Activision 2012 Annual Report Download - page 82

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64
For the Years Ended
December 31,
2012
2011
2010
Cost of sales—software royalties and amortization ..............................................................
$9
$10
$65
Product development ..............................................................................................................
20
40
12
Sales and marketing ...............................................................................................................
8
6
8
General and administrative................................................................................................
89
47
46
Stock-based compensation expense before income taxes .....................................................
126
103
131
Income tax benefit ..................................................................................................................
(46)
(38)
(51)
Total stock-based compensation expense, net of income tax benefit ................................
$80
$65
$80
The following table summarizes stock-based compensation included in our consolidated balance sheets as a component of “Software
development” (amounts in millions):
Software
Development
Balance at December 31, 2009 ................................................................................................................................
$54
Stock-based compensation expense capitalized and deferred during period ...............................................................
63
Amortization of capitalized and deferred stock-based compensation expense ................................
(97)
Balance at December 31, 2010 ................................................................................................................................
$20
Stock-based compensation expense capitalized and deferred during period ...............................................................
27
Amortization of capitalized and deferred stock-based compensation expense ................................
(37)
Balance at December 31, 2011 ................................................................................................................................
$10
Stock-based compensation expense capitalized and deferred during period ...............................................................
27
Amortization of capitalized and deferred stock-based compensation expense ................................
(18)
Balance at December 31, 2012 ................................................................................................................................
$19
19. Capital transactions
Repurchase Program
On February 2, 2012, our Board of Directors authorized a stock repurchase program (“the 2012 Stock Repurchase Program”) under
which we may repurchase up to $1 billion of our common stock, on terms and conditions to be determined by the Company, during the period
between April 1, 2012 and the earlier of March 31, 2013 and a determination by the Board of Directors to discontinue the repurchase program.
During the year ended December 31, 2012, we repurchased 4 million shares of our common stock for $54 million pursuant to the 2012 Stock
Repurchase Program. For the year ended December 31, 2012, we repurchased in total 26 million shares of our common stock for an aggregate
purchase price of $315 million pursuant to stock repurchase plans authorized in 2011 and 2012.
On February 3, 2011, our Board of Directors authorized a stock repurchase program (the “2011 Stock Repurchase Program”) under
which we were authorized to repurchase up to $1.5 billion of our common stock. During the year ended December 31, 2011, we repurchased
59 million shares of our common stock for $670 million pursuant to the 2011 Stock Repurchase Program. Additionally, in January 2012, we
settled the purchase of 1 million shares of our common stock that we had committed to repurchase in December 2011 pursuant to this program for
$12 million. The 2011 Stock Repurchase Program expired on March 31, 2012.
On February 10, 2010, our Board of Directors authorized a stock repurchase program (the “2010 Stock Repurchase Program”) under
which we were authorized to repurchase up to $1 billion of our common stock. During the year ended December 31, 2010, we repurchased
84 million shares of our common stock for $944 million pursuant to the 2010 Stock Repurchase Program. In January 2011, we settled a
$22 million purchase of 1.8 million shares of our common stock that we had agreed to repurchase in December 2010 pursuant to the 2010 Stock
Repurchase Program. The 2010 Stock Repurchase Program expired on December 31, 2010.
On October 30, 2008, our Board of Directors authorized a stock repurchase program (the “2008-2009 Stock Repurchase Program”)
under which we were authorized to repurchase up to $1 billion of our common stock. On July 31, 2009, our Board of Directors authorized an
increase of $250 million to the 2008-2009 Stock Repurchase Program bringing the total authorization to $1.25 billion. During 2009, we
repurchased 101 million shares of our common stock for an aggregate purchase price of $1,109 million pursuant to the 2008-2009 Stock
Repurchase Program. In January 2010, we settled a $15 million purchase of 1.3 million shares of our common stock that we had agreed to
repurchase in December 2009 pursuant to the 2008-2009 Stock Repurchase Program, completing that program.