Activision 2013 Annual Report Download - page 80

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61
over a weighted-average period of 1.34 years. The total grant date fair value of vested restricted stock rights was $57 million,
$45 million and $37 million for the years ended December 31, 2013, 2012 and 2011, respectively.
The income tax benefit from stock option exercises and restricted stock rights was $77 million, $20 million, and
$28 million for the years ended December 31, 2013, 2012, and 2011, respectively.
Stock-Based Compensation Expense
The following table sets forth the total stock-based compensation expense included in our consolidated statements of
operations for the years ended December 31, 2013, 2012, and 2011 (amounts in millions):
For the Years Ended December 31,
2013 2012 2011
Cost of sales—software royalties and amortization ................................. $ 17 $ 9 $ 10
Product development ................................................................................. 33 20 40
Sales and marketing ................................................................................... 7 8 6
General and administrative ........................................................................ 53 89 47
Stock-based compensation expense before income taxes ......................... 110 126 103
Income tax benefit ..................................................................................... (40) (46) (38)
Total stock-based compensation expense, net of income tax benefit ....... $ 70 $ 80 $ 65
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, 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
Stock-based compensation expense capitalized and deferred during period .......................... 34
Amortization of capitalized and deferred stock-based compensation expense ....................... (31)
Balance at December 31, 2013 ................................................................................................ $ 22
16. Restructuring
On February 3, 2011, the Board of Directors of the Company authorized a restructuring plan (the “2011
Restructuring”) involving a focus on the development and publication of a reduced slate of titles on a going-forward basis. The
2011 Restructuring included the discontinuation of the development of music-based games, the closure of the related business
unit and the cancellation of other titles then in production, along with a related reduction in studio headcount and corporate
overhead.
The following table details the amount of the 2011 Restructuring reserves included in “Accrued Expenses and Other
Liabilities” in our consolidated balance sheets at December 31, 2013, 2012, and 2011 (amounts in millions):
Severance
Facilities
costs
Contract
termination
costs Total
Balance at January 1, 2011............................................
.
$ —$ —$ — $ —
Costs charged to expense ..............................................
.
20 4 1 25
Costs paid or otherwise settled ......................................
.
(16) (1) (1) (18)
Balance at December 31, 2011 .....................................
.
$ 4 $ 3 $ — $ 7
Costs paid or otherwise settled ......................................
.
(4) — — (4)
Balance at December 31, 2012 .....................................
.
$ — $ 3 $ — $ 3
Costs paid or otherwise settled ......................................
.
— — — —
Balance at December 31, 2013 .....................................
.
$ — $ 3 $ — $ 3