Activision 2008 Annual Report Download - page 79

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65
13. Current Accrued Expenses and Other Liabilities
Current accrued expenses and other liabilities were comprised of the following (amounts
in millions):
At December 31,
2008 2007
(as adjusted)
Accrued royalties payable...............................................
.
$88 $6
Accrued selling and marketing costs...............................
.
128 —
Current income tax payable.............................................
.
136 —
Accrued payroll related costs ..........................................
.
208 225
Accrued professional and legal costs ..............................
.
68 1
Other................................................................................
.
214 50
Total current accrued expenses and other liabilities....
.
$842 $282
14. Operating Segments and Geographic Area
Our operating segments are in accordance with our internal organizational structure, the
manner in which our operations are reviewed and managed by our Chief Executive Officer, our
Chief Operating Decision Maker (“CODM”), the manner in which operating performance is
assessed and resources are allocated, and the availability of separate financial information.
Prior to the Business Combination, Vivendi Games managed its business in two main
divisions: Blizzard Entertainment and Sierra Entertainment (along with Sierra online and Vivendi
Games Mobile). As a result of the Business Combination, we provide our CODM financial
information based upon management’s new organizational structure.
Based upon our current organizational structure, we operate four operating segments:
(i) Activision Publishing—publishing interactive entertainment software and peripherals which
includes Activision, Inc. and certain studios, assets, and titles previously included in Vivendi
Games’ Sierra Entertainment operating segment prior to the Business Combination (“Activision”),
(ii) Blizzard Entertainment, Inc. and its subsidiaries—publishing traditional games and online
subscription-based games in the MMORPG category (“Blizzard”), (iii) Activision Blizzard
Distribution—distribution of interactive entertainment software and hardware products
(“Distribution”) (these three operating segments form Activision Blizzard’s core operations) and
(iv) Activision Blizzard’s non-core exit operations. Activision Blizzard’s non-core exit operations
represent legacy Vivendi Games’ divisions or business units that we have exited or are winding
down as part of our restructuring and integration efforts as a result of the Business Combination,
but do not meet the criteria for separate reporting of discontinued operations. In accordance with
the provisions of SFAS No. 131, all prior period segment information has been restated, when
practical, to conform to this new segment presentation. (See Note 1 of the Notes to Consolidated
Financial Statements).