UPS 2015 Annual Report Download - page 104

Download and view the complete annual report

Please find page 104 of the 2015 UPS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
92
Intangible Assets
The following is a summary of intangible assets at December 31, 2015 and 2014 (in millions):
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Value
Weighted-
Average
Amortization
Period
(in years)
December 31, 2015
Capitalized software $ 2,739 $ (2,026) $ 713 5.0
Licenses 189 (116) 73 6.1
Franchise rights 125 (83) 42 20.0
Customer relationships 511 (35) 476 10.3
Trade name 200 — 200 NA
Trademarks, patents, and other 61 (16) 45 7.8
Total Intangible Assets, Net $ 3,825 $ (2,276) $ 1,549 5.1
December 31, 2014
Capitalized software $ 2,641 $ (1,997) $ 644
Licenses 217 (133)84
Franchise rights 117 (77)40
Customer relationships 123 (66)57
Trademarks, patents, and other 31 (9)22
Total Intangible Assets, Net $ 3,129 $ (2,282) $ 847
Trade name and licenses with a carrying value of $200 and $4 million, respectively as of December 31, 2015 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 2015 or 2014.
Amortization of intangible assets was $261, $195 and $185 million during 2015, 2014 and 2013, respectively. Expected
amortization of finite-lived intangible assets recorded as of December 31, 2015 for the next five years is as follows (in
millions): 2016—$332; 2017—$276; 2018—$218; 2019—$167; 2020—$112. Amortization expense in future periods will be
affected by business acquisitions, software development, licensing agreements, sponsorships and other factors.