Expedia 2011 Annual Report Download - page 97

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NOTE 7 — Goodwill and Intangible Assets, Net
The following table presents our goodwill and intangible assets as of December 31, 2011 and 2010:
December 31,
2011 2010
(In thousands)
Goodwill $2,877,301 $2,864,664
Intangible assets with indefinite lives 657,776 658,536
Intangible assets with definite lives, net 86,122 89,077
$3,621,199 $3,612,277
Impairment Assessments. We perform our annual assessment of possible impairment of goodwill and
indefinite-lived intangible assets as of October 1, or more frequently if events and circumstances indicate that
impairment may have occurred. As of October 1, 2011 and 2010, we had no impairments. Subsequent to the
spin-off, we performed an interim assessment of goodwill and indefinite-lived intangible assets as of
December 20, 2011 and noted no subsequent impairments.
Goodwill. The following table presents the changes in goodwill by reportable segment:
Leisure Egencia Total
(In thousands)
Balance as of January 1, 2010 $2,823,309 $45,430 2,868,739
Additions 14,592 494 15,086
Foreign exchange translation (15,751) (3,410) (19,161)
Balance as of December 31, 2010 2,822,150 42,514 2,864,664
Additions — 22,522 22,522
Foreign exchange translation (7,664) (2,221) (9,885)
Balance as of December 31, 2011 $2,814,486 $62,815 $2,877,301
In 2011 and 2010, the additions to goodwill relate primarily to our acquisitions as described in Note 3 —
Acquisitions and Other Investments.
As of December 31, 2011 and 2010, accumulated goodwill impairment losses in total were $2.5 billion,
which is associated with Leisure.
Indefinite-lived Intangible Assets. Our indefinite-lived intangible assets relate principally to trade names and
trademarks acquired in various acquisitions.
Intangible Assets with Definite Lives. The following table presents the components of our intangible assets
with definite lives as of December 31, 2011 and 2010:
December 31, 2011 December 31, 2010
Cost
Accumulated
Amortization Net Cost
Accumulated
Amortization Net
(In thousands)
Supplier relationships $267,557 $(234,363) $33,194 $269,522 $(228,630) $40,892
Technology 203,860 (178,712) 25,148 194,284 (172,867) 21,417
Affiliate agreements 34,782 (29,761) 5,021 34,782 (26,079) 8,703
Customer lists 30,364 (18,899) 11,465 22,886 (18,745) 4,141
Domain names 12,137 (11,606) 531 12,125 (11,092) 1,033
Other 248,847 (238,084) 10,763 247,021 (234,130) 12,891
Total $797,547 $(711,425) $86,122 $780,620 $(691,543) $89,077
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