Activision 2008 Annual Report Download - page 52

Download and view the complete annual report

Please find page 52 of the 2008 Activision 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 116

  • 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
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

38
(1) The number of shares issued reflects the number of split adjusted shares received by
Vivendi, former parent company of Vivendi Games.
The accompanying notes are an integral part of these Consolidated Financial Statements.
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions)
For the years ended
December 31,
2008 2007 2006
(As Adjusted)
Cash flows from operating activities:
Net income (loss)........................................................................................................................................................ $(107) $227 $139
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income taxes........................................................................................................................................... (432) (77) (38)
Depreciation and amortization.............................................................................................................................. 385 63 39
Unrealized loss on trading securities .................................................................................................................... 7 — —
Impairment charges (see note 8) ........................................................................................................................... 26 — —
Loss on disposal of property and equipment ........................................................................................................ — 1 1
Loss on disposal of assets—restructuring (see note 8)......................................................................................... 1 — —
Amortization and write-off of capitalized software development costs and intellectual property licenses(1).... 176 54 81
Stock-based compensation expense(2) ................................................................................................................. 89 138 48
Tax benefit associated with employee stock options............................................................................................ 2 — —
Excess tax benefits from stock option exercises................................................................................................... (21) — —
Changes in operating assets and liabilities, net of impact of acquisitions:
Accounts receivable .............................................................................................................................................. (664) 25 (30)
Inventories............................................................................................................................................................. (20) 7 (12)
Software development and intellectual property licenses .................................................................................... (181) (102) (85)
Other assets............................................................................................................................................................ (163) (6) 2
Deferred revenues ................................................................................................................................................. 726 79 26
Accounts payable .................................................................................................................................................. 322 (12) 26
Accrued expenses and other liabilities.................................................................................................................. 233 34 36
Net cash provided by operating activities.................................................................................................................. 379 431 233
Cash flows from investing activities:
Capital expenditures................................................................................................................................................... (46) (68) (96)
Net proceeds from disposal of assets—restructuring (see note 8)............................................................................. 9 — —
Cash acquired through Business Combination, net of cash payments to effect acquisitions ................................... 1,120 — (26)
Decrease (increase) in restricted cash........................................................................................................................ 18 — (2)
Net cash provided by (used in) investing activities................................................................................................... 1,101 (68) (124)
Cash flows from financing activities:
Proceeds from issuance of common stock to employees........................................................................................... 22 — —
Repurchase of common stock through tender offer................................................................................................... (2) — —
Return of capital to Vivendi....................................................................................................................................... (79) — —
Issuance of additional common stock related to the Business Combination............................................................. 1,731 — —
Repurchase of common stock .................................................................................................................................... (126) — —
Settlement of payable to Vivendi............................................................................................................................... (79) (371) (77)
Excess tax benefits from stock option exercises........................................................................................................ 21 — —
Net cash provided by (used in) financing activities................................................................................................... 1,488 (371) (77)
Effect of foreign exchange rate changes on cash and cash equivalents ......................................................................... (72) 2 4
Net increase (decrease) in cash and cash equivalents..................................................................................................... 2,896 (6) 36
Cash and cash equivalents at beginning of year ............................................................................................................. 62 68 32
Cash and cash equivalents at end of year........................................................................................................................ $2,958 $62 $68
(1) Excludes deferral and amortizations 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.