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ACTIVISIONBLIZZARD,INC.ANDSUBSIDIARIES
RECONCILIATIONOFGAAPNETINCOME(LOSS)TONONGAAPMEASURES
(Amountsinmillions,exceptearnings(loss)persharedata)
YearendedDecember31,2009
Net
Revenues
Costof
Sales
Product
Costs
Costof
Sales
Software
Royalties
andAmort.
Costof
Sales
Intellectual
Property
Licenses
Costof
Sales
MMORPG
Product
Development
Salesand
Marketing
Generaland
Administrative
Impairmentof
Intangible
Assets
Restructuring
TotalCosts
and
Expenses
GAAPMeasurement 4,279$ 1,432$348$315$212$627$544$395$409$23$ 4,305$
Less:Neteffectfromdeferralinnetrevenuesandrelatedcostofsales
(a)
497115(4)(2)   5   114
Less:Stockbasedcompensation(includingpurch.priceaccountingrelatedadj.)
(b)
 (34)  (40)(9)(71)   (154)
Less:ResultsofActivisionBlizzard'snoncoreexitoperations
(f)
(1)     4(3)(10)  (9)
Less:CostsrelatedtotheBusinessCombination,integrationandrestructuring
(c)
      (24) (23)(47)
Less:Amortizationofintangibleassetsandpurch.priceaccountingrelatedadj.
(d)
(5)(66) (186)   (2)   (259)
Less:Impairmentofintangibleassets (e)         (409)  (409)
NonGAAPMeasurement 4,775$ 1,542$244$127$212$591$537$288$ $ $ 3,541$
YearendedDecember31,2009
Operating
Income
(Loss)
Net
Income
Basic
Earnings
perShare
Diluted
Earnings
perShare
GAAPMeasurement (26)$113$ 0.09$ 0.09$
Less:Neteffectfromdeferralinnetrevenuesandrelatedcostofsales
(a)
383279 0.22 0.21
Less:Stockbasedcompensation(includingpurch.priceaccountingrelatedadj.)
(b)
15496 0.07 0.07
Less:ResultsofActivisionBlizzard'snoncoreexitoperations
(f)
8 4 0.00 0.00
Less:CostsrelatedtotheBusinessCombination,integrationandrestructuring
(c)
4728 0.02 0.02
Less:Amortizationofintangibleassetsandpurch.priceaccountingrelatedadj. (d) 259141 0.11 0.11
Less:Impairmentofintangibleassets
(e)
409249 0.19 0.19
NonGAAPMeasurement 1,234$910$ 0.70$ 0.69$
(c)ReflectscostsrelatedtotheBusinessCombinationwithVivendiGames(includingtransactioncosts,integrationcostsandrestructuringactivities).Restructuringactivitiesincludesseverancecosts,facilityexitcostsandbalancesheetwritedownandexit
costsfromthecancellationofprojects.
Thepershareadjustmentsarepresentedascalculated,andtheGAAPandnonGAAPearnings(loss)pershareinformationisalsopresentedascalculated.Thesumofthesemeasures,aspresented,maydifferduetotheimpactofrounding.
(f)ReflectstheresultsofproductsandoperationsfromthehistoricalVivendiGamesbusinessesthatthecompanyhasexited,divestedorwounddown.
(e)Reflectsimpairmentofintangibleassetsacquiredasaresultofpurchasepriceaccounting.
(d)Reflectsamortizationofintangibleassets,andthechangeinthefairvalueofassetsandliabilitiesfrompurchasepriceaccountingrelatedadjustments.
(b)Includesexpenserelatedtostockbasedcompensation.
(a)Reflectsthenetchangeindeferrednetrevenuesandrelatedcostofsales.
91