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69
depreciationandamortizationforitsmostrecentlyendedfourquarterswouldbegreaterthan1.50to1.0.
Thislimitationdoesnot,however,affectActivisionBlizzard’sabilitytoborrowundertherevolvingcredit
facilityortoincurcertaintypesoflimiteddebt.Therevolvingcreditfacilityalsoimposesarequirementon
ActivisionBlizzardthattheratioof(i)consolidatedindebtedness(netofcertaincash)to(ii)thesumofits
shareholder’sequityplusconsolidatedindebtedness(netofcertaincash)notexceed20%atanytime.
NoborrowingsunderrevolvingcreditfacilitywithVivendiwereoutstandingatDecember31,
2009and2008.
Commitments
Inthenormalcourseofbusiness,weenterintocontractualarrangementswiththirdpartiesfornon
cancelableoperatingleaseagreementsforouroffices,forthedevelopmentofproducts,andfortherightsto
intellectualproperty.Undertheseagreements,wecommittoprovidespecifiedpaymentstoalessor,
developerorintellectualpropertyholder,asthecasemaybe,baseduponcontractualarrangements.The
paymentstothirdpartydevelopersaregenerallyconditionedupontheachievementbythedevelopersof
contractuallyspecifieddevelopmentmilestones.Further,thesepaymentstothirdpartydevelopersand
intellectualpropertyholderstypicallyaredeemedtobeadvancesandarerecoupableagainstfuture
royaltiesearnedbythedeveloperorintellectualpropertyholderbasedonthesaleoftherelatedgame.
Additionally,inconnectionwithcertainintellectualpropertyrightsacquisitionsanddevelopment
agreements,wewillcommittospendspecifiedamountsformarketingsupportfortherelatedgame(s)
whichistobedevelopedorinwhichtheintellectualpropertywillbeutilized.Assumingallcontractual
provisionsaremet,thetotalfutureminimumcommitmentsfortheseandothercontractualarrangementsin
placeatDecember31,2009arescheduledtobepaidasfollows(amountsinmillions):
ContractualObligations(1)
Facilityand
equipment
leases
Developerand
Intellectual
Properties
Marketing
Total
Fortheyearsending
December31,
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) Wehaveomitteduncertaintaxliabilitiesfromthistableduetotheinherent
uncertaintyregardingthetimingofpotentialissueresolution.Specifically,either
(a)theunderlyingpositionshavenotbeenfullydevelopedunderaudittoquantifyat
thistimeor,(b)theyearsrelatingtotheissuesforcertainjurisdictionsarenot
currentlyunderaudit.AtDecember31,2009,wehad$139millionofunrecognized
taxbenefits.
LegalProceedings
OnFebruary8,2008,theWayneCountyEmployees’RetirementSystemfiledalawsuit
challengingtheBusinessCombinationintheDelawareCourtofChancery.Thesuitisaputativeclass
actionfiledagainstthepartiestotheBusinessCombinationAgreementaswellascertaincurrentand
formermembersofourBoardofDirectors.Theplaintiffalleged,amongotherthings,thatourcurrentand
formerdirectorsnamedthereinfailedtofulfilltheirfiduciarydutieswithregardtotheBusiness
Combinationby“surrendering”thenegotiatingprocessto“conflictedmanagement,”thatthosebreaches
wereaidedandabettedbyVivendiandthoseofitssubsidiariesnamedinthecomplaint,andthatthe
preliminaryproxystatementfiledbytheCompanyonJanuary31,2008containscertainstatementsthatthe
plaintiffallegesarefalseandmisleading.Theplaintiffsoughtanorderfromthecourtthat,amongother