Spreadsheet: f7e4b931-3e65-46f9-9996-79d05af4fe14
Sheet: QTD P&L

ACTIVISION BLIZZARD INC.
Unaudited Condensed Consolidated Statements of Operations
(in millions, except per share data)
GAAP Income Statements
 |  |  |  | Q3(i) | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1
 |  |  |  | CY08 | CY08 | CY09 | CY09 | CY09 | CY09 | CY10 | CY10 | CY10 | CY10 | CY11 | CY11 | CY11 | CY11 | CY12
 | Net revenues |  |  | 711 | 1639 | 981 | 1038 | 703 | 1557 | 1308 | 967 | 745 | 1427 | 1449 | 1146 | 754 | 1407 | 1172
 | Costs and expenses:
 |  | Cost of sales - product costs |  | 279 | 805 | 296 | 281 | 185 | 670 | 337 | 235 | 194 | 585 | 299 | 213 | 138 | 483 | 257
 |  | Cost of sales - online subscriptions |  | 43 | 53 | 52 | 51 | 55 | 54 |  |  | 61 | 73 | 63 | 59 | 59 | 58 | 59
 |  | Cost of sales - software royalties and amortization |  | 50 | 179 | 72 | 86 | 54 | 136 | 99 | 51 | 61 | 128 | 61 | 47 | 24 | 85 | 31
 |  | Cost of sales - intellectual property licenses |  | 36 | 174 | 64 | 54 | 45 | 152 | 43 | 29 | 33 | 92 | 29 | 24 | 16 | 96 | 7
 |  | Product development |  | 200 | 196 | 117 | 123 | 122 | 265 |  |  |  |  | 142 | 116 | 133 | 256 | 124
 |  | Sales and marketing |  | 142 | 244 | 83 | 118 | 128 | 215 | 56 |  |  |  |  | 90 |  |  | 79
 |  | General and administrative |  | 94 | 104 | 103 | 92 | 106 | 94 |  |  |  |  |  | 127 |  |  | 102
 |  | Restructuring |  | 61 | 32 | 15 | 15 | -1 | -6 | 0 | 0 | 0 | 0 | 19 | 3 | 3 |  | 0
 |  | Impairment of intangible assets |  | 0 | 0 | 0 | 0 | 0 | 409 | 0 | 0 | 0 | 326 | 0 | 0 | 0 | 0 | 0
 |  |  | Total costs and expenses
 | Operating income (loss)
 | Investment and other income (expense), net |  |  | 24 | 18 | 10 | 0 | 11 | -3 | 0 | 1 | 14 | 8 | 2 | 2 | 3 | -5 | 1
 | Income (loss) before income tax expense
 | Income tax (benefit) expense |  |  | -62 | -58 | 0 | 23 | 5 | -149 | 130 | 82 | 18 | -156 | 173 | 134 | 17 | -79 | 130
 | Net income (loss)
 | GAAP earnings (loss) per share
 |  | Basic |  | -0.08 | -0.05 | 0.14 | 0.15 | 0.01 | -0.23 | 0.3 | 0.18 | 0.04 | -0.2 | 0.42 | 0.29 | 0.13 | 0.09 | 0.34
 |  | Diluted |  | -0.08 | -0.05 | 0.14 | 0.15 | 0.01 | -0.23 | 0.3 | 0.17 | 0.04 | -0.2 | 0.42 | 0.29 | 0.13 | 0.08 | 0.33
 | Number of shares used in computation
 |  | Basic |  | 1271 | 1326 | 1308 | 1289 | 1271 | 1265 | 1248 | 1232 | 1212 | 1198 | 1173 | 1141 | 1140 | 1139 | 1120
 |  | Diluted |  | 1271 | 1326 | 1359 | 1332 | 1297 | 1265 | 1264 | 1248 | 1227 | 1198 | 1182 | 1150 | 1148 | 1147 | 1127
GAAP Income Statements - as a % of Revenue
 |  |  |  | Q3(i)
 | Costs and expenses:
 |  | Cost of sales - product costs
 |  | Cost of sales - online subscriptions
 |  | Cost of sales - software royalties and amortization
 |  | Cost of sales - intellectual property licenses
 |  | Product development
 |  | Sales and marketing
 |  | General and administrative
 |  | Restructuring
 |  | Impairment of intangible assets
 |  |  | Total costs and expenses
 | Operating income (loss)
 | Investment and other income (expense), net
 | Income (loss) before income tax expense
 | Income tax (benefit) expense
 | Net income (loss)
 | (i) Results of Activision Blizzard for the period from July 9, 2008 (commencement of the Business Combination) to September 30, 2008 and Vivendi Games for period from July 1, 2008 to July 8, 2008.
Non-GAAP Income Statements
 |  |  |  | Q3(i)
 |  |  |  | CY08
 | Net revenues |  |  | 717 | 2343 | 724 | 801 | 755 | 2495 | 714 | 683 | 857 | 2548 | 755 | 699 | 627 | 2408 | 587
 | Costs and expenses:
 |  | Cost of sales - product costs |  | 270 | 933 | 238 | 237 | 204 | 863 | 203 | 166 | 196 | 783 | 167 | 135 | 128 | 690 | 138
 |  | Cost of sales - online subscriptions |  | 43 | 53 | 52 | 51 | 55 | 54 | 56 | 53 | 61 | 73 | 63 | 59 | 59 | 58 | 59
 |  | Cost of sales - software royalties and amortization |  | 25 | 165 | 28 | 36 | 74 | 107 | 29 | 52 | 53 | 153 | 15 | 12 | 14 | 119 | 10
 |  | Cost of sales - intellectual property licenses |  | 14 | 75 | 28 | 28 | 26 | 44 | 17 | 18 | 25 | 40 | 7 | 12 | 7 | 45 | 3
 |  | Product development |  | 102 | 176 | 111 | 116 | 111 | 253 | 132 | 105 |  |  | 136 | 111 | 128 | 231 | 120
 |  | Sales and marketing |  | 91 | 233 | 78 | 114 | 131 | 216 | 54 | 123 |  |  |  | 92 | 113 | 279 | 77
 |  | General and administrative |  | 50 | 64 | 70 | 63 | 79 | 74 | 58 | 65 |  |  |  | 113 | 93 | 96 | 90
 |  |  | Total costs and expenses
 | Operating income (loss)
 | Investment and other income (expense), net |  |  | 24 | 18 | 10 | 0 | 3 | -3 | 0 | 1 | 14 | 8 | 2 | 2 | 3 | -5 | 1
 | Income (loss) before income tax expense
 | Income tax (benefit) expense |  |  | 54 | 233 | 18 | 44 |  | 249 | 49 | 30 |  |  | 64 | 49 | 1 | 160 | 24
 | Net income (loss)
 | Non-GAAP earnings (loss) per share
 |  | Basic |  | 0.07 | 0.32 | 0.08 | 0.09 | 0.04 | 0.5 | 0.09 | 0.06 | 0.12 | 0.54 | 0.13 | 0.1 | 0.07 | 0.63 | 0.06
 |  | Diluted |  | 0.07 | 0.31 | 0.08 | 0.08 | 0.04 | 0.49 | 0.09 | 0.06 | 0.12 | 0.53 | 0.13 | 0.1 | 0.07 | 0.62 | 0.06
Non-GAAP Income Statements - as a % of Revenue
 |  |  |  | Q3(i)
 | Costs and expenses:
 |  | Cost of sales - product costs
 |  | Cost of sales - online subscriptions
 |  | Cost of sales - software royalties and amortization
 |  | Cost of sales - intellectual property licenses
 |  | Product development
 |  | Sales and marketing
 |  | General and administrative
 |  |  | Total costs and expenses
 | Operating income (loss)
 | Investment and other income (expense), net
 | Income (loss) before income tax expense
 | Income tax (benefit) expense
 | Net income (loss)
 | (i) Results of Activision Blizzard for the period from July 9, 2008 (commencement of the Business Combination) to September 30, 2008 and Vivendi Games for period from July 1, 2008 to July 8, 2008.