Activision 2008 Annual Report Download - page 15

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1
SELECTED CONSOLIDATED FINANCIAL DATA
On July 9, 2008, a business combination (the “Business Combination”) by and among
Activision, Inc., Sego Merger Corporation, a wholly-owned subsidiary of Activision, Inc.,
Vivendi S.A. (“Vivendi”), VGAC LLC, a wholly-owned subsidiary of Vivendi S.A., and Vivendi
Games, Inc., a wholly-owned subsidiary of VGAC LLC, was consummated. As a result of the
consummation of the Business Combination, Activision, Inc. was renamed Activision
Blizzard, Inc. For accounting purposes, the Business Combination is treated as a “reverse
acquisition,” with Vivendi Games, Inc. deemed to be the acquirer. The historical financial
statements of Activision Blizzard, Inc. prior to July 9, 2008 are those of Vivendi Games, Inc. (see
Note 1 of the Notes to Consolidated Financial Statements included in this Annual Report).
Therefore, 2008 financial data is not comparable with prior periods.
The following table summarizes certain selected consolidated financial data, which
should be read in conjunction with our Consolidated Financial Statements and Notes thereto and
with Management’s Discussion and Analysis of Financial Condition and Results of Operations
included elsewhere in this Annual Report. The selected consolidated financial data presented
below at and for each of the years in the five-year period ended December 31, 2008 are derived
from our Consolidated Financial Statements. All amounts set forth in the following tables are in
millions, except per share data.
For the years ended December 31,
2008 2007(2) 2006 2005 2004
(As
Adjusted)
Statements of Operations Data:
Net revenues...................................................................................... $3,026 $1,349 $1,018 $780 $567
Net income (loss) .............................................................................. (107) 227 139 45 (274)
Net income (loss) per share(1) .......................................................... (0.11) 0.38 0.24 0.08 (0.46)
At December 31,
2008 2007(2) 2006 2005 2004
(As
Adjusted)
Balance Sheets Data:
Total assets ......................................................................................... $14,701 $879 $758 $539 $685
(1) Stock Split—In July 2008, the Board of Directors approved a two-for-one split of our
outstanding shares of common stock effected in the form of a stock dividend (“the split”).
The split was paid September 5, 2008 to shareholders of record at August 25, 2008.
(2) In the quarter ended September 30, 2008, we changed the manner in which we recognize
revenue associated with sales of The Burning Crusade expansion pack, which was
released in January 2007. We determined that it is preferable to conclude that the
expansion packs do not have standalone value and to account for fees from sales of
expansion packs over the remaining estimated useful life of the customer. We also
identified certain ancillary fees charged to World of Warcraft subscribers that had been
recognized immediately rather than deferred over the estimated remaining subscription