eBay 2007 Annual Report Download - page 101

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Intangible Assets
The components of acquired identifiable intangible assets are as follows (in thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average Useful
Economic Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average Useful
Economic Life
December 31, 2006 December 31, 2007
(years) (years)
Intangible assets:
Customer lists and user
base............ $ 545,527 $(240,340) $305,187 6 $ 588,714 $(334,864) $253,850 6
Trademarks and trade
names .......... 480,358 (171,390) 308,968 5 572,918 (292,854) 280,064 5
Developed
technologies . . . . . . 103,351 (63,912) 39,439 4 125,504 (85,441) 40,063 4
Allother............ 58,115 (26,232) 31,883 4 62,052 (38,546) 23,506 4
$1,187,351 $(501,874) $685,477 $1,349,188 $(751,705) $597,483
All of our acquired identifiable intangible assets are subject to amortization. Acquired identifiable 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 significant residual value is estimated
for the intangible assets. The increase in intangible assets during the year ended December 31, 2007 resulted
primarily from certain intangible assets acquired as part of our acquisition of the outstanding shares of StubHub as
well as other acquisitions completed during the year. The net carrying amount of intangible assets related to our
equity investments, included above, totaled approximately $2.5 million and $1.4 million, as of December 31, 2006
and 2007, respectively. Aggregate amortization expense for intangible assets totaled $136.4 million, $220.0 million
and $229.2 million for the years ended December 31, 2005, 2006 and 2007, respectively. Included in amortization
of intangibles for the year ended December 31, 2006, is a charge of $10.9 million for in-process research and
development related to an asset purchase completed during the period.
Expected future intangible asset amortization from acquisitions completed as of December 31, 2007 is as
follows (in thousands):
Fiscal Years:
2008 ............................................................. $233,146
2009 ............................................................. 211,653
2010 ............................................................. 117,315
2011 ............................................................. 25,530
2012 ............................................................. 9,756
Thereafter .......................................................... 83
$597,483
Note 4 — Segments:
Operating 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 (CODM) to evaluate segment performance and
the availability of separate financial information. We have three operating segments: Marketplaces, Payments and
Communications.
91
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)