Activision 2011 Annual Report Download - page 92

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ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
For the Year Ended December 31, 2011 and 2010
(Amounts in millions)
Year Ended
December 31, 2011 December 31, 2010 $ Increase % Increase
Amount % of Total Amount % of Total (Decrease) (Decrease)
Segment net revenues:
Activision(i) $ 2,828 59 % $ 2,769 62 % $ 59 2 %
Blizzard(ii) 1,243 26 1,656 37 (413) (25)
Distribution(iii) 418 9 378 9 40 11
Operating segment total 4,489 94 4,803 108 (314) (7)
Reconciliation to consolidated net revenues:
N
et effect from deferral of net revenues 266 6 (356) (8)
Consolidated net revenues $ 4,755 100 % $ 4,447 100 % $ 308 7 %
Segment income from operations:
Activision(i) $ 851 $ 511 $ 340 67 %
Blizzard(ii) 496 850 (354) (42)
Distribution(iii) 11 10 1 10
Operating segment total 1,358 1,371 (13) (1)
Reconciliation to consolidated operating income
and consolidated income before income tax expense:
N
et effect from deferral of net revenues and related cost of sales 183 (319)
Stock-based compensation expense (103) (131)
Restructuring (26) (3)
Amortization of intangible assets (72) (123)
Impairment of goodwill/intangible assets (12) (326)
Consolidated operating income $ 1,328 $ 469 859 183
Investment and other income (expense), net 3 23
Consolidated income before income tax expense $ 1,331 $ 492 $ 839 171 %
Operating margin from total operating segments 30.3% 28.5%
(i) Activision Publishing (“Activision”) — publishes interactive entertainment products and contents.
(ii) Blizzard — Blizzard Entertainment, Inc. and its subsidiaries (“Blizzard”) publishes PC games and online subscription-based games in the MMORPG category.
(iii) Activision Blizzard Distribution (“Distribution”) — distributes interactive entertainment software and hardware products.
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