Blizzard 2005 Annual Report Download - page 85
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Please find page 85 of the 2005 Blizzard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Employee Retirement Plan
Wehavearetirementplancoveringsubstantiallyallofoureligibleemployees.TheretirementplanisqualifiedinaccordancewithSection401(k)oftheInternalRevenue
Code.Undertheplan,employeesmaydeferupto92%oftheirpre-taxsalary,butnotmorethanstatutorylimits.EffectiveJanuary1,2003,wecontribute20%ofeach
dollarcontributedbyaparticipant.PriortoJanuary1,2003,wecontributed5%ofeachdollarcontributedbyaparticipant.Ourmatchingcontributionstotheplanwere
approximately$905,000,$700,000,and$320,000duringtheyearsendedMarch31,2005,2004and2003,respectively.
15. CAPITAL TRANSACTIONS
Buyback Program
Duringfiscal2003,ourBoardofDirectorsauthorizedabuybackprogramunderwhichwecanrepurchaseupto$350.0millionofourcommonstock.Undertheprogram,
sharesmaybepurchasedasdeterminedbymanagement,fromtimetotime andwithincertainguidelines,intheopenmarketorinprivatelynegotiatedtransactions,
includingprivatelynegotiatedstructuredstockrepurchasetransactionsandthroughtransactionsintheoptionsmarkets.Dependingonmarketconditionsandotherfactors,
thesepurchasesmaybecommencedorsuspendedatanytimeorfromtimetotimewithoutpriornotice.
Underthebuybackprogram,wedidnotrepurchaseanysharesofourcommonstockintheyearendedMarch31,2005.Werepurchasedapproximately2.5millionshares
ofourcommonstockfor$12.4millionand21.6millionsharesofourcommonstockfor$101.4million,intheyearsendedMarch31,2004and2003,respectively.Inaddition,
approximately2.3millionsharesofcommonstockwereacquiredintheyearendedMarch31,2004asaresultofthesettlementof$10.0millionofstructuredstockrepur-
chasetransactions enteredinto infiscal 2003.As ofMarch 31,2005, we hadno outstanding structured stockrepurchasetransactions. Structured stock repurchase
transactions aresettledincashorstockbasedonthemarketpriceofour common stock on thedateofthesettlement. Upon settlement,we eitherhaveourcapital
investmentreturnedwithapremiumorreceivesharesofourcommonstock,depending,respectively,onwhetherthemarketpriceofourcommonstockisaboveorbelow
apre-determinedpriceagreedinconnectionwitheachsuchtransaction.Thesetransactionsarerecordedinshareholders’equityintheaccompanyingconsolidatedbalance
sheets.AsofMarch31,2005,wehadapproximately$226.2millionavailableforutilizationunderthebuybackprogramandnooutstandingstockrepurchasetransactions.
Shelf Registrations
InAugust2003,wefiledwiththeSecuritiesandExchangeCommissiontwoamendedshelfregistrationstatements,includingthebaseprospectusestherein.Thefirst
shelfregistrationstatement,onFormS-3,allowsus,atanytime,toofferanycombinationofsecuritiesdescribedinthebaseprospectusinoneormoreofferingswithan
aggregateinitialofferingpriceofupto$500,000,000.Unlesswestateotherwiseintheapplicableprospectussupplement,weexpecttousethenetproceedsfromthe
saleofthesecuritiesforgeneralcorporatepurposes,includingcapitalexpenditures,workingcapital,repaymentorreductionoflong-termandshort-termdebtandthe
financingofacquisitionsandotherbusinesscombinations.Wemayinvestfundsthatwedonotimmediatelyrequireinmarketablesecurities.
Thesecondshelfregistrationstatement,onFormS-4,allowsus,atanytime,toofferanycombinationofsecuritiesdescribedinthebaseprospectusinoneormore
offeringswithanaggregateinitialofferingpriceofupto$250,000,000inconnectionwithouracquisitionoftheassets,businessorsecuritiesofothercompanieswhether
bypurchase,merger,oranyotherformofbusinesscombination.
Shareholders’ Rights Plan
OnApril18,2000,ourBoardofDirectorsapprovedashareholdersrightsplan(the“RightsPlan”).UndertheRightsPlan,eachcommonshareholderatthecloseofbusiness
onApril19,2000,receivedadividendofonerightforeachshareofcommonstockheld.Eachrightrepresentstherighttopurchasetwonine-hundredths(2/900)ofa
share,asadjustedonaccountofstockdividendsmadesincetheplan’sadoption,ofourSeriesAJuniorPreferredStockatanexercisepriceof$8.89,asadjustedon
accountofstockdividendsmadesincetheplan’sadoption.Initially,therightsarerepresentedbyourcommonstockcertificatesandareneitherexercisablenortraded
separatelyfromourcommonstock.Therightswillonlybecomeexercisableifapersonorgroupacquires15%ormoreofthecommonstockofActivision,orannounces
orcommencesatenderorexchangeofferwhichwouldresultinthebidder’sbeneficialownershipof15%ormoreofourcommonstock.
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Activision, Inc. — 2005 Annual Report
Notes to Consolidated Financial Statements