Google 2008 Annual Report Download - page 102

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Google Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 8. Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the twelve months ended December 31, 2008 are as
follows (in thousands):
Balance as of December 31, 2007 .......................................................... $2,299,368
Goodwill acquired, net of divestiture ......................................................... 2,364,128
Goodwill adjustment ...................................................................... 176,358
Balance as of December 31, 2008 .......................................................... $4,839,854
The goodwill adjustment of $176.4 million was primarily a result of contingent payments earned upon the
achievement of certain performance targets.
Information regarding our acquisition-related intangible assets that are being amortized is as follows (in
thousands):
As of December 31, 2007
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Value
Patents and developed technology ................................. $ 364,937 $ 179,102 $ 185,835
Customer relationships ............................................ 171,876 37,738 134,138
Tradenames and other ............................................ 196,392 69,769 126,623
Total ....................................................... $ 733,205 $286,609 $446,596
As of December 31, 2008
Gross
Carrying
Amount Accumulated
Amortization
Net
Carrying
Value
Patents and developed technology ................................. $ 551,332 $ 297,428 $253,904
Customer relationships ............................................ 800,113 153,516 646,597
Tradenames and other ............................................ 209,492 113,303 96,189
Total ....................................................... $1,560,937 $ 564,247 $996,690
Patents and developed technology, customer relationships, and tradenames and other have weighted
average useful lives from the date of purchase of 4.0 years, 6.4 years and 4.9 years. Amortization expense of
acquisition-related intangible assets for the years ended December 31, 2006, 2007 and 2008 was $74.2 million,
$158.2 million and $279.7 million. Expected amortization expense for acquisition-related intangible assets on our
December 31, 2008 Consolidated Balance Sheet for each of the next five years and thereafter is as follows (in
thousands):
2009 ..................................................................................... $ 251,769
2010 ..................................................................................... 220,896
2011 ...................................................................................... 169,154
2012 ...................................................................................... 129,700
2013 ..................................................................................... 104,005
Thereafter ................................................................................. 121,166
$996,690
86