Blizzard 2015 Annual Report Download - page 72

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Amortization expense of intangible assets was $13 million, $13 million, and $24 million for the years ended December 31, 2015,
2014, and 2013, respectively.
At December 31, 2015, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):
2016 ..........................................................................................................................................................
$ 17
2017 ..........................................................................................................................................................
12
2018 ..........................................................................................................................................................
7
2019 ..........................................................................................................................................................
5
2020 ..........................................................................................................................................................
4
Thereafter ..................................................................................................................................................
4
Total ..........................................................................................................................................................
$ 49
We did not record any impairment charges against our intangible assets for the years ended December 31, 2015, 2014 and 2013.
8. Goodwill
The changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2015 and 2014 are as follows
(amounts in millions):
Activision
Blizzard
Other
Total
Balance at December 31, 2013 ..........................................
$ 6,914
$ 178
$ —
$ 7,092
Tax benefit credited to goodwill ....................................
(5)
—
—
(5)
Foreign exchange ...........................................................
(1)
—
—
(1)
Balance at December 31, 2014 ..........................................
$ 6,908
$ 178
$ —
$ 7,086
Additions through acquisition ........................................
—
—
12
12
Tax benefit credited to goodwill ....................................
(2)
—
—
(2)
Foreign exchange ...........................................................
(1)
—
—
(1)
Balance at December 31, 2015 ..........................................
$6,905
$178
$12
$ 7,095
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 the Company, 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 additional paid-in capital. The addition to goodwill through acquisition is attributed to the
acquisition of the business of Major League Gaming (“MLG”) (see Note 23).
At December 31, 2015 and 2014, there were no accumulated impairment losses.
9. Other Current Assets and Current Accrued Expenses and Other Liabilities
Included in “Other current assets” of our consolidated balance sheets are deferred cost of sales—product costs of $216 million and
$257 million at December 31, 2015 and 2014, respectively.
Included in “Accrued expenses and other liabilities” of our consolidated balance sheets are accrued payroll-related costs of
$246 million and $267 million at December 31, 2015 and 2014, respectively.
10. Fair Value Measurements
FASB literature regarding fair value measurements for financial and non-financial assets and liabilities establishes a three-level fair
value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of
“observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as
follows:
• Level 1—Quoted prices in active markets for identical assets or liabilities;
• Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities
in active markets or other inputs that are observable or can be corroborated by observable market data; and
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