Activision 2012 Annual Report Download - page 51

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33
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in millions, except per share data)
For the Years Ended December 31,
2012
2011
2010
Net revenues
Product sales ..................................................................................................................................................................
$3,620
$3,257
$3,087
Subscription, licensing, and other revenues ..................................................................................................................
1,236
1,498
1,360
Total net revenues ..............................................................................................................................................................
4,856
4,755
4,447
Costs and expenses
Cost of sales—product costs .........................................................................................................................................
1,116
1,134
1,350
Cost of sales—online subscriptions ..............................................................................................................................
263
255
250
Cost of sales—software royalties and amortization .....................................................................................................
194
218
338
Cost of sales—intellectual property licenses ................................................................................................................
89
165
197
Product development .....................................................................................................................................................
604
629
626
Sales and marketing ......................................................................................................................................................
578
545
516
General and administrative ...........................................................................................................................................
561
456
375
Impairment of intangible assets ....................................................................................................................................
—
—
326
Restructuring .................................................................................................................................................................
—
25
—
Total costs and expenses ....................................................................................................................................................
3,405
3,427
3,978
Operating income ...............................................................................................................................................................
1,451
1,328
469
Investment and other income (expense), net ......................................................................................................................
7
3
23
Income before income tax expense ....................................................................................................................................
1,458
1,331
492
Income tax expense ............................................................................................................................................................
309
246
74
Net income..........................................................................................................................................................................
$1,149
$1,085
$418
Earnings per common share
Basic ..............................................................................................................................................................................
$1.01
$0.93
$0.34
Diluted ...........................................................................................................................................................................
$1.01
$0.92
$0.33
Weighted-average number of shares outstanding
Basic ..............................................................................................................................................................................
1,112
1,148
1,222
Diluted ...........................................................................................................................................................................
1,118
1,156
1,236
Dividends per common share .............................................................................................................................................
$0.18
$0.165
$0.15
The accompanying notes are an integral part of these Consolidated Financial Statements.