Blizzard 2008 Annual Report Download - page 114

Download and view the complete annual report

Please find page 114 of the 2008 Blizzard 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 116

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIE
S
For the twelve months ended December 31, 2008 and 2007
GAAP to Non-GAAP Reconciliation
s
Segment Information - Comparable Basis Segment Operating Income (Loss) (amounts in millions
)
Segments
/
Twelve months ended December 31, 2008 Activision (i) Blizzard (ii) Distribution (iii) Core (iv) Non-Core (v) Consolidated Total
Segment operating income (loss) (VG Jan. 1-Dec. 31, Activision July 10-Dec. 31) 307$ 704$ 22$ 1,033$ (266)$ 767$
Reconciliation to GAAP consolidated operating income (loss)
- Net effect from deferral of net revenues and cost of sales (496)
- Stock-based compensation (90)
- Restructuring expenses (93)
- Amortization of intangible assets and purchase price accounting related adjustments (292)
- Integration and transaction costs (29)
Consolidated operating income (loss) (GAAP) (233)$
Comparable Presentation Adjustments
:
Including Activision, Inc. prior periods from July 1 to July 9, 200
8
Segment operating income (loss) (10) - 1 (9) (9)
Reconciliation to consolidated operating income (loss)
- Stock-based compensation (3)
- Integration and transaction costs (38)
Consolidated operating income (loss) (50)$
Including Activision, Inc. prior periods for the six months ended June 30, 200
8
Segment operating income (loss) 172 - 4 176 176
Reconciliation to consolidated operating income (loss)
- Stock-based compensation (29)
- Integration and transaction costs (12)
Consolidated operating income (loss) 135$
Non-GAAP Comparable Basis Segment Operating Income (Loss
)
469$ 704$ 27$ 1,200$
Segments
/
Twelve months ended December 31, 2007 Activision (i) Blizzard (ii) Distribution (iii) Core (iv) Non-Core (v) Consolidated Total
Segment operating income (loss) (VG only) (13)$ 568$ -$ 555$ (198)$ 357$
Reconciliation to GAAP consolidated operating income (loss)
- Net effect from deferral of net revenues and cost of sales (38)
- Stock-based compensation (137)
- Restructuring expenses 1
- Amortization of intangible assets and purchase price accounting related adjustments (4)
Consolidated operating income (loss) (GAAP) 179$
Comparable Presentation Adjustment
:
Including Activision, Inc. prior periods for the twelve months ende
d
December 31, 2007
Segment operating income (loss) 424 - 15 439 439
Reconciliation to consolidated operating income (loss)
- Stock-based compensation (43)
Consolidated operating income (loss) 396$
Non-GAAP Comparable Basis Segment Operating Income (Loss) 411$ 568$ 15$ 994$
- Change in comparable basis -- twelve months ended December 31, 2008 vs. 200
7
21%
(v) Activision Blizzard’s non-core exit operations (“Non-Core”) -- which consists of legacy divisions or business units that the company has exited or is winding down as part of our restructuring and
integration efforts as a result of the business combination.
(i) Activision Publishing (“Activision”) -- which consists of the historical business of Activision, Inc. publishing interactive entertainment software and peripherals, and certain studios, assets, and titles
previously included in Vivendi Games’ historical “Sierra” operating segment.
(ii) Blizzard -- which consists of the business of Blizzard Entertainment, Inc. and its subsidiaries publishing traditional games and online subscription-based games in the MMOG category.
(iii) Distribution -- which consists of the distribution of interactive entertainment software and hardware products.
(iv) Activision, Blizzard and Distribution are referred to collectively as Activision Blizzard Inc.’s core operations (“Core”).
100