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98
9. INTANGIBLE ASSETS AND GOODWILL
The Company’s intangible assets consist of the following (in thousands):
December 31, 2010 December 31, 2009
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Amortization
Period
Weighted
Average
Useful
Life
Supply and distribution
agreements
$ 264,491
$ (76,823)
$ 187,668
$ 204,117
$ (60,587)
$ 143,530
10 - 13 years
12 years
Technology 23,549 (22,119) 1,430 24,185 (20,890) 3,295 3 years 3 years
Patents 1,638 (1,352) 286 1,489 (1,197) 292 15 years 15 years
Customer lists 20,338 (17,512) 2,826 17,235 (15,098) 2,137 2 years 2 years
Internet domain names 1,853 (126) 1,727 6,517 (2,633) 3,884 2 - 10 years 10 years
Trade names 53,099 (15,064) 38,035 26,855 (8,031) 18,824 5 – 20 years 12 years
Other
344
(286)
58
469
(351)
118
7 months –
15 years
1 year
Total intangible assets $ 365,312 $ (133,282) $ 232,030 $ 280,867 $ (108,787) $ 172,080
Intangible assets with determinable lives are amortized on a straight-line basis. Intangible assets amortization
expense is approximately $34.3 million, $24.7 million and $28.8 million for the years ended December 31, 2010, 2009 and
2008, respectively.
The annual estimated amortization expense for intangible assets for the next five years and thereafter is expected
to be as follows (in thousands):
2011 $31,775
2012 29,445
2013 28,173
2014 28,102
2015 25,386
Thereafter 89,149
$232,030
A substantial portion of the intangible assets relate to our Booking.com business. In addition, purchased
intangibles increased by $94.5 million as a result of the acquisition of TravelJigsaw Holdings Limited in May 2010
(refer to Note 13).
A rollforward of goodwill for the years ended December 31, 2010 and 2009 consists of the following (in
thousands):
2010 2009
Balance, beginning of year
$
350,630 $ 326,863
Acquisition 105,313 -
Additional purchase price under earn-outs 61,620 2,500
Adjustment to purchase price - 4,236
Currency translation adjustments (6,669) 17,031
Balance, end of year
$
510,894 $ 350,630