Blizzard 2011 Annual Report Download - page 50

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions)
For the Years Ended
December 31,
2011 2010 2009
Cash flows from operating activities:
Net income ........................................................................................................................................... $1,085 $418 $113
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income taxes .................................................................................................................... 75 (278) (256)
Impairment of goodwill and intangible assets (see Notes 10 and 11) ........................................... 12 326 409
Depreciation and amortization ....................................................................................................... 148 198 347
Loss on disposal of property and equipment .................................................................................. 4 1 2
Amortization and write-off of capitalized software development costs and intellectual
property licenses (1) .................................................................................................................. 287 319 281
Stock-based compensation expense (2) .......................................................................................... 103 131 156
Excess tax benefits from stock option exercises ............................................................................ (24) (22) (79)
Changes in operating assets and liabilities:
Accounts receivable ........................................................................................................................ 13 43 235
Inventories, net ............................................................................................................................... (34) 124 21
Software development and intellectual property licenses .............................................................. (254) (313) (308)
Other assets ..................................................................................................................................... (67) 17 (110)
Deferred revenues ........................................................................................................................... (248) 293 503
Accounts payable ............................................................................................................................ 31 70 (18)
Accrued expenses and other liabilities ........................................................................................... (179) 49 (113)
Net cash provided by operating activities ........................................................................................... 952 1,376 1,183
Cash flows from investing activities:
Proceeds from maturities of available-for-sale investments ............................................................... 740 519 44
Proceeds from maturities of auction rate securities classified as trading securities ........................... — 61 —
Proceeds from sale of available-for-sale investments ......................................................................... — — 2
Proceeds from auction rate securities called at par ............................................................................. 10 — —
Payment of contingent consideration .................................................................................................. (3) (4) —
Purchases of available-for-sale investments ....................................................................................... (417) (800) (425)
Capital expenditures ............................................................................................................................ (72) (97) (69)
Decrease in restricted cash .................................................................................................................. 8 9 5
Net cash provided by (used in) investing activities ............................................................................266 (312) (443)
Cash flows from financing activities:
Proceeds from issuance of common stock to employees .................................................................... 54 73 81
Repurchase of common stock .............................................................................................................. (692) (959) (1,109)
Dividends paid ..................................................................................................................................... (194) (189) —
Excess tax benefits from stock option exercises ................................................................................. 24 22 79
Net cash used in financing activities ................................................................................................... (808) (1,053) (949)
Effect of foreign exchange rate changes on cash and cash equivalents ................................................... (57) 33 19
Net increase (decrease) in cash and cash equivalents .............................................................................. 353 44 (190)
Cash and cash equivalents at beginning of period ................................................................................... 2,812 2,768 2,958
Cash and cash equivalents at end of period .............................................................................................. $3,165 $2,812 $2,768
(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.
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