Goodwill

12 Months Ended

Dec. 31, 2011

Goodwill:

Goodwill

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