eTrade 2012 Annual Report Download - page 151

years. Amortization for the capitalized amounts was $57.5 million, $54.2 million and $48.3 million for the years
ended December 31, 2012, 2011 and 2010, respectively. Software at December 31, 2012 and 2011 also included
$21.9 million and $48.1 million, respectively, of internally developed software in the process of development for
which amortization has not begun.
NOTE 8—GOODWILL AND OTHER INTANGIBLES, NET
Goodwill
The activity in the carrying value of the Company’s goodwill, which is all assigned to the trading and
investing segment, is outlined in the following table for the periods presented (dollars in thousands):
Trading & Investing
Goodwill
Balance at December 31, 2010 $1,939,976
Write off of goodwill related to exit activities (5,744)
Balance at December 31, 2011 1,934,232
Activity —
Balance at December 31, 2012 $1,934,232
No goodwill was assigned to reporting units within the balance sheet management segment for the years
ended December 31, 2012 and 2011. As of December 31, 2012, there were no accumulated impairment losses
related to the trading and investment segment. The Company’s accumulated impairment losses related to its
goodwill, which all occurred in the balance sheet management segment, from January 1, 2002 through
December 31, 2012 were $101.2 million, which reduced the goodwill balance to zero during the year ended
December 31, 2007.
Other Intangibles, Net
Other intangible assets with finite lives, which are primarily amortized on an accelerated basis, consisted of
customer lists at December 31, 2012 and 2011. The following table outlines the original and remaining weighted
average useful lives and the gross amount, accumulated amortization and net amount of customer lists at
December 31, 2012 and 2011 (dollars in thousands):
Customer Lists
Weighted Average
Original
Useful Life
(Years)
Weighted Average
Remaining
Useful Life
(Years) Gross Amount
Accumulated
Amortization Net Amount
December 31, 2012 21 13 $496,624 $(236,002) $260,622
December 31, 2011 21 14 $496,624 $(210,819) $285,805
Assuming no future impairments of customer lists or additional acquisitions or dispositions, annual
amortization expense will be as follows (dollars in thousands):
Years ending December 31,
2013 $ 24,269
2014 23,244
2015 21,764
2016 21,109
2017 20,489
Thereafter 149,747
Total future amortization expense $260,622
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