lived intangibles, and
therefore are not amortized. Impairment tests for indefinite-lived intangibles are performed on an annual basis. All of our other
recorded intangible assets are deemed to be finite-lived intangibles, and are thus amortized over their estimated useful lives.
Impairment tests for these intangible assets are only performed when a triggering event occurs that indicates that the carrying
value of the intangible may not be recoverable. There were no impairments of any finite-lived or indefinite-lived intangible
assets in 2012, 2011 or 2010.
Amortization of intangible assets was $244, $228 and $224 million during 2012, 2011 or 2010, respectively. Expected
amortization of finite-lived intangible assets recorded as of December 31, 2012 for the next five years is as follows (in
millions): 2013—$252; 2014—$168; 2015—$94; 2016—$14; 2017—$13. Amortization expense in future periods will be
affected by business acquisitions, software development, licensing agreements, sponsorships and other factors.