Blizzard 2009 Annual Report Download - page 69

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57
AtDecember31,2009,futureamortizationoffinitelivedintangibleassetsisestimatedasfollows
(amountsinmillions):
2010................................................................................................................................
$117
2011................................................................................................................................
98
2012................................................................................................................................
88
2013................................................................................................................................
62
2014................................................................................................................................
54
Thereafter........................................................................................................................
199
Total................................................................................................................................
$618
Inthefourthquarterof2009,withthefranchiseandindustryresultsoftheholidayseason,our
outlookfortheconsoleplatformswassignificantlyrevised.Withthecontinuedeconomicdownturnwithin
ourindustryin2009andthechangeinthebuyinghabitsofcasualconsumers,wereassessedouroverall
expectations.Weconsideredtheseeconomicchangesduringour2010planningprocessconductedduring
themonthsofNovemberandDecember,whichresultedinastrategychangetofocusonfewertitlereleases
inthecasualandmusicgenres.Asweconsiderthisatriggeringevent,weupdatedourfutureprojected
revenuesstreamsforcertainfranchisesinthecasualgamesandmusicgenres.Weperformedrecoverability
and,whereapplicable,impairmenttestsontherelatedintangibleassetsinaccordancewithASC
Subtopic36010.
Determiningwhetherimpairmenthasoccurredrequiresvariousestimatesandassumptions,
includingdeterminingwhichcashflowsaredirectlyrelatedtothepotentiallyimpairedasset,theestimated
remainingusefullifeoverwhichcashflowswilloccur,theamountofthesecashflowsandtheasset’s
residualvalue,ifany.Forintangibleassetsthatdidnotpasstherecoverabilitytest,measurementofan
impairmentlossrequiresadeterminationoffairvalue,whichisbasedonthebestinformationavailable.
Basedonthecharacteristicsoftheassetsbeingvaluedandtheavailabilityofinformation,theCompany
usedtheincomeapproach,whichpresumesthatthevalueofanassetcanbeestimatedbytheneteconomic
benefittobereceivedovertheestimatedremainingusefullifeoftheasset,discountedtopresentvalue.We
derivedtherequiredcashflowestimatesfromourhistoricalexperienceandourinternalbusinessplansand
appliedanappropriatediscountrate.Basedonthisanalysis,werecordedimpairmentchargesof
$24million,$12millionand$373milliontolicenseagreements,gameenginesandinternallydeveloped
franchisesintangibleassets,respectively,fortheyearendedDecember31,2009withinourActivision
segment.
13.CurrentAccruedExpensesandOtherLiabilities
Currentaccruedexpensesandotherliabilitieswerecomprisedofthefollowing(amounts
inmillions):
At
December31,
2009
2008
Accruedroyaltiespayable................................................................
$64
$88
Accruedsellingandmarketingcosts................................................................
128
128
Currentincometaxpayable................................................................
—
136
Accruedpayrollrelatedcosts................................................................
271
208
Other................................................................................................
316
282
Totalcurrentaccruedexpensesandotherliabilities................................
$779
$842