Activision 2013 Annual Report Download - page 75

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Deferred Financing Costs
Costs incurred to obtain our long-term debt are amortized over the terms of the respective debt agreements using a
straight-line basis for costs related to the Revolver and the interest earned method for costs related to the Term Loan and Notes.
For the year ended December 31, 2013, we recorded $7 million of deferred financing costs within “Other assets—non-current”
in our consolidated balance sheet. For the year ended December 31, 2013, amortization expense related to the deferred financing
costs was not material and is recorded within “Interest and other investment income (expense), net” in our consolidated
statement of operations.
13. Accumulated Other Comprehensive Income (Loss)
The components of accumulated other comprehensive income (loss) at December 31, 2013 and 2012 were as follows
(amounts in millions):
For the Year Ended December 31, 2013
Foreign
currency
translation
adjustments
Unrealized
gain on
available-
for-sale
securities Total
Balance at December 31, 2012 ................................................................ $ (26) $ — $ (26)
Other comprehensive income (loss) before reclassifications ............. 93 1 94
Amounts reclassified from accumulated other comprehensive
income (loss) .................................................................................. —— —
Balance at December 31, 2013 ................................................................ $ 67 $ 1 $ 68
For the Year Ended December 31, 2012
Foreign
currency
translation
adjustments
Unrealized
gain on
available-
for-sale
securities Total
Balance at December 31, 2011 ................................................................ $ (72) $ — $ (72)
Other comprehensive income (loss) before reclassifications ............. 46 — 46
Amounts reclassified from accumulated other comprehensive
income (loss) .................................................................................. —— —
Balance at December 31, 2012 ................................................................ $ (26) $ — $ (26)
Income taxes were not provided for foreign currency translation items as these are considered indefinite investments
in non-U.S. subsidiaries.
14. Operating Segments and Geographic Region
Our operating segments are consistent with our internal organizational structure, the manner in which our operations
are reviewed and managed by our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), the manner
in which we assess operating performance and allocate resources, and the availability of separate financial information.
Currently, we conduct our business through three operating segments: Activision, Blizzard and Distribution (see Note 1 of the
Notes to Consolidated Financial Statements). We do not aggregate operating segments.
The CODM reviews segment performance exclusive of the impact of the change in deferred revenues and related cost
of sales with respect to certain of our online-enabled games, stock-based compensation expense, restructuring expense,
amortization of intangible assets as a result of purchase price accounting, impairment of goodwill and intangible assets, and
expenses related to the Purchase Transaction and related debt financings. The CODM does not review any information regarding
total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto. Information on the
operating segments and reconciliations of total net revenues and total segment operating income to consolidated net revenues
from external customers and consolidated income before income tax expense for the years ended December 31, 2013, 2012, and
2011 are presented below (amounts in millions):