eBay 2011 Annual Report Download - page 109

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 5 – Goodwill and Intangible Assets
Goodwill
The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate
investments for the year ended December 31, 2011 :
A portion of goodwill acquired as part of the GSI acquisition and Magento acquisition (included in Corporate and Other) was allocated to
the Marketplaces and Payments segments based on synergies expected to be realized. The adjustments to goodwill during the year ended
December 31, 2011 were due primarily to foreign currency translation.
Investments accounted for under the equity method of accounting are classified on our consolidated balance sheet as long-term investments.
Such investment balances include any related goodwill. As of December 31, 2011 and 2010 , the goodwill related to our equity method
investments was approximately $27.4 million .
We conducted our annual impairment test of goodwill as of August 31, 2011 and determined that no adjustment to the carrying value of
goodwill for any reportable units was necessary. As of December 31, 2011 , we determined that no events or circumstances from August 31, 2011
through December 31, 2011 indicated that a further assessment was necessary.
Intangible Assets
The components of identifiable intangible assets are as follows:
Amortization expense for intangible assets was $337.2 million , $254.1 million and $337.5 million for the years ended December 31, 2011 ,
2010 and 2009 , respectively.
F-18
December 31,
2010
Goodwill
Acquired Allocations
Adjustments December 31,
2011
(In thousands)
Marketplaces
$
4,071,772
$
380,090
$
186,560
$
(101,632
)
$
4,536,790
Payments
2,148,752
310,457
57,200
(1,290
)
2,515,119
GSI
—
1,483,659
(176,500
)
(13,665
)
1,293,494
Corporate and other
—
114,238
(67,260
)
(33
)
46,945
Total Goodwill
$
6,220,524
$
2,288,444
$
—
$
(
116,620
)
$
8,392,348
December 31, 2011
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)
Intangible assets:
Customer lists and user
base
$
1,633,423
$
(786,623
)
$
846,800
5
$
831,806
$
(625,126
)
$
206,680
6
Trademarks and trade
names
729,907
(468,905
)
261,002
5
632,899
(381,456
)
251,443
5
Developed technologies
497,883
(249,228
)
248,655
3
231,312
(192,421
)
38,891
3
All other
181,755
(131,832
)
49,923
4
156,306
(112,609
)
43,697
4
$
3,042,968
$
(1,636,588
)
$
1,406,380
$
1,852,323
$
(1,311,612
)
$
540,711