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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Feb. 21, 2019	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Activision Blizzard, Inc.
Entity Central Index Key	0000718877
Document Period End Date	Dec. 31, 2018
Document Type	10-K
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 57,447,460,580
Entity Common Stock, Shares Outstanding		763,833,873
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 4,225	$ 4,713
Accounts receivable, net of allowances of $190 and $279, at December 31, 2018 and December 31, 2017, respectively	1,035	918
Inventories, net	43	46
Software development	264	367
Other current assets	539	476
Total current assets	6,106	6,520
Software development	65	86
Property and equipment, net	282	294
Deferred income taxes, net	403	459
Other assets	482	440
Intangible assets, net	735	1,106
Goodwill	9,762	9,763
Total assets	17,835	18,668
Current liabilities:
Accounts payable	253	323
Deferred revenues	1,493	1,929
Accrued expenses and other liabilities	896	1,411
Total current liabilities	2,642	3,663
Long-term debt, net	2,671	4,390
Deferred income taxes, net	18	21
Other liabilities	1,147	1,132
Total liabilities	6,478	9,206
Commitments and contingencies (Note 22)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,192,093,991 and 1,186,181,666 shares issued at December 31, 2018 and December 31, 2017, respectively	0	0
Additional paid-in capital	10,963	10,747
Less: Treasury stock, at cost, 428,676,471 shares at December 31, 2018 and December 31, 2017	(5,563)	(5,563)
Retained earnings	6,558	4,916
Accumulated other comprehensive loss	(601)	(638)
Total shareholders’ equity	11,357	9,462
Total liabilities and shareholders’ equity	$ 17,835	$ 18,668

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 190	$ 279
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized	2,400,000,000	2,400,000,000
Common stock, shares issued	1,192,093,991	1,186,181,666
Treasury stock, shares	428,676,471	428,676,471

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net revenues
Net revenues	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 2,043	$ 1,618	$ 1,631	$ 1,726	$ 7,500	$ 7,017	$ 6,608
Cost of revenues:
Cost of revenues	832	513	510	662	803	552	561	585
Product development									1,101	1,069	958
Sales and marketing									1,062	1,378	1,210
General and administrative									832	760	634
Total costs and expenses									5,512	5,708	5,196
Operating income	694	265	434	595	221	257	339	493	1,988	1,309	1,412
Interest and other expense (income), net (Note 17)									71	146	214
Loss on extinguishment of debt									40	12	92
Income before income tax expense									1,877	1,151	1,106
Income tax expense									64	878	140
Net income	$ 650	$ 260	$ 402	$ 500	$ (584)	$ 188	$ 243	$ 426	$ 1,813	$ 273	$ 966
Earnings per common share
Basic (in dollars per share)	$ 0.85	$ 0.34	$ 0.53	$ 0.66	$ (0.77)	$ 0.25	$ 0.32	$ 0.57	$ 2.38	$ 0.36	$ 1.30
Diluted (in dollars per share)	$ 0.84	$ 0.34	$ 0.52	$ 0.65	$ (0.77)	$ 0.25	$ 0.32	$ 0.56	$ 2.35	$ 0.36	$ 1.28
Weighted-average number of shares outstanding
Basic (in shares)									762	754	740
Diluted (in shares)									771	766	754
Product sales
Net revenues
Net revenues									$ 2,255	$ 2,110	$ 2,196
Product costs
Cost of revenues:
Cost of revenues									719	733	741
Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									371	300	331
Subscription, licensing, and other revenues
Net revenues
Net revenues									5,245	4,907	4,412
Game operations and distribution costs
Cost of revenues:
Cost of revenues									1,028	984	851
Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									$ 399	$ 484	$ 471

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 1,813	$ 273	$ 966
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(9)	36	(29)
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	38	(44)	33
Unrealized gains (losses) on investments, net of tax	5	(1)	0
Total other comprehensive income (loss)	34	(9)	4
Comprehensive income	$ 1,847	$ 264	$ 970

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - 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, 2015	$ 8,068	$ 0	$ (5,637)	$ 10,242	$ 4,096	$ (633)
Balance (in shares) at Dec. 31, 2015		1,163	429
Components of comprehensive income:
Net income	966				966
Other comprehensive income (loss)	4					4
Issuance of common stock pursuant to employee stock options	105			105
Issuance of common stock pursuant to employee stock options (in shares)		7
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		7
Restricted stock surrendered for employees’ tax liability	(116)			(116)
Restricted stock surrendered for employees' tax liability (in shares)		(3)
Share-based compensation expense related to employee stock options and restricted stock units	135			135
Share-based compensation assumed in acquisition	76			76
Dividends ($0.34, $0.30, and $0.26 per common share at December 31, 2018, 2017, and 2016, respectively)	(193)				(193)
Indemnity on tax attributes assumed in connection with the Purchase Transaction	74		$ 74
Ending balance at Dec. 31, 2016	9,119	$ 0	$ (5,563)	10,442	4,869	(629)
Balance (in shares) at Dec. 31, 2016		1,174	429
Components of comprehensive income:
Net income	273				273
Other comprehensive income (loss)	(9)					(9)
Issuance of common stock pursuant to employee stock options	178			178
Issuance of common stock pursuant to employee stock options (in shares)		11
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	(54)			(54)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	181			181
Dividends ($0.34, $0.30, and $0.26 per common share at December 31, 2018, 2017, and 2016, respectively)	(226)				(226)
Ending 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	1,813				1,813
Other comprehensive income (loss)	34					34
Issuance of common stock pursuant to employee stock options	98			98
Issuance of common stock pursuant to employee stock options (in shares)		5
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	(93)			(93)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	211			211
Dividends ($0.34, $0.30, and $0.26 per common share at December 31, 2018, 2017, and 2016, respectively)	(259)				(259)
Ending balance at Dec. 31, 2018	$ 11,357	$ 0	$ (5,563)	$ 10,963	$ 6,558	$ (601)
Balance (in shares) at Dec. 31, 2018		1,192	429

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares				12 Months Ended
	Feb. 08, 2018	Feb. 09, 2017	Feb. 11, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.34	$ 0.30	$ 0.26	$ 0.34	$ 0.30	$ 0.26

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Cash flows from operating activities:

Net income

$ 1,813

$ 273

$ 966

Adjustments to reconcile net income to net cash provided by operating activities:

Deferred income taxes

(181)

(9)

Provision for inventories

Depreciation and amortization

509

888

829

Amortization of capitalized software development costs and intellectual property licenses

^[1]

489

311

321

Loss on extinguishment of debt (Note 13)

Amortization of debt discount and financing costs

Share-based compensation expense

^[2]

209

176

147

Other

Changes in operating assets and liabilities, net of effect from business acquisitions:

Accounts receivable, net

(114)

(165)

Inventories

(5)

(26)

Software development and intellectual property licenses

(372)

(301)

(362)

Other assets

(51)

(97)

(10)

Deferred revenues

(122)

220

(35)

Accounts payable

(65)

(50)

Accrued expenses and other liabilities

(574)

945

Net cash provided by operating activities

1,790

2,213

2,155

Cash flows from investing activities:

Proceeds from maturities of available-for-sale investments

116

Purchases of available-for-sale investments

(209)

(135)

Acquisition of business, net of cash acquired (see Note 23)

(4,586)

Capital expenditures

(131)

(155)

(136)

Other investing activities

(6)

(7)

Net cash used in investing activities

(230)

(207)

(4,729)

Cash flows from financing activities:

Proceeds from issuance of common stock to employees

178

106

(94)

(56)

(115)

Dividends paid

(259)

(226)

(195)

Proceeds from debt issuances, net of discounts

3,741

6,878

Repayment of long-term debt

(1,740)

(4,251)

(6,104)

Premium payment for early redemption of note (Note 13)

(25)

(63)

Other financing activities

(1)

(10)

(7)

Net cash (used in) provided by financing activities

(2,020)

(624)

500

Effect of foreign exchange rate changes on cash and cash equivalents

(31)

(56)

Net increase (decrease) in cash and cash equivalents and restricted cash

(491)

1,458

(2,130)

Cash and cash equivalents and restricted cash at beginning of period

4,720

3,262

5,392

Cash and cash equivalents and restricted cash at end of period

$ 4,229

$ 4,720

$ 3,262

[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.

Description of Business

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

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. (“Vivendi”), and Vivendi Games, Inc., then an indirect wholly-owned subsidiary of Vivendi, we were renamed Activision Blizzard, Inc.

The common stock of Activision Blizzard is traded on The Nasdaq Stock Market under the ticker symbol “ATVI.”

The King Acquisition

On February 23, 2016 (the “King Closing Date”), we acquired King Digital Entertainment, a leading interactive mobile entertainment company (“King”), by purchasing all of its outstanding shares (the “King Acquisition”), as further described in Note 23. Our consolidated financial statements include the operations of King commencing on the King Closing Date.

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 platforms. 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.

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. Going forward, Activision no longer has any material rights or obligations related to the Destiny franchise. As a result of the agreement to terminate the relationship, the Company recognized revenues of $164 million and GAAP operating income of $91 million for the year ended December 31, 2018.

(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 on mobile platforms, such as Google Inc.’s (“Google”) Android and Apple Inc.’s (“Apple”) 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.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Consolidation and Presentation

The accompanying consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates and assumptions.

Certain reclassifications have been made to prior-year amounts to conform to the current period presentation.

The Company considers events or transactions that occur after the balance sheet date, but before the financial statements are issued, for additional evidence relative to certain estimates or to identify matters that require additional disclosures.

Cash and Cash Equivalents

We consider all money market funds and highly liquid investments with original maturities of three months or less at the time of purchase to be “Cash and cash equivalents.”

Investment Securities

Investments in debt securities designated as available-for-sale are carried at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Unrealized gains and losses of the Company’s available-for-sale debt securities are excluded from earnings and are reported as a component of “Other comprehensive income (loss).”

Investments with original maturities greater than 90 days and remaining maturities of less than one year are normally classified within “Other current assets.” In addition, investments with maturities beyond one year may be classified within “Other current assets” if they are highly liquid in nature and represent the investment of cash that is available for current operations.

The specific identification method is used to determine the cost of securities disposed of, with realized gains and losses reflected in “Interest and other expense (income), net” in our consolidated statements of operations.

Investments in equity securities which are not accounted for under the equity method and for which there is not a readily determinable fair value are carried at cost, less impairment, and adjusted for changes resulting from observable price changes in orderly transactions for identical or similar investment of the same issuer.

Financial Instruments

The carrying amounts of “Cash and cash equivalents,” “Accounts receivable, net of allowances,” “Accounts payable,” and “Accrued expenses and other liabilities” approximate fair value due to the short-term nature of these accounts. Our investments in U.S. treasuries, government agency securities, and corporate bonds, if any, are carried at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics.

The Company transacts business in various foreign currencies and has significant international sales and expenses denominated in foreign currencies, subjecting us to foreign currency risk. To mitigate our foreign currency risk resulting from our foreign currency-denominated monetary assets, liabilities and earnings and our foreign currency risk related to functional currency-equivalent cash flows resulting from our intercompany transactions, we periodically enter into currency derivative contracts, principally forward contracts. These forward contracts generally have a maturity of less than one year. The counterparties for our currency derivative contracts are large and reputable commercial or investment banks.

We assess the nature of these derivatives under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815 to determine whether such derivatives should be designated as hedging instruments. The fair value of foreign currency contracts are estimated based on the prevailing exchange rates of the various hedged currencies as of the end of the period. We report the fair value of these contracts within “Other current assets,” “Accrued expense and other liabilities,” “Other assets,” or “Other liabilities,” as applicable, in our consolidated balance sheets.

We do not hold or purchase any foreign currency forward contracts for trading or speculative purposes.

For foreign currency forward contracts which are not designated as hedging instruments under ASC 815, changes in the estimated fair value of these derivatives are recorded within “General and administrative expenses” and “Interest and other expense, net” in our consolidated statements of operations, consistent with the nature of the underlying transactions.

For foreign currency forward contracts which have been designated as cash flow hedges in accordance with ASC 815, we assess the effectiveness of these cash flow hedges at inception and on an ongoing basis and determine if the hedges are effective at providing offsetting changes in cash flows of the hedged items. The Company records the changes in the estimated fair value of these derivatives in “Accumulated other comprehensive loss” and subsequently reclassifies the related amount of accumulated other comprehensive income (loss) to earnings within “General and administrative” or “Net revenues” when the hedged item impacts earnings, consistent with the nature and timing of the underlying transactions. Cash flows from these foreign currency forward contracts are classified in the same category as the cash flows associated with the hedged item in the consolidated statements of cash flows. We measure hedge ineffectiveness, if any, and if it is determined that a derivative has ceased to be a highly effective hedge, the Company will discontinue hedge accounting for the derivative.

Concentration of Credit Risk

Our concentration of credit risk relates to depositors holding the Company’s cash and cash equivalents and customers with significant accounts receivable balances.

Our cash and cash equivalents are invested primarily in money market funds consisting of short-term, high-quality debt instruments issued by governments and governmental organizations, financial institutions and industrial companies.

Our customer base includes retailers and distributors, including mass-market retailers, first party digital storefronts, consumer electronics stores, discount warehouses, and game specialty stores in the U.S. and other countries worldwide. We perform ongoing credit evaluations of our customers and maintain allowances for potential credit losses. We generally do not require collateral or other security from our customers.

For the year ended December 31, 2018, we had three customers—Apple, Sony Interactive Entertainment, Inc. (“Sony”), and Google—who accounted for 15%, 13%, and 11%, respectively, of net revenues. For the year ended December 31, 2017, we had three customers—Apple, Sony, and Google—who accounted for 16%, 14%, and 10%, respectively, of net revenues. For the year ended December 31, 2016, we had two customers—Sony and Apple—who each accounted for 13% of net revenues. No other customer accounted for 10% or more of our net revenues in the respective periods discussed above.

We had two customers—Sony and NetEase, Inc.—who accounted for 15% and 12%, respectively, of consolidated gross receivables at December 31, 2018. We had three customers—Sony, Microsoft Corporation’s (“Microsoft”), and Apple—who accounted for 17%, 14%, and 10%, respectively, of consolidated gross receivables at December 31, 2017. No other customer accounted for 10% or more of our consolidated gross receivables in the respective periods discussed above.

Inventories and Allowances for Obsolescence

Inventories consist of materials (including manufacturing royalties paid to console manufacturers), labor, and freight-in costs and are stated at the lower of cost (weighted-average method) or net realizable value. Inventories are relieved on a weighted-average cost method.

We regularly review inventory quantities on-hand and in the retail channels and will write down inventory on-hand based on excess or obsolete inventories, determined primarily by future anticipated demand for our products. Inventory write-downs are measured as the difference between the cost of the inventory and net realizable value, based upon assumptions about future demand, which are inherently difficult to assess and dependent on market conditions. At the point of a loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established basis.

Software Development Costs and Intellectual Property Licenses

Software development costs include payments made to independent software developers under development agreements, as well as direct costs incurred for internally developed products. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable. Technological feasibility of a product requires both technical design documentation and game design documentation, or the completed and tested product design and a working model. Significant management judgments and estimates are utilized in the assessment of when technological feasibility is established and the evaluation is performed on a product-by-product basis. For products where proven technology exists, this may occur early in the development cycle. Software development costs related to online hosted revenue arrangements are capitalized after the preliminary project phase is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Prior to a product’s release, if and when we believe capitalized costs are not recoverable, we expense the amounts as part of “Cost of revenues—software royalties, amortization, and intellectual property licenses.” Capitalized costs for products that are canceled or are expected to be abandoned are charged to “Product development” in the period of cancellation. Amounts related to software development which are not capitalized are charged immediately to “Product development.”

Commencing upon a product’s release, capitalized software development costs are amortized to “Cost of revenues—software royalties, amortization, and intellectual property licenses” based on the ratio of current revenues to total projected revenues for the specific product, generally resulting in an amortization period of six months to approximately two years.

Intellectual property license costs represent license fees paid to intellectual property rights holders for use of their trademarks, copyrights, software, technology, music or other intellectual property or proprietary rights in the development of our products. Depending upon the agreement with the rights holder, we may obtain the right to use the intellectual property in multiple products over a number of years, or alternatively, for a single product. Prior to a product’s release, if and when we believe capitalized costs are not recoverable, we expense the amounts as part of “Cost of revenues—software royalties, amortization, and intellectual property licenses.” Capitalized intellectual property costs for products that are canceled or are expected to be abandoned are charged to “Product development” in the period of cancellation.

Commencing upon a product’s release, capitalized intellectual property license costs are amortized to “Cost of revenues—software royalties, amortization, and intellectual property licenses” based on the ratio of current revenues for the specific product to total projected revenues for all products in which the licensed property will be utilized. As intellectual property license contracts may extend for multiple years and can be used in multiple products to be released over a period beyond one year, the amortization of capitalized intellectual property license costs relating to such contracts may extend beyond one year.

We evaluate the future recoverability of capitalized software development costs and intellectual property licenses on a quarterly basis. For products that have been released in prior periods, the primary evaluation criterion is the actual performance of the title to which the costs relate. For products that are scheduled to be released in future periods, recoverability is evaluated based on the expected performance of the specific products to which the costs relate or in which the licensed trademark or copyright is to be used. Criteria used to evaluate expected product performance include: historical performance of comparable products developed with comparable technology; market performance of comparable titles; orders for the product prior to its release; general market conditions; and, for any sequel product, estimated performance based on the performance of the product on which the sequel is based. Further, as many of our capitalized intellectual property licenses extend for multiple products over multiple years, we also assess the recoverability of capitalized intellectual property license costs based on certain qualitative factors, such as the success of other products and/or entertainment vehicles utilizing the intellectual property, whether there are any future planned theatrical releases or television series based on the intellectual property, and the rights holder’s continued promotion and exploitation of the intellectual property.

Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if matters resolve in a manner that is inconsistent with management’s expectations.

Assets Recognized from Costs to Obtain a Contract with a Customer

We apply the practical expedient to expense, as incurred, costs to obtain a contract with a customer when the amortization period would have been one year or less for certain similar contracts in which commissions are paid to internal personnel or third parties. We believe application of the practical expedient has a limited effect on the amount and timing of cost recognition. Total capitalized costs to obtain a contract were immaterial as of December 31, 2018.

Long-Lived Assets

Property and Equipment.

Property and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful life of the asset (i.e., 25 to 33 years for buildings, and 2 to 5 years for computer equipment, office furniture and other equipment). When assets are retired or disposed of, the cost and accumulated depreciation thereon are removed and any resulting gains or losses are included in the consolidated statements of operations. Leasehold improvements are amortized using the straight-line method over the estimated life of the asset, not to exceed the length of the lease. Repair and maintenance costs are expensed as incurred.

Goodwill and Other Indefinite-Lived Assets.

Goodwill is considered to have an indefinite life and is carried at cost. Acquired trade names are assessed as indefinite lived assets if there is no foreseeable limits on the periods of time over which they are expected to contribute cash flows. Goodwill and indefinite-lived assets are not amortized, but are subject to an annual impairment test, as well as between annual tests when events or circumstances indicate that the carrying value may not be recoverable. We perform our annual impairment testing at December 31.

Our annual goodwill impairment test is performed at the reporting unit level. As of December 31, 2018 and 2017, our reporting units are the same as our operating segments. We test goodwill for possible impairment by first determining the fair value of the related reporting unit and comparing this value to the recorded net assets of the reporting unit, including goodwill. The fair value of our reporting units is determined using an income approach based on discounted cash flow models. In the event the recorded net assets of the reporting unit exceed the estimated fair value of such assets, we perform a second step to measure the amount of the impairment, which is equal to the amount by which the recorded goodwill exceeds the implied fair value of the goodwill after assessing the fair value of each of the assets and liabilities within the reporting unit. We have determined that no impairment has occurred at December 31, 2018, 2017, and 2016 based upon a set of assumptions regarding discounted future cash flows, which represent our best estimate of future performance at this time.

We test indefinite-lived acquired trade names for possible impairment by using a discounted cash flow model to estimate fair value. We have determined that no impairment has occurred at December 31, 2018, 2017, and 2016 based upon a set of assumptions regarding discounted future cash flows, which represent our best estimate of future performance at this time.

Changes in our assumptions underlying our estimates of fair value, which will be a function of our future financial performance and changes in economic conditions, could result in future impairment charges.

Amortizable Intangible and Other Long-lived Assets.

Intangible assets subject to amortization are carried at cost less accumulated amortization, and amortized over the estimated useful life in proportion to the economic benefits received.

We evaluate the recoverability of our definite-lived intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. We consider certain events and circumstances in determining whether the carrying value of identifiable intangible assets and other long-lived assets, other than indefinite-lived intangible assets, may not be recoverable including, but not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in our stock price for a sustained period of time; and changes in our business strategy. If we determine that the carrying value may not be recoverable, we estimate the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group to determine whether an impairment exists. If an impairment is indicated based on a comparison of the asset groups’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. We did not record an impairment charge to our definite-lived intangible assets as of December 31, 2018, 2017, and 2016.

Revenue Recognition

In May 2014, the FASB issued new accounting guidance related to revenue recognition. The new standard replaces all current U.S. GAAP guidance on this topic, eliminating all industry-specific guidance and providing a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted the new accounting standard and related amendments (collectively, the “new revenue accounting standard”). This is reflected in our significant accounting policy disclosure for revenue recognition below. Refer to Note 3 for the impact of adoption on our consolidated financial statements.

We generate revenue primarily through the sale of our interactive entertainment content and services, principally for the console, PC, and mobile platforms, as well as through the licensing of our intellectual property. Our products span various genres, including first-person shooter, action/adventure, role-playing, strategy, and “match three.” We primarily offer the following products and services:


•	full games, which typically provide access to main game content, primarily for the console or PC platform;


•	downloadable content, which provides players with additional in-game content to purchase following the purchase of a full game;


•	microtransactions, which typically provide relatively small pieces of additional in-game content or enhancements to gameplay; and


•	subscriptions to players in our World of Warcraft franchise, which provide continual access to the game content.

When control of the promised products and services is transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services.

We determine revenue recognition by:


•	identifying the contract, or contracts, with a customer;


•	identifying the performance obligations in each contract;


•	determining the transaction price;


•	allocating the transaction price to the performance obligations in each contract; and


•	recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.

Certain products are sold to customers with a “street date” (which is the earliest date these products may be sold by retailers). For these products, we recognize revenues on the later of the street date and the date the product is sold to our customer. For digital full-game downloads sold to customers, we recognize revenue when it is available for download or is activated for gameplay. Revenues are recorded net of taxes assessed by governmental authorities that are imposed at the time of the specific revenue-producing transaction between us and our customer, such as sales and value-added taxes.

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment immediately upon purchase or within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less.

Product Sales

Product sales consist of sales of our games, including physical products and digital full-game downloads. We recognize revenues from the sale of our products after both (1) control of the products has been transferred to our customers and (2) the underlying performance obligations have been satisfied.

Revenues from product sales are recognized after deducting the estimated allowance for returns and price protection, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and price protection are estimated at contract inception and updated at the end of each reporting period as additional information becomes available.

Sales incentives and other consideration given by us to our customers, such as rebates and product placement fees, are considered adjustments of the transaction price of our products and are reflected as reductions to revenues. Sales incentives and other consideration that represent costs incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are recorded as “Sales and marketing” expense when the benefit from the sales incentive is separable from sales to the same customer and we can reasonably estimate the fair value of the good or service.

Products with Online Functionality

For our software products that include both offline functionality (i.e., do not require an Internet connection to access) and significant online functionality, such as for most of our titles from the Call of Duty franchise, we evaluate whether the license of our intellectual property and the online functionality are distinct and separable. This evaluation is performed for each software product or product add-on, including downloadable content. If we determine that our software products contain a license of intellectual property separate from the online functionality, we consider market conditions and other observable inputs to estimate the transaction price for the license, since we do not generally sell the software license on a standalone basis. These products may be sold in a bundle with other products and services, which often results in the recognition of additional performance obligations.

We recognize revenue for arrangements that include both a license of intellectual property and separate online functionality when control of the license transfers to our customers for the portion of the transaction price allocable to the license and ratably over the estimated service period for the portion of the transaction price allocable to the online functionality. Similarly, we defer a portion of the cost of revenues on these arrangements and recognize the costs as the related revenues are recognized. The cost of revenues that are deferred include product costs, distribution costs, and software royalties, amortization, and intellectual property licenses, and excludes intangible asset amortization.

Online Hosted Software Arrangements

For our online hosted software arrangements, such as titles for the Overwatch, World of Warcraft, and Candy Crush franchises, substantially all gameplay and functionality are obtained through our continuous hosting of the game content for the player. Similar to our software products with online functionality, these arrangements may include other products and services, which often results in the recognition of additional performance obligations. Revenues related to online hosted software arrangements are generally recognized ratably over the estimated service period.

Subscription Arrangements

Subscription revenue arrangements are mostly derived from World of Warcraft, which is playable through Blizzard’s servers and is generally sold on a subscription-only basis. Revenues associated with the sales of subscriptions are deferred until the subscription service is activated by the consumer and are then recognized ratably over the subscription period as the performance obligations are satisfied.

Revenues attributable to the purchase of World of Warcraft software by our customers, including expansion packs, are classified as “Product sales,” whereas revenues attributable to subscriptions and other in-game revenues are classified as “Subscription, licensing, and other revenues.”

Licensing Revenues

In certain countries, we utilize third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to specified or unspecified future updates. Our estimate of the selling price is comprised of several factors including, but not limited to, prior selling prices, prices charged separately by other third-party vendors for similar service offerings, and a cost-plus-margin approach. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee (1) when we transfer control of the upfront license of intellectual property, (2) upon transfer of control of future specified updates, and/or (3) ratably over the contractual term in which we provide the customer with unspecified future updates. Royalty payments in excess of the minimum guarantee are generally recognized when the licensed product is sold by the licensee.

Other Revenues

Other revenues primarily include revenues from downloadable content (e.g., multi-player content packs), microtransactions, and licensing of intellectual property other than software to third-parties.

Microtransaction revenues are derived from the sale of virtual currencies and goods to our players to enhance their gameplay experience. Proceeds from these sales of virtual currencies and goods are initially recorded in deferred revenue. Proceeds from the sales of virtual currencies are recognized as revenues when a player uses the virtual goods purchased with a virtual currency. Proceeds from the sales of virtual goods directly are similarly recognized as revenues when a player uses the virtual goods. We categorize our virtual goods as either “consumable” or “durable.” Consumable virtual goods represent goods that can be consumed by a specific player action; accordingly, we recognize revenues from the sale of consumable virtual goods as the goods are consumed and our performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the player over an extended period of time; accordingly, we recognize revenues from the sale of durable virtual goods ratably over the period of time the goods are available to the player and our performance obligation is satisfied, which is generally the estimated service period.

Revenues from the licensing of intellectual property other than software to third parties primarily include the licensing of our (1) brand, logo, or franchise to customers and (2) media content. Fixed fee payments from customers for the license of our brand or franchise are generally recognized over the license term. Fixed fee payments from customers for the license of our media content are generally recognized when control has transferred to the customer, which may be upfront or over time.

Significant Judgment around Revenue Arrangements with Multiple Deliverables

Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Certain of our games, such as titles in the Call of Duty franchise, may contain a license of our intellectual property to play the game offline, but also depend on a significant level of integration and interdependency with the online functionality. In these cases, significant judgment is required to determine whether this license of our intellectual property should be considered distinct and accounted for separately, or not distinct and accounted for together with the online functionality provided and recognized over time. Generally, for titles in which the software license is functional without the online functionality and a significant component of gameplay is available offline, we believe we have separate performance obligations for the license of the intellectual property and the online functionality.

Significant judgment is also required to determine the standalone selling price for each distinct performance obligation and to determine whether there is a discount that needs to be allocated based on the relative standalone selling price of the various products and services. To estimate the standalone selling price we consider market data, including our pricing strategies for the product being evaluated and other similar products we may offer, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin.

Estimated Service Period

We consider a variety of data points when determining the estimated service period for players of our games, including the weighted average number of days between players’ first and last days played online, the average total hours played, the average number of days in which player activity stabilizes, and the weighted-average number of days between players’ first purchase date and last date played online. We also consider known online trends, the service periods of our previously released games, and, to the extent publicly available, the service periods of our competitors’ games that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of services to our customers, as it is the best representation of the time period during which our customers play our games. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current games are generally less than 12 months.

Principal Agent Considerations

We evaluate sales of our products and content via third-party digital storefronts, such as Microsoft’s Xbox Games Store, Sony’s PSN, the Apple App Store, and the Google Play Store, to determine whether revenues should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining whether we are the principal in the sale (gross reporting) or an agent (net reporting) include, but are not limited to:


•	which party is primarily responsible for fulfilling the promise to provide the specified good or service; and


•	which party has discretion in establishing the price for the specified good or service.

Based on our evaluation of the above indicators, we report revenues on a gross basis for sales arrangements via the Apple App Store and the Google Play Store, and we report revenues on a net basis (i.e., net of fees retained by the digital storefront) for sales arrangements via Microsoft’s Xbox Games Store and Sony’s PSN.

Allowances for Returns and Price Protection

We closely monitor and analyze the historical performance of our various titles, the performance of products released by other publishers, market conditions, and the anticipated timing of other releases to assess future demand of current and upcoming titles. Initial volumes shipped upon title launch and subsequent reorders are evaluated with the goal of ensuring that quantities are sufficient to meet the demand from the retail markets, but at the same time are controlled to prevent excess inventory in the channel. We benchmark units to be shipped to our customers using historical and industry data.

We may permit product returns from, or grant price protection to, our customers under certain conditions. In general, price protection refers to the circumstances in which we elect to decrease, on a short- or longer-term basis, the wholesale price of a product by a certain amount and, when granted and applicable, allow customers a credit against amounts owed by such customers to us with respect to open and/or future invoices. The conditions our customers must meet to be granted the right to return products or receive price protection credits include, among other things, compliance with applicable trading and payment terms and consistent return of inventory and delivery of sell-through reports to us. We may also consider other factors, including achievement of sell-through performance targets, the facilitation of slow-moving inventory, and other market factors.

Significant management judgments and estimates with respect to potential future product returns and price protection related to current period product revenues must be made and used when establishing the allowance for returns and price protection in any accounting period. We estimate the amount of future returns and price protection for current period product revenues utilizing historical experience and information regarding inventory levels and the demand and acceptance of our products by the end consumer, and record revenue for the transferred products in the amount of consideration to which we expect to be entitled. The following factors are used to estimate the amount of future returns and price protection for a particular title: historical performance of titles in similar genres; historical performance of the hardware platform; historical performance of the franchise; console hardware life cycle; sales force and retail customer feedback; industry pricing; future pricing assumptions; weeks of on-hand retail channel inventory; absolute quantity of on-hand retail channel inventory; our warehouse on-hand inventory levels; the title’s recent sell-through history (if available); marketing trade programs; and the performance of competing titles. The relative importance of these factors varies among titles depending upon, among other things, genre, platform, seasonality, and sales strategy.

Based upon historical experience, we believe that our estimates are reasonable. However, actual returns and price protection could vary materially from our allowance estimates due to a number of reasons, including, among others: a lack of consumer acceptance of a title, the release in the same period of a similarly themed title by a competitor, or technological obsolescence due to the emergence of new hardware platforms. There may be material differences in the amount and timing of our revenues for any period if factors or market conditions change or if matters resolve in a manner that is inconsistent with management’s assumptions utilized in determining the allowances for returns and price protection.

Contract Balances

We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable.

The allowance for doubtful accounts reflects our best estimate of probable losses inherent in our accounts receivable balance. In estimating the allowance for doubtful accounts, we analyze the age of current outstanding account balances, historical bad debts, customer concentrations, customer creditworthiness, current economic trends, and changes in our customers’ payment terms and their economic condition, as well as whether we can obtain sufficient credit insurance. Any significant changes in any of these criteria would affect management’s estimates in establishing our allowance for doubtful accounts.

Deferred revenue is comprised primarily of unearned revenue related to the sale of products with online functionality or online hosted arrangements. We typically invoice, and collect payment for, these sales at the beginning of the contract period and recognize revenue ratably over the estimated service period. Deferred revenue also includes payments for: product sales pending delivery or activation; subscription revenues; licensing revenues with fixed minimum guarantees; and other revenues for which we have been paid in advance and earn the revenue when we transfer control of the product or service.

Refer to Note 12 for further information, including changes in deferred revenue during the period.

Shipping and Handling

Shipping and handling costs consist primarily of packaging and transportation charges incurred to move finished goods to customers. We recognize all shipping and handling costs as an expense in “Cost of revenues-product costs,” including those incurred when control of the product has already transferred to the customer.

Cost of Revenues

Our cost of revenues consist of the following:

Cost of revenues—product sales:


(1)	“Product costs”—includes the manufacturing costs of goods produced and sold. These generally include product costs, manufacturing royalties (net of volume discounts), personnel-related costs, warehousing, and distribution costs. We generally recognize volume discounts when they are earned (typically in connection with the achievement of unit-based milestones).

(2)

“Software royalties, amortization, and intellectual property licenses”—includes the amortization of capitalized software costs and royalties attributable to product sales revenues. These are costs capitalized on the balance sheet until the respective games are released, at which time the capitalized costs are amortized. Also included is amortization of intangible assets recognized in purchase accounting attributable to product sales revenues.

Cost of revenues—subscription, licensing, and other revenues:


(1)	“Game operations and distribution costs”—includes costs to operate our games, such as customer service, Internet bandwidth and server costs, platform provider fee, and payment provider fees, along with costs to associated with our esports activities.

(2)

“Software royalties, amortization, and intellectual property licenses”—includes the amortization of capitalized software costs and royalties attributable to subscription, licensing and other revenues. These are costs capitalized on the balance sheet until the respective games are released, at which time the capitalized costs are amortized. Also included is amortization of intangible assets recognized in purchase accounting attributable to subscription, licensing and other revenues.

Advertising Expenses

We expense advertising as incurred, except for production costs associated with media advertising, which are deferred and charged to expense when the related advertisement is run for the first time. Advertising expenses for the years ended December 31, 2018, 2017, and 2016 were $631 million, $708 million, and $641 million, respectively, and are included in “Sales and marketing” in the consolidated statements of operations.

Income Taxes

We record a tax provision for the anticipated tax consequences of the reported results of operations. In accordance with ASC Topic 740, the provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. We evaluate deferred tax assets each period for recoverability. For those assets that do not meet the threshold of “more likely than not” that they will be realized in the future, a valuation allowance is recorded.

We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We recognize interest and penalties, if any, related to unrecognized tax benefits in “Income tax expense.”

On December 22, 2017, tax reform legislation known as the Tax Cuts and Jobs Act (the “U.S. Tax Reform Act”) was enacted in the United States. The U.S. Tax Reform Act, among other things, reduced the U.S. corporate income tax rate from 35% to 21% beginning in 2018 and implemented a modified territorial tax system that imposed a one-time tax on deemed repatriated earnings of foreign subsidiaries (“Transition Tax”).

On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on how to account for the effects of the U.S. Tax Reform Act under ASC 740. SAB 118 enabled companies to record a provisional amount for the effects of the U.S. Tax Reform Act based on a reasonable estimate, subject to adjustment during a measurement period of up to one year, until accounting is complete. In the fourth quarter of 2018, we completed our analysis to determine the effects of the U.S. Tax Reform Act. As a result, we made an election to record deferred U.S. taxes with respect to earnings of our foreign subsidiaries subject to global intangible low-taxed income (“GILTI”). Refer to Note 18 for further details regarding this policy election.

Excess tax benefits and tax deficiencies are recorded as an income tax expense or benefit in the consolidated statement of operations and the tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur.

Foreign Currency Translation

All assets and liabilities of our foreign subsidiaries who have a functional currency other than U.S. dollars are translated into U.S. dollars at the exchange rate in effect at the balance sheet date, and revenue and expenses are translated at average exchange rates during the period. The resulting translation adjustments are reflected as a component of “Accumulated other comprehensive loss” in shareholders’ equity.

Earnings (Loss) Per Common Share

“Basic (loss) earnings per common share” is computed by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding for the periods presented. “Diluted earnings (loss) per common share” is computed by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding, increased by the weighted-average number of common stock equivalents. Common stock equivalents are calculated using the treasury stock method and represent incremental shares issuable upon exercise of our outstanding options. However, potential common shares are not included in the denominator of the diluted earnings (loss) per common share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded.

When we determine whether instruments granted in share-based payment transactions are participating securities, unvested share-based awards which include the right to receive non-forfeitable dividends or dividend equivalents are considered to participate with common stock in undistributed earnings. With participating securities, we are required to calculate basic and diluted earnings (loss) per common share amounts under the two-class method. The two-class method excludes from the earnings (loss) per common share calculation any dividends paid or owed to participating securities and any undistributed earnings considered to be attributable to participating securities.

Share-Based Payments

We account for share-based payments in accordance with ASC Subtopic 718-10 and ASC Subtopic 505-50. Share-based compensation expense for a given grant is recognized over the requisite service period (that is, the period for which the employee is being compensated) and is based on the value of share-based payment awards after a reduction for estimated forfeitures. Forfeitures are estimated at the time of grant and are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

We generally estimate the value of stock options using a binomial-lattice model. This estimate is affected by our stock price, as well as assumptions regarding a number of highly complex and subjective variables, including our expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors.

We generally determine the fair value of restricted stock units based on the closing market price of the Company’s common stock on the date of grant, reduced by the present value of the estimated future dividends during the vesting period in which the restricted stock units holder will not participate. Certain restricted stock units granted to our employees and senior management vest based on the achievement of pre-established performance or market conditions. For performance-based restricted stock units, each quarter we update our assessment of the probability that the specified performance criteria will be achieved. We amortize the fair values of performance-based restricted stock units over the requisite service period, adjusting for estimated forfeitures for each separately vesting tranche of the award. For market-based restricted stock units, we estimate the fair value at the date of grant using a Monte Carlo valuation methodology and amortize those fair values over the requisite service period, adjusting for estimated forfeitures for each separately vesting tranche of the award. The Monte Carlo methodology that we use to estimate the fair value of market-based restricted stock units at the date of grant incorporates into the valuation the possibility that the market condition may not be satisfied. Provided that the requisite service is rendered, the total fair value of the market-based restricted stock units at the date of grant must be recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria.

For share-based compensation grants that are liability classified, we update our grant date valuation at each reporting period and recognize a cumulative catch-up adjustment for changes in the value related to the requisite service already rendered.

Loss Contingencies

ASC Topic 450 governs the disclosure of loss contingencies and accrual of loss contingencies in respect of litigation and other claims. We record an accrual for a potential loss when it is probable that a loss will occur and the amount of the loss can be reasonably estimated. When the reasonable estimate of the potential loss is within a range of amounts, the minimum of the range of potential loss is accrued, unless a higher amount within the range is a better estimate than any other amount within the range. Moreover, even if an accrual is not required, we provide additional disclosure related to litigation and other claims when it is reasonably possible (i.e., more than remote) that the outcomes of such litigation and other claims include potential material adverse impacts on us.

Recently Issued Accounting Pronouncements

12 Months Ended

Dec. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued Accounting Pronouncements

Recently adopted accounting pronouncements

Revenue recognition

As noted in Note 2 above, we adopted the new revenue accounting standard effective January 1, 2018. We utilized the modified retrospective method upon adoption and as a result, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Additionally, we elected to apply the new revenue accounting standard only to contracts not completed as of the adoption date. For contracts that were modified before the period of adoption, we elected to reflect the aggregate effect of all modifications when (1) identifying the satisfied and unsatisfied performance obligations, (2) determining the transaction price, and (3) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the new revenue accounting standard as an adjustment to the opening balance of retained earnings. The cumulative effect adjustment recorded to our retained earnings was $88 million (see our consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our consolidated balance sheet at January 1, 2018 (amounts in millions):



Consolidated Balance Sheet:	Balance at December 31, 2017		Adjustments due to adoption of new revenue accounting standard			Balance at January 1, 2018
Assets
Accounts receivable, net	$	918	$	3		$	921
Software development	367		(20		)	347
Other current assets	476		(35		)	441
Deferred income taxes, net	459		(32		)	427
Other assets	440		4			444

Liabilities and Shareholders’ Equity
Deferred revenues	$	1,929	$	(194	)	$	1,735
Other liabilities	1,132		23			1,155
Shareholders’ equity	9,462		91			9,553

The most significant impacts of the new revenue accounting standard for us are:

•

The accounting for our sales of our games with significant online functionality for which we do not have vendor-specific objective evidence (“VSOE”) for unspecified future updates and ongoing online services provided. Under the prior accounting standards, VSOE for undelivered elements was required. This requirement was eliminated under the new revenue accounting standard. Accordingly, we are required to recognize as revenue a portion of the sales price upon delivery of this software, as compared to recognizing the entire sales price ratably over an estimated service period as previously required. This difference in accounting primarily impacts revenues from many of the titles within our Call of Duty franchise, where approximately 20% of the sales price is now recognized as revenue upon delivery of the games to our customers. The amount of revenue recognized upon delivery of games to our customers is analyzed on a title-by-title basis and may change in the future. For example, the entire sales price from our Call of Duty: Black Ops 4 release is being recognized ratably over an estimated service period, as the gameplay has an increased focus towards the online competitive and cooperative game modes with no single-player campaign mode. Many of our other franchises, such as Overwatch, World of Warcraft, and Candy Crush, are online hosted arrangements, and the accounting for our sales of these games under the new standard is relatively unchanged; and


•	The accounting for certain of our software licensing arrangements. While the impact of the new revenue accounting standard may differ on a contract-by-contract basis (as the actual revenue recognition treatment required under the standard will depend on contract-specific terms), the new revenue accounting standard generally results in earlier revenue recognition for these arrangements.

Adoption of the new revenue accounting standard impacted our consolidated statement of operations for the year ended December 31, 2018, and our consolidated balance sheet as of December 31, 2018, as follows (in millions, except per share data):



	For the Year Ended December 31, 2018
Consolidated Statement of Operations:	Under new revenue accounting standard		Under old revenue accounting standards		Increase (decrease) due to adoption of new revenue accounting standard
Net revenues
Product sales	$	2,255	$	2,398	$	(143	)
Subscription, licensing, and other revenues	5,245		5,166		79
Total net revenues	7,500		7,564		(64		)

Costs and expenses
Cost of revenues—product sales:
Product costs	719		737		(18		)
Software royalties, amortization, and intellectual property licenses	371		389		(18		)
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs	1,028		1,028		—
Software royalties, amortization, and intellectual property licenses	399		403		(4		)
Product development	1,101		1,101		—
Sales and marketing	1,062		1,063		(1		)
General and administrative	832		832		—
Total costs and expenses	5,512		5,553		(41		)

Operating income	1,988		2,011		(23		)
Interest and other expense (income), net	71		71		—
Loss on extinguishment of debt	40		40		—
Income before income tax expense	1,877		1,900		(23		)
Income tax expense	64		65		(1		)
Net income	$	1,813	$	1,835	$	(22	)

Earnings per common share
Basic	$	2.38	$	2.41	$	(0.03	)
Diluted	$	2.35	$	2.38	$	(0.03	)



	At December 31, 2018
Consolidated Balance Sheet:	Under new revenue accounting standard		Under old revenue accounting standards		Increase (decrease) due to adoption of new revenue accounting standard
Assets
Accounts receivable, net	$	1,035	$	1,037	$	(2	)
Software development	264		266		(2		)
Other current assets	539		559		(20		)
Deferred income taxes, net	403		453		(50		)
Other assets	482		493		(11		)

Liabilities and Shareholders’ Equity
Deferred revenues	$	1,493	$	1,674	$	(181	)
Accrued expenses and other liabilities	896		914		(18		)
Other liabilities	1,147		1,102		45
Shareholders’ equity	11,357		11,288		69

Adoption of the new revenue accounting standard had no impact to net cash from or used in operating, investing, or financing activities in our consolidated statement of cash flows.

Financial Instruments

In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new standard, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. For investments in entities without a readily determinable fair value, the new standard provides for a measurement alternative that can be elected to account for the investments at cost, less impairment, and adjusted for changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The new standard also simplifies the impairment assessment of equity investments without readily determinable fair values. The new standard is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. We adopted the new standard during the first quarter of 2018, and elected to apply the measurement alternative for our investments without a readily determinable fair value. The adoption of this standard did not have a material impact on our consolidated financial statements.

Statement of Cash Flows-Restricted Cash

In November 2016, the FASB issued new guidance related to the classification of restricted cash in the statement of cash flows. The new standard requires that a statement of cash flows explain any change during the period in total cash, cash equivalents, and restricted cash. Therefore, restricted cash will be included with “Cash and cash equivalents” when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, and should be applied retrospectively.

We adopted the new standard during the first quarter of 2018 and applied the standard retrospectively for all periods presented. The application of this new standard did not have a material impact on our consolidated statements of cash flows for the years ended December 31, 2018 and 2017. For the year ended December 31, 2016, there is a significant impact to the consolidated statements of cash flows, as this period included, as an investing activity, the $3.6 billion movement in restricted cash resulting from the release of cash in escrow to complete the King Acquisition. Under this new standard, the restricted cash balance is included in the beginning and ending cash, cash equivalents, and restricted cash balances and, hence, is not included as an investing activity in the statement of cash flows. See a summary of impacts on our consolidated statement of cash flows for the year ended December 31, 2016 as follows (in millions):



	For the Year Ended December 31, 2016
	Under new standard after adoption			Under old standard before adoption			Increase (decrease) due to adoption of new standard
Acquisition of business, net of cash acquired	$	(4,586	)	$	(4,588	)	$	2
Release of cash in escrow	—			3,561			(3,561		)
Other investing activities	(7		)	(14		)	7
Net cash used in investing activities	(4,729		)	(1,177		)	(3,552		)

Net increase (decrease) in cash and cash equivalents and restricted cash	(2,130		)	1,422			(3,552		)
Cash and cash equivalents and restricted cash at beginning of period	5,392			1,823			3,569
Cash and cash equivalents and restricted cash at end of period	3,262			3,245			17

Derivatives and Hedging

In August 2017, the FASB issued new guidance related to the accounting for derivatives and hedging. The new guidance expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of a hedge’s effectiveness. The new standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We adopted the standard during the first quarter of 2018. The adoption of the standard did not have a material impact to our consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

Leases

In February 2016, the FASB issued new guidance related to the accounting for leases. The new standard will replace 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 asset for its leases. Classification will be based on criteria that are largely similar to those applied in current lease accounting. The lease liability will be equal to the present value of lease payments. The asset will be based on the lease liability, subject to adjustment for initial direct costs, lease incentives received, and any prepaid lease payments. Operating leases will result in a straight-line expense pattern, while finance leases will result in a front-loaded expense pattern. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Adoption guidance provides for an optional adoption method that allows companies to use the effective date of the new lease standard as the initial date of application on transition, and therefore does not require prior periods to be restated.

This standard is effective for us beginning with the first quarter of 2019, and we will report our adoption in our Form 10-Q for the first quarter of 2019. Upon adoption, we will elect to apply the available transition practical expedients, including the optional adoption method discussed above. We estimate the impact of adoption to result in the establishment of lease liabilities of approximately $275 million to $325 million, with a similar corresponding impact to total assets. Additionally, we expect that the new disclosure requirements will require us to design and implement additional internal controls over financial reporting, and we are in process of adjusting our processes and internal controls in preparation for adopting the new standard.

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, an 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 are evaluating the impact, if any, of adopting this new accounting guidance on our consolidated financial statements.

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 is 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.

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2018

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

The following table summarizes the components of our cash and cash equivalents (amounts in millions):



	At December 31,
	2018		2017
Cash	$	268	$	269
Foreign government treasury bills	32		39
Money market funds	3,925		4,405
Cash and cash equivalents	$	4,225	$	4,713

Inventories, Net

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories, Net

Inventories, net, consist of the following (amounts in millions):



	At December 31,
	2018		2017
Finished goods	$	40	$	45
Purchased parts and components	3		1
Inventories, net	$	43	$	46

At December 31, 2018 and 2017, inventory reserves were $22 million and $36 million, respectively.

Software Development and Intellectual Property Licenses

12 Months Ended

Dec. 31, 2018

Software Development Costs 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 December 31,
	2018		2017
Internally-developed software costs	$	291	$	270
Payments made to third-party software developers	38		183
Total software development costs	$	329	$	453

As of December 31, 2018 and December 31, 2017, 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 Years Ended December 31,
	2018		2017		2016
Amortization of capitalized software development costs and intellectual property licenses	$	501	$	314	$	335

Write-offs and impairments of capitalized software development costs and intellectual property licenses were not material for the years ended December 31, 2018, 2017, and 2016.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net was comprised of the following (amounts in millions):



	At December 31,
	2018			2017
Land	$	1		$	1
Buildings	4			4
Leasehold improvements	248			224
Computer equipment	700			658
Office furniture and other equipment	99			92
Total cost of property and equipment	1,052			979
Less accumulated depreciation	(770		)	(685		)
Property and equipment, net	$	282		$	294

Depreciation expense for the years ended December 31, 2018, 2017, and 2016 was $138 million, $130 million, and $121 million, respectively.

Rental expense was $75 million, $71 million and $65 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Intangible Assets, Net

12 Months Ended

Dec. 31, 2018

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets, Net

Intangible assets, net consist of the following (amounts in millions):



	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



	At December 31, 2017
	Estimated useful lives	Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3 - 11 years	$	1,154	$	(869	)	$	285
Developed software	2 - 5 years	601		(301		)	300
Customer base	2 years	617		(573		)	44
Trade names	7 - 10 years	54		(16		)	38
Other	1 - 15 years	19		(13		)	6
Total definite-lived intangible assets		$	2,445	$	(1,772	)	$	673

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite						386
Acquired trade names	Indefinite						47
Total indefinite-lived intangible assets							$	433
Total intangible assets, net							$	1,106

Amortization expense of intangible assets was $371 million, $759 million, and $708 million for the years ended December 31, 2018, 2017, and 2016, respectively.

At December 31, 2018, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):



2019	$	204
2020	74
2021	12
2022	7
2023	2
Thereafter	3
Total	$	302

Goodwill

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill by operating segment are as follows (amounts in millions):



	Activision			Blizzard		King		Total
Balance at December 31, 2016	$	6,903		$	190	$	2,675	$	9,768
Other	(5		)	—		—		(5		)
Balance at December 31, 2017	$	6,898		$	190	$	2,675	$	9,763
Other	(1		)	—		—		(1		)
Balance at December 31, 2018	$	6,897		$	190	$	2,675	$	9,762

At December 31, 2018, 2017, and 2016, there were no accumulated impairment losses.

Other Assets and Liabilities	12 Months Ended
Other Assets and Liabilities	Dec. 31, 2018
Other Assets and Liabilities
Other Assets and Liabilities	Other Assets and Liabilities Included in “Accrued expenses and other liabilities” in our consolidated balance sheets are accrued payroll-related costs of $402 million and $441 million at December 31, 2018 and 2017, respectively, and the current portion of income taxes payable of $203 million and $162 million at December 31, 2018 and 2017, respectively. Included in “Other liabilities” in our consolidated balance sheets are the non-current portion of income taxes payable of $272 million and $473 million at December 31, 2018 and 2017, respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

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 December 31, 2018 Using
	As of December 31, 2018			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	$	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



				Fair Value Measurements at December 31, 2017 Using
	As of December 31, 2017			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	$	4,405		$	4,405	$	—		$	—	Cash and cash equivalents
Foreign government treasury bills	39			39		—			—		Cash and cash equivalents
U.S. treasuries and government agency securities	55			55		—			—		Other current assets
Total recurring fair value measurements	$	4,499		$	4,499	$	—		$	—

Financial Liabilities:
Foreign currency forward contracts designated as hedges	$	(5	)	$	—	$	(5	)	$	—	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 December 31, 2018				As of December 31, 2017
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell Euro	$	723	$	12	$	521	$	(5	)

At December 31, 2018, our Cash Flow Hedges have remaining maturities of 12 months or less. Additionally, $11 million of net realized but unrecognized gains are recorded within “Accumulated other comprehensive income (loss)” at December 31, 2018, 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 Years Ended December 31,
	2018		2017			2016		Statement of Operations Classification
Cash Flow Hedges	$	7	$	(1	)	$	4	Net revenues

Foreign Currency Forward Contracts Not Designated as Hedges

The total gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions):



	As of December 31, 2018				As of December 31, 2017
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell GBP	$	55	$	1	$	—	$	—

During the years ended December 31, 2018, 2017, and 2016 pre-tax net gains 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.

For the years ended December 31, 2018, 2017, and 2016, there were no impairment charges related to assets that are measured on a non-recurring basis.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Deferred Revenues	12 Months Ended
Deferred Revenues	Dec. 31, 2018
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, 2018 and the ending balance as of December 31, 2018, were $1.8 billion and $1.6 billion, respectively, including our current and non-current balances. For the year ended December 31, 2018, 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 year ended December 31, 2018, $1.7 billion of revenues were recognized that were included in the deferred revenues balance at the beginning of the period. As of December 31, 2018, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $2.9 billion, which includes our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.8 billion in 2019, $0.4 billion in 2020, 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.

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

Credit Facilities

At December 31, 2017, we had outstanding term loans “A” of approximately $990 million (the “2017 TLA”) and $250 million available under a revolving credit facility pursuant to a credit agreement entered into on October 11, 2013 (as amended thereafter and from time to time, the “Credit Agreement”).

On August 24, 2018, using available cash on hand, we made a voluntary prepayment of $990 million to fully repay and extinguish the 2017 TLA. As a result, we wrote-off unamortized discount and financing costs of $7 million, which are included in “Loss on extinguishment of debt” in the consolidated statement of operations. On August 24, 2018, we also entered into the seventh amendment (the “Amendment”) to our Credit Agreement. The Amendment, among other things: (1) provided for a new revolving credit facility in an aggregate principal amount of $1.5 billion (the “New Revolver”), which replaced our prior revolving credit facility; (2) amended the Credit Agreement to remove mechanics related to the 2017 TLA, which, as noted above, was repaid in full prior to the effectiveness of the Amendment; and (3) eliminated or amended certain representations, warranties and covenants to reflect our current credit ratings.

The New Revolver is scheduled to mature on August 24, 2023. Borrowings under the New Revolver will bear interest, at the Company’s option, at either (1) a base rate equal to the highest of (i) the federal funds rate, plus 0.5%, (ii) the prime commercial lending rate of Bank of America, N.A. and (iii) the London Interbank Offered Rate (“LIBOR”) for an interest period of one month beginning on such day plus 1.00%, or (2) LIBOR, in each case, plus an applicable interest margin. LIBOR will be subject to a floor of 0% and base rate will be subject to an effective floor of 1.00%. The applicable interest margin for borrowings under the New Revolver will range from 0.875% to 1.375% for LIBOR borrowings and from 0% to 0.375% for base rate borrowings and will be determined by reference to a pricing grid based on the Company’s credit ratings. Up to $50 million of the New Revolver may be used for letters of credit. To date, we have not drawn on the New Revolver.

Under the Credit Agreement, we are subject to a financial covenant requiring the Company’s Consolidated Total Net

Debt Ratio (as defined in the Credit Agreement) not to exceed 3.75:1.00 (or, at the Company’s option and for a limited period of time upon the consummation of a Qualifying Acquisition (as defined in the Credit Agreement), 4.25:1.00). The Credit Agreement contains covenants customary for transactions of this type for issuers with similar credit ratings. These include those restricting liens, debt of non-guarantor subsidiaries and certain fundamental changes, in each case with exceptions, including exceptions for secured debt and debt of non-guarantor subsidiaries of the Company, in each case up to an amount not exceeding 7.5% of Total Assets (as defined in the Credit Agreement). We were in compliance with the terms of the Credit Agreement as of December 31, 2018.

Unsecured Senior Notes

At December 31, 2017, we had the following unsecured senior notes outstanding:


•	$750 million of 6.125% unsecured senior notes due September 2023 that we issued on September 19, 2013 (the “2023 Notes”), in a private offering made in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”);


•	$650 million of 2.3% unsecured senior notes due September 2021 (the “2021 Notes”) and $850 million of 3.4% unsecured senior notes due September 2026 (the “2026 Notes”) that we issued on September 19, 2016, in a private offering made in accordance with Rule 144A and Regulation S under the Securities Act, and subsequently exchanged for publicly registered notes in June 2017; and

•

$400 million of 2.6% unsecured senior notes due June 2022 (the “2022 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 2023 Notes, the 2026 Notes, and the 2027 Notes, the “Notes”), that we issued on May 26, 2017, in a public underwritten offering.

On July 17, 2018, we issued an irrevocable notice of redemption to the holders of all of our outstanding 2023 Notes. Accordingly, on August 16, 2018, using available cash on hand, we redeemed the 2023 Notes in full at a redemption price equal to (1) 100% of the principal amount of the 2023 Notes plus (2) a “make-whole” premium calculated as set forth in the indenture governing the 2023 Notes and (3) accrued and unpaid interest to the redemption date. The redemption of the 2023 Notes resulted in a “Loss on extinguishment of debt” recorded in the consolidated statement of operations of $33 million, comprised of premium payments of $25 million and a write-off of unamortized discount and deferred financing costs of $8 million. All other Notes referred to above remained outstanding as of December 31, 2018.

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 New 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. The Notes contain customary covenants that place restrictions in certain circumstances on, among other things, the incurrence of secured debt, entry into sale or leaseback transactions, and certain merger or consolidation transactions. We were in compliance with the terms of the Notes as of December 31, 2018.

Interest is payable semi-annually in arrears on March 15 and September 15 of each year for the 2021 Notes, the 2023 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 consolidated balance sheets. As of December 31, 2018 and December 31, 2017, we had accrued interest payable of $15 million and $28 million, respectively, related to the Notes.

We may redeem some or all of the 2021 Notes, the 2022 Notes, the 2026 Notes, the 2027 Notes, and the 2047 Notes prior to August 15, 2021, May 15, 2022, June 15, 2026, March 15, 2027, and December 15, 2046, respectively, and in each case at a price equal to 100% of the aggregate principal amount thereof plus a “make-whole” premium and accrued and unpaid interest. Any redemption of all or a portion of the applicable class of note after the applicable date would be at 100% of aggregate principal amount plus accrued and unpaid interest.

Upon the occurrence of certain change of control events, we will be required to offer to repurchase the Notes at a purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest. These repurchase requirements are considered clearly and closely related to the Notes and are not accounted for separately upon issuance.

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 consolidated statement of operations.

For the years ended December 31, 2018, 2017, and 2016: interest expense was $134 million, $150 million, and $197 million, respectively; amortization of the debt discount and deferred financing costs was $6 million, $12 million, and $20 million, respectively.

A summary of our outstanding debt is as follows (amounts in millions):



	At December 31, 2018
	Gross Carrying Amount		Unamortized Discount and Deferred Financing Costs			Net Carrying Amount
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



	At December 31, 2017
	Gross Carrying Amount		Unamortized Discount and Deferred Financing Costs			Net Carrying Amount
2017 TLA	$	990	$	(8	)	$	982
2021 Notes	650		(4		)	646
2022 Notes	400		(4		)	396
2023 Notes	750		(9		)	741
2026 Notes	850		(9		)	841
2027 Notes	400		(6		)	394
2047 Notes	400		(10		)	390
Total long-term debt	$	4,440	$	(50	)	$	4,390

As of December 31, 2018, the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years are as follows (amounts in millions):



For the years ending December 31,
2019	$	—
2020	—
2021	650
2022	400
2023	—
Thereafter	1,650
Total	$	2,700

On February 1, 2018, our Board of Directors authorized repayment of up to $1.8 billion of the company’s outstanding debt during 2018. As of December 31, 2018, we had utilized this entire authorization to repay our 2017 TLA and redeem our 2023 Notes, as described above.

Using Level 2 inputs (i.e., observable market prices in less-than-active markets) 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.

Using Level 2 inputs at December 31, 2017, with the exception of the 2023 Notes and the 2047 Notes, the carrying values of our debt instruments approximated their fair values. At December 31, 2017, based on Level 2 inputs, the fair values of the 2023 Notes and the 2047 Notes were $795 million and $421 million, respectively.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) were as follows (amounts in millions):



	For the Year Ended December 31, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			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	(9		)	10			45			46
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(5		)	(7		)	(12		)
Balance at December 31, 2018	$	(629	)	$	5		$	23		$	(601	)



	For the Year Ended December 31, 2017
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			Total
Balance at December 31, 2016	$	(659	)	$	1		$	29		$	(629	)
Other comprehensive income (loss) before reclassifications	20			(1		)	(45		)	(26		)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	16			—			1			17
Balance at December 31, 2017	$	(623	)	$	—		$	(15	)	$	(638	)

Income taxes were not previously provided for foreign currency translation items, as these were considered indefinite investments in non-U.S. subsidiaries. Due to the U.S. Tax Reform Act enacted on December 22, 2017, we re-evaluated our indefinite reinvestment assertions and no longer consider these items to be indefinite investments. The corresponding tax impact for this change in assertion was not material.

Operating Segments and Geographic Regions

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Operating Segments and Geographic Regions

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 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 the reportable segment net revenues and segment operating income are presented below (amounts in millions):



	Year Ended December 31, 2018
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,458	$	2,238	$	2,086	$	6,782
Intersegment net revenues (1)	—		53		—		53
Segment net revenues	$	2,458	$	2,291	$	2,086	$	6,835

Segment operating income	$	1,011	$	685	$	750	$	2,446

	Year Ended December 31, 2017
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,628	$	2,120	$	1,998	$	6,746
Intersegment net revenues (1)	—		19		—		19
Segment net revenues	$	2,628	$	2,139	$	1,998	$	6,765

Segment operating income	$	1,005	$	712	$	700	$	2,417

	Year Ended December 31, 2016
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,220	$	2,439	$	1,586	$	6,245
Intersegment net revenues (1)	—		—		—		—
Segment net revenues	$	2,220	$	2,439	$	1,586	$	6,245

Segment operating income	$	788	$	995	$	537	$	2,320


(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):



	Years Ended December 31,
	2018			2017			2016
Reconciliation to consolidated net revenues:
Segment net revenues	$	6,835		$	6,765		$	6,245
Revenues from other segments (1)	480			410			354
Net effect from recognition (deferral) of deferred net revenues	238			(139		)	9
Elimination of intersegment revenues (2)	(53		)	(19		)	—
Consolidated net revenues	$	7,500		$	7,017		$	6,608

Reconciliation to consolidated income before income tax expense:
Segment operating income	$	2,446		$	2,417		$	2,320
Operating income (loss) from other segments (1)	31			(19		)	14
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	100			(71		)	(10		)
Share-based compensation expense	(209		)	(178		)	(159		)
Amortization of intangible assets	(370		)	(757		)	(706		)
Fees and other expenses related to the acquisition of King (3)	—			(15		)	(47		)
Restructuring costs (4)	(10		)	(15		)	—
Other non-cash charges (5)	—			(14		)	—
Discrete tax-related items (6)	—			(39		)	—
Consolidated operating income	1,988			1,309			1,412
Interest and other expense (income), net	71			146			214
Loss on extinguishment of debt	40			12			92
Consolidated income before income tax expense	$	1,877		$	1,151		$	1,106


(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)	Intersegment revenues reflect licensing and service fees charged between segments.


(3)	Reflects fees and other expenses, such as legal, banking, and professional services fees, related to the acquisition of King and associated integration activities, including related debt financings.


(4)	Reflects restructuring charges, primarily severance costs.


(5)	Reflects a non-cash accounting charge to reclassify certain cumulative translation gains (losses) into earnings due to the substantial liquidation of certain of our foreign entities.


(6)	Reflects the impact of other unusual or unique tax-related items and activities.

Due to requirements from our adoption of the new revenue accounting standard as discussed in Note 2, net revenues by distribution channel for the year ended December 31, 2018, include a reconciliation to our segment revenues as disclosed for each of our reportable segments above. Net revenues by distribution channel were as follows (amounts in millions):



	Year Ended December 31, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,740		$	2,009		$	2,090		$	—	$	(53	)	$	5,786
Retail channels	998			109			—			—		—			1,107
Other (2)	—			148			—			459		—			607
Total consolidated net revenues	$	2,738		$	2,266		$	2,090		$	459	$	(53	)	$	7,500

Change in deferred revenues:
Digital online channels (1)	$	(96	)	$	32		$	(4	)	$	—	$	—		$	(68	)
Retail channels	(184		)	(7		)	—			—		—			(191		)
Other (2)	—			—			—			21		—			21
Total change in deferred revenues	$	(280	)	$	25		$	(4	)	$	21	$	—		$	(238	)

Segment net revenues:
Digital online channels (1)	$	1,644		$	2,041		$	2,086		$	—	$	(53	)	$	5,718
Retail channels	814			102			—			—		—			916
Other (2)	—			148			—			480		—			628
Total segment net revenues	$	2,458		$	2,291		$	2,086		$	480	$	(53	)	$	7,262

Net revenues by distribution channel for the years ended December 31, 2017 and December 31, 2016, were as follows (amounts in millions):



	Years Ended December 31,
	2017		2016
Net revenues by distribution channel:
Digital online channels (1)	$	5,479	$	4,865
Retail channels	1,033		1,386
Other (2)	505		357
Total consolidated net revenues	$	7,017	$	6,608


(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 year ended December 31, 2018, were as follows (amounts in millions):



	Year Ended December 31, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	1,622		$	1,004		$	1,269		$	13	$	(28	)	$	3,880
EMEA (1)	897			692			599			446		(16		)	2,618
Asia Pacific	219			570			222			—		(9		)	1,002
Total consolidated net revenues	$	2,738		$	2,266		$	2,090		$	459	$	(53	)	$	7,500

Change in deferred revenues:
Americas	$	(163	)	$	15		$	(3	)	$	—	$	—		$	(151	)
EMEA (1)	(127		)	16			(1		)	21		—			(91		)
Asia Pacific	10			(6		)	—			—		—			4
Total change in deferred revenues	$	(280	)	$	25		$	(4	)	$	21	$	—		$	(238	)

Segment net revenues:
Americas	$	1,459		$	1,019		$	1,266		$	13	$	(28	)	$	3,729
EMEA (1)	770			708			598			467		(16		)	2,527
Asia Pacific	229			564			222			—		(9		)	1,006
Total segment net revenues	$	2,458		$	2,291		$	2,086		$	480	$	(53	)	$	7,262

Net revenues by geographic region for the years ended December 31, 2017 and December 31, 2016, were as follows (amounts in millions):



	Years Ended December 31,
	2017		2016
Net revenues by geographic region:
Americas	$	3,607	$	3,423
EMEA (1)	2,464		2,221
Asia Pacific	946		964
Total consolidated net revenues	$	7,017	$	6,608


(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%, 45%, and 45% of consolidated net revenues for the years ended December 31, 2018, 2017, and 2016, respectively. The Company’s net revenues in the United Kingdom (“U.K.”) were 12%, 12%, and 11% of consolidated net revenues for the years ended December 31, 2018, 2017, and 2016, respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for the years ended December 31, 2018, 2017, or 2016.

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the year ended December 31, 2018, were as follows (amounts in millions):



	Year Ended December 31, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	2,351		$	187		$	—		$	—	$	—		$	2,538
PC	368			1,711			154			—		(53		)	2,180
Mobile and ancillary (1)	19			220			1,936			—		—			2,175
Other (2)	—			148			—			459		—			607
Total consolidated net revenues	$	2,738		$	2,266		$	2,090		$	459	$	(53	)	$	7,500

Change in deferred revenues:
Console	$	(257	)	$	(8	)	$	—		$	—	$	—		$	(265	)
PC	(23		)	33			(1		)	—		—			9
Mobile and ancillary (1)	—			—			(3		)	—		—			(3		)
Other (2)	—			—			—			21		—			21
Total change in deferred revenues	$	(280	)	$	25		$	(4	)	$	21	$	—		$	(238	)

Segment net revenues:
Console	$	2,094		$	179		$	—		$	—	$	—		$	2,273
PC	345			1,744			153			—		(53		)	2,189
Mobile and ancillary (1)	19			220			1,933			—		—			2,172
Other (2)	—			148			—			480		—			628
Total segment net revenues	$	2,458		$	2,291		$	2,086		$	480	$	(53	)	$	7,262

Net revenues by platform for the years ended December 31, 2017 and December 31, 2016, were as follows (amounts in millions):



	Years Ended December 31,
	2017		2016
Net revenues by platform:
Console	$	2,389	$	2,453
PC	2,042		2,124
Mobile and ancillary (1)	2,081		1,674
Other (2)	505		357
Total consolidated net revenues	$	7,017	$	6,608


(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 toys and accessories from our Skylanders^® franchise and other 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 December 31,
	2018		2017		2016
Long-lived assets* by geographic region:
Americas	$	203	$	197	$	154
EMEA	62		75		87
Asia Pacific	17		22		17
Total long-lived assets by geographic region	$	282	$	294	$	258


*	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.

For information regarding significant customers, see “Concentration of Credit Risk” in Note 2.

Share-Based Compensation

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Payments

Activision Blizzard Equity Incentive Plans

On June 5, 2014, the Activision Blizzard, Inc. 2014 Incentive Plan (the “2014 Plan”) became effective. Under the 2014 Plan, the Compensation Committee of our Board of Directors is authorized to provide share-based compensation in the form of stock options, share appreciation rights, restricted stock, restricted stock units, performance shares, and other performance- or value-based awards structured by the Compensation Committee within parameters set forth in the 2014 Plan. As of the effective date of the 2014 Plan, we had ceased making awards under our prior equity incentive plans (collectively, the “Prior Plans”), although such plans remain in effect to the extent that they continue to govern outstanding awards.

While the Compensation Committee has broad discretion to create equity incentives, our current share-based compensation program generally utilizes a combination of options and restricted stock units. The majority of our options have time-based vesting schedules, generally vesting annually over a period of three to five years, and generally expire 10 years from the grant date. In addition, under the terms of the 2014 Plan, the exercise price for the options must be equal to or greater than the closing price per share of our common stock on the date the award is granted, as reported on Nasdaq. Restricted stock units have time-based vesting schedules, generally vesting in their entirety on an anniversary of the date of grant, or vest annually over a period of three to five years, and may also be contingent on the achievement of specified performance measures.

As of the date it was approved by our shareholders, there were 46 million shares available for issuance under the 2014 Plan. The number of shares of our common stock reserved for issuance under the 2014 Plan has been, and may be further, increased from time to time by: (1) the number of shares relating to awards outstanding under any Prior Plan that: (i) expire, or are forfeited, terminated or canceled, without the issuance of shares; (ii) are settled in cash in lieu of shares; or (iii) are exchanged, prior to the issuance of shares of our common stock, for awards not involving our common stock; (2) if the exercise price of any option outstanding under any Prior Plans is, or the tax withholding requirements with respect to any award outstanding under any Prior Plans are, satisfied by withholding shares otherwise then deliverable in respect of the award or the actual or constructive transfer to the Company of shares already owned, the number of shares equal to the withheld or transferred shares; and (3) if a share appreciation right is exercised and settled in shares, a number of shares equal to the difference between the total number of shares with respect to which the award is exercised and the number of shares actually issued or transferred. As of December 31, 2018, we had approximately 27 million shares of our common stock reserved for future issuance under the 2014 Plan. Shares issued in connection with awards made under the 2014 Plan are generally issued as new stock issuances.

Additionally, in connection with the King Acquisition, a majority of the outstanding options and awards with respect to King shares that were unvested as of the King Closing Date were converted into equivalent options and awards with respect to shares of the Company’s common stock. As part of the conversion, we assumed King’s equity incentive plan (the “King Plan”) and amended the King Plan to convert it to a plan with respect to shares of the Company’s common stock for the King shares assumed. No future shares can be granted from the King Plan, but it continues to govern outstanding awards.

Fair Value Valuation Assumptions

Valuation of Stock Options

The fair value of stock options granted are principally estimated using a binomial-lattice model. The inputs in our binomial-lattice model include expected stock price volatility, risk-free interest rate, dividend yield, contractual term, and vesting schedule, as well as measures of employees’ cancellations, exercise, and post-vesting termination behavior. Statistical methods are used to estimate employee rank-specific termination rates.

The following table presents the weighted-average assumptions, weighted average grant date fair value, and the range of expected stock price volatilities:



	Employee and Director Options
	For the Years Ended December 31,
	2018			2017			2016
Expected life (in years)	7.64			7.01			6.86
Volatility	32.37		%	35.00		%	35.31		%
Risk free interest rate	3.10		%	2.14		%	1.56		%
Dividend yield	0.61		%	0.50		%	0.67		%
Weighted-average grant date fair value	$	21.03		$	21.11		$	12.83
Stock price volatility range:
Low	31.72		%	28.19		%	29.20		%
High	36.73		%	35.00		%	36.00		%

Expected life

The expected life of employee stock options is a derived output of the binomial-lattice model and represents the weighted-average period the stock options are expected to remain outstanding. A binomial-lattice model assumes that employees will exercise their options when the stock price equals or exceeds an exercise multiple. The exercise multiple is based on historical employee exercise behaviors.

Volatility

To estimate volatility for the binomial-lattice model, we consider the implied volatility of exchange-traded options on our stock to estimate short-term volatility, the historical volatility of our common shares during the option’s contractual term to estimate long-term volatility, and a statistical model to estimate the transition from short-term volatility to long-term volatility.

Risk-free interest rate

As is the case for volatility, the risk-free interest rate is assumed to change during the option’s contractual term. The risk-free interest rate, which is based on U.S. Treasury yield curves, reflects the expected movement in the interest rate from one time period to the next (“forward rate”).

Dividend yield

The expected dividend yield assumption is based on our historical and expected future amount of dividend payouts.

Share-based compensation expense recognized is based on awards ultimately expected to vest and therefore has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant based on historical experience and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Valuation of Restricted Stock Units (“RSUs”)

The fair value of the Company’s RSU awards granted is principally based upon the closing price of the Company’s stock price on the date of grant reduced by the present value of dividends expected to be paid on our common stock prior to vesting.

Accuracy of Fair Value Estimates

We developed the assumptions used in the models above, including measures of employees’ exercise and post-vesting termination behavior. Our ability to accurately estimate the fair value of share-based payment awards at the grant date depends upon the accuracy of the model and our ability to accurately forecast model inputs for as long as 10 years into the future. These inputs include, but are not limited to, expected stock price volatility, risk-free rate, dividend yield, and employee termination rates. Although the fair value of employee stock options is determined using an option-pricing model, the estimates that are produced by this model may not be indicative of the fair value observed between a willing buyer and a willing seller. Unfortunately, it is difficult to determine if this is the case, as markets do not currently exist that permit the active trading of employee stock option and other share-based instruments.

Stock Option Activity

Stock option activity is as follows:



	Number of Shares (in thousands)		Weighted-average exercise price		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2017	20,544		$	34.54
Granted	3,364		55.69
Exercised	(4,161	)	23.67
Forfeited	(2,543	)	45.07
Expired	(67	)	43.50
Outstanding stock options at December 31, 2018	17,137		$	39.73	6.81	$	185
Vested and expected to vest at December 31, 2018	14,589		$	38.50	6.98	$	172
Exercisable at December 31, 2018	6,120		$	28.73	5.60	$	116

The aggregate intrinsic values in the table above represents the total pretax intrinsic value (i.e. the difference between our closing stock price on the last trading day of the period and the exercise price, times the number of shares for options where the closing stock price is greater than the exercise price) that would have been received by the option holders had all option holders exercised their options on that date. This amount changes based on the market value of our stock. The total intrinsic value of options actually exercised was $196 million, $372 million, and $161 million for the years ended December 31, 2018, 2017, and 2016, respectively. The total grant date fair value of options vested was $45 million, $47 million, and $40 million for the years ended December 31, 2018, 2017, and 2016, respectively.

At December 31, 2018, $84 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 1.20 years.

RSU Activity

We grant RSUs, which represent the right to receive shares of our common stock. Vesting for RSUs is contingent upon the holders’ continued employment with us and may be subject to other conditions (which may include the satisfaction of a performance measure). Also, certain of our performance-based RSUs include a range of shares that may be released at vesting which are above or below the targeted number of RSUs based on actual performance relative to the grant date performance measure. If the vesting conditions are not met, unvested RSUs will be forfeited. Upon vesting of the RSUs, we may withhold shares otherwise deliverable to satisfy tax withholding requirements.

The following table summarizes our RSU activity with performance-based RSUs presented at the maximum potential shares that could be earned and issued at vesting (amounts in thousands except per share amounts):



	Number of shares		Weighted- Average Grant Date Fair Value
Unvested RSUs at December 31, 2017	11,821		$	27.20
Granted	3,184		64.61
Vested	(3,078	)	38.87
Forfeited	(1,304	)	37.60
Unvested RSUs at December 31, 2018	10,623		$	40.39

Certain of our performance-based RSUs did not have an accounting grant date as of December 31, 2018, as there is not a mutual understanding between the Company and the employee of the performance terms. Generally, these performance terms relate to operating income performance for future years where the performance goals have not yet been set. As of December 31, 2018, there were 3.2 million performance-based RSUs outstanding for which the accounting grant date has not been set, of which 1.6 million were 2018 grants. Accordingly, no grant date fair value was established and the weighted average grant date fair value calculated above for 2018 grants excludes these RSUs.

At December 31, 2018, approximately $98 million of total unrecognized compensation cost was related to RSUs and is expected to be recognized over a weighted-average period of 1.51 years. Of the total unrecognized compensation cost, $67 million was related to performance-based RSUs, which is expected to be recognized over a weighted-average period of 1.49 years. The total grant date fair value of vested RSUs was $120 million, $64 million and $123 million for the years ended December 31, 2018, 2017, and 2016, respectively.

The income tax benefit from stock option exercises and RSU vestings was $94 million, $160 million, and $134 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Share-Based Compensation Expense

The following table sets forth the total share-based compensation expense included in our consolidated statements of operations (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses	$	13		$	10		$	20
Cost of revenues—subscription, licensing, and other revenues: Game Operations and Distribution Costs	2			1			2
Cost of revenues—subscription, licensing, and other revenues: Software royalties, amortization, and intellectual property licenses	3			3			2
Product development	61			57			47
Sales and marketing	15			15			15
General and administrative	115			92			73
Share-based compensation expense before income taxes	209			178			159
Income tax benefit	(46		)	(34		)	(42		)
Total share-based compensation expense, net of income tax benefit	$	163		$	144		$	117

Interest and Other Expense (Income), Net

12 Months Ended

Dec. 31, 2018

Other Income and Expenses [Abstract]

Other Income and Other Expense Disclosure [Text Block]

Interest and Other Expense (Income), Net

Interest and other expense (income), net is comprised of the following (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Interest income	$	(65	)	$	(24	)	$	(10	)
Interest expense from debt and amortization of debt discount and deferred financing costs	140			162			217
Other expense (income), net	(4		)	8			7
Interest and other expense (income), net	$	71		$	146		$	214

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Domestic and foreign income (loss) before income taxes and details of the income tax expense (benefit) are as follows (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Income before income tax expense:
Domestic	$	432		$	185		$	228
Foreign	1,445			966			878
	$	1,877		$	1,151		$	1,106
Income tax expense (benefit):
Current:
Federal	$	(228	)	$	696		$	(15	)
State	(15		)	26			16
Foreign	280			335			150
Total current	37			1,057			151
Deferred:
Federal	(98		)	(111		)	40
State	106			(32		)	(13		)
Foreign	19			(36		)	(38		)
Total deferred	27			(179		)	(11		)

Income tax expense	$	64		$	878		$	140

The items accounting for the difference between income taxes computed at the U.S. federal statutory income tax rate and the income tax expense (benefit) at the effective tax rate for each of the years are as follows (amounts in millions):



	For the Years Ended December 31,
	2018					2017					2016
Federal income tax provision at statutory rate	$	394		21	%	$	403		35	%	$	387		35	%
State taxes, net of federal benefit	36			2		4			—		9			1
Research and development credits	(46		)	(2	)	(26		)	(2	)	(36		)	(3	)
Foreign rate differential	(198		)	(11	)	(271		)	(24	)	(239		)	(22	)
Change in tax reserves	265			14		291			25		210			19
Audit settlements	(115		)	(6	)	—			—		—			—
Net operating loss tax attribute assumed from the Purchase Transaction	—			—		(36		)	(3	)	(114		)	(10	)
Excess tax benefits related to share-based payments	(58		)	(3	)	(113		)	(10	)	(81		)	(7	)
U.S. Tax Reform Act	(285		)	(15	)	636			55		—			—
Change in valuation allowance	61			3		—			—		—			—
Other	10			—		(10		)	—		4			—
Income tax expense	$	64		3	%	$	878		76	%	$	140		13	%

The Company’s tax rate is affected by the tax rates in the jurisdictions in which the Company operates, some of which have a statutory tax rate less than the U.S. rate of 21% , and the relative amount of income earned in each jurisdiction.

On June 27, 2018, we entered into a closing agreement with the Internal Revenue Service (“IRS”) to resolve certain intercompany transfer pricing arrangements for tax periods starting in 2009 (the “Closing Agreement”). The primary adjustments related to the Closing Agreement were recognized in the second quarter of 2018 and consisted of a tax expense of $70 million and a reduction in unrecognized tax benefits of $437 million. In addition, we recognized $185 million of tax benefits related to other tax adjustments resulting from the changes in U.S. tax attributes and taxable income caused by the primary adjustments. The Closing Agreement resulted in federal and state cash tax payments totaling approximately $345 million, of which federal tax payments of $334 million were made in October 2018.

On December 22, 2017, the U.S. Tax Reform Act was enacted. The U.S. Tax Reform Act, among other things, reduced the U.S. corporate income tax rate from 35% to 21%, beginning in 2018, and implemented the Transition Tax.

On December 22, 2017, the Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on how to account for the effects of the U.S. Tax Reform Act under ASC 740. SAB 118 enabled companies to record a provisional amount for the effects of the U.S. Tax Reform Act based on a reasonable estimate, subject to adjustment during a measurement period of up to one year, until accounting is complete. During the fourth quarter of 2017, we recorded provisional amounts of $636 million for the effects of the U.S. Tax Reform Act in accordance with SAB 118. In addition, as of December 31, 2017, we no longer considered the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested.

In the fourth quarter of 2018, we completed our analysis of the effect of the U.S. Tax Reform Act. For the year ended December 31, 2018, we recorded an additional tax benefit of $285 million for the effects of the U.S. Tax Reform Act. This is primarily related to the election to record deferred U.S. taxes with respect to earnings of our foreign subsidiaries subject to global intangible low-taxed income (“GILTI”) and the adjustment for the remeasurement of certain deferred tax assets and liabilities as a result of the U.S. corporate income tax rate reduction. The aggregate U.S. Tax Reform Act impact for 2017 and 2018 is a net tax expense of $351 million, which consists of a $570 million tax expense related to the Transition Tax partially offset by a net benefit of $219 million, mainly related to the adoption of GILTI deferred tax accounting and remeasurement of deferred tax assets and liabilities.

In 2013, in connection with the October 11, 2013 repurchase of approximately 429 million shares of our common stock from Vivendi (“Purchase Transaction”), we assumed certain tax attributes, generally consisting of net operating loss (“NOL”) carryforwards of approximately $760 million, which represent a potential tax benefit of approximately $266 million. The Company also obtained indemnification from Vivendi against losses attributable to the disallowance of claimed utilization of such NOL carryforwards of up to $200 million in unrealized tax benefits in the aggregate, limited to taxable years ending on or prior to December 31, 2016. No benefit for these tax attributes or indemnification was recorded upon the close of the Purchase Transaction. As of December 31, 2017, we had utilized approximately $760 million of the original NOL and had recorded an indemnification asset of $200 million in “Other assets.” Correspondingly, the same amount was recorded as a reduction to the consideration paid for the shares repurchased in “Treasury stock.”

Deferred income taxes reflect the net tax effects of temporary differences between the amounts of assets and liabilities for accounting purposes and the amounts used for income tax purposes. The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):



	As of December 31,
	2018			2017
Deferred tax assets:
Allowance for sales returns and price protection	$	25		$	47
Accrued expenses	26			31
Deferred revenue	136			245
Tax attributes carryforwards	81			71
Share-based compensation	69			59
Acquired intangibles	43			149
U.S. deferred taxes on foreign earnings	263			—
Other	28			61
Deferred tax assets	671			663
Valuation allowance	(61		)	—
Deferred tax assets, net of valuation allowance	610			663
Deferred tax liabilities:
Acquired intangibles	(140		)	(146		)
Capitalized software development expenses	(57		)	(55		)
Other	(26		)	(24		)
Deferred tax liabilities	(223		)	(225		)
Net deferred tax assets	$	387		$	438

As of December 31, 2018, we had gross tax credit carryforwards of $172 million for state purposes. The tax credit carryforwards are presented in “Deferred tax assets” net of unrealized tax benefits that would apply upon the realization of uncertain tax positions. In addition, we had foreign NOL carryforwards of $22 million at December 31, 2018, attributed mainly to losses in France which can be carried forward indefinitely.

We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, we evaluate the likelihood of realization based on the weight of all positive and negative evidence available. As of December 31, 2017, we had a deferred tax asset for California research and development credit carryforwards (“CA R&D Credits”), which can be carried forward indefinitely. The Closing Agreement impacts historical and prospective filings in certain states, including California, and after considering the impact of the Closing Agreement on its prospective California taxable income, we determined that our remaining CA R&D Credits no longer met the threshold of more likely than not to be realized in the future. As such, for the year ended December 31, 2018, we recorded a full valuation allowance of $61 million. We will reassess this determination quarterly and record a tax benefit if and when future evidence allows for a partial or full release of this valuation allowance.

As of December 31, 2017, we no longer consider the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested. As of December 31, 2018, we recorded net deferred tax liability related to undistributed foreign earnings of $16 million. In addition, we have elected to record deferred U.S. taxes with respect to earnings of our foreign subsidiaries subject to GILTI and recorded a $263 million deferred tax asset.

Activision Blizzard’s 2009 through 2017 tax years remain open to examination by certain major taxing jurisdictions to which we are subject. During February 2018, we were notified by the IRS that our tax returns for our 2012 through 2016 tax years will be subject to examination. In September 2018, the IRS concluded its examination of our 2009 through 2011 tax years. We also have several state and non-U.S. audits pending, including the French and Swedish audits discussed below. In addition, as part of purchase price accounting for our 2016 acquisition of King, we assumed $74 million of uncertain tax positions primarily related to pre-acquisition transfer pricing matters. We are currently in negotiations with the tax authorities in the relevant jurisdictions, which include the UK and Sweden, with respect to King’s transfer pricing for both pre- and post-acquisition tax years. While the outcome of these negotiations 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 to a Swedish subsidiary of King for the 2016 tax year. The STA decision described the basis for issuing a transfer pricing assessment of approximately 3.5kr billion (approximately $400 million), primarily concerning an alleged intercompany asset transfer. We disagree with the STA’s decision and intend to vigorously contest it. We plan to pursue all remedies available to us to successfully resolve the matter, including administrative remedies with the STA, multilateral procedures with other relevant taxing jurisdictions, and, if necessary, judicial remedies. Further, we may be required to pay the full assessment to the STA in advance of the final resolution of the matter. While we believe our tax provisions at December 31, 2018, are appropriate, until such time as this matter is ultimately resolved we could be subject to significant additional tax liabilities.

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 $652 million). We disagree with the proposed assessment and intend to vigorously contest it. We plan to pursue all remedies available to us to successfully resolve this matter, including administrative remedies with the FTA and, if necessary, judicial remedies. While we believe our tax provisions at December 31, 2018, are 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 litigation regarding this matter were adversely determined and/or if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities.

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.

As of December 31, 2018, we had approximately $917 million of gross unrecognized tax benefits, $812 million of which would affect our effective tax rate, if recognized. A reconciliation of total gross unrecognized tax benefits is as follows (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Unrecognized tax benefits balance at January 1	$	1,138		$	846		$	552
Gross increase for tax positions taken during a prior year	94			66			89
Gross decrease for tax positions taken during a prior year	(123		)	—			(17		)
Gross increase for tax positions taken during the current year	132			229			240
Settlement with taxing authorities	(312		)	(1		)	(18		)
Lapse of statute of limitations	(12		)	(2		)	—
Unrecognized tax benefits balance at December 31	$	917		$	1,138		$	846

As of December 31, 2018, 2017, and 2016, we had approximately $87 million, $121 million, and $71 million, respectively, of accrued interest and penalties related to uncertain tax positions. For the years ended December 31, 2018, 2017, and 2016, we recorded $11 million, $28 million, and $17 million, respectively, of interest expense related to uncertain tax positions.

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 Earnings Per Common Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

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 Years Ended December 31,
	2018		2017		2016
Numerator:
Consolidated net income	$	1,813	$	273	$	966
Less: Distributed earnings to unvested share-based awards that participate in earnings	—		—		(2		)
Less: Undistributed earnings allocated to unvested share-based awards that participate in earnings	—		—		(2		)
Numerator for basic and diluted earnings per common share—income available to common shareholders	$	1,813	$	273	$	962

Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	762		754		740
Effect of dilutive stock options and awards under the treasury stock method	9		12		14
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method	771		766		754
Basic earnings per common share	$	2.38	$	0.36	$	1.30
Diluted earnings per common share	$	2.35	$	0.36	$	1.28

In 2016, certain of our unvested restricted stock units met the definition of participating securities, as they participated in earnings based on their rights to dividends or dividend equivalents. Therefore, we were required to use the two-class method in our computation of basic and diluted earnings per common share. For the year ended December 31, 2016, on a weighted-average basis, we had outstanding unvested restricted stock units of 3 million shares of common stock that participated in earnings.

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. Approximately 4 million, 7 million, and 8 million shares are not included in the computation of diluted earnings per common share for the years ended December 31, 2018, 2017, and 2016, respectively, as their underlying performance measures had not yet been met.

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. Therefore, 3 million, 1 million, and 5 million options to purchase shares of common stock were not included in the calculation of diluted earnings per common share for the years ended December 31, 2018, 2017, and 2016, respectively, as the effect of their inclusion would be anti-dilutive.

Capital Transactions	12 Months Ended
Capital Transactions	Dec. 31, 2018
Equity [Abstract]
Capital Transactions	Capital Transactions Repurchase Programs 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. On February 2, 2017, our Board of Directors authorized a stock repurchase program under which we were authorized to repurchase up to $1 billion of our common stock from February 13, 2017 through February 12, 2019. We did not repurchase any shares under this program. Dividends On February 12, 2019, our Board of Directors declared a cash dividend of $0.37 per common share. Such dividend is payable on May 9, 2019, 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. On February 9, 2017, our Board of Directors declared a cash dividend of $0.30 per common share. On May 10, 2017, we made an aggregate cash dividend payment of $226 million to shareholders of record at the close of business on March 30, 2017. On May 26, 2017, we made related dividend equivalent payments of less than $1 million to certain holders of restricted stock units. On February 11, 2016, our Board of Directors declared a cash dividend of $0.26 per common share. On May 11, 2016, we made an aggregate cash dividend payment of $192 million to shareholders of record at the close of business on March 30, 2016. On May 27, 2016, we made related dividend equivalent payments of $3 million to certain holders of restricted stock units.

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental cash flow information is as follows (amounts in millions):



	For the Years Ended December 31,
	2018		2017		2016
Supplemental cash flow information:
Cash paid for income taxes, net of refunds	$	560	$	176	$	121
Cash paid for interest	150		145		209

The beginning and ending cash and cash equivalents and restricted cash reported within our consolidated statement of cash flows included restricted cash amounts as follows (amounts in millions):



	At December 31,
	2018		2017		2016
Beginning restricted cash	$	7	$	17	$	3,569
Ending restricted cash	4		7		17

For the year ended December 31, 2016, we had non-cash purchase price consideration of $89 million related to vested and unvested stock options and awards that were assumed and replaced with Activision Blizzard equity or deferred cash awards in the King Acquisition. Refer to Note 23 for further discussion.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Obligations

In the normal course of business, we enter into contractual arrangements with third parties for non-cancelable operating lease agreements for our offices, for the development of products and for the rights to intellectual property. Under these agreements, we commit to provide specified payments to a lessor, developer or intellectual property holder, as the case may be, based upon contractual arrangements. The payments to third-party developers are generally conditioned upon the achievement by the developers of contractually specified development milestones. Further, these payments to third-party developers and intellectual property holders typically are deemed to be advances and, as such, are recoupable against future royalties earned by the developer or intellectual property holder based on sales of the related game. Additionally, in connection with certain intellectual property rights, acquisitions and development agreements, we commit to spend specified amounts for marketing support for the game(s) which is (are) to be developed or in which the intellectual property will be utilized. Assuming all contractual provisions are met, the total future minimum commitments for these and other contractual arrangements in place at December 31, 2018, are scheduled to be paid as follows (amounts in millions):



	Contractual Obligations (1)
	Facility and Equipment Leases		Developer and Intellectual Properties		Marketing		Long-Term Debt Obligations (2)		Total
For the years ending December 31,
2019	$	80	$	24	$	35	$	86	$	225
2020	70		3		21		86		180
2021	53		1		—		736		790
2022	45		—		—		466		511
2023	38		—		—		60		98
Thereafter	60		—		—		2,207		2,267
Total	$	346	$	28	$	56	$	3,641	$	4,071

(1)

We have omitted uncertain income tax liabilities from this table due to the inherent uncertainty regarding the timing of the potential issue resolution of the underlying matters. Specifically, either (a) the underlying positions have not been fully developed under audit to quantify at this time or, (b) the years relating to the matters for certain jurisdictions are not currently under audit. At December 31, 2018, we had $637 million of net unrecognized tax benefits included “Other liabilities,” in our consolidated balance sheet.

Additionally, as a result of the U.S. Tax Reform Act, we recorded a liability at December 31, 2017, of $467 million which reflected our estimated Transition Tax net payments. In the fourth quarter of 2018, we completed our analysis of the effects of the U.S. Tax Reform Act and adjusted the net Transition Tax liability with consideration of tax attributes utilization to be $198 million. The Transition Tax liability is payable over and up to an eight-year period and is not reflected in our Contractual Obligations table above.

(2)

Long-term debt obligations represent our obligations related to the contractual principal repayments and interest payments under the Notes, which are subject to fixed interest rates, as of December 31, 2018. There was no outstanding balance under our New Revolver as of December 31, 2018. We have calculated the expected interest obligation based on the outstanding principal balance and interest rate applicable at December 31, 2018. Refer to Note 13 for additional information on our debt obligations.

Legal Proceedings

In December 2018, we received a decision from the STA informing us of an audit assessment to a Swedish subsidiary of King for the 2016 tax year. The STA decision described the basis for issuing a transfer pricing assessment of approximately 3.5kr billion (approximately $400 million) primarily concerning an alleged intercompany asset transfer. We disagree with the STA’s decision and intend to vigorously contest it. We plan to pursue all remedies available to us to successfully resolve the matter, including administrative remedies with the STA, multilateral procedures with other relevant taxing jurisdictions, and, if necessary, judicial remedies. Further, we may be required to pay the full assessment to the STA in advance of the final resolution of the matter. While we believe our tax provisions at December 31, 2018, are appropriate, until such time as this matter is ultimately resolved we could be subject to significant additional tax liabilities.

In December 2017, we received a Notice of Reassessment from the 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 $652 million). We disagree with the proposed assessment and intend to vigorously contest it. We plan to pursue all remedies available to us to successfully resolve this matter, including administrative remedies with the FTA and, if necessary, judicial remedies. While we believe our tax provisions at December 31, 2018, are 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 litigation regarding this matter were adversely determined and/or if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities.

In addition, we are party to routine claims, suits, investigations, audits, and other proceedings arising in the ordinary course of business, including with respect to intellectual property, competition and antitrust matters, regulatory matters, tax matters, privacy matters, labor and employment matters, compliance matters, unclaimed property matters, liability and personal injury claims, product damage claims, collection matters, and/or commercial claims. 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.

Letters of Credit

As described in Note 13, a portion of our New Revolver can be used to issue letters of credit of up to $50 million, subject to the availability of the New Revolver. At December 31, 2018, we did not have any letters of credit issued or outstanding under the New Revolver.

Acquisitions

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisitions

King Digital Entertainment

On February 23, 2016, we completed the King Acquisition, purchasing all of King’s outstanding shares. As a result, King became a wholly-owned subsidiary of Activision Blizzard. King is a leading global developer and publisher of interactive entertainment content and services, primarily on mobile platforms, such as Android and iOS, and on online and social platforms, such as Facebook and the king.com websites. King’s results of operations since the King Closing Date are included in our consolidated financial statements.

We made this acquisition because we believed that the addition of King’s highly-complementary mobile business positioned the Company as a global leader in interactive entertainment across the console, PC, and mobile platforms, and aligned us for future growth.

The aggregate purchase price of the King Acquisition was approximately $5.8 billion, which was paid on the King Closing Date and funded primarily with $3.6 billion of existing cash and $2.2 billion of cash from new debt issued by the Company. We identified and recorded assets acquired and liabilities assumed at their estimated fair values at the King Closing Date, and allocated the remaining value of approximately $2.7 billion to goodwill.

The final purchase price allocation was as follows (in millions):



	February 23, 2016			Estimated useful lives
Tangible assets and liabilities assumed:
Cash and cash equivalents	$	1,151
Accounts receivable	162
Other current assets	72
Property and equipment	57			2 - 7 years
Deferred income tax assets, net	27
Other assets	47
Accounts payable	(9		)
Accrued expenses and other liabilities	(272		)
Other liabilities	(110		)
Deferred income tax liabilities, net	(52		)
Intangible assets
Internally-developed franchises	845			3 - 5 years
Customer base	609			2 years
Developed software	580			3 - 4 years
Trade name	46			7 years

Goodwill	2,675
Total purchase price	$	5,828

During the year ended December 31, 2016, the Company incurred $38 million of expenses related to the King Acquisition, which are included within “General and administrative” in the consolidated statements of operations.

Share-Based Compensation

In connection with the King Acquisition, a majority of the outstanding King options and other equity awards that were unvested as of the King Closing Date were converted into equivalent options and awards with respect to shares of the Company’s common stock, using an equity award exchange ratio calculated in accordance with the transaction agreement. As a result, replacement options and other equity awards of 10 million and 3 million, respectively, were issued. The portion of the fair value related to pre-combination services of $76 million was included in the purchase price.

The remaining portion of outstanding unvested awards that were assumed were replaced with deferred cash awards. The cash proceeds were placed in an escrow-like account with the cash releases to occur based on the awards’ original vesting schedule upon future service being rendered. The portion of the fair value related to pre-combination services of $22 million was included in the purchase price.

Identifiable Intangible Assets Acquired and Goodwill

The internally-developed franchises, customer base, developed software, and trade name intangible assets from the acquisition of King will be amortized to “Cost of revenues—subscription, licensing, and other revenues—Software royalties, amortization, and intellectual property licenses,” “Sales and marketing,” “Cost of revenues—subscription, licensing, and other revenues - Software royalties, amortization, and intellectual property licenses,” and “General and administrative,” respectively. The intangible assets will be amortized over their estimated useful lives in proportion to the economic benefits received.

The $2.7 billion of goodwill recognized is primarily attributable to the benefits the Company expects to derive from accelerated expansion as an interactive entertainment provider in the mobile sector, future franchises, and technology, as well as the management team’s proven ability to create future games and franchises. Approximately $464 million of the goodwill is expected to be deductible for tax purposes in the U.S.

King Net Revenue and Earnings

The amount of net revenue and earnings attributable to King in the Company’s consolidated statement of operations during the year ended December 31, 2016, the period of the King Acquisition, are included in the table below. The amounts presented represent the net revenues and earnings after adjustments for purchase price accounting, inclusive of amortization of intangible assets, share-based payments, and deferrals of revenues and related cost of revenues.



(in millions)	For the Year Ended December 31, 2016
Net revenues	$	1,523
Net loss	$	(230	)

Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations of the Company and King, on a pro forma basis, as though the acquisition had occurred on January 1, 2015. The 2016 pro forma financial information presented includes the effects of adjustments related to amortization charges from acquired intangible assets, employee compensation from replacement equity awards issued in the King Acquisition and the profit sharing bonus plan established as part of the King Acquisition, and interest expense from the new debt issued in connection with the King Acquisition, among other adjustments. We also adjusted for Activision Blizzard and King non-recurring acquisition-related costs of approximately $74 million incurred for the year ended December 31, 2016.

The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the King Acquisition, and any borrowings undertaken to finance the King Acquisition, had taken place at the beginning of 2015, nor does it intend to be a projection of future results.



	For the Year Ended December 31,
(in millions)	2016
Net revenues	$	6,888
Net income	$	1,005
Basic earnings per common share	$	1.35
Diluted earnings per common share	$	1.32

Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited)



	For the Quarters Ended
	December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
	(Amounts in millions, except per share data)
Net revenues	$	2,381	$	1,512	$	1,641	$	1,965
Cost of revenues	832		513		510		662
Operating income	694		265		434		595
Net income	650		260		402		500
Basic earnings per common share	0.85		0.34		0.53		0.66
Diluted earnings per common share	0.84		0.34		0.52		0.65



	For the Quarters Ended
	December 31, 2017			September 30, 2017		June 30, 2017		March 31, 2017
	(Amounts in millions, except per share data)
Net revenues	$	2,043		$	1,618	$	1,631	$	1,726
Cost of revenues	803			552		561		585
Operating income	221			257		339		493
Net income (loss)	(584		)	188		243		426
Basic earnings (loss) per common share	(0.77		)	0.25		0.32		0.57
Diluted earnings (loss) per common share	(0.77		)	0.25		0.32		0.56

Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Focusing Development Resources and Restructuring Plan: In order to better capitalize on long-term growth opportunities, on February 12, 2019, the Company committed to a Board-authorized restructuring plan under which the Company plans to refocus its resources on its largest opportunities and to remove unnecessary levels of complexity and duplication from certain parts of the business. More specifically, we intend to:


•	increase our investment in development for our largest, internally-owned franchises—across upfront releases, in-game content, mobile and geographic expansion;


•	reduce certain non-development and administrative-related costs across our business; and


•	integrate 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.

We expect to incur aggregate pre-tax restructuring charges of approximately $150 million in 2019, related to severance, including, in many cases, above legally required amounts (approximately 65% of the aggregate charge), facilities costs (approximately 20% of the aggregate charge), and asset write-downs and other costs (approximately 15% of the aggregate charge). We expect the majority of these charges to be incurred in the first quarter of 2019, with most of the balance expected to be incurred in the remainder of 2019. The total pre-tax charge associated with the restructuring will be paid almost entirely in cash and the outlays are expected to be incurred throughout 2019.

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2018

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

VALUATION AND QUALIFYING ACCOUNTS

(Amounts in millions)



Col. A Description	Col. B Balance at Beginning of Period		Col. C Additions(A)		Col. D Deductions(B)			Col. E Balance at End of Period
At December 31, 2018
Allowances for sales returns and price protection and other allowances	$	274	$	24	$	(112	)	$	186
Allowance for doubtful accounts	5		—		(1		)	4
At December 31, 2017
Allowances for sales returns and price protection and other allowances	$	257	$	83	$	(66	)	$	274
Allowance for doubtful accounts	4		1		—			5
At December 31, 2016
Allowances for sales returns and price protection and other allowances	$	339	$	119	$	(201	)	$	257
Allowance for doubtful accounts	4		2		(2		)	4


(A)	Includes increases and reversals of allowances for sales returns, price protection, and doubtful accounts due to normal reserving terms.


(B)	Includes actual write-offs and utilization of allowances for sales returns, price protection and uncollectible accounts receivable, net of recoveries, and foreign currency translation and other adjustments.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Consolidation and Presentation

Certain reclassifications have been made to prior-year amounts to conform to the current period presentation.

Cash and Cash Equivalents

We consider all money market funds and highly liquid investments with original maturities of three months or less at the time of purchase to be “Cash and cash equivalents.”

Investment Securities

Financial Instruments

We do not hold or purchase any foreign currency forward contracts for trading or speculative purposes.

Concentration of Credit Risk

Our concentration of credit risk relates to depositors holding the Company’s cash and cash equivalents and customers with significant accounts receivable balances.

Inventories

Inventories and Allowances for Obsolescence

Software Development Costs and Intellectual Property Licenses

Property and Equipment

Long-Lived Assets

Property and Equipment.

Goodwill and Other Indefinite-Lived Assets

Goodwill and Other Indefinite-Lived Assets.

Amortizable Intangible Assets and Other Long-lived Assets

Amortizable Intangible and Other Long-lived Assets.

Intangible assets subject to amortization are carried at cost less accumulated amortization, and amortized over the estimated useful life in proportion to the economic benefits received.

Assets Recognized from Costs to Obtain a Contract with a Customer/Revenue Recognition/Allowances for Returns and Price Protection/Contract Balances/Shipping and Handling/Cost of Revenues

Revenue Recognition


•	full games, which typically provide access to main game content, primarily for the console or PC platform;


•	downloadable content, which provides players with additional in-game content to purchase following the purchase of a full game;


•	microtransactions, which typically provide relatively small pieces of additional in-game content or enhancements to gameplay; and


•	subscriptions to players in our World of Warcraft franchise, which provide continual access to the game content.

We determine revenue recognition by:


•	identifying the contract, or contracts, with a customer;


•	identifying the performance obligations in each contract;


•	determining the transaction price;


•	allocating the transaction price to the performance obligations in each contract; and


•	recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.

Product Sales

Products with Online Functionality

Online Hosted Software Arrangements

Subscription Arrangements

Licensing Revenues

Other Revenues

Other revenues primarily include revenues from downloadable content (e.g., multi-player content packs), microtransactions, and licensing of intellectual property other than software to third-parties.

Significant Judgment around Revenue Arrangements with Multiple Deliverables

Estimated Service Period

Principal Agent Considerations


•	which party is primarily responsible for fulfilling the promise to provide the specified good or service; and


•	which party has discretion in establishing the price for the specified good or service.

Allowances for Returns and Price Protection

Contract Balances

Refer to Note 12 for further information, including changes in deferred revenue during the period.

Shipping and Handling

Cost of Revenues

Our cost of revenues consist of the following:

Cost of revenues—product sales:


(1)	“Product costs”—includes the manufacturing costs of goods produced and sold. These generally include product costs, manufacturing royalties (net of volume discounts), personnel-related costs, warehousing, and distribution costs. We generally recognize volume discounts when they are earned (typically in connection with the achievement of unit-based milestones).

(2)

Cost of revenues—subscription, licensing, and other revenues:


(1)	“Game operations and distribution costs”—includes costs to operate our games, such as customer service, Internet bandwidth and server costs, platform provider fee, and payment provider fees, along with costs to associated with our esports activities.

(2)

Assets Recognized from Costs to Obtain a Contract with a Customer

Advertising Expenses

Income Taxes

Foreign Currency Translation

Earnings (Loss) Per Common Share

Share-Based Payments

Loss Contingencies

Recently Issued Accounting Pronouncements

Recently adopted accounting pronouncements

Revenue recognition



Consolidated Balance Sheet:	Balance at December 31, 2017		Adjustments due to adoption of new revenue accounting standard			Balance at January 1, 2018
Assets
Accounts receivable, net	$	918	$	3		$	921
Software development	367		(20		)	347
Other current assets	476		(35		)	441
Deferred income taxes, net	459		(32		)	427
Other assets	440		4			444

Liabilities and Shareholders’ Equity
Deferred revenues	$	1,929	$	(194	)	$	1,735
Other liabilities	1,132		23			1,155
Shareholders’ equity	9,462		91			9,553

The most significant impacts of the new revenue accounting standard for us are:

•


•	The accounting for certain of our software licensing arrangements. While the impact of the new revenue accounting standard may differ on a contract-by-contract basis (as the actual revenue recognition treatment required under the standard will depend on contract-specific terms), the new revenue accounting standard generally results in earlier revenue recognition for these arrangements.



	For the Year Ended December 31, 2018
Consolidated Statement of Operations:	Under new revenue accounting standard		Under old revenue accounting standards		Increase (decrease) due to adoption of new revenue accounting standard
Net revenues
Product sales	$	2,255	$	2,398	$	(143	)
Subscription, licensing, and other revenues	5,245		5,166		79
Total net revenues	7,500		7,564		(64		)

Costs and expenses
Cost of revenues—product sales:
Product costs	719		737		(18		)
Software royalties, amortization, and intellectual property licenses	371		389		(18		)
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs	1,028		1,028		—
Software royalties, amortization, and intellectual property licenses	399		403		(4		)
Product development	1,101		1,101		—
Sales and marketing	1,062		1,063		(1		)
General and administrative	832		832		—
Total costs and expenses	5,512		5,553		(41		)

Operating income	1,988		2,011		(23		)
Interest and other expense (income), net	71		71		—
Loss on extinguishment of debt	40		40		—
Income before income tax expense	1,877		1,900		(23		)
Income tax expense	64		65		(1		)
Net income	$	1,813	$	1,835	$	(22	)

Earnings per common share
Basic	$	2.38	$	2.41	$	(0.03	)
Diluted	$	2.35	$	2.38	$	(0.03	)



	At December 31, 2018
Consolidated Balance Sheet:	Under new revenue accounting standard		Under old revenue accounting standards		Increase (decrease) due to adoption of new revenue accounting standard
Assets
Accounts receivable, net	$	1,035	$	1,037	$	(2	)
Software development	264		266		(2		)
Other current assets	539		559		(20		)
Deferred income taxes, net	403		453		(50		)
Other assets	482		493		(11		)

Liabilities and Shareholders’ Equity
Deferred revenues	$	1,493	$	1,674	$	(181	)
Accrued expenses and other liabilities	896		914		(18		)
Other liabilities	1,147		1,102		45
Shareholders’ equity	11,357		11,288		69

Adoption of the new revenue accounting standard had no impact to net cash from or used in operating, investing, or financing activities in our consolidated statement of cash flows.

Financial Instruments

Statement of Cash Flows-Restricted Cash



	For the Year Ended December 31, 2016
	Under new standard after adoption			Under old standard before adoption			Increase (decrease) due to adoption of new standard
Acquisition of business, net of cash acquired	$	(4,586	)	$	(4,588	)	$	2
Release of cash in escrow	—			3,561			(3,561		)
Other investing activities	(7		)	(14		)	7
Net cash used in investing activities	(4,729		)	(1,177		)	(3,552		)

Net increase (decrease) in cash and cash equivalents and restricted cash	(2,130		)	1,422			(3,552		)
Cash and cash equivalents and restricted cash at beginning of period	5,392			1,823			3,569
Cash and cash equivalents and restricted cash at end of period	3,262			3,245			17

Derivatives and Hedging

Recent Accounting Pronouncements Not Yet Adopted

Leases

Goodwill

Cloud Computing Arrangements

Recently Issued Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2018

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Schedule of Impact of Adoption

See a summary of impacts on our consolidated statement of cash flows for the year ended December 31, 2016 as follows (in millions):



	For the Year Ended December 31, 2016
	Under new standard after adoption			Under old standard before adoption			Increase (decrease) due to adoption of new standard
Acquisition of business, net of cash acquired	$	(4,586	)	$	(4,588	)	$	2
Release of cash in escrow	—			3,561			(3,561		)
Other investing activities	(7		)	(14		)	7
Net cash used in investing activities	(4,729		)	(1,177		)	(3,552		)

Net increase (decrease) in cash and cash equivalents and restricted cash	(2,130		)	1,422			(3,552		)
Cash and cash equivalents and restricted cash at beginning of period	5,392			1,823			3,569
Cash and cash equivalents and restricted cash at end of period	3,262			3,245			17



	For the Year Ended December 31, 2018
Consolidated Statement of Operations:	Under new revenue accounting standard		Under old revenue accounting standards		Increase (decrease) due to adoption of new revenue accounting standard
Net revenues
Product sales	$	2,255	$	2,398	$	(143	)
Subscription, licensing, and other revenues	5,245		5,166		79
Total net revenues	7,500		7,564		(64		)

Costs and expenses
Cost of revenues—product sales:
Product costs	719		737		(18		)
Software royalties, amortization, and intellectual property licenses	371		389		(18		)
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs	1,028		1,028		—
Software royalties, amortization, and intellectual property licenses	399		403		(4		)
Product development	1,101		1,101		—
Sales and marketing	1,062		1,063		(1		)
General and administrative	832		832		—
Total costs and expenses	5,512		5,553		(41		)

Operating income	1,988		2,011		(23		)
Interest and other expense (income), net	71		71		—
Loss on extinguishment of debt	40		40		—
Income before income tax expense	1,877		1,900		(23		)
Income tax expense	64		65		(1		)
Net income	$	1,813	$	1,835	$	(22	)

Earnings per common share
Basic	$	2.38	$	2.41	$	(0.03	)
Diluted	$	2.35	$	2.38	$	(0.03	)



	At December 31, 2018
Consolidated Balance Sheet:	Under new revenue accounting standard		Under old revenue accounting standards		Increase (decrease) due to adoption of new revenue accounting standard
Assets
Accounts receivable, net	$	1,035	$	1,037	$	(2	)
Software development	264		266		(2		)
Other current assets	539		559		(20		)
Deferred income taxes, net	403		453		(50		)
Other assets	482		493		(11		)

Liabilities and Shareholders’ Equity
Deferred revenues	$	1,493	$	1,674	$	(181	)
Accrued expenses and other liabilities	896		914		(18		)
Other liabilities	1,147		1,102		45
Shareholders’ equity	11,357		11,288		69

The cumulative effect adjustment recorded to our retained earnings was $88 million (see our consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our consolidated balance sheet at January 1, 2018 (amounts in millions):



Consolidated Balance Sheet:	Balance at December 31, 2017		Adjustments due to adoption of new revenue accounting standard			Balance at January 1, 2018
Assets
Accounts receivable, net	$	918	$	3		$	921
Software development	367		(20		)	347
Other current assets	476		(35		)	441
Deferred income taxes, net	459		(32		)	427
Other assets	440		4			444

Liabilities and Shareholders’ Equity
Deferred revenues	$	1,929	$	(194	)	$	1,735
Other liabilities	1,132		23			1,155
Shareholders’ equity	9,462		91			9,553

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2018

Cash and Cash Equivalents [Abstract]

Components of cash and cash equivalents

The following table summarizes the components of our cash and cash equivalents (amounts in millions):



	At December 31,
	2018		2017
Cash	$	268	$	269
Foreign government treasury bills	32		39
Money market funds	3,925		4,405
Cash and cash equivalents	$	4,225	$	4,713

Inventories, Net (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories, net, consist of the following (amounts in millions):



	At December 31,
	2018		2017
Finished goods	$	40	$	45
Purchased parts and components	3		1
Inventories, net	$	43	$	46

Software Development and Intellectual Property Licenses (Tables)

12 Months Ended

Dec. 31, 2018

Software Development Costs and Intellectual Property Licenses

Summarizes the components of software development and intellectual property licenses

The following table summarizes the components of our capitalized software development costs (amounts in millions):



	At December 31,
	2018		2017
Internally-developed software costs	$	291	$	270
Payments made to third-party software developers	38		183
Total software development costs	$	329	$	453

Amortization of 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 Years Ended December 31,
	2018		2017		2016
Amortization of capitalized software development costs and intellectual property licenses	$	501	$	314	$	335

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and equipment, net was comprised of the following (amounts in millions):



	At December 31,
	2018			2017
Land	$	1		$	1
Buildings	4			4
Leasehold improvements	248			224
Computer equipment	700			658
Office furniture and other equipment	99			92
Total cost of property and equipment	1,052			979
Less accumulated depreciation	(770		)	(685		)
Property and equipment, net	$	282		$	294

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2018

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of finite-lived intangible assets

Intangible assets, net consist of the following (amounts in millions):



	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



	At December 31, 2017
	Estimated useful lives	Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3 - 11 years	$	1,154	$	(869	)	$	285
Developed software	2 - 5 years	601		(301		)	300
Customer base	2 years	617		(573		)	44
Trade names	7 - 10 years	54		(16		)	38
Other	1 - 15 years	19		(13		)	6
Total definite-lived intangible assets		$	2,445	$	(1,772	)	$	673

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite						386
Acquired trade names	Indefinite						47
Total indefinite-lived intangible assets							$	433
Total intangible assets, net							$	1,106

Schedule of indefinite-lived intangible assets

Intangible assets, net consist of the following (amounts in millions):



	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



	At December 31, 2017
	Estimated useful lives	Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3 - 11 years	$	1,154	$	(869	)	$	285
Developed software	2 - 5 years	601		(301		)	300
Customer base	2 years	617		(573		)	44
Trade names	7 - 10 years	54		(16		)	38
Other	1 - 15 years	19		(13		)	6
Total definite-lived intangible assets		$	2,445	$	(1,772	)	$	673

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite						386
Acquired trade names	Indefinite						47
Total indefinite-lived intangible assets							$	433
Total intangible assets, net							$	1,106

Schedule of finite lived intangible assets, future amortization expense

At December 31, 2018, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):



2019	$	204
2020	74
2021	12
2022	7
2023	2
Thereafter	3
Total	$	302

Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill by operating segments

The changes in the carrying amount of goodwill by operating segment are as follows (amounts in millions):



	Activision			Blizzard		King		Total
Balance at December 31, 2016	$	6,903		$	190	$	2,675	$	9,768
Other	(5		)	—		—		(5		)
Balance at December 31, 2017	$	6,898		$	190	$	2,675	$	9,763
Other	(1		)	—		—		(1		)
Balance at December 31, 2018	$	6,897		$	190	$	2,675	$	9,762

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair value, assets measured on a recurring and/or non-recurring basis



				Fair Value Measurements at December 31, 2018 Using
	As of December 31, 2018			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	$	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



				Fair Value Measurements at December 31, 2017 Using
	As of December 31, 2017			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	$	4,405		$	4,405	$	—		$	—	Cash and cash equivalents
Foreign government treasury bills	39			39		—			—		Cash and cash equivalents
U.S. treasuries and government agency securities	55			55		—			—		Other current assets
Total recurring fair value measurements	$	4,499		$	4,499	$	—		$	—

Financial Liabilities:
Foreign currency forward contracts designated as hedges	$	(5	)	$	—	$	(5	)	$	—	Accrued expenses and other liabilities

Foreign currency forward contracts

The total gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions):



	As of December 31, 2018				As of December 31, 2017
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell GBP	$	55	$	1	$	—	$	—

The total gross notional amounts and fair values of our Cash Flow Hedges are as follows (amounts in millions):



	As of December 31, 2018				As of December 31, 2017
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell Euro	$	723	$	12	$	521	$	(5	)

Net realized gains (losses) reclassified out of accumulated other comprehensive income (loss)



	For the Years Ended December 31,
	2018		2017			2016		Statement of Operations Classification
Cash Flow Hedges	$	7	$	(1	)	$	4	Net revenues

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of debt

A summary of our outstanding debt is as follows (amounts in millions):



	At December 31, 2018
	Gross Carrying Amount		Unamortized Discount and Deferred Financing Costs			Net Carrying Amount
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



	At December 31, 2017
	Gross Carrying Amount		Unamortized Discount and Deferred Financing Costs			Net Carrying Amount
2017 TLA	$	990	$	(8	)	$	982
2021 Notes	650		(4		)	646
2022 Notes	400		(4		)	396
2023 Notes	750		(9		)	741
2026 Notes	850		(9		)	841
2027 Notes	400		(6		)	394
2047 Notes	400		(10		)	390
Total long-term debt	$	4,440	$	(50	)	$	4,390

Schedule of maturities of debt

As of December 31, 2018, the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years are as follows (amounts in millions):



For the years ending December 31,
2019	$	—
2020	—
2021	650
2022	400
2023	—
Thereafter	1,650
Total	$	2,700

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2018

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 Year Ended December 31, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			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	(9		)	10			45			46
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(5		)	(7		)	(12		)
Balance at December 31, 2018	$	(629	)	$	5		$	23		$	(601	)



	For the Year Ended December 31, 2017
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			Total
Balance at December 31, 2016	$	(659	)	$	1		$	29		$	(629	)
Other comprehensive income (loss) before reclassifications	20			(1		)	(45		)	(26		)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	16			—			1			17
Balance at December 31, 2017	$	(623	)	$	—		$	(15	)	$	(638	)

Operating Segments and Geographic Regions (Tables)

12 Months Ended

Dec. 31, 2018

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 the reportable segment net revenues and segment operating income are presented below (amounts in millions):



	Year Ended December 31, 2018
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,458	$	2,238	$	2,086	$	6,782
Intersegment net revenues (1)	—		53		—		53
Segment net revenues	$	2,458	$	2,291	$	2,086	$	6,835

Segment operating income	$	1,011	$	685	$	750	$	2,446

	Year Ended December 31, 2017
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,628	$	2,120	$	1,998	$	6,746
Intersegment net revenues (1)	—		19		—		19
Segment net revenues	$	2,628	$	2,139	$	1,998	$	6,765

Segment operating income	$	1,005	$	712	$	700	$	2,417

	Year Ended December 31, 2016
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,220	$	2,439	$	1,586	$	6,245
Intersegment net revenues (1)	—		—		—		—
Segment net revenues	$	2,220	$	2,439	$	1,586	$	6,245

Segment operating income	$	788	$	995	$	537	$	2,320


(1)	Intersegment revenues reflect licensing and service fees charged between segments.



	Years Ended December 31,
	2018			2017			2016
Reconciliation to consolidated net revenues:
Segment net revenues	$	6,835		$	6,765		$	6,245
Revenues from other segments (1)	480			410			354
Net effect from recognition (deferral) of deferred net revenues	238			(139		)	9
Elimination of intersegment revenues (2)	(53		)	(19		)	—
Consolidated net revenues	$	7,500		$	7,017		$	6,608

Reconciliation to consolidated income before income tax expense:
Segment operating income	$	2,446		$	2,417		$	2,320
Operating income (loss) from other segments (1)	31			(19		)	14
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	100			(71		)	(10		)
Share-based compensation expense	(209		)	(178		)	(159		)
Amortization of intangible assets	(370		)	(757		)	(706		)
Fees and other expenses related to the acquisition of King (3)	—			(15		)	(47		)
Restructuring costs (4)	(10		)	(15		)	—
Other non-cash charges (5)	—			(14		)	—
Discrete tax-related items (6)	—			(39		)	—
Consolidated operating income	1,988			1,309			1,412
Interest and other expense (income), net	71			146			214
Loss on extinguishment of debt	40			12			92
Consolidated income before income tax expense	$	1,877		$	1,151		$	1,106


(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)	Intersegment revenues reflect licensing and service fees charged between segments.


(3)	Reflects fees and other expenses, such as legal, banking, and professional services fees, related to the acquisition of King and associated integration activities, including related debt financings.


(4)	Reflects restructuring charges, primarily severance costs.


(5)	Reflects a non-cash accounting charge to reclassify certain cumulative translation gains (losses) into earnings due to the substantial liquidation of certain of our foreign entities.


(6)	Reflects the impact of other unusual or unique tax-related items and activities.

Schedule of net revenues by distribution channels

Net revenues by distribution channel were as follows (amounts in millions):



	Year Ended December 31, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,740		$	2,009		$	2,090		$	—	$	(53	)	$	5,786
Retail channels	998			109			—			—		—			1,107
Other (2)	—			148			—			459		—			607
Total consolidated net revenues	$	2,738		$	2,266		$	2,090		$	459	$	(53	)	$	7,500

Change in deferred revenues:
Digital online channels (1)	$	(96	)	$	32		$	(4	)	$	—	$	—		$	(68	)
Retail channels	(184		)	(7		)	—			—		—			(191		)
Other (2)	—			—			—			21		—			21
Total change in deferred revenues	$	(280	)	$	25		$	(4	)	$	21	$	—		$	(238	)

Segment net revenues:
Digital online channels (1)	$	1,644		$	2,041		$	2,086		$	—	$	(53	)	$	5,718
Retail channels	814			102			—			—		—			916
Other (2)	—			148			—			480		—			628
Total segment net revenues	$	2,458		$	2,291		$	2,086		$	480	$	(53	)	$	7,262

Net revenues by distribution channel for the years ended December 31, 2017 and December 31, 2016, were as follows (amounts in millions):



	Years Ended December 31,
	2017		2016
Net revenues by distribution channel:
Digital online channels (1)	$	5,479	$	4,865
Retail channels	1,033		1,386
Other (2)	505		357
Total consolidated net revenues	$	7,017	$	6,608


(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 from external customers by geographic region

Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the year ended December 31, 2018, were as follows (amounts in millions):



	Year Ended December 31, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	1,622		$	1,004		$	1,269		$	13	$	(28	)	$	3,880
EMEA (1)	897			692			599			446		(16		)	2,618
Asia Pacific	219			570			222			—		(9		)	1,002
Total consolidated net revenues	$	2,738		$	2,266		$	2,090		$	459	$	(53	)	$	7,500

Change in deferred revenues:
Americas	$	(163	)	$	15		$	(3	)	$	—	$	—		$	(151	)
EMEA (1)	(127		)	16			(1		)	21		—			(91		)
Asia Pacific	10			(6		)	—			—		—			4
Total change in deferred revenues	$	(280	)	$	25		$	(4	)	$	21	$	—		$	(238	)

Segment net revenues:
Americas	$	1,459		$	1,019		$	1,266		$	13	$	(28	)	$	3,729
EMEA (1)	770			708			598			467		(16		)	2,527
Asia Pacific	229			564			222			—		(9		)	1,006
Total segment net revenues	$	2,458		$	2,291		$	2,086		$	480	$	(53	)	$	7,262

Net revenues by geographic region for the years ended December 31, 2017 and December 31, 2016, were as follows (amounts in millions):



	Years Ended December 31,
	2017		2016
Net revenues by geographic region:
Americas	$	3,607	$	3,423
EMEA (1)	2,464		2,221
Asia Pacific	946		964
Total consolidated net revenues	$	7,017	$	6,608


(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 year ended December 31, 2018, were as follows (amounts in millions):



	Year Ended December 31, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	2,351		$	187		$	—		$	—	$	—		$	2,538
PC	368			1,711			154			—		(53		)	2,180
Mobile and ancillary (1)	19			220			1,936			—		—			2,175
Other (2)	—			148			—			459		—			607
Total consolidated net revenues	$	2,738		$	2,266		$	2,090		$	459	$	(53	)	$	7,500

Change in deferred revenues:
Console	$	(257	)	$	(8	)	$	—		$	—	$	—		$	(265	)
PC	(23		)	33			(1		)	—		—			9
Mobile and ancillary (1)	—			—			(3		)	—		—			(3		)
Other (2)	—			—			—			21		—			21
Total change in deferred revenues	$	(280	)	$	25		$	(4	)	$	21	$	—		$	(238	)

Segment net revenues:
Console	$	2,094		$	179		$	—		$	—	$	—		$	2,273
PC	345			1,744			153			—		(53		)	2,189
Mobile and ancillary (1)	19			220			1,933			—		—			2,172
Other (2)	—			148			—			480		—			628
Total segment net revenues	$	2,458		$	2,291		$	2,086		$	480	$	(53	)	$	7,262

Net revenues by platform for the years ended December 31, 2017 and December 31, 2016, were as follows (amounts in millions):



	Years Ended December 31,
	2017		2016
Net revenues by platform:
Console	$	2,389	$	2,453
PC	2,042		2,124
Mobile and ancillary (1)	2,081		1,674
Other (2)	505		357
Total consolidated net revenues	$	7,017	$	6,608


(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 toys and accessories from our Skylanders^® franchise and other 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 December 31,
	2018		2017		2016
Long-lived assets* by geographic region:
Americas	$	203	$	197	$	154
EMEA	62		75		87
Asia Pacific	17		22		17
Total long-lived assets by geographic region	$	282	$	294	$	258


*	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.

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock option valuation assumptions and weighted-average grant date fair value

The following table presents the weighted-average assumptions, weighted average grant date fair value, and the range of expected stock price volatilities:



	Employee and Director Options
	For the Years Ended December 31,
	2018			2017			2016
Expected life (in years)	7.64			7.01			6.86
Volatility	32.37		%	35.00		%	35.31		%
Risk free interest rate	3.10		%	2.14		%	1.56		%
Dividend yield	0.61		%	0.50		%	0.67		%
Weighted-average grant date fair value	$	21.03		$	21.11		$	12.83
Stock price volatility range:
Low	31.72		%	28.19		%	29.20		%
High	36.73		%	35.00		%	36.00		%

Schedule of stock option activity

Stock option activity is as follows:



	Number of Shares (in thousands)		Weighted-average exercise price		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2017	20,544		$	34.54
Granted	3,364		55.69
Exercised	(4,161	)	23.67
Forfeited	(2,543	)	45.07
Expired	(67	)	43.50
Outstanding stock options at December 31, 2018	17,137		$	39.73	6.81	$	185
Vested and expected to vest at December 31, 2018	14,589		$	38.50	6.98	$	172
Exercisable at December 31, 2018	6,120		$	28.73	5.60	$	116

Schedule of restricted stock units activity



	Number of shares		Weighted- Average Grant Date Fair Value
Unvested RSUs at December 31, 2017	11,821		$	27.20
Granted	3,184		64.61
Vested	(3,078	)	38.87
Forfeited	(1,304	)	37.60
Unvested RSUs at December 31, 2018	10,623		$	40.39

Schedule of share-based compensation expense

The following table sets forth the total share-based compensation expense included in our consolidated statements of operations (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses	$	13		$	10		$	20
Cost of revenues—subscription, licensing, and other revenues: Game Operations and Distribution Costs	2			1			2
Cost of revenues—subscription, licensing, and other revenues: Software royalties, amortization, and intellectual property licenses	3			3			2
Product development	61			57			47
Sales and marketing	15			15			15
General and administrative	115			92			73
Share-based compensation expense before income taxes	209			178			159
Income tax benefit	(46		)	(34		)	(42		)
Total share-based compensation expense, net of income tax benefit	$	163		$	144		$	117

Interest and Other Expense (Income), Net (Tables)

12 Months Ended

Dec. 31, 2018

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 Years Ended December 31,
	2018			2017			2016
Interest income	$	(65	)	$	(24	)	$	(10	)
Interest expense from debt and amortization of debt discount and deferred financing costs	140			162			217
Other expense (income), net	(4		)	8			7
Interest and other expense (income), net	$	71		$	146		$	214

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign income (loss) and income tax expense (benefit)

Domestic and foreign income (loss) before income taxes and details of the income tax expense (benefit) are as follows (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Income before income tax expense:
Domestic	$	432		$	185		$	228
Foreign	1,445			966			878
	$	1,877		$	1,151		$	1,106
Income tax expense (benefit):
Current:
Federal	$	(228	)	$	696		$	(15	)
State	(15		)	26			16
Foreign	280			335			150
Total current	37			1,057			151
Deferred:
Federal	(98		)	(111		)	40
State	106			(32		)	(13		)
Foreign	19			(36		)	(38		)
Total deferred	27			(179		)	(11		)

Income tax expense	$	64		$	878		$	140

Reconciliation of income taxes at the U.S. federal statutory rate to income tax expense (benefit)



	For the Years Ended December 31,
	2018					2017					2016
Federal income tax provision at statutory rate	$	394		21	%	$	403		35	%	$	387		35	%
State taxes, net of federal benefit	36			2		4			—		9			1
Research and development credits	(46		)	(2	)	(26		)	(2	)	(36		)	(3	)
Foreign rate differential	(198		)	(11	)	(271		)	(24	)	(239		)	(22	)
Change in tax reserves	265			14		291			25		210			19
Audit settlements	(115		)	(6	)	—			—		—			—
Net operating loss tax attribute assumed from the Purchase Transaction	—			—		(36		)	(3	)	(114		)	(10	)
Excess tax benefits related to share-based payments	(58		)	(3	)	(113		)	(10	)	(81		)	(7	)
U.S. Tax Reform Act	(285		)	(15	)	636			55		—			—
Change in valuation allowance	61			3		—			—		—			—
Other	10			—		(10		)	—		4			—
Income tax expense	$	64		3	%	$	878		76	%	$	140		13	%

Schedule of the components of the net deferred tax assets (liabilities)

The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):



	As of December 31,
	2018			2017
Deferred tax assets:
Allowance for sales returns and price protection	$	25		$	47
Accrued expenses	26			31
Deferred revenue	136			245
Tax attributes carryforwards	81			71
Share-based compensation	69			59
Acquired intangibles	43			149
U.S. deferred taxes on foreign earnings	263			—
Other	28			61
Deferred tax assets	671			663
Valuation allowance	(61		)	—
Deferred tax assets, net of valuation allowance	610			663
Deferred tax liabilities:
Acquired intangibles	(140		)	(146		)
Capitalized software development expenses	(57		)	(55		)
Other	(26		)	(24		)
Deferred tax liabilities	(223		)	(225		)
Net deferred tax assets	$	387		$	438

Reconciliation of unrecognized tax benefits for the period

A reconciliation of total gross unrecognized tax benefits is as follows (amounts in millions):



	For the Years Ended December 31,
	2018			2017			2016
Unrecognized tax benefits balance at January 1	$	1,138		$	846		$	552
Gross increase for tax positions taken during a prior year	94			66			89
Gross decrease for tax positions taken during a prior year	(123		)	—			(17		)
Gross increase for tax positions taken during the current year	132			229			240
Settlement with taxing authorities	(312		)	(1		)	(18		)
Lapse of statute of limitations	(12		)	(2		)	—
Unrecognized tax benefits balance at December 31	$	917		$	1,138		$	846

Computation of Basic/Diluted Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of computation of basic and 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 Years Ended December 31,
	2018		2017		2016
Numerator:
Consolidated net income	$	1,813	$	273	$	966
Less: Distributed earnings to unvested share-based awards that participate in earnings	—		—		(2		)
Less: Undistributed earnings allocated to unvested share-based awards that participate in earnings	—		—		(2		)
Numerator for basic and diluted earnings per common share—income available to common shareholders	$	1,813	$	273	$	962

Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	762		754		740
Effect of dilutive stock options and awards under the treasury stock method	9		12		14
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method	771		766		754
Basic earnings per common share	$	2.38	$	0.36	$	1.30
Diluted earnings per common share	$	2.35	$	0.36	$	1.28

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2018

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental cash flow information

Supplemental cash flow information is as follows (amounts in millions):



	For the Years Ended December 31,
	2018		2017		2016
Supplemental cash flow information:
Cash paid for income taxes, net of refunds	$	560	$	176	$	121
Cash paid for interest	150		145		209

The beginning and ending cash and cash equivalents and restricted cash reported within our consolidated statement of cash flows included restricted cash amounts as follows (amounts in millions):



	At December 31,
	2018		2017		2016
Beginning restricted cash	$	7	$	17	$	3,569
Ending restricted cash	4		7		17

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum commitments under non-cancelable operating lease agreements and other contractual arrangements

Assuming all contractual provisions are met, the total future minimum commitments for these and other contractual arrangements in place at December 31, 2018, are scheduled to be paid as follows (amounts in millions):



	Contractual Obligations (1)
	Facility and Equipment Leases		Developer and Intellectual Properties		Marketing		Long-Term Debt Obligations (2)		Total
For the years ending December 31,
2019	$	80	$	24	$	35	$	86	$	225
2020	70		3		21		86		180
2021	53		1		—		736		790
2022	45		—		—		466		511
2023	38		—		—		60		98
Thereafter	60		—		—		2,207		2,267
Total	$	346	$	28	$	56	$	3,641	$	4,071

(1)

(2)

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of Final Purchase Price Allocation

The final purchase price allocation was as follows (in millions):



	February 23, 2016			Estimated useful lives
Tangible assets and liabilities assumed:
Cash and cash equivalents	$	1,151
Accounts receivable	162
Other current assets	72
Property and equipment	57			2 - 7 years
Deferred income tax assets, net	27
Other assets	47
Accounts payable	(9		)
Accrued expenses and other liabilities	(272		)
Other liabilities	(110		)
Deferred income tax liabilities, net	(52		)
Intangible assets
Internally-developed franchises	845			3 - 5 years
Customer base	609			2 years
Developed software	580			3 - 4 years
Trade name	46			7 years

Goodwill	2,675
Total purchase price	$	5,828

Schedule of Pro Forma Financial Information



	For the Year Ended December 31,
(in millions)	2016
Net revenues	$	6,888
Net income	$	1,005
Basic earnings per common share	$	1.35
Diluted earnings per common share	$	1.32



(in millions)	For the Year Ended December 31, 2016
Net revenues	$	1,523
Net loss	$	(230	)

Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly financial information



	For the Quarters Ended
	December 31, 2018		September 30, 2018		June 30, 2018		March 31, 2018
	(Amounts in millions, except per share data)
Net revenues	$	2,381	$	1,512	$	1,641	$	1,965
Cost of revenues	832		513		510		662
Operating income	694		265		434		595
Net income	650		260		402		500
Basic earnings per common share	0.85		0.34		0.53		0.66
Diluted earnings per common share	0.84		0.34		0.52		0.65



	For the Quarters Ended
	December 31, 2017			September 30, 2017		June 30, 2017		March 31, 2017
	(Amounts in millions, except per share data)
Net revenues	$	2,043		$	1,618	$	1,631	$	1,726
Cost of revenues	803			552		561		585
Operating income	221			257		339		493
Net income (loss)	(584		)	188		243		426
Basic earnings (loss) per common share	(0.77		)	0.25		0.32		0.57
Diluted earnings (loss) per common share	(0.77		)	0.25		0.32		0.56

Description of Business (Details) $ in Millions	3 Months Ended								12 Months Ended
Description of Business (Details) $ in Millions	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Reportable Segments
Number of reportable segments \| segment									3
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenues	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 2,043	$ 1,618	$ 1,631	$ 1,726	$ 7,500	$ 7,017	$ 6,608
Operating income	$ 694	$ 265	$ 434	$ 595	$ 221	$ 257	$ 339	$ 493	1,988	$ 1,309	$ 1,412
Bungie, Inc. - Destiny Publishing Rights
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Revenues									164
Operating income									$ 91

Summary of Significant Accounting Policies (Details)	12 Months Ended
Summary of Significant Accounting Policies (Details)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial Instruments
Maximum contractual terms of foreign exchange forward contracts	1 year
Minimum
Capitalized Software Development Costs [Line Items]
Amortization period for capitalized software development costs	6 months
Maximum
Capitalized Software Development Costs [Line Items]
Amortization period for capitalized software development costs	2 years
Apple \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	15.00%	16.00%	13.00%
Apple \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk		10.00%
Sony \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	13.00%	14.00%	13.00%
Sony \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	15.00%	17.00%
Google \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	11.00%	10.00%
Microsoft \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk		14.00%
NetEase \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	12.00%

Summary of Significant Accounting Policies - Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2018
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	25 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	33 years
Computer equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	2 years
Computer equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Office furniture and other equipment. \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	2 years
Office furniture and other equipment. \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years

Summary of Significant Accounting Policies - Goodwill and Other Indefinite-Lived Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment	$ 0	$ 0	$ 0
Impairment of intangible assets	0	0	0
Trade names
Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 0	$ 0	$ 0

Summary of Significant Accounting Policies - Definite-Lived Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Impairment of intangible assets	$ 0	$ 0	$ 0

Summary of Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2018
Minimum
Disaggregation of Revenue [Line Items]
Payment terms (in days)	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms (in days)	90 days

Summary of Significant Accounting Policies - Estimated Service Period (Details)	12 Months Ended
	Dec. 31, 2018
Revenue, Performance Obligation [Abstract]
Estimated service period over which revenues are recognized (less than)	12 months

Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Marketing and Advertising Expense [Abstract]
Advertising expense included in sales and marketing expense	$ 631	$ 708	$ 641

Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Excess tax benefits from share-based payments	$ 58	$ 113	$ 81

Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2016	Jan. 01, 2019	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative impact from adoption of new revenue accounting standard (Note 3)				$ 3
Movement in restricted cash related to acquisition		$ 0
Adjustments For ASU 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative impact from adoption of new revenue accounting standard (Note 3)				91
Sale price recognized as revenue upon delivery (percent)	20.00%
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Movement in restricted cash related to acquisition		$ 3,561
Accounting Standards Update 2016-02 \| Scenario, Forecast \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liabilities			$ 275
Accounting Standards Update 2016-02 \| Scenario, Forecast \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease liabilities			$ 325
Retained Earnings \| Adjustments For ASU 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative impact from adoption of new revenue accounting standard (Note 3)				$ 88

Recently Issued Accounting Pronouncements - Modified Retrospective Method - Adjusted Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets
Accounts receivable, net	$ 1,035	$ 921	$ 918
Software development	264	347	367
Other current assets	539	441	476
Deferred income taxes, net	403	427	459
Other assets	482	444	440
Liabilities and Shareholders’ Equity
Deferred revenues	1,493	1,735	1,929
Accrued expenses and other liabilities	896		1,411
Other liabilities	1,147	1,155	1,132
Shareholders’ equity	11,357	9,553	9,462	$ 9,119	$ 8,068
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Accounts receivable, net	1,037		918
Software development	266		367
Other current assets	559		476
Deferred income taxes, net	453		459
Other assets	493		440
Liabilities and Shareholders’ Equity
Deferred revenues	1,674		1,929
Accrued expenses and other liabilities	914
Other liabilities	1,102		1,132
Shareholders’ equity	11,288		$ 9,462
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09
Assets
Accounts receivable, net	(2)	3
Software development	(2)	(20)
Other current assets	(20)	(35)
Deferred income taxes, net	(50)	(32)
Other assets	(11)	4
Liabilities and Shareholders’ Equity
Deferred revenues	(181)	(194)
Accrued expenses and other liabilities	(18)
Other liabilities	45	23
Shareholders’ equity	$ 69	$ 91

Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018	Dec. 31, 2015
Net revenues
Net revenues	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 2,043	$ 1,618	$ 1,631	$ 1,726	$ 7,500	$ 7,017	$ 6,608
Cost of revenues:
Cost of revenues	832	513	510	662	803	552	561	585
Product development									1,101	1,069	958
Sales and marketing									1,062	1,378	1,210
General and administrative									832	760	634
Total costs and expenses									5,512	5,708	5,196
Operating income	694	265	434	595	221	257	339	493	1,988	1,309	1,412
Interest and other expense (income), net (Note 17)									71	146	214
Loss on extinguishment of debt									40	12	92
Income before income tax expense									1,877	1,151	1,106
Income tax expense									64	878	140
Net income	$ 650	$ 260	$ 402	$ 500	$ (584)	$ 188	$ 243	$ 426	$ 1,813	$ 273	$ 966
Earnings per common share
Basic (in dollars per share)	$ 0.85	$ 0.34	$ 0.53	$ 0.66	$ (0.77)	$ 0.25	$ 0.32	$ 0.57	$ 2.38	$ 0.36	$ 1.30
Diluted (in dollars per share)	$ 0.84	$ 0.34	$ 0.52	$ 0.65	$ (0.77)	$ 0.25	$ 0.32	$ 0.56	$ 2.35	$ 0.36	$ 1.28
Assets
Accounts receivable, net	$ 1,035				$ 918				$ 1,035	$ 918		$ 921
Software development	264				367				264	367		347
Other current assets	539				476				539	476		441
Deferred income taxes, net	403				459				403	459		427
Other assets	482				440				482	440		444
Liabilities and Shareholders’ Equity
Deferred revenues	1,493				1,929				1,493	1,929		1,735
Accrued expenses and other liabilities	896				1,411				896	1,411
Other liabilities	1,147				1,132				1,147	1,132		1,155
Shareholders’ equity	11,357				9,462				11,357	9,462	$ 9,119	9,553	$ 8,068
Product sales
Net revenues
Net revenues									2,255	2,110	2,196
Product costs
Cost of revenues:
Cost of revenues									719	733	741
Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									371	300	331
Subscription, licensing, and other revenues
Net revenues
Net revenues									5,245	4,907	4,412
Game operations and distribution costs
Cost of revenues:
Cost of revenues									1,028	984	851
Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									399	484	$ 471
Calculated under Revenue Guidance in Effect before Topic 606
Net revenues
Net revenues									7,564
Cost of revenues:
Product development									1,101
Sales and marketing									1,063
General and administrative									832
Total costs and expenses									5,553
Operating income									2,011
Interest and other expense (income), net (Note 17)									71
Loss on extinguishment of debt									40
Income before income tax expense									1,900
Income tax expense									65
Net income									$ 1,835
Earnings per common share
Basic (in dollars per share)									$ 2.41
Diluted (in dollars per share)									$ 2.38
Assets
Accounts receivable, net	1,037				918				$ 1,037	918
Software development	266				367				266	367
Other current assets	559				476				559	476
Deferred income taxes, net	453				459				453	459
Other assets	493				440				493	440
Liabilities and Shareholders’ Equity
Deferred revenues	1,674				1,929				1,674	1,929
Accrued expenses and other liabilities	914								914
Other liabilities	1,102				1,132				1,102	1,132
Shareholders’ equity	11,288				$ 9,462				11,288	$ 9,462
Calculated under Revenue Guidance in Effect before Topic 606 \| Product sales
Net revenues
Net revenues									2,398
Calculated under Revenue Guidance in Effect before Topic 606 \| Product costs
Cost of revenues:
Cost of revenues									737
Calculated under Revenue Guidance in Effect before Topic 606 \| Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									389
Calculated under Revenue Guidance in Effect before Topic 606 \| Subscription, licensing, and other revenues
Net revenues
Net revenues									5,166
Calculated under Revenue Guidance in Effect before Topic 606 \| Game operations and distribution costs
Cost of revenues:
Cost of revenues									1,028
Calculated under Revenue Guidance in Effect before Topic 606 \| Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									403
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09
Net revenues
Net revenues									(64)
Cost of revenues:
Product development									0
Sales and marketing									(1)
General and administrative									0
Total costs and expenses									(41)
Operating income									(23)
Interest and other expense (income), net (Note 17)									0
Loss on extinguishment of debt									0
Income before income tax expense									(23)
Income tax expense									(1)
Net income									$ (22)
Earnings per common share
Basic (in dollars per share)									$ (0.03)
Diluted (in dollars per share)									$ (0.03)
Assets
Accounts receivable, net	(2)								$ (2)			3
Software development	(2)								(2)			(20)
Other current assets	(20)								(20)			(35)
Deferred income taxes, net	(50)								(50)			(32)
Other assets	(11)								(11)			4
Liabilities and Shareholders’ Equity
Deferred revenues	(181)								(181)			(194)
Accrued expenses and other liabilities	(18)								(18)
Other liabilities	45								45			23
Shareholders’ equity	$ 69								69			$ 91
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09 \| Product sales
Net revenues
Net revenues									(143)
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09 \| Product costs
Cost of revenues:
Cost of revenues									(18)
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09 \| Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									(18)
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09 \| Subscription, licensing, and other revenues
Net revenues
Net revenues									79
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09 \| Game operations and distribution costs
Cost of revenues:
Cost of revenues									0
Difference between Revenue Guidance in Effect before and after Topic 606 \| Adjustments For ASU 2014-09 \| Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues									$ (4)

Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Acquisition of business, net of cash acquired	$ 0	$ 0	$ (4,586)
Release of cash in escrow			0
Other investing activities	(6)	3	(7)
Net cash used in investing activities	(230)	(207)	(4,729)
Net increase (decrease) in cash and cash equivalents and restricted cash	(491)	1,458	(2,130)
Cash and cash equivalents and restricted cash at beginning of period	4,720	3,262	5,392
Cash and cash equivalents and restricted cash at end of period	$ 4,229	4,720	3,262
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Acquisition of business, net of cash acquired			2
Release of cash in escrow			(3,561)
Other investing activities			7
Net cash used in investing activities			(3,552)
Net increase (decrease) in cash and cash equivalents and restricted cash			(3,552)
Cash and cash equivalents and restricted cash at beginning of period		17	3,569
Cash and cash equivalents and restricted cash at end of period			17
Previously Reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Acquisition of business, net of cash acquired			(4,588)
Release of cash in escrow			3,561
Other investing activities			(14)
Net cash used in investing activities			(1,177)
Net increase (decrease) in cash and cash equivalents and restricted cash			1,422
Cash and cash equivalents and restricted cash at beginning of period		$ 3,245	1,823
Cash and cash equivalents and restricted cash at end of period			$ 3,245

Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Cash	$ 268	$ 269
Foreign government treasury bills	32	39
Money market funds	3,925	4,405
Cash and cash equivalents	$ 4,225	$ 4,713

Inventories, Net (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 40	$ 45
Purchased parts and components	3	1
Inventories, net	43	46
Inventory reserves	$ 22	$ 36

Software Development and Intellectual Property Licenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Software development and intellectual property licenses:
Internally-developed software costs	$ 291	$ 270
Payments made to third-party software developers	38	183
Total software development costs	329	453
Amortization:
Amortization of capitalized software development costs and intellectual property licenses	$ 501	$ 314	$ 335

Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Cost of property and equipment	$ 1,052	$ 979
Less accumulated depreciation	(770)	(685)
Property and equipment, net	282	294	$ 258
Depreciation expense	138	130	121
Rental expense	75	71	$ 65
Land
Property, Plant and Equipment [Line Items]
Cost of property and equipment	1	1
Buildings
Property, Plant and Equipment [Line Items]
Cost of property and equipment	4	4
Leasehold improvements
Property, Plant and Equipment [Line Items]
Cost of property and equipment	248	224
Computer equipment
Property, Plant and Equipment [Line Items]
Cost of property and equipment	700	658
Office furniture and other equipment
Property, Plant and Equipment [Line Items]
Cost of property and equipment	$ 99	$ 92

Intangible Assets, Net (Details) - USD ($) $ in Millions	12 Months Ended
Intangible Assets, Net (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 2,445	$ 2,445
Accumulated amortization, definite-lived intangible assets	(2,143)	(1,772)
Net carrying amount, definite-lived intangible assets	302	673
Acquired Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, indefinite-lived intangible assets	433	433
Total intangible assets, net	735	1,106
Amortization expense disclosure
Amortization expense	371	759	$ 708
Activision trademark
Acquired Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, indefinite-lived intangible assets	386	386
Acquired trade names
Acquired Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, indefinite-lived intangible assets	47	47
Internally-developed franchises
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	1,154	1,154
Accumulated amortization, definite-lived intangible assets	(1,032)	(869)
Net carrying amount, definite-lived intangible assets	$ 122	$ 285
Internally-developed franchises \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years	3 years
Internally-developed franchises \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	11 years	11 years
Developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 601	$ 601
Accumulated amortization, definite-lived intangible assets	(456)	(301)
Net carrying amount, definite-lived intangible assets	$ 145	$ 300
Developed software \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	2 years	2 years
Developed software \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years	5 years
Customer base
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	2 years	2 years
Gross carrying amount, definite-lived intangible assets	$ 617	$ 617
Accumulated amortization, definite-lived intangible assets	(617)	(573)
Net carrying amount, definite-lived intangible assets	0	44
Acquired trade names
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	54	54
Accumulated amortization, definite-lived intangible assets	(23)	(16)
Net carrying amount, definite-lived intangible assets	$ 31	$ 38
Acquired trade names \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years	7 years
Acquired trade names \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years	10 years
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 19	$ 19
Accumulated amortization, definite-lived intangible assets	(15)	(13)
Net carrying amount, definite-lived intangible assets	$ 4	$ 6
Other \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year	1 year
Other \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years	15 years

Intangible Assets, Net - Future Amortization Schedule (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Definite-lived intangible assets, future amortization expense disclosure
2019	$ 204
2020	74
2021	12
2022	7
2023	2
Thereafter	3
Net carrying amount, definite-lived intangible assets	$ 302	$ 673

Goodwill (Details) - USD ($)	12 Months Ended
Goodwill (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	$ 9,763,000,000	$ 9,768,000,000
Other	(1,000,000)	(5,000,000)
Goodwill, balance at end of period	9,762,000,000	9,763,000,000
Accumulated impairment losses	0	0	$ 0
Activision
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	6,898,000,000	6,903,000,000
Other	(1,000,000)	(5,000,000)
Goodwill, balance at end of period	6,897,000,000	6,898,000,000
Blizzard
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	190,000,000	190,000,000
Other	0	0
Goodwill, balance at end of period	190,000,000	190,000,000
King
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	2,675,000,000	2,675,000,000
Other	0	0
Goodwill, balance at end of period	$ 2,675,000,000	$ 2,675,000,000

Other Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Other Assets and Liabilities
Accrued payroll related costs	$ 402	$ 441
Income tax payable, current	203	162
Income tax payable, non-current	$ 272	$ 473

Fair Value Measurements - Foreign Currency Forward Contracts (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Net revenues	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 2,043	$ 1,618	$ 1,631	$ 1,726	$ 7,500	$ 7,017	$ 6,608
Foreign currency forward contracts \| Cash Flow Hedging \| Reclassification out of Accumulated Other Comprehensive Income
Derivatives, Fair Value [Line Items]
Net revenues									7	(1)	$ 4
Foreign currency forward contracts \| Designated as Hedges \| Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	723				521				723	521
Fair value of foreign currency forward contracts	12				(5)				$ 12	(5)
Maximum length of time over which our foreign currency forward contracts mature									12 months
Deferred cash flow hedge gain (loss) to be reclassified within twelve months									$ 11
Deferred cash flow hedge gain (loss) in AOCI	11								11
Foreign currency forward contracts \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	55				0				55	0
Fair value of foreign currency forward contracts	$ 1				$ 0				$ 1	$ 0

Fair Value Measurements - Non-Recurring Basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges - nonrecurring	$ 0	$ 0	$ 0

Deferred Revenues (Details) - USD ($) $ in Billions	12 Months Ended
Deferred Revenues (Details) - USD ($) $ in Billions	Dec. 31, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Deferred revenues	$ 1.6	$ 1.8
Revenue recognized included in beginning deferred revenue	$ 1.7

Deferred Revenues - Remaining Performance Obligation (Details) $ in Billions	Dec. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 2.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 1.8
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]: 2020-01-01
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

Debt - Credit Facilities (Details) - USD ($)		12 Months Ended
Debt - Credit Facilities (Details) - USD ($)	Aug. 24, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Gross Carrying Amount		$ 2,700,000,000	$ 4,440,000,000
Repayment of long-term debt		1,740,000,000	4,251,000,000	$ 6,104,000,000
Credit Agreement, Seventh Amendment
Debt Instrument [Line Items]
Amount of letters of credit that can be issued under the Revolver		$ 50,000,000
Revolver
Debt Instrument [Line Items]
Maximum borrowing capacity			250,000,000
Revolver \| Credit Agreement, Seventh Amendment
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,500,000,000
Line of Credit
Debt Instrument [Line Items]
Debt covenant, consolidated total net debt ratio, maximum		375.00%
Debt instrument, covenant, consolidated total net debt ratio, qualifying acquisition		425.00%
Debt instrument, covenant, consolidated total assets ratio, maximum		7.50%
Line of Credit \| 2017 TLA
Debt Instrument [Line Items]
Gross Carrying Amount			$ 990,000,000
Repayment of long-term debt	990,000,000
Write-off of unamortized discount and deferred financing costs	$ 7,000,000
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment
Debt Instrument [Line Items]
Amount drawn on the revolver		$ 0
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| Federal Funds Rate
Debt Instrument [Line Items]
Base rate margin		0.50%
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| LIBOR
Debt Instrument [Line Items]
Base rate margin		1.00%
Variable rate interest floor		0.00%
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| LIBOR \| Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)		0.875%
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| LIBOR \| Maximum
Debt Instrument [Line Items]
Applicable margin (as a percent)		1.375%
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| Base Rate
Debt Instrument [Line Items]
Variable rate interest floor		1.00%
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| Base Rate \| Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)		0.00%
Line of Credit \| Revolver \| Credit Agreement, Seventh Amendment \| Base Rate \| Maximum
Debt Instrument [Line Items]
Applicable margin (as a percent)		0.375%

Debt - Unsecured Senior Notes and Interest Expense and Financing Costs (Details) - USD ($) $ in Millions		12 Months Ended
	Aug. 16, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Amount outstanding		$ 2,700	$ 4,440
Loss on extinguishment of debt		40	12	$ 92
Interest expense		134	150	197
Amortization of debt discount and deferred financing costs		6	12	$ 20
Notes
Debt Instrument [Line Items]
Accrued interest payable		$ 15	28
Unsecured Notes
Debt Instrument [Line Items]
Redemption percentage of aggregate principal amount plus a make-whole premium		100.00%
Redemption price percentage		100.00%
Percentage of principal repayable to option holders upon certain criteria		101.00%
Unsecured Notes \| 2023 Notes
Debt Instrument [Line Items]
Amount outstanding			$ 750
Interest rate			6.125%
Loss on extinguishment of debt		$ 33
Redemption price percentage	100.00%
Premium paid		25
Write-off of unamortized discount and deferred financing costs		8
Unsecured Notes \| 2021 Notes
Debt Instrument [Line Items]
Amount outstanding		$ 650	$ 650
Interest rate		2.30%	2.30%
Unsecured Notes \| 2026 Notes
Debt Instrument [Line Items]
Amount outstanding		$ 850	$ 850
Interest rate		3.40%	3.40%
Unsecured Notes \| 2022 Notes
Debt Instrument [Line Items]
Amount outstanding		$ 400	$ 400
Interest rate		2.60%	2.60%
Unsecured Notes \| 2027 Notes
Debt Instrument [Line Items]
Amount outstanding		$ 400	$ 400
Interest rate		3.40%	3.40%
Unsecured Notes \| 2047 Notes
Debt Instrument [Line Items]
Amount outstanding		$ 400	$ 400
Interest rate		4.50%	4.50%

Debt - Summary of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Gross Carrying Amount	$ 2,700	$ 4,440
Unamortized Discount and Deferred Financing Costs	(29)	(50)
Net Carrying Amount	2,671	4,390
Credit Facilities \| 2017 TLA
Debt Instrument [Line Items]
Gross Carrying Amount		990
Unamortized Discount and Deferred Financing Costs		(8)
Net Carrying Amount		982
Unsecured Notes \| 2021 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	650	650
Unamortized Discount and Deferred Financing Costs	(3)	(4)
Net Carrying Amount	647	646
Unsecured Notes \| 2022 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(3)	(4)
Net Carrying Amount	397	396
Unsecured Notes \| 2023 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		750
Unamortized Discount and Deferred Financing Costs		(9)
Net Carrying Amount		741
Unsecured Notes \| 2026 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	850	850
Unamortized Discount and Deferred Financing Costs	(8)	(9)
Net Carrying Amount	842	841
Unsecured Notes \| 2027 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(5)	(6)
Net Carrying Amount	395	394
Unsecured Notes \| 2047 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(10)	(10)
Net Carrying Amount	$ 390	$ 390

Debt - Schedule of Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Maturities of Debt
2019	$ 0
2020	0
2021	650
2022	400
2023	0
Thereafter	1,650
Gross Carrying Amount	$ 2,700	$ 4,440

Debt - Debt Fair Value (Details) - USD ($) $ in Millions	Feb. 01, 2018	Dec. 31, 2018	Dec. 31, 2017
Line of Credit
Debt Instrument [Line Items]
Authorized debt repayments	$ 1,800
Fair value measurements using significant other observable inputs (Level 2) \| Unsecured Notes \| 2026 Notes
Debt Instrument [Line Items]
Fair value of notes		$ 800
Fair value measurements using significant other observable inputs (Level 2) \| Unsecured Notes \| 2027 Notes
Debt Instrument [Line Items]
Fair value of notes		376
Fair value measurements using significant other observable inputs (Level 2) \| Unsecured Notes \| 2047 Notes
Debt Instrument [Line Items]
Fair value of notes		$ 360	$ 421
Fair value measurements using significant other observable inputs (Level 2) \| Unsecured Notes \| 2023 Notes
Debt Instrument [Line Items]
Fair value of notes			$ 795

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 9,462	$ 9,119
Cumulative impact from adoption of new revenue accounting standard			$ 3
Other comprehensive income (loss) before reclassifications	46	(26)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(12)	17
Ending balance	11,357	9,462
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(638)	(629)
Ending balance	(601)	(638)
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(623)	(659)
Cumulative impact from adoption of new revenue accounting standard			3
Other comprehensive income (loss) before reclassifications	(9)	20
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	16
Ending balance	(629)	(623)
Unrealized gain (loss) on available-for- sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	0	1
Cumulative impact from adoption of new revenue accounting standard			0
Other comprehensive income (loss) before reclassifications	10	(1)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(5)	0
Ending balance	5	0
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(15)	29
Cumulative impact from adoption of new revenue accounting standard			$ 0
Other comprehensive income (loss) before reclassifications	45	(45)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(7)	1
Ending balance	$ 23	$ (15)

Operating Segments and Geographic Regions (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment									3
Segment Reporting Information [Line Items]
Segment net revenues									$ 7,262
Operating income	$ 694	$ 265	$ 434	$ 595	$ 221	$ 257	$ 339	$ 493	1,988	$ 1,309	$ 1,412
Net effect from recognition (deferral) of deferred net revenues									(238)
Net revenues	2,381	$ 1,512	$ 1,641	$ 1,965	2,043	$ 1,618	$ 1,631	$ 1,726	7,500	7,017	6,608
Share-based compensation expense									(209)	(178)	(159)
Amortization of intangible assets									(371)	(759)	(708)
Interest and other expense (income), net (Note 17)									71	146	214
Loss on extinguishment of debt									40	12	92
Income before income tax expense									1,877	1,151	1,106
Long-lived assets	282				294				282	294	258
Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									5,718
Net effect from recognition (deferral) of deferred net revenues									(68)
Net revenues									5,786	5,479	4,865
Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									916
Net effect from recognition (deferral) of deferred net revenues									(191)
Net revenues									1,107	1,033	1,386
Other
Segment Reporting Information [Line Items]
Segment net revenues									628
Net effect from recognition (deferral) of deferred net revenues									21
Net revenues									607	505	357
Console
Segment Reporting Information [Line Items]
Segment net revenues									2,273
Net effect from recognition (deferral) of deferred net revenues									(265)
Net revenues									2,538	2,389	2,453
PC
Segment Reporting Information [Line Items]
Segment net revenues									2,189
Net effect from recognition (deferral) of deferred net revenues									9
Net revenues									2,180	2,042	2,124
Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									2,172
Net effect from recognition (deferral) of deferred net revenues									(3)
Net revenues									2,175	2,081	1,674
Other
Segment Reporting Information [Line Items]
Segment net revenues									628
Net effect from recognition (deferral) of deferred net revenues									21
Net revenues									607	505	357
Americas
Segment Reporting Information [Line Items]
Segment net revenues									3,729
Net effect from recognition (deferral) of deferred net revenues									(151)
Net revenues									3,880	3,607	3,423
Long-lived assets	203				197				203	197	154
EMEA
Segment Reporting Information [Line Items]
Segment net revenues									2,527
Net effect from recognition (deferral) of deferred net revenues									(91)
Net revenues									2,618	2,464	2,221
Long-lived assets	62				75				62	75	87
Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									1,006
Net effect from recognition (deferral) of deferred net revenues									4
Net revenues									1,002	946	964
Long-lived assets	$ 17				$ 22				$ 17	$ 22	$ 17
Geographic Concentration Risk \| Revenues \| US
Segment Reporting Information [Line Items]
Percentage of concentration risk									46.00%	45.00%	45.00%
Geographic Concentration Risk \| Revenues \| UK
Segment Reporting Information [Line Items]
Percentage of concentration risk									12.00%	12.00%	11.00%
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues									$ 6,835	$ 6,765	$ 6,245
Operating income									2,446	2,417	2,320
Reportable segments \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									6,782	6,746	6,245
Reportable segments \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									53	19	0
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Segment net revenues									2,458	2,628	2,220
Operating income									1,011	1,005	788
Net effect from recognition (deferral) of deferred net revenues									(280)
Net revenues									2,738
Reportable segments \| Activision \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									2,458	2,628	2,220
Reportable segments \| Activision \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									0	0	0
Reportable segments \| Activision \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									1,644
Net effect from recognition (deferral) of deferred net revenues									(96)
Net revenues									1,740
Reportable segments \| Activision \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									814
Net effect from recognition (deferral) of deferred net revenues									(184)
Net revenues									998
Reportable segments \| Activision \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reportable segments \| Activision \| Console
Segment Reporting Information [Line Items]
Segment net revenues									2,094
Net effect from recognition (deferral) of deferred net revenues									(257)
Net revenues									2,351
Reportable segments \| Activision \| PC
Segment Reporting Information [Line Items]
Segment net revenues									345
Net effect from recognition (deferral) of deferred net revenues									(23)
Net revenues									368
Reportable segments \| Activision \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									19
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									19
Reportable segments \| Activision \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reportable segments \| Activision \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									1,459
Net effect from recognition (deferral) of deferred net revenues									(163)
Net revenues									1,622
Reportable segments \| Activision \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									770
Net effect from recognition (deferral) of deferred net revenues									(127)
Net revenues									897
Reportable segments \| Activision \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									229
Net effect from recognition (deferral) of deferred net revenues									10
Net revenues									219
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues									2,291	2,139	2,439
Operating income									685	712	995
Net effect from recognition (deferral) of deferred net revenues									25
Net revenues									2,266
Reportable segments \| Blizzard \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									2,238	2,120	2,439
Reportable segments \| Blizzard \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									53	19	0
Reportable segments \| Blizzard \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									2,041
Net effect from recognition (deferral) of deferred net revenues									32
Net revenues									2,009
Reportable segments \| Blizzard \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									102
Net effect from recognition (deferral) of deferred net revenues									(7)
Net revenues									109
Reportable segments \| Blizzard \| Other
Segment Reporting Information [Line Items]
Segment net revenues									148
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									148
Reportable segments \| Blizzard \| Console
Segment Reporting Information [Line Items]
Segment net revenues									179
Net effect from recognition (deferral) of deferred net revenues									(8)
Net revenues									187
Reportable segments \| Blizzard \| PC
Segment Reporting Information [Line Items]
Segment net revenues									1,744
Net effect from recognition (deferral) of deferred net revenues									33
Net revenues									1,711
Reportable segments \| Blizzard \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									220
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									220
Reportable segments \| Blizzard \| Other
Segment Reporting Information [Line Items]
Segment net revenues									148
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									148
Reportable segments \| Blizzard \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									1,019
Net effect from recognition (deferral) of deferred net revenues									15
Net revenues									1,004
Reportable segments \| Blizzard \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									708
Net effect from recognition (deferral) of deferred net revenues									16
Net revenues									692
Reportable segments \| Blizzard \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									564
Net effect from recognition (deferral) of deferred net revenues									(6)
Net revenues									570
Reportable segments \| King
Segment Reporting Information [Line Items]
Segment net revenues									2,086	1,998	1,586
Operating income									750	700	537
Net effect from recognition (deferral) of deferred net revenues									(4)
Net revenues									2,090
Reportable segments \| King \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									2,086	1,998	1,586
Reportable segments \| King \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									0	0	0
Reportable segments \| King \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									2,086
Net effect from recognition (deferral) of deferred net revenues									(4)
Net revenues									2,090
Reportable segments \| King \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reportable segments \| King \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reportable segments \| King \| Console
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reportable segments \| King \| PC
Segment Reporting Information [Line Items]
Segment net revenues									153
Net effect from recognition (deferral) of deferred net revenues									(1)
Net revenues									154
Reportable segments \| King \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									1,933
Net effect from recognition (deferral) of deferred net revenues									(3)
Net revenues									1,936
Reportable segments \| King \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reportable segments \| King \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									1,266
Net effect from recognition (deferral) of deferred net revenues									(3)
Net revenues									1,269
Reportable segments \| King \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									598
Net effect from recognition (deferral) of deferred net revenues									(1)
Net revenues									599
Reportable segments \| King \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									222
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									222
Non-reportable segments
Segment Reporting Information [Line Items]
Segment net revenues									480	410	354
Net effect from recognition (deferral) of deferred net revenues									21
Net revenues									459
Non-reportable segments \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Non-reportable segments \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Segment net revenues									480
Net effect from recognition (deferral) of deferred net revenues									21
Net revenues									459
Non-reportable segments \| Console
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Non-reportable segments \| PC
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Non-reportable segments \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Segment net revenues									480
Net effect from recognition (deferral) of deferred net revenues									21
Net revenues									459
Non-reportable segments \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									13
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									13
Non-reportable segments \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									467
Net effect from recognition (deferral) of deferred net revenues									21
Net revenues									446
Non-reportable segments \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Reconciliation items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues									238	(139)	9
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues									100	(71)	(10)
Share-based compensation expense									(209)	(178)	(159)
Amortization of intangible assets									(370)	(757)	(706)
Fees and other expenses related to the acquisition of King									0	(15)	(47)
Restructuring costs									(10)	(15)	0
Other non-cash charges									0	(14)	0
Discrete tax-related items									0	(39)	0
Reconciliation items \| Other segments
Segment Reporting Information [Line Items]
Operating income									31	(19)	14
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Segment net revenues									(53)
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									(53)
Elimination of intersegment revenues \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									(53)
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									(53)
Elimination of intersegment revenues \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Elimination of intersegment revenues \| Console
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Elimination of intersegment revenues \| PC
Segment Reporting Information [Line Items]
Segment net revenues									(53)
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									(53)
Elimination of intersegment revenues \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									0
Elimination of intersegment revenues \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									(28)
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									(28)
Elimination of intersegment revenues \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									(16)
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									(16)
Elimination of intersegment revenues \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									(9)
Net effect from recognition (deferral) of deferred net revenues									0
Net revenues									(9)
Elimination of intersegment revenues \| Blizzard
Segment Reporting Information [Line Items]
Net revenues									$ (53)	$ (19)	$ 0

Share-Based Compensation - Equity Incentive Plans (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2018	Jun. 05, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grant under share-based awards (in shares)		46
Aggregate common stock reserved for issuance under share-based awards (in shares)	27
Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of options	10 years
Stock Option Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	3 years
Stock Option Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	5 years
Restricted Stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	3 years
Restricted Stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	5 years

Share-Based Compensation - Method and Assumptions on Valuation of Stock Options and Awards (Details) - Stock Option Plan - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Share-based Compensation Assumptions [Line Items]
Expected life (in years)	7 years 7 months 20 days	7 years 4 days	6 years 10 months 9 days
Volatility	32.37%	35.00%	35.31%
Risk free interest rate	3.10%	2.14%	1.56%
Dividend yield	0.61%	0.50%	0.67%
Weighted-average fair value at the grant date (in dollars per share)	$ 21.03	$ 21.11	$ 12.83
Expected stock volatility rate, low end of range	31.72%	28.19%	29.20%
Expected stock volatility rate, high end of range	36.73%	35.00%	36.00%
Share-based compensation, unrecognized compensation	$ 84
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 2 months 12 days

Share-Based Compensation - Stock Option Activities (Details) - Stock Option Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock option activity, shares
Stock options at the beginning of the period (in shares)	20,544
Stock options, granted (in shares)	3,364
Stock options, exercised (in shares)	(4,161)
Stock options, forfeited (in shares)	(2,543)
Stock options, expired (in shares)	(67)
Stock options at the ending of the period (in shares)	17,137	20,544
Stock options, vested and expected to vest (in shares)	14,589
Stock options, exercisable (in shares)	6,120
Weighted-average exercise price
Stock options, weighted-average strike price at the beginning of the period (in dollars per share)	$ 34.54
Stock options, weighted-average exercise price, granted (in dollars per share)	55.69
Stock options, weighted-average exercise price, exercised (in dollars per share)	23.67
Stock options, weighted-average exercise price, forfeited (in dollars per share)	45.07
Stock options, weighted-average exercise price, expired (in dollars per share)	43.50
Stock options, weighted-average strike price at the end of the period (in dollars per share)	39.73	$ 34.54
Stock options, weighted-average exercise price, vested and expected to vest (in dollars per share)	38.50
Stock options, weighted-average exercise price, exercisable (in dollars per share)	$ 28.73
Stock options, weighted-average remaining contractual term	6 years 9 months 21 days
Stock options, weighted-average remaining contractual term, vested and expected to vest	6 years 11 months 22 days
Stock options, weighted-average remaining contractual term, exercisable	5 years 7 months 6 days
Stock options, aggregate intrinsic value	$ 185
Stock options, aggregate intrinsic value, vested and expected to vest	172
Stock options, aggregate intrinsic value, exercisable	116
Stock options, intrinsic value of options exercised	196	$ 372	$ 161
Total grant date fair value of options vested	45	$ 47	$ 40
Share-based compensation, unrecognized compensation	$ 84
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 2 months 12 days

Share-Based Compensation - Restricted Stock Units and Restricted Stock Awards Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restricted Stock
Restricted stock rights activity
Restricted stock rights at the beginning of the period (in shares)	11,821
Restricted stock rights, granted (in shares)	3,184
Restricted stock rights, vested (in shares)	(3,078)
Restricted stock rights, forfeited (in shares)	(1,304)
Restricted stock rights at the ending of the period (in shares)	10,623	11,821
Restricted stock rights, weighted-average grant date fair value information
Restricted stock rights, weighted-average grant date fair value at the beginning of the period (in dollars per share)	$ 27.20
Restricted stock rights, weighted-average grant date fair value, granted (in dollars per share)	64.61
Restricted stock rights, weighted-average grant date fair value, vested (in dollars per share)	38.87
Restricted stock rights, weighted-average grant date fair value, forfeited (in dollars per share)	37.60
Restricted stock rights, weighted-average grant date fair value (in dollars per share) ending balance	$ 40.39	$ 27.20
Share-based compensation, unrecognized compensation	$ 98
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 6 months 3 days
Total fair value of shares vested	$ 120	$ 64	$ 123
Performance shares
Restricted stock rights, weighted-average grant date fair value information
Performance-vesting restricted stock rights for which the accounting grant date has not been set (shares)	3,200
Performance-vesting restricted stock rights granted without an accounting grant date (shares)	1,600
Share-based compensation, unrecognized compensation	$ 67
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 5 months 26 days
Employee Stock Option And Restricted Stock
Restricted stock rights, weighted-average grant date fair value information
Income tax benefit from stock option exercises and restricted stock rights	$ 94	$ 160	$ 134

Share-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	$ 209	$ 178	$ 159
Income tax benefit	(46)	(34)	(42)
Total share-based compensation expense, net of income tax benefit	163	144	117
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	13	10	20
Cost of revenues—subscription, licensing, and other revenues: Game Operations and Distribution Costs
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	2	1	2
Cost of revenues—subscription, licensing, and other revenues: Software royalties, amortization, and intellectual property licenses
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	3	3	2
Product development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	61	57	47
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	15	15	15
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense before income taxes	$ 115	$ 92	$ 73

Interest and Other Expense (Income), Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Income and Expenses [Abstract]
Interest income	$ (65)	$ (24)	$ (10)
Interest expense from debt and amortization of debt discount and deferred financing costs	140	162	217
Other expense (income), net	(4)	8	7
Interest and other expense (income), net	$ 71	$ 146	$ 214

Income Taxes - Income (Loss) Before Income Taxes and Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income before income tax expense:
Domestic	$ 432	$ 185	$ 228
Foreign	1,445	966	878
Income before income tax expense	1,877	1,151	1,106
Current:
Federal	(228)	696	(15)
State	(15)	26	16
Foreign	280	335	150
Total current	37	1,057	151
Deferred:
Federal	(98)	(111)	40
State	106	(32)	(13)
Foreign	19	(36)	(38)
Total deferred	27	(179)	(11)
Income tax expense	64	878	140
Benefit credited to income tax provision:
Excess tax benefits from share-based payments	$ 58	$ 113	$ 81

Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Difference between income taxes computed at the U.S. federal statutory income tax rate and the income tax expense (benefit)
Federal income tax provision at statutory rate	$ 394	$ 403	$ 387
Federal income tax provision at statutory rate	21.00%	35.00%	35.00%
State taxes, net of federal benefit	$ 36	$ 4	$ 9
State taxes, net of federal benefit	2.00%	0.00%	1.00%
Research and development credits	$ (46)	$ (26)	$ (36)
Research and development credits	(2.00%)	(2.00%)	(3.00%)
Foreign rate differential	$ (198)	$ (271)	$ (239)
Foreign rate differential	(11.00%)	(24.00%)	(22.00%)
Change in tax reserves	$ 265	$ 291	$ 210
Change in tax reserves	14.00%	25.00%	19.00%
Audit settlements	$ (115)	$ 0	$ 0
Audit settlements	(6.00%)	0.00%	0.00%
Net operating loss tax attribute assumed from the Purchase Transaction	$ 0	$ (36)	$ (114)
Net operating loss tax attribute assumed from the Purchase Transaction	(0.00%)	(3.00%)	(10.00%)
Excess tax benefits related to share-based payments	$ (58)	$ (113)	$ (81)
Excess tax benefits related to share-based payments	(3.00%)	(10.00%)	(7.00%)
U.S. Tax Reform Act	$ (285)	$ 636	$ 0
U.S. Tax Reform Act	(15.00%)	55.00%	0.00%
Change in valuation allowance	$ 61	$ 0	$ 0
Change in valuation allowance	3.00%	0.00%	0.00%
Other	$ 10	$ (10)	$ 4
Other	0.00%	0.00%	0.00%
Income tax expense	$ 64	$ 878	$ 140
Income tax expense	3.00%	76.00%	13.00%

Income Taxes - Narrative (Details) € in Millions, shares in Millions, $ in Millions, kr in Billions	1 Months Ended	3 Months Ended			6 Months Ended	12 Months Ended				24 Months Ended
	Oct. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2013 USD ($) shares	Dec. 31, 2018 USD ($)	Dec. 31, 2018 SEK (kr)	Dec. 31, 2017 EUR (€)	Dec. 31, 2015 USD ($)
Income Tax [Line Items]
Reduction in unrecognized tax benefits resulting from Closing Agreement			$ 437			$ 312	$ 1	$ 18
Additional federal and state cash payments related to Closing Agreement					$ 345
Provisional amount recorded for effects of TCJA				$ 636
Additional tax expense (benefit) for effects of U.S. Tax Reform Act		$ (285)
Aggregate U.S. Tax Reform Act tax expense, net										$ 351
Tax expense related to adjustment to the transition tax										570
Tax benfefit related to remeasurement of deferred taxes related to GILTI										219
Repurchase of shares of common stock (in shares) \| shares									429
Potential tax benefit						(64)	(878)	(140)
NOL carryforwards, foreign		22			22	22				22
Valuation allowance		61		0	61	61	0			61
Deferred tax liability related to undistributed foreign earnings		16			16	16				16
Deferred tax asset related to GILTI		263			263	263				263
Unrecognized tax benefits		917		1,138	917	917	1,138	846		917			$ 552
Unrecognized tax benefits that would affect effective tax rate		812			812	812				812
Accrued interest and penalties related to uncertain tax positions		87		121	87	87	121	71		87
Interest expense related to uncertain tax positions						11	28	17
King Acquisition
Income Tax [Line Items]
Uncertain tax position assumed								$ 74
State
Income Tax [Line Items]
Tax credit carryforward		172			172	172				172
New VH
Income Tax [Line Items]
NOL carryforward									$ 760
NOL carryforward indemnification amount									200
Cumulative operating loss utilized - New VH NOL				760			760
Indemnification asset recorded in other assets				200			200
Indemnification asset recorded in treasury stock				200			200
New VH \| Expected
Income Tax [Line Items]
Potential tax benefit									$ 266
Domestic Tax Authority
Income Tax [Line Items]
Additional federal and state cash payments related to Closing Agreement	$ 334
Swedish Tax Agency
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded		$ 400			$ 400	$ 400				$ 400	kr 3.5
French Tax Authority
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded				$ 652			$ 652					€ 571
Settlement From Closing Agreement
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement			70
Indirect Tax Benefits Due to Closing Agreement
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement			$ (185)

Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for sales returns and price protection	$ 25	$ 47
Accrued expenses	26	31
Deferred revenue	136	245
Tax attributes carryforwards	81	71
Share-based compensation	69	59
Acquired intangibles	43	149
U.S. deferred taxes on foreign earnings	263	0
Other	28	61
Deferred tax assets	671	663
Valuation allowance	(61)	0
Deferred tax assets, net of valuation allowance	610	663
Deferred tax liabilities:
Acquired intangibles	(140)	(146)
Capitalized software development expenses	(57)	(55)
Other	(26)	(24)
Deferred tax liabilities	(223)	(225)
Net deferred tax assets	$ 387	$ 438

Income Taxes - Reconciliation of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of unrecognized tax benefits
Unrecognized tax benefits balance at January 1		$ 1,138	$ 846	$ 552
Gross increase for tax positions taken during a prior year		94	66	89
Gross decrease for tax positions taken during a prior year		(123)	0	(17)
Gross increase for tax positions taken during the current year		132	229	240
Settlement with taxing authorities	$ (437)	(312)	(1)	(18)
Lapse of statute of limitations		(12)	(2)	0
Unrecognized tax benefits balance at December 31		$ 917	$ 1,138	$ 846

Computation of Basic/Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Consolidated net income	$ 650	$ 260	$ 402	$ 500	$ (584)	$ 188	$ 243	$ 426	$ 1,813	$ 273	$ 966
Less: Distributed earnings to unvested share-based awards that participate in earnings									0	0	(2)
Less: Undistributed earnings allocated to unvested share-based awards that participate in earnings									0	0	(2)
Numerator for basic and diluted earnings per common share—income available to common shareholders									$ 1,813	$ 273	$ 962
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)									762	754	740
Effect of dilutive stock options and awards under the treasury stock method									9	12	14
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method									771	766	754
Basic earnings per common share (in dollars per share)	$ 0.85	$ 0.34	$ 0.53	$ 0.66	$ (0.77)	$ 0.25	$ 0.32	$ 0.57	$ 2.38	$ 0.36	$ 1.30
Diluted earnings per common share (in dollars per share)	$ 0.84	$ 0.34	$ 0.52	$ 0.65	$ (0.77)	$ 0.25	$ 0.32	$ 0.56	$ 2.35	$ 0.36	$ 1.28

Computation of Basic/Diluted Earnings Per Common Share - Narrative (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Participating common stock weighted-average shares, unvested restricted stock rights			3
Shares not included in computation of diluted EPS due to unmet performance measures	4	7	8
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	3	1	5

Capital Transactions - Repurchase Programs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2013	Jan. 31, 2019	Feb. 02, 2017
Equity, Class of Treasury Stock [Line Items]
Repurchase of shares of common stock (in shares)		429,000,000
Share Repurchase Program 2017
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, dollar amount authorized				$ 1,000,000,000
Cost of common stock repurchased under the stock repurchase program	$ 0
Repurchase of shares of common stock (in shares)	0
Subsequent Events \| Share Repurchase Program 2019
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, dollar amount authorized			$ 1,500,000,000

Capital Transactions - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions										12 Months Ended
	Feb. 12, 2019	May 09, 2018	Feb. 08, 2018	May 26, 2017	May 10, 2017	Feb. 09, 2017	May 27, 2016	May 11, 2016	Feb. 11, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Dividends per common share (in dollars per share)			$ 0.34			$ 0.30			$ 0.26	$ 0.34	$ 0.30	$ 0.26
Cash dividend payment		$ 259			$ 226			$ 192		$ 259	$ 226	$ 195
Dividend equivalent payment				$ 0			$ 3
Subsequent Events
Class of Stock [Line Items]
Dividends per common share (in dollars per share)	$ 0.37

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Cash paid for income taxes, net of refunds	$ 560	$ 176	$ 121
Cash paid for interest	150	145	209
Beginning restricted cash	7	17	3,569
Ending restricted cash	$ 4	$ 7	17
Non-cash purchase price consideration			$ 89

Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions, kr in Billions	Dec. 31, 2018 USD ($)	Dec. 31, 2018 SEK (kr)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)
Credit Agreement, Seventh Amendment
Loss Contingencies [Line Items]
Amount of letters of credit that can be issued under the Revolver	$ 50
Swedish Tax Agency
Loss Contingencies [Line Items]
Total assessment, including penalties and interest, not recorded	$ 400	kr 3.5
French Tax Authority
Loss Contingencies [Line Items]
Total assessment, including penalties and interest, not recorded			$ 652	€ 571

Commitments and Contingencies - Future Minimum Commitments (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Long-term Purchase Commitment [Line Items]
Unrecognized tax benefits, net of tax credits, noncurrent	$ 637
Estimated Transition Tax net payments, recorded liability		$ 467
Transition tax liability	198
Total Contractual Obligations
Long-term Purchase Commitment [Line Items]
2019	225
2020	180
2021	790
2022	511
2023	98
Thereafter	2,267
Total	4,071
Facility and Equipment Leases
Long-term Purchase Commitment [Line Items]
2019	80
2020	70
2021	53
2022	45
2023	38
Thereafter	60
Total	346
Developer and Intellectual Properties
Long-term Purchase Commitment [Line Items]
2019	24
2020	3
2021	1
2022	0
2023	0
Thereafter	0
Total	28
Marketing
Long-term Purchase Commitment [Line Items]
2019	35
2020	21
2021	0
2022	0
2023	0
Thereafter	0
Total	56
Long-term debt obligations
Long-term Purchase Commitment [Line Items]
2019	86
2020	86
2021	736
2022	466
2023	60
Thereafter	2,207
Total	$ 3,641

Acquisitions - Narrative (Details) - USD ($) shares in Millions, $ in Millions	Feb. 23, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 9,762	$ 9,763	$ 9,768
Acquisition-related Costs
Business Acquisition [Line Items]
Acquisition costs				74
King
Business Acquisition [Line Items]
Aggregate purchase price	$ 5,800
Cash paid to acquire business	3,600
Cash paid to acquire business from debt financing	2,200
Goodwill	2,675
Goodwill expected to be deductible for tax purposes	$ 464
King \| Stock Option
Business Acquisition [Line Items]
Equity options and awards issued in acquisition (in shares)	10
King \| Equity Award
Business Acquisition [Line Items]
Equity options and awards issued in acquisition (in shares)	3
Fair value of King’s existing vested and unvested stock options and awards assumed	$ 76
King \| Deferred Cash Award
Business Acquisition [Line Items]
Fair value of King’s existing vested and unvested stock options and awards assumed	$ 22
King \| General and administrative
Business Acquisition [Line Items]
Acquisition costs				$ 38

Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 23, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 9,762	$ 9,763	$ 9,768
Customer base
Business Acquisition [Line Items]
Estimated useful life		2 years	2 years
Minimum \| Internally-developed franchises
Business Acquisition [Line Items]
Estimated useful life		3 years	3 years
Minimum \| Developed software
Business Acquisition [Line Items]
Estimated useful life		2 years	2 years
Minimum \| Acquired trade names
Business Acquisition [Line Items]
Estimated useful life		7 years	7 years
Maximum \| Internally-developed franchises
Business Acquisition [Line Items]
Estimated useful life		11 years	11 years
Maximum \| Developed software
Business Acquisition [Line Items]
Estimated useful life		5 years	5 years
Maximum \| Acquired trade names
Business Acquisition [Line Items]
Estimated useful life		10 years	10 years
King
Business Acquisition [Line Items]
Cash and cash equivalents	$ 1,151
Accounts receivable	162
Other current assets	72
Property and equipment	57
Deferred income tax assets, net	27
Other assets	47
Accounts payable	(9)
Accrued expense and other liabilities	(272)
Other liabilities	(110)
Deferred income tax liabilities, net	(52)
Goodwill	2,675
Total purchase price	5,828
King \| Internally-developed franchises
Business Acquisition [Line Items]
Intangible assets	845
King \| Customer base
Business Acquisition [Line Items]
Intangible assets	$ 609
Estimated useful life	2 years
King \| Developed software
Business Acquisition [Line Items]
Intangible assets	$ 580
King \| Acquired trade names
Business Acquisition [Line Items]
Intangible assets	$ 46
Estimated useful life	7 years
King \| Minimum
Business Acquisition [Line Items]
Property and equipment, estimated useful life	2 years
King \| Minimum \| Internally-developed franchises
Business Acquisition [Line Items]
Estimated useful life	3 years
King \| Minimum \| Developed software
Business Acquisition [Line Items]
Estimated useful life	3 years
King \| Maximum
Business Acquisition [Line Items]
Property and equipment, estimated useful life	7 years
King \| Maximum \| Internally-developed franchises
Business Acquisition [Line Items]
Estimated useful life	5 years
King \| Maximum \| Developed software
Business Acquisition [Line Items]
Estimated useful life	4 years

Acquisitions - Pro Forma Information (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares
King
Business Acquisition [Line Items]
Net revenues	$ 1,523
Net loss	(230)
Net revenues	6,888
Net income	$ 1,005
Basic earnings per common share (in dollars per share) \| $ / shares	$ 1.35
Diluted earnings per common share (in dollars per share) \| $ / shares	$ 1.32
Acquisition-related Costs
Business Acquisition [Line Items]
Non-recurring acquisition related costs	$ 74

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Net revenues	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 2,043	$ 1,618	$ 1,631	$ 1,726	$ 7,500	$ 7,017	$ 6,608
Cost of revenues	832	513	510	662	803	552	561	585
Operating income	694	265	434	595	221	257	339	493	1,988	1,309	1,412
Net income	$ 650	$ 260	$ 402	$ 500	$ (584)	$ 188	$ 243	$ 426	$ 1,813	$ 273	$ 966
Basic earnings per common share (in dollars per share)	$ 0.85	$ 0.34	$ 0.53	$ 0.66	$ (0.77)	$ 0.25	$ 0.32	$ 0.57	$ 2.38	$ 0.36	$ 1.30
Diluted earnings per common share (in dollars per share)	$ 0.84	$ 0.34	$ 0.52	$ 0.65	$ (0.77)	$ 0.25	$ 0.32	$ 0.56	$ 2.35	$ 0.36	$ 1.28

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Subsequent Events (Details) - Subsequent Events $ in Millions	Feb. 12, 2019 USD ($)
Subsequent Event [Line Items]
Pre-tax restructuring charges	$ 150
Severance
Subsequent Event [Line Items]
Percentage of aggregate restructuring charge	65.00%
Facility costs
Subsequent Event [Line Items]
Percentage of aggregate restructuring charge	20.00%
Asset write-downs and other costs
Subsequent Event [Line Items]
Percentage of aggregate restructuring charge	15.00%

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allowances for sales returns and price protection and other allowances
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Valuation and qualifying accounts, balance at the beginning of period	$ 274	$ 257	$ 339
Valuation and qualifying accounts, additions	24	83	119
Valuation and qualifying accounts, deductions	(112)	(66)	(201)
Valuation and qualifying accounts, balance at the end of period	186	274	257
Allowance for doubtful accounts
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Valuation and qualifying accounts, balance at the beginning of period	5	4	4
Valuation and qualifying accounts, additions	0	1	2
Valuation and qualifying accounts, deductions	(1)	0	(2)
Valuation and qualifying accounts, balance at the end of period	$ 4	$ 5	$ 4

Label	Element	Value
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

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 4,121	$ 4,499
Fair value measurements using quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	4,107	4,499
Fair value measurements using significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	14	0
Fair value measurements using significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 and Nonrecurring Basis [Line Items]
Total assets at fair value	3,925	4,405
Cash and cash equivalents \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	32	39
Cash and cash equivalents \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	3,925	4,405
Cash and cash equivalents \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	32	39
Cash and cash equivalents \| Fair value measurements using significant other observable inputs (Level 2) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Fair value measurements using significant unobservable inputs (Level 3) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 and Nonrecurring Basis [Line Items]
Total assets at fair value	150	55
Other current assets \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	13
Other current assets \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	1
Other current assets \| Fair value measurements using 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 and Nonrecurring Basis [Line Items]
Total assets at fair value	150	55
Other current assets \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0
Other current assets \| Fair value measurements using 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 and Nonrecurring Basis [Line Items]
Total assets at fair value	0
Other current assets \| Fair value measurements using significant other observable inputs (Level 2) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	13
Other current assets \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	1
Other current assets \| Fair value measurements using significant unobservable inputs (Level 3) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0
Other current assets \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0
Accrued expenses and other liabilities \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	(1)	(5)
Accrued expenses and other liabilities \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	0	0
Accrued expenses and other liabilities \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	(1)	(5)
Accrued expenses and other liabilities \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	$ 0	$ 0