Priceline 2011 Annual Report Download - page 85

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84
9. INTANGIBLE ASSETS AND GOODWILL
The Company’s intangible assets consist of the following (in thousands):
Supply and
distribution
agreements
Technology
Patents
Customer lists
Internet domain names
Trade names
Other
Total intangible assets
December 31, 2011
Gross
Carrying
Amount
$ 260,288
22,982
1,638
19,923
5,215
52,272
345
$ 362,663
Accumulated
Amortization
$ (97,114)
(22,708)
(1,399)
(19,150)
(625)
(21,192)
(324)
$ (162,512)
Net
Carrying
Amount
$ 163,174
274
239
773
4,590
31,080
21
$ 200,151
December 31, 2010
Gross
Carrying
Amount
$ 264,491
23,549
1,638
20,338
1,853
53,099
344
$ 365,312
Accumulated
Amortization
$ (76,823)
(22,119)
(1,352)
(17,512)
(126)
(15,064)
(286)
$ (133,282)
Net
Carrying
Amount
$ 187,668
1,430
286
2,826
1,727
38,035
58
$ 232,030
Amortization
Period
10 - 13 years
3 years
15 years
2 years
2 - 20 years
5 — 20 years
3 — 10 years
Weighted
Average
Useful
Life
12 years
3 years
15 years
2 years
12 years
11 years
4 years
Intangible assets with determinable lives are amortized on a straight-line basis. Intangible assets amortization expense
is approximately $33.2 million, $34.3 million and $24.7 million for the years ended December 31, 2011, 2010 and 2009,
respectively.
The annual estimated amortization expense for intangible assets for the next five years and thereafter is expected to be
as follows (in thousands):
2012
2013
2014
2015
2016
Thereafter
$ 29,630
28,361
28,287
25,588
23,007
65,278
$ 200,151
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 (now known as rentalcars.com) in
May 2010 (refer to Note 13).
A rollforward of goodwill for the years ended December 31, 2011 and 2010 consists of the following (in thousands):
Balance, beginning of year
Acquisition
Additional purchase price under earn-outs
Currency translation adjustments
Balance, end of year
2011
$ 510,894
—
—
(6,110)
$ 504,784
2010
$ 350,630
105,313
61,620
(6,669)
$ 510,894