Activision 2012 Annual Report Download - page 39

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provisions are met, the total future minimum commitments for these and other contractual arrangements in place at December 31, 2012 are
scheduled to be paid as follows (amounts in millions):
Contractual Obligations(1)
Facility and
equipment leases
Developer
and IP
Marketing
Total
For the year ending December 31,
2013 ......................................................................................................................................
33
119
58
210
2014 ......................................................................................................................................
31
5
51
87
2015 ......................................................................................................................................
22
1
—
23
2016 ......................................................................................................................................
18
—
6
24
2017 ......................................................................................................................................
17
—
6
23
Thereafter .............................................................................................................................
52
3
—
55
Total .................................................................................................................................
173
128
121
422
(1) We have omitted uncertain income tax liabilities from this table due to the inherent uncertainty regarding the timing of potential issue
resolution. Specifically, either the underlying positions have not been fully developed enough under audit to quantify at this time or
the years relating to the issues for certain jurisdictions are not currently under audit. At December 31, 2012, we had $207 million of
unrecognized tax benefits, of which $197 million was included in “Other Liabilities” and $10 million was included in “Accrued
Expenses and Other Liabilities” in the consolidated balance sheets.
Off-balance Sheet Arrangements
At December 31, 2012 and 2011, Activision Blizzard had no significant relationships with unconsolidated entities or financial parties,
often referred to as “structured finance” or “special purpose” entities, which would have been established for the purpose of facilitating off-
balance sheet arrangements or other contractually narrow or limited purposes, that have or are reasonably likely to have a material future effect on
our financial condition, changes in financial condition, revenues or expenses, results of operation, liquidity, capital expenditures, or capital
resources.
Financial Disclosure
We maintain internal control over financial reporting, which generally includes those controls relating to the preparation of our
financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). We also are
focused on our “disclosure controls and procedures,” which as defined by the Securities and Exchange Commission (the “SEC”), are generally
those controls and procedures designed to ensure that financial and non-financial information required to be disclosed in our reports filed with the
SEC is reported within the time periods specified in the SEC’s rules and forms, and that such information is communicated to management,
including our principal executive and financial officers, as appropriate, to allow timely decisions regarding required disclosure.
Our Disclosure Committee, which operates under the Board-approved Disclosure Committee Charter and Disclosure Controls &
Procedures Policy, includes senior management representatives and assists executive management in its oversight of the accuracy and timeliness
of our disclosures, as well as in implementing and evaluating our overall disclosure process. As part of our disclosure process, senior finance and
operational representatives from all of our corporate divisions and business units prepare quarterly reports regarding their current quarter
operational performance, future trends, subsequent events, internal controls, changes in internal controls and other accounting and disclosure
relevant information. These quarterly reports are reviewed by certain key corporate finance executives. These corporate finance representatives
also conduct quarterly interviews on a rotating basis with the preparers of selected quarterly reports. The results of the quarterly reports and
related interviews are reviewed by the Disclosure Committee. Finance representatives also conduct reviews with our senior management team,
our legal counsel and other appropriate personnel involved in the disclosure process, as appropriate. Additionally, senior finance and operational
representatives provide internal certifications regarding the accuracy of information they provide that is utilized in the preparation of our periodic
public reports filed with the SEC. Financial results and other financial information also are reviewed with the Audit Committee of the Board of
Directors on a quarterly basis. As required by applicable regulatory requirements, the principal executive and financial officers review and make
various certifications regarding the accuracy of our periodic public reports filed with the SEC, our disclosure controls and procedures, and our
internal control over financial reporting. With the assistance of the Disclosure Committee, we will continue to assess and monitor, and make
refinements to, our disclosure controls and procedures, and our internal control over financial reporting.