Blizzard 2015 Annual Report Download - page 102
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Please find page 102 of the 2015 Blizzard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES
(Amount s in m illions , e xc ept earni ngs pe r sha re da ta)
1eectsthenetchangeindeferredrevenuesandrelatedcostofsales.
2 ncludesexpensesrelatedtostoc-basedcompensation.
3 eectsamortiationofintangibleassetsfrompurchasepriceaccounting.
4 eectsfeesandotherexpensesrelatedtoacuisitions,includingtheingAcuisition,andthedebtnancingsrelatedthereto.
ThepershareadustmentsandtheGAAPandnon-GAAPearningspershareinformationarepresentedascalculated.Thesumofthesemeasures,aspresented,may
differduetotheimpactofrounding.
Thecompanycalculatesearningspersharepursuanttothetwo-classmethodwhichreuirestheallocationofnetincomebetweencommonshareholdersand
participatingsecurityholders.FortheyearendedDecember31,2015,netincomeattributabletoActivisionliard,nc.commonshareholdersusedtocalculate
non-GAAPearningspercommonshare,assumingdilution,was$977million,ascomparedtototalnetincomeof$989million,forthesameperiod.Forpurposesof
calculatingearningspershare,wehad,onaweighted-averagebasis,commonsharesoutstandingof728million,participatingsecuritiesofapproximately8million,
anddilutivesharesof11millionduringtheyearendedDecember31,2015.
Year Ended December 31, 2015
Netevenues $ 4,664 $ (43) $ — $ — $ — $ 4,621
CostofSales-ProductCosts 921 (32) — — — 889
CostofSales-Online 224 — — — — 224
CostofSales-SoftwareoyaltiesandAmortiation 412 (55) (15) — — 342
CostofSales-ntellectualPropertyicenses 28 5 — (11) — 22
ProductDevelopment 646 — (25) — — 621
SalesandMareting 734 — (9)— — 725
GeneralandAdministrative 380 — (43)— (5)332
TotalCostsandExpenses $ 3,345 $ (82) $ (92) $ (11) $ (5) $ 3,155
Year Ended December 31, 2015
Operatingncome $ 1,319 $ 39 $ 92 $ 11 $ 5 $ 1,466
Netncome 892 19 65 8 5 989
asicEarningsperShare 1.21 0.02 0.09 0.01 0.01 1.34
DilutedEarningsperShare $ 1.19 $ 0.02 $ 0.09 $ 0.01 $ 0.01 $ 1.32
Less:
Net effect from
deferral of net
revenues and related
cost of sales 1
Less:
Stock-
based
compensation 2
Less:
Amortization
of intangi ble
assets 3
Less:
Fees and other
exp enses related to
acquisitions 4
GAAP
Measurement
Non-GAAP
Measurement
Less:
Net effect from
deferral of net
revenues and related
cost of sales 1
Less:
Stock-
based
compensation 2
Less:
Amortization
of intangi ble
assets 3
Less:
Fees and other
exp enses related to
acquisitions 4
GAAP
Measurement
Non-GAAP
Measurement
84
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