eBay 2004 Annual Report Download - page 109

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Intangible Assets
The components of acquired identiÑable intangible assets are as follows (in thousands):
December 31, 2003 December 31, 2004
Gross Net Weighted Gross Net Weighted
Carrying Accumulated Carrying Average Useful Carrying Accumulated Carrying Average Useful
Amount Amortization Amount Economic Life Amount Amortization Amount Economic Life
(Years) (Years)
Intangible assets:
Customer lists
and user baseÏÏ $223,158 $(42,093) $181,065 7 $300,929 $ (80,097) $220,832 7
Trademarks and
trade names ÏÏÏ 75,269 (13,992) 61,277 7 139,239 (30,811) 108,428 6
Developed
technologies ÏÏÏ 30,396 (16,147) 14,249 3 40,686 (28,488) 12,198 3
All otherÏÏÏÏÏÏÏÏ 19,605 (2,139) 17,466 5 33,895 (7,534) 26,361 4
$348,428 $(74,371) $274,057 $514,749 $(146,930) $367,819
All of our acquired identiÑable intangible assets are subject to amortization. Acquired identiÑable
intangible assets are comprised of customer lists and user base, trademarks and trade names, developed
technologies, and other acquired intangible assets including patents and contractual agreements. No signiÑ-
cant residual value is estimated for the intangible assets. The increase in intangible assets during the year
ended December 31, 2004 resulted primarily from an increase in our ownership in Internet Auction totaling
approximately $60.1 million, certain intangible assets acquired as part of our acquisition of the outstanding
shares of Marktplaats and mobile.de totaling approximately $38.5 million and $30.5 million, respectively, as
well as our acquisition of an equity investment, as noted in ""Note 5 Ì Investments'' of these consolidated
Ñnancial statements. As of December 31, 2004, the net carrying amount of intangible assets related to our
equity investment totaled approximately $4.9 million. Aggregate amortization expense for intangible assets
totaled $16.3 million, $53.2 million and $70.2 million for the years ended December 31, 2002, 2003 and 2004,
respectively.
As of December 31, 2004, expected future intangible asset amortization is as follows (in thousands):
Fiscal Years:
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 86,650
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 73,027
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 67,177
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 64,986
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 49,307
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 26,672
367,819
Note 4 Ì Segments:
Reporting segments are based upon our internal organization structure, the manner in which our
operations are managed, the criteria used by our chief operating decision-maker to evaluate segment
performance, the availability of separate Ñnancial information, and overall materiality considerations.
The U.S. Marketplace segment includes U.S. online marketplace trading platforms other than our PayPal
and Billpoint subsidiaries. The International Marketplace segment includes our international online marketplace
107