Expedia, Inc. | 2013 | FY | 3


NOTE 7 — Goodwill and Intangible Assets, Net

The following table presents our goodwill and intangible assets as of December 31, 2013 and 2012:

 

     December 31,  
     2013      2012  
     (In thousands)  

Goodwill

   $ 3,663,674       $ 3,015,670   

Intangible assets with indefinite lives

     875,688         657,865   

Intangible assets with definite lives, net

     235,353         163,554   
  

 

 

    

 

 

 
   $ 4,774,715       $ 3,837,089   
  

 

 

    

 

 

 

Impairment Assessments. We perform our annual assessment of possible impairment of goodwill and indefinite-lived intangible assets as of October 1, or more frequently if events and circumstances indicate that impairment may have occurred. As of October 1, 2013, we had no impairments to goodwill but recorded a $3 million impairment charge related to an indefinite-lived trade name within our Leisure segment, which was included in intangible amortization during the year ended December 31, 2013. As of October 1, 2012, we had no impairments.

Goodwill. The following table presents the changes in goodwill by reportable segment:

 

     Leisure      Egencia      Total  
     (In thousands)  

Balance as of January 1, 2012

   $ 2,814,486       $ 62,815       $ 2,877,301   

Additions

     2,684         128,730         131,414   

Foreign exchange translation

     5,218         1,737         6,955   
  

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2012

     2,822,388         193,282         3,015,670   

Additions

     636,445         —           636,445   

Foreign exchange translation

     10,190         1,369         11,559   
  

 

 

    

 

 

    

 

 

 

Balance as of December 31, 2013

   $ 3,469,023       $ 194,651       $ 3,663,674   
  

 

 

    

 

 

    

 

 

 

In 2013 and 2012, the additions to goodwill relate primarily to our acquisitions as described in Note 3 — Acquisitions and are not expected to be deductible for tax purposes.

As of December 31, 2013 and 2012, accumulated goodwill impairment losses in total were $2.5 billion, which is associated with Leisure.

Indefinite-lived Intangible Assets. Our indefinite-lived intangible assets relate principally to trade names and trademarks acquired in various acquisitions.

 

Intangible Assets with Definite Lives. The following table presents the components of our intangible assets with definite lives as of December 31, 2013 and 2012:

 

     December 31, 2013      December 31, 2012  
     Cost      Accumulated
Amortization
    Net      Cost      Accumulated
Amortization
    Net  
     (In thousands)  

Supplier relationships

   $ 329,424       $ (263,138   $ 66,286       $ 282,884       $ (244,083   $ 38,801   

Technology

     287,984         (214,983     73,001         209,901         (185,709     24,192   

Customer lists

     109,969         (36,360     73,609         109,971         (26,275     83,696   

Affiliate agreements

     38,514         (37,412     1,102         38,627         (33,911     4,716   

Other

     285,262         (263,907     21,355         267,728         (255,579     12,149   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 1,051,153       $ (815,800   $ 235,353       $ 909,111       $ (745,557   $ 163,554   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Amortization expense was $72 million, $32 million, and $22 million for the years ended December 31, 2013, 2012 and 2011.

The estimated future amortization expense related to intangible assets with definite lives as of December 31, 2013, assuming no subsequent impairment of the underlying assets, is as follows, in thousands:

 

2014

   $ 70,784   

2015

     56,570   

2016

     34,937   

2017

     20,012   

2018

     16,071   

2019 and thereafter

     36,979   
  

 

 

 

Total

   $ 235,353   
  

 

 

 

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