This excerpt taken from the ATVI 10-Q filed May 8, 2009.
Segment income (loss) from operations
For the quarter ended March 31, 2009, the increase in total operating segment income compared to the same period in 2008 was principally attributable to the decreases in Non-Core segment operating loss due to the wind down of Vivendi Games legacy divisions and business. This was partially offset by the following:
· As a result of the Business Combination, an operating loss of $35 million from the businesses operated by Activision, Inc. prior to the Business Combination was included in the three months ended March 31, 2009, but not in the same period in 2008. Activisions operating loss for the three months ended March 31, 2009 was primarily driven by significant product development investment for its slate of future titles;
· A decrease in Blizzards operating income due to an increase in investments in customer service and marketing support for World of Warcraft.
Cash Flow Highlights (amounts in millions)
For the three months ended March 31, 2009, the primary drivers of cash flows from operating activities included the collection of customer receivables generated by the sale of our products and our subscription revenues, partially offset by payments to vendors for the manufacture, distribution and marketing of our products, third-party developers, and intellectual property holders, and to our employees. We made capital expenditures of $10 million during the quarter ended March 31, 2009. Cash flows used in financing activities reflect our repurchase of 32 million shares of our common stock for $313 million under the stock repurchase program, partially offset by $7 million of proceeds from issuance of common stock to employees.