Blizzard 2010 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2010 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 94

  • 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

32
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in millions, except per share data)
For the Years Ended December 31,
2010 2009 2008
Net revenues
Product sales .......................................................................................................................... $3,087 $3,080 $1,872
Subscription, licensing, and other revenues ........................................................................... 1,360 1,199 1,154
Total net revenues ...................................................................................................................... 4,447 4,279 3,026
Costs and expenses
Cost of sales—product costs .................................................................................................. 1,350 1,432 1,160
Cost of sales—massively multi-player online
role-playing game (“MMORPG”) ..................................................................................... 241 212 193
Cost of sales—software royalties and amortization ............................................................... 338 348 267
Cost of sales—intellectual property licenses ......................................................................... 197 315 219
Product development ............................................................................................................. 642 627 592
Sales and marketing ............................................................................................................... 520 544 464
General and administrative .................................................................................................... 364 395 271
Impairment of intangible assets ............................................................................................. 326 409 —
Restructuring.......................................................................................................................... — 23 93
Total costs and expenses ............................................................................................................ 3,978 4,305 3,259
Operating income (loss) ............................................................................................................. 469 (26) (233)
Investment and other income, net .............................................................................................. 2 3 18 46
Income (loss) before income tax expense (benefit) ................................................................... 492 (8) (187)
Income tax expense (benefit) ..................................................................................................... 74 (121) (80)
Net income (loss) ....................................................................................................................... $418 $113 $(107)
Earnings (loss) per common share
Basic ...................................................................................................................................... $0.34 $0.09 $(0.11)
Diluted ................................................................................................................................... $0.33 $0.09 $(0.11)
Weighted-average number of shares outstanding
Basic ...................................................................................................................................... 1,222 1,283 946
Diluted ................................................................................................................................... 1,236 1,311 946
Dividends per common share .................................................................................................... $0.15 $— $—
The accompanying notes are an integral part of these Consolidated Financial Statements.