Zynga 2013 Annual Report Download - page 46

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Table of Contents
The following table presents a reconciliation of net income (loss) to adjusted EBITDA for each of the periods indicated:
Limitations of Bookings and Adjusted EBITDA
Some limitations of bookings and adjusted EBITDA are:
Because of these limitations, you should consider bookings and adjusted EBITDA along with other financial performance measures,
including revenue, net income (loss) and our other financial results presented in accordance with U.S. GAAP.
42
Year Ended December 31,
2013
2012
2011
2010
2009
Reconciliation of Net Income (Loss) to Adjusted EBITDA:
Net income (loss)
$
(36,982
)
$
(209,448
)
$
(404,316
)
$
90,595
$
(52,822
)
Provision for (benefit from) income taxes
(27,887
)
49,873
(1,826
)
36,464
12
Other income (expense), net
3,386
(18,647
)
2,206
(365
)
209
Interest income
(4,148
)
(4,749
)
(1,680
)
(1,222
)
(177
)
Gain (loss) from legal settlements
—
3,024
(2,145
)
(39,346
)
—
Depreciation and amortization
129,047
141,479
95,414
39,481
10,372
Stock
-
based expense
84,393
281,986
600,212
25,694
3,990
Impairment of intangible assets
10,217
95,493
—
—
—
Acquisition
-
related contingent consideration
930
—
—
—
—
Restructuring expense
44,683
7,862
—
—
—
Change in deferred revenue
(157,090
)
(133,640
)
15,409
241,437
206,603
Adjusted EBITDA
$
46,549
$
213,233
$
303,274
$
392,738
$
168,187
•
adjusted EBITDA does not include the impact of stock
-
based expense;
•
bookings and adjusted EBITDA do not reflect that we defer and recognize online game revenue and revenue from certain advertising
transactions over the estimated average life of virtual goods or as virtual goods are consumed;
•
adjusted EBITDA does not reflect income tax expense;
•
adjusted EBITDA does not include other income expense (net), which includes foreign exchange gains and losses, interest income
and the net gain on the termination of our lease and purchase of our corporate headquarters building;
•
adjusted EBITDA excludes depreciation and amortization of intangible assets and although these are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the future;
•
adjusted EBITDA does not include the impairment of intangible assets previously acquired and does not include acquisition-related
contingent consideration;
•
adjusted EBITDA does not include gains and losses associated with significant legal settlements or restructuring expense; and
•
other companies, including companies in our industry, may calculate bookings and adjusted EBITDA differently or not at all, which
reduces their usefulness as a comparative measure.