Expedia 2008 Annual Report Download - page 93

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The following table presents the changes in goodwill by reportable segment:
North America Europe Other(1) Total
(In thousands)
Balance as of January 1, 2007 .......... $4,740,698 $1,021,351 $ 99,243 $ 5,861,292
Additions ....................... 140,428 — 201 140,629
Deductions ...................... (9,402) — — (9,402)
Foreign exchange translation ......... — 7,778 6,041 13,819
Balance as of December 31, 2007 ....... $4,871,724 $1,029,129 $105,485 $ 6,006,338
Additions ....................... 134,267 181,777 12,405 328,449
Impairment charge ................ (1,982,000) (758,900) (21,200) (2,762,100)
Other deductions .................. (2,823) — — (2,823)
Foreign exchange translation ......... (3,765) (22,126) (5,404) (31,295)
Balance as of December 31, 2008 ....... $3,017,403 $ 429,880 $ 91,286 $ 3,538,569
(1) Other includes Asia Pacific and Egencia.
In 2008 and 2007, the additions to goodwill relate primarily to our acquisitions as described in Note 3 —
Acquisitions and Other Investments. In addition, basis adjustments resulting from the implementation of FIN 48
also contributed to the increase in 2007. The deductions from goodwill for both 2008 and 2007 primarily
relate to the impairments discussed above as well as the income tax benefit realized pursuant to the exercise of
stock options assumed in business acquisitions that were vested at the transaction date and are treated as a
reduction in purchase price when the deductions are realized.
The following table presents the components of our intangible assets with definite lives as of
December 31, 2008 and 2007:
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
December 31, 2008 December 31, 2007
(In thousands)
Supplier relationships ....... $280,484 $(220,612) $ 59,872 $212,514 $(206,464) $ 6,050
Technology ............... 221,166 (195,941) 25,225 203,028 (183,082) 19,946
Distribution agreements ...... 177,426 (177,155) 271 177,426 (154,091) 23,335
Affiliate agreements ........ 34,782 (18,381) 16,401 33,049 (14,899) 18,150
Customer lists ............. 26,540 (21,895) 4,645 26,549 (20,723) 5,826
Domain names ............ 11,678 (8,500) 3,178 10,940 (5,729) 5,211
Other ................... 81,659 (47,373) 34,286 61,809 (36,816) 24,993
Total .................. $833,735 $(689,857) $143,878 $725,315 $(621,804) $103,511
F-21
Expedia, Inc.
Notes to Consolidated Financial Statements — (Continued)