Spreadsheet: f7e4b931-3e65-46f9-9996-79d05af4fe14
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 - Online Subscriptions | 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 |  |  | 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 | Net Income | 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 - Online Subscriptions | 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 | Net Income | 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
 | Three Months Ended September 30, 2011 |  |  | Net Revenues | 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 | Total Costs and Expenses
 | GAAP Measurement |  |  | 754 | 138 | 59 | 24 | 16 | 133 | 115 | 104 | 3
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | -127 | -10 | 0 | -10 | -2 | 0 | 0 | 0 | 0
 |  | Less:  Stock-based compensation | (b) | 0 | 0 | 0 | 0 | 0 | -5 | -2 | -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 | Net Income | Basic Earnings (Loss) per Share | Diluted Earnings (Loss) per Share
 | GAAP Measurement |  |  |  | 148 | 0.13 | 0.13
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) |  | -81 | -0.07 | -0.07
 |  | Less:  Stock-based compensation | (b) |  | 13 | 0.01 | 0.01
 |  | Less:  Restructuring | (c) |  | 2 | 0 | 0
 |  | Less:  Amortization of intangible assets | (d) |  | 5 | 0 | 0
 | Non-GAAP Measurement |  |  |  |  | 0.07 | 0.07
 | Three Months Ended December 31, 2011 |  |  | Net Revenues | 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 | Total Costs and Expenses
 | GAAP Measurement |  |  | 1407 | 483 | 58 | 85 | 96 | 256 | 281 | 122 | 1
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | 1001 | 209 | 0 | 37 | -3 | 0 | 0 | 0 | 0
 |  | Less:  Stock-based compensation | (b) | 0 | 0 | 0 | -3 | 0 | -25 | -2 | -13 | 0
 |  | Less:  Restructuring | (c) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1 | -1
 |  | Less:  Amortization of intangible assets | (d) | 0 | -2 | 0 | 0 | -48 | 0 | 0 | 0 | 0
 |  | Less:  Impairment of goodwill | (e) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -12 | 0
 | Non-GAAP Measurement
 |  |  |  | Operating Income | Net Income | Basic Earnings per Share | Diluted Earnings per Share
 | GAAP Measurement |  |  |  | 99 | 0.09 | 0.08
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) |  | 549 | 0.47 | 0.47
 |  | Less:  Stock-based compensation | (b) |  | 33 | 0.03 | 0.03
 |  | Less:  Restructuring | (c) |  | 1 | 0 | 0
 |  | Less:  Amortization of intangible assets | (d) |  | 31 | 0.03 | 0.03
 |  | Less:  Impairment of goodwill | (e) |  | 12 | 0.01 | 0.01
 | Non-GAAP Measurement |  |  |  |  | 0.63 | 0.62
 |  | (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.
 |  | (d) Reflects impairment of goodwill.
 |  | 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.