Restructuring

12 Months Ended

Dec. 31, 2012

Restructuring

Restructuring

7. Restructuring

On February 3, 2011, the Board of Directors of the Company authorized a restructuring plan (the “2011 Restructuring”) involving a focus on the development and publication of a reduced slate of titles on a going-forward basis. The 2011 Restructuring included the discontinuation of the development of music-based games, the closure of the related business unit and the cancellation of other titles then in production, along with a related reduction in studio headcount and corporate overhead.

The following table details the amount of the 2011 Restructuring reserves included in “Accrued Expenses and Other Liabilities” in the consolidated balance sheet at December 31, 2012 and 2011 (amounts in millions):

					Contract
			Facilities		termination
	Severance		costs		costs		Total
Balance at January 1, 2011	$	---	$	---	$	---	$	---
Costs charged to expense		20		4		1		25
Costs paid or otherwise settled		(16)		(1)		(1)		(18)
Balance at December 31, 2011	$	4	$	3	$	---	$	7
Costs paid or otherwise settled		(4)		---		---		(4)
Balance at December 31, 2012	$	---	$	3	$	---	$	3

The 2011 Restructuring charges for the year ended December 31, 2011 was$25 million.  These charges, as well as the 2011 Restructuring reserve balances at December 31, 2012 and 2011, were recorded within our Activision segment. We completed the 2011 Restructuring as of December 31, 2011 and we do not expect to incur significant additional restructuring expenses relating thereto.

We have also completed our implementation of our organizational restructuring plan as a result of the Business Combination. There were minimal cash payments and additional charges in our consolidated statement of operations for the year ended December 31, 2011 relating to that restructuring and we do not expect to incur additional restructuring expenses relating thereto.