Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v2.4.0.6
Intangible Assets
 9 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
Goodwill
Changes in the carrying amount of goodwill are as follows:
 
QVC
 
E-commerce
 
Total
 
amounts in millions
Balance at January 1, 2012
$
5,354

 
624

 
5,978

Foreign currency translation adjustments
(3
)
 
—

 
(3
)
Acquisitions
15

 
17

 
32

Impairment (1)
—

 
(39
)
 
(39
)
Balance at September 30, 2012
$
5,366

 
602

 
5,968



(1) Liberty recorded an impairment at our subsidiary Celebrate Interactive Holdings, Inc. due to continued declining operating results in that particular business and disappointing third quarter trends. Each distinct business within our E-commerce companies is considered a separate reporting unit. It was determined the fair value of that reporting unit was less than its carrying amount and the entirety of the goodwill associated with this business was impaired during the three months ended September 30, 2012. Fair value was determined based on company projections of future operating performance using a combination of market multiples and a discounted cash flow calculation (level 3).
Intangible Assets Subject to Amortization
Amortization expense for intangible assets with finite useful lives was $331 million and $333 million for the nine month periods ended September 30, 2012 and 2011, respectively. Based on its amortizable intangible assets as of September 30, 2012, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions):
Remainder of 2012
$
122

2013
$
451

2014
$
423

2015
$
380

2016
$
336