Yahoo 2006 Annual Report Download - page 89

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The intangible assets are all amortizable and have original estimated useful lives as follows:
• Customer, affiliate and advertiser related relationships — three to seven years;
• Developed technology and patents — two to five years; and
• Trademark, trade name and domain name — four to seven years.
The Company recognized amortization expense on intangible assets, including amortization expense of developed
technology and patents, of approximately $146 million, $173 million and $238 million for 2004, 2005, and 2006,
respectively, including $44 million, $64 million, and $113 million, respectively, included in cost of revenues. Based
on the current amount of intangibles subject to amortization, the estimated amortization expense for each of the
succeeding years is as follows: 2007: $196 million; 2008: $138 million; 2009: $36 million; 2010: $21 million; 2011:
$8 million and 2012: $7 million.
Note 7 CONSOLIDATED FINANCIAL STATEMENT DETAILS
Other income, net
Other income, net for 2004, 2005, and 2006 was as follows (in thousands):
2004 2005 2006
Years Ended December 31,
Interest and investment income ....................... $ 60,830 $ 125,122 $143,310
Investment gains (losses), net
(1)
....................... 415,125 967,327 (3,527)
Gains on divestiture of Yahoo! China
(2)
................. — 337,965 15,158
Other .......................................... 20,488 5,443 2,093
Total other income, net ........................... $496,443 $1,435,857 $157,034
(1)
See Note 14 — “Litigation Settlement” for additional information related to the investment gains in the years ended December 31,
2004 and 2005. An impairment loss of $28 million was also recorded on an available-for-sale equity investment in the year ended
December 31, 2005.
(2)
See Note 4 — “Investments in Equity Interests” for additional information related to the gains on the divestiture of Yahoo! China for
the years ended December 31, 2005 and 2006.
Investment gains (losses), net include realized investment gains, realized investment losses, and impairment
charges related to declines in values of publicly traded securities and securities of privately held companies judged
to be other than temporary.
Prepaid expenses and other current assets
As of December 31, Prepaid expenses and other current assets consisted of the following (in thousands):
2005 2006
Prepaid expenses ............................................. $ 70,706 $ 68,807
Deferred income taxes (Note 10) ................................. 56,085 129,968
Other ..................................................... 40,185 19,004
Total prepaid expenses and other current assets..................... $166,976 $217,779
79
Yahoo! Inc.
Notes to Consolidated Financial Statements — (Continued)