Activision 2008 Annual Report Download - page 76

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62
The total expected and incurred restructuring charges related to the Business
Combination from the Business Combination date through June 30, 2009 are presented below
(amounts in millions):
Low High
Total expected restructuring costs, before tax......................... $113 $133
Total expected restructuring costs, after tax ........................... 55 70
The after tax cash charges are expected to consist primarily of employee-related
severance cash costs (approximately $47 million), facility exit cash costs (approximately
$18 million) and cash contract terminations costs (approximately $5 million). Separately, through
December 31, 2008 these restructuring charges were partially offset by cash proceeds of
approximately $28 million from asset disposals and after tax cash benefits related to the
streamlining of the Vivendi Games title portfolio.
Prior to the Business Combination, Vivendi Games adopted certain restructuring plans,
which were primarily implemented in 2004. These plans primarily related to employee severance,
closure of certain facilities, and other similar actions. At December 31, 2008, restructuring
accruals relating to these prior restructuring plans are $0.2 million and there were no material
changes to the restructuring accrual for the year ended December 31, 2008.
9. Inventories
Our inventories consisted of the following (amounts in millions):
At December 31,
2008 2007
Finished goods........................................................................ $251 $19
Purchased parts and components ............................................ 11 2
$262 $21
10. Property and Equipment, Net
Property and equipment, net was comprised of the following (amounts in millions):
At December 31,
2008 2007
Land........................................................................................ $1 $—
Buildings................................................................................. 5 —
Leasehold improvements ........................................................ 45 36
Computer equipment............................................................... 293 267
Office furniture and other equipment...................................... 52 15
Total cost of property and equipment ................................. 396 318
Less accumulated depreciation ............................................... (247) (189)
Property and equipment, net ............................................... $149 $129