Blizzard 2009 Annual Report Download - page 78

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66
FairValueMeasurementsat
ReportingDateUsing
Quoted
Pricesin
Active
Marketsfor
Identical
Financial
Instruments
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Asof
December31,
2008
(Level1)
(Level2)
(Level3)
BalanceSheet
Classification
Financialassets:
Moneymarketfunds................................
$2,609
$2,609
$—
$—
Cashandcash
equivalents
Mortgagebackedsecurities................................
7
—
7
—
Shortterm
investments
Auctionratesecuritiesheldthrough
UBSandCitigroup,Inc................................
78
—
—
78
Longterm
investments
ARSrightsfromUBS................................
10
—
—
10
Otherassets—non
current
Foreignexchangecontractderivatives................
5
—
5
—
Otherassets—current
Totalfinancialassetsatfairvalue.......................
$2,709
$2,609
$12
$88
Financialliabilities:
Foreignexchangecontractderivatives................
$(2)
$—
$(2)
$—
Otherliabilities—
current
Otherfinancialliability................................
(31)
—
—
(31)
Otherliabilities—
current
Totalfinancialliabilitiesatfairvalue.................
$(33)
$—
$(2)
$(31)
 Otherfinancialliabilityrepresentstheearnoutliabilityfromapreviousacquisition.Theearnout
liabilitywasrecordedatfairvalueatthedateoftheBusinessCombinationasitwillbesettledbyavariable
numberofsharesofourcommonstockbasedontheaverageclosingpriceforthefivebusinessdays
immediatelyprecedingissuanceoftheshares.Whenestimatingthefairvalue,weconsideredourprojection
ofrevenuesfromtherelatedtitlesundertheearnoutprovisions.
Thefollowingtableprovidesareconciliationofthebeginningandendingbalancesofourfinancial
assetsandfinancialliabilitiesclassifiedasLevel3bymajorcategories(amountsinmillions):
Level3
Auctionrate
securities
(a)
ARSrights
fromUBS
(b)
Total
financial
assetsat
fair
value
Otherfinancial
liabilities
BalanceatJanuary1,2009................................................................
$78
$10
$88
$(31)
Totalgainsor(losses)(realized/unrealized)
Includedinearnings.......................................................................................
3
(3)
—
8
Purchasesoracquiredsales,issuancesandsettlements................................
(4)
—
(4)
—
BalanceatDecember31,2009................................................................
$77
$7
$84
$(23)
Theamountoftotalgainsor(losses)fortheperiodincludedin
earningsattributabletothechangeinunrealizedgainsorlosses
relatingtoassetsstillheldatDecember31,2009................................
$3
$(3)
$—
$8