Blizzard 2009 Annual Report Download - page 61
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Estimated
useful
life
Intangibleassets:
Licenseagreements..............................................................
310years
207
Developedsoftware..............................................................
12years
68
Gameengines................................................................
25years
128
Internallydevelopedfranchises................................
1112years
1,124
Retailcustomerrelationships................................................
<1year
40
Favorableleases................................................................
14years
5
Distributionagreements........................................................
4years
17
Activisiontradename...........................................................
Indefinite
385
Goodwill...............................................................................
Indefinite
7,044
Longtermliabilities................................................................
(24)
Deferredtaxliability................................................................
(743)
Totalconsideration...............................................................
$9,919
GoodwillarisesfromtheBusinessCombinationduetotheacquiredworkforceofActivision,Inc.,
andtheexpectedsynergiesfromtheBusinessCombination.
ThefollowingtablesummarizesunauditedproformafinancialinformationassumingtheBusiness
Combinationhadoccurredatthebeginningoftheperiodspresented.Thisproformafinancialinformation
isforinformationalpurposesonlyanddoesnotreflectanyoperatingefficienciesorinefficiencieswhich
mayresultfromtheBusinessCombinationandthereforeisnotnecessarilyindicativeofresultsthatwould
havebeenachievedhadthebusinessesbeencombinedduringtheperiodspresented(amountsinmillions,
exceptpersharedata):
Fortheyears
ended
December31,
2008
2007
Proformanetrevenues................................................................
$4,336
$3,957
Proformanetincome(loss)................................................................
(111)
260
Proformanetincome(loss)pershare
basic................................................................................................
(0.08)
0.20
diluted................................................................................................
(0.08)
0.19
ComparativePeriod—FollowingtheconsummationoftheBusinessCombination,thehistorical
financialstatementsofActivisionBlizzardforperiodspriortotheconsummationoftheBusiness
CombinationarethoseofVivendiGames.Activision,Inc.’sbusinesseswereincludedinActivision
Blizzard’sfinancialstatementsforallperiodssubsequenttotheconsummationoftheBusiness
Combinationonly.
ThehistoricalfinancialstatementsofVivendiGamescomprisedVivendiGames,Inc.andits
subsidiaries,aswellasUniversalInteractive,Inc.(“UI”),whichhadhistoricallybeenunderthecommon
controlofVivendi.During2006,VivenditransferredUItoVivendiGames,atwhichtimeUIbecamea
whollyownedsubsidiaryofVivendiGames.
VivendiGames’shareholders’equityrepresentsthedifferencebetweentheidentifiableassetsand
liabilitiesoftheseentitiesunderVivendiGames’controlandincludesthenettransfersbetweenVivendi
GamesandVivendiandVivendi’saffiliatedcompanies,underacashmanagementpoolagreement.The
consolidatedstatementsofoperationsandconsolidatedstatementsofchangesinshareholders’equity
includecertainexpensesforcorporateservicesandoverheadthatareallocatedfromortoVivendiandits
affiliatedcompanies(seeNote23ofthenotestoconsolidatedfinancialstatements).Theseexpenseshave
beenallocatedbasedonthespecificnatureoftheexpenseand/oraformula,whichmanagementbelieves
reasonablyallocatesexpensestoorfromVivendiGames;however,suchamountsmayhavebeendifferent
hadVivendiGamesoperatedasaseparatestandaloneentityduringperiodspresented.