eBay 2006 Annual Report Download - page 91

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protect online transactions, including the purchase of up to one million two-factor authentication tokens that we will
distribute to our customers.
We accounted for the acquisition as a taxable purchase transaction and, accordingly, the purchase price has
been allocated to the tangible and intangible assets acquired and liabilities assumed on the basis of their respective
estimated fair values on the acquisition date. The estimated useful economic lives of the identifiable intangible
assets acquired in the acquisition are five years for registered user base and existing technology and one year for the
trade names.
Tradera.com
On April 24, 2006, we acquired all of the outstanding equity securities of Tradera.com, an online auction-style
marketplace in Sweden, for a total purchase price of approximately $52.3 million, including approximately
$0.6 million in estimated acquisition-related expenses. We anticipate that this acquisition will allow us to expand
our online auction-style marketplace in Sweden. We accounted for the acquisition as a taxable purchase transaction,
and, accordingly, the purchase price has been allocated to the tangible and intangible assets acquired and liabilities
assumed on the basis of their respective estimated fair values on the acquisition date. The estimated useful economic
lives of the identifiable intangible assets acquired in the acquisition are four years for user base and one year for
developed technology and trade name. The final purchase price allocation will depend upon the completion of our
integration plan in the second quarter of 2007.
Goodwill
Goodwill information for each segment is as follows (in thousands):
December 31,
2005
Goodwill
Acquired Adjustments
December 31,
2006
Segments:
Marketplaces ....................... $2,486,870 $43,120 $118,037 $2,648,027
Payments .......................... 1,348,385 — 248 1,348,633
Communications .................... 2,312,184 — 262,795 2,574,979
$6,147,439 $43,120 $381,080 $6,571,639
The increase in goodwill acquired during the year ended December 31, 2006 resulted from our acquisition of
the outstanding shares of Tradera.com. Adjustments to goodwill during the year ended December 31, 2006, resulted
primarily from foreign currency translation adjustments.
Investments accounted for under the equity method of accounting are classified on our balance sheet as long-
term investments. Such investments include identifiable intangible assets, deferred tax liabilities and goodwill.
Goodwill related to our equity method investments totaled approximately $27.4 million as of December 31, 2005
and 2006.
87
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)