Activision, Inc. — 2004 Annual Report The following table sets forth certain consolidated statements of operations data for the periods indicated as a per- centage of consolidated net revenues and also breaks down net revenues by territory and platform, as well as operating income by business segment: Selected Consolidated Statements of Operations Data (In thousands) Year ended March 31, 2004 2003 2002 Net revenues $947,656 100% $864,116 100% $786,434 100% Costs and expenses: Cost of sales—product costs 475,541 50 440,977 51 435,725 56 Cost of sales—software royalties  and amortization 59,744 6 79,194 9 58,892 7 Cost of sales—intellectual property  licenses 31,862 3 45,002 5 40,114 5 Product development 97,859 10 56,971 7 40,960 5 Sales and marketing 128,221 14 100,646 12 86,161 11 General and administrative 44,612 5 46,479 5 44,008 6 Total costs and expenses 837,839 88 769,269 89 705,860 90 Income from operations 109,817 12 94,847 11 80,574 10 Investment income, net 6,175 — 8,560 1 2,546 1 Income before income tax provision 115,992 12 103,407 12 83,120 11 Income tax provision 38,277 4 37,227 4 30,882 4 Net income $ 77,715 8% $ 66,180 8% $ 52,238 7% Net Revenues by Territory: United States $446,812 47% $432,261 50% $404,905 51% Europe 479,224 51 413,125 48 368,799 47 Other 21,620 2 18,730 2 12,730 2 Total net revenues $947,656 100% $864,116 100% $786,434 100% Net Revenues by Segment/Platform Mix: Publishing: Console $508,418 76% $466,116 76% $312,986 57% Hand-held 24,945 4 49,966 8 119,177 22 PC 132,369 20 99,893 16 117,345 21 Total publishing net revenues 665,732 70 615,975 71 549,508 70 Distribution: Console 223,802 79 208,505 84 167,709 71 Hand-held 18,361 7 14,103 6 39,865 17 PC 39,761 14 25,533 10 29,352 12 Total distribution net revenues 281,924 30 248,141 29 236,926 30 Total net revenues $947,656 100% $864,116 100% $786,434 100% Operating Income by Segment: Publishing $ 93,223 10% $ 79,139 9% $ 68,675 9% Distribution 16,594 2 15,708 2 11,899 1 Total operating income $109,817 12% $ 94,847 11% $ 80,574 10% page 19