Activision 2009 Annual Report Download - page 65

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53
The CODM reviews segment performance exclusive of the impact of the change in deferred net revenues and related
cost of sales with respect to certain of our online-enabled games, stock-based compensation expense, restructuring expense,
amortization of intangible assets and purchase price accounting related adjustments, impairment of intangible assets,
integration and transaction costs, and other. The CODM does not review any information regarding total assets on an
operating segment basis and, accordingly, no disclosure is made. Information on the operating segments and reconciliations
of total net revenues and total segment income (loss) from operations to consolidated net revenues and operating income
(loss) from external customers for the years ended December 31, 2010, 2009, and 2008 are presented below (amounts in
millions):
Years Ended December 31,
2010 2009 2008 2010 2009 2008
Net Revenues
Income (loss) from
operations
Activision ............................................................................................... $2,769 $3,156 $2,152 $511 $663 $307
Blizzard .................................................................................................. 1,656 1,196 1,343 850 555 704
Distribution ............................................................................................ 378 423 227 10 16 22
Operating segments total .................................................................... 4,803 4,775 3,722 1,371 1,234 1,033
Reconciliation to consolidated net revenues / operating income (loss):
Net effect from deferral of net revenues and related cost of sales .......... (356) (497) (713) (319) (383) (496)
Stock-based compensation expense ........................................................ — — — (131) (154) (90)
Restructuring .......................................................................................... — — — (3) (23) (93)
Amortization of intangible assets and purchase price accounting
related adjustments ............................................................................ — — — (123) (259) (292)
Impairment of intangible assets .............................................................. — — — (326) (409) —
Integration and transaction costs ............................................................ — — — — (24) (29)
Other*..................................................................................................... — 1 17 — (8) (266)
Consolidated net revenues / operating income (loss) .................................. $4,447 $4,279 $3,026 $469 $(26) $(233)
For the year ended December 31, 2010, restructuring expense of $3 million is reflected in the general and
administrative expense in the consolidated statement of operations.
Geographic information for the years ended December 31, 2010, 2009, and 2008 is based on the location of the
selling entity. Net revenues from external customers by geographic region were as follows (amounts in millions):
Years Ended
December 31,
2010 2009 2008
Net revenues by geographic region:
North America .......................................................................... $2,409 $2,217 $1,494
Europe ...................................................................................... 1,743 1,798 1,288
Asia Pacific .............................................................................. 295 263 227
Total geographic region net revenues ........................................... 4,447 4,278 3,009
Other* ....................................................................................... — 1 17
Total consolidated net revenues ................................................... $4,447 $4,279 $3,026
Net revenues by platform were as follows (amounts in millions):
Years Ended December 31,
2010 2009 2008
Net revenues by platform:
MMORPG ................................................................................ $1,230 $1,248 $1,152
Console ..................................................................................... 2,330 2,199 1,294
Handheld .................................................................................. 184 244 237
PC and other ............................................................................. 325 164 99
Total platform net revenues .......................................................... 4,069 3,855 2,782
Distribution................................................................................... 378 423 227
Other* ........................................................................................... — 1 17
Total consolidated net revenues ................................................... $4,447 $4,279 $3,026