eTrade 2005 Annual Report Download - page 156

Table of Contents
Prior periods are not presented, as the Company did not allocate goodwill by its new reporting segments prior to 2005.
The additions to goodwill are the result of our acquisitions during 2005 including Harris
direct
, BrownCo, Kobren and Howard Capital.
Note 2 has complete descriptions of the transactions. The write-off of goodwill related to discontinued operations was due to the sale
of the Consumer Finance Corporation and the exit of E*TRADE Professional Securities, LLC. See Note 3 for a complete description of
these transactions.
Other intangible assets with finite lives, which are primarily amortized on an accelerated basis, consist of the following (dollars in
thousands):
Weighted-
Average
UsefulLife
(Years)
December31, 2005
December31, 2004
Gross
Amount
Accumulated
Amortization
Net
Amount
Gross
Amount
Accumulated
Amortization
Net
Amount
Customer list
21
$
456,953
$
(11,592
)
$
445,361
$
10,248
$
(5,189
)
$
5,059
Specialist books
28
61,820
(29,280
)
32,540
61,820
(8,522
)
53,298
Active accounts
8
69,023
(43,234
)
25,789
69,023
(36,121
)
32,902
Credit cards
15
32,604
(12,496
)
20,108
32,672
(4,981
)
27,691
Other
5
29,274
(20,964
)
8,310
46,859
(31,688
)
15,171
Total intangible
assets
$
649,674
$
(117,566
)
$
532,108
$
220,622
$
(86,501
)
$
134,121
Assuming no future impairments of these assets or additional acquisitions, annual amortization expense will be as follows (in
thousands):
Years ending December31,
2006
$
44,916
2007
42,458
2008
37,667
2009
32,776
2010
30,581
Thereafter
343,710
Total future amortization expense
$
532,108
Amortization of other intangibles was $43.8 million for 2005, $19.4 million for 2004 and $24.8 million for 2003.
NOTE 12—ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
The Company enters into derivative transactions to protect against the risk of market price or interest rate movements on the value of

2006. EDGAR Online, Inc.