Blizzard 2009 Annual Report Download - page 50
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VivendiGamesdeemedtobetheacquirer.ThehistoricalfinancialstatementsofActivisionBlizzardprior
toJuly10,2008arethoseofVivendiGames.
InconnectionwiththeBusinessCombination,weissuedapproximately717millionsharesof
commonstocktoVGACLLCincludingapproximately126millionsharesofcommonstockpurchasedby
Vivendifor$1.7billion.ImmediatelyfollowingtheconsummationoftheBusinessCombination,VGAC
owned54%ofActivisionBlizzard’sissuedandoutstandingcommonstock.Further,inaccordancewiththe
termsoftheBusinessCombinationAgreement,onJuly16,2008,ActivisionBlizzardcommencedatender
offertopurchaseupto293millionsharesofitscommonstockatapriceof$13.75pershare.Thetender
offerexpiredonAugust13,2008.Wepurchased171,832sharesofourcommonstockasaresultofthe
tenderoffer.Theseshareswereaccountedforusingthetreasurymethodandwereretiredandcancelled.
ThecommonstockofActivisionBlizzardistradedonNASDAQunderthetickersymbol
“ATVI.”Vivendiownedapproximately57%ofActivisionBlizzard’soutstandingcommonstockat
December31,2009.
WemaintainsignificantoperationsintheUnitedStates,Canada,theUnitedKingdom(“U.K.”),
France,Germany,Italy,Spain,Australia,Sweden,SouthKorea,Norway,Denmark,China,andthe
Netherlands.
ActivisionBlizzard’snoncoreexitoperations
ActivisionBlizzard’snoncoreexitoperations(“Other”or“NonCore”)representlegacyVivendi
Games’divisionsorbusinessunitsthatwehaveexited,divestedorwounddownaspartofourrestructuring
andintegrationeffortsasaresultoftheBusinessCombinationdescribedabove,butthatdonotmeetthe
criteriaforseparatereportingofdiscontinuedoperations.PriortoJuly1,2009,NonCoreactivitieswere
managedasastandaloneoperatingsegment;however,inlightoftheminimalactivitiesandinsignificance
ofNonCoreactivities,asofthatdateweceasedtheirmanagementasaseparateoperatingsegmentand
consequentlywearenolongerprovidingseparateoperatingsegmentdisclosureandhavereclassifiedour
priorperiods’segmentpresentationsothatitconformstothecurrentperiod’spresentation.
2.Summaryofsignificantaccountingpolicies
BasisofConsolidationandPresentation
Theaccompanyingconsolidatedfinancialstatementsincludetheaccountsandoperationsofthe
Company.Allintercompanyaccountsandtransactionshavebeeneliminated.Theconsolidatedfinancial
statementshavebeenpreparedinconformitywithaccountingprinciplesgenerallyacceptedintheUnited
StatesofAmerica(“U.S.GAAP”).Thepreparationoftheconsolidatedfinancialstatementsinconformity
withU.S.GAAPrequiresmanagementtomakeestimatesandassumptionsthataffecttheamountsreported
intheconsolidatedfinancialstatements.Actualresultscoulddifferfromtheseestimatesandassumptions.
TheprioryearconsolidatedbalancesheetatDecember31,2008andconsolidatedstatementof
cashflowsfortheyearendedDecember31,2008havebeenadjustedtocorrectimmaterialerrorsrelatedto
theeliminationofintercompanyreceivablesandpayables.Thecorrectionsreducedtheaccountsreceivable
andaccountspayablelineitemsintheDecember31,2008consolidatedbalancesheetby$236million,
whichcorrespondinglyimpactedthechangeinaccountsreceivableandaccountspayableinthe
consolidatedstatementofcashflowsfortheyearendedDecember31,2008by$236million.These
correctionshadnoimpactonnetincome,earnings(loss)pershare,workingcapitalornetcashprovidedby
operating,investingandfinancingactivities.
Certainreclassificationshavebeenmadetoprioryearamountstoconformtothecurrentperiod
presentation.
TheCompanyconsiderseventsortransactionsthatoccurafterthebalancesheetdate,butbefore
thefinancialstatementsareissuedtoprovideadditionalevidencerelativetocertainestimatesortoidentify
mattersthatrequireadditionaldisclosures.