Blizzard 2015 Annual Report Download - page 104

1 eectsthenetchangeindeferredrevenuesandrelatedcostofsales.
2 ncludesexpensesrelatedtostoc-basedcompensation.
3 eectsamortiationofintangibleassetsfrompurchasepriceaccounting.
4 eectsfeesandotherexpenses(includinglegalfees,costs,expensesandaccruals)relatedtotherepurchaseof429millionsharesofourcommonstoc
fromivendi(thePurchaseTransaction)completedonOctober11,2013andrelateddebtnancings.
Thepershareadustments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impacofrounding.
Thecompanycalculatesearningspersharepursuanttothetwo-classmethodwhichreuirestheallocationofnetincomebetweencommonshareholdersand
participatingsecurityholders.NetincomeattributabletoActivisionliardnc.commonshareholdersusedtocalculatenon-GAAPearningspercommonshare
assumingdilutionwas$976millionfortheyearendedDecember31,2013ascomparedtototalnon-GAAPnetincomeof$999millionforthesameperiod.
Forpurposeofcalculationofearningspershare,wehad,onaweighted-averagebasis,commonsharesoutstandingof1,024million,participatingsecuritiesof
approximately24million,anddilutivesharesof11millionduringtheyearendedDecember31,2013.
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)
Year Ended December 31, 2013
Netevenues $ 4,583 $ (241) $ — $ — $ — $ 4,342
CostofSales-ProductCosts 1,053 (10) — — — 1,043
CostofSales-Online 204 — — — — 204
CostofSales-SoftwareoyaltiesandAmortiation 187 2 (17) — — 172
CostofSales-ntellectualPropertyicenses 87 (4) — (23) — 60
ProductDevelopment 584 — (33) — — 551
SalesandMareting 606 — (7) — — 599
GeneralandAdministrative 490 — (53) — (79)   358
TotalCostsandExpenses $ 3,211 $ (12) $ (110) $ (23) $ (79)  $ 2,987
Year Ended December 31, 2013
Operatingncome $ 1,372 $ (229) $ 110 $ 23 $ 79 $ 1,355
Netncome 1,010 (150) 71 14 54 999
asicEarningsperShare 0.96 (0.14) 0.07 0.01 0.05 0.95
DilutedEarningsperShare $ 0.95 $ (0.14) $ 0.07 $ 0.01 $ 0.05 $ 0.94
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 the
Purchase Transaction
and related
debt nancings 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
GAAP
Measurement
Non-GAAP
Measurement
Less:
Fees and other
exp enses related to the
Purchase Transaction
and related
debt nancings 4
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