Blizzard 2010 Annual Report Download - page 57

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45
The Company’s allocation of the purchase price of Activision, Inc. is as follows (amounts in millions):
Amount
Working capital, excluding inventories ....................................................................... $1,192
Inventories ................................................................................................................... 221
Property and equipment ............................................................................................... 64
Deferred tax asset ........................................................................................................ 62
Other long term assets ................................................................................................. 129
Estimated useful
life
Intangible Assets:
License agreements ...................................................................... 3 - 10 years $207
Developed software ...................................................................... 1 - 2 years 68
Game engines ............................................................................... 2 - 5 years 128
Internally developed franchises .................................................... 11 - 12 years 1,124
Retail customer relationships ....................................................... < 1 year 40
Favorable leases ........................................................................... 1 - 4 years 5
Distribution agreements................................................................ 4 years 17
Activision trade name ................................................................... Indefinite 385
Goodwill ....................................................................................... Indefinite 7,044
Long term liabilities ......................................................................... (24)
Deferred tax liability ........................................................................ (743)
Total consideration ....................................................................... $9,919
Goodwill arises from the Business Combination due to the acquired work force of Activision, Inc., and the expected
synergies from the Business Combination.
The following table summarizes unaudited pro forma financial information assuming the Business Combination had
occurred at the beginning of the period presented. This pro forma financial information is for informational purposes only
and does not reflect any operating efficiencies or inefficiencies which may result from the Business Combination and
therefore is not necessarily indicative of results that would have been achieved had the businesses been combined during the
period presented (amounts in millions, except per share data):
For the Year
Ended
December 31,
2008
Pro forma net revenues ..................................................................................... $4,336
Pro forma net loss ............................................................................................. (111)
Pro forma net loss per share
- basic ............................................................................................................... (0.08)
- diluted ............................................................................................................ (0.08)
Comparative Period—Following the consummation of the Business Combination, the historical financial statements
of Activision Blizzard for periods prior to the consummation of the Business Combination are those of Vivendi Games.
Activision, Inc.’s businesses were included in Activision Blizzard’s financial statements for all periods subsequent to the
consummation of the Business Combination only.