Activision 2012 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2012 Activision annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

12
Consolidated Results
Net Revenues by Geographic Region
The following table details our consolidated net revenues by geographic region for the years ended December 31, 2012, 2011, and
2010 (amounts in millions):
For the Years ended December 31,
2012
2011
2010
Increase/
(decrease)
2012 v 2011
Increase/
(decrease)
2011 v 2010
% Change
2012 v 2011
% Change
2011 v 2010
Geographic region net revenues:
North America ...............................................
$2,436
$2,405
$2,409
$31
$(4)
1%
—%
Europe............................................................
1,968
1,990
1,743
(22)
247
(1)
14
Asia Pacific ....................................................
452
360
295
92
65
26
22
Consolidated net revenues ..................................
$4,856
$4,755
$4,447
$101
$308
2%
7%
The increase/(decrease) in deferred revenues recognized by geographic region for the years ended December 31, 2012, 2011, and 2010
was as follows (amounts in millions):
For the Years Ended December 31,
2012
2011
2010
Increase/
(Decrease)
2012 v 2011
Increase/
(Decrease)
2011 v 2010
Deferred revenues recognized by geographic region:
North America .................................................................................................
$(78)
$154
$(166)
$(232)
$320
Europe..............................................................................................................
(28)
104
(159)
(132)
263
Asia Pacific ......................................................................................................
(25)
8
(31)
(33)
39
Total impact on consolidated net revenues ..........................................................
$(131)
$266
$(356)
$(397)
$622
Consolidated net revenues from North America and Asia Pacific increased in 2012 as compared to 2011, primarily due to sales from
the Skylanders franchise (both from the launch of Skylanders Giants in the fourth quarter of 2012, and the full-year revenues from Skylanders
Spyro’s Adventure, which was launched in the fourth quarter of 2011), Diablo III and World of Warcraft: Mists of Pandaria. Sales of Diablo III
accounted for the majority of the year-over-year increase in net revenues for the Asia Pacific region. The increase in consolidated net revenues
from North America and Asia Pacific was partially offset by lower subscriptions revenues from World of Warcraft, lower catalog sales of Call of
Duty titles as well as other titles, and lower catalog revenues generated from World of Warcraft: Cataclysm and Starcraft II: Wings of Liberty,
which were released in 2010.
Consolidated net revenues from Europe decreased slightly in 2012 as compared to 2011, primarily due to lower subscriptions revenues
from World of Warcraft, lower catalog sales of Call of Duty titles as well as other titles, and lower catalog revenues generated from World of
Warcraft: Cataclysm and from Starcraft II: Wings of Liberty, which were released in 2010, and lower revenues from our Distribution segment.
The decrease was partially offset by sales from the Skylanders franchise (both from the launch of Skylanders Giants in the fourth quarter of 2012
and the full-year revenues from Skylanders Spyro’s Adventure, which was launched in the fourth quarter of 2011), Diablo III and World of
Warcraft: Mists of Pandaria.
Further, in Europe and certain countries in Asia Pacific, net revenues were also negatively impacted due to the fact that we published
titles for Lucas Arts in 2011, such as Lego Star Wars III, while no comparable title was published in 2012.
The decrease in deferred revenues recognized in all regions for the year ended December 31, 2012 as compared to 2011 was primarily
attributable to lower World of Warcraft subscription revenues, lower sales of Call of Duty digital downloadable content packs and catalogs titles,
and lower catalog sales of World of Warcraft: Cataclysm and Starcraft II: Wings of Liberty, as well as an increase in revenues deferred due to the
launch of both Diablo III and World of Warcraft: Mists of Pandaria. The decrease was partially offset by the recognition of the deferred revenues
from Call of Duty: Modern Warfare 3.
Consolidated net revenues from Europe and Asia Pacific increased in 2011 as compared to 2010, primarily due to the success of Call
of Duty catalog titles, stronger performance of downloadable content packs for Call of Duty: Black Ops and the release of World of Warcraft:
Cataclysm and StarCraft II: Wings of Liberty in 2010, all of which resulted in increased revenues recognized in 2011 as compared to 2010.