This excerpt taken from the ATVI 8-K filed Nov 5, 2008.
Item 8.01. Other Events.
In the third quarter of 2008, the Company changed the manner in which it recognizes revenue associated with sales of The Burning Crusade expansion pack, released in January 2007 for its massively, multi-player, online game, World of Warcraft. Prior to the Business Combination, Vivendi Games determined that the sale of an expansion pack was a separate deliverable with standalone value apart from the World of Warcraft license and the subscription to the online game. Pursuant to Emerging Issues Task Force No. 00-21 Revenue Arrangements with Multiple Deliverables (EITF No. 00-21), Vivendi Games recognized revenue from the sale of an expansion pack upon delivery because it had standalone value and there was objective and reliable evidence of fair value for the subscription service. As a result of the consummation of the Business Combination the Company changed its weighting of the factors considered in determining if sales of The Burning Crusade expansion pack have standalone value. After considering the intended functionality of the expansion pack and the necessity of the World of Warcraft license and subscription service to the functionality of the expansion pack, the Company determined that it is preferable to conclude that the expansion packs do not have standalone value and to account for fees from sales of expansion packs over the remaining estimated useful life of the customer. This method recognizes revenue over the period during which the customer is expected to utilize the intended full functionality of the expansion pack. The Company believes that it is preferable to recognize revenue from sales of expansion packs over the estimated remaining useful life of the customer, because this is consistent with the accounting for the World of Warcraft license and the evolution of accounting for on-line enabled video games in the console industry. In accordance with Statement of Financial Accounting Standards (SFAS) No. 154, Accounting Changes and Error Corrections ("SFAS No. 154"), this change has been applied retrospectively to our consolidated financial statements for all prior periods.
In addition to the above, the Company also identified certain ancillary fees charged to World of Warcraft subscribers that had been recognized immediately rather than deferred over the estimated remaining subscription life. Accordingly, the Company has also retrospectively adjusted subscription revenues for the year ended December 31, 2007, and such adjustments are immaterial to all periods presented.
The historical financial information contained in this Current Report has not been updated to reflect events or occurrences after the date such information was originally prepared, except for matters relating specifically to the recasting of the presentation described above.
This excerpt taken from the ATVI 8-K filed Sep 5, 2008.
Item 8.01 Other Events.
As previously reported, Activision Blizzard, Inc. (the Company) announced that its board of directors approved a two-for-one stock split of its outstanding shares of common stock as of the close of business on August 25, 2008 to be effected in the form of a stock dividend payable on September 5, 2008.
In accordance with Rule 416 promulgated under the Securities Act of 1933, as amended (the Securities Act), the following registration statements filed by the Company under the Securities Act shall be deemed to register, in addition to the shares specifically included therein, such additional shares of the Companys common stock issuable with respect to those shares pursuant to stock splits, stock dividends and similar transactions occurring after the effective date of such registration statements, including the two-for-one stock split payable on September 5, 2008: Registration Statements (File Nos. 033-48411; 033-63638; 033-91074; 333-06130; 333-06054; 333-40727; 333-61573; 333-85383; 333-72014; 333-100114; 333-100115; 333-103323; 333-106487; and 333-111131) on Form S-8.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.