eBay 2012 Annual Report Download - page 109

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Note 4 – Goodwill and Intangible Assets
Goodwill
The following table presents goodwill balances and adjustments to those balances for each of our reportable segments and corporate
investments for the year ended December 31, 2012 and 2011 :
The adjustments to goodwill during the year ended December 31, 2012 were due primarily to foreign currency translation
and changes in tax items. A portion of goodwill acquired as part of the GSI acquisition and Magento acquisition (included in Corporate and
Other) was allocated to the Marketplaces and Payments segments, respectively, based on synergies expected to be realized. The adjustments to
goodwill during the year ended December 31, 2011 were due primarily to foreign currency translation.
We conducted our annual impairment test of goodwill as of August 31, 2012 and determined that no adjustment to the carrying value of
goodwill for any reportable units was necessary. As of December 31, 2012 , we determined that no events or circumstances from August 31,
2012 through December 31, 2012 indicated that a further assessment was necessary.
Intangible Assets
The components of identifiable intangible assets are as follows:
Amortization expense for intangible assets was $433 million , $337 million and $254 million for the years ended December 31, 2012 ,
2011 and 2010 , respectively.
F-17
December 31,
2010
Goodwill
Acquired
Adjustments/Allocations
December 31,
2011
Goodwill
Acquired
Adjustments/Disposals
December 31,
2012
(In millions)
Reportable segments:
Marketplaces
$
4,045
$
380
$
85
$
4,510
$
92
$
130
$
4,732
Payments
2,149
310
56
2,515
8
(4
)
2,519
GSI
—
1,484
(191
)
1,293
—
(
54
)
1,239
Corporate and other
—
114
(67
)
47
—
—
47
Total Goodwill
$
6,194
$
2,288
$
(117
)
$
8,365
$
100
$
72
$
8,537
December 31, 2012
December 31, 2011
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Weighted
Average
Useful Life
(Years)
Gross Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Weighted
Average
Useful Life
(Years)
(In millions, except years)
Intangible assets:
Customer lists and user
base
$
1,644
$
(991
)
$
653
5
$
1,633
$
(787
)
$
846
5
Trademarks and trade
names
743
(569
)
174
5
730
(469
)
261
5
Developed technologies
525
(322
)
203
4
498
(249
)
249
3
All other
252
(154
)
98
4
182
(132
)
50
4
$
3,164
$
(2,036
)
$
1,128
$
3,043
$
(1,637
)
$
1,406