Blizzard 2011 Annual Report Download - page 63

Rental expenses were $38 million, $37 million and $38 million for the years ended December 31, 2011, 2010, and
2009, respectively.
10. Goodwill
The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2011 and 2010
are as follows (amounts in millions):
Activision Blizzard Distribution Total
Balance at December 31, 2009 ..........................................................................
.
$6,964 $178 $12 $7,154
Tax benefit credited to goodwill ...................................................................
.
(22) — — (22)
Balance at December 31, 2010 ..........................................................................
.
$6,942 $178 $12 $7,132
Tax benefit credited to goodwill ...................................................................
.
(12) — — (12)
Issuance of contingent consideration ............................................................
.
3— — 3
Impairment of goodwill ................................................................................
.
— — (12) (12)
Balance at December 31, 2011 ..........................................................................
.
$6,933 $178 $— $7,111
Issuance of contingent consideration consists of additional purchase consideration paid or accrued 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.
At December 31, 2011 and 2010, the gross goodwill and accumulated impairment losses by reporting unit are as
follows:
Activision Blizzard Distribution Total
Balance at December 31, 2010:
Goodwill ..................................................................................................................... $6,942 $178 $12 $7,132
Total ............................................................................................................................ $6,942 $178 $12 $7,132
Balance at December 31, 2011:
Goodwill ..................................................................................................................... $6,933 $178 $12 $7,123
Accumulated impairment losses ................................................................................ —— (12) (12)
Total ............................................................................................................................ $6,933 $178 $— $7,111
11. Intangible Assets, Net
Intangible assets, net consist of the following (amounts in millions):
At December 31, 2011
Estimated
useful
lives
Gross
carrying
amount
Accumulated
amortization
Impairment
charge
Net
carrying
amount
Acquired definite-lived intangible assets:
License agreements .......................................................................... 3 - 10 years $88 $(82) $— $6
Game engines ................................................................................... 2 - 5 years 32 (32) — —
Internally developed franchises ....................................................... 11 - 12 years 309 (227) — 82
Distribution agreements ................................................................... 4 years 18 (18) — —
Acquired indefinite-lived intangible assets:
Activision trademark........................................................................ Indefinite 386 — — 386
Acquired trade names ...................................................................... Indefinite 47 — — 47
Total ...................................................................................................... $880 $(359) $— $521
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