eTrade 2009 Annual Report Download - page 141

For the years ended December 31, 2009 and 2008, the increases in the carrying value of goodwill are the
result of the Company paying additional purchase consideration in connection with prior acquisitions. For the
year ended December 31, 2008, the increase was offset by write-offs of goodwill related to certain exit activities
and discontinued operations (see Note 2—Discontinued Operations and Note 3—Facility Restructuring and
Other Exit Activities for further discussion).
During the year ended December 31, 2007, the Company’s balance sheet management segment had a
decline in fair value related to the crisis in the residential real-estate and credit markets. As a result, the entire
carrying value of the segment’s goodwill of $101.2 million was impaired for the year ended December 31, 2007.
There was no goodwill assigned to reporting units within the balance sheet management segment for the years
ended December 31, 2009 and 2008.
The following table shows the Company’s accumulated impairment losses related to its goodwill from
January 1, 2002 through December 31, 2009 (dollars in thousands):
Goodwill $2,053,534
Accumulated impairment losses (101,208)
Balance at December 31, 2009 $1,952,326
Other intangible assets with finite lives, which are primarily amortized on an accelerated basis, consist of
the following (dollars in thousands):
December 31, 2009
Weighted
Average
Original
Useful Life
(Years)
Weighted
Average
Remaining
Useful Life
(Years)
Gross
Amount
Accumulated
Amortization
Net
Amount
Customer list 21 16 $501,820 $(152,398) $349,422
Active accounts 10 5 17,004 (11,079) 5,925
Other 18 17 1,400 (343) 1,057
Total other intangible assets(1) $520,224 $ (163,820) $356,404
December 31, 2008
Weighted
Average
Original
Useful Life
(Years)
Weighted
Average
Remaining
Useful Life
(Years)
Gross
Amount
Accumulated
Amortization
Net
Amount
Customer list 21 17 $501,820 $ (124,469) $377,351
Active accounts 10 6 17,004 (9,383) 7,621
Other 18 18 1,400 (242) 1,158
Total other intangible assets(1) $520,224 $ (134,094) $386,130
(1) Fully amortized other intangible assets not included in the table above.
138