Blizzard 2008 Annual Report Download - page 40

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(b) the years relating to the issues for certain jurisdictions are not currently under audit.
At December 31, 2008, we had $103 million of unrecognized tax benefits.
Off-Balance Sheet Arrangements
At December 31, 2008 and 2007, Activision Blizzard had no relationships with
unconsolidated entities or financial parties, such as entities 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 expenditure, 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 U.S. GAAP. We
also are focused on our “disclosure controls and procedures,” which as defined by 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 of Directors-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 internal and external 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.