Avid 2008 Annual Report Download - page 88

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83
reporting for 2007 and 2008 will be changed to conform to the new segment reporting model. The Company’s full
assessment of the segment reporting model to be used starting in 2009 is not yet complete.
The following is a summary of the Company’s revenues and contribution margin by reportable segment for the years
ended December 31, 2008, 2007 and 2006 and a reconciliation of segment contribution margin to total consolidated
operating loss for each period (in thousands):
Year Ended December 31,
2008 2007 2006
Revenues:
Professional Video $438,420 $ 485,186 $ 479,383
Audio 293,195 318,993 304,362
Consumer Video 113,286 125,391 126,833
Total revenues $844,901 $ 929,570 $ 910,578
Contribution Margin:
Professional Video $40,917 $ 66,502 $ 79,315
Audio 40,541 55,710 67,833
Consumer Video (16,135) 6,552 2,799
Segment contribution margin 65,323 128,764 149,947
Less unallocated costs and expenses:
Common costs and operating expenses (85,219) (79,523 ) (76,046)
Amortization of acquisition-related intangible assets (20,380) (30,621 ) (35,653)
Impairment of goodwill and intangible assets (129,972) — (53,000)
Stock-based compensation (14,201) (15,949 ) (16,604)
Restructuring costs, net (27,288) (13,688 ) (2,613)
In process research and development
—
— (879)
Gain on sale of assets 13,287 — —
Legal settlements
—
(1,602 ) —
Consolidated operating loss $ (198,450) $ (12,619 ) $ (34,848)
Certain assets, including cash and marketable securities and acquisition-related intangible assets, are not included in
the assets of the reportable segments because management does not consider them in evaluating operating results of
the segments. The following table reconciles assets for reportable segments to total consolidated amounts as of
December 31, 2008, 2007 and 2006 (in thousands):
2008 2007 2006
Assets:
Professional Video $ 166,758 $ 205,835 $ 214,949
Audio 89,942 95,679 93,832
Consumer Video 35,673 47,968 53,955
Total assets for reportable segments 292,373 349,482 362,736
Unallocated amounts:
Cash, cash equivalents and marketable securities 147,694 224,460 172,107
Acquisition-related intangible assets and goodwill 263,518 432,011 462,191
Total assets $ 703,585 $ 1,005,953 $ 997,034