Activision Blizzard (ATVI)

Stock Option Activities

        We have assumed the stock options granted to employees and directors by Activision, Inc. as a result of the Business Combination. Stock option activities for the year ended December 31, 2008 are as follows (amounts in millions, except number of shares in thousands and per share amounts):

        The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between our closing stock price on the last trading day of the period and the exercise price, times the number of shares for options where the exercise price is below the closing stock price) that would have been received by the option holders had all option holders exercised their options on that date. This amount changes as it is based on the fair market value of our stock. Total intrinsic value of options actually exercised was $53 million for the year ended December 31, 2008.

        At December 31, 2008, $109 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 1.4 years.

        Net cash proceeds from the exercise of stock options were $22 million for the year ended December 31, 2008. Income tax benefit (or excess tax benefits) from stock option exercises was $21 million for the year ended December 31, 2008, of which $19 million and $2 million was credited to goodwill and additional paid in capital, respectively. In accordance with SFAS No. 123R, we present excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating cash flows.

Stock Option Activities

        We have assumed the stock options granted to employees and directors by Activision, Inc. as a result of the Business
Combination. Stock option activities for the year ended December 31, 2008 are as follows (amounts in millions, except number of shares in thousands and per share amounts):

        The
aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between our closing stock price on the last trading day of the
period and the exercise price, times the number of shares for options where the exercise price is below the closing stock price) that would have been received by the option holders had all option
holders exercised their options on that date. This amount changes as it is based on the fair market value of our stock. Total intrinsic value of options actually exercised was $53 million for
the year ended December 31, 2008.

        At
December 31, 2008, $109 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of
1.4 years.

        Net
cash proceeds from the exercise of stock options were $22 million for the year ended December 31, 2008. Income tax benefit (or excess tax benefits) from stock option
exercises was $21 million for the year ended December 31, 2008, of which $19 million and $2 million was credited to goodwill and additional paid in capital, respectively.
In accordance with SFAS No. 123R, we present excess tax benefits from the exercise of stock options, if any, as financing cash flows rather than operating cash flows.