Blizzard 2002 Annual Report Download - page 14

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CONSOLIDATED BALANCE SHEETS
In thousands, except share data
March 31, 2002 2001
Assets
Current assets:
Cash and cash equivalents $279,007 $125,550
Accounts receivable, net of allowances of $42,019 and $28,461 at
March 31, 2002 and 2001, respectively 76,733 73,802
Inventories 20,736 43,888
Software development 36,263 21,265
Intellectual proper ty licenses 6,326 6,237
Deferred income taxes 22,608 14,292
Other current assets 15,200 13,196
Total current assets 456,873 298,230
Software development 3,254 2,154
Intellectual proper ty licenses 10,899 12,549
Property and equipment, net 17,832 15,240
Deferred income taxes 28,795 13,759
Other assets 3,242 7,709
Goodwill 35,992 10,316
Total assets $556,887 $359,957
Liabilities and Shareholders’ Equity
Current liabilities:
Current por tion of long-term debt $ 168 $ 10,231
Accounts payable 64,410 60,980
Accrued expenses 59,096 44,039
Total current liabilities 123,674 115,250
Long-term debt, less current portion 3,122 3,401
Convertible subordinated notes — 60,000
Total liabilities 126,796 178,651
Commitments and contingencies (Note 12)
Shareholders’ equity:
Preferred stock, $.000001 par value, 3,750,000 and 5,000,000 shares
authorized, no shares issued at March 31, 2002 and 2001, respectively — —
Series A Junior Preferred stock, $.000001 par value, 1,250,000 and no shares
authorized, no shares issued at March 31, 2002 and 2001, respectively — —
Common stock, $.000001 par value, 125,000,000 and 50,000,000 shares
authorized, 61,034,263 and 45,249,683 shares issued and 56,705,504 and
40,923,714 shares outstanding at March 31, 2002 and 2001, respectively — —
Additional paid-in capital 397,528 200,786
Retained earnings 64,384 12,146
Accumulated other comprehensive loss (11,498) (11,377)
Less: Treasury stock, at cost, 4,328,759 and 4,325,969 shares at
March 31, 2002 and 2001, respectively (20,323) (20,249)
Total shareholders’ equity 430,091 181,306
Total liabilities and shareholders’ equity $556,887 $359,957
The accompanying notes are an integral part of these consolidated financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
The Board of Directors and Shareholders
Activision, Inc.:
We have audited the accompanying consolidated statements of operations, changes in shareholders’ equity
and cash flows of Activision, Inc. and subsidiaries for the year ended March 31, 2000. These consolidated
financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement . An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluat-
ing the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects,
the results of operations and cash flows of Activision, Inc. and subsidiaries for the year ended March 31,
2000, in conformity with accounting principles generally accepted in the United States of America.
KPMG LLP
Los Angeles, California
May 5, 2000,
except as to Note 6,
which is as of April 1, 2001,
and the first paragraph of Note 14,
which is as of November 6, 2001