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Proxy Statement
APPENDIX A
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY
COMPARABLE GAAP FINANCIAL MEASURES
The Proxy Statement Summary and Highlights and the Compensation Discussion and Analysis in this Proxy
Statement contain non-GAAP financial measures. The table below reconciles these non-GAAP financial
measures to the most directly comparable financial measures prepared in accordance with U.S. Generally
Accepted Accounting Principles (“GAAP”):
Fiscal Year Ended
March 31, 2014
(In millions, except per
share data, unaudited)
GAAP net revenue ......................................................... $3,575
Change in deferred net revenue (online-enabled games) .......................... 446
Non-GAAP net revenue ..................................................... $4,021
GAAP total digital net revenue ............................................... $1,833
Change in deferred net revenue (online-enabled games) .......................... (40)
Non-GAAP total digital net revenue .......................................... $1,793
GAAP mobile and handheld digital net revenue ................................ $ 406
Change in deferred net revenue (online-enabled games) .......................... 53
Non-GAAP mobile and handheld digital net revenue ............................ $ 459
GAAP gross profit ......................................................... $2,228
Acquisition-related expenses ................................................ 60
Change in deferred net revenue (online-enabled games) .......................... 446
Stock-based compensation .................................................. 2
Non-GAAP gross profit ..................................................... $2,736
GAAP operating income .................................................... $33
Acquisition-related expenses ................................................ 41
Change in deferred net revenue (online-enabled games) .......................... 446
College football settlement expenses .......................................... 48
Restructuring and other .................................................... (1)
Stock-based compensation .................................................. 150
Non-GAAP operating income ................................................ $ 717
GAAP operating income % (as a % of GAAP net revenue) ........................ 1%
Non-GAAP operating income % (as a % of non-GAAP net revenue) ................. 18%
GAAP operating expenses ................................................... $2,195
Acquisition-related expenses ................................................ 19
College football settlement expenses .......................................... (48)
Restructuring and other .................................................... 1
Stock-based compensation .................................................. (148)
Non-GAAP operating expenses .............................................. $2,019
GAAP net income .......................................................... $8
Acquisition-related expenses ................................................ 41
Amortization of debt discount ............................................... 21
Change in deferred net revenue (online-enabled games) .......................... 446
College football settlement expenses .......................................... 48
Restructuring and other .................................................... (1)
Stock-based compensation ................................................. 150
Income tax adjustments .................................................... (179)
Non-GAAP diluted net income ............................................... $ 534
GAAP diluted earnings per share ............................................ $ 0.03
Non-GAAP diluted earnings per share ........................................ $ 1.69
Number of diluted shares used in computation
GAAP .................................................................. 316
Non-GAAP ............................................................. 316
A-1