Blizzard 2012 Annual Report Download - page 84

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in “General and administrative expenses” at December 31, 2012 and 2011 and 2010, respectively; a pretax realized gain of $2 million, loss of
$7 million and loss of $2 million were recognized in “Investment and other income, net” at December 31, 2012 2011, and 2010, respectively.
Others
Activision Blizzard has entered into various transactions and agreements, including cash management services, investor agreement,
tax sharing agreement, and music royalty agreements with Vivendi and its subsidiaries and affiliates. Effective July 23, 2010, we terminated our
unsecured credit agreement with Vivendi, the lender, which provided for a revolving credit facility of up to $475 million. None of these services,
transactions and agreements with Vivendi and its subsidiaries and affiliates is material either individually or in the aggregate to the consolidated
financial statements as a whole.
In addition, we are party to a number of agreements with Universal Music Group, a wholly owned subsidiary of Vivendi, and its
affiliates. These agreements pertain to the licensing of master recordings and compositions for our games and for marketing and promotional
purposes. We expensed and paid an aggregate of $2 million, $5 million and $12 million in royalties and other fees (including fees relating to the
marketing of artists whose music was licensed for our games) to Universal Music Group and its affiliates for those uses during the years ended
December 31, 2012, 2011 and 2010, respectively. Royalty amounts due to Universal Music Group and its affiliates are not material at
December 31, 2012, 2011 and 2010.
23. Recently Issued Accounting Pronouncements
Indefinite-lived intangible assets impairment
In July 2012, the FASB issued an update to the authoritative guidance related to testing indefinite-lived intangible assets for
impairment. This update gives an entity the option to first consider certain qualitative factors to determine whether the existence of events and
circumstances indicates that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount as a
basis for determining whether it is necessary to perform the quantitative impairment test. This update is effective for the indefinite-lived
intangible asset impairment test performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of this
guidance does not have a material impact on our consolidated financial statements.
Balance sheet offsetting disclosures
In December 2011, the FASB issued authoritative guidance on the disclosure of financial instruments and derivative instruments that
are either offset or subject to an enforceable master netting arrangement or similar agreement and should be applied retrospectively for all
comparative periods presented for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. The
adoption of this guidance does not have a material impact on our consolidated financial statements.
Reclassification of accumulated other comprehensive loss
In February 2013, the FASB issued an accounting standards update requiring new disclosures about reclassifications from
accumulated other comprehensive loss to net income. These disclosures may be presented on the face of the statements or in the notes to the
consolidated financial statements. The standards update is effective for fiscal years beginning after December 15, 2012. The adoption of this
guidance does not have a material impact on our consolidated financial statements.
24. Subsequent events
Cash Dividend. On February 7, 2013, our Board of Directors declared a cash dividend of $0.19 per common share payable on
May 15, 2013 to shareholders of record at the close of business on March 20, 2013.