Blizzard 2009 Annual Report Download - page 48

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36
ACTIVISIONBLIZZARD,INC.ANDSUBSIDIARIES
CONSOLIDATEDSTATEMENTSOFCASHFLOWS
(Amountsinmillions)
Fortheyearsended
December31,
2009
2008
2007
Cashflowsfromoperatingactivities:
Netincome(loss)................................................................................................................................
$113
$(107)
$227
Adjustmentstoreconcilenetincome(loss)tonetcashprovidedbyoperatingactivities:
Deferredincometaxes...........................................................................................................................
(256)
(430)
(77)
Impairment(seeNotes8and12)................................................................................................
409
26
—
Depreciationandamortization................................................................................................
347
385
63
Unrealized(gain)/lossonauctionratesecuritiesclassifiedastradingsecurities................................
(3)
7
—
UnrealizedlossonARSrightsfromUBS..............................................................................................
3
2
—
Lossondisposalofpropertyandequipment(seeNote8)................................................................
2
1
1
Amortizationandwriteoffofcapitalizedsoftwaredevelopmentcostsandintellectual
propertylicenses(1)...........................................................................................................................
281
176
54
Stockbasedcompensationexpense(2)................................................................................................
156
89
138
Excesstaxbenefitsfromstockoptionexercises....................................................................................
(79)
(21)
—
Changesinoperatingassetsandliabilities:
Accountsreceivable...............................................................................................................................
235
(428)
25
Inventories................................................................................................................................
21
(20)
7
Softwaredevelopmentandintellectualpropertylicenses................................................................
(308)
(181)
(102)
Otherassets................................................................................................................................
(110)
(165)
(6)
Deferredrevenues................................................................................................................................
503
726
79
Accountspayable................................................................................................................................
(18)
86
(12)
Accruedexpensesandotherliabilities................................................................................................
(113)
233
34
Netcashprovidedbyoperatingactivities................................................................................................
1,183
379
431
Cashflowsfrominvestingactivities:
Capitalexpenditures................................................................................................................................
(69)
(46)
(68)
Netproceedsfromdisposalofassets—restructuring(seeNote8).............................................................
—
9
—
CashacquiredthroughBusinessCombination,netofcashpaymentstoeffectacquisitions......................
—
1,120
—
Proceedsfromsaleofavailableforsaleinvestments................................................................
2
—
—
Proceedsfrommaturitiesofinvestments................................................................................................
44
—
—
Purchaseofshortterminvestments................................................................................................
(425)
—
—
Decreaseinrestrictedcash.........................................................................................................................
5
18
—
Netcashprovidedby(usedin)investingactivities....................................................................................
(443)
1,101
(68)
Cashflowsfromfinancingactivities:
Proceedsfromissuanceofcommonstocktoemployees................................................................
81
22
—
Repurchaseofcommonstockthroughtenderoffer....................................................................................
—
(2)
—
ReturnofcapitaltoVivendi.......................................................................................................................
—
(79)
—
IssuanceofadditionalcommonstockrelatedtotheBusinessCombination................................
—
1,731
—
Repurchaseofcommonstock.....................................................................................................................
(1,109)
(126)
—
SettlementofpayabletoVivendi................................................................................................
—
(79)
(371)
Excesstaxbenefitsfromstockoptionexercises.........................................................................................
79
21
—
Netcashprovidedby(usedin)financingactivities....................................................................................
(949)
1,488
(371)
Effectofforeignexchangeratechangesoncashandcashequivalents..........................................................
19
(72)
2
Netincrease(decrease)incashandcashequivalents.....................................................................................
(190)
2,896
(6)
Cashandcashequivalentsatbeginningofyear..............................................................................................
2,958
62
68
Cashandcashequivalentsatendofyear................................................................................................
$2,768
$2,958
$62
(1) Excludesdeferralandamortizationofstockbasedcompensationexpense.
(2) Includestheneteffectsofcapitalization,deferral,andamortizationofstockbasedcompensation
expense.
TheaccompanyingnotesareanintegralpartoftheseConsolidatedFinancialStatements.