Activision 2012 Annual Report Download - page 54

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36
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in millions)
For the Years Ended
December 31,
2012
2011
2010
Cash flows from operating activities:
Net income .........................................................................................................................................................................
$1,149
$1,085
$418
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes ...................................................................................................................................................
(10)
75
(278)
Impairment of goodwill and intangible assets (see Notes 10 and 11) ..........................................................................
—
12
326
Depreciation and amortization ......................................................................................................................................
120
148
198
Loss on disposal of property and equipment ................................................................................................................
1
4
1
Amortization and write-off of capitalized software development costs and intellectual property licenses (1) ...........
208
287
319
Stock-based compensation expense (2) ........................................................................................................................
126
103
131
Excess tax benefits from stock option exercises ...........................................................................................................
(5)
(24)
(22)
Changes in operating assets and liabilities:
Accounts receivable ......................................................................................................................................................
(46)
13
43
Inventories, net ..............................................................................................................................................................
(62)
(34)
124
Software development and intellectual property licenses ............................................................................................
(301)
(254)
(313)
Other assets....................................................................................................................................................................
88
(67)
17
Deferred revenues .........................................................................................................................................................
153
(248)
293
Accounts payable ..........................................................................................................................................................
(54)
31
70
Accrued expenses and other liabilities ..........................................................................................................................
(22)
(179)
49
Net cash provided by operating activities ..........................................................................................................................
1,345
952
1,376
Cash flows from investing activities:
Proceeds from maturities of available-for-sale investments ..............................................................................................
444
740
519
Proceeds from maturities of auction rate securities classified as trading securities ..........................................................
—
—
61
Proceeds from auction rate securities called at par ............................................................................................................
10
10
—
Payment of contingent consideration .................................................................................................................................
—
(3)
(4)
Purchases of available-for-sale investments ......................................................................................................................
(503)
(417)
(800)
Capital expenditures ...........................................................................................................................................................
(73)
(72)
(97)
(Increase) decrease in restricted cash .................................................................................................................................
(2)
8
9
Net cash (used in) provided by investing activities ...........................................................................................................
(124)
266
(312)
Cash flows from financing activities:
Proceeds from issuance of common stock to employees...................................................................................................
33
69
81
Tax payment related to net share settlements of restricted stock rights
(16)
(15)
(8)
Repurchase of common stock ............................................................................................................................................
(315)
(692)
(959)
Dividends paid ....................................................................................................................................................................
(204)
(194)
(189)
Excess tax benefits from stock option exercises ................................................................................................................
5
24
22
Net cash used in financing activities ..................................................................................................................................
(497)
(808)
(1,053)
Effect of foreign exchange rate changes on cash and cash equivalents .................................................................................
70
(57)
33
Net increase in cash and cash equivalents ..............................................................................................................................
794
353
44
Cash and cash equivalents at beginning of period ..................................................................................................................
3,165
2,812
2,768
Cash and cash equivalents at end of period ............................................................................................................................
$3,959
$3,165
$2,812
(1) Excludes deferral and amortization 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.