eBay 2010 Annual Report Download - page 108

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Intangible Assets
The components of identifiable intangible assets are as follows:
December 31, 2009 December 31, 2010
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful
Life
(Years)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful
Life
(Years)
(In thousands, except years)
Customer lists and
user base ........ $ 819,653 $ (524,667) $294,986 6 $ 831,806 $ (625,126) $206,680 6
Trademarks and trade
names .......... 634,387 (300,046) 334,341 5 632,899 (381,456) 251,443 5
Developed
technologies ..... 225,614 (152,982) 72,632 3 231,312 (192,421) 38,891 3
All other .......... 149,315 (83,462) 65,853 4 156,306 (112,609) 43,697 4
$1,828,969 $(1,061,157) $767,812 $1,852,323 $(1,311,612) $540,711
Aggregate amortization expense for intangible assets totaled $281.6 million, $337.5 million and $254.1
million for the years ended December 31, 2008, 2009 and 2010, respectively.
Expected future intangible asset amortization as of December 31, 2010 is as follows (in thousands):
Fiscal Years:
2011 ........................................ $199,259
2012 ........................................ 160,387
2013 ........................................ 130,990
2014 ........................................ 39,808
2015 ........................................ 4,381
Thereafter .................................... 5,886
$540,711
Note 6 — 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 currently operate two segments:
Marketplaces and Payments. Historically, we also had a Communications segment that consisted of Skype
Technologies S.A. (“Skype”). On November 19, 2009, we completed the sale of Skype to an investor group. For
the year ended December 31, 2009, the financial performance of our Communications segment reflects Skype
operations from January 1, 2009 to November 19, 2009.
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