Activision 2010 Annual Report Download - page 62

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Depreciation expense for the years ended December 31, 2010, 2009, and 2008 was $68 million, $76 million, and
$79 million, respectively.
Rental expenses were $37 million, $38 million and $41 million for the years ended December 31, 2010, 2009, and
2008, respectively.
11. Goodwill
The changes in the carrying amount of goodwill by reporting unit for the years ended December 31, 2010 and 2009
are as follows (amounts in millions):
Activision Blizzard Distribution Total
Balance at December 31, 2008 ................................................................ $7,037 $178 $12 $7,227
Goodwill acquired ............................................................................... 3 — — 3
Issuance of contingent consideration ................................................... 6 — — 6
Purchase accounting adjustments ........................................................ (6) — — (6)
Tax benefit credited to goodwill .......................................................... (78) — — (78)
Foreign exchange ................................................................................. 2 — — 2
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
Issuance of contingent consideration consists of additional purchase consideration paid or accrued during 2009 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, 2010, 2009 and 2008, the gross goodwill and accumulated impairment losses by reporting unit are
as follows:
Activision Blizzard Distribution
Activision
Blizzard’s
core
operations Other(i) Total
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
Balance at December 31, 2010:
Goodwill ..................................................... $6,942 $178 $12 $7,132 $— $7,132
Total ............................................................ $6,942 $178 $12 $7,132 $— $7,132
(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. 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.