Blizzard 2005 Annual Report Download - page 59

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(In thousands)
For the years ended March 31, 2005 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
฀ ฀Net฀income $ 138,335 $ 77,715 $ 66,180
฀ ฀Adjustments฀to฀reconcile฀net฀income฀to฀net฀cash฀provided฀by฀operating฀activities:
฀ ฀ ฀Deferred฀income฀taxes 878 15,147 3,355
฀ ฀ ฀Depreciation฀and฀amortization 10,702 10,795 12,114
฀ ฀ ฀Realized฀gain฀on฀sale฀of฀short-term฀investments (471) (21) (234)
฀ ฀ ฀Amortization฀and฀write-offs฀of฀capitalized฀software฀development฀costs฀and฀intellectual฀property฀licenses 134,799 87,922 100,415
฀ ฀ ฀Tax฀benefit฀of฀stock฀options฀and฀warrants฀exercised 53,337 12,417 23,884
฀ ฀Change฀in฀operating฀assets฀and฀liabilities฀(net฀of฀effects฀of฀acquisitions):
฀ ฀ ฀Accounts฀receivable,฀net (46,527) (42,497) 61,922
฀ ฀ ฀Inventories (21,591) (6,850) 1,159
฀ ฀ ฀Software฀development฀and฀intellectual฀property฀licenses (126,938) (115,202) (151,594)
฀ ฀ ฀Other฀assets 1,543 (5,232) 1,836
฀ ฀ ฀Accounts฀payable 35,413 23,005 (19,072)
฀ ฀ ฀Accrued฀expenses฀and฀other฀liabilities 35,829 10,204 (8,990)
฀ ฀ ฀Net฀cash฀provided฀by฀operating฀activities 215,309 67,403 90,975
CASH FLOWS FROM INVESTING ACTIVITIES:
฀ ฀Cash฀used฀in฀business฀acquisitions฀(net฀of฀cash฀acquired) (21,382) (3,480) (21,199)
฀ ฀Capital฀expenditures (14,941) (11,976) (11,877)
฀ ฀Purchase฀of฀short-term฀investments (868,723) (703,400) (822,114)
฀ ฀Proceeds฀from฀sales฀and฀maturities฀of฀short-term฀investments 761,150 548,701 554,638
฀ ฀Other —— (995)
฀ ฀Net฀cash฀used฀in฀investing฀activities (143,896) (170,155) (301,547)
CASH FLOWS FROM FINANCING ACTIVITIES:
฀ ฀Proceeds฀from฀issuance฀of฀common฀stock฀to฀employees฀and฀common฀stock฀pursuant฀to฀warrants 72,654 26,483 20,547
฀ ฀Notes฀payable,฀net —(2,818) (720)
฀ ฀Proceeds฀from฀issuance฀of฀common฀stock฀pursuant฀to฀underwritten฀public฀offering,฀net฀of฀offering฀costs —— 248,072
฀ ฀Purchase฀of฀structured฀stock฀repurchase฀transactions —(52,621) (110,000)
฀ ฀Settlement฀of฀structured฀stock฀repurchase฀transactions —166,521 —
฀ ฀Purchase฀of฀treasury฀stock —(19,996) (93,809)
฀ ฀Net฀cash฀provided฀by฀financing฀activities 72,654 117,569 64,090
Effect฀of฀exchange฀rate฀changes฀on฀cash 4,421 11,195 6,583
Net฀increase฀(decrease)฀in฀cash฀and฀cash฀equivalents 148,488 26,012 (139,899)
Cash฀and฀cash฀equivalents฀at฀beginning฀of฀period 165,120 139,108 279,007
Cash฀and฀cash฀equivalents฀at฀end฀of฀period $ 313,608 $ 165,120 $ 139,108
The accompanying notes are an integral part of these consolidated financial statements.
Consolidated Statements of Cash Flows
page 58
Activision, Inc. — 2005 Annual Report