Blizzard 2011 Annual Report Download - page 89

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except earnings per share data)

Year Ended December 31, 2009Net
Revenues
Cost of
Sales -
Product
Costs Cost of Sales
- MMORPG
Cost of Sales
- Software
Royalties and
Amortization
Cost of Sales -
Intellectual
Property
Licenses Product
Development Sales and
Marketing General and
Administrative
Impairment
of Intangible
Assets Re-
structuring
Total Costs
and
Expenses
GAAP Measurement $ 4,279 $ 1,432 $ 212 $ 348 $ 315 $ 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 (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 purchase price accounting related adjustments (d) - (5) - (66) (186) - - (2) - - (259) Less: Impairment of intangible assets (e) - - - - - - - - (409) - (409) Non‐GAAPMeasurement $ 4,775 $ 1,542 $ 212 $ 244 $ 127 $ 591 $ 537 $ 288 $ - $ - $ 3,541 Year Ended December 31, 2009
Operating
Income
(Loss) Net Income
Basic
Earnings per
Share
Diluted
Earnings per
Share Basic 591
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 (b) 154 96 0.07 0.07 Less: Results of Activision Blizzard's non-core exit operations (f) 8 4 - - Less: Costs related to the Business Combination, integration and restructuring (c) 47 28 0.02 0.02 Less: Amortization of intangible assets and purchase price accounting related adjustments (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
(a)Reflectsthenetchangeindeferrednetrevenuesandrelatedcostofsales.                     (b)Includesexpenserelatedtostock‐basedcompensation.
(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. (d)Reflectsamortizationofintangibleassets,andthechangeinthefairvalueofassetsandliabilitiesfrompurchasepriceaccountingrelatedadjustments. (e)Reflectsimpairmentofintangibleassetsacquiredasaresultofpurchaseaccounting. (f)ReflectstheresultsofproductsandoperationsfromthehistoricalVivendiGamesbusinessesthatthecompanyhasexited,divestedorwounddown. Thepershareadjustmentsarepresentedascalculated,andtheGAAPandnon‐GAAPearningspershareinformationisalsopresentedascalculated.Thesumofthesemeasures,aspresented,maydifferduetotheimpactofrounding.
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