Xbox 360, PS3, PC
October 1, 2013*
Xbox 360, PS3
October 29, 2013*
Borderlands 2: Ultimate Vault Hunter Upgrade Pack 2: Digistruct
Peak Challenge (DLC)
Xbox 360, PS3, PC
Xbox One, PS4
BioShock Infinite: Burial at Sea (DLC)
Xbox 360, PS3, PC
*North American release date; international release date typically
follows three days after.Conference Call
Take-Two will host a conference call today at 4:30 p.m. Eastern Time
review these results and discuss other topics. The call can be accessed
by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast
of the call will be available by visiting http://ir.take2games.com
and a replay will be available following the call at the same location.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S.
generally accepted accounting principles (GAAP), the Company uses
Non-GAAP measures of financial performance. The Company believes that
these Non-GAAP financial measures, when taken into consideration with
the corresponding GAAP financial measures, are important in gaining an
understanding of the Company’s ongoing business. These Non-GAAP
financial measures also provide for comparative results from period to
period. Therefore, the Company believes it is appropriate to exclude the
impact of certain items as follows:
Net effect from deferral in net revenues - the Company defers
revenue and related costs from the sale of certain titles that have
undelivered elements upon the sale of the game and recognizes that
revenue upon the delivery of the undelivered elements. As there is no
impact to the Company’s operating cash flow, management excludes the
impact of deferred net revenue and related costs from its Non-GAAP
financial measures when evaluating the Company's operating
performance, when planning, forecasting and analyzing future periods,
and when assessing the performance of its management team. In
addition, we believe that these Non-GAAP financial measures provide a
more timely indication of trends in our business, provide
comparability with the way our business is measured by analysts, and
provide consistency with industry data sources.
Stock-based compensation – the Company does not consider
stock-based compensation charges when evaluating business performance
and management does not contemplate stock-based compensation expense
in its short- and long-term operating plans. As a result, the Company
has excluded such expenses from its Non-GAAP financial measures.
Income (loss) from discontinued operations – the Company does
not engage in sales of subsidiaries on a regular basis and therefore
believes it is appropriate to exclude such gains (losses) from its
Non-GAAP financial measures. As the Company is no longer active in its
discontinued operations, it believes it is appropriate to exclude
income (losses) thereon from its Non-GAAP financial measures.
Non-cash amortization of discount on convertible notes – the
Company records non-cash amortization of discount on convertible notes
as interest expense in addition to the interest expense already
recorded for coupon payments. The Company excludes the non-cash
portion of the interest expense from its Non-GAAP financial measures
because these amounts are unrelated to its ongoing business operations.
Gain (loss) on change in fair value of convertible note hedge and
warrant transactions – the Company entered into unwind agreements
with respect to its convertible note hedge and warrant transactions.
These transactions are now accounted for as derivatives whereby gains
and losses resulting from changes in the fair value are reported in
interest and other, net. The Company excludes the impact of such
transactions when evaluating the Company’s operating performance.
Management does not believe these gains and losses reflect the
Company's primary business, ongoing operating results or future
outlook. As such, the Company believes it is appropriate to exclude
these gains and losses from its Non-GAAP financial measures.
Non-cash tax expense for the impact of deferred tax liabilities
associated with tax deductible amortization of goodwill – due to
the nature of the adjustment as well as the expectation that it will
not have any cash impact in the foreseeable future, the Company
believes it is appropriate to exclude this expense from its Non-GAAP