Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v2.4.0.8
Intangible Assets
 12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Goodwill and Other Intangible Assets
Goodwill
Changes in the carrying amount of goodwill are as follows:
 
QVC
 
E-commerce
 
TripAdvisor
 
Total
 
amounts in millions
Balance at January 1, 2012
$
5,354

 
624

 
—

 
5,978

Acquisitions
21

 
19

 
3,649

 
3,689

Impairments
—

 
(82
)
 
—

 
(82
)
Foreign currency translation adjustments
(26
)
 
—

 
—

 
(26
)
Other
—

 
(3
)
 
—

 
(3
)
Balance at December 31, 2012
$
5,349

 
558

 
3,649

 
9,556

Foreign currency translation adjustments
(37
)
 
—

 
3

 
(34
)
Acquisitions
—

 
7

 
28

 
35

Impairments
—

 
(5
)
 
—

 
(5
)
Purchase price allocation adjustments (note 5)
—

 
—

 
(220
)
 
(220
)
Balance at December 31, 2013
$
5,312

 
560

 
3,460

 
9,332



Goodwill recognized from acquisitions primarily relate to assembled workforces, website community and other intangible assets that do not qualify for separate recognition.

As presented in the accompanying consolidated balance sheets, trademarks is the other significant indefinite lived intangible asset.
Intangible Assets Subject to Amortization
Intangible assets subject to amortization are comprised of the following:
 
December 31, 2013
 
December 31, 2012
 
Gross
 
 
 
Net
 
Gross
 
 
 
Net
 
carrying
 
Accumulated
 
carrying
 
carrying
 
Accumulated
 
carrying
 
amount
 
amortization
 
amount
 
amount
 
amortization
 
amount
 
amounts in millions
Television distribution rights
$
2,324

 
(1,700
)
 
624

 
2,304

 
(1,540
)
 
764

Customer relationships
3,612

 
(2,198
)
 
1,414

 
3,630

 
(1,761
)
 
1,869

Other
1,032

 
(578
)
 
454

 
943

 
(459
)
 
484

Total
$
6,968

 
(4,476
)
 
2,492

 
6,877

 
(3,760
)
 
3,117


The weighted average life of these amortizable intangible assets was approximately 9 years, at the time of acquisition. However, amortization is expected to match the usage of the related asset and will be on an accelerated basis as demonstrated in table below.
Amortization expense for intangible assets with finite useful lives was $784 million, $462 million and $490 million for the years ended December 31, 2013, 2012 and 2011, respectively. Based on its amortizable intangible assets as of December 31, 2013, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions):
2014
$
747

2015
$
650

2016
$
539

2017
$
366

2018
$
81


Impairments
During the year ended December 31, 2013 and 2012 we recorded $33 million and $92 million, respectively, in goodwill and other intangibles impairments for two of our E-commerce companies (Celebrate and Evite). Continued declining operating results as compared to budgeted results and certain trends required a Step 2 impairment test and a determination of fair value for these subsidiaries. Fair value for these subsidiaries, including the related intangibles and goodwill, were determined using the respective Company's projections of future operating performance and applying a combination of market multiples (market approach) and discounted cash flow (income approach) calculations (Level 3). As of December 31, 2013 accumulated impairment losses for the E-commerce companies was $143 million.