Page 203 - 2012 Annual Report

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VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
I - 2012 FINANCIAL REPORT
SECTION 5 TREASURY AND CAPITAL RESOURCES
5.5. FINANCING OF SUBSIDIARIES
Excluding primarily Activision Blizzard and Maroc Telecom, Vivendi SA
centralizes daily cash surpluses (cash pooling) of all controlled entities (a)
that are not subject to local regulations restricting the transfer of financial
assets or (b) that are not subject to other contractual agreements. In
particular, the increase to a 100% ownership interest in SFR on June 16,
2011 (please refer to Note 2.5 to the Consolidated Financial Statements
for the year ended December 31, 2012), has enabled Vivendi SA to
centralize all of SFR’s cash surpluses on a daily basis from July 1, 2011
through a cash pooling account.
Alternatively, in particular at Activision Blizzard and Maroc Telecom, cash
surpluses are not pooled by Vivendi SA but rather, as the case may be,
distributed as dividends when they are not used to finance investments
of the relevant subsidiaries, as common stock repurchases or to redeem
borrowings used to finance their investments. Regarding Activision
Blizzard, up until July 9, 2013, the distribution of any dividend by Activision
Blizzard requires the affirmative vote of a majority of the independent
directors if Activision Blizzard’s Financial Net Debt, after giving effect to
such dividend, exceeds $400 million.
Activision Blizzard’s net cash position amounted to €3,290 million
(€2,714 million as of December 31, 2011). This amount notably includes
US treasuries and government agency securities having a maturity
exceeding three months for $387 million (compared to $344 million as
of December 31, 2011), classified as short-term financial assets in the
Consolidated Statement of Financial Position. In addition, cash and cash
equivalents also include cash held outside the United States by Activision
Blizzard’s non-American subsidiaries for €1,936 million (compared
to €1,266 million as of December 31, 2011). The funds held by foreign
subsidiaries are generally subject to US income taxation on repatriation
to the United States.
Maroc Telecom Group’s Financial Net Debt amounted to €638 million
(€617 million as of December 31, 2011).