Intangible assets, net

6 Months Ended

Jun. 30, 2011

4. Intangible assets, net

Intangible assets, net consist of the following (amounts in millions):

		At June 30, 2011
		Estimated	Gross
		useful	carrying		Accumulated		Net carrying
		lives	amount		amortization		amount
Acquired definite-lived intangible assets:
	License agreements	3 - 10 years	$	88	$	(76)	$	12
	Game engines	2 - 5 years		32		(31)		1
	Internally-developed franchises	11 - 12 years		309		(180)		129
	Distribution agreements	4 years		18		(16)		2
Acquired indefinite-lived intangible assets:
	Activision trademark	Indefinite		386		---		386
	Acquired trade names	Indefinite		47		---		47
Total			$	880	$	(303)	$	577



		At December 31, 2010
		Estimated	Gross
		useful	carrying		Accumulated		Net carrying
		lives	amount		amortization		amount
Acquired definite-lived intangible assets:
	License agreements	3 - 10 years	$	88	$	(74)	$	14
	Game engines	2 - 5 years		32		(30)		2
	Internally-developed franchises	11 - 12 years		309		(167)		142
	Distribution agreements	4 years		18		(16)		2
Acquired indefinite-lived intangible assets:
	Activision trademark	Indefinite		386		---		386
	Acquired trade names	Indefinite		47		---		47
Total			$	880	$	(287)	$	593

Amortization expense of intangible assets was $7 million and $16 million for the three and six months ended June 30, 2011, respectively. Amortization expense of intangible assets was $11 million and $29 million for the three and six months ended June 30, 2010, respectively

The carrying amounts as of June 30, 2011 and December 31, 2010 in the tables above reflect a new cost basis for license agreements, game engines and internally-developed franchises due to impairment charges taken for the year ended December 31, 2010. The new cost basis includes the original gross carrying amount, less accumulated amortization and impairment charges of the impaired assets as of December 31, 2010.

At June 30, 2011, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):

2011 (remaining six months)	$	57
2012		35
2013		18
2014		9
2015		7
Thereafter		18

Total	$	144