Blizzard 2015 Annual Report Download - page 101

Download and view the complete annual report

Please find page 101 of the 2015 Blizzard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

83
ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
For the Year Ended December 31, 2015 and 2014
(Amounts in millions)
Year Ended
December 31, 2015
December 31, 2014
$ Increase
(Decrease)
% Increase
(Decrease)
Amount
% of
Amount
% of
Segment net revenues:
Activision2
$
2,700
58
%
$
2,686
56
%
$
14
1
%
Blizzard
3
1,565
34
1,720
36
(155
)
(9
)
Other
4
356
8
407
8
(51
)
(13
)
Segments net revenues total
4,621
100
%
4,813
100
%
(192
)
(4
)
Reconciliation to consolidated net revenues:
Net effect from deferral of net revenues
43
(405
)
Consolidated net revenues
$
4,664
$
4,408
256
6
%
Segment income from operations:
Activision2
$
868
$
762
$
106
14
%
Blizzard3
561
756
(195
)
(26
)
Other
4
37
9
28
NM
Segments income from operations total
1,466
1,527
(61
)
(4
)
Reconciliation to consolidated operating income and
consolidated income before income tax expense:
Net effect from deferral of net revenues and related cost of sales
(39
)
(215
)
Stock-based compensation expense
(92
)
(104
)
Amortization of intangible assets
(11
)
(12
)
Fees and other expenses related to acquisitions and the Purchase
Transaction and related debt financings
5
(5
)
(13
)
Consolidated operating income
1,319
1,183
136
11
Interest and other expense, net
198
202
Consolidated income before income tax expense
$
1,121
$
981
140
14
%
Operating margin from total operating segments
31.7
%
31.7
%
1 The percentages of total are presented as calculated. Therefore the sum of these percentages, as presented, may differ due to the impact of rounding.
2 Activision Publishing (“Activision”) — publishes interactive entertainment products and content.
3 Blizzard Entertainment, Inc. (“Blizzard”) — publishes PC games and online subscription-based games in the MMORPG category.
4 Other includes other income and expenses from operating segments managed outside the reportable segments, including our Media Networks, Studios, and
Distribution, as well as other unallocated corporate income and expenses.
5 Reflects fees and other expenses related to the Purchase Transaction and the King Acquisition, inclusive of related debt financings.
10-K Activision_Master_032416_PrinterMarksAdded.pdf 83 3/24/16 11:00 PM