Blizzard 2005 Annual Report Download - page 68

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On฀March฀7,฀2005,฀in฀connection฀with฀our฀stock฀split,฀all฀shares฀of฀common฀stock฀held฀as฀treasury฀stock฀were฀formally฀cancelled฀and฀restored฀to฀the฀status฀of฀authorized฀
but฀unissued฀shares฀of฀common฀stock.
3. ACQUISITIONS
During฀the฀three฀years฀ended฀March฀31,฀2005,฀we฀separately฀completed฀the฀acquisition฀of฀four฀privately฀held฀interactive฀software฀development฀companies.฀We฀accounted฀
for฀these฀acquisitions฀in฀accordance฀with฀SFAS฀No.฀141,฀“Business฀Combinations.”฀SFAS฀No.฀141฀addresses฀financial฀accounting฀and฀reporting฀for฀business฀combinations,฀
requiring฀that฀the฀purchase฀method฀be฀used฀to฀account฀and฀report฀for฀all฀business฀combinations.฀These฀acquisitions฀have฀further฀enabled฀us฀to฀implement฀our฀multi-platform฀
development฀strategy฀by฀bolstering฀our฀internal฀product฀development฀capabilities฀for฀console฀systems฀and฀personal฀computers฀and฀strengthening฀our฀position฀in฀the฀first-
person฀action,฀action฀and฀action฀sports฀game฀categories.฀A฀significant฀portion฀of฀the฀purchase฀price฀for฀all฀of฀these฀acquisitions฀was฀assigned฀to฀goodwill฀as฀the฀primary฀
asset฀we฀acquired฀in฀each฀of฀the฀transactions฀was฀an฀assembled฀workforce฀with฀proven฀technical฀and฀design฀talent฀with฀a฀history฀of฀high฀quality฀product฀creation.฀Pro฀
forma฀consolidated฀statements฀of฀operations฀for฀these฀acquisitions฀are฀not฀shown,฀as฀they฀would฀not฀differ฀materially฀from฀reported฀results.
4. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
The฀following฀table฀summarizes฀our฀cash,฀cash฀equivalents฀and฀short-term฀investments฀as฀of฀March฀31,฀2005฀(amounts฀in฀thousands):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Cash฀and฀cash฀equivalents:
Cash฀and฀time฀deposits $ 180,871 $ — $ — $ 180,871
Money฀market฀instruments 107,519 — — 107,519
Commercial฀paper 21,589 — (7) 21,582
Corporate฀bonds 3,638 — (2) 3,636
Cash฀and฀cash฀equivalents 313,617 — (9) 313,608
Short-term฀investments:
Auction฀rate฀notes 15,020 — — 15,020
Corporate฀bonds 160,907 6 (1,602) 159,311
U.S.฀agency฀issues 266,837 — (2,037) 264,800
Asset-backed฀securities 83,517 23 (496) 83,044
Municipal฀bonds 4,019 — — 4,019
Common฀stock 167 895 — 1,062
Short-term฀investments 530,467 924 (4,135) 527,256
Cash,฀cash฀equivalents฀and฀short-term฀investments $ 844,084 $ 924 $ (4,144) $ 840,864
page 67
Activision, Inc. — 2005 Annual Report