Total Capital Gain distribution (2a)

Received my 1099-DIV and block 2(a) shows the total capital gain distribution.  However, all that was reinvested into those funds and nothing actually distributed to me.  I have seen on other posts that in the "eyes of the IRS" funds were distributed.  While looking up other sources, you don't pay the taxes on the capital gains until you actually sell the stock.  So no stock were sold.  How is this reported?  Are the taxes paid on the "Distributions" in block 2(a) regardless of you actually getting the funds directly?