Activision 2008 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2008 Activision annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

64
12. Intangible Assets, Net
Intangible assets, net consist of the following (amounts in millions):
At December 31, 2008
Estimated
useful
lives
Gross
carrying
amount Accumulated
amortization
Impairment
charge
(See Note 8) Foreign
exchange
Net
carrying
amount
Acquired definite-lived
intangible assets:
License agreements...............
.
3 - 10 years $207 $(12) $— $— $195
Developed software...............
.
1 - 2 years 290 (275) — (1) 14
Game engines........................
.
2 - 5 years 136 (42) — (2) 92
Internally developed
franchises ..........................
.
11 - 12 years 1,124 (145) — — 979
Retail customer
relationships ......................
.
< 1 year 40 (40) — — —
Favorable leases....................
.
1 - 4 years 5 (1) — — 4
Distribution agreements ........
.
4 years 17 (5) — — 12
Other intangibles...................
.
0 - 2 years 5 (4) — — 1
Acquired indefinite-lived
intangible assets:
Activision trademark.............
.
Indefinite 385 — — — 385
Acquired trade names............
.
Indefinite 53 —(5) — 48
Total..........................................
.
$2,262 $(524) $(5) $(3) $1,730
At December 31, 2007
Estimated
useful
lives
Gross
carrying
amount Accumulated
amortization Impairment
charge
Net
carrying
amount
Acquired definite-lived intangible assets:
Developed software .............................................
.
2 yrs $215 $(210) $— $5
Other intangibles..................................................
.
0 - 2 yrs 13 (11) — 2
Acquired indefinite-lived intangible assets:
Acquired trade names...........................................
.
Indefinite 53 — — 53
Total.........................................................................
.
$281 $(221) $— $60
Amortization expense of intangible assets was $306 million, $4 million, and $4 million
for the years ended December 31, 2008, 2007, and 2006, respectively.