Blizzard 2009 Annual Report Download - page 34
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thedevelopersofcontractuallyspecifieddevelopmentmilestones.Further,thesepaymentstothirdparty
developersandintellectualpropertyholderstypicallyaredeemedtobeadvancesandarerecoupableagainst
futureroyaltiesearnedbythedeveloperorintellectualpropertyholderbasedonthesaleoftherelated
game.Additionally,inconnectionwithcertainintellectualpropertyrightsacquisitionsanddevelopment
agreements,wecommittospendspecifiedamountsformarketingsupportfortherelatedgame(s)whichis
tobedevelopedorinwhichtheintellectualpropertywillbeutilized.Assumingallcontractualprovisions
aremet,thetotalfutureminimumcommitmentsfortheseandothercontractualarrangementsinplaceat
December31,2009arescheduledtobepaidasfollows(amountsinmillions):
ContractualObligations(1)
Facilityand
equipment
leases
Developer
andIP
Marketing
Total
FortheyearendingDecember31,
2010...............................................................................................
$37
$113
$27
$177
2011...............................................................................................
25
41
25
91
2012...............................................................................................
21
18
13
52
2013...............................................................................................
18
22
—
40
2014...............................................................................................
15
10
—
25
Thereafter......................................................................................
32
—
—
32
Total..........................................................................................
$148
$204
$65
$417
(1) Wehaveomitteduncertainincometaxliabilitiesfromthistableduetotheinherentuncertainty
regardingthetimingofpotentialissueresolution.Specifically,eithertheunderlyingpositions
havenotbeenfullyenoughdevelopedunderaudittoquantifyatthistimeor,theyearsrelatingto
theissuesforcertainjurisdictionsarenotcurrentlyunderaudit.AtDecember31,2009,wehad
$139millionofunrecognizedtaxbenefits.
OffBalanceSheetArrangements
AtDecember31,2009and2008,ActivisionBlizzardhadnorelationshipswithunconsolidated
entitiesorfinancialparties,suchasentitiesoftenreferredtoasstructuredfinanceorspecialpurpose
entities,whichwouldhavebeenestablishedforthepurposeoffacilitatingoffbalancesheetarrangements
orothercontractuallynarroworlimitedpurposes,thathaveorarereasonablylikelytohaveamaterial
futureeffectonourfinancialcondition,changesinfinancialcondition,revenuesorexpenses,resultsof
operation,liquidity,capitalexpenditure,orcapitalresources.
FinancialDisclosure
Wemaintaininternalcontroloverfinancialreporting,whichgenerallyincludesthosecontrols
relatingtothepreparationofourfinancialstatementsinconformitywithaccountingprinciplesgenerally
acceptedintheUnitedStatesofAmerica(“U.S.GAAP”).Wealsoarefocusedonour“disclosurecontrols
andprocedures,”whichasdefinedbytheSecuritiesandExchangeCommission(the“SEC”)aregenerally
thosecontrolsandproceduresdesignedtoensurethatfinancialandnonfinancialinformationrequiredtobe
disclosedinourreportsfiledwiththeSECisreportedwithinthetimeperiodsspecifiedintheSEC’srules
andforms,andthatsuchinformationiscommunicatedtomanagement,includingourprincipalexecutive
andfinancialofficers,asappropriate,toallowtimelydecisionsregardingrequireddisclosure.
OurDisclosureCommittee,whichoperatesundertheBoardapprovedDisclosureCommittee
CharterandDisclosureControls&ProceduresPolicy,includesseniormanagementrepresentativesand
assistsexecutivemanagementinitsoversightoftheaccuracyandtimelinessofourdisclosures,aswellas
inimplementingandevaluatingouroveralldisclosureprocess.Aspartofourdisclosureprocess,senior
financeandoperationalrepresentativesfromallofourcorporatedivisionsandbusinessunitsprepare
quarterlyreportsregardingtheircurrentquarteroperationalperformance,futuretrends,subsequentevents,
internalcontrols,changesininternalcontrolsandotheraccountinganddisclosurerelevantinformation.
Thesequarterlyreportsarereviewedbycertainkeycorporatefinanceexecutives.Thesecorporatefinance
representativesalsoconductquarterlyinterviewsonarotatingbasiswiththepreparersofselectedquarterly
reports.TheresultsofthequarterlyreportsandrelatedinterviewsarereviewedbytheDisclosure
Committee.Financerepresentativesalsoconductreviewswithourseniormanagementteam,ourinternal