Note 4 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

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:



	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

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:



	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

Amortization expense for intangible assets was $433 million, $337 million and $254 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Expected future intangible asset amortization as of December 31, 2012 is as follows (in millions):



Fiscal years:
	2013	$	408
	2014	299
	2015	244
	2016	121
	2017	32
	Thereafter	24
		$	1,128

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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