Spreadsheet: 273b6b81-5121-4348-a562-319be0aee87b
Sheet: GAAP to Non-GAAP Measures 2011

 | [NAME], INC. AND SUBSIDIARIES
 | RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES
 | (Amounts in millions, except earnings per share data)
 | Three Months Ended March 31, 2011 |  |  | 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 | Restructuring | Total Costs and Expenses
 | GAAP Measurement |  |  | 1449 | 299 | 63 | 61 | 29 | 142 | 64 | 98 | 19
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | -694 | -132 | 0 | -42 | -14 | 0 | 0 | 0 | 0
 |  | Less:  Stock-based compensation | (b) | 0 | 0 | 0 | -4 | 0 | -6 | -1 | -12 | 0
 |  | Less:  Restructuring | (c) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -19
 |  | Less:  Amortization of intangible assets | (d) | 0 | 0 | 0 | 0 | -8 | 0 | 0 | 0 | 0
 | Non-GAAP Measurement
 |  |  |  | Operating Income (Loss) | Net Income (Loss) | Basic Earnings (Loss) per Share | Diluted Earnings (Loss) per Share
 | GAAP Measurement |  |  |  | 503 | 0.42 | 0.42
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) |  | -381 | -0.32 | -0.32
 |  | Less:  Stock-based compensation | (b) |  | 15 | 0.01 | 0.01
 |  | Less:  Restructuring | (c) |  | 14 | 0.01 | 0.01
 |  | Less:  Amortization of intangible assets | (d) |  | 5 | 0 | 0
 | Non-GAAP Measurement |  |  |  |  | 0.13 | 0.13
 | Three Months Ended June 30, 2011 |  |  | 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 | Restructuring | Total Costs and Expenses
 | GAAP Measurement |  |  | 1146 | 213 | 59 | 47 | 24 | 116 | 90 | 127 | 3
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | -447 | -78 | 0 | -32 | -5 | 0 | 0 | 0 | 0
 |  | Less:  Stock-based compensation | (b) | 0 | 0 | 0 | -3 | 0 | -5 | -1 | -11 | 0
 |  | Less:  Restructuring | (c) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3
 |  | Less:  Amortization of intangible assets | (d) | 0 | 0 | 0 | 0 | -7 | 0 | 0 | 0 | 0
 | Non-GAAP Measurement
 |  |  |  | Operating Income (Loss) | Net Income (Loss) | Basic Earnings (Loss) per Share | Diluted Earnings (Loss) per Share
 | GAAP Measurement |  |  |  | 335 | 0.29 | 0.29
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | -332 | -238 | -0.21 | -0.2
 |  | Less:  Stock-based compensation | (b) |  | 15 | 0.01 | 0.01
 |  | Less:  Restructuring | (c) |  | 2 | 0 | 0
 |  | Less:  Amortization of intangible assets | (d) |  | 4 | 0 | 0
 | Non-GAAP Measurement |  |  |  |  | 0.1 | 0.1
 |  | (a) Reflects the net change in deferred net revenues and related cost of sales.
 |  | (b) Includes expense related to stock-based compensation.
 |  | (c) Reflects restructuring related to our Activision Publishing operations.
 |  | (d) Reflects amortization of intangible assets from purchase price accounting.
 |  | 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.