Activision 2008 Annual Report Download - page 26
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12
Consolidated Statements of Operations
Special Note—The consummation of the Business Combination has resulted in financial
information of Activision, Inc. being included from the date of the Business Combination
(i.e. from July 9, 2008 onwards), but not for prior periods.
The following table sets forth certain Consolidated Statements of Operations data for the
periods indicated in dollars and as a percentage of total net revenues (amounts in millions):
For the years ended December 31,
2008 2007 2006
(as adjusted)
Net revenues:
Product sales......................................................................... $1,872 62% $457 34% $421 41%
Subscription, licensing, and other revenues.......................... 1,154 38 892 66 597 59
Total net revenues............................................................. 3,026 100 1,349 100 1,018 100
Costs and expenses:
Cost of sales—product costs................................................. 1,160 38 171 13 153 15
Cost of sales—software royalties and amortization.............. 267 9 52 4 71 7
Cost of sales—intellectual property licenses........................ 219 7 9 1 24 2
Cost of sales—MMORPG.................................................... 193 7 204 15 119 12
Product development............................................................ 592 20 397 29 246 24
Sales and marketing.............................................................. 464 15 172 13 147 14
Restructuring costs ............................................................... 93 3 (1) — 4 —
General and administrative................................................... 271 9166 12 133 14
Total costs and expenses............................................... 3,259 108 1,170 87 897 88
Operating income (loss) ........................................................... (233) (8) 179 13 121 12
Investment income (loss), net................................................... 46 2(4) — (15) (1)
Income (loss) before income tax benefit................................... (187) (6) 175 13 106 11
Income tax benefit.................................................................... (80) (2) (52) (4) (33) (3)
Net income (loss)...................................................................... $(107) (4)% $227 17% $139 14%