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Table of Contents
AOL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
In connection with the annual impairment analysis performed during the fourth quarter of 2009, the results of the Step 1 process indicated that the fair
value of AOL exceeded its carrying value. As a result, the second step of the goodwill impairment test did not need to be performed, and therefore no
impairment charge was recorded for 2009.
Intangible Assets
The Company's intangible assets and related accumulated amortization at December 31, 2011 and 2010 consisted of the following (in millions):
December 31, 2011 December 31, 2010
Gross
Accumulated
Amortization (a) Net Gross
Accumulated
Amortization (a) Net
Acquired technology $ 833.1 $ (813.3) $ 19.8 $ 836.4 $ (783.4) $ 53.0
Customer relationships 239.3 (185.9) 53.4 184.1 (150.7) 33.4
Trade names 120.1 (63.2) 56.9 62.9 (53.9) 9.0
Other intangible assets 66.0 (60.9) 5.1 59.2 (55.0) 4.2
Total $ 1,258.5 $ (1,123.3) $ 135.2 $ 1,142.6 $ (1,043.0) $ 99.6
(a) Amortization of intangible assets is provided on a straight-line basis over their respective useful lives, which generally range from two to ten years. The
Company evaluates the useful lives of its finite-lived intangible assets each reporting period to determine whether events or circumstances warrant
revised estimates of useful lives.
The Company recorded amortization expense of $92.0 million, $145.3 million and $137.9 million for the years ended December 31, 2011, 2010 and
2009, respectively. Based on the amount of intangible assets as of December 31, 2011, the estimated amortization expense for each of the succeeding five
years ending December 31 is as follows (in millions):
2012 $ 35.5
2013 30.6
2014 24.5
2015 14.0
2016 6.1
Total $ 110.7
The amounts above may vary as acquisitions and dispositions occur in the future.
NOTE 4—BUSINESS ACQUISITIONS, DISPOSITIONS AND OTHER SIGNIFICANT TRANSACTIONS
The businesses acquired by the Company during the periods presented herein were all in their early stages of development. This fact, along with market
conditions at the time of acquisition, contributed to purchase prices that resulted in the allocation of a significant portion of such purchase prices to goodwill.
2012 Acquisition
On February 9, 2012, AOL entered into a share-purchase agreement with Mitsui & Co., Ltd. ("Mitsui") to purchase an additional 3% interest in a joint
venture between Mitsui and AOL for approximately $1.2 million. The joint venture, which operates a display advertising network business in Japan, was
formed in 2006. Prior to
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