Blizzard 2009 Annual Report Download - page 33
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ourBoardofDirectorsauthorizedanincreaseof$250milliontothestockrepurchaseprogrambringingthe
totalauthorizationto$1.25billion.
ThroughDecember31,2009,werepurchased114millionsharesofourcommonstockfor
$1,235millionundertheprogram.Inaddition,wehadagreedtorepurchase1.3millionsharesofour
commonstockatanaveragepricepershareof$11.32foravalueof$15millionthathadnotyetsettledat
December31,2009.Thiscompletedourinitial$1.25billionstockrepurchaseprogram.
OnFebruary10,2010,weannouncedthatourBoardofDirectorsauthorizedanewstock
repurchaseprogramunderwhichwemayrepurchaseupto$1billionofourcommonstockontermsand
conditionstobedeterminedbytheCompanyuntiltheearlierofDecember31,2010oradeterminationby
theBoardofDirectorstodiscontinuetherepurchaseprogram.
Additionally,onFebruary10,2010,ActivisionBlizzard’sBoardofDirectorsdeclaredacash
dividendof$0.15percommonsharepayableonApril2,2010toshareholdersofrecordatthecloseof
businessonFebruary22,2010.
CashFlowsfromOperatingActivities
Theprimarydriversofcashflowsfromoperatingactivitieshavetypicallyincludedthecollection
ofcustomerreceivablesgeneratedbythesaleofourproductsandoursubscriptionrevenues,offsetby
paymentsfortaxesandtovendorsforthemanufacture,distributionandmarketingofourproducts,
thirdpartydevelopersandintellectualpropertyholders,andtoourworkforce.Asignificantoperatinguse
ofourcashrelatestoourcontinuedinvestmentinsoftwaredevelopmentandintellectualpropertylicenses.
Weexpectthatwewillcontinuetomakesignificantexpendituresrelatingtoourinvestmentinsoftware
developmentandintellectualpropertylicenses.
CashFlowsfromInvestingActivities
Theprimarydriversofcashflowsusedininvestingactivitieshavetypicallyincludedcapital
expenditures,acquisitionsandtheneteffectofpurchasesandsales/maturitiesofshortterminvestments.
CashFlowsfromFinancingActivities
Theprimarydriversofcashflowsprovidedbyfinancingactivitieshavehistoricallyrelatedto
transactionsinvolvingourcommonstock,includingtheissuanceofourcommonstocktoemployeesand
thepublicandthepurchaseoftreasuryshares.Wehavenotutilizeddebtfinancingasasourceofcash
flows.However,ifneeded,wemayaccessandutilizethecreditfacilitiesthataredescribedin“Credit
Facilities”inNote18oftheNotestoConsolidatedFinancialStatementsincludedinthisAnnualReport.
FortheyearendedDecember31,2009,cashflowsusedinfinancingactivitiesincluded
$1.1billionusedtopurchaseActivisionBlizzardstockunderthestockrepurchaseprogramdescribed
above.
CapitalRequirements
FortheyearendingDecember31,2010,weanticipatetotalcapitalexpendituresofapproximately
$145million.Capitalexpenditureswillbeprimarilyforcomputerhardwareandsoftwarepurchasesand
variouscorporateprojects.
Commitments
Inthenormalcourseofbusiness,weenterintocontractualarrangementswiththirdpartiesfor
noncancelableoperatingleaseagreementsforouroffices,forthedevelopmentofproducts,andforthe
rightstointellectualproperty(“IP”).Undertheseagreements,wecommittoprovidespecifiedpaymentsto
alessor,developerorintellectualpropertyholder,asthecasemaybe,baseduponcontractual
arrangements.Thepaymentstothirdpartydevelopersaregenerallyconditionedupontheachievementby