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accounting.Theamendmentsinthisupdatealsoestablishasellingpricehierarchyfordeterminingthe
sellingpriceofadeliverable.Significantlyenhanceddisclosuresarealsorequiredtoprovideinformation
aboutavendor’smultipledeliverablerevenuearrangements,includinginformationaboutthenatureand
terms,significantdeliverables,anditsperformancewithinarrangements.Theamendmentsalsorequire
providinginformationaboutthesignificantjudgmentsmadeandchangestothosejudgmentsandabout
howtheapplicationoftherelativesellingpricemethodaffectsthetimingoramountofrevenue
recognition.Theamendmentsinthisupdateareeffectiveprospectivelyforrevenuearrangementsentered
intoormateriallymodifiedinthefiscalyearsbeginningonorafterJune15,2010.Earlyapplicationis
permitted.Wearecurrentlyevaluatingtheimpact,ifany,ofthisnewaccountingupdateonour
consolidatedfinancialstatements.
InOctober2009,theFASBissuedanupdatetoSoftware—CertainRevenueArrangementsThat
IncludeSoftwareElements.Thisupdatechangestheaccountingmodelforrevenuearrangementsthat
includebothtangibleproductsandsoftwareelementsthatare“essentialtothefunctionality,”andexcludes
theseproductsfromthescopeofcurrentsoftwarerevenueguidance.Thenewguidancewillincludefactors
tohelpcompaniesdeterminewhichsoftwareelementsareconsidered“essentialtothefunctionality.”The
amendmentswillnowsubjectsoftwareenabledproductstootherrevenueguidanceanddisclosure
requirements,suchasguidancesurroundingrevenuearrangementswithmultipledeliverables.The
amendmentsinthisupdateareeffectiveprospectivelyforrevenuearrangementsenteredintoormaterially
modifiedinthefiscalyearsbeginningonorafterJune15,2010althoughearlyapplicationispermitted.We
arecurrentlyevaluatingtheimpact,ifany,ofthisnewaccountingupdateonourconsolidatedfinancial
statements.
InJanuary2010,theFASBissuedanupdatetoFairValueMeasurementsandDisclosures.This
updateprovidesamendmentstoASCSubtopic82010requiringnewdisclosuresregarding(1)transfersin
andoutofLevels1and2,inwhichtheCompanyshoulddiscloseseparatelytheamountsofsignificant
transfersinandoutofLevel1andLevel2fairvaluemeasurementsanddescribethereasonsforthe
transfers,and(2)thereconciliationforfairvaluemeasurementsusingsignificantunobservableinputs
(Level3),inwhichtheCompanyshouldpresentseparatelyinformationaboutpurchases,sales,issuances,
andsettlements(onagrossbasisratherthanasonenetnumber).Inadditiontheupdateprovides
clarificationofexistingdisclosuresregardingthelevelofdisaggregationanddisclosuresaboutinputsand
valuationtechniques.Thenewdisclosuresandclarificationsofexistingdisclosuresareeffectiveforinterim
andannualreportingperiodsbeginningafterDecember15,2009,exceptforthedisclosuresaboutpurchase,
sales,issuances,andsettlementsintherollforwardactivityinLevel3fairvaluemeasurements.Those
disclosuresareeffectiveforfiscalyearsbeginningafterDecember15,2010andforinterimperiodswithin
thosefiscalyears.Wearecurrentlyevaluatingtheimpact,ifany,ofthisnewaccountingupdateonour
consolidatedfinancialstatements.
25.Subsequentevents
OnFebruary10,2010ActivisionBlizzard’sBoardofDirectorsdeclaredacashdividendof$0.15
percommonsharepayableonApril2,2010toshareholdersofrecordatthecloseofbusinesson
February22,2010.Also,onFebruary10,2010,ourBoardofDirectorsauthorizedanewstockrepurchase
programunderwhichwemayrepurchaseupto$1billionofourcommonstock(seeNote20ofthenotesto
consolidatedfinancialstatementsforfurtherdetailsregardingtherepurchaseprogram).