Blizzard 2015 Annual Report Download - page 73

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55
• Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the
assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use
significant unobservable inputs.
Fair Value Measurements on a Recurring Basis
The table below segregates all financial assets that are measured at fair value on a recurring basis into the most appropriate level
within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions):
Fair Value Measurements at
December 31, 2015 Using
As of
December 31,
Quoted
Prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Balance Sheet
2015 (Level 1) (Level 2) (Level 3) Classification
Financial Assets:
Recurring fair value measurements:
Money market funds ............................. $ 1,613 $ 1,613 $ — $ — Cash and cash equivalents
Foreign government treasury bills ........ 34 34 — — Cash and cash equivalents
Foreign currency forward contracts
not designated as hedges ................... 11 — 11 — Other current assets
Auction rate securities (“ARS”) ............ 9 — — 9 Long-term investments
Total recurring fair value measurements $ 1,667 $ 1,647 $ 11 $ 9
Financial Liabilities:
Foreign currency forward contracts
designated as hedges ......................... $ (4) $ — $ (4) $ —
Accrued expenses and other
liabilities
Fair Value Measurements at
December 31, 2014 Using
As of
December 31,
Quoted
Prices in
Active
Markets for
Identical
Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Balance Sheet
2014 (Level 1) (Level 2) (Level 3) Classification
Financial Assets:
Recurring fair value measurements:
Money market funds ............................. $ 4,475 $ 4,475 $ — $ — Cash and cash equivalents
Foreign government treasury bills ........ 40 40 — — Cash and cash equivalents
ARS....................................................... 9 — — 9 Long-term investments
Total recurring fair value measurements $ 4,524 $ 4,515 $ — $ 9
ARS represented the only level 3 investment held by the Company. The fair value of these investments has been unchanged for the
years ended December 31, 2015, 2014, and 2013.
Foreign Currency Forward Contracts
Foreign Currency Forward Contracts Not Designated as Hedges
At December 31, 2015, the gross notional amount of outstanding foreign currency forward contracts not designated as hedges was
approximately $489 million. During the year ended December 31, 2015, we reclassified $8 million of unrealized gains out of
“Accumulated other comprehensive income (loss)” and into earnings due to dedesignating $250 million notional euro to U.S. dollar
cash flow hedges when it was determined the hedged transaction would not occur. As a result of the dedesignation, we entered into
offsetting foreign currency forward contracts. The dedesignated and offsetting foreign currency forward contracts remain outstanding
as of December 31, 2015.
10K_ 6NEW pages 18 37 38 55 59 63_040816.pdf 4 4/8/16 9:04 PM