Yahoo 2007 Annual Report Download - page 85

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Note 5 GOODWILL
The changes in the carrying amount of goodwill for the years ended December 31, 2006 and 2007 are as follows (in
thousands):
United States International Total
Balance as of January 1, 2006 ..................... $1,720,752 $1,174,805 $2,895,557
Acquisitions and other
(*)
......................... (61,873) 19,766 (42,107)
Foreign currency translation adjustments . . . .......... — 115,107 115,107
Balance as of December 31, 2006 ................ $1,658,879 $1,309,678 $2,968,557
Acquisitions and other ........................... 859,969 86,232 946,201
Foreign currency translation adjustments . . . .......... — 87,272 87,272
Balance as of December 31, 2007 ................ $2,518,848 $1,483,182 $4,002,030
(*)
Other includes certain purchase price adjustments that affect existing goodwill. In the year ended December 31, 2006, the Company
recorded an adjustment of approximately $95 million to goodwill relating to a reduction of deferred income tax assets valuation
allowances that were recorded at the time certain net operating loss carryforwards (“NOLs”) were acquired in previous business
combinations. As of December 31, 2006, these NOLs were deemed to be more likely than not to be realized and accordingly the
valuation allowances were reversed against the related goodwill that was recognized at the time of the acquisitions.
Note 6 INTANGIBLE ASSETS,NET
The following table summarizes the Company’s intangible assets, net (in thousands):
Gross Carrying
Amount
Accumulated
Amortization
(1)
Net
(2)
December 31, 2006
Customer, affiliate and advertiser related relationships . . . $291,239 $(194,640) $ 96,599
Developed technology and patents................. 433,340 (222,894) 210,446
Trademark, trade name and domain name ........... 185,674 (86,897) 98,777
Total intangible assets, net..................... $910,253 $(504,431) $405,822
Gross Carrying
Amount
Accumulated
Amortization
(1)
Net
(2)
December 31, 2007
Customer, affiliate and advertiser related relationships . . . $ 252,792 $(109,597) $143,195
Developed technology and patents................. 689,873 (305,832) 384,041
Trademark, trade name and domain name ........... 208,069 (123,808) 84,261
Total intangible assets, net..................... $1,150,734 $(539,237) $611,497
(1)
Foreign currency translation adjustments, reflecting movement in the currencies of the underlying entities, totaled approximately
$18 million as of December 31, 2006 and $26 million as of December 31, 2007.
(2)
As of December 31, 2006 and 2007, $266 million and $506 million, respectively, of the net intangibles balance were related to the
United States segment. As of December 31, 2006 and 2007, $140 million and $105 million, respectively, of the net intangibles balance
were related to the International segment.
83
Yahoo! Inc.
Notes to Consolidated Financial Statements — (Continued)