Blizzard 2012 Annual Report Download - page 70

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52
Years Ended December 31,
2012
2011
2010
2012
2011
2010
Net Revenues
Income from operations
Activision .....................................................................................................................
$3,072
$2,828
$2,769
$970
$851
$511
Blizzard ........................................................................................................................
1,609
1,243
1,656
717
496
850
Distribution ..................................................................................................................
306
418
378
11
11
10
Operating segments total ........................................................................................
4,987
4,489
4,803
1,698
1,358
1,371
Reconciliation to consolidated net revenues / consolidated income before tax expense:
Net effect from changes in the deferral of net revenues and related cost of sales ......
(131)
266
(356)
(91)
183
(319)
Stock-based compensation expense .............................................................................
—
—
—
(126)
(103)
(131)
Restructuring ................................................................................................................
—
—
—
—
(26)
(3)
Amortization of intangible assets ................................................................................
—
—
—
(30)
(72)
(123)
Impairment of goodwill/intangible assets ....................................................................
—
—
—
—
(12)
(326)
Consolidated net revenues / operating income .................................................................
$4,856
$4,755
$4,447
$1,451
$1,328
$469
Investment and other income (expense), net ...............................................................
7
3
23
Consolidated income before income tax expense.............................................................
$1,458
$1,331
$492
For the years ended December 31, 2011 and 2010, restructuring expense of $1 million and $3 million, related to the Business
Combination consummated in July 2008, is reflected in the “General and administrative expense” in the consolidated statement of operations,
respectively. See Note 7 of the Notes to Consolidated Financial Statements for more detail.
Geographic information for the years ended December 31, 2012, 2011, and 2010 is based on the location of the selling entity. Net
revenues from external customers by geographic region were as follows (amounts in millions):
Years Ended
December 31,
2012
2011
2010
Net revenues by geographic region:
North America .....................................................................................................
$2,436
$2,405
$2,409
Europe ..................................................................................................................
1,968
1,990
1,743
Asia Pacific ..........................................................................................................
452
360
295
Total consolidated net revenues................................................................................
$4,856
$4,755
$4,447
Net revenues by platform were as follows (amounts in millions):
Years Ended December 31,
2012
2011
2010
Net revenues by platform:
Console .................................................................................................................
$2,186
$2,439
$2,330
PC and Other(1) .....................................................................................................
1,214
374
325
Online subscriptions(2) ..........................................................................................
986
1,357
1,230
Handheld ..............................................................................................................
164
167
184
Total platform net revenues ......................................................................................
4,550
4,337
4,069
Distribution ...............................................................................................................
306
418
378
Total consolidated net revenues ................................................................................
$4,856
$4,755
$4,447
(1) Revenues from PC and other consists of net revenues from the sale of PC boxed products, Skylanders franchise standalone
toys products, mobile sales and other physical merchandise and accessories.
(2) Revenue from online subscriptions consists of revenue from all World of Warcraft® products, including subscriptions,
boxed products, expansion packs, licensing royalties, value-added services, and revenues from Call of Duty® Elite
memberships.