eBay 2009 Annual Report Download - page 108

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eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The changes in goodwill during the year ended December 31, 2009 were primarily due to the sale of Skype,
the recording of goodwill for the acquisition of Gmarket and foreign currency translation adjustments.
We conducted our annual impairment test of goodwill as of August 31, 2009 and determined that no
adjustment to the carrying value of goodwill for any reportable units was necessary. As of December 31, 2009,
we determined that no events or circumstances from August 31, 2009 through December 31, 2009 indicate that a
further assessment was necessary.
We conducted our annual impairment test of goodwill as of August 31, 2007 and concluded that the
carrying amount of our Communications reporting unit exceeded its fair value and recorded an impairment
charge of approximately $1.4 billion during the year ended December 31, 2007. The impairment charge was
determined by comparing the carrying value of goodwill in our Communications reporting unit to the implied fair
value of goodwill.
Intangible Assets
The components of identifiable intangible assets are as follows (in thousands):
December 31, 2008 December 31, 2009
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful
Life
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful
Life
(years) (years)
Intangible assets:
Customer lists and
user base ...... $ 756,829 $(415,238) $341,591 6 $ 819,653 $ (524,667) $294,986 6
Trademarks and
trade names . . . 638,930 (393,353) 245,577 5 634,387 (300,046) 334,341 5
Developed
technologies . . . 199,893 (111,973) 87,920 3 225,614 (152,982) 72,632 3
All other ........ 126,381 (64,803) 61,578 4 149,315 (83,462) 65,853 4
$1,722,033 $(985,367) $736,666 $1,828,969 $(1,061,157) $767,812
All of our identifiable intangible assets are subject to amortization. Acquired identifiable intangible assets
are comprised of customer lists and user base, trademarks and trade names, developed technologies, and other
acquired intangible assets including patents and contractual agreements. No significant residual value is
estimated for the intangible assets. The increase in intangible assets during the year ended December 31, 2009
resulted primarily from certain intangible assets acquired as part of our acquisition of Gmarket partially offset by
the sale of Skype. The net carrying amount of intangible assets related to our equity investments, included in the
table above, totaled approximately $0.5 million as of December 31, 2008. Aggregate amortization expense for
intangible assets totaled $229.2 million, $281.6 million and $337.5 million for the years ended December 31,
2007, 2008 and 2009, respectively.
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