Blizzard 2009 Annual Report Download - page 22

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10
FortheyearsendedDecember31,
2008
2007
Increase/
(decrease)
2009v2008
Increase/
(decrease)
2008v2007
%change
2009v2008
%change
2008v2007
Proformasegmentnetrevenues:
Activision............................................................
$3,279
$2,472
$(123)
$807
(4)%
33%
Blizzard...............................................................
1,343
1,107
(147)
236
(11)
21
Distribution.........................................................
410
408
13
2
3
—
Proformaoperatingsegmentnetrevenuetotal......
5,032
3,987
(257)
1,045
(5)
26
Reconciliationtoproformaconsolidatednet
revenues:
Neteffectfromdeferralofnetrevenues.............
(713)
(40)
216
(673)
30
NM
Other*................................................................
17
10
(16)
7
(94)
70
Proformaconsolidatednetrevenues......................
$4,336
$3,957
$(57)
$379
(1)%
10%
Proformasegmentincome(loss)from
operations:
Activision............................................................
$469
$411
$194
$58
41%
14%
Blizzard...............................................................
704
568
(149)
136
(21)
24
Distribution.........................................................
27
15
(11)
12
(41)
80
Proformaoperatingsegmentincomefrom
operationstotal....................................................
1,200
994
34
206
3
21
Reconciliationtoproformaconsolidated
operatingincome(loss):
Neteffectfromdeferralofnetrevenues
andrelatedcostofsales................................
(496)
(38)
113
(458)
23
NM
Stockbasedcompensationexpense....................
(181)
(225)
27
44
15
20
Restructuring......................................................
(93)
1
70
(94)
75
NM
Amortizationofintangibleassetsand
purchasepriceaccountingrelated
adjustments.....................................................
(376)
(380)
117
4
31
1
Impairmentofintangibleassets..........................
—
—
(409)
—
—
—
Integrationandtransactioncosts.........................
(42)
4
18
(46)
43
NM
Other*................................................................
(266)
(198)
258
(68)
97
(34)
Totalproformaconsolidatedoperating
income(loss).......................................................
$(254)
$158
$228
$(412)
90%
(261)%
(*) RepresentsNonCoreactivities,whicharelegacyVivendiGames’divisionsorbusinessunitsthat
wehaveexited,divestedorwounddownaspartofourrestructuringandintegrationeffortsasa
resultoftheBusinessCombination.PriortoJuly1,2009,NonCoreactivitiesweremanagedasa
standaloneoperatingsegment;however,inlightoftheminimalactivitiesandinsignificanceof
NonCoreactivities,asofthatdateweceasedtheirmanagementasaseparateoperatingsegment
andconsequently,wearenolongerprovidingseparateoperatingsegmentdisclosureandhave
reclassifiedourpriorperiods’segmentpresentationsothatitconformstothecurrentperiod’s
presentation.
Onaproformaoperatingsegmentbasis,ouroperatingmarginfortheyearsendedDecember31,
2009,2008and2007was26%,24%and25%,respectively.Highlightsandanalysisofourindividual
segmentnetrevenuesandincomefromoperationsareasfollows:
ProformaActivisionSegmentNetRevenues
Activision’snetrevenuesdecreasedfortheyearendedDecember31,2009ascomparedto2008
primarilydueto:
• Theprolongedweaknessintheeconomyadverselyimpactingthecasualgameandmusic
genresandthestrongerperformanceoftheGuitarHerofranchisein2008ascomparedto
2009;and