Blizzard 2009 Annual Report Download - page 102
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ACTIVISIONBLIZZARD,INC.ANDSUBSIDIARIES
FortheYearsEndedDecember31,2009and2008
GAAPtoNonGAAPReconciliations
SegmentInformationComparableBasisSegmentOperatingIncome(Loss)(Amountsinmillions)
Segments/
YearendedDecember31,2009
Activision(i) Blizzard(ii) Distribution(iii) Core(iv) ConsolidatedTotal
Segmentoperatingincome(loss) 663$ 555$ 16$ 1,234$ 1,234$
ReconciliationtoGAAPconsolidatedoperatingincome(loss)
Neteffectfromdeferralofnetrevenuesandrelatedcostofsales (383)
Stockbasedcompensationexpense (154)
Restructuringexpenses (23)
Amortizationofintangibleassetsandpurchasepriceaccountingrelatedadjustments (259)
Impairmentofintangibleassets (409)
Integrationandtransactioncosts (24)
Other(v) (8)
Consolidatedoperatingincome(loss)(GAAP) (26)$
NonGAAPComparableBasisSegmentOperatingIncome(Loss) 663$ 555$ 16$ 1,234$
Segments/
YearendedDecember31,2008
Activision(i) Blizzard(ii) Distribution(iii) Core(iv) ConsolidatedTotal
Segmentoperatingincome(loss)(VGJan.1Dec31,ActivisionJuly10Dec31) 307$ 704$ 22$ 1,033$ 1,033$
ReconciliationtoGAAPconsolidatedoperatingincome(loss)
Neteffectfromdeferralofnetrevenuesandrelatedcostofsales (496)
Stockbasedcompensationexpense (90)
Restructuringexpenses (93)
Amortizationofintangibleassetsandpurchasepriceaccountingrelatedadjustments (292)
Integrationandtransactioncosts (29)
Other(v) (266)
Consolidatedoperatingincome(loss)(GAAP) (233)$
IncludingActivision,Inc.priorperiodfromJuly1toJuly9,2008
Segmentoperatingincome(loss) (10) 1 (9) (9)$
Reconciliationtoconsolidatedoperatingincome(loss)
Stockbasedcompensationexpense (3)
Integrationandtransactioncosts (38)
Consolidatedoperatingincome(loss) (50)$
IncludingActivision,Inc.priorperiodsforthesixmonthsendedJune30,2008
Segmentoperatingincome(loss) 172 4 176 176$
Reconciliationtoconsolidatedoperatingincome(loss)
Stockbasedcompensationexpense (29)
Integrationandtransactioncosts (12)
Consolidatedoperatingincome(loss) 135$
NonGAAPComparableBasisSegmentOperatingIncome(Loss) 469$ 704$ 27$ 1,200$
ChangeinComparableBasisYearEndedDecember31,2009vs.2008 3%
(i)ActivisionPublishing(“Activision”)publishesinteractiveentertainmentsoftwareandperipherals,whichincludestheActivisionbusinessconductedbyActivision,Inc.priortothe
businesscombinationandcertainstudios,assets,andtitlespreviouslyincludedinVivendiGames’“SierraEntertainment”operatingsegmentpriortothebusinesscombination.
(ii)BlizzardBlizzardEntertainment,Inc.anditssubsidiaries("Blizzard")publishestraditionalgamesandonlinesubscriptionbasedgamesintheMMORPGcategory.
(iii)ActivisionBlizzardDistribution("Distribution")distributesinteractiveentertainmentsoftwareandhardwareproducts.
(iv)Activision,BlizzardandDistributionarereferredtocollectivelyasActivisionBlizzardInc.’scoreoperations(“Core”).
(v)OtherrepresentsNonCoreactivities,whicharehandledbycertainfunctionaldepartmentsofourActivisionsegmentandareinsignificanttoActivisionBlizzard'sfinancialconditionand
resultsofoperations.PriortoJuly1,2009,weoperatedafourthoperatingsegment,NonCore,whichrepresentedlegacyVivendiGames'("VG")divisionsorbusinessunitsthatthe
companyhadexited,divested,orwounddownaspartofourrestructuringandintegrationeffortsasaresultoftheBusinessCombination.AsofJuly1,2009,inlightofthedecreasing
significanceofNonCoreactivities,weceasedthemanagementofNonCoreasaseparateoperatingsegmentandconsequentlywearenolongerprovidingseparateoperatingsegment
disclosurewithrespecttoNonCoreandhavereclassifiedourpriorperiod'ssegmentpresentationsothatitconformstothecurrentperiod'spresentation.