eTrade 2011 Annual Report Download - page 140
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Depreciation and amortization expense related to property and equipment was $89.6 million, $87.9 million
and $83.3 million for the years ended December 31, 2011, 2010 and 2009, respectively.
Software includes capitalized internally developed software costs. These costs were $54.8 million, $54.6
million and $59.2 million for the years ended December 31, 2011, 2010 and 2009, respectively. Completed
projects are carried at cost and are amortized on a straight-line basis over their estimated useful lives of four
years. Amortization for the capitalized amounts was $54.2 million, $48.3 million and $39.6 million for the years
ended December 31, 2011, 2010 and 2009, respectively. Also included in software at December 31, 2011 is
$48.1 million of internally developed software in the process of development for which amortization has not
begun.
NOTE 9—GOODWILL AND OTHER INTANGIBLES, NET
The following table discloses the changes in the carrying value of the Company’s goodwill, which is all
assigned to the trading and investing segment for the periods presented (dollars in thousands):
Trading & Investing
Goodwill
Balance at December 31, 2009 $1,952,326
Purchase price legal settlement and other (12,350)
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
No goodwill was assigned to reporting units within the balance sheet management segment for the years
ended December 31, 2011 and 2010. As of December 31, 2011, 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, 2011 were $101.2 million, which reduced the goodwill balance to zero during the year ended
December 31, 2007.
Other intangible assets with finite lives, which are primarily amortized on an accelerated basis, consist of
the following (dollars in thousands):
December 31, 2011
Weighted Average
Original
Useful Life
(Years)
Weighted Average
Remaining
Useful Life
(Years) Gross Amount
Accumulated
Amortization Net Amount
Customer lists 21 14 $496,624 $(210,819) $285,805
December 31, 2010
Weighted Average
Original Useful
Life (Years)
Weighted Average
Remaining Useful
Life (Years) Gross Amount
Accumulated
Amortization Net Amount
Customer lists 21 15 $514,624 $(190,214) $324,410
Other 19 17 1,450 (457) 993
Total other intangible assets $516,074 $(190,671) $325,403
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