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55
11.Goodwill
Thechangesinthecarryingamountofgoodwillbyoperatingsegmentsfortheyearsended
December31,2009and2008areasfollows(amountsinmillions):
Activision
Blizzard
Distribution
Activision
Blizzard’s
core
operations
Other(i)
Total
BalanceatDecember31,2007................................
$—
$178
$—
$178
$25
$203
Goodwillacquired...........................................................
7,043
—
12
7,055
—
7,055
Issuanceofcontingentconsideration...............................
9
—
—
9
6
15
Goodwillreassignment...................................................
7
—
—
7
(7)
—
Disposal................................................................
—
—
—
—
(8)
(8)
Impairmentcharge...........................................................
—
—
—
—
(16)
(16)
Taxbenefitcreditedtogoodwill................................
(19)
—
—
(19)
—
(19)
Foreignexchange.............................................................
(3)
—
—
(3)
—
(3)
BalanceatDecember31,2008................................
7,037
178
12
7,227
—
7,227
Goodwillacquired...........................................................
3
—
—
3
—
3
Issuanceofcontingentconsideration...............................
6
—
—
6
—
6
Purchaseaccountingadjustments................................
(6)
—
—
(6)
—
(6)
Taxbenefitcreditedtogoodwill................................
(78)
—
—
(78)
—
(78)
Foreignexchange.............................................................
2
—
—
2
—
2
BalanceatDecember31,2009................................
$6,964
$178
$12
$7,154
$—
$7,154
Activision
Blizzard
Distribution
Activision
Blizzard’s
core
operations
Other(i)
Total
BalanceatDecember31,2007:
Goodwill............................................................
$—
$178
$—
$178
$27
$205
Accumulatedimpairmentlosses........................
—
—
—
—
(2)
(2)
Total..................................................................
—
178
—
178
25
203
BalanceatDecember31,2008:
Goodwill............................................................
7,037
178
12
7,227
18
7,245
Accumulatedimpairmentlosses........................
—
—
—
—
(18)
(18)
Total..................................................................
7,037
178
12
7,227
—
7,227
BalanceatDecember31,2009:
Goodwill............................................................
6,964
178
12
7,154
18
7,172
Accumulatedimpairmentlosses........................
—
—
—
—
(18)
(18)
Total..................................................................
$6,964
$178
$12
$7,154
$—
$7,154
(i) OtherrepresentsNonCoreactivities,whicharelegacyVivendiGames’divisionsorbusinessunits
thatwehaveexited,divestedorwounddownaspartofourrestructuringandintegrationeffortsas
aresultoftheBusinessCombination.PriortoJuly1,2009,NonCoreactivitiesweremanagedas
astandaloneoperatingsegment;however,inlightoftheminimalactivitiesandinsignificanceof
NonCoreactivities,asofthatdateweceasedtheirmanagementasaseparateoperatingsegment
andconsequentlywearenolongerprovidingseparateoperatingsegmentdisclosureandhave
reclassifiedourpriorperiods’segmentpresentationsothatitconformstothecurrentperiod’s
presentation.
Issuanceofcontingentconsiderationconsistsofadditionalpurchaseconsiderationpaidoraccrued
during2009and2008inrelationtopreviousacquisitions.Thetaxbenefitcreditedtogoodwillrepresents
thetaxdeductionresultingfromtheexerciseofstockoptionsthatwereoutstandingandvestedatthe
consummationoftheBusinessCombinationandincludedinthepurchasepriceofActivision,Inc.tothe
extentthatthetaxdeductiondidnotexceedthefairvalueofthoseoptions.Conversely,totheextentthat
thetaxdeductiondidexceedthefairvalueofthoseoptions,thetaxbenefitiscreditedtoaccumulatedpaid
incapital.