Home Shopping Network 2008 Annual Report Download - page 53

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HSN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
50
Cost Accumulated
Amortization Net
Weighted
Average
Amortization
Life (Years)
Other $ 5,666 $ (4,167) $ 1,499 10.0
At December 31, 2007, intangible assets with definite lives relate to the following (in thousands):
Cost Accumulated
Amortization Net
Weighted
Average
Amortization
Life (Years)
Distribution agreements $ 159,268 $ (159,268) $ - 4.1
Customer lists 36,773 (22,468) 14,305 4.7
Merchandise agreements 33,257 (33,257) - 4.7
Technology 28,007 (27,665) 342 3.9
Other 7,409 (5,242) 2,167 8.5
Total
$ 264,714
$ (247,900)
$ 16,814
Amortization of intangible assets with definite lives is computed on a straight-line basis and, based on
December 31, 2008 balances, such amortization for the next three years is estimated to be as follows (in thousands):
Years Ending December 31,
2009 562$
2010 562
2011
375
1,499$
The following tables present the balance of goodwill by reporting unit, including changes in the carrying
amount of goodwill, for the years ended December 31, 2008 and 2007 (in thousands):
Balance as of
January 1, 2008 Additions Deductions Impairment
Balance as of
December 31,
2008
HSN $ 2,390,197 $ 1,397 $ - $ (2,391,594) $ -
Cornerstone 494,192 - (1,586) (492,606) -
Total
$ 2,884,389
$ 1,397
$ (1,586)
$ (2,884,200)
$ -
Balance as of
January 1, 2007 Additions Deductions Impairment
Balance as of
December 31,
2007
HSN $ 2,390,330 $ - $ (133) $ - $ 2,390,197
Cornerstone 493,439 865 (112) - 494,192
Total
$ 2,883,769
$ 865
$ (245)
$ -
$ 2,884,389
Deductions principally relate to a reduction in acquired tax liabilities and the income tax benefit realized
pursuant to the exercise of stock options assumed in a business acquisition that were vested at the transaction date
and are treated as a reduction in goodwill when the income tax deductions are realized.
NOTE 4—PROPERTY AND EQUIPMENT