Activision 2010 Annual Report Download - page 13

1
SELECTED 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, and Vivendi Games, Inc. (“Vivendi Games”), 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
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, 2010, 2009 and 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, 2010 is 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,
2010 2009 2008 2007 2006
Statement of Operations Data:
Net Revenues ....................................................................................... $4,447 $4,279 $3,026 $1,349 $1,018
Net income (loss) ................................................................................. 418
(
1
)
113
(
2
)
(107) 227 139
Basic net income (loss) per share
(
3
)
...................................................... 0.34 0.09 (0.11) 0.38 0.24
Diluted net income (loss) per share
(
3
)
.................................................. 0.33 0.09 (0.11) 0.38 0.24
Cash dividends declared per share
(
4
)
.................................................... 0.15 — — — —
Balance Sheet Data:
Total assets .......................................................................................... $13,406 $13,742 $14,465 $879 $758
(1) In the fourth quarter of 2010, we recorded $326 million of impairment charges within our Activision segment. These
charges consisted of impairments of $67 million, $9 million and $250 million to license agreements, game engines
and internally developed franchises intangible assets, respectively.
(2) In the fourth quarter of 2009, we recorded $409 million of impairment charges within our Activision segment. These
charges consisted of impairments of $24 million, $12 million and $373 million to license agreements, game engines
and internally developed franchise intangible assets, respectively.
(3) 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 stock dividend was issued on September 5, 2008 to
shareholders of record at August 25, 2008.
(4) Cash Dividends—On February 9, 2011, our Board of Directors declared a cash dividend of $0.165 per share to be
paid on May 11, 2011 to shareholders of record at the close of business on March 16, 2011. On February 10, 2010,
our Board of Directors declared a cash dividend of $0.15 per common share payable on April 2, 2010 to
shareholders of record at the close of business on February 22, 2010. Future dividends will depend upon our
earnings, financial condition, cash requirements, future prospects and other factors deemed relevant by our Board of
Directors. There can be no assurances that dividends will be declared in the future. Prior to the cash dividend
declared in February 2010, the Company had never paid a regular cash dividend.