Confused about deferrals in EA/TTWO/ATVI

Last semester of college brings a lot of free time, so I've been studying the video game industry in the meantime... Sorry if this is generally common sense.

What exactly does "impact of GAAP deferrals" mean as stated in ATVI's releases?

For instance, in Q3, GAAP net revenues were $1512m and $146m of GAAP deferrals. And when you add them up, it's $1.66b net bookings. But, why do you add them when ATVI says net bookings is "equal to net revenues EXCLUDING the impact from deferrals"? Shouldn't that mean you subtract $1512m and $146m to get net bookings?

Furthermore, GAAP EPS was $0.34 and non-GAAP EPS was $0.42. The impact from deferrals was $0.10. But, obviously $0.34 + $0.10 does not equal $0.42. What am I missing here?

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Feb 8, 2019
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