Blizzard 2005 Annual Report Download - page 86

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In฀the฀event฀that฀any฀person฀or฀group฀acquires฀15%฀or฀more฀of฀our฀outstanding฀common฀stock฀each฀holder฀of฀a฀right฀(other฀than฀such฀person฀or฀members฀of฀such฀group)฀
will฀ thereafter฀ have฀ the฀ right฀ to฀ receive฀ upon฀ exercise฀ of฀ such฀ right,฀ in฀ lieu฀ of฀ shares฀ of฀ Series฀ A฀ Junior฀ Preferred฀ Stock,฀ the฀ number฀ of฀ shares฀ of฀ common฀ stock฀ of฀
Activision฀having฀a฀value฀equal฀to฀two฀times฀the฀then฀current฀exercise฀price฀of฀the฀right.฀If฀we฀are฀acquired฀in฀a฀merger฀or฀other฀business฀combination฀transaction฀after฀a฀
person฀has฀acquired฀15%฀or฀more฀of฀our฀common฀stock,฀each฀holder฀of฀a฀right฀will฀thereafter฀have฀the฀right฀to฀receive฀upon฀exercise฀of฀such฀right฀a฀number฀of฀the฀acquiring฀
company’s฀common฀shares฀having฀a฀market฀value฀equal฀to฀two฀times฀the฀then฀current฀exercise฀price฀of฀the฀right.฀For฀persons฀who,฀as฀of฀the฀close฀of฀business฀on฀April฀
18,฀2000,฀beneficially฀own฀15%฀or฀more฀of฀the฀common฀stock฀of฀Activision,฀the฀Rights฀Plan฀“grandfathers”฀their฀current฀level฀of฀ownership,฀so฀long฀as฀they฀do฀not฀pur-
chase฀additional฀shares฀in฀excess฀of฀certain฀limitations.
We฀may฀redeem฀the฀rights฀for฀$.01฀per฀right฀at฀any฀time฀until฀the฀first฀public฀announcement฀of฀the฀acquisition฀of฀beneficial฀ownership฀of฀15%฀of฀our฀common฀stock.฀At฀any฀
time฀after฀a฀person฀has฀acquired฀15%฀or฀more฀(but฀before฀any฀person฀has฀acquired฀more฀than฀50%)฀of฀our฀common฀stock,฀we฀may฀exchange฀all฀or฀part฀of฀the฀rights฀for฀
shares฀of฀common฀stock฀at฀an฀exchange฀ratio฀of฀one฀share฀of฀common฀stock฀per฀right.฀The฀rights฀expire฀on฀April฀18,฀2010.
16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The฀components฀of฀accumulated฀other฀comprehensive฀income฀(loss)฀were฀as฀follows฀(amounts฀in฀thousands):
Foreign
Currency
Unrealized
Appreciation
(Depreciation)
on Investments
Accumulated
Other
Comprehensive
Income (Loss)
Balance,฀March฀31,฀2004 $ 9,864 $ 97 $ 9,961
Comprehensive฀income฀(loss) 4,974 (3,317) 1,657
Balance, March 31, 2005 $ 14,838 $ (3,220) $ 11,618
The฀amounts฀above฀are฀shown฀net฀of฀taxes.฀The฀income฀taxes฀related฀to฀other฀comprehensive฀income฀were฀not฀significant,฀as฀income฀taxes฀were฀not฀provided฀for฀foreign฀
currency฀translation฀items฀as฀these฀are฀considered฀indefinite฀investments฀in฀non-U.S.฀subsidiaries.
17. SUPPLEMENTAL CASH FLOW INFORMATION
Non-cash฀investing฀and฀financing฀activities฀and฀supplemental฀cash฀flow฀information฀are฀as฀follows฀(amounts฀in฀thousands):
Year ended March 31, 2005 2004 2003
Non-cash฀investing฀and฀financing฀activities:
Subsidiaries฀acquired฀with฀common฀stock $ 1,191 $ 3,246 $ 10,861
Adjustment—prior฀period฀purchase฀allocation (2,384) — —
Issuance฀of฀options฀and฀common฀stock฀warrants —— 2,184
Stock฀offering฀costs —— 781
Change฀in฀unrealized฀appreciation฀(depreciation)฀on฀short-term฀investments (3,317) (37) 134
Supplemental฀cash฀flow฀information:
Cash฀paid฀for฀income฀taxes $ 12,178 $ 10,463 $ 5,491
Cash฀received฀for฀interest,฀net 10,543 6,213 7,804
page 85
Activision, Inc. — 2005 Annual Report