Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-15839 | |
Entity Registrant Name | ACTIVISION BLIZZARD, INC. | |
Entity Central Index Key | 0000718877 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4803544 | |
Entity Address, Address Line One | 3100 Ocean Park Boulevard | |
Entity Address, City or Town | Santa Monica, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90405 | |
City Area Code | 310 | |
Local Phone Number | 255-2000 | |
Title of 12(b) Security | Common Stock, par value $0.000001 per share | |
Trading Symbol | ATVI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 768,260,070 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 4,939 | $ 4,225 |
Accounts receivable, net of allowances of $81 and $190, at September 30, 2019 and December 31, 2018, respectively | 386 | 1,035 |
Inventories, net | 102 | 43 |
Software development | 240 | 264 |
Other current assets | 345 | 539 |
Total current assets | 6,012 | 6,106 |
Software development | 109 | 65 |
Property and equipment, net | 249 | 282 |
Deferred income taxes, net | 357 | 458 |
Other assets | 731 | 482 |
Intangible assets, net | 583 | 735 |
Goodwill | 9,764 | 9,762 |
Total assets | 17,805 | 17,890 |
Current liabilities: | ||
Accounts payable | 274 | 253 |
Deferred revenues | 695 | 1,493 |
Accrued expenses and other liabilities | 782 | 896 |
Total current liabilities | 1,751 | 2,642 |
Long-term debt, net | 2,674 | 2,671 |
Deferred income taxes, net | 23 | 18 |
Other liabilities | 1,122 | 1,167 |
Total liabilities | 5,570 | 6,498 |
Commitments and contingencies (Note 19) | ||
Shareholders’ equity: | ||
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,196,802,874 and 1,192,093,991 shares issued at September 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Additional paid-in capital | 11,116 | 10,963 |
Less: Treasury stock, at cost, 428,676,471 shares at September 30, 2019 and December 31, 2018 | (5,563) | (5,563) |
Retained earnings | 7,289 | 6,593 |
Accumulated other comprehensive loss | (607) | (601) |
Total shareholders’ equity | 12,235 | 11,392 |
Total liabilities and shareholders’ equity | $ 17,805 | $ 17,890 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowances | $ 81 | $ 190 |
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized (in shares) | 2,400,000,000 | 2,400,000,000 |
Common stock, shares issued (in shares) | 1,196,802,874 | 1,192,093,991 |
Treasury stock, shares (in shares) | 428,676,471 | 428,676,471 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net revenues | ||||
Net revenues | $ 1,282 | $ 1,512 | $ 4,503 | $ 5,119 |
Cost of revenues—product sales and subscription, licensing, and other revenues: | ||||
Product development | 210 | 263 | 702 | 776 |
Sales and marketing | 182 | 263 | 580 | 741 |
General and administrative | 177 | 208 | 527 | 623 |
Restructuring and related costs | 24 | 0 | 104 | 0 |
Total costs and expenses | 1,035 | 1,247 | 3,350 | 3,825 |
Operating income | 247 | 265 | 1,153 | 1,294 |
Interest and other expense (income), net (Note 15) | (2) | 13 | (33) | 67 |
Loss on extinguishment of debt | 0 | 40 | 0 | 40 |
Income before income tax expense (benefit) | 249 | 212 | 1,186 | 1,187 |
Income tax expense (benefit) | 45 | (48) | 208 | 25 |
Net income | $ 204 | $ 260 | $ 978 | $ 1,162 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.34 | $ 1.28 | $ 1.53 |
Diluted (in dollars per share) | $ 0.26 | $ 0.34 | $ 1.27 | $ 1.51 |
Weighted-average number of shares outstanding | ||||
Basic (in shares) | 767 | 763 | 766 | 761 |
Diluted (in shares) | 771 | 771 | 770 | 771 |
Product sales | ||||
Net revenues | ||||
Net revenues | $ 260 | $ 263 | $ 1,276 | $ 1,447 |
Product costs | ||||
Cost of revenues—product sales and subscription, licensing, and other revenues: | ||||
Cost of revenues | 137 | 127 | 388 | 416 |
Software royalties, amortization, and intellectual property licenses | ||||
Cost of revenues—product sales and subscription, licensing, and other revenues: | ||||
Cost of revenues | 9 | 20 | 171 | 214 |
Subscription, licensing, and other revenues | ||||
Net revenues | ||||
Net revenues | 1,022 | 1,249 | 3,227 | 3,672 |
Game operations and distribution costs | ||||
Cost of revenues—product sales and subscription, licensing, and other revenues: | ||||
Cost of revenues | 246 | 257 | 714 | 777 |
Software royalties, amortization, and intellectual property licenses | ||||
Cost of revenues—product sales and subscription, licensing, and other revenues: | ||||
Cost of revenues | $ 50 | $ 109 | $ 164 | $ 278 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 204 | $ 260 | $ 978 | $ 1,162 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of tax | (6) | 3 | (5) | (7) |
Unrealized gains (losses) on forward contracts designated as hedges, net of tax | 10 | (11) | 4 | 25 |
Unrealized gains (losses) on investments, net of tax | (3) | 0 | (5) | 4 |
Total other comprehensive income (loss) | 1 | (8) | (6) | 22 |
Comprehensive income | $ 205 | $ 252 | $ 972 | $ 1,184 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash flows from operating activities: | |||
Net income | $ 978 | $ 1,162 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | 100 | 175 | |
Depreciation and amortization | 246 | 385 | |
Non-cash operating lease cost | 49 | 0 | |
Amortization of capitalized software development costs and intellectual property licenses | [1] | 163 | 238 |
Loss on extinguishment of debt | 0 | 40 | |
Share-based compensation expense | [2] | 127 | 164 |
Unrealized gain on equity investment (Note 8) | (38) | 0 | |
Other | 47 | 20 | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 635 | 290 | |
Inventories | (65) | (127) | |
Software development and intellectual property licenses | (186) | (305) | |
Other assets | 17 | (15) | |
Deferred revenues | (809) | (710) | |
Accounts payable | 22 | (14) | |
Accrued expenses and other liabilities | (373) | (512) | |
Net cash provided by operating activities | 913 | 791 | |
Cash flows from investing activities: | |||
Proceeds from maturities of available-for-sale investments | 153 | 0 | |
Purchases of available-for-sale investments | 0 | (59) | |
Capital expenditures | (79) | (97) | |
Other investing activities | 5 | (4) | |
Net cash provided by (used in) investing activities | 79 | (160) | |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock to employees | 87 | 91 | |
Tax payment related to net share settlements on restricted stock units | (55) | (85) | |
Dividends paid | (283) | (259) | |
Repayment of long-term debt | 0 | (1,740) | |
Premium payment for early redemption of note | 0 | (25) | |
Other financing activities | 0 | (2) | |
Net cash used in financing activities | (251) | (2,020) | |
Effect of foreign exchange rate changes on cash and cash equivalents | (24) | (15) | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 717 | (1,404) | |
Cash and cash equivalents and restricted cash at beginning of period | 4,229 | 4,720 | |
Cash and cash equivalents and restricted cash at end of period | $ 4,946 | $ 3,316 | |
[1] | Excludes deferral and amortization of share-based compensation expense. | ||
[2] | Includes the net effects of capitalization, deferral, and amortization of share-based compensation expense. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2017 | $ 9,462 | $ 0 | $ (5,563) | $ 10,747 | $ 4,916 | $ (638) |
Balance (in shares) at Dec. 31, 2017 | 1,186 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 500 | 500 | ||||
Other comprehensive income (loss) | (14) | (14) | ||||
Issuance of common stock pursuant to employee stock options | 47 | 47 | ||||
Issuance of common stock pursuant to employee stock options (in shares) | 3 | |||||
Issuance of common stock pursuant to restricted stock units | 0 | 0 | ||||
Issuance of common stock pursuant to restricted stock units (in shares) | 2 | |||||
Restricted stock surrendered for employees’ tax liability | (64) | (64) | ||||
Restricted stock surrendered for employees' tax liability (in shares) | (1) | |||||
Share-based compensation expense related to employee stock options and restricted stock units | 56 | 56 | ||||
Dividends ($0.37 and $0.34 per common share) | (259) | (259) | ||||
Ending balance at Mar. 31, 2018 | 9,819 | $ 0 | $ (5,563) | 10,786 | 5,245 | (649) |
Balance (in shares) at Mar. 31, 2018 | 1,190 | 429 | ||||
Beginning balance at Dec. 31, 2017 | 9,462 | $ 0 | $ (5,563) | 10,747 | 4,916 | (638) |
Balance (in shares) at Dec. 31, 2017 | 1,186 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 1,162 | |||||
Other comprehensive income (loss) | 22 | |||||
Ending balance at Sep. 30, 2018 | 10,659 | $ 0 | $ (5,563) | 10,928 | 5,907 | (613) |
Balance (in shares) at Sep. 30, 2018 | 1,192 | 429 | ||||
Beginning balance at Mar. 31, 2018 | 9,819 | $ 0 | $ (5,563) | 10,786 | 5,245 | (649) |
Balance (in shares) at Mar. 31, 2018 | 1,190 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 402 | 402 | ||||
Other comprehensive income (loss) | 44 | 44 | ||||
Issuance of common stock pursuant to employee stock options | 30 | 30 | ||||
Issuance of common stock pursuant to employee stock options (in shares) | 1 | |||||
Restricted stock surrendered for employees’ tax liability | (10) | (10) | ||||
Restricted stock surrendered for employees' tax liability (in shares) | 0 | |||||
Share-based compensation expense related to employee stock options and restricted stock units | 61 | 61 | ||||
Ending balance at Jun. 30, 2018 | 10,346 | $ 0 | $ (5,563) | 10,867 | 5,647 | (605) |
Balance (in shares) at Jun. 30, 2018 | 1,191 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 260 | 260 | ||||
Other comprehensive income (loss) | (8) | (8) | ||||
Issuance of common stock pursuant to employee stock options | 16 | 16 | ||||
Issuance of common stock pursuant to employee stock options (in shares) | 1 | |||||
Restricted stock surrendered for employees’ tax liability | (12) | (12) | ||||
Restricted stock surrendered for employees' tax liability (in shares) | 0 | |||||
Share-based compensation expense related to employee stock options and restricted stock units | 57 | 57 | ||||
Ending balance at Sep. 30, 2018 | 10,659 | $ 0 | $ (5,563) | 10,928 | 5,907 | (613) |
Balance (in shares) at Sep. 30, 2018 | 1,192 | 429 | ||||
Beginning balance at Dec. 31, 2018 | 11,392 | $ 0 | $ (5,563) | 10,963 | 6,593 | (601) |
Balance (in shares) at Dec. 31, 2018 | 1,192 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 447 | 447 | ||||
Other comprehensive income (loss) | (1) | (1) | ||||
Issuance of common stock pursuant to employee stock options | 30 | 30 | ||||
Issuance of common stock pursuant to employee stock options (in shares) | 2 | |||||
Issuance of common stock pursuant to restricted stock units | 0 | 0 | ||||
Issuance of common stock pursuant to restricted stock units (in shares) | 2 | |||||
Restricted stock surrendered for employees’ tax liability | (45) | (45) | ||||
Restricted stock surrendered for employees' tax liability (in shares) | (1) | |||||
Share-based compensation expense related to employee stock options and restricted stock units | 56 | 56 | ||||
Dividends ($0.37 and $0.34 per common share) | (283) | (283) | ||||
Ending balance at Mar. 31, 2019 | 11,596 | $ 0 | $ (5,563) | 11,004 | 6,757 | (602) |
Balance (in shares) at Mar. 31, 2019 | 1,195 | 429 | ||||
Beginning balance at Dec. 31, 2018 | 11,392 | $ 0 | $ (5,563) | 10,963 | 6,593 | (601) |
Balance (in shares) at Dec. 31, 2018 | 1,192 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 978 | |||||
Other comprehensive income (loss) | (6) | |||||
Ending balance at Sep. 30, 2019 | 12,235 | $ 0 | $ (5,563) | 11,116 | 7,289 | (607) |
Balance (in shares) at Sep. 30, 2019 | 1,197 | 429 | ||||
Beginning balance at Mar. 31, 2019 | 11,596 | $ 0 | $ (5,563) | 11,004 | 6,757 | (602) |
Balance (in shares) at Mar. 31, 2019 | 1,195 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 328 | 328 | ||||
Other comprehensive income (loss) | (6) | (6) | ||||
Issuance of common stock pursuant to employee stock options | 28 | 28 | ||||
Issuance of common stock pursuant to employee stock options (in shares) | 1 | |||||
Restricted stock surrendered for employees’ tax liability | (4) | (4) | ||||
Restricted stock surrendered for employees' tax liability (in shares) | 0 | |||||
Share-based compensation expense related to employee stock options and restricted stock units | 35 | 35 | ||||
Ending balance at Jun. 30, 2019 | 11,977 | $ 0 | $ (5,563) | 11,063 | 7,085 | (608) |
Balance (in shares) at Jun. 30, 2019 | 1,196 | 429 | ||||
Components of comprehensive income: | ||||||
Net income | 204 | 204 | ||||
Other comprehensive income (loss) | 1 | 1 | ||||
Issuance of common stock pursuant to employee stock options | 29 | 29 | ||||
Issuance of common stock pursuant to employee stock options (in shares) | 1 | |||||
Restricted stock surrendered for employees’ tax liability | (8) | (8) | ||||
Restricted stock surrendered for employees' tax liability (in shares) | 0 | |||||
Share-based compensation expense related to employee stock options and restricted stock units | 32 | 32 | ||||
Ending balance at Sep. 30, 2019 | $ 12,235 | $ 0 | $ (5,563) | $ 11,116 | $ 7,289 | $ (607) |
Balance (in shares) at Sep. 30, 2019 | 1,197 | 429 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | Feb. 12, 2019 | Feb. 08, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in dollars per share) | $ 0.37 | $ 0.34 | $ 0.37 | $ 0.34 |
Description of Business and Bas
Description of Business and Basis of Consolidation and Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Consolidation and Presentation | Description of Business and Basis of Consolidation and Presentation Activision Blizzard, Inc. is a leading global developer and publisher of interactive entertainment content and services. We develop and distribute content and services on video game consoles, personal computers (“PC”s), and mobile devices. We also operate esports leagues and events and create film and television content based on our intellectual property. The terms “Activision Blizzard,” the “Company,” “we,” “us,” and “our” are used to refer collectively to Activision Blizzard, Inc. and its subsidiaries. The Company was originally incorporated in California in 1979 and was reincorporated in Delaware in December 1992. In connection with the 2008 business combination by and among the Company (then known as Activision, Inc.), Vivendi S.A., and Vivendi Games, Inc., then an indirect wholly-owned subsidiary of Vivendi S.A., we were renamed Activision Blizzard, Inc. Our Segments Based upon our organizational structure, we conduct our business through three reportable segments, as follows: (i) Activision Publishing, Inc. Activision Publishing, Inc. (“Activision”) is a leading global developer and publisher of interactive software products and entertainment content, particularly for the console platform. Activision primarily delivers content through retail and digital channels, including full-game and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision products. Activision develops, markets, and sells products primarily based on our internally developed intellectual properties, as well as some licensed properties. Activision’s key product franchise is Call of Duty ® , a first-person shooter for the console and PC platforms. Also, on October 1, 2019, in collaboration with Tencent, Activision released Call of Duty: Mobile for the mobile platform, including for Google Inc.’s (“Google”) Android and Apple Inc.’s (“Apple”) iOS. In 2010, Activision entered into an exclusive relationship with Bungie, Inc. (“Bungie”) to publish games in the Destiny franchise. Effective December 31, 2018, Activision and Bungie mutually agreed to terminate their publishing relationship related to the Destiny franchise. As part of this termination, Activision agreed to transfer its publishing rights for the Destiny franchise to Bungie in exchange for cash and Bungie’s assumption of on-going customer obligations of Activision. Activision no longer has any material rights or obligations related to the Destiny franchise. (ii) Blizzard Entertainment, Inc. Blizzard Entertainment, Inc. (“Blizzard”) is a leading global developer and publisher of interactive software products and entertainment content, particularly for the PC platform. Blizzard primarily delivers content through retail and digital channels, including subscriptions, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Blizzard products. Blizzard also maintains a proprietary online gaming service, Blizzard Battle.net ® , which facilitates digital distribution of Blizzard content and selected Activision content, online social connectivity, and the creation of user-generated content. Blizzard also includes the activities of the Overwatch League TM , the first major global professional esports league with city-based teams, and our Major League Gaming (“MLG”) business, which is responsible for various esports events and serves as a multi-platform network for Activision Blizzard esports content. Blizzard’s key product franchises include: World of Warcraft ® , a subscription-based massive multi-player online role-playing game for the PC platform; StarCraft ® , a real-time strategy franchise for the PC platform; Diablo ® , an action role-playing franchise for the PC and console platforms; Hearthstone ® , an online collectible card franchise for the PC and mobile platforms; and Overwatch ® , a team-based first-person shooter for the PC and console platforms. (iii) King Digital Entertainment King Digital Entertainment (“King”) is a leading global developer and publisher of interactive entertainment content and services, primarily for the mobile platform, including for Google’s Android and Apple’s iOS. King also distributes its content and services on the PC platform, primarily via Facebook. King’s games are free to play; however, players can acquire in-game items, either with virtual currency or real currency, and we continue to focus on in-game advertising as a growing source of additional revenue. King’s key product franchises, all of which are for the mobile and PC platforms, include: Candy Crush™, which features “match three” games; Farm Heroes™, which also features “match three” games; and Bubble Witch™, which features “bubble shooter” games. Other We also engage in other businesses that do not represent reportable segments, including: • the Activision Blizzard Studios (“Studios”) business, which is devoted to creating original film and television content based on our library of globally recognized intellectual properties, and which, in September 2018, released the third season of the animated TV series Skylanders ™ Academy on Netflix; and • the Activision Blizzard Distribution (“Distribution”) business, which consists of operations in Europe that provide warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, our own publishing operations, and manufacturers of interactive entertainment hardware. Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been condensed or omitted if they substantially duplicate the disclosures contained in our annual audited consolidated financial statements. Additionally, the year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. In the opinion of management, all adjustments considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP (consisting of normal recurring adjustments) have been included in the accompanying unaudited condensed consolidated financial statements. Actual results could differ from these estimates and assumptions. The accompanying condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated. The Company considers events or transactions that occur after the balance sheet date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. During the three months ended March 31, 2019, we identified an error principally related to the initial recognition of global intangible low-taxed income of foreign subsidiaries income taxes which should have been recorded in the three months and year ended December 31, 2018. Income tax expense for the three months and year ended December 31, 2018 should have been reduced by $35 million . This amount is not material to the consolidated financial statements for the year ended December 31, 2018, and we will revise our 2018 consolidated financial statements to correct this matter in our Annual Report on Form 10-K for the year ending December 31, 2019. Our condensed consolidated balance sheet as of December 31, 2018, as presented in this Form 10-Q, has been revised to reflect the correction of this error. Supplemental Cash Flow Information The beginning and ending cash and cash equivalents and restricted cash reported within our condensed consolidated statement of cash flows included restricted cash amounts as follows (amounts in millions): At September 30, 2019 2018 Beginning restricted cash $ 4 $ 7 Ending restricted cash 7 8 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Adoption of Accounting Standards Codification (“ASC”) 842: Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the accounting for leases. The new standard replaces all current U.S. GAAP guidance on this topic. The new standard, among other things, requires a lessee to classify a lease as either an operating or financing lease, and to recognize a lease liability and a right-of-use (“ROU”) asset for its leases. On January 1, 2019, we adopted the new lease accounting standard. As a result, we have updated our significant accounting policy disclosure to include our accounting policy for leases under the new standard. Refer to Note 3 for information about the impact of adoption on our condensed consolidated financial statements. Leases We determine if an arrangement is or contains a lease at contract inception. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the landlords of our leases. The operating lease ROU asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are depreciated on a straight-line basis over the estimated life of the asset, not to exceed the length of the lease, with interest expense associated with finance lease liabilities recorded using the effective interest method. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. For our real estate, server and data center, and event production and broadcasting equipment leases, we elected the practical expedient to account for the lease and non-lease components as a single lease component. In all other lease arrangements, we account for lease and non-lease components separately. Additionally, for certain leases that have a group of leased assets with similar characteristics in size and composition, we may apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. Finance lease ROU assets are presented in “Property and equipment, net” and finance lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements Leases As noted in Note 2 above, we adopted the new lease accounting standard effective January 1, 2019. We elected to apply an optional adoption method, which uses the effective date as the initial date of application on transition with no retrospective adjustments to prior periods. Additionally, we elected to apply the package of transition practical expedients which permitted us to, among other things, (1) not reassess if existing contracts contained leases under the new lease accounting standard and (2) carry forward our historical lease classifications. The impact from the adoption of the new lease accounting standard to our condensed consolidated balance sheet at January 1, 2019, was as follows (amounts in millions): Condensed Consolidated Balance Sheet: Balance at December 31, 2018 Adjustments due to adoption of new lease accounting standard Balance at January 1, 2019 Assets Other current assets $ 539 $ (8 ) $ 531 Other assets 482 252 734 Liabilities Accrued expenses and other liabilities $ 896 $ 54 $ 950 Other liabilities 1,167 190 1,357 The adoption of this standard did not have an impact on our condensed consolidated statement of operations or condensed consolidated statements of cash flows. Recent Accounting Pronouncements Not Yet Adopted Goodwill In January 2017, the FASB issued new guidance that eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, that entity will be required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit, as determined in Step 1 from the goodwill impairment test, with its carrying amount and recognize an impairment charge, if any, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019, and should be applied prospectively. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. We do not currently expect this new accounting guidance to have an impact on our financial statements upon adoption. Cloud Computing Arrangements In August 2018, the FASB issued new guidance related to a customer’s accounting for implementation costs incurred in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract. The new guidance requires customers to capitalize implementation costs for these arrangements by applying the same criteria that are utilized for existing internal-use software guidance. The capitalized costs are required to be amortized over the associated term of the arrangement, generally on a straight-line basis, with amortization of these costs presented in the same financial statement line item as other costs associated with the arrangement. The new standard is effective for fiscal years beginning after December 15, 2019, and can be applied retrospectively or prospectively. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The update replaces the existing incurred loss impairment model with an expected loss model which requires the use of historical and forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will generally result in earlier recognition of credit losses. The new standard is effective for fiscal years beginning after December 15, 2019, and will be applied on a modified retrospective basis, with the cumulative effect of adoption recorded as an adjustment to retained earnings. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements, however, our preliminary conclusion is that the new guidance will not have a material impact on our financial statements and related disclosures. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories, net, consist of the following (amounts in millions): At September 30, 2019 At December 31, 2018 Finished goods $ 82 $ 40 Purchased parts and components 20 3 Inventories, net $ 102 $ 43 At September 30, 2019 and December 31, 2018 , inventory reserves were $13 million and $22 million , respectively. |
Software Development and Intell
Software Development and Intellectual Property Licenses | 9 Months Ended |
Sep. 30, 2019 | |
Software Development Costs and Intellectual Property Licenses | |
Software Development and Intellectual Property Licenses | Software Development and Intellectual Property Licenses The following table summarizes the components of our capitalized software development costs (amounts in millions): At September 30, 2019 At December 31, 2018 Internally-developed software costs $ 325 $ 291 Payments made to third-party software developers 24 38 Total software development costs $ 349 $ 329 As of both September 30, 2019 and December 31, 2018 , capitalized intellectual property licenses were not material. Amortization of capitalized software development costs and intellectual property licenses was as follows (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Amortization of capitalized software development costs and intellectual property licenses $ 11 $ 33 $ 175 $ 242 |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net Intangible assets, net, consist of the following (amounts in millions): At September 30, 2019 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (1,086 ) $ 68 Developed software 2 - 5 years 601 (548 ) 53 Trade names 7 - 10 years 54 (28 ) 26 Other 1 - 15 years 19 (16 ) 3 Total definite-lived intangible assets (1) $ 1,828 $ (1,678 ) $ 150 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 583 (1) Beginning with the first quarter of 2019, the balances of the customer base intangible assets have been removed as such amounts were fully amortized in the prior year. At December 31, 2018 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (1,032 ) $ 122 Developed software 2 - 5 years 601 (456 ) 145 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (23 ) 31 Other 1 - 15 years 19 (15 ) 4 Total definite-lived intangible assets $ 2,445 $ (2,143 ) $ 302 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 735 Amortization expense of our intangible assets was $50 million and $152 million for the three and nine months ended September 30, 2019 , respectively. Amortization expense of our intangible assets was $84 million and $280 million for the three and nine months ended September 30, 2018 , respectively. At September 30, 2019 , future amortization of definite-lived intangible assets is estimated as follows (amounts in millions): For the years ending December 31, 2019 (remaining three months) $ 52 2020 74 2021 12 2022 7 2023 2 Thereafter 3 Total $ 150 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows (amounts in millions): Activision Blizzard King Total Balance at December 31, 2018 $ 6,897 $ 190 $ 2,675 $ 9,762 Other 1 — 1 2 Balance at September 30, 2019 $ 6,898 $ 190 $ 2,676 $ 9,764 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB literature regarding fair value measurements for certain assets and liabilities establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or other inputs that are observable or can be corroborated by observable market data; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Fair Value Measurements on a Recurring Basis The table below segregates all of our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions): Fair Value Measurements at September 30, 2019 Using As of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 4,616 $ 4,616 $ — $ — Cash and cash equivalents Foreign government treasury bills 36 36 — — Cash and cash equivalents Foreign currency forward contracts designated as hedges 23 — 23 — Other current assets Foreign currency forward contracts not designated as hedges 8 — 8 — Other current assets Total recurring fair value measurements $ 4,683 $ 4,652 $ 31 $ — Financial Liabilities: Foreign currency forward contracts not designated as hedges $ (4 ) $ — $ (4 ) $ — Accrued expenses and other liabilities Fair Value Measurements at December 31, 2018 Using As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 3,925 $ 3,925 $ — $ — Cash and cash equivalents Foreign government treasury bills 32 32 — — Cash and cash equivalents U.S. treasuries and government agency securities 150 150 — — Other current assets Foreign currency forward contracts designated as hedges 13 — 13 — Other current assets Foreign currency forward contracts not designated as hedges 1 — 1 — Other current assets Total recurring fair value measurements $ 4,121 $ 4,107 $ 14 $ — Financial Liabilities: Foreign currency forward contracts designated as hedges $ (1 ) $ — $ (1 ) $ — Accrued expenses and other liabilities Foreign Currency Forward Contracts Foreign Currency Forward Contracts Designated as Hedges (“Cash Flow Hedges”) The total gross notional amounts and fair values of our Cash Flow Hedges are as follows (amounts in millions): As of September 30, 2019 As of December 31, 2018 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell Euro $ 310 $ 23 $ 723 $ 12 At September 30, 2019 , our Cash Flow Hedges have remaining maturities of three months or less. Additionally, $2 million of net realized but unrecognized gains are recorded within “Accumulated other comprehensive income (loss)” at September 30, 2019 for Cash Flow Hedges that had settled but were deferred and will be amortized into earnings, along with the associated hedged revenues . Such amounts will be reclassified into earnings within the next 12 months. The amount of pre-tax net realized gains (losses) associated with our Cash Flow Hedges that were reclassified out of “Accumulated other comprehensive income (loss)” and into earnings was as follows (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, Statement of Operations Classification 2019 2018 2019 2018 Cash Flow Hedges $ 7 $ 3 $ 24 $ (11 ) Net revenues Foreign Currency Forward Contracts Not Designated as Hedges The gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions): As of September 30, 2019 As of December 31, 2018 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell EUR $ 81 $ 5 $ — $ — Buy EUR, Sell USD 79 (3 ) — — Buy USD, Sell SEK 46 2 — — Buy SEK, Sell USD 45 (1 ) — — Buy USD, Sell GBP 13 1 55 1 Buy GBP, Sell USD 13 — — — For the three and nine months ended September 30, 2019 and 2018 , pre-tax net gains (losses) associated with these forward contracts were recorded in “General and administrative expenses” and were not material. Fair Value Measurements on a Non-Recurring Basis We measure the fair value of certain assets on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. During the three months ended June 30, 2019, we recorded an upward adjustment of $38 million to an investment in equity securities, which has been historically recorded at cost, based on an observable and orderly transaction in the common stock of the investee. We recognized a corresponding unrealized gain within “Interest and other expense (income), net” in our condensed consolidated statement of operations. As of September 30, 2019 , the carrying value of the investment is $42 million and is recorded in “Other assets” on our condensed consolidated balance sheet. We classify this investment as Level 3 in the fair value hierarchy as we estimated the value based on valuation methods using the observable transaction price in a market with limited activity. For the three and nine months ended September 30, 2019 and 2018 , there were no impairment charges related to assets that are measured on a non-recurring basis. |
Deferred revenues
Deferred revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenues | Deferred revenues We record deferred revenues when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The opening balance of deferred revenues as of January 1, 2019 and the ending balance as of September 30, 2019 , were $1.6 billion and $0.8 billion , respectively, including our current and non-current balances. For the nine months ended September 30, 2019 , the additions to our deferred revenues balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenues balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the three and nine months ended September 30, 2019 , $0.1 billion and $1.4 billion of revenues, respectively, were recognized that were included in the deferred revenues balance at December 31, 2018. During the three and nine months ended September 30, 2018 , $0.1 billion and $1.6 billion of revenues, respectively, were recognized that were included in the deferred revenues balance at January 1, 2018, as adjusted for the adoption of the new revenue standard in the prior year. As of September 30, 2019 , the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $2.5 billion , which includes our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.4 billion over the next 12 months, $0.4 billion in the subsequent 12-month period, and the remainder thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Our lease arrangements are primarily for: (1) corporate, administrative, and development studio offices; (2) data centers and server equipment; and (3) live event production equipment. Our existing leases have remaining lease terms ranging from one year to 10 years . In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one year to five years for each option. The exercise of lease renewal options is generally at our sole discretion. Additionally, the majority of our leases are classified as operating leases; our financing leases are not material. Components of our lease costs are as follows (amounts in millions): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating leases Operating lease costs $ 19 $ 58 Variable lease costs 6 16 Supplemental information related to our operating leases is as follows (amounts in millions): Nine Months Ended September 30, 2019 Supplemental Operating Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities $ 61 ROU assets obtained in exchange for new lease obligations 55 At September 30, 2019 Weighted Average Lease terms and discount rates Remaining lease term 5.15 years Discount rate 4.09 % Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at September 30, 2019 , are as follows (amounts in millions): For the years ending December 31, 2019 (remaining three months) $ 14 2020 74 2021 56 2022 48 2023 42 Thereafter 74 Total future lease payments $ 308 Less imputed interest (32 ) Total lease liabilities $ 276 As of September 30, 2019 , we have entered into facility leases that have not yet commenced with future lease payments of approximately $57 million . These leases are expected to commence within the next 12 months and will have lease terms ranging from two years to five years . Operating lease ROU assets and liabilities recorded on our condensed consolidated balance sheet as of September 30, 2019 , were as follows (amounts in millions): At September 30, 2019 Balance Sheet Classification ROU assets $ 238 Other assets Current lease liabilities $ 61 Accrued expenses and other current liabilities Non-current lease liabilities 215 Other liabilities $ 276 Total lease liabilities Future minimum lease payments as of December 31, 2018, prior to our adoption of the new lease accounting standard, were as follows: For the years ending December 31, 2019 $ 80 2020 70 2021 53 2022 45 2023 38 Thereafter 60 Total $ 346 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facilities As of September 30, 2019 and December 31, 2018 , we had $1.5 billion available under a revolving credit facility (the “Revolver”) pursuant to a credit agreement entered into on October 11, 2013 (as amended thereafter and from time to time, the “Credit Agreement”). To date, we have not drawn on the Revolver, and we were in compliance with the terms of the Credit Agreement as of September 30, 2019 . Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 2018 for further details regarding the Credit Agreement, its key terms, and previous amendments made to it. Unsecured Senior Notes At September 30, 2019 and December 31, 2018 , we had the following unsecured senior notes outstanding: • $650 million of 2.3% unsecured senior notes due September 2021 (the “2021 Notes”); • $400 million of 2.6% unsecured senior notes due June 2022 (the “2022 Notes”); • $850 million of 3.4% unsecured senior notes due September 2026 (the “2026 Notes”); • $400 million of 3.4% unsecured senior notes due June 2027 (the “2027 Notes”); and • $400 million of 4.5% unsecured senior notes due June 2047 (the “2047 Notes”, and together with the 2021 Notes, the 2022 Notes, the 2026 Notes, and the 2027 Notes, the “Notes”). The Notes are general senior obligations of the Company and rank pari passu in right of payment to all of the Company’s existing and future senior indebtedness, including the Revolver described above. The Notes are not secured and are effectively junior to any of the Company’s existing and future indebtedness that is secured to the extent of the value of the collateral securing such indebtedness. We were in compliance with the terms of the Notes as of September 30, 2019 . Interest is payable semi-annually in arrears on March 15 and September 15 of each year for the 2021 Notes and the 2026 Notes, and payable semi-annually in arrears on June 15 and December 15 of each year for the 2022 Notes, the 2027 Notes, and the 2047 Notes. Accrued interest payable is recorded within “Accrued expenses and other liabilities” in our condensed consolidated balance sheets. As of September 30, 2019 and December 31, 2018 , we had accrued interest payable of $14 million and $15 million , respectively, related to the Notes. Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 2018 for further details regarding key terms under our indentures that govern the Notes. Interest Expense and Financing Costs Fees and discounts associated with the issuance of our debt instruments are recorded as debt discount, which reduces their respective carrying values, and are amortized over their respective terms. Amortization expense is recorded within “Interest and other expense (income), net” in our condensed consolidated statement of operations. For the three and nine months ended September 30, 2019 , interest expense was $21 million and $64 million , respectively, and amortization of the debt discount and deferred financing costs was $1 million and $3 million , respectively. For the three and nine months ended September 30, 2018 , interest expense was $32 million and $113 million , respectively, and amortization of the debt discount and deferred financing costs was $1 million and $5 million , respectively. A summary of our outstanding debt is as follows (amounts in millions): At September 30, 2019 Gross Carrying Amount Unamortized Net Carrying 2021 Notes $ 650 $ (2 ) $ 648 2022 Notes 400 (2 ) 398 2026 Notes 850 (8 ) 842 2027 Notes 400 (5 ) 395 2047 Notes 400 (9 ) 391 Total long-term debt $ 2,700 $ (26 ) $ 2,674 At December 31, 2018 Gross Carrying Unamortized Net Carrying 2021 Notes $ 650 $ (3 ) $ 647 2022 Notes 400 (3 ) 397 2026 Notes 850 (8 ) 842 2027 Notes 400 (5 ) 395 2047 Notes 400 (10 ) 390 Total long-term debt $ 2,700 $ (29 ) $ 2,671 As of September 30, 2019 , the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years and thereafter are as follows (amounts in millions): For the years ending December 31, 2019 (remaining three months) $ — 2020 — 2021 650 2022 400 2023 — Thereafter 1,650 Total $ 2,700 With the exception of the 2047 Notes, using Level 2 inputs (i.e., observable market prices in less-than-active markets) at September 30, 2019 , the carrying values of the Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At September 30, 2019 , based on Level 2 inputs, the fair value of the 2047 Notes was $454 million . Using Level 2 inputs at December 31, 2018 , the carrying values of the 2021 Notes and the 2022 Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At December 31, 2018 , based on Level 2 inputs, the fair values of the 2026 Notes, the 2027 Notes, and the 2047 Notes were $800 million , $376 million , and $360 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows (amounts in millions): For the Nine Months Ended September 30, 2019 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2018 $ (629 ) $ 23 $ 5 $ (601 ) Other comprehensive income (loss) before reclassifications (5 ) 28 3 26 Amounts reclassified from accumulated other comprehensive income (loss) into earnings — (24 ) (8 ) (32 ) Balance at September 30, 2019 $ (634 ) $ 27 $ — $ (607 ) For the Nine Months Ended September 30, 2018 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2017 $ (623 ) $ (15 ) $ — $ (638 ) Cumulative impact from adoption of new revenue accounting standard 3 — — 3 Other comprehensive income (loss) before reclassifications (7 ) 14 4 11 Amounts reclassified from accumulated other comprehensive income (loss) into earnings — 11 — 11 Balance at September 30, 2018 $ (627 ) $ 10 $ 4 $ (613 ) |
Operating Segments and Geograph
Operating Segments and Geographic Region | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Region | Operating Segments and Geographic Region Currently, we have three reportable segments—Activision, Blizzard, and King. Our operating segments are consistent with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense; amortization of intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, expenses, and accruals) related to acquisitions, associated integration activities, and financings; certain restructuring and related costs; and certain other non-cash charges. The CODM does not review any information regarding total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto. Our operating segments are also consistent with our internal organizational structure, the way we assess operating performance and allocate resources, and the availability of separate financial information. We do not aggregate operating segments. Information on reportable segment net revenues and operating income for the three months ended September 30, 2019 and 2018 , are presented below (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 209 $ 392 $ 500 $ 1,101 Intersegment net revenues (1) — 2 — 2 Segment net revenues $ 209 $ 394 $ 500 $ 1,103 Segment operating income $ 26 $ 74 $ 194 $ 294 Three Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 397 $ 627 $ 506 $ 1,530 Intersegment net revenues (1) — 8 — 8 Segment net revenues $ 397 $ 635 $ 506 $ 1,538 Segment operating income $ 112 $ 189 $ 184 $ 485 Information on reportable segment net revenues and operating income for the nine months ended September 30, 2019 and 2018 , are presented below (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 794 $ 1,113 $ 1,527 $ 3,434 Intersegment net revenues (1) — 9 — 9 Segment net revenues $ 794 $ 1,122 $ 1,527 $ 3,443 Segment operating income $ 153 $ 204 $ 543 $ 900 Nine Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 1,047 $ 1,592 $ 1,542 $ 4,181 Intersegment net revenues (1) — 14 — 14 Segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 4,195 Segment operating income $ 288 $ 444 $ 543 $ 1,275 (1) Intersegment revenues reflect licensing and service fees charged between segments. Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Reconciliation to consolidated net revenues: Segment net revenues $ 1,103 $ 1,538 $ 3,443 $ 4,195 Revenues from non-reportable segments (1) 113 128 245 246 Net effect from recognition (deferral) of deferred net revenues (2) 68 (146 ) 824 692 Elimination of intersegment revenues (3) (2 ) (8 ) (9 ) (14 ) Consolidated net revenues $ 1,282 $ 1,512 $ 4,503 $ 5,119 Reconciliation to consolidated income before income tax expense: Segment operating income $ 294 $ 485 $ 900 $ 1,275 Operating income (loss) from non-reportable segments (1) 5 7 10 (4 ) Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2) 53 (89 ) 629 468 Share-based compensation expense (27 ) (55 ) (127 ) (166 ) Amortization of intangible assets (50 ) (83 ) (151 ) (279 ) Restructuring and related costs (4) (28 ) — (108 ) — Consolidated operating income 247 265 1,153 1,294 Interest and other expense (income), net (2 ) 13 (33 ) 67 Loss on extinguishment of debt — 40 — 40 Consolidated income before income tax expense $ 249 $ 212 $ 1,186 $ 1,187 (1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes unallocated corporate income and expenses. (2) Reflects the net effect from recognition (deferral) of deferred net revenues, along with related cost of revenues, on certain of our online-enabled products. (3) Intersegment revenues reflect licensing and service fees charged between segments. (4) Reflects restructuring initiatives, primarily severance and other restructuring-related costs. Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the three months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 179 $ 335 $ 502 $ — $ (2 ) $ 1,014 Retail channels 73 20 — — — 93 Other (2) — 62 — 113 — 175 Total consolidated net revenues $ 252 $ 417 $ 502 $ 113 $ (2 ) $ 1,282 Change in deferred revenues: Digital online channels (1) $ (16 ) $ (21 ) $ (2 ) $ — $ — $ (39 ) Retail channels (27 ) (2 ) — — — (29 ) Other (2) — — — — — — Total change in deferred revenues $ (43 ) $ (23 ) $ (2 ) $ — $ — $ (68 ) Segment net revenues: Digital online channels (1) $ 163 $ 314 $ 500 $ — $ (2 ) $ 975 Retail channels 46 18 — — — 64 Other (2) — 62 — 113 — 175 Total segment net revenues $ 209 $ 394 $ 500 $ 113 $ (2 ) $ 1,214 Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 299 $ 480 $ 505 $ — $ (8 ) $ 1,276 Retail channels 53 23 — — — 76 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Digital online channels (1) $ 57 $ 101 $ 1 $ — $ — $ 159 Retail channels (12 ) (2 ) — — — (14 ) Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Digital online channels (1) $ 356 $ 581 $ 506 $ — $ (8 ) $ 1,435 Retail channels 41 21 — — — 62 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the nine months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 894 $ 1,081 $ 1,527 $ — $ (9 ) $ 3,493 Retail channels 548 51 — — — 599 Other (2) — 157 — 254 — 411 Total consolidated net revenues $ 1,442 $ 1,289 $ 1,527 $ 254 $ (9 ) $ 4,503 Change in deferred revenues: Digital online channels (1) $ (285 ) $ (159 ) $ — $ — $ — $ (444 ) Retail channels (363 ) (10 ) — — — (373 ) Other (2) — 2 — (9 ) — (7 ) Total change in deferred revenues $ (648 ) $ (167 ) $ — $ (9 ) $ — $ (824 ) Segment net revenues: Digital online channels (1) $ 609 $ 922 $ 1,527 $ — $ (9 ) $ 3,049 Retail channels 185 41 — — — 226 Other (2) — 159 — 245 — 404 Total segment net revenues $ 794 $ 1,122 $ 1,527 $ 245 $ (9 ) $ 3,679 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 1,110 $ 1,355 $ 1,547 $ — $ (14 ) $ 3,998 Retail channels 707 57 — — — 764 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Digital online channels (1) $ (234 ) $ 79 $ (5 ) $ — $ — $ (160 ) Retail channels (536 ) (10 ) — — — (546 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Digital online channels (1) $ 876 $ 1,434 $ 1,542 $ — $ (14 ) $ 3,838 Retail channels 171 47 — — — 218 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 (1) Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties. (2) Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments. Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 141 $ 204 $ 311 $ — $ (1 ) $ 655 EMEA (1) 79 124 137 113 (1 ) 452 Asia Pacific 32 89 54 — — 175 Total consolidated net revenues $ 252 $ 417 $ 502 $ 113 $ (2 ) $ 1,282 Change in deferred revenues: Americas $ (20 ) $ (11 ) $ (2 ) $ — $ — $ (33 ) EMEA (1) (16 ) (10 ) — — — (26 ) Asia Pacific (7 ) (2 ) — — — (9 ) Total change in deferred revenues $ (43 ) $ (23 ) $ (2 ) $ — $ — $ (68 ) Segment net revenues: Americas $ 121 $ 193 $ 309 $ — $ (1 ) $ 622 EMEA (1) 63 114 137 113 (1 ) 426 Asia Pacific 25 87 54 — — 166 Total segment net revenues $ 209 $ 394 $ 500 $ 113 $ (2 ) $ 1,214 Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 214 $ 242 $ 309 $ 13 $ (4 ) $ 774 EMEA (1) 109 172 143 112 (2 ) 534 Asia Pacific 29 124 53 — (2 ) 204 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Americas $ 33 $ 43 $ — $ — $ — $ 76 EMEA (1) 8 48 1 3 — 60 Asia Pacific 4 6 — — — 10 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Americas $ 247 $ 285 $ 309 $ 13 $ (4 ) $ 850 EMEA (1) 117 220 144 115 (2 ) 594 Asia Pacific 33 130 53 — (2 ) 214 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 852 $ 613 $ 946 $ — $ (5 ) $ 2,406 EMEA (1) 457 400 417 254 (3 ) 1,525 Asia Pacific 133 276 164 — (1 ) 572 Total consolidated net revenues $ 1,442 $ 1,289 $ 1,527 $ 254 $ (9 ) $ 4,503 Change in deferred revenues: Americas $ (390 ) $ (80 ) $ 1 $ — $ — $ (469 ) EMEA (1) (205 ) (71 ) — (9 ) — (285 ) Asia Pacific (53 ) (16 ) (1 ) — — (70 ) Total change in deferred revenues $ (648 ) $ (167 ) $ — $ (9 ) $ — $ (824 ) Segment net revenues: Americas $ 462 $ 533 $ 947 $ — $ (5 ) $ 1,937 EMEA (1) 252 329 417 245 (3 ) 1,240 Asia Pacific 80 260 163 — (1 ) 502 Total segment net revenues $ 794 $ 1,122 $ 1,527 $ 245 $ (9 ) $ 3,679 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 1,074 $ 716 $ 945 $ 13 $ (8 ) $ 2,740 EMEA (1) 613 497 448 220 (4 ) 1,774 Asia Pacific 130 323 154 — (2 ) 605 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Americas $ (439 ) $ 43 $ (3 ) $ — $ — $ (399 ) EMEA (1) (287 ) 34 (2 ) 13 — (242 ) Asia Pacific (44 ) (7 ) — — — (51 ) Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Americas $ 635 $ 759 $ 942 $ 13 $ (8 ) $ 2,341 EMEA (1) 326 531 446 233 (4 ) 1,532 Asia Pacific 86 316 154 — (2 ) 554 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 (1) “EMEA” consists of the Europe, Middle East, and Africa geographic regions. (2) Intersegment revenues reflect licensing and service fees charged between segments. The Company’s net revenues in the U.S. were 46% of consolidated net revenues for both the three months ended September 30, 2019 and 2018 . The Company’s net revenues in the U.K. were 13% of consolidated net revenues for both the three months ended September 30, 2019 and 2018 . No other country’s net revenues exceeded 10% of consolidated net revenues for either the three months ended September 30, 2019 or 2018 . The Company’s net revenues in the U.S. were 48% and 47% of consolidated net revenues for the nine months ended September 30, 2019 and 2018 , respectively. The Company’s net revenues in the U.K. were 10% and 11% of consolidated net revenues for the nine months ended September 30, 2019 and 2018 , respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for either the nine months ended September 30, 2019 or 2018 . Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 214 $ 27 $ — $ — $ — $ 241 PC 29 286 28 — (2 ) 341 Mobile and ancillary (1) 9 42 474 — — 525 Other (2) — 62 — 113 — 175 Total consolidated net revenues $ 252 $ 417 $ 502 $ 113 $ (2 ) $ 1,282 Change in deferred revenues: Console $ (36 ) $ (9 ) $ — $ — $ — $ (45 ) PC (7 ) (14 ) — — — (21 ) Mobile and ancillary (1) — — (2 ) — — (2 ) Other (2) — — — — — — Total change in deferred revenues $ (43 ) $ (23 ) $ (2 ) $ — $ — $ (68 ) Segment net revenues: Console $ 178 $ 18 $ — $ — $ — $ 196 PC 22 272 28 — (2 ) 320 Mobile and ancillary (1) 9 42 472 — — 523 Other (2) — 62 — 113 — 175 Total segment net revenues $ 209 $ 394 $ 500 $ 113 $ (2 ) $ 1,214 Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 307 $ 40 $ — $ — $ — $ 347 PC 40 414 36 — (8 ) 482 Mobile and ancillary (1) 5 49 469 — — 523 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Console $ 29 $ (9 ) $ — $ — $ — $ 20 PC 16 101 — — — 117 Mobile and ancillary (1) — 7 1 — — 8 Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Console $ 336 $ 31 $ — $ — $ — $ 367 PC 56 515 36 — (8 ) 599 Mobile and ancillary (1) 5 56 470 — — 531 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 1,222 $ 102 $ — $ — $ — $ 1,324 PC 204 909 92 — (9 ) 1,196 Mobile and ancillary (1) 16 121 1,435 — — 1,572 Other (2) — 157 — 254 — 411 Total consolidated net revenues $ 1,442 $ 1,289 $ 1,527 $ 254 $ (9 ) $ 4,503 Change in deferred revenues: Console $ (563 ) $ (26 ) $ — $ — $ — $ (589 ) PC (84 ) (133 ) (1 ) — — (218 ) Mobile and ancillary (1) (1 ) (10 ) 1 — — (10 ) Other (2) — 2 — (9 ) — (7 ) Total change in deferred revenues $ (648 ) $ (167 ) $ — $ (9 ) $ — $ (824 ) Segment net revenues: Console $ 659 $ 76 $ — $ — $ — $ 735 PC 120 776 91 — (9 ) 978 Mobile and ancillary (1) 15 111 1,436 — — 1,562 Other (2) — 159 — 245 — 404 Total segment net revenues $ 794 $ 1,122 $ 1,527 $ 245 $ (9 ) $ 3,679 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 1,597 $ 133 $ — $ — $ — $ 1,730 PC 208 1,140 118 — (14 ) 1,452 Mobile and ancillary (1) 12 139 1,429 — — 1,580 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Console $ (695 ) $ (25 ) $ — $ — $ — $ (720 ) PC (76 ) 96 — — — 20 Mobile and ancillary (1) 1 (2 ) (5 ) — — (6 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Console $ 902 $ 108 $ — $ — $ — $ 1,010 PC 132 1,236 118 — (14 ) 1,472 Mobile and ancillary (1) 13 137 1,424 — — 1,574 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 (1) Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform specific game-related revenues, such as standalone sales of physical merchandise and accessories. (2) Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments. Long-lived assets by geographic region were as follows (amounts in millions): At September 30, 2019 At December 31, 2018 Long-lived assets (1) by geographic region: Americas $ 179 $ 203 EMEA 58 62 Asia Pacific 12 17 Total long-lived assets by geographic region $ 249 $ 282 (1) The only long-lived assets that we classify by region are our long-term tangible fixed assets, which consist of property, plant, and equipment assets; all other long-term assets are not allocated by location. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring On February 12, 2019, the Company committed to a Board-authorized restructuring plan under which the Company aims to refocus its resources on its largest opportunities and to remove unnecessary levels of complexity and duplication from certain parts of the business. We have been, and will continue: • increasing our investment in development for our largest, internally-owned franchises—across upfront releases, in-game content, mobile, and geographic expansion; • reducing certain non-development and administrative-related costs across our business; and • integrating our global and regional sales and “go-to-market,” partnerships, and sponsorships capabilities across the business, which we believe will enable us to provide better opportunities for talent, and greater expertise and scale on behalf of our business units. The restructuring actions are in process and are largely expected to be completed by the end of 2019, although the timing of cash payments may continue into 2020. The following table summarizes accrued restructuring and related costs included in “Accrued expenses and other liabilities” in our condensed consolidated balance sheet (amounts in millions): Severance and employee related costs Facilities and related costs Other costs Total Balance at December 31, 2018 $ — $ — $ — $ — Costs charged to expense 43 — 14 57 Cash payments (11 ) — (1 ) (12 ) Non-cash charge adjustment (1) — — (11 ) (11 ) Balance at March 31, 2019 $ 32 $ — $ 2 $ 34 Costs charged to expense 9 9 4 22 Cash payments (15 ) — (5 ) (20 ) Non-cash charge adjustment (1) — (9 ) — (9 ) Balance at June 30, 2019 $ 26 $ — $ 1 $ 27 Costs charged to expense 5 13 6 24 Cash payments (8 ) — (3 ) (11 ) Non-cash charge adjustment (1) — (13 ) — (13 ) Balance at September 30, 2019 $ 23 $ — $ 4 $ 27 (1) Adjustments relate to non-cash charges included in “Costs charged to expense” for the write-down of assets from canceled projects during the three months ended March 31, 2019, and the write-down of lease facility assets, inclusive of lease right-of-use assets and associated fixed assets, that were vacated during the three months ended June 30, 2019 and September 30, 2019. Total restructuring and related costs by segment are (amounts in millions): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Activision $ 1 $ 12 Blizzard 12 52 King 4 17 Other segments (1) 7 23 Total $ 24 $ 104 (1) Includes charges related to operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes restructuring charges for our corporate and administrative functions. During the three months ended September 30, 2019, we also recorded $4 million to write-down inventory resulting from changes to certain of our consumer product activities as part of our restructuring actions, whereby those activities will now operate under a licensing business model rather than being direct sales. This write-down is recorded within “Cost of revenues—product sales: Product costs” in our condensed consolidated statement of operations. We expect to incur aggregate pre-tax restructuring charges of approximately $150 million in 2019 associated with the restructuring plan, which includes the inventory write-down discussed above. These charges will primarily relate to severance (approximately 55% of the aggregate charge), including, in many cases, amounts above those that are legally required, facilities costs (approximately 20% of the aggregate charge), and other asset write-downs and costs (approximately 25% of the aggregate charge). A majority of the total pre-tax charge associated with the restructuring will be paid in cash using amounts on hand and the outlays are expected to be largely incurred throughout 2019, with the remainder continuing into 2020. The total expected pre-tax restructuring charges related to the restructuring plan by segment, inclusive of amounts already incurred, are presented below (amounts in millions): Year Ending December 31, 2019 Activision $ 15 Blizzard 66 King 27 Other segments (1) 42 Total $ 150 (1) Includes charges related to operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes restructuring charges for our corporate and administrative functions. |
Interest and Other Expense (Inc
Interest and Other Expense (Income), Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Interest and Other Expense (Income), Net | Interest and Other Expense (Income), Net Interest and other expense (income), net is comprised of the following (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Interest income $ (20 ) $ (17 ) $ (61 ) $ (50 ) Interest expense from debt and amortization of debt discount and deferred financing costs 23 33 68 118 Unrealized gain on equity investment — — (38 ) — Other expense (income), net (5 ) (3 ) (2 ) (1 ) Interest and other expense (income), net $ (2 ) $ 13 $ (33 ) $ 67 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We account for our provision for income taxes in accordance with ASC 740, Income Taxes , which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year. The provision for income taxes represents federal, foreign, state, and local income taxes. Our effective tax rate could be different from the statutory U.S. income tax rate due to: the effect of state and local income taxes; tax rates that apply to our foreign income (including U.S. tax on foreign income); research and development credits; and certain nondeductible expenses. Our effective tax rate could fluctuate significantly from quarter to quarter based on recurring and nonrecurring factors including, but not limited to: variations in the estimated and actual level of pre-tax income or loss by jurisdiction; changes in enacted tax laws and regulations, and interpretations thereof, including with respect to tax credits and state and local income taxes; developments in tax audits and other matters; recognition of excess tax benefits and tax deficiencies from share-based payments; and certain nondeductible expenses. Changes in judgment from the evaluation of new information resulting in the recognition, derecognition, or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of the change. The income tax expense of $45 million for the three months ended September 30, 2019 , reflects an effective tax rate of 18% , which is higher than the effective tax rate of (23)% for the three months ended September 30, 2018 . The increase is primarily due to a discrete tax benefit recognized in the prior year in connection with adjustments made to the provisional amounts initially recorded in connection with tax reform legislation known as the Tax Cuts and Jobs Act enacted in December 22, 2017 (the “U.S. Tax Reform Act”), lower excess tax benefits from share-based payments in the current year, and an increase in U.S. tax on foreign earnings. The income tax expense of $208 million for the nine months ended September 30, 2019 , reflects an effective tax rate of 18% , which is higher than the effective tax rate of 2% for the nine months ended September 30, 2018 . The increase is due to a discrete tax benefit recognized in the prior year in connection with an audit settlement with the Internal Revenue Service (“IRS”), a discrete tax benefit recognized in the prior year in connection with adjustments made to the provisional amounts initially recorded in connection with the U.S. Tax Reform Act, and lower excess tax benefits from share-based payments in the current year. This increase was partially offset by a valuation allowance recorded in the prior year with regard to California research and development credit carryforwards (“CA R&D Credits”). The effective tax rate of 18% for both the three and nine months ended September 30, 2019 , is lower than the U.S. statutory rate of 21% , primarily due to foreign earnings taxed at lower statutory rates as compared to domestic earnings, which is partially offset by U.S. tax on foreign earnings, and the recognition of federal research and development credits. Activision Blizzard’s 2009 through 2018 tax years remain open to examination by certain major taxing jurisdictions to which we are subject. The IRS is currently examining our federal tax returns for the 2012 through 2016 tax years. We also have several state and non-U.S. audits pending, including the French audit discussed below. In addition, we are currently seeking a multilateral agreement among the tax authorities in the U.K., Sweden, and other relevant jurisdictions with respect to King’s transfer pricing for tax years dating back to 2013. While the outcome of any discussions aimed at such an agreement remains uncertain, they could result in an agreement that changes the allocation of profits and losses between these and other relevant jurisdictions or a failure to reach an agreement that results in unilateral adjustments to the amount and timing of taxable income in the jurisdictions in which King operates. In December 2018, we received a decision from the Swedish Tax Agency (“STA”) informing us of an audit assessment of a Swedish subsidiary of King for the 2016 tax year (“Initial Decision”). The Initial Decision described the basis for issuing a transfer pricing assessment of approximately 3.5kr billion (approximately $359 million ), primarily concerning an alleged intercompany asset transfer. On June 17, 2019, we received a reassessment from the STA (“Reassessment”) which changed the Initial Decision based on a revision of the transfer pricing approach reflected in King’s 2016 Swedish tax return and removal of the alleged intercompany asset transfer that was the basis of the Initial Decision. The STA also, at the same time, reassessed the 2017 tax year on the same transfer pricing basis as 2016. The transfer pricing approach reflected in the Reassessment for both 2016 and 2017 remains subject to further review by taxing authorities in other jurisdictions. In July 2019, the Company made a payment to the STA for the Reassessment for the 2016 and 2017 tax years, which did not result in a significant impact to our condensed consolidated financial statements. In December 2017, we received a Notice of Reassessment from the French Tax Authority (“FTA”) related to transfer pricing for intercompany transactions involving one of our French subsidiaries for the 2011 through 2013 tax years. The total assessment, including penalties and interest, was approximately €571 million (approximately $625 million ). We disagree with the proposed assessment and continue to vigorously contest it. We believe our tax provisions at September 30, 2019, were appropriate. Until such time as this matter is ultimately resolved we could be subject to significant additional tax liabilities. In addition to the risk of additional tax for the 2011 through 2013 tax years, if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities. In October 2019, we completed an intra-entity transfer of certain intellectual property rights to one of our subsidiaries in the U.K. The transfer did not result in a taxable gain; however, our U.K. subsidiary received a step-up in tax basis. We are currently assessing the tax impacts associated with this transfer, including its impact to deferred taxes. We expect to record a one-time benefit for the recognition of a deferred tax asset in the U.K. related to the amortizable tax basis in the transferred intellectual property, partially offset by a related deferred tax liability for U.S. taxes on foreign earnings. The net tax impact of this intra-entity asset transfer will be recorded in the quarter ending December 31, 2019. While this one-time impact may be material to our financial statements, we do not expect the transfer to materially affect cash taxes or operating cash flows in 2019. In addition, certain of our subsidiaries are under examination or investigation, or may be subject to examination or investigation, by tax authorities in various jurisdictions. These proceedings may lead to adjustments or proposed adjustments to our taxes or provisions for uncertain tax positions. Such proceedings may have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations in the earlier of the period or periods in which the matters are resolved and in which appropriate tax provisions are taken into account in our financial statements. If we were to receive a materially adverse assessment from a taxing jurisdiction, we would plan to vigorously contest it and consider all of our options, including the pursuit of judicial remedies. We regularly assess the likelihood of adverse outcomes resulting from these examinations and monitor the progress of ongoing discussions with tax authorities in determining the appropriateness of our tax provisions. The final resolution of the Company’s global tax disputes is uncertain. There is significant judgment required in the analysis of disputes, including the probability determination and estimation of the potential exposure. Based on current information, in the opinion of the Company’s management, the ultimate resolution of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations, except as noted above. |
Computation of Basic_Diluted Ea
Computation of Basic/Diluted Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic/Diluted Earnings Per Common Share | Computation of Basic/Diluted Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Consolidated net income $ 204 $ 260 $ 978 $ 1,162 Denominator: Denominator for basic earnings per common share—weighted-average common shares outstanding 767 763 766 761 Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards 4 8 4 10 Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding 771 771 770 771 Basic earnings per common share $ 0.27 $ 0.34 $ 1.28 $ 1.53 Diluted earnings per common share $ 0.26 $ 0.34 $ 1.27 $ 1.51 The vesting of certain of our employee-related restricted stock units and options is contingent upon the satisfaction of pre-defined performance measures. The shares underlying these equity awards are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Additionally, potential common shares are not included in the denominator of the diluted earnings per common share calculation when the inclusion of such shares would be anti-dilutive. Weighted-average shares excluded from the computation of diluted earnings per share were as follows (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Restricted stock units and options with performance measures not yet met 4 6 3 6 Anti-dilutive employee stock options 6 1 6 2 |
Capital Transactions
Capital Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Capital Transactions | Capital Transactions Repurchase Program On January 31, 2019, our Board of Directors authorized a stock repurchase program under which we are authorized to repurchase up to $1.5 billion of our common stock from February 14, 2019, until the earlier of February 13, 2021, and a determination by the Board of Directors to discontinue the repurchase program. As of September 30, 2019 , we have not repurchased any shares under this program. Dividends On February 12, 2019, our Board of Directors declared a cash dividend of $0.37 per common share. On May 9, 2019, we made an aggregate cash dividend payment of $283 million to shareholders of record at the close of business on March 28, 2019. On February 8, 2018, our Board of Directors declared a cash dividend of $0.34 per common share. On May 9, 2018, we made an aggregate cash dividend payment of $259 million to shareholders of record at the close of business on March 30, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including with respect to intellectual property rights, contractual claims, labor and employment matters, regulatory matters, tax matters, unclaimed property matters, compliance matters, and collection matters. In the opinion of management, after consultation with legal counsel, such routine claims and lawsuits are not significant, and we do not expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been condensed or omitted if they substantially duplicate the disclosures contained in our annual audited consolidated financial statements. Additionally, the year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. In the opinion of management, all adjustments considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP (consisting of normal recurring adjustments) have been included in the accompanying unaudited condensed consolidated financial statements. Actual results could differ from these estimates and assumptions. The accompanying condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated. The Company considers events or transactions that occur after the balance sheet date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. |
Recently Issued Accounting Pronouncements | Adoption of Accounting Standards Codification (“ASC”) 842: Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the accounting for leases. The new standard replaces all current U.S. GAAP guidance on this topic. The new standard, among other things, requires a lessee to classify a lease as either an operating or financing lease, and to recognize a lease liability and a right-of-use (“ROU”) asset for its leases. On January 1, 2019, we adopted the new lease accounting standard. As a result, we have updated our significant accounting policy disclosure to include our accounting policy for leases under the new standard. Refer to Note 3 for information about the impact of adoption on our condensed consolidated financial statements. Leases We determine if an arrangement is or contains a lease at contract inception. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the landlords of our leases. The operating lease ROU asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are depreciated on a straight-line basis over the estimated life of the asset, not to exceed the length of the lease, with interest expense associated with finance lease liabilities recorded using the effective interest method. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. For our real estate, server and data center, and event production and broadcasting equipment leases, we elected the practical expedient to account for the lease and non-lease components as a single lease component. In all other lease arrangements, we account for lease and non-lease components separately. Additionally, for certain leases that have a group of leased assets with similar characteristics in size and composition, we may apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. Finance lease ROU assets are presented in “Property and equipment, net” and finance lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. Recently Adopted Accounting Pronouncements Leases As noted in Note 2 above, we adopted the new lease accounting standard effective January 1, 2019. We elected to apply an optional adoption method, which uses the effective date as the initial date of application on transition with no retrospective adjustments to prior periods. Additionally, we elected to apply the package of transition practical expedients which permitted us to, among other things, (1) not reassess if existing contracts contained leases under the new lease accounting standard and (2) carry forward our historical lease classifications. The impact from the adoption of the new lease accounting standard to our condensed consolidated balance sheet at January 1, 2019, was as follows (amounts in millions): Condensed Consolidated Balance Sheet: Balance at December 31, 2018 Adjustments due to adoption of new lease accounting standard Balance at January 1, 2019 Assets Other current assets $ 539 $ (8 ) $ 531 Other assets 482 252 734 Liabilities Accrued expenses and other liabilities $ 896 $ 54 $ 950 Other liabilities 1,167 190 1,357 The adoption of this standard did not have an impact on our condensed consolidated statement of operations or condensed consolidated statements of cash flows. Recent Accounting Pronouncements Not Yet Adopted Goodwill In January 2017, the FASB issued new guidance that eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, that entity will be required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit, as determined in Step 1 from the goodwill impairment test, with its carrying amount and recognize an impairment charge, if any, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019, and should be applied prospectively. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. We do not currently expect this new accounting guidance to have an impact on our financial statements upon adoption. Cloud Computing Arrangements In August 2018, the FASB issued new guidance related to a customer’s accounting for implementation costs incurred in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract. The new guidance requires customers to capitalize implementation costs for these arrangements by applying the same criteria that are utilized for existing internal-use software guidance. The capitalized costs are required to be amortized over the associated term of the arrangement, generally on a straight-line basis, with amortization of these costs presented in the same financial statement line item as other costs associated with the arrangement. The new standard is effective for fiscal years beginning after December 15, 2019, and can be applied retrospectively or prospectively. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The update replaces the existing incurred loss impairment model with an expected loss model which requires the use of historical and forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will generally result in earlier recognition of credit losses. The new standard is effective for fiscal years beginning after December 15, 2019, and will be applied on a modified retrospective basis, with the cumulative effect of adoption recorded as an adjustment to retained earnings. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements, however, our preliminary conclusion is that the new guidance will not have a material impact on our financial statements and related disclosures. |
Leases | Leases We determine if an arrangement is or contains a lease at contract inception. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the landlords of our leases. The operating lease ROU asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are depreciated on a straight-line basis over the estimated life of the asset, not to exceed the length of the lease, with interest expense associated with finance lease liabilities recorded using the effective interest method. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. For our real estate, server and data center, and event production and broadcasting equipment leases, we elected the practical expedient to account for the lease and non-lease components as a single lease component. In all other lease arrangements, we account for lease and non-lease components separately. Additionally, for certain leases that have a group of leased assets with similar characteristics in size and composition, we may apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. Finance lease ROU assets are presented in “Property and equipment, net” and finance lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. |
Description of Business and B_2
Description of Business and Basis of Consolidation and Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Beginning and Ending Cash and Cash Equivalents and Restricted Cash | The beginning and ending cash and cash equivalents and restricted cash reported within our condensed consolidated statement of cash flows included restricted cash amounts as follows (amounts in millions): At September 30, 2019 2018 Beginning restricted cash $ 4 $ 7 Ending restricted cash 7 8 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of Impact of Adoption | The impact from the adoption of the new lease accounting standard to our condensed consolidated balance sheet at January 1, 2019, was as follows (amounts in millions): Condensed Consolidated Balance Sheet: Balance at December 31, 2018 Adjustments due to adoption of new lease accounting standard Balance at January 1, 2019 Assets Other current assets $ 539 $ (8 ) $ 531 Other assets 482 252 734 Liabilities Accrued expenses and other liabilities $ 896 $ 54 $ 950 Other liabilities 1,167 190 1,357 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories, net, consist of the following (amounts in millions): At September 30, 2019 At December 31, 2018 Finished goods $ 82 $ 40 Purchased parts and components 20 3 Inventories, net $ 102 $ 43 |
Software Development and Inte_2
Software Development and Intellectual Property Licenses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Software Development Costs and Intellectual Property Licenses | |
Summary of the components of capitalized software development | The following table summarizes the components of our capitalized software development costs (amounts in millions): At September 30, 2019 At December 31, 2018 Internally-developed software costs $ 325 $ 291 Payments made to third-party software developers 24 38 Total software development costs $ 349 $ 329 |
Amortization of capitalized software development costs and intellectual property licenses | Amortization of capitalized software development costs and intellectual property licenses was as follows (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Amortization of capitalized software development costs and intellectual property licenses $ 11 $ 33 $ 175 $ 242 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of finite-lived intangible assets | Intangible assets, net, consist of the following (amounts in millions): At September 30, 2019 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (1,086 ) $ 68 Developed software 2 - 5 years 601 (548 ) 53 Trade names 7 - 10 years 54 (28 ) 26 Other 1 - 15 years 19 (16 ) 3 Total definite-lived intangible assets (1) $ 1,828 $ (1,678 ) $ 150 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 583 (1) Beginning with the first quarter of 2019, the balances of the customer base intangible assets have been removed as such amounts were fully amortized in the prior year. At December 31, 2018 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (1,032 ) $ 122 Developed software 2 - 5 years 601 (456 ) 145 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (23 ) 31 Other 1 - 15 years 19 (15 ) 4 Total definite-lived intangible assets $ 2,445 $ (2,143 ) $ 302 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 735 |
Schedule of indefinite-lived intangible assets | Intangible assets, net, consist of the following (amounts in millions): At September 30, 2019 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (1,086 ) $ 68 Developed software 2 - 5 years 601 (548 ) 53 Trade names 7 - 10 years 54 (28 ) 26 Other 1 - 15 years 19 (16 ) 3 Total definite-lived intangible assets (1) $ 1,828 $ (1,678 ) $ 150 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 583 (1) Beginning with the first quarter of 2019, the balances of the customer base intangible assets have been removed as such amounts were fully amortized in the prior year. At December 31, 2018 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (1,032 ) $ 122 Developed software 2 - 5 years 601 (456 ) 145 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (23 ) 31 Other 1 - 15 years 19 (15 ) 4 Total definite-lived intangible assets $ 2,445 $ (2,143 ) $ 302 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 735 |
Schedule of finite lived intangible assets, future amortization expense | At September 30, 2019 , future amortization of definite-lived intangible assets is estimated as follows (amounts in millions): For the years ending December 31, 2019 (remaining three months) $ 52 2020 74 2021 12 2022 7 2023 2 Thereafter 3 Total $ 150 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill by reportable segment are as follows (amounts in millions): Activision Blizzard King Total Balance at December 31, 2018 $ 6,897 $ 190 $ 2,675 $ 9,762 Other 1 — 1 2 Balance at September 30, 2019 $ 6,898 $ 190 $ 2,676 $ 9,764 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on a recurring and/or non-recurring basis | The table below segregates all of our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions): Fair Value Measurements at September 30, 2019 Using As of September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 4,616 $ 4,616 $ — $ — Cash and cash equivalents Foreign government treasury bills 36 36 — — Cash and cash equivalents Foreign currency forward contracts designated as hedges 23 — 23 — Other current assets Foreign currency forward contracts not designated as hedges 8 — 8 — Other current assets Total recurring fair value measurements $ 4,683 $ 4,652 $ 31 $ — Financial Liabilities: Foreign currency forward contracts not designated as hedges $ (4 ) $ — $ (4 ) $ — Accrued expenses and other liabilities Fair Value Measurements at December 31, 2018 Using As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 3,925 $ 3,925 $ — $ — Cash and cash equivalents Foreign government treasury bills 32 32 — — Cash and cash equivalents U.S. treasuries and government agency securities 150 150 — — Other current assets Foreign currency forward contracts designated as hedges 13 — 13 — Other current assets Foreign currency forward contracts not designated as hedges 1 — 1 — Other current assets Total recurring fair value measurements $ 4,121 $ 4,107 $ 14 $ — Financial Liabilities: Foreign currency forward contracts designated as hedges $ (1 ) $ — $ (1 ) $ — Accrued expenses and other liabilities |
Foreign currency forward contracts | The gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions): As of September 30, 2019 As of December 31, 2018 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell EUR $ 81 $ 5 $ — $ — Buy EUR, Sell USD 79 (3 ) — — Buy USD, Sell SEK 46 2 — — Buy SEK, Sell USD 45 (1 ) — — Buy USD, Sell GBP 13 1 55 1 Buy GBP, Sell USD 13 — — — The total gross notional amounts and fair values of our Cash Flow Hedges are as follows (amounts in millions): As of September 30, 2019 As of December 31, 2018 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell Euro $ 310 $ 23 $ 723 $ 12 |
Net realized gains (losses) reclassified out of accumulated other comprehensive income (loss) | The amount of pre-tax net realized gains (losses) associated with our Cash Flow Hedges that were reclassified out of “Accumulated other comprehensive income (loss)” and into earnings was as follows (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, Statement of Operations Classification 2019 2018 2019 2018 Cash Flow Hedges $ 7 $ 3 $ 24 $ (11 ) Net revenues |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Expense and Other Details Related to Operating Leases | Components of our lease costs are as follows (amounts in millions): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating leases Operating lease costs $ 19 $ 58 Variable lease costs 6 16 Supplemental information related to our operating leases is as follows (amounts in millions): Nine Months Ended September 30, 2019 Supplemental Operating Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities $ 61 ROU assets obtained in exchange for new lease obligations 55 At September 30, 2019 Weighted Average Lease terms and discount rates Remaining lease term 5.15 years Discount rate 4.09 % |
Schedule of Future Undiscounted Lease Payments For Operating Lease Liabilities And Reconciliation to Operating Lease Liabilities | Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at September 30, 2019 , are as follows (amounts in millions): For the years ending December 31, 2019 (remaining three months) $ 14 2020 74 2021 56 2022 48 2023 42 Thereafter 74 Total future lease payments $ 308 Less imputed interest (32 ) Total lease liabilities $ 276 |
Schedule of ROU Assets and Lease Liabilities | Operating lease ROU assets and liabilities recorded on our condensed consolidated balance sheet as of September 30, 2019 , were as follows (amounts in millions): At September 30, 2019 Balance Sheet Classification ROU assets $ 238 Other assets Current lease liabilities $ 61 Accrued expenses and other current liabilities Non-current lease liabilities 215 Other liabilities $ 276 Total lease liabilities |
Schedule of Future Minimum Lease Payments Prior to Adoption of Lease Standard | Future minimum lease payments as of December 31, 2018, prior to our adoption of the new lease accounting standard, were as follows: For the years ending December 31, 2019 $ 80 2020 70 2021 53 2022 45 2023 38 Thereafter 60 Total $ 346 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of debt | A summary of our outstanding debt is as follows (amounts in millions): At September 30, 2019 Gross Carrying Amount Unamortized Net Carrying 2021 Notes $ 650 $ (2 ) $ 648 2022 Notes 400 (2 ) 398 2026 Notes 850 (8 ) 842 2027 Notes 400 (5 ) 395 2047 Notes 400 (9 ) 391 Total long-term debt $ 2,700 $ (26 ) $ 2,674 At December 31, 2018 Gross Carrying Unamortized Net Carrying 2021 Notes $ 650 $ (3 ) $ 647 2022 Notes 400 (3 ) 397 2026 Notes 850 (8 ) 842 2027 Notes 400 (5 ) 395 2047 Notes 400 (10 ) 390 Total long-term debt $ 2,700 $ (29 ) $ 2,671 |
Schedule of maturities of debt | As of September 30, 2019 , the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years and thereafter are as follows (amounts in millions): For the years ending December 31, 2019 (remaining three months) $ — 2020 — 2021 650 2022 400 2023 — Thereafter 1,650 Total $ 2,700 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) were as follows (amounts in millions): For the Nine Months Ended September 30, 2019 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2018 $ (629 ) $ 23 $ 5 $ (601 ) Other comprehensive income (loss) before reclassifications (5 ) 28 3 26 Amounts reclassified from accumulated other comprehensive income (loss) into earnings — (24 ) (8 ) (32 ) Balance at September 30, 2019 $ (634 ) $ 27 $ — $ (607 ) For the Nine Months Ended September 30, 2018 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2017 $ (623 ) $ (15 ) $ — $ (638 ) Cumulative impact from adoption of new revenue accounting standard 3 — — 3 Other comprehensive income (loss) before reclassifications (7 ) 14 4 11 Amounts reclassified from accumulated other comprehensive income (loss) into earnings — 11 — 11 Balance at September 30, 2018 $ (627 ) $ 10 $ 4 $ (613 ) |
Operating Segments and Geogra_2
Operating Segments and Geographic Region (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operating segments and reconciliations of total net revenues and total segment operating income to consolidated net revenues from external customers and consolidated income before income tax expense | Information on reportable segment net revenues and operating income for the three months ended September 30, 2019 and 2018 , are presented below (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 209 $ 392 $ 500 $ 1,101 Intersegment net revenues (1) — 2 — 2 Segment net revenues $ 209 $ 394 $ 500 $ 1,103 Segment operating income $ 26 $ 74 $ 194 $ 294 Three Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 397 $ 627 $ 506 $ 1,530 Intersegment net revenues (1) — 8 — 8 Segment net revenues $ 397 $ 635 $ 506 $ 1,538 Segment operating income $ 112 $ 189 $ 184 $ 485 Information on reportable segment net revenues and operating income for the nine months ended September 30, 2019 and 2018 , are presented below (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 794 $ 1,113 $ 1,527 $ 3,434 Intersegment net revenues (1) — 9 — 9 Segment net revenues $ 794 $ 1,122 $ 1,527 $ 3,443 Segment operating income $ 153 $ 204 $ 543 $ 900 Nine Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 1,047 $ 1,592 $ 1,542 $ 4,181 Intersegment net revenues (1) — 14 — 14 Segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 4,195 Segment operating income $ 288 $ 444 $ 543 $ 1,275 (1) Intersegment revenues reflect licensing and service fees charged between segments. Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Reconciliation to consolidated net revenues: Segment net revenues $ 1,103 $ 1,538 $ 3,443 $ 4,195 Revenues from non-reportable segments (1) 113 128 245 246 Net effect from recognition (deferral) of deferred net revenues (2) 68 (146 ) 824 692 Elimination of intersegment revenues (3) (2 ) (8 ) (9 ) (14 ) Consolidated net revenues $ 1,282 $ 1,512 $ 4,503 $ 5,119 Reconciliation to consolidated income before income tax expense: Segment operating income $ 294 $ 485 $ 900 $ 1,275 Operating income (loss) from non-reportable segments (1) 5 7 10 (4 ) Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2) 53 (89 ) 629 468 Share-based compensation expense (27 ) (55 ) (127 ) (166 ) Amortization of intangible assets (50 ) (83 ) (151 ) (279 ) Restructuring and related costs (4) (28 ) — (108 ) — Consolidated operating income 247 265 1,153 1,294 Interest and other expense (income), net (2 ) 13 (33 ) 67 Loss on extinguishment of debt — 40 — 40 Consolidated income before income tax expense $ 249 $ 212 $ 1,186 $ 1,187 (1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes unallocated corporate income and expenses. (2) Reflects the net effect from recognition (deferral) of deferred net revenues, along with related cost of revenues, on certain of our online-enabled products. (3) Intersegment revenues reflect licensing and service fees charged between segments. (4) Reflects restructuring initiatives, primarily severance and other restructuring-related costs. |
Schedule of net revenues by distribution channels | Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the three months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 179 $ 335 $ 502 $ — $ (2 ) $ 1,014 Retail channels 73 20 — — — 93 Other (2) — 62 — 113 — 175 Total consolidated net revenues $ 252 $ 417 $ 502 $ 113 $ (2 ) $ 1,282 Change in deferred revenues: Digital online channels (1) $ (16 ) $ (21 ) $ (2 ) $ — $ — $ (39 ) Retail channels (27 ) (2 ) — — — (29 ) Other (2) — — — — — — Total change in deferred revenues $ (43 ) $ (23 ) $ (2 ) $ — $ — $ (68 ) Segment net revenues: Digital online channels (1) $ 163 $ 314 $ 500 $ — $ (2 ) $ 975 Retail channels 46 18 — — — 64 Other (2) — 62 — 113 — 175 Total segment net revenues $ 209 $ 394 $ 500 $ 113 $ (2 ) $ 1,214 Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 299 $ 480 $ 505 $ — $ (8 ) $ 1,276 Retail channels 53 23 — — — 76 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Digital online channels (1) $ 57 $ 101 $ 1 $ — $ — $ 159 Retail channels (12 ) (2 ) — — — (14 ) Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Digital online channels (1) $ 356 $ 581 $ 506 $ — $ (8 ) $ 1,435 Retail channels 41 21 — — — 62 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the nine months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 894 $ 1,081 $ 1,527 $ — $ (9 ) $ 3,493 Retail channels 548 51 — — — 599 Other (2) — 157 — 254 — 411 Total consolidated net revenues $ 1,442 $ 1,289 $ 1,527 $ 254 $ (9 ) $ 4,503 Change in deferred revenues: Digital online channels (1) $ (285 ) $ (159 ) $ — $ — $ — $ (444 ) Retail channels (363 ) (10 ) — — — (373 ) Other (2) — 2 — (9 ) — (7 ) Total change in deferred revenues $ (648 ) $ (167 ) $ — $ (9 ) $ — $ (824 ) Segment net revenues: Digital online channels (1) $ 609 $ 922 $ 1,527 $ — $ (9 ) $ 3,049 Retail channels 185 41 — — — 226 Other (2) — 159 — 245 — 404 Total segment net revenues $ 794 $ 1,122 $ 1,527 $ 245 $ (9 ) $ 3,679 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 1,110 $ 1,355 $ 1,547 $ — $ (14 ) $ 3,998 Retail channels 707 57 — — — 764 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Digital online channels (1) $ (234 ) $ 79 $ (5 ) $ — $ — $ (160 ) Retail channels (536 ) (10 ) — — — (546 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Digital online channels (1) $ 876 $ 1,434 $ 1,542 $ — $ (14 ) $ 3,838 Retail channels 171 47 — — — 218 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 (1) Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties. (2) Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments. |
Schedule of net revenues by geographic region | Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 141 $ 204 $ 311 $ — $ (1 ) $ 655 EMEA (1) 79 124 137 113 (1 ) 452 Asia Pacific 32 89 54 — — 175 Total consolidated net revenues $ 252 $ 417 $ 502 $ 113 $ (2 ) $ 1,282 Change in deferred revenues: Americas $ (20 ) $ (11 ) $ (2 ) $ — $ — $ (33 ) EMEA (1) (16 ) (10 ) — — — (26 ) Asia Pacific (7 ) (2 ) — — — (9 ) Total change in deferred revenues $ (43 ) $ (23 ) $ (2 ) $ — $ — $ (68 ) Segment net revenues: Americas $ 121 $ 193 $ 309 $ — $ (1 ) $ 622 EMEA (1) 63 114 137 113 (1 ) 426 Asia Pacific 25 87 54 — — 166 Total segment net revenues $ 209 $ 394 $ 500 $ 113 $ (2 ) $ 1,214 Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 214 $ 242 $ 309 $ 13 $ (4 ) $ 774 EMEA (1) 109 172 143 112 (2 ) 534 Asia Pacific 29 124 53 — (2 ) 204 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Americas $ 33 $ 43 $ — $ — $ — $ 76 EMEA (1) 8 48 1 3 — 60 Asia Pacific 4 6 — — — 10 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Americas $ 247 $ 285 $ 309 $ 13 $ (4 ) $ 850 EMEA (1) 117 220 144 115 (2 ) 594 Asia Pacific 33 130 53 — (2 ) 214 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 852 $ 613 $ 946 $ — $ (5 ) $ 2,406 EMEA (1) 457 400 417 254 (3 ) 1,525 Asia Pacific 133 276 164 — (1 ) 572 Total consolidated net revenues $ 1,442 $ 1,289 $ 1,527 $ 254 $ (9 ) $ 4,503 Change in deferred revenues: Americas $ (390 ) $ (80 ) $ 1 $ — $ — $ (469 ) EMEA (1) (205 ) (71 ) — (9 ) — (285 ) Asia Pacific (53 ) (16 ) (1 ) — — (70 ) Total change in deferred revenues $ (648 ) $ (167 ) $ — $ (9 ) $ — $ (824 ) Segment net revenues: Americas $ 462 $ 533 $ 947 $ — $ (5 ) $ 1,937 EMEA (1) 252 329 417 245 (3 ) 1,240 Asia Pacific 80 260 163 — (1 ) 502 Total segment net revenues $ 794 $ 1,122 $ 1,527 $ 245 $ (9 ) $ 3,679 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 1,074 $ 716 $ 945 $ 13 $ (8 ) $ 2,740 EMEA (1) 613 497 448 220 (4 ) 1,774 Asia Pacific 130 323 154 — (2 ) 605 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Americas $ (439 ) $ 43 $ (3 ) $ — $ — $ (399 ) EMEA (1) (287 ) 34 (2 ) 13 — (242 ) Asia Pacific (44 ) (7 ) — — — (51 ) Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Americas $ 635 $ 759 $ 942 $ 13 $ (8 ) $ 2,341 EMEA (1) 326 531 446 233 (4 ) 1,532 Asia Pacific 86 316 154 — (2 ) 554 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 (1) “EMEA” consists of the Europe, Middle East, and Africa geographic regions. (2) Intersegment revenues reflect licensing and service fees charged between segments. |
Schedule of net revenues by platform | Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 214 $ 27 $ — $ — $ — $ 241 PC 29 286 28 — (2 ) 341 Mobile and ancillary (1) 9 42 474 — — 525 Other (2) — 62 — 113 — 175 Total consolidated net revenues $ 252 $ 417 $ 502 $ 113 $ (2 ) $ 1,282 Change in deferred revenues: Console $ (36 ) $ (9 ) $ — $ — $ — $ (45 ) PC (7 ) (14 ) — — — (21 ) Mobile and ancillary (1) — — (2 ) — — (2 ) Other (2) — — — — — — Total change in deferred revenues $ (43 ) $ (23 ) $ (2 ) $ — $ — $ (68 ) Segment net revenues: Console $ 178 $ 18 $ — $ — $ — $ 196 PC 22 272 28 — (2 ) 320 Mobile and ancillary (1) 9 42 472 — — 523 Other (2) — 62 — 113 — 175 Total segment net revenues $ 209 $ 394 $ 500 $ 113 $ (2 ) $ 1,214 Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 307 $ 40 $ — $ — $ — $ 347 PC 40 414 36 — (8 ) 482 Mobile and ancillary (1) 5 49 469 — — 523 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Console $ 29 $ (9 ) $ — $ — $ — $ 20 PC 16 101 — — — 117 Mobile and ancillary (1) — 7 1 — — 8 Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Console $ 336 $ 31 $ — $ — $ — $ 367 PC 56 515 36 — (8 ) 599 Mobile and ancillary (1) 5 56 470 — — 531 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018 , were as follows (amounts in millions): Nine Months Ended September 30, 2019 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 1,222 $ 102 $ — $ — $ — $ 1,324 PC 204 909 92 — (9 ) 1,196 Mobile and ancillary (1) 16 121 1,435 — — 1,572 Other (2) — 157 — 254 — 411 Total consolidated net revenues $ 1,442 $ 1,289 $ 1,527 $ 254 $ (9 ) $ 4,503 Change in deferred revenues: Console $ (563 ) $ (26 ) $ — $ — $ — $ (589 ) PC (84 ) (133 ) (1 ) — — (218 ) Mobile and ancillary (1) (1 ) (10 ) 1 — — (10 ) Other (2) — 2 — (9 ) — (7 ) Total change in deferred revenues $ (648 ) $ (167 ) $ — $ (9 ) $ — $ (824 ) Segment net revenues: Console $ 659 $ 76 $ — $ — $ — $ 735 PC 120 776 91 — (9 ) 978 Mobile and ancillary (1) 15 111 1,436 — — 1,562 Other (2) — 159 — 245 — 404 Total segment net revenues $ 794 $ 1,122 $ 1,527 $ 245 $ (9 ) $ 3,679 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 1,597 $ 133 $ — $ — $ — $ 1,730 PC 208 1,140 118 — (14 ) 1,452 Mobile and ancillary (1) 12 139 1,429 — — 1,580 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Console $ (695 ) $ (25 ) $ — $ — $ — $ (720 ) PC (76 ) 96 — — — 20 Mobile and ancillary (1) 1 (2 ) (5 ) — — (6 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Console $ 902 $ 108 $ — $ — $ — $ 1,010 PC 132 1,236 118 — (14 ) 1,472 Mobile and ancillary (1) 13 137 1,424 — — 1,574 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 (1) Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform specific game-related revenues, such as standalone sales of physical merchandise and accessories. (2) Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments. |
Long-lived assets by geographic region | Long-lived assets by geographic region were as follows (amounts in millions): At September 30, 2019 At December 31, 2018 Long-lived assets (1) by geographic region: Americas $ 179 $ 203 EMEA 58 62 Asia Pacific 12 17 Total long-lived assets by geographic region $ 249 $ 282 (1) The only long-lived assets that we classify by region are our long-term tangible fixed assets, which consist of property, plant, and equipment assets; all other long-term assets are not allocated by location. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities and Charges by Reportable Segment | The following table summarizes accrued restructuring and related costs included in “Accrued expenses and other liabilities” in our condensed consolidated balance sheet (amounts in millions): Severance and employee related costs Facilities and related costs Other costs Total Balance at December 31, 2018 $ — $ — $ — $ — Costs charged to expense 43 — 14 57 Cash payments (11 ) — (1 ) (12 ) Non-cash charge adjustment (1) — — (11 ) (11 ) Balance at March 31, 2019 $ 32 $ — $ 2 $ 34 Costs charged to expense 9 9 4 22 Cash payments (15 ) — (5 ) (20 ) Non-cash charge adjustment (1) — (9 ) — (9 ) Balance at June 30, 2019 $ 26 $ — $ 1 $ 27 Costs charged to expense 5 13 6 24 Cash payments (8 ) — (3 ) (11 ) Non-cash charge adjustment (1) — (13 ) — (13 ) Balance at September 30, 2019 $ 23 $ — $ 4 $ 27 (1) Adjustments relate to non-cash charges included in “Costs charged to expense” for the write-down of assets from canceled projects during the three months ended March 31, 2019, and the write-down of lease facility assets, inclusive of lease right-of-use assets and associated fixed assets, that were vacated during the three months ended June 30, 2019 and September 30, 2019. |
Schedule of Restructuring and Related Costs by Segment and Expected Pre-tax Restructuring Charges | Total restructuring and related costs by segment are (amounts in millions): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Activision $ 1 $ 12 Blizzard 12 52 King 4 17 Other segments (1) 7 23 Total $ 24 $ 104 (1) Includes charges related to operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes restructuring charges for our corporate and administrative functions. The total expected pre-tax restructuring charges related to the restructuring plan by segment, inclusive of amounts already incurred, are presented below (amounts in millions): Year Ending December 31, 2019 Activision $ 15 Blizzard 66 King 27 Other segments (1) 42 Total $ 150 (1) Includes charges related to operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes restructuring charges for our corporate and administrative functions. |
Interest and Other Expense (I_2
Interest and Other Expense (Income), Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Interest and other investment income (expense) | Interest and other expense (income), net is comprised of the following (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Interest income $ (20 ) $ (17 ) $ (61 ) $ (50 ) Interest expense from debt and amortization of debt discount and deferred financing costs 23 33 68 118 Unrealized gain on equity investment — — (38 ) — Other expense (income), net (5 ) (3 ) (2 ) (1 ) Interest and other expense (income), net $ (2 ) $ 13 $ (33 ) $ 67 |
Computation of Basic_Diluted _2
Computation of Basic/Diluted Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings per share | The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Consolidated net income $ 204 $ 260 $ 978 $ 1,162 Denominator: Denominator for basic earnings per common share—weighted-average common shares outstanding 767 763 766 761 Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards 4 8 4 10 Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding 771 771 770 771 Basic earnings per common share $ 0.27 $ 0.34 $ 1.28 $ 1.53 Diluted earnings per common share $ 0.26 $ 0.34 $ 1.27 $ 1.51 |
Schedule of antidilutive securities excluded from computation of earnings per share | Weighted-average shares excluded from the computation of diluted earnings per share were as follows (amounts in millions): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Restricted stock units and options with performance measures not yet met 4 6 3 6 Anti-dilutive employee stock options 6 1 6 2 |
Description of Business and B_3
Description of Business and Basis of Consolidation and Presentation (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 3 | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Income tax expense reduction | $ (45) | $ 48 | $ (208) | $ (25) | ||
Initial Recognition of Global Intangible Low-taxed Income of Foreign Subsidiaries | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Income tax expense reduction | $ 35 | $ 35 |
Description of Business and B_4
Description of Business and Basis of Consolidation and Presentation - Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Restricted cash | $ 7 | $ 4 | $ 8 | $ 7 |
Recently Issued Accounting Pr_3
Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Condensed Consolidated Financial Statements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Other current assets | $ 345 | $ 531 | $ 539 |
Other assets | 731 | 734 | 482 |
Liabilities | |||
Accrued expenses and other liabilities | 782 | 950 | 896 |
Other liabilities | $ 1,122 | 1,357 | $ 1,167 |
Adjustments due to adoption of new lease accounting standard | |||
Assets | |||
Other current assets | (8) | ||
Other assets | 252 | ||
Liabilities | |||
Accrued expenses and other liabilities | 54 | ||
Other liabilities | $ 190 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 82 | $ 40 |
Purchased parts and components | 20 | 3 |
Inventories, net | 102 | 43 |
Inventory reserves | $ 13 | $ 22 |
Software Development and Inte_3
Software Development and Intellectual Property Licenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Software development and intellectual property licenses: | |||||
Internally-developed software costs | $ 325 | $ 325 | $ 291 | ||
Payments made to third-party software developers | 24 | 24 | 38 | ||
Total software development costs | 349 | 349 | $ 329 | ||
Amortization: | |||||
Amortization of capitalized software development costs and intellectual property licenses | $ 11 | $ 33 | $ 175 | $ 242 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | |||||
Gross carrying amount, definite-lived intangible assets | $ 1,828 | $ 1,828 | $ 2,445 | ||
Accumulated amortization, definite-lived intangible assets | (1,678) | (1,678) | (2,143) | ||
Net carrying amount, definite-lived intangible assets | 150 | 150 | 302 | ||
Indefinite Lived Intangible Assets | |||||
Net carrying amount, indefinite-lived intangible assets | 433 | 433 | 433 | ||
Total intangible assets, net | 583 | 583 | 735 | ||
Amortization Expense Disclosure | |||||
Amortization expense | 50 | $ 84 | 152 | $ 280 | |
Activision trademark | |||||
Indefinite Lived Intangible Assets | |||||
Net carrying amount, indefinite-lived intangible assets | 386 | 386 | 386 | ||
Acquired trade names | |||||
Indefinite Lived Intangible Assets | |||||
Net carrying amount, indefinite-lived intangible assets | 47 | 47 | 47 | ||
Internally-developed franchises | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount, definite-lived intangible assets | 1,154 | 1,154 | 1,154 | ||
Accumulated amortization, definite-lived intangible assets | (1,086) | (1,086) | (1,032) | ||
Net carrying amount, definite-lived intangible assets | 68 | $ 68 | $ 122 | ||
Internally-developed franchises | Minimum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 3 years | 3 years | |||
Internally-developed franchises | Maximum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 11 years | 11 years | |||
Developed software | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount, definite-lived intangible assets | 601 | $ 601 | $ 601 | ||
Accumulated amortization, definite-lived intangible assets | (548) | (548) | (456) | ||
Net carrying amount, definite-lived intangible assets | 53 | $ 53 | $ 145 | ||
Developed software | Minimum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 2 years | 2 years | |||
Developed software | Maximum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 5 years | 5 years | |||
Customer base | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 2 years | ||||
Gross carrying amount, definite-lived intangible assets | $ 617 | ||||
Accumulated amortization, definite-lived intangible assets | (617) | ||||
Net carrying amount, definite-lived intangible assets | 0 | ||||
Acquired trade names | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount, definite-lived intangible assets | 54 | $ 54 | 54 | ||
Accumulated amortization, definite-lived intangible assets | (28) | (28) | (23) | ||
Net carrying amount, definite-lived intangible assets | 26 | $ 26 | $ 31 | ||
Acquired trade names | Minimum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 7 years | 7 years | |||
Acquired trade names | Maximum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 10 years | 10 years | |||
Other | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount, definite-lived intangible assets | 19 | $ 19 | $ 19 | ||
Accumulated amortization, definite-lived intangible assets | (16) | (16) | (15) | ||
Net carrying amount, definite-lived intangible assets | $ 3 | $ 3 | $ 4 | ||
Other | Minimum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 1 year | 1 year | |||
Other | Maximum | |||||
Finite-Lived Intangible Assets | |||||
Estimated useful life | 15 years | 15 years |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Future Amortization (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Definite-lived intangible assets, future amortization expense disclosure | ||
2019 (remaining three months) | $ 52 | |
2020 | 74 | |
2021 | 12 | |
2022 | 7 | |
2023 | 2 | |
Thereafter | 3 | |
Net carrying amount, definite-lived intangible assets | $ 150 | $ 302 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
December 31, 2018 | $ 9,762 |
Other | 2 |
September 30, 2019 | 9,764 |
Activision | |
Goodwill [Roll Forward] | |
December 31, 2018 | 6,897 |
Other | 1 |
September 30, 2019 | 6,898 |
Blizzard | |
Goodwill [Roll Forward] | |
December 31, 2018 | 190 |
Other | 0 |
September 30, 2019 | 190 |
King | |
Goodwill [Roll Forward] | |
December 31, 2018 | 2,675 |
Other | 1 |
September 30, 2019 | $ 2,676 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | $ 4,683 | $ 4,121 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 4,652 | 4,107 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 31 | 14 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Cash and cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 4,616 | 3,925 |
Cash and cash equivalents | Foreign government treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 36 | 32 |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 4,616 | 3,925 |
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 36 | 32 |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | Foreign government treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Foreign government treasury bills | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Other current assets | U.S. treasuries and government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 150 | |
Other current assets | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 23 | 13 |
Other current assets | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 8 | 1 |
Other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries and government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 150 | |
Other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Other current assets | Significant Other Observable Inputs (Level 2) | U.S. treasuries and government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | |
Other current assets | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 23 | 13 |
Other current assets | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 8 | 1 |
Other current assets | Significant Unobservable Inputs (Level 3) | U.S. treasuries and government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | |
Other current assets | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Other current assets | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Accrued expenses and other liabilities | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | (1) | |
Accrued expenses and other liabilities | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | (4) | |
Accrued expenses and other liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | 0 | |
Accrued expenses and other liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | 0 | |
Accrued expenses and other liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | (1) | |
Accrued expenses and other liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | (4) | |
Accrued expenses and other liabilities | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | $ 0 | |
Accrued expenses and other liabilities | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Total liabilities at fair value | $ 0 |
Fair Value Measurements - Forei
Fair Value Measurements - Foreign Currency Forward Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||||
Net revenues | $ 1,282 | $ 1,512 | $ 4,503 | $ 5,119 | |
Foreign currency forward contracts | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income | |||||
Derivatives, Fair Value [Line Items] | |||||
Net revenues | 7 | $ 3 | 24 | $ (11) | |
Foreign currency forward contracts | Designated as Hedging Instrument | Cash Flow Hedging | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 310 | 310 | $ 723 | ||
Fair value gain (loss) | 23 | $ 23 | 12 | ||
Contract maturity (or less) | 3 months | ||||
Net realized gains | $ 2 | ||||
Deferred cash flow hedge gain (loss) in AOCI | 2 | 2 | |||
Buy USD, Sell EUR | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 81 | 81 | 0 | ||
Fair value gain (loss) | 5 | 5 | 0 | ||
Buy EUR, Sell USD | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 79 | 79 | 0 | ||
Fair value gain (loss) | (3) | (3) | 0 | ||
Buy USD, Sell SEK | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 46 | 46 | 0 | ||
Fair value gain (loss) | 2 | 2 | 0 | ||
Buy SEK, Sell USD | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 45 | 45 | 0 | ||
Fair value gain (loss) | (1) | (1) | 0 | ||
Buy USD, Sell GBP | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 13 | 13 | 55 | ||
Fair value gain (loss) | 1 | 1 | 1 | ||
Buy GBP, Sell USD | Not Designated as Hedging Instrument | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | 13 | 13 | 0 | ||
Fair value gain (loss) | $ 0 | $ 0 | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Non-Recurring Basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Measurements on a Non-Recurring Basis [Line Items] | |||||
Upward adjustment to equity investment | $ 38,000,000 | ||||
Carrying value of the investment | $ 42,000,000 | $ 42,000,000 | |||
Nonrecurring | |||||
Fair Value Measurements on a Non-Recurring Basis [Line Items] | |||||
Asset impairment charges | $ 0 | $ 0 | $ 0 | $ 0 |
Deferred revenues (Details)
Deferred revenues (Details) - USD ($) $ in Billions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | |
Revenue from Contract with Customer [Abstract] | |||||
Deferred revenues | $ 0.8 | $ 0.8 | $ 1.6 | ||
Revenue recognized included in beginning deferred revenue | $ 0.1 | $ 0.1 | $ 1.4 | $ 1.6 |
Deferred revenues Deferred reve
Deferred revenues Deferred revenues - Remaining Performance Obligation (Details) $ in Billions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Contracted not recognized revenue | $ 2.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Contracted not recognized revenue | $ 1.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contracted not recognized revenue, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Contracted not recognized revenue | $ 0.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contracted not recognized revenue, period | 1 year |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease not yet commenced | $ 57 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Renewal term | 1 year |
Lease not yet commenced, term | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 10 years |
Renewal term | 5 years |
Lease not yet commenced, term | 5 years |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense and Other Details Related to Operating Leases (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Operating leases | ||
Operating lease costs | $ 19 | $ 58 |
Variable lease costs | $ 6 | 16 |
Supplemental Operating Cash Flows Information | ||
Cash paid for amounts included in the measurement of lease liabilities | 61 | |
ROU assets obtained in exchange for new lease obligations | $ 55 | |
Weighted Average Lease terms and discount rates | ||
Remaining lease term | 5 years 1 month 24 days | 5 years 1 month 24 days |
Discount rate | 4.09% | 4.09% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments Under Non-cancellable Operating Leases (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining three months) | $ 14 |
2020 | 74 |
2021 | 56 |
2022 | 48 |
2023 | 42 |
Thereafter | 74 |
Total future lease payments | 308 |
Less imputed interest | (32) |
Total lease liabilities | $ 276 |
Leases - Schedule of Operating
Leases - Schedule of Operating ROU Assets and Lease Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Total lease liabilities | $ 276 |
Other assets | |
Lessee, Lease, Description [Line Items] | |
ROU assets | 238 |
Accrued expenses and other current liabilities | |
Lessee, Lease, Description [Line Items] | |
Current lease liabilities | 61 |
Other liabilities | |
Lessee, Lease, Description [Line Items] | |
Non-current lease liabilities | $ 215 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments Prior to Adoption of Lease Standard (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 80 |
2020 | 70 |
2021 | 53 |
2022 | 45 |
2023 | 38 |
Thereafter | 60 |
Total | $ 346 |
Debt - Credit Facilities (Detai
Debt - Credit Facilities (Details) - Revolver - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,500 | $ 1,500 |
Long-term line of credit | $ 0 |
Debt - Unsecured Senior Notes,
Debt - Unsecured Senior Notes, Interest Expense and Financing Costs, and Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 2,700 | $ 2,700 | $ 2,700 | ||
Interest expense | 21 | $ 32 | 64 | $ 113 | |
Amortization of financing costs and discounts | 1 | $ 1 | 3 | $ 5 | |
Total Unsecured Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest payable | 14 | 14 | 15 | ||
Unsecured Debt | 2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 650 | $ 650 | $ 650 | ||
Interest rate | 2.30% | 2.30% | 2.30% | ||
Unsecured Debt | 2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 850 | $ 850 | $ 850 | ||
Interest rate | 3.40% | 3.40% | 3.40% | ||
Unsecured Debt | 2026 Notes | Significant Other Observable Inputs (Level 2) | |||||
Debt Instrument [Line Items] | |||||
Fair value of notes | $ 800 | ||||
Unsecured Debt | 2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 400 | $ 400 | $ 400 | ||
Interest rate | 2.60% | 2.60% | 2.60% | ||
Unsecured Debt | 2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 400 | $ 400 | $ 400 | ||
Interest rate | 3.40% | 3.40% | 3.40% | ||
Unsecured Debt | 2027 Notes | Significant Other Observable Inputs (Level 2) | |||||
Debt Instrument [Line Items] | |||||
Fair value of notes | $ 376 | ||||
Unsecured Debt | 2047 Notes | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding | $ 400 | $ 400 | $ 400 | ||
Interest rate | 4.50% | 4.50% | 4.50% | ||
Unsecured Debt | 2047 Notes | Significant Other Observable Inputs (Level 2) | |||||
Debt Instrument [Line Items] | |||||
Fair value of notes | $ 454 | $ 454 | $ 360 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Gross Carrying Amount | $ 2,700 | $ 2,700 |
Unamortized Discount and Deferred Financing Costs | (26) | (29) |
Net Carrying Amount | 2,674 | 2,671 |
Unsecured Debt | 2021 Notes | ||
Debt Instrument [Line Items] | ||
Gross Carrying Amount | 650 | 650 |
Unamortized Discount and Deferred Financing Costs | (2) | (3) |
Net Carrying Amount | 648 | 647 |
Unsecured Debt | 2022 Notes | ||
Debt Instrument [Line Items] | ||
Gross Carrying Amount | 400 | 400 |
Unamortized Discount and Deferred Financing Costs | (2) | (3) |
Net Carrying Amount | 398 | 397 |
Unsecured Debt | 2026 Notes | ||
Debt Instrument [Line Items] | ||
Gross Carrying Amount | 850 | 850 |
Unamortized Discount and Deferred Financing Costs | (8) | (8) |
Net Carrying Amount | 842 | 842 |
Unsecured Debt | 2027 Notes | ||
Debt Instrument [Line Items] | ||
Gross Carrying Amount | 400 | 400 |
Unamortized Discount and Deferred Financing Costs | (5) | (5) |
Net Carrying Amount | 395 | 395 |
Unsecured Debt | 2047 Notes | ||
Debt Instrument [Line Items] | ||
Gross Carrying Amount | 400 | 400 |
Unamortized Discount and Deferred Financing Costs | (9) | (10) |
Net Carrying Amount | $ 391 | $ 390 |
Debt - Schedule of Maturities (
Debt - Schedule of Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Maturities of Long-term Debt [Abstract] | ||
2019 (remaining three months) | $ 0 | |
2020 | 0 | |
2021 | 650 | |
2022 | 400 | |
2023 | 0 | |
Thereafter | 1,650 | |
Gross Carrying Amount | $ 2,700 | $ 2,700 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 11,392 | $ 9,462 | |
Cumulative impact from adoption of new revenue accounting standard | $ 3 | ||
Other comprehensive income (loss) before reclassifications | 26 | 11 | |
Amounts reclassified from accumulated other comprehensive income (loss) into earnings | (32) | 11 | |
Ending balance | 12,235 | 10,659 | |
Foreign currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (629) | (623) | |
Cumulative impact from adoption of new revenue accounting standard | 3 | ||
Other comprehensive income (loss) before reclassifications | (5) | (7) | |
Amounts reclassified from accumulated other comprehensive income (loss) into earnings | 0 | 0 | |
Ending balance | (634) | (627) | |
Unrealized gain (loss) on forward contracts | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 23 | ||
Other comprehensive income (loss) before reclassifications | 28 | ||
Amounts reclassified from accumulated other comprehensive income (loss) into earnings | (24) | ||
Ending balance | 27 | ||
Unrealized gain (loss) on forward contracts | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (15) | ||
Cumulative impact from adoption of new revenue accounting standard | 0 | ||
Other comprehensive income (loss) before reclassifications | 14 | ||
Amounts reclassified from accumulated other comprehensive income (loss) into earnings | 11 | ||
Ending balance | 10 | ||
Unrealized gain (loss) on available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 5 | 0 | |
Cumulative impact from adoption of new revenue accounting standard | $ 0 | ||
Other comprehensive income (loss) before reclassifications | 3 | 4 | |
Amounts reclassified from accumulated other comprehensive income (loss) into earnings | (8) | 0 | |
Ending balance | 0 | 4 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (601) | (638) | |
Ending balance | $ (607) | $ (613) |
Operating Segments and Geogra_3
Operating Segments and Geographic Region (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of reportable segments | segment | 3 | ||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | $ 1,214 | $ 1,658 | $ 3,679 | $ 4,427 | |||
Operating income | 247 | 265 | 1,153 | 1,294 | |||
Net effect from recognition (deferral) of deferred net revenues | (68) | 146 | (824) | (692) | |||
Net revenues | 1,282 | 1,512 | 4,503 | 5,119 | |||
Amortization of intangible assets | (50) | (84) | (152) | (280) | |||
Restructuring costs | (24) | $ (22) | $ (57) | 0 | (104) | 0 | |
Interest and other expense (income), net (Note 15) | (2) | 13 | (33) | 67 | |||
Loss on extinguishment of debt | 0 | 40 | 0 | 40 | |||
Income before income tax expense (benefit) | 249 | 212 | 1,186 | 1,187 | |||
Long-lived assets | 249 | 249 | $ 282 | ||||
Digital online channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 975 | 1,435 | 3,049 | 3,838 | |||
Net effect from recognition (deferral) of deferred net revenues | (39) | 159 | (444) | (160) | |||
Net revenues | 1,014 | 1,276 | 3,493 | 3,998 | |||
Retail channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 64 | 62 | 226 | 218 | |||
Net effect from recognition (deferral) of deferred net revenues | (29) | (14) | (373) | (546) | |||
Net revenues | 93 | 76 | 599 | 764 | |||
Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 175 | 161 | 404 | 371 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 1 | (7) | 14 | |||
Net revenues | 175 | 160 | 411 | 357 | |||
Console | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 196 | 367 | 735 | 1,010 | |||
Net effect from recognition (deferral) of deferred net revenues | (45) | 20 | (589) | (720) | |||
Net revenues | 241 | 347 | 1,324 | 1,730 | |||
PC | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 320 | 599 | 978 | 1,472 | |||
Net effect from recognition (deferral) of deferred net revenues | (21) | 117 | (218) | 20 | |||
Net revenues | 341 | 482 | 1,196 | 1,452 | |||
Mobile and ancillary | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 523 | 531 | 1,562 | 1,574 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | 8 | (10) | (6) | |||
Net revenues | 525 | 523 | 1,572 | 1,580 | |||
Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 175 | 161 | 404 | 371 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 1 | (7) | 14 | |||
Net revenues | 175 | 160 | 411 | 357 | |||
Americas | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 622 | 850 | 1,937 | 2,341 | |||
Net effect from recognition (deferral) of deferred net revenues | (33) | 76 | (469) | (399) | |||
Net revenues | 655 | $ 774 | 2,406 | $ 2,740 | |||
Long-lived assets | $ 179 | $ 179 | 203 | ||||
US | Revenues | Geographic Concentration Risk | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues as a percentage of consolidated net revenues | 46.00% | 46.00% | 48.00% | 47.00% | |||
EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | $ 426 | $ 594 | $ 1,240 | $ 1,532 | |||
Net effect from recognition (deferral) of deferred net revenues | (26) | 60 | (285) | (242) | |||
Net revenues | 452 | $ 534 | 1,525 | $ 1,774 | |||
Long-lived assets | $ 58 | $ 58 | 62 | ||||
UK | Revenues | Geographic Concentration Risk | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues as a percentage of consolidated net revenues | 13.00% | 13.00% | 10.00% | 11.00% | |||
Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | $ 166 | $ 214 | $ 502 | $ 554 | |||
Net effect from recognition (deferral) of deferred net revenues | (9) | 10 | (70) | (51) | |||
Net revenues | 175 | 204 | 572 | 605 | |||
Long-lived assets | 12 | 12 | $ 17 | ||||
Activision | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring costs | (1) | (12) | |||||
Blizzard | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring costs | (12) | (52) | |||||
King | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring costs | (4) | (17) | |||||
Other segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring costs | (7) | (23) | |||||
Reportable segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 1,103 | 1,538 | 3,443 | 4,195 | |||
Operating income | 294 | 485 | 900 | 1,275 | |||
Reportable segments | Net revenues from external customers | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 1,101 | 1,530 | 3,434 | 4,181 | |||
Reportable segments | Intersegment net revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 2 | 8 | 9 | 14 | |||
Reportable segments | Activision | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 209 | 397 | 794 | 1,047 | |||
Operating income | 26 | 112 | 153 | 288 | |||
Net effect from recognition (deferral) of deferred net revenues | (43) | 45 | (648) | (770) | |||
Net revenues | 252 | 352 | 1,442 | 1,817 | |||
Reportable segments | Activision | Net revenues from external customers | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 209 | 397 | 794 | 1,047 | |||
Reportable segments | Activision | Intersegment net revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | Activision | Digital online channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 163 | 356 | 609 | 876 | |||
Net effect from recognition (deferral) of deferred net revenues | (16) | 57 | (285) | (234) | |||
Net revenues | 179 | 299 | 894 | 1,110 | |||
Reportable segments | Activision | Retail channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 46 | 41 | 185 | 171 | |||
Net effect from recognition (deferral) of deferred net revenues | (27) | (12) | (363) | (536) | |||
Net revenues | 73 | 53 | 548 | 707 | |||
Reportable segments | Activision | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | Activision | Console | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 178 | 336 | 659 | 902 | |||
Net effect from recognition (deferral) of deferred net revenues | (36) | 29 | (563) | (695) | |||
Net revenues | 214 | 307 | 1,222 | 1,597 | |||
Reportable segments | Activision | PC | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 22 | 56 | 120 | 132 | |||
Net effect from recognition (deferral) of deferred net revenues | (7) | 16 | (84) | (76) | |||
Net revenues | 29 | 40 | 204 | 208 | |||
Reportable segments | Activision | Mobile and ancillary | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 9 | 5 | 15 | 13 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | (1) | 1 | |||
Net revenues | 9 | 5 | 16 | 12 | |||
Reportable segments | Activision | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | Activision | Americas | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 121 | 247 | 462 | 635 | |||
Net effect from recognition (deferral) of deferred net revenues | (20) | 33 | (390) | (439) | |||
Net revenues | 141 | 214 | 852 | 1,074 | |||
Reportable segments | Activision | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 63 | 117 | 252 | 326 | |||
Net effect from recognition (deferral) of deferred net revenues | (16) | 8 | (205) | (287) | |||
Net revenues | 79 | 109 | 457 | 613 | |||
Reportable segments | Activision | Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 25 | 33 | 80 | 86 | |||
Net effect from recognition (deferral) of deferred net revenues | (7) | 4 | (53) | (44) | |||
Net revenues | 32 | 29 | 133 | 130 | |||
Reportable segments | Blizzard | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 394 | 635 | 1,122 | 1,606 | |||
Operating income | 74 | 189 | 204 | 444 | |||
Net effect from recognition (deferral) of deferred net revenues | (23) | 97 | (167) | 70 | |||
Net revenues | 417 | 538 | 1,289 | 1,536 | |||
Reportable segments | Blizzard | Net revenues from external customers | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 392 | 627 | 1,113 | 1,592 | |||
Reportable segments | Blizzard | Intersegment net revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 2 | 8 | 9 | 14 | |||
Reportable segments | Blizzard | Digital online channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 314 | 581 | 922 | 1,434 | |||
Net effect from recognition (deferral) of deferred net revenues | (21) | 101 | (159) | 79 | |||
Net revenues | 335 | 480 | 1,081 | 1,355 | |||
Reportable segments | Blizzard | Retail channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 18 | 21 | 41 | 47 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | (2) | (10) | (10) | |||
Net revenues | 20 | 23 | 51 | 57 | |||
Reportable segments | Blizzard | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 62 | 33 | 159 | 125 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | (2) | 2 | 1 | |||
Net revenues | 62 | 35 | 157 | 124 | |||
Reportable segments | Blizzard | Console | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 18 | 31 | 76 | 108 | |||
Net effect from recognition (deferral) of deferred net revenues | (9) | (9) | (26) | (25) | |||
Net revenues | 27 | 40 | 102 | 133 | |||
Reportable segments | Blizzard | PC | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 272 | 515 | 776 | 1,236 | |||
Net effect from recognition (deferral) of deferred net revenues | (14) | 101 | (133) | 96 | |||
Net revenues | 286 | 414 | 909 | 1,140 | |||
Reportable segments | Blizzard | Mobile and ancillary | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 42 | 56 | 111 | 137 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 7 | (10) | (2) | |||
Net revenues | 42 | 49 | 121 | 139 | |||
Reportable segments | Blizzard | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 62 | 33 | 159 | 125 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | (2) | 2 | 1 | |||
Net revenues | 62 | 35 | 157 | 124 | |||
Reportable segments | Blizzard | Americas | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 193 | 285 | 533 | 759 | |||
Net effect from recognition (deferral) of deferred net revenues | (11) | 43 | (80) | 43 | |||
Net revenues | 204 | 242 | 613 | 716 | |||
Reportable segments | Blizzard | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 114 | 220 | 329 | 531 | |||
Net effect from recognition (deferral) of deferred net revenues | (10) | 48 | (71) | 34 | |||
Net revenues | 124 | 172 | 400 | 497 | |||
Reportable segments | Blizzard | Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 87 | 130 | 260 | 316 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | 6 | (16) | (7) | |||
Net revenues | 89 | 124 | 276 | 323 | |||
Reportable segments | King | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 500 | 506 | 1,527 | 1,542 | |||
Operating income | 194 | 184 | 543 | 543 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | 1 | 0 | (5) | |||
Net revenues | 502 | 505 | 1,527 | 1,547 | |||
Reportable segments | King | Net revenues from external customers | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 500 | 506 | 1,527 | 1,542 | |||
Reportable segments | King | Intersegment net revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | King | Digital online channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 500 | 506 | 1,527 | 1,542 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | 1 | 0 | (5) | |||
Net revenues | 502 | 505 | 1,527 | 1,547 | |||
Reportable segments | King | Retail channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | King | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | King | Console | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | King | PC | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 28 | 36 | 91 | 118 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | (1) | 0 | |||
Net revenues | 28 | 36 | 92 | 118 | |||
Reportable segments | King | Mobile and ancillary | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 472 | 470 | 1,436 | 1,424 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | 1 | 1 | (5) | |||
Net revenues | 474 | 469 | 1,435 | 1,429 | |||
Reportable segments | King | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Reportable segments | King | Americas | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 309 | 309 | 947 | 942 | |||
Net effect from recognition (deferral) of deferred net revenues | (2) | 0 | 1 | (3) | |||
Net revenues | 311 | 309 | 946 | 945 | |||
Reportable segments | King | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 137 | 144 | 417 | 446 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 1 | 0 | (2) | |||
Net revenues | 137 | 143 | 417 | 448 | |||
Reportable segments | King | Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 54 | 53 | 163 | 154 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | (1) | 0 | |||
Net revenues | 54 | 53 | 164 | 154 | |||
Non-reportable segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 113 | 128 | 245 | 246 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 3 | (9) | 13 | |||
Net revenues | 113 | 125 | 254 | 233 | |||
Non-reportable segments | Digital online channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Non-reportable segments | Retail channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Non-reportable segments | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 113 | 128 | 245 | 246 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 3 | (9) | 13 | |||
Net revenues | 113 | 125 | 254 | 233 | |||
Non-reportable segments | Console | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Non-reportable segments | PC | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Non-reportable segments | Mobile and ancillary | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Non-reportable segments | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 113 | 128 | 245 | 246 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 3 | (9) | 13 | |||
Net revenues | 113 | 125 | 254 | 233 | |||
Non-reportable segments | Americas | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 13 | 0 | 13 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 13 | 0 | 13 | |||
Non-reportable segments | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 113 | 115 | 245 | 233 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 3 | (9) | 13 | |||
Net revenues | 113 | 112 | 254 | 220 | |||
Non-reportable segments | Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Elimination of intersegment revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | (2) | (8) | (9) | (14) | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | (2) | (8) | (9) | (14) | |||
Elimination of intersegment revenues | Digital online channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | (2) | (8) | (9) | (14) | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | (2) | (8) | (9) | (14) | |||
Elimination of intersegment revenues | Retail channels | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Elimination of intersegment revenues | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Elimination of intersegment revenues | Console | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Elimination of intersegment revenues | PC | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | (2) | (8) | (9) | (14) | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | (2) | (8) | (9) | (14) | |||
Elimination of intersegment revenues | Mobile and ancillary | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Elimination of intersegment revenues | Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | 0 | 0 | 0 | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | 0 | 0 | 0 | |||
Elimination of intersegment revenues | Americas | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | (1) | (4) | (5) | (8) | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | (1) | (4) | (5) | (8) | |||
Elimination of intersegment revenues | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | (1) | (2) | (3) | (4) | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | (1) | (2) | (3) | (4) | |||
Elimination of intersegment revenues | Asia Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Segment revenues | 0 | (2) | (1) | (2) | |||
Net effect from recognition (deferral) of deferred net revenues | 0 | 0 | 0 | 0 | |||
Net revenues | 0 | (2) | (1) | (2) | |||
Reconciling items | |||||||
Segment Reporting Information [Line Items] | |||||||
Net effect from recognition (deferral) of deferred net revenues | 68 | (146) | 824 | 692 | |||
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues | 53 | (89) | 629 | 468 | |||
Share-based compensation expense | (27) | (55) | (127) | (166) | |||
Amortization of intangible assets | (50) | (83) | (151) | (279) | |||
Restructuring costs | (28) | 0 | (108) | 0 | |||
Reconciling items | Other segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income | $ 5 | $ 7 | $ 10 | $ (4) |
Restructuring - Schedule of Acc
Restructuring - Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities by Cost Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning | $ 27 | $ 34 | $ 0 | $ 0 | ||
Costs charged to expense | 24 | 22 | 57 | $ 0 | 104 | $ 0 |
Cash payments | (11) | (20) | (12) | |||
Non-cash charge adjustment | (13) | (9) | (11) | |||
Balance, ending | 27 | 27 | 34 | 27 | ||
Severance and employee related costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning | 26 | 32 | 0 | 0 | ||
Costs charged to expense | 5 | 9 | 43 | |||
Cash payments | (8) | (15) | (11) | |||
Non-cash charge adjustment | 0 | 0 | 0 | |||
Balance, ending | 23 | 26 | 32 | 23 | ||
Facilities and related costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning | 0 | 0 | 0 | 0 | ||
Costs charged to expense | 13 | 9 | 0 | |||
Cash payments | 0 | 0 | 0 | |||
Non-cash charge adjustment | (13) | (9) | 0 | |||
Balance, ending | 0 | 0 | 0 | 0 | ||
Other costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Balance, beginning | 1 | 2 | 0 | 0 | ||
Costs charged to expense | 6 | 4 | 14 | |||
Cash payments | (3) | (5) | (1) | |||
Non-cash charge adjustment | 0 | 0 | (11) | |||
Balance, ending | $ 4 | $ 1 | $ 2 | $ 4 |
Restructuring - Total Restructu
Restructuring - Total Restructuring and Related Costs by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | $ 24 | $ 22 | $ 57 | $ 0 | $ 104 | $ 0 |
Activision | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | 1 | 12 | ||||
Blizzard | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | 12 | 52 | ||||
King | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | 4 | 17 | ||||
Other segments | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related costs | 7 | $ 23 | ||||
Cost of revenues-product sales: Product costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Inventory write-down | $ 4 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Total expected pre-tax restructuring charges | $ 150 |
Severance and employee related costs | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of aggregate charge | 55.00% |
Facilities and related costs | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of aggregate charge | 20.00% |
Asset Write-Downs and Other Costs | |
Restructuring Cost and Reserve [Line Items] | |
Percentage of aggregate charge | 25.00% |
Restructuring - Schedule of Tot
Restructuring - Schedule of Total Expected Pre-tax Restructuring Charges (Details) $ in Millions | Sep. 30, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Total expected pre-tax restructuring charges | $ 150 |
Activision | |
Restructuring Cost and Reserve [Line Items] | |
Total expected pre-tax restructuring charges | 15 |
Blizzard | |
Restructuring Cost and Reserve [Line Items] | |
Total expected pre-tax restructuring charges | 66 |
King | |
Restructuring Cost and Reserve [Line Items] | |
Total expected pre-tax restructuring charges | 27 |
Other segments | |
Restructuring Cost and Reserve [Line Items] | |
Total expected pre-tax restructuring charges | $ 42 |
Interest and Other Expense (I_3
Interest and Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ (20) | $ (17) | $ (61) | $ (50) |
Interest expense from debt and amortization of debt discount and deferred financing costs | 23 | 33 | 68 | 118 |
Unrealized gain on equity investment | 0 | 0 | (38) | 0 |
Other expense (income), net | (5) | (3) | (2) | (1) |
Interest and other expense (income), net | $ (2) | $ 13 | $ (33) | $ 67 |
Income Taxes (Details)
Income Taxes (Details) € in Millions, $ in Millions, kr in Billions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018SEK (kr) | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | |
Income Tax [Line Items] | ||||||||
Income tax expense (benefit) | $ 45 | $ (48) | $ 208 | $ 25 | ||||
Effective tax rate (in percent) | 18.00% | (23.00%) | 18.00% | 2.00% | ||||
Statutory income tax rate (in percent) | 21.00% | |||||||
Swedish Tax Agency | ||||||||
Income Tax [Line Items] | ||||||||
Total assessment, including penalties and interest, not recorded | $ 359 | kr 3.5 | ||||||
French Tax Authority | ||||||||
Income Tax [Line Items] | ||||||||
Total assessment, including penalties and interest, not recorded | $ 625 | € 571 |
Computation of Basic_Diluted _3
Computation of Basic/Diluted Earnings Per Common Share - Computation EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||||||
Consolidated net income | $ 204 | $ 328 | $ 447 | $ 260 | $ 402 | $ 500 | $ 978 | $ 1,162 |
Denominator: | ||||||||
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares) | 767 | 763 | 766 | 761 | ||||
Employee stock options and awards (in shares) | 4 | 8 | 4 | 10 | ||||
Denominator for diluted earnings per common share - weighted-average common shares outstanding plus dilutive common shares under treasury stock method (in shares) | 771 | 771 | 770 | 771 | ||||
Basic earnings per common share (in dollars per share) | $ 0.27 | $ 0.34 | $ 1.28 | $ 1.53 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.26 | $ 0.34 | $ 1.27 | $ 1.51 |
Computation of Basic_Diluted _4
Computation of Basic/Diluted Earnings Per Common Share - Weighted-Average Shares Excluded from the Computation of Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Restricted stock units and options with underlying performance measures that had not yet been met (in shares) | 4 | 6 | 3 | 6 |
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive options to purchase shares of common stock (in shares) | 6 | 1 | 6 | 2 |
Capital Transactions - Repurcha
Capital Transactions - Repurchase Program (Details) - Share Repurchase Program 2019 - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Jan. 31, 2019 | |
Share Repurchase Program [Line Items] | ||
Share repurchase program, dollar amount authorized | $ 1,500,000,000 | |
Shares of common stock repurchased | 0 | |
Cost of common stock repurchased under the stock repurchase program | $ 0 |
Capital Transactions - Dividend
Capital Transactions - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | May 09, 2019 | Feb. 12, 2019 | May 09, 2018 | Feb. 08, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Dividends | ||||||||
Dividends per common share (in dollars per share) | $ 0.37 | $ 0.34 | $ 0.37 | $ 0.34 | ||||
Cash dividend payment | $ 283 | $ 259 | $ 283 | $ 259 |
Uncategorized Items - atvi-9302
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 91,000,000 |
Accounting Standards Update 2014-09 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 3,000,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 88,000,000 |