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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2019	Oct. 31, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	1-15839
Entity Registrant Name	ACTIVISION BLIZZARD, INC.
Entity Central Index Key	0000718877
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4803544
Entity Address, Address Line One	3100 Ocean Park Boulevard
Entity Address, City or Town	Santa Monica,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90405
City Area Code	310
Local Phone Number	255-2000
Title of 12(b) Security	Common Stock, par value $0.000001 per share
Trading Symbol	ATVI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		768,260,070

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 4,939	$ 4,225
Accounts receivable, net of allowances of $81 and $190, at September 30, 2019 and December 31, 2018, respectively	386	1,035
Inventories, net	102	43
Software development	240	264
Other current assets	345	539
Total current assets	6,012	6,106
Software development	109	65
Property and equipment, net	249	282
Deferred income taxes, net	357	458
Other assets	731	482
Intangible assets, net	583	735
Goodwill	9,764	9,762
Total assets	17,805	17,890
Current liabilities:
Accounts payable	274	253
Deferred revenues	695	1,493
Accrued expenses and other liabilities	782	896
Total current liabilities	1,751	2,642
Long-term debt, net	2,674	2,671
Deferred income taxes, net	23	18
Other liabilities	1,122	1,167
Total liabilities	5,570	6,498
Commitments and contingencies (Note 19)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,196,802,874 and 1,192,093,991 shares issued at September 30, 2019 and December 31, 2018, respectively	0	0
Additional paid-in capital	11,116	10,963
Less: Treasury stock, at cost, 428,676,471 shares at September 30, 2019 and December 31, 2018	(5,563)	(5,563)
Retained earnings	7,289	6,593
Accumulated other comprehensive loss	(607)	(601)
Total shareholders’ equity	12,235	11,392
Total liabilities and shareholders’ equity	$ 17,805	$ 17,890

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable allowances	$ 81	$ 190
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized (in shares)	2,400,000,000	2,400,000,000
Common stock, shares issued (in shares)	1,196,802,874	1,192,093,991
Treasury stock, shares (in shares)	428,676,471	428,676,471

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Net revenues
Net revenues	$ 1,282	$ 1,512	$ 4,503	$ 5,119
Cost of revenues—product sales and subscription, licensing, and other revenues:
Product development	210	263	702	776
Sales and marketing	182	263	580	741
General and administrative	177	208	527	623
Restructuring and related costs	24	0	104	0
Total costs and expenses	1,035	1,247	3,350	3,825
Operating income	247	265	1,153	1,294
Interest and other expense (income), net (Note 15)	(2)	13	(33)	67
Loss on extinguishment of debt	0	40	0	40
Income before income tax expense (benefit)	249	212	1,186	1,187
Income tax expense (benefit)	45	(48)	208	25
Net income	$ 204	$ 260	$ 978	$ 1,162
Earnings per common share
Basic (in dollars per share)	$ 0.27	$ 0.34	$ 1.28	$ 1.53
Diluted (in dollars per share)	$ 0.26	$ 0.34	$ 1.27	$ 1.51
Weighted-average number of shares outstanding
Basic (in shares)	767	763	766	761
Diluted (in shares)	771	771	770	771
Product sales
Net revenues
Net revenues	$ 260	$ 263	$ 1,276	$ 1,447
Product costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	137	127	388	416
Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	9	20	171	214
Subscription, licensing, and other revenues
Net revenues
Net revenues	1,022	1,249	3,227	3,672
Game operations and distribution costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	246	257	714	777
Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	$ 50	$ 109	$ 164	$ 278

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 204	$ 260	$ 978	$ 1,162
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	(6)	3	(5)	(7)
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	10	(11)	4	25
Unrealized gains (losses) on investments, net of tax	(3)	0	(5)	4
Total other comprehensive income (loss)	1	(8)	(6)	22
Comprehensive income	$ 205	$ 252	$ 972	$ 1,184

- Definition

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

+ References + Details

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

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Cash flows from operating activities:

Net income

$ 978

$ 1,162

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

Deferred income taxes

100

175

Depreciation and amortization

246

385

Non-cash operating lease cost

Amortization of capitalized software development costs and intellectual property licenses

^[1]

163

238

Loss on extinguishment of debt

Share-based compensation expense

^[2]

127

164

Unrealized gain on equity investment (Note 8)

(38)

Other

Changes in operating assets and liabilities:

Accounts receivable, net

635

290

Inventories

(65)

(127)

Software development and intellectual property licenses

(186)

(305)

Other assets

(15)

Deferred revenues

(809)

(710)

Accounts payable

(14)

Accrued expenses and other liabilities

(373)

(512)

Net cash provided by operating activities

913

791

Cash flows from investing activities:

Proceeds from maturities of available-for-sale investments

153

Purchases of available-for-sale investments

(59)

Capital expenditures

(79)

(97)

Other investing activities

(4)

Net cash provided by (used in) investing activities

(160)

Cash flows from financing activities:

Proceeds from issuance of common stock to employees

(55)

(85)

Dividends paid

(283)

(259)

Repayment of long-term debt

(1,740)

Premium payment for early redemption of note

(25)

Other financing activities

(2)

Net cash used in financing activities

(251)

(2,020)

Effect of foreign exchange rate changes on cash and cash equivalents

(24)

(15)

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

717

(1,404)

Cash and cash equivalents and restricted cash at beginning of period

4,229

4,720

Cash and cash equivalents and restricted cash at end of period

$ 4,946

$ 3,316

[1]	Excludes deferral and amortization of share-based compensation expense.
[2]	Includes the net effects of capitalization, deferral, and amortization of share-based compensation expense.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2017	$ 9,462	$ 0	$ (5,563)	$ 10,747	$ 4,916	$ (638)
Balance (in shares) at Dec. 31, 2017		1,186	429
Components of comprehensive income:
Net income	500				500
Other comprehensive income (loss)	(14)					(14)
Issuance of common stock pursuant to employee stock options	47			47
Issuance of common stock pursuant to employee stock options (in shares)		3
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		2
Restricted stock surrendered for employees’ tax liability	(64)			(64)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	56			56
Dividends ($0.37 and $0.34 per common share)	(259)				(259)
Ending balance at Mar. 31, 2018	9,819	$ 0	$ (5,563)	10,786	5,245	(649)
Balance (in shares) at Mar. 31, 2018		1,190	429
Beginning balance at Dec. 31, 2017	9,462	$ 0	$ (5,563)	10,747	4,916	(638)
Balance (in shares) at Dec. 31, 2017		1,186	429
Components of comprehensive income:
Net income	1,162
Other comprehensive income (loss)	22
Ending balance at Sep. 30, 2018	10,659	$ 0	$ (5,563)	10,928	5,907	(613)
Balance (in shares) at Sep. 30, 2018		1,192	429
Beginning balance at Mar. 31, 2018	9,819	$ 0	$ (5,563)	10,786	5,245	(649)
Balance (in shares) at Mar. 31, 2018		1,190	429
Components of comprehensive income:
Net income	402				402
Other comprehensive income (loss)	44					44
Issuance of common stock pursuant to employee stock options	30			30
Issuance of common stock pursuant to employee stock options (in shares)		1
Restricted stock surrendered for employees’ tax liability	(10)			(10)
Restricted stock surrendered for employees' tax liability (in shares)		0
Share-based compensation expense related to employee stock options and restricted stock units	61			61
Ending balance at Jun. 30, 2018	10,346	$ 0	$ (5,563)	10,867	5,647	(605)
Balance (in shares) at Jun. 30, 2018		1,191	429
Components of comprehensive income:
Net income	260				260
Other comprehensive income (loss)	(8)					(8)
Issuance of common stock pursuant to employee stock options	16			16
Issuance of common stock pursuant to employee stock options (in shares)		1
Restricted stock surrendered for employees’ tax liability	(12)			(12)
Restricted stock surrendered for employees' tax liability (in shares)		0
Share-based compensation expense related to employee stock options and restricted stock units	57			57
Ending balance at Sep. 30, 2018	10,659	$ 0	$ (5,563)	10,928	5,907	(613)
Balance (in shares) at Sep. 30, 2018		1,192	429
Beginning balance at Dec. 31, 2018	11,392	$ 0	$ (5,563)	10,963	6,593	(601)
Balance (in shares) at Dec. 31, 2018		1,192	429
Components of comprehensive income:
Net income	447				447
Other comprehensive income (loss)	(1)					(1)
Issuance of common stock pursuant to employee stock options	30			30
Issuance of common stock pursuant to employee stock options (in shares)		2
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		2
Restricted stock surrendered for employees’ tax liability	(45)			(45)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	56			56
Dividends ($0.37 and $0.34 per common share)	(283)				(283)
Ending balance at Mar. 31, 2019	11,596	$ 0	$ (5,563)	11,004	6,757	(602)
Balance (in shares) at Mar. 31, 2019		1,195	429
Beginning balance at Dec. 31, 2018	11,392	$ 0	$ (5,563)	10,963	6,593	(601)
Balance (in shares) at Dec. 31, 2018		1,192	429
Components of comprehensive income:
Net income	978
Other comprehensive income (loss)	(6)
Ending balance at Sep. 30, 2019	12,235	$ 0	$ (5,563)	11,116	7,289	(607)
Balance (in shares) at Sep. 30, 2019		1,197	429
Beginning balance at Mar. 31, 2019	11,596	$ 0	$ (5,563)	11,004	6,757	(602)
Balance (in shares) at Mar. 31, 2019		1,195	429
Components of comprehensive income:
Net income	328				328
Other comprehensive income (loss)	(6)					(6)
Issuance of common stock pursuant to employee stock options	28			28
Issuance of common stock pursuant to employee stock options (in shares)		1
Restricted stock surrendered for employees’ tax liability	(4)			(4)
Restricted stock surrendered for employees' tax liability (in shares)		0
Share-based compensation expense related to employee stock options and restricted stock units	35			35
Ending balance at Jun. 30, 2019	11,977	$ 0	$ (5,563)	11,063	7,085	(608)
Balance (in shares) at Jun. 30, 2019		1,196	429
Components of comprehensive income:
Net income	204				204
Other comprehensive income (loss)	1					1
Issuance of common stock pursuant to employee stock options	29			29
Issuance of common stock pursuant to employee stock options (in shares)		1
Restricted stock surrendered for employees’ tax liability	(8)			(8)
Restricted stock surrendered for employees' tax liability (in shares)		0
Share-based compensation expense related to employee stock options and restricted stock units	32			32
Ending balance at Sep. 30, 2019	$ 12,235	$ 0	$ (5,563)	$ 11,116	$ 7,289	$ (607)
Balance (in shares) at Sep. 30, 2019		1,197	429

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares			3 Months Ended
	Feb. 12, 2019	Feb. 08, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.37	$ 0.34	$ 0.37	$ 0.34

Description of Business and Basis of Consolidation and Presentation

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Consolidation and Presentation

Activision Blizzard, Inc. is a leading global developer and publisher of interactive entertainment content and services. We develop and distribute content and services on video game consoles, personal computers (“PC”s), and mobile devices. We also operate esports leagues and events and create film and television content based on our intellectual property. The terms “Activision Blizzard,” the “Company,” “we,” “us,” and “our” are used to refer collectively to Activision Blizzard, Inc. and its subsidiaries.

The Company was originally incorporated in California in 1979 and was reincorporated in Delaware in December 1992. In connection with the 2008 business combination by and among the Company (then known as Activision, Inc.), Vivendi S.A., and Vivendi Games, Inc., then an indirect wholly-owned subsidiary of Vivendi S.A., we were renamed Activision Blizzard, Inc.

Our Segments

Based upon our organizational structure, we conduct our business through three reportable segments, as follows:

(i) Activision Publishing, Inc.

Activision Publishing, Inc. (“Activision”) is a leading global developer and publisher of interactive software products and entertainment content, particularly for the console platform. Activision primarily delivers content through retail and digital channels, including full-game and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision products. Activision develops, markets, and sells products primarily based on our internally developed intellectual properties, as well as some licensed properties. Activision’s key product franchise is Call of Duty^®, a first-person shooter for the console and PC platforms. Also, on October 1, 2019, in collaboration with Tencent, Activision released Call of Duty: Mobile for the mobile platform, including for Google Inc.’s (“Google”) Android and Apple Inc.’s (“Apple”) iOS.

In 2010, Activision entered into an exclusive relationship with Bungie, Inc. (“Bungie”) to publish games in the Destiny franchise. Effective December 31, 2018, Activision and Bungie mutually agreed to terminate their publishing relationship related to the Destiny franchise. As part of this termination, Activision agreed to transfer its publishing rights for the Destiny franchise to Bungie in exchange for cash and Bungie’s assumption of on-going customer obligations of Activision. Activision no longer has any material rights or obligations related to the Destiny franchise.

(ii) Blizzard Entertainment, Inc.

Blizzard Entertainment, Inc. (“Blizzard”) is a leading global developer and publisher of interactive software products and entertainment content, particularly for the PC platform. Blizzard primarily delivers content through retail and digital channels, including subscriptions, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Blizzard products. Blizzard also maintains a proprietary online gaming service, Blizzard Battle.net^®, which facilitates digital distribution of Blizzard content and selected Activision content, online social connectivity, and the creation of user-generated content. Blizzard also includes the activities of the Overwatch League^TM, the first major global professional esports league with city-based teams, and our Major League Gaming (“MLG”) business, which is responsible for various esports events and serves as a multi-platform network for Activision Blizzard esports content.

Blizzard’s key product franchises include: World of Warcraft^®, a subscription-based massive multi-player online role-playing game for the PC platform; StarCraft^®, a real-time strategy franchise for the PC platform; Diablo^®, an action role-playing franchise for the PC and console platforms; Hearthstone^®, an online collectible card franchise for the PC and mobile platforms; and Overwatch^®, a team-based first-person shooter for the PC and console platforms.

(iii) King Digital Entertainment

King Digital Entertainment (“King”) is a leading global developer and publisher of interactive entertainment content and services, primarily for the mobile platform, including for Google’s Android and Apple’s iOS. King also distributes its content and services on the PC platform, primarily via Facebook. King’s games are free to play; however, players can acquire in-game items, either with virtual currency or real currency, and we continue to focus on in-game advertising as a growing source of additional revenue.

King’s key product franchises, all of which are for the mobile and PC platforms, include: Candy Crush™, which features “match three” games; Farm Heroes™, which also features “match three” games; and Bubble Witch™, which features “bubble shooter” games.

Other

We also engage in other businesses that do not represent reportable segments, including:


•	the Activision Blizzard Studios (“Studios”) business, which is devoted to creating original film and television content based on our library of globally recognized intellectual properties, and which, in September 2018, released the third season of the animated TV series Skylanders™ Academy on Netflix; and


•	the Activision Blizzard Distribution (“Distribution”) business, which consists of operations in Europe that provide warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, our own publishing operations, and manufacturers of interactive entertainment hardware.

Basis of Consolidation and Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been condensed or omitted if they substantially duplicate the disclosures contained in our annual audited consolidated financial statements. Additionally, the year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018.

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. In the opinion of management, all adjustments considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP (consisting of normal recurring adjustments) have been included in the accompanying unaudited condensed consolidated financial statements. Actual results could differ from these estimates and assumptions.

The accompanying condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated.

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

During the three months ended March 31, 2019, we identified an error principally related to the initial recognition of global intangible low-taxed income of foreign subsidiaries income taxes which should have been recorded in the three months and year ended December 31, 2018. Income tax expense for the three months and year ended December 31, 2018 should have been reduced by $35 million. This amount is not material to the consolidated financial statements for the year ended December 31, 2018, and we will revise our 2018 consolidated financial statements to correct this matter in our Annual Report on Form 10-K for the year ending December 31, 2019. Our condensed consolidated balance sheet as of December 31, 2018, as presented in this Form 10-Q, has been revised to reflect the correction of this error.

Supplemental Cash Flow Information

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



	At September 30,
	2019		2018
Beginning restricted cash	$	4	$	7
Ending restricted cash	7		8

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Adoption of Accounting Standards Codification (“ASC”) 842: Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the accounting for leases. The new standard replaces all current U.S. GAAP guidance on this topic. The new standard, among other things, requires a lessee to classify a lease as either an operating or financing lease, and to recognize a lease liability and a right-of-use (“ROU”) asset for its leases. On January 1, 2019, we adopted the new lease accounting standard. As a result, we have updated our significant accounting policy disclosure to include our accounting policy for leases under the new standard. Refer to Note 3 for information about the impact of adoption on our condensed consolidated financial statements. Leases We determine if an arrangement is or contains a lease at contract inception. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the landlords of our leases. The operating lease ROU asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are depreciated on a straight-line basis over the estimated life of the asset, not to exceed the length of the lease, with interest expense associated with finance lease liabilities recorded using the effective interest method. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components. For our real estate, server and data center, and event production and broadcasting equipment leases, we elected the practical expedient to account for the lease and non-lease components as a single lease component. In all other lease arrangements, we account for lease and non-lease components separately. Additionally, for certain leases that have a group of leased assets with similar characteristics in size and composition, we may apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet. Finance lease ROU assets are presented in “Property and equipment, net” and finance lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet.

Recently Issued Accounting Pronouncements

9 Months Ended

Sep. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Leases

As noted in Note 2 above, we adopted the new lease accounting standard effective January 1, 2019. We elected to apply an optional adoption method, which uses the effective date as the initial date of application on transition with no retrospective adjustments to prior periods. Additionally, we elected to apply the package of transition practical expedients which permitted us to, among other things, (1) not reassess if existing contracts contained leases under the new lease accounting standard and (2) carry forward our historical lease classifications.

The impact from the adoption of the new lease accounting standard to our condensed consolidated balance sheet at January 1, 2019, was as follows (amounts in millions):



Condensed Consolidated Balance Sheet:	Balance at December 31, 2018		Adjustments due to adoption of new lease accounting standard			Balance at January 1, 2019
Assets
Other current assets	$	539	$	(8	)	$	531
Other assets	482		252			734
Liabilities
Accrued expenses and other liabilities	$	896	$	54		$	950
Other liabilities	1,167		190			1,357

The adoption of this standard did not have an impact on our condensed consolidated statement of operations or condensed consolidated statements of cash flows.

Recent Accounting Pronouncements Not Yet Adopted

Goodwill

In January 2017, the FASB issued new guidance that eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, that entity will be required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit, as determined in Step 1 from the goodwill impairment test, with its carrying amount and recognize an impairment charge, if any, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019, and should be applied prospectively. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. We do not currently expect this new accounting guidance to have an impact on our financial statements upon adoption.

Cloud Computing Arrangements

In August 2018, the FASB issued new guidance related to a customer’s accounting for implementation costs incurred in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract. The new guidance requires customers to capitalize implementation costs for these arrangements by applying the same criteria that are utilized for existing internal-use software guidance. The capitalized costs are required to be amortized over the associated term of the arrangement, generally on a straight-line basis, with amortization of these costs presented in the same financial statement line item as other costs associated with the arrangement. The new standard is effective for fiscal years beginning after December 15, 2019, and can be applied retrospectively or prospectively. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements.

Financial Instruments - Credit Losses

In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The update replaces the existing incurred loss impairment model with an expected loss model which requires the use of historical and forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will generally result in earlier recognition of credit losses. The new standard is effective for fiscal years beginning after December 15, 2019, and will be applied on a modified retrospective basis, with the cumulative effect of adoption recorded as an adjustment to retained earnings. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements, however, our preliminary conclusion is that the new guidance will not have a material impact on our financial statements and related disclosures.

Inventories, Net

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Inventories, Net

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



	At September 30, 2019		At December 31, 2018
Finished goods	$	82	$	40
Purchased parts and components	20		3
Inventories, net	$	102	$	43

At September 30, 2019 and December 31, 2018, inventory reserves were $13 million and $22 million, respectively.

Software Development and Intellectual Property Licenses

9 Months Ended

Sep. 30, 2019

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 September 30, 2019		At December 31, 2018
Internally-developed software costs	$	325	$	291
Payments made to third-party software developers	24		38
Total software development costs	$	349	$	329

As of both September 30, 2019 and December 31, 2018, capitalized intellectual property licenses were not material.

Amortization of capitalized software development costs and intellectual property licenses was as follows (amounts in millions):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Amortization of capitalized software development costs and intellectual property licenses	$	11	$	33	$	175	$	242

Intangible Assets, Net

9 Months Ended

Sep. 30, 2019

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets, Net

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



	At September 30, 2019
	Estimated useful lives			Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,086	)	$	68
Developed software	2	-	5 years	601		(548		)	53
Trade names	7	-	10 years	54		(28		)	26
Other	1	-	15 years	19		(16		)	3
Total definite-lived intangible assets (1)				$	1,828	$	(1,678	)	$	150

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	583


(1)	Beginning with the first quarter of 2019, the balances of the customer base intangible assets have been removed as such amounts were fully amortized in the prior year.



	At December 31, 2018
	Estimated useful lives			Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,032	)	$	122
Developed software	2	-	5 years	601		(456		)	145
Customer base	2 years			617		(617		)	—
Trade names	7	-	10 years	54		(23		)	31
Other	1	-	15 years	19		(15		)	4
Total definite-lived intangible assets				$	2,445	$	(2,143	)	$	302

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	735

Amortization expense of our intangible assets was $50 million and $152 million for the three and nine months ended September 30, 2019, respectively. Amortization expense of our intangible assets was $84 million and $280 million for the three and nine months ended September 30, 2018, respectively.

At September 30, 2019, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):



For the years ending December 31,
2019 (remaining three months)	$	52
2020	74
2021	12
2022	7
2023	2
Thereafter	3
Total	$	150

Goodwill

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

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



	Activision		Blizzard		King		Total
Balance at December 31, 2018	$	6,897	$	190	$	2,675	$	9,762
Other	1		—		1		2
Balance at September 30, 2019	$	6,898	$	190	$	2,676	$	9,764

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

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 September 30, 2019 Using
	As of September 30, 2019			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance Sheet Classification
Financial Assets:
Recurring fair value measurements:
Money market funds	$	4,616		$	4,616	$	—		$	—	Cash and cash equivalents
Foreign government treasury bills	36			36		—			—		Cash and cash equivalents
Foreign currency forward contracts designated as hedges	23			—		23			—		Other current assets
Foreign currency forward contracts not designated as hedges	8			—		8			—		Other current assets
Total recurring fair value measurements	$	4,683		$	4,652	$	31		$	—

Financial Liabilities:
Foreign currency forward contracts not designated as hedges	$	(4	)	$	—	$	(4	)	$	—	Accrued expenses and other liabilities



				Fair Value Measurements at December 31, 2018 Using
	As of December 31, 2018			Quoted Prices in Active Markets for Identical Assets (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

Foreign Currency Forward Contracts

Foreign Currency Forward Contracts Designated as Hedges (“Cash Flow Hedges”)

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



	As of September 30, 2019				As of December 31, 2018
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell Euro	$	310	$	23	$	723	$	12

At September 30, 2019, our Cash Flow Hedges have remaining maturities of three months or less. Additionally, $2 million of net realized but unrecognized gains are recorded within “Accumulated other comprehensive income (loss)” at September 30, 2019 for Cash Flow Hedges that had settled but were deferred and will be amortized into earnings, along with the associated hedged revenues. Such amounts will be reclassified into earnings within the next 12 months.

The amount of pre-tax net realized gains (losses) associated with our Cash Flow Hedges that were reclassified out of “Accumulated other comprehensive income (loss)” and into earnings was as follows (amounts in millions):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,					Statement of Operations Classification
	2019		2018		2019		2018			Statement of Operations Classification
Cash Flow Hedges	$	7	$	3	$	24	$	(11	)	Net revenues

Foreign Currency Forward Contracts Not Designated as Hedges

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



	As of September 30, 2019					As of December 31, 2018
	Notional amount		Fair value gain (loss)			Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell EUR	$	81	$	5		$	—	$	—
Buy EUR, Sell USD	79		(3		)	—		—
Buy USD, Sell SEK	46		2			—		—
Buy SEK, Sell USD	45		(1		)	—		—
Buy USD, Sell GBP	13		1			55		1
Buy GBP, Sell USD	13		—			—		—

For the three and nine months ended September 30, 2019 and 2018, pre-tax net gains (losses) associated with these forward contracts were recorded in “General and administrative expenses” and were not material.

Fair Value Measurements on a Non-Recurring Basis

We measure the fair value of certain assets on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

During the three months ended June 30, 2019, we recorded an upward adjustment of $38 million to an investment in equity securities, which has been historically recorded at cost, based on an observable and orderly transaction in the common stock of the investee. We recognized a corresponding unrealized gain within “Interest and other expense (income), net” in our condensed consolidated statement of operations. As of September 30, 2019, the carrying value of the investment is $42 million and is recorded in “Other assets” on our condensed consolidated balance sheet. We classify this investment as Level 3 in the fair value hierarchy as we estimated the value based on valuation methods using the observable transaction price in a market with limited activity.

For the three and nine months ended September 30, 2019 and 2018, there were no impairment charges related to assets that are measured on a non-recurring basis.

- 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	9 Months Ended
Deferred revenues	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Deferred revenues	Deferred revenues We record deferred revenues when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The opening balance of deferred revenues as of January 1, 2019 and the ending balance as of September 30, 2019, were $1.6 billion and $0.8 billion, respectively, including our current and non-current balances. For the nine months ended September 30, 2019, the additions to our deferred revenues balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenues balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the three and nine months ended September 30, 2019, $0.1 billion and $1.4 billion of revenues, respectively, were recognized that were included in the deferred revenues balance at December 31, 2018. During the three and nine months ended September 30, 2018, $0.1 billion and $1.6 billion of revenues, respectively, were recognized that were included in the deferred revenues balance at January 1, 2018, as adjusted for the adoption of the new revenue standard in the prior year. As of September 30, 2019, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $2.5 billion, which includes our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.4 billion over the next 12 months, $0.4 billion in the subsequent 12-month period, and the remainder thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee.

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Our lease arrangements are primarily for: (1) corporate, administrative, and development studio offices; (2) data centers and server equipment; and (3) live event production equipment. Our existing leases have remaining lease terms ranging from one year to 10 years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one year to five years for each option. The exercise of lease renewal options is generally at our sole discretion. Additionally, the majority of our leases are classified as operating leases; our financing leases are not material.

Components of our lease costs are as follows (amounts in millions):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating leases
Operating lease costs	$	19	$	58
Variable lease costs	6		16

Supplemental information related to our operating leases is as follows (amounts in millions):



	Nine Months Ended September 30, 2019
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	61
ROU assets obtained in exchange for new lease obligations	55

	At September 30, 2019
Weighted Average Lease terms and discount rates
Remaining lease term	5.15 years
Discount rate	4.09		%

Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at September 30, 2019, are as follows (amounts in millions):



For the years ending December 31,
2019 (remaining three months)	$	14
2020	74
2021	56
2022	48
2023	42
Thereafter	74
Total future lease payments	$	308
Less imputed interest	(32		)
Total lease liabilities	$	276

As of September 30, 2019, we have entered into facility leases that have not yet commenced with future lease payments of approximately $57 million. These leases are expected to commence within the next 12 months and will have lease terms ranging from two years to five years.

Operating lease ROU assets and liabilities recorded on our condensed consolidated balance sheet as of September 30, 2019, were as follows (amounts in millions):



	At September 30, 2019		Balance Sheet Classification
ROU assets	$	238	Other assets

Current lease liabilities	$	61	Accrued expenses and other current liabilities
Non-current lease liabilities	215		Other liabilities
	$	276	Total lease liabilities

Future minimum lease payments as of December 31, 2018, prior to our adoption of the new lease accounting standard, were as follows:



For the years ending December 31,
2019	$	80
2020	70
2021	53
2022	45
2023	38
Thereafter	60
Total	$	346

Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Debt

Credit Facilities

As of September 30, 2019 and December 31, 2018, we had $1.5 billion available under a revolving credit facility (the “Revolver”) pursuant to a credit agreement entered into on October 11, 2013 (as amended thereafter and from time to time, the “Credit Agreement”). To date, we have not drawn on the Revolver, and we were in compliance with the terms of the Credit Agreement as of September 30, 2019.

Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 2018 for further details regarding the Credit Agreement, its key terms, and previous amendments made to it.

Unsecured Senior Notes

At September 30, 2019 and December 31, 2018, we had the following unsecured senior notes outstanding:


•	$650 million of 2.3% unsecured senior notes due September 2021 (the “2021 Notes”);


•	$400 million of 2.6% unsecured senior notes due June 2022 (the “2022 Notes”);


•	$850 million of 3.4% unsecured senior notes due September 2026 (the “2026 Notes”);


•	$400 million of 3.4% unsecured senior notes due June 2027 (the “2027 Notes”); and


•	$400 million of 4.5% unsecured senior notes due June 2047 (the “2047 Notes”, and together with the 2021 Notes, the 2022 Notes, the 2026 Notes, and the 2027 Notes, the “Notes”).

The Notes are general senior obligations of the Company and rank pari passu in right of payment to all of the Company’s existing and future senior indebtedness, including the Revolver described above. The Notes are not secured and are effectively junior to any of the Company’s existing and future indebtedness that is secured to the extent of the value of the collateral securing such indebtedness. We were in compliance with the terms of the Notes as of September 30, 2019.

Interest is payable semi-annually in arrears on March 15 and September 15 of each year for the 2021 Notes and the 2026 Notes, and payable semi-annually in arrears on June 15 and December 15 of each year for the 2022 Notes, the 2027 Notes, and the 2047 Notes. Accrued interest payable is recorded within “Accrued expenses and other liabilities” in our condensed consolidated balance sheets. As of September 30, 2019 and December 31, 2018, we had accrued interest payable of $14 million and $15 million, respectively, related to the Notes.

Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 2018 for further details regarding key terms under our indentures that govern the Notes.

Interest Expense and Financing Costs

Fees and discounts associated with the issuance of our debt instruments are recorded as debt discount, which reduces their respective carrying values, and are amortized over their respective terms. Amortization expense is recorded within “Interest and other expense (income), net” in our condensed consolidated statement of operations.

For the three and nine months ended September 30, 2019, interest expense was $21 million and $64 million, respectively, and amortization of the debt discount and deferred financing costs was $1 million and $3 million, respectively. For the three and nine months ended September 30, 2018, interest expense was $32 million and $113 million, respectively, and amortization of the debt discount and deferred financing costs was $1 million and $5 million, respectively.

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



	At September 30, 2019
	Gross Carrying Amount		Unamortized Discount and Deferred Financing Costs			Net Carrying Amount
2021 Notes	$	650	$	(2	)	$	648
2022 Notes	400		(2		)	398
2026 Notes	850		(8		)	842
2027 Notes	400		(5		)	395
2047 Notes	400		(9		)	391
Total long-term debt	$	2,700	$	(26	)	$	2,674



	At December 31, 2018
	Gross Carrying 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

As of September 30, 2019, the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years and thereafter are as follows (amounts in millions):



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

With the exception of the 2047 Notes, using Level 2 inputs (i.e., observable market prices in less-than-active markets) at September 30, 2019, the carrying values of the Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At September 30, 2019, based on Level 2 inputs, the fair value of the 2047 Notes was $454 million.

Using Level 2 inputs at December 31, 2018, the carrying values of the 2021 Notes and the 2022 Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At December 31, 2018, based on Level 2 inputs, the fair values of the 2026 Notes, the 2027 Notes, and the 2047 Notes were $800 million, $376 million, and $360 million, respectively.

Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2019

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 Nine Months Ended September 30, 2019
	Foreign currency translation adjustments			Unrealized gain (loss) on forward contracts			Unrealized gain (loss) on available-for-sale securities			Total
Balance at December 31, 2018	$	(629	)	$	23		$	5		$	(601	)
Other comprehensive income (loss) before reclassifications	(5		)	28			3			26
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(24		)	(8		)	(32		)
Balance at September 30, 2019	$	(634	)	$	27		$	—		$	(607	)



	For the Nine Months Ended September 30, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on forward contracts			Unrealized gain (loss) on available-for-sale securities		Total
Balance at December 31, 2017	$	(623	)	$	(15	)	$	—	$	(638	)
Cumulative impact from adoption of new revenue accounting standard	3			—			—		3
Other comprehensive income (loss) before reclassifications	(7		)	14			4		11
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			11			—		11
Balance at September 30, 2018	$	(627	)	$	10		$	4	$	(613	)

Operating Segments and Geographic Region

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Operating Segments and Geographic Region

Currently, we have three reportable segments—Activision, Blizzard, and King. Our operating segments are consistent with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense; amortization of intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, expenses, and accruals) related to acquisitions, associated integration activities, and financings; certain restructuring and related costs; and certain other non-cash charges. The CODM does not review any information regarding total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto.

Our operating segments are also consistent with our internal organizational structure, the way we assess operating performance and allocate resources, and the availability of separate financial information. We do not aggregate operating segments.

Information on reportable segment net revenues and operating income for the three months ended September 30, 2019 and 2018, are presented below (amounts in millions):



	Three Months Ended September 30, 2019
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	209	$	392	$	500	$	1,101
Intersegment net revenues (1)	—		2		—		2
Segment net revenues	$	209	$	394	$	500	$	1,103

Segment operating income	$	26	$	74	$	194	$	294

	Three Months Ended September 30, 2018
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	397	$	627	$	506	$	1,530
Intersegment net revenues (1)	—		8		—		8
Segment net revenues	$	397	$	635	$	506	$	1,538

Segment operating income	$	112	$	189	$	184	$	485

Information on reportable segment net revenues and operating income for the nine months ended September 30, 2019 and 2018, are presented below (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	794	$	1,113	$	1,527	$	3,434
Intersegment net revenues (1)	—		9		—		9
Segment net revenues	$	794	$	1,122	$	1,527	$	3,443

Segment operating income	$	153	$	204	$	543	$	900

	Nine Months Ended September 30, 2018
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	1,047	$	1,592	$	1,542	$	4,181
Intersegment net revenues (1)	—		14		—		14
Segment net revenues	$	1,047	$	1,606	$	1,542	$	4,195

Segment operating income	$	288	$	444	$	543	$	1,275


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

Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Reconciliation to consolidated net revenues:
Segment net revenues	$	1,103		$	1,538		$	3,443		$	4,195
Revenues from non-reportable segments (1)	113			128			245			246
Net effect from recognition (deferral) of deferred net revenues (2)	68			(146		)	824			692
Elimination of intersegment revenues (3)	(2		)	(8		)	(9		)	(14		)
Consolidated net revenues	$	1,282		$	1,512		$	4,503		$	5,119

Reconciliation to consolidated income before income tax expense:
Segment operating income	$	294		$	485		$	900		$	1,275
Operating income (loss) from non-reportable segments (1)	5			7			10			(4		)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)	53			(89		)	629			468
Share-based compensation expense	(27		)	(55		)	(127		)	(166		)
Amortization of intangible assets	(50		)	(83		)	(151		)	(279		)
Restructuring and related costs (4)	(28		)	—			(108		)	—
Consolidated operating income	247			265			1,153			1,294
Interest and other expense (income), net	(2		)	13			(33		)	67
Loss on extinguishment of debt	—			40			—			40
Consolidated income before income tax expense	$	249		$	212		$	1,186		$	1,187


(1)	Includes other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes unallocated corporate income and expenses.


(2)	Reflects the net effect from recognition (deferral) of deferred net revenues, along with related cost of revenues, on certain of our online-enabled products.


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


(4)	Reflects restructuring initiatives, primarily severance and other restructuring-related costs.

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the three months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Three Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	179		$	335		$	502		$	—	$	(2	)	$	1,014
Retail channels	73			20			—			—		—			93
Other (2)	—			62			—			113		—			175
Total consolidated net revenues	$	252		$	417		$	502		$	113	$	(2	)	$	1,282

Change in deferred revenues:
Digital online channels (1)	$	(16	)	$	(21	)	$	(2	)	$	—	$	—		$	(39	)
Retail channels	(27		)	(2		)	—			—		—			(29		)
Other (2)	—			—			—			—		—			—
Total change in deferred revenues	$	(43	)	$	(23	)	$	(2	)	$	—	$	—		$	(68	)

Segment net revenues:
Digital online channels (1)	$	163		$	314		$	500		$	—	$	(2	)	$	975
Retail channels	46			18			—			—		—			64
Other (2)	—			62			—			113		—			175
Total segment net revenues	$	209		$	394		$	500		$	113	$	(2	)	$	1,214



	Three Months Ended September 30, 2018
	Activision			Blizzard			King		Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	299		$	480		$	505	$	—	$	(8	)	$	1,276
Retail channels	53			23			—		—		—			76
Other (2)	—			35			—		125		—			160
Total consolidated net revenues	$	352		$	538		$	505	$	125	$	(8	)	$	1,512

Change in deferred revenues:
Digital online channels (1)	$	57		$	101		$	1	$	—	$	—		$	159
Retail channels	(12		)	(2		)	—		—		—			(14		)
Other (2)	—			(2		)	—		3		—			1
Total change in deferred revenues	$	45		$	97		$	1	$	3	$	—		$	146

Segment net revenues:
Digital online channels (1)	$	356		$	581		$	506	$	—	$	(8	)	$	1,435
Retail channels	41			21			—		—		—			62
Other (2)	—			33			—		128		—			161
Total segment net revenues	$	397		$	635		$	506	$	128	$	(8	)	$	1,658

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the nine months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision			Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	894		$	1,081		$	1,527	$	—		$	(9	)	$	3,493
Retail channels	548			51			—		—			—			599
Other (2)	—			157			—		254			—			411
Total consolidated net revenues	$	1,442		$	1,289		$	1,527	$	254		$	(9	)	$	4,503

Change in deferred revenues:
Digital online channels (1)	$	(285	)	$	(159	)	$	—	$	—		$	—		$	(444	)
Retail channels	(363		)	(10		)	—		—			—			(373		)
Other (2)	—			2			—		(9		)	—			(7		)
Total change in deferred revenues	$	(648	)	$	(167	)	$	—	$	(9	)	$	—		$	(824	)

Segment net revenues:
Digital online channels (1)	$	609		$	922		$	1,527	$	—		$	(9	)	$	3,049
Retail channels	185			41			—		—			—			226
Other (2)	—			159			—		245			—			404
Total segment net revenues	$	794		$	1,122		$	1,527	$	245		$	(9	)	$	3,679



	Nine Months Ended September 30, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,110		$	1,355		$	1,547		$	—	$	(14	)	$	3,998
Retail channels	707			57			—			—		—			764
Other (2)	—			124			—			233		—			357
Total consolidated net revenues	$	1,817		$	1,536		$	1,547		$	233	$	(14	)	$	5,119

Change in deferred revenues:
Digital online channels (1)	$	(234	)	$	79		$	(5	)	$	—	$	—		$	(160	)
Retail channels	(536		)	(10		)	—			—		—			(546		)
Other (2)	—			1			—			13		—			14
Total change in deferred revenues	$	(770	)	$	70		$	(5	)	$	13	$	—		$	(692	)

Segment net revenues:
Digital online channels (1)	$	876		$	1,434		$	1,542		$	—	$	(14	)	$	3,838
Retail channels	171			47			—			—		—			218
Other (2)	—			125			—			246		—			371
Total segment net revenues	$	1,047		$	1,606		$	1,542		$	246	$	(14	)	$	4,427


(1)	Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties.


(2)	Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League.


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

Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Three Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	141		$	204		$	311		$	—	$	(1	)	$	655
EMEA (1)	79			124			137			113		(1		)	452
Asia Pacific	32			89			54			—		—			175
Total consolidated net revenues	$	252		$	417		$	502		$	113	$	(2	)	$	1,282

Change in deferred revenues:
Americas	$	(20	)	$	(11	)	$	(2	)	$	—	$	—		$	(33	)
EMEA (1)	(16		)	(10		)	—			—		—			(26		)
Asia Pacific	(7		)	(2		)	—			—		—			(9		)
Total change in deferred revenues	$	(43	)	$	(23	)	$	(2	)	$	—	$	—		$	(68	)

Segment net revenues:
Americas	$	121		$	193		$	309		$	—	$	(1	)	$	622
EMEA (1)	63			114			137			113		(1		)	426
Asia Pacific	25			87			54			—		—			166
Total segment net revenues	$	209		$	394		$	500		$	113	$	(2	)	$	1,214



	Three Months Ended September 30, 2018
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	214	$	242	$	309	$	13	$	(4	)	$	774
EMEA (1)	109		172		143		112		(2		)	534
Asia Pacific	29		124		53		—		(2		)	204
Total consolidated net revenues	$	352	$	538	$	505	$	125	$	(8	)	$	1,512

Change in deferred revenues:
Americas	$	33	$	43	$	—	$	—	$	—		$	76
EMEA (1)	8		48		1		3		—			60
Asia Pacific	4		6		—		—		—			10
Total change in deferred revenues	$	45	$	97	$	1	$	3	$	—		$	146

Segment net revenues:
Americas	$	247	$	285	$	309	$	13	$	(4	)	$	850
EMEA (1)	117		220		144		115		(2		)	594
Asia Pacific	33		130		53		—		(2		)	214
Total segment net revenues	$	397	$	635	$	506	$	128	$	(8	)	$	1,658

Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments			Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	852		$	613		$	946		$	—		$	(5	)	$	2,406
EMEA (1)	457			400			417			254			(3		)	1,525
Asia Pacific	133			276			164			—			(1		)	572
Total consolidated net revenues	$	1,442		$	1,289		$	1,527		$	254		$	(9	)	$	4,503

Change in deferred revenues:
Americas	$	(390	)	$	(80	)	$	1		$	—		$	—		$	(469	)
EMEA (1)	(205		)	(71		)	—			(9		)	—			(285		)
Asia Pacific	(53		)	(16		)	(1		)	—			—			(70		)
Total change in deferred revenues	$	(648	)	$	(167	)	$	—		$	(9	)	$	—		$	(824	)

Segment net revenues:
Americas	$	462		$	533		$	947		$	—		$	(5	)	$	1,937
EMEA (1)	252			329			417			245			(3		)	1,240
Asia Pacific	80			260			163			—			(1		)	502
Total segment net revenues	$	794		$	1,122		$	1,527		$	245		$	(9	)	$	3,679



	Nine Months Ended September 30, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	1,074		$	716		$	945		$	13	$	(8	)	$	2,740
EMEA (1)	613			497			448			220		(4		)	1,774
Asia Pacific	130			323			154			—		(2		)	605
Total consolidated net revenues	$	1,817		$	1,536		$	1,547		$	233	$	(14	)	$	5,119

Change in deferred revenues:
Americas	$	(439	)	$	43		$	(3	)	$	—	$	—		$	(399	)
EMEA (1)	(287		)	34			(2		)	13		—			(242		)
Asia Pacific	(44		)	(7		)	—			—		—			(51		)
Total change in deferred revenues	$	(770	)	$	70		$	(5	)	$	13	$	—		$	(692	)

Segment net revenues:
Americas	$	635		$	759		$	942		$	13	$	(8	)	$	2,341
EMEA (1)	326			531			446			233		(4		)	1,532
Asia Pacific	86			316			154			—		(2		)	554
Total segment net revenues	$	1,047		$	1,606		$	1,542		$	246	$	(14	)	$	4,427


(1)	“EMEA” consists of the Europe, Middle East, and Africa geographic regions.


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

The Company’s net revenues in the U.S. were 46% of consolidated net revenues for both the three months ended September 30, 2019 and 2018. The Company’s net revenues in the U.K. were 13% of consolidated net revenues for both the three months ended September 30, 2019 and 2018. No other country’s net revenues exceeded 10% of consolidated net revenues for either the three months ended September 30, 2019 or 2018.

The Company’s net revenues in the U.S. were 48% and 47% of consolidated net revenues for the nine months ended September 30, 2019 and 2018, respectively. The Company’s net revenues in the U.K. were 10% and 11% of consolidated net revenues for the nine months ended September 30, 2019 and 2018, respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for either the nine months ended September 30, 2019 or 2018.

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Three Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	214		$	27		$	—		$	—	$	—		$	241
PC	29			286			28			—		(2		)	341
Mobile and ancillary (1)	9			42			474			—		—			525
Other (2)	—			62			—			113		—			175
Total consolidated net revenues	$	252		$	417		$	502		$	113	$	(2	)	$	1,282

Change in deferred revenues:
Console	$	(36	)	$	(9	)	$	—		$	—	$	—		$	(45	)
PC	(7		)	(14		)	—			—		—			(21		)
Mobile and ancillary (1)	—			—			(2		)	—		—			(2		)
Other (2)	—			—			—			—		—			—
Total change in deferred revenues	$	(43	)	$	(23	)	$	(2	)	$	—	$	—		$	(68	)

Segment net revenues:
Console	$	178		$	18		$	—		$	—	$	—		$	196
PC	22			272			28			—		(2		)	320
Mobile and ancillary (1)	9			42			472			—		—			523
Other (2)	—			62			—			113		—			175
Total segment net revenues	$	209		$	394		$	500		$	113	$	(2	)	$	1,214



	Three Months Ended September 30, 2018
	Activision		Blizzard			King		Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	307	$	40		$	—	$	—	$	—		$	347
PC	40		414			36		—		(8		)	482
Mobile and ancillary (1)	5		49			469		—		—			523
Other (2)	—		35			—		125		—			160
Total consolidated net revenues	$	352	$	538		$	505	$	125	$	(8	)	$	1,512

Change in deferred revenues:
Console	$	29	$	(9	)	$	—	$	—	$	—		$	20
PC	16		101			—		—		—			117
Mobile and ancillary (1)	—		7			1		—		—			8
Other (2)	—		(2		)	—		3		—			1
Total change in deferred revenues	$	45	$	97		$	1	$	3	$	—		$	146

Segment net revenues:
Console	$	336	$	31		$	—	$	—	$	—		$	367
PC	56		515			36		—		(8		)	599
Mobile and ancillary (1)	5		56			470		—		—			531
Other (2)	—		33			—		128		—			161
Total segment net revenues	$	397	$	635		$	506	$	128	$	(8	)	$	1,658

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	1,222		$	102		$	—		$	—		$	—		$	1,324
PC	204			909			92			—			(9		)	1,196
Mobile and ancillary (1)	16			121			1,435			—			—			1,572
Other (2)	—			157			—			254			—			411
Total consolidated net revenues	$	1,442		$	1,289		$	1,527		$	254		$	(9	)	$	4,503

Change in deferred revenues:
Console	$	(563	)	$	(26	)	$	—		$	—		$	—		$	(589	)
PC	(84		)	(133		)	(1		)	—			—			(218		)
Mobile and ancillary (1)	(1		)	(10		)	1			—			—			(10		)
Other (2)	—			2			—			(9		)	—			(7		)
Total change in deferred revenues	$	(648	)	$	(167	)	$	—		$	(9	)	$	—		$	(824	)

Segment net revenues:
Console	$	659		$	76		$	—		$	—		$	—		$	735
PC	120			776			91			—			(9		)	978
Mobile and ancillary (1)	15			111			1,436			—			—			1,562
Other (2)	—			159			—			245			—			404
Total segment net revenues	$	794		$	1,122		$	1,527		$	245		$	(9	)	$	3,679



	Nine Months Ended September 30, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	1,597		$	133		$	—		$	—	$	—		$	1,730
PC	208			1,140			118			—		(14		)	1,452
Mobile and ancillary (1)	12			139			1,429			—		—			1,580
Other (2)	—			124			—			233		—			357
Total consolidated net revenues	$	1,817		$	1,536		$	1,547		$	233	$	(14	)	$	5,119

Change in deferred revenues:
Console	$	(695	)	$	(25	)	$	—		$	—	$	—		$	(720	)
PC	(76		)	96			—			—		—			20
Mobile and ancillary (1)	1			(2		)	(5		)	—		—			(6		)
Other (2)	—			1			—			13		—			14
Total change in deferred revenues	$	(770	)	$	70		$	(5	)	$	13	$	—		$	(692	)

Segment net revenues:
Console	$	902		$	108		$	—		$	—	$	—		$	1,010
PC	132			1,236			118			—		(14		)	1,472
Mobile and ancillary (1)	13			137			1,424			—		—			1,574
Other (2)	—			125			—			246		—			371
Total segment net revenues	$	1,047		$	1,606		$	1,542		$	246	$	(14	)	$	4,427


(1)	Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform specific game-related revenues, such as standalone sales of physical merchandise and accessories.


(2)	Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League.


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

Long-lived assets by geographic region were as follows (amounts in millions):



	At September 30, 2019		At December 31, 2018
Long-lived assets (1) by geographic region:
Americas	$	179	$	203
EMEA	58		62
Asia Pacific	12		17
Total long-lived assets by geographic region	$	249	$	282

(1)

The only long-lived assets that we classify by region are our long-term tangible fixed assets, which consist of property, plant, and equipment assets; all other long-term assets are not allocated by location.

Restructuring

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Restructuring

On February 12, 2019, the Company committed to a Board-authorized restructuring plan under which the Company aims to refocus its resources on its largest opportunities and to remove unnecessary levels of complexity and duplication from certain parts of the business. We have been, and will continue:


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


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


•	integrating our global and regional sales and “go-to-market,” partnerships, and sponsorships capabilities across the business, which we believe will enable us to provide better opportunities for talent, and greater expertise and scale on behalf of our business units.

The restructuring actions are in process and are largely expected to be completed by the end of 2019, although the timing of cash payments may continue into 2020.

The following table summarizes accrued restructuring and related costs included in “Accrued expenses and other liabilities” in our condensed consolidated balance sheet (amounts in millions):



	Severance and employee related costs			Facilities and related costs			Other costs			Total
Balance at December 31, 2018	$	—		$	—		$	—		$	—
Costs charged to expense	43			—			14			57
Cash payments	(11		)	—			(1		)	(12		)
Non-cash charge adjustment (1)	—			—			(11		)	(11		)
Balance at March 31, 2019	$	32		$	—		$	2		$	34
Costs charged to expense	9			9			4			22
Cash payments	(15		)	—			(5		)	(20		)
Non-cash charge adjustment (1)	—			(9		)	—			(9		)
Balance at June 30, 2019	$	26		$	—		$	1		$	27
Costs charged to expense	5			13			6			24
Cash payments	(8		)	—			(3		)	(11		)
Non-cash charge adjustment (1)	—			(13		)	—			(13		)
Balance at September 30, 2019	$	23		$	—		$	4		$	27


(1)	Adjustments relate to non-cash charges included in “Costs charged to expense” for the write-down of assets from canceled projects during the three months ended March 31, 2019, and the write-down of lease facility assets, inclusive of lease right-of-use assets and associated fixed assets, that were vacated during the three months ended June 30, 2019 and September 30, 2019.

Total restructuring and related costs by segment are (amounts in millions):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Activision	$	1	$	12
Blizzard	12		52
King	4		17
Other segments (1)	7		23
Total	$	24	$	104


(1)	Includes charges related to operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes restructuring charges for our corporate and administrative functions.

During the three months ended September 30, 2019, we also recorded $4 million to write-down inventory resulting from changes to certain of our consumer product activities as part of our restructuring actions, whereby those activities will now operate under a licensing business model rather than being direct sales. This write-down is recorded within “Cost of revenues—product sales: Product costs” in our condensed consolidated statement of operations.

We expect to incur aggregate pre-tax restructuring charges of approximately $150 million in 2019 associated with the restructuring plan, which includes the inventory write-down discussed above. These charges will primarily relate to severance (approximately 55% of the aggregate charge), including, in many cases, amounts above those that are legally required, facilities costs (approximately 20% of the aggregate charge), and other asset write-downs and costs (approximately 25% of the aggregate charge). A majority of the total pre-tax charge associated with the restructuring will be paid in cash using amounts on hand and the outlays are expected to be largely incurred throughout 2019, with the remainder continuing into 2020.

The total expected pre-tax restructuring charges related to the restructuring plan by segment, inclusive of amounts already incurred, are presented below (amounts in millions):



	Year Ending December 31, 2019
Activision	$	15
Blizzard	66
King	27
Other segments (1)	42
Total	$	150

(1)

Includes charges related to operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes restructuring charges for our corporate and administrative functions.

Interest and Other Expense (Income), Net

9 Months Ended

Sep. 30, 2019

Other Income and Expenses [Abstract]

Interest and Other Expense (Income), Net

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



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Interest income	$	(20	)	$	(17	)	$	(61	)	$	(50	)
Interest expense from debt and amortization of debt discount and deferred financing costs	23			33			68			118
Unrealized gain on equity investment	—			—			(38		)	—
Other expense (income), net	(5		)	(3		)	(2		)	(1		)
Interest and other expense (income), net	$	(2	)	$	13		$	(33	)	$	67

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We account for our provision for income taxes in accordance with ASC 740, Income Taxes, which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year. The provision for income taxes represents federal, foreign, state, and local income taxes. Our effective tax rate could be different from the statutory U.S. income tax rate due to: the effect of state and local income taxes; tax rates that apply to our foreign income (including U.S. tax on foreign income); research and development credits; and certain nondeductible expenses. Our effective tax rate could fluctuate significantly from quarter to quarter based on recurring and nonrecurring factors including, but not limited to: variations in the estimated and actual level of pre-tax income or loss by jurisdiction; changes in enacted tax laws and regulations, and interpretations thereof, including with respect to tax credits and state and local income taxes; developments in tax audits and other matters; recognition of excess tax benefits and tax deficiencies from share-based payments; and certain nondeductible expenses. Changes in judgment from the evaluation of new information resulting in the recognition, derecognition, or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of the change. The income tax expense of $45 million for the three months ended September 30, 2019, reflects an effective tax rate of 18%, which is higher than the effective tax rate of (23)% for the three months ended September 30, 2018. The increase is primarily due to a discrete tax benefit recognized in the prior year in connection with adjustments made to the provisional amounts initially recorded in connection with tax reform legislation known as the Tax Cuts and Jobs Act enacted in December 22, 2017 (the “U.S. Tax Reform Act”), lower excess tax benefits from share-based payments in the current year, and an increase in U.S. tax on foreign earnings. The income tax expense of $208 million for the nine months ended September 30, 2019, reflects an effective tax rate of 18%, which is higher than the effective tax rate of 2% for the nine months ended September 30, 2018. The increase is due to a discrete tax benefit recognized in the prior year in connection with an audit settlement with the Internal Revenue Service (“IRS”), a discrete tax benefit recognized in the prior year in connection with adjustments made to the provisional amounts initially recorded in connection with the U.S. Tax Reform Act, and lower excess tax benefits from share-based payments in the current year. This increase was partially offset by a valuation allowance recorded in the prior year with regard to California research and development credit carryforwards (“CA R&D Credits”). The effective tax rate of 18% for both the three and nine months ended September 30, 2019, is lower than the U.S. statutory rate of 21%, primarily due to foreign earnings taxed at lower statutory rates as compared to domestic earnings, which is partially offset by U.S. tax on foreign earnings, and the recognition of federal research and development credits. Activision Blizzard’s 2009 through 2018 tax years remain open to examination by certain major taxing jurisdictions to which we are subject. The IRS is currently examining our federal tax returns for the 2012 through 2016 tax years. We also have several state and non-U.S. audits pending, including the French audit discussed below. In addition, we are currently seeking a multilateral agreement among the tax authorities in the U.K., Sweden, and other relevant jurisdictions with respect to King’s transfer pricing for tax years dating back to 2013. While the outcome of any discussions aimed at such an agreement remains uncertain, they could result in an agreement that changes the allocation of profits and losses between these and other relevant jurisdictions or a failure to reach an agreement that results in unilateral adjustments to the amount and timing of taxable income in the jurisdictions in which King operates. In December 2018, we received a decision from the Swedish Tax Agency (“STA”) informing us of an audit assessment of a Swedish subsidiary of King for the 2016 tax year (“Initial Decision”). The Initial Decision described the basis for issuing a transfer pricing assessment of approximately 3.5kr billion (approximately $359 million), primarily concerning an alleged intercompany asset transfer. On June 17, 2019, we received a reassessment from the STA (“Reassessment”) which changed the Initial Decision based on a revision of the transfer pricing approach reflected in King’s 2016 Swedish tax return and removal of the alleged intercompany asset transfer that was the basis of the Initial Decision. The STA also, at the same time, reassessed the 2017 tax year on the same transfer pricing basis as 2016. The transfer pricing approach reflected in the Reassessment for both 2016 and 2017 remains subject to further review by taxing authorities in other jurisdictions. In July 2019, the Company made a payment to the STA for the Reassessment for the 2016 and 2017 tax years, which did not result in a significant impact to our condensed consolidated financial statements. In December 2017, we received a Notice of Reassessment from the French Tax Authority (“FTA”) related to transfer pricing for intercompany transactions involving one of our French subsidiaries for the 2011 through 2013 tax years. The total assessment, including penalties and interest, was approximately €571 million (approximately $625 million). We disagree with the proposed assessment and continue to vigorously contest it. We believe our tax provisions at September 30, 2019, were appropriate. Until such time as this matter is ultimately resolved we could be subject to significant additional tax liabilities. In addition to the risk of additional tax for the 2011 through 2013 tax years, if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities. In October 2019, we completed an intra-entity transfer of certain intellectual property rights to one of our subsidiaries in the U.K. The transfer did not result in a taxable gain; however, our U.K. subsidiary received a step-up in tax basis. We are currently assessing the tax impacts associated with this transfer, including its impact to deferred taxes. We expect to record a one-time benefit for the recognition of a deferred tax asset in the U.K. related to the amortizable tax basis in the transferred intellectual property, partially offset by a related deferred tax liability for U.S. taxes on foreign earnings. The net tax impact of this intra-entity asset transfer will be recorded in the quarter ending December 31, 2019. While this one-time impact may be material to our financial statements, we do not expect the transfer to materially affect cash taxes or operating cash flows in 2019. In addition, certain of our subsidiaries are under examination or investigation, or may be subject to examination or investigation, by tax authorities in various jurisdictions. These proceedings may lead to adjustments or proposed adjustments to our taxes or provisions for uncertain tax positions. Such proceedings may have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations in the earlier of the period or periods in which the matters are resolved and in which appropriate tax provisions are taken into account in our financial statements. If we were to receive a materially adverse assessment from a taxing jurisdiction, we would plan to vigorously contest it and consider all of our options, including the pursuit of judicial remedies. We regularly assess the likelihood of adverse outcomes resulting from these examinations and monitor the progress of ongoing discussions with tax authorities in determining the appropriateness of our tax provisions. The final resolution of the Company’s global tax disputes is uncertain. There is significant judgment required in the analysis of disputes, including the probability determination and estimation of the potential exposure. Based on current information, in the opinion of the Company’s management, the ultimate resolution of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations, except as noted above.

Computation of Basic/Diluted Earnings Per Common Share

9 Months Ended

Sep. 30, 2019

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 Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Consolidated net income	$	204	$	260	$	978	$	1,162
Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	767		763		766		761
Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards	4		8		4		10
Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding	771		771		770		771

Basic earnings per common share	$	0.27	$	0.34	$	1.28	$	1.53
Diluted earnings per common share	$	0.26	$	0.34	$	1.27	$	1.51

The vesting of certain of our employee-related restricted stock units and options is contingent upon the satisfaction of pre-defined performance measures. The shares underlying these equity awards are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Additionally, potential common shares are not included in the denominator of the diluted earnings per common share calculation when the inclusion of such shares would be anti-dilutive.

Weighted-average shares excluded from the computation of diluted earnings per share were as follows (amounts in millions):



	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2019	2018	2019	2018
Restricted stock units and options with performance measures not yet met	4	6	3	6
Anti-dilutive employee stock options	6	1	6	2

Capital Transactions	9 Months Ended
Capital Transactions	Sep. 30, 2019
Equity [Abstract]
Capital Transactions	Capital Transactions Repurchase Program On January 31, 2019, our Board of Directors authorized a stock repurchase program under which we are authorized to repurchase up to $1.5 billion of our common stock from February 14, 2019, until the earlier of February 13, 2021, and a determination by the Board of Directors to discontinue the repurchase program. As of September 30, 2019, we have not repurchased any shares under this program. Dividends On February 12, 2019, our Board of Directors declared a cash dividend of $0.37 per common share. On May 9, 2019, we made an aggregate cash dividend payment of $283 million to shareholders of record at the close of business on March 28, 2019. On February 8, 2018, our Board of Directors declared a cash dividend of $0.34 per common share. On May 9, 2018, we made an aggregate cash dividend payment of $259 million to shareholders of record at the close of business on March 30, 2018.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings We are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including with respect to intellectual property rights, contractual claims, labor and employment matters, regulatory matters, tax matters, unclaimed property matters, compliance matters, and collection matters. In the opinion of management, after consultation with legal counsel, such routine claims and lawsuits are not significant, and we do not expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of Consolidation and Presentation

The accompanying condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated.

Recently Issued Accounting Pronouncements

Adoption of Accounting Standards Codification (“ASC”) 842: Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the accounting for leases. The new standard replaces all current U.S. GAAP guidance on this topic. The new standard, among other things, requires a lessee to classify a lease as either an operating or financing lease, and to recognize a lease liability and a right-of-use (“ROU”) asset for its leases. On January 1, 2019, we adopted the new lease accounting standard. As a result, we have updated our significant accounting policy disclosure to include our accounting policy for leases under the new standard. Refer to Note 3 for information about the impact of adoption on our condensed consolidated financial statements.

Leases

We determine if an arrangement is or contains a lease at contract inception. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred, and generally relate to variable payments made based on the level of services provided by the landlords of our leases. The operating lease ROU asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset type we applied a portfolio approach in determining a single incremental borrowing rate to apply to the leased assets.

In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease assets are depreciated on a straight-line basis over the estimated life of the asset, not to exceed the length of the lease, with interest expense associated with finance lease liabilities recorded using the effective interest method. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components. For our real estate, server and data center, and event production and broadcasting equipment leases, we elected the practical expedient to account for the lease and non-lease components as a single lease component. In all other lease arrangements, we account for lease and non-lease components separately. Additionally, for certain leases that have a group of leased assets with similar characteristics in size and composition, we may apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities.

Operating lease ROU assets are presented in “Other assets” and operating lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet.

Finance lease ROU assets are presented in “Property and equipment, net” and finance lease liabilities are presented in “Accrued expenses and other current liabilities” and “Other liabilities” on our condensed consolidated balance sheet.

Recently Adopted Accounting Pronouncements

Leases

The impact from the adoption of the new lease accounting standard to our condensed consolidated balance sheet at January 1, 2019, was as follows (amounts in millions):



Condensed Consolidated Balance Sheet:	Balance at December 31, 2018		Adjustments due to adoption of new lease accounting standard			Balance at January 1, 2019
Assets
Other current assets	$	539	$	(8	)	$	531
Other assets	482		252			734
Liabilities
Accrued expenses and other liabilities	$	896	$	54		$	950
Other liabilities	1,167		190			1,357

The adoption of this standard did not have an impact on our condensed consolidated statement of operations or condensed consolidated statements of cash flows.

Recent Accounting Pronouncements Not Yet Adopted

Goodwill

Cloud Computing Arrangements

Financial Instruments - Credit Losses

Leases

Description of Business and Basis of Consolidation and Presentation (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Beginning and Ending Cash and Cash Equivalents and Restricted Cash



	At September 30,
	2019		2018
Beginning restricted cash	$	4	$	7
Ending restricted cash	7		8

Recently Issued Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Schedule of Impact of Adoption

The impact from the adoption of the new lease accounting standard to our condensed consolidated balance sheet at January 1, 2019, was as follows (amounts in millions):



Condensed Consolidated Balance Sheet:	Balance at December 31, 2018		Adjustments due to adoption of new lease accounting standard			Balance at January 1, 2019
Assets
Other current assets	$	539	$	(8	)	$	531
Other assets	482		252			734
Liabilities
Accrued expenses and other liabilities	$	896	$	54		$	950
Other liabilities	1,167		190			1,357

Inventories, Net (Tables)

9 Months Ended

Sep. 30, 2019

Inventory Disclosure [Abstract]

Schedule of inventories

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



	At September 30, 2019		At December 31, 2018
Finished goods	$	82	$	40
Purchased parts and components	20		3
Inventories, net	$	102	$	43

Software Development and Intellectual Property Licenses (Tables)

9 Months Ended

Sep. 30, 2019

Software Development Costs and Intellectual Property Licenses

Summary of the components of capitalized software development

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



	At September 30, 2019		At December 31, 2018
Internally-developed software costs	$	325	$	291
Payments made to third-party software developers	24		38
Total software development costs	$	349	$	329

Amortization of capitalized software development costs and intellectual property licenses

Amortization of capitalized software development costs and intellectual property licenses was as follows (amounts in millions):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Amortization of capitalized software development costs and intellectual property licenses	$	11	$	33	$	175	$	242

Intangible Assets, Net (Tables)

9 Months Ended

Sep. 30, 2019

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of finite-lived intangible assets

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



	At September 30, 2019
	Estimated useful lives			Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,086	)	$	68
Developed software	2	-	5 years	601		(548		)	53
Trade names	7	-	10 years	54		(28		)	26
Other	1	-	15 years	19		(16		)	3
Total definite-lived intangible assets (1)				$	1,828	$	(1,678	)	$	150

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	583


(1)	Beginning with the first quarter of 2019, the balances of the customer base intangible assets have been removed as such amounts were fully amortized in the prior year.



	At December 31, 2018
	Estimated useful lives			Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,032	)	$	122
Developed software	2	-	5 years	601		(456		)	145
Customer base	2 years			617		(617		)	—
Trade names	7	-	10 years	54		(23		)	31
Other	1	-	15 years	19		(15		)	4
Total definite-lived intangible assets				$	2,445	$	(2,143	)	$	302

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	735

Schedule of indefinite-lived intangible assets

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



	At September 30, 2019
	Estimated useful lives			Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,086	)	$	68
Developed software	2	-	5 years	601		(548		)	53
Trade names	7	-	10 years	54		(28		)	26
Other	1	-	15 years	19		(16		)	3
Total definite-lived intangible assets (1)				$	1,828	$	(1,678	)	$	150

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	583


(1)	Beginning with the first quarter of 2019, the balances of the customer base intangible assets have been removed as such amounts were fully amortized in the prior year.



	At December 31, 2018
	Estimated useful lives			Gross carrying amount		Accumulated amortization			Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,032	)	$	122
Developed software	2	-	5 years	601		(456		)	145
Customer base	2 years			617		(617		)	—
Trade names	7	-	10 years	54		(23		)	31
Other	1	-	15 years	19		(15		)	4
Total definite-lived intangible assets				$	2,445	$	(2,143	)	$	302

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	735

Schedule of finite lived intangible assets, future amortization expense

At September 30, 2019, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):



For the years ending December 31,
2019 (remaining three months)	$	52
2020	74
2021	12
2022	7
2023	2
Thereafter	3
Total	$	150

Goodwill (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

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



	Activision		Blizzard		King		Total
Balance at December 31, 2018	$	6,897	$	190	$	2,675	$	9,762
Other	1		—		1		2
Balance at September 30, 2019	$	6,898	$	190	$	2,676	$	9,764

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

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



				Fair Value Measurements at September 30, 2019 Using
	As of September 30, 2019			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance Sheet Classification
Financial Assets:
Recurring fair value measurements:
Money market funds	$	4,616		$	4,616	$	—		$	—	Cash and cash equivalents
Foreign government treasury bills	36			36		—			—		Cash and cash equivalents
Foreign currency forward contracts designated as hedges	23			—		23			—		Other current assets
Foreign currency forward contracts not designated as hedges	8			—		8			—		Other current assets
Total recurring fair value measurements	$	4,683		$	4,652	$	31		$	—

Financial Liabilities:
Foreign currency forward contracts not designated as hedges	$	(4	)	$	—	$	(4	)	$	—	Accrued expenses and other liabilities



				Fair Value Measurements at December 31, 2018 Using
	As of December 31, 2018			Quoted Prices in Active Markets for Identical Assets (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

Foreign currency forward contracts

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



	As of September 30, 2019					As of December 31, 2018
	Notional amount		Fair value gain (loss)			Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell EUR	$	81	$	5		$	—	$	—
Buy EUR, Sell USD	79		(3		)	—		—
Buy USD, Sell SEK	46		2			—		—
Buy SEK, Sell USD	45		(1		)	—		—
Buy USD, Sell GBP	13		1			55		1
Buy GBP, Sell USD	13		—			—		—

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



	As of September 30, 2019				As of December 31, 2018
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell Euro	$	310	$	23	$	723	$	12

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



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,					Statement of Operations Classification
	2019		2018		2019		2018			Statement of Operations Classification
Cash Flow Hedges	$	7	$	3	$	24	$	(11	)	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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+ Details

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Lease Expense and Other Details Related to Operating Leases

Components of our lease costs are as follows (amounts in millions):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating leases
Operating lease costs	$	19	$	58
Variable lease costs	6		16

Supplemental information related to our operating leases is as follows (amounts in millions):



	Nine Months Ended September 30, 2019
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	61
ROU assets obtained in exchange for new lease obligations	55

	At September 30, 2019
Weighted Average Lease terms and discount rates
Remaining lease term	5.15 years
Discount rate	4.09		%

Schedule of Future Undiscounted Lease Payments For Operating Lease Liabilities And Reconciliation to Operating Lease Liabilities



For the years ending December 31,
2019 (remaining three months)	$	14
2020	74
2021	56
2022	48
2023	42
Thereafter	74
Total future lease payments	$	308
Less imputed interest	(32		)
Total lease liabilities	$	276

Schedule of ROU Assets and Lease Liabilities

Operating lease ROU assets and liabilities recorded on our condensed consolidated balance sheet as of September 30, 2019, were as follows (amounts in millions):



	At September 30, 2019		Balance Sheet Classification
ROU assets	$	238	Other assets

Current lease liabilities	$	61	Accrued expenses and other current liabilities
Non-current lease liabilities	215		Other liabilities
	$	276	Total lease liabilities

Schedule of Future Minimum Lease Payments Prior to Adoption of Lease Standard

Future minimum lease payments as of December 31, 2018, prior to our adoption of the new lease accounting standard, were as follows:



For the years ending December 31,
2019	$	80
2020	70
2021	53
2022	45
2023	38
Thereafter	60
Total	$	346

Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Summary of debt

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



	At September 30, 2019
	Gross Carrying Amount		Unamortized Discount and Deferred Financing Costs			Net Carrying Amount
2021 Notes	$	650	$	(2	)	$	648
2022 Notes	400		(2		)	398
2026 Notes	850		(8		)	842
2027 Notes	400		(5		)	395
2047 Notes	400		(9		)	391
Total long-term debt	$	2,700	$	(26	)	$	2,674



	At December 31, 2018
	Gross Carrying 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

Schedule of maturities of debt

As of September 30, 2019, the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years and thereafter are as follows (amounts in millions):



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

Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2019

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

Schedule of accumulated other comprehensive income (loss)

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



	For the Nine Months Ended September 30, 2019
	Foreign currency translation adjustments			Unrealized gain (loss) on forward contracts			Unrealized gain (loss) on available-for-sale securities			Total
Balance at December 31, 2018	$	(629	)	$	23		$	5		$	(601	)
Other comprehensive income (loss) before reclassifications	(5		)	28			3			26
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(24		)	(8		)	(32		)
Balance at September 30, 2019	$	(634	)	$	27		$	—		$	(607	)



	For the Nine Months Ended September 30, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on forward contracts			Unrealized gain (loss) on available-for-sale securities		Total
Balance at December 31, 2017	$	(623	)	$	(15	)	$	—	$	(638	)
Cumulative impact from adoption of new revenue accounting standard	3			—			—		3
Other comprehensive income (loss) before reclassifications	(7		)	14			4		11
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			11			—		11
Balance at September 30, 2018	$	(627	)	$	10		$	4	$	(613	)

Operating Segments and Geographic Region (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of operating segments and reconciliations of total net revenues and total segment operating income to consolidated net revenues from external customers and consolidated income before income tax expense

Information on reportable segment net revenues and operating income for the three months ended September 30, 2019 and 2018, are presented below (amounts in millions):



	Three Months Ended September 30, 2019
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	209	$	392	$	500	$	1,101
Intersegment net revenues (1)	—		2		—		2
Segment net revenues	$	209	$	394	$	500	$	1,103

Segment operating income	$	26	$	74	$	194	$	294

	Three Months Ended September 30, 2018
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	397	$	627	$	506	$	1,530
Intersegment net revenues (1)	—		8		—		8
Segment net revenues	$	397	$	635	$	506	$	1,538

Segment operating income	$	112	$	189	$	184	$	485

Information on reportable segment net revenues and operating income for the nine months ended September 30, 2019 and 2018, are presented below (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	794	$	1,113	$	1,527	$	3,434
Intersegment net revenues (1)	—		9		—		9
Segment net revenues	$	794	$	1,122	$	1,527	$	3,443

Segment operating income	$	153	$	204	$	543	$	900

	Nine Months Ended September 30, 2018
	Activision		Blizzard		King		Total
Segment Net Revenues
Net revenues from external customers	$	1,047	$	1,592	$	1,542	$	4,181
Intersegment net revenues (1)	—		14		—		14
Segment net revenues	$	1,047	$	1,606	$	1,542	$	4,195

Segment operating income	$	288	$	444	$	543	$	1,275


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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Reconciliation to consolidated net revenues:
Segment net revenues	$	1,103		$	1,538		$	3,443		$	4,195
Revenues from non-reportable segments (1)	113			128			245			246
Net effect from recognition (deferral) of deferred net revenues (2)	68			(146		)	824			692
Elimination of intersegment revenues (3)	(2		)	(8		)	(9		)	(14		)
Consolidated net revenues	$	1,282		$	1,512		$	4,503		$	5,119

Reconciliation to consolidated income before income tax expense:
Segment operating income	$	294		$	485		$	900		$	1,275
Operating income (loss) from non-reportable segments (1)	5			7			10			(4		)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)	53			(89		)	629			468
Share-based compensation expense	(27		)	(55		)	(127		)	(166		)
Amortization of intangible assets	(50		)	(83		)	(151		)	(279		)
Restructuring and related costs (4)	(28		)	—			(108		)	—
Consolidated operating income	247			265			1,153			1,294
Interest and other expense (income), net	(2		)	13			(33		)	67
Loss on extinguishment of debt	—			40			—			40
Consolidated income before income tax expense	$	249		$	212		$	1,186		$	1,187


(1)	Includes other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes unallocated corporate income and expenses.


(2)	Reflects the net effect from recognition (deferral) of deferred net revenues, along with related cost of revenues, on certain of our online-enabled products.


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

(4)

Reflects restructuring initiatives, primarily severance and other restructuring-related costs.

Schedule of net revenues by distribution channels



	Three Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	179		$	335		$	502		$	—	$	(2	)	$	1,014
Retail channels	73			20			—			—		—			93
Other (2)	—			62			—			113		—			175
Total consolidated net revenues	$	252		$	417		$	502		$	113	$	(2	)	$	1,282

Change in deferred revenues:
Digital online channels (1)	$	(16	)	$	(21	)	$	(2	)	$	—	$	—		$	(39	)
Retail channels	(27		)	(2		)	—			—		—			(29		)
Other (2)	—			—			—			—		—			—
Total change in deferred revenues	$	(43	)	$	(23	)	$	(2	)	$	—	$	—		$	(68	)

Segment net revenues:
Digital online channels (1)	$	163		$	314		$	500		$	—	$	(2	)	$	975
Retail channels	46			18			—			—		—			64
Other (2)	—			62			—			113		—			175
Total segment net revenues	$	209		$	394		$	500		$	113	$	(2	)	$	1,214



	Three Months Ended September 30, 2018
	Activision			Blizzard			King		Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	299		$	480		$	505	$	—	$	(8	)	$	1,276
Retail channels	53			23			—		—		—			76
Other (2)	—			35			—		125		—			160
Total consolidated net revenues	$	352		$	538		$	505	$	125	$	(8	)	$	1,512

Change in deferred revenues:
Digital online channels (1)	$	57		$	101		$	1	$	—	$	—		$	159
Retail channels	(12		)	(2		)	—		—		—			(14		)
Other (2)	—			(2		)	—		3		—			1
Total change in deferred revenues	$	45		$	97		$	1	$	3	$	—		$	146

Segment net revenues:
Digital online channels (1)	$	356		$	581		$	506	$	—	$	(8	)	$	1,435
Retail channels	41			21			—		—		—			62
Other (2)	—			33			—		128		—			161
Total segment net revenues	$	397		$	635		$	506	$	128	$	(8	)	$	1,658



	Nine Months Ended September 30, 2019
	Activision			Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	894		$	1,081		$	1,527	$	—		$	(9	)	$	3,493
Retail channels	548			51			—		—			—			599
Other (2)	—			157			—		254			—			411
Total consolidated net revenues	$	1,442		$	1,289		$	1,527	$	254		$	(9	)	$	4,503

Change in deferred revenues:
Digital online channels (1)	$	(285	)	$	(159	)	$	—	$	—		$	—		$	(444	)
Retail channels	(363		)	(10		)	—		—			—			(373		)
Other (2)	—			2			—		(9		)	—			(7		)
Total change in deferred revenues	$	(648	)	$	(167	)	$	—	$	(9	)	$	—		$	(824	)

Segment net revenues:
Digital online channels (1)	$	609		$	922		$	1,527	$	—		$	(9	)	$	3,049
Retail channels	185			41			—		—			—			226
Other (2)	—			159			—		245			—			404
Total segment net revenues	$	794		$	1,122		$	1,527	$	245		$	(9	)	$	3,679



	Nine Months Ended September 30, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,110		$	1,355		$	1,547		$	—	$	(14	)	$	3,998
Retail channels	707			57			—			—		—			764
Other (2)	—			124			—			233		—			357
Total consolidated net revenues	$	1,817		$	1,536		$	1,547		$	233	$	(14	)	$	5,119

Change in deferred revenues:
Digital online channels (1)	$	(234	)	$	79		$	(5	)	$	—	$	—		$	(160	)
Retail channels	(536		)	(10		)	—			—		—			(546		)
Other (2)	—			1			—			13		—			14
Total change in deferred revenues	$	(770	)	$	70		$	(5	)	$	13	$	—		$	(692	)

Segment net revenues:
Digital online channels (1)	$	876		$	1,434		$	1,542		$	—	$	(14	)	$	3,838
Retail channels	171			47			—			—		—			218
Other (2)	—			125			—			246		—			371
Total segment net revenues	$	1,047		$	1,606		$	1,542		$	246	$	(14	)	$	4,427


(1)	Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties.


(2)	Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League.

(3)

Intersegment revenues reflect licensing and service fees charged between segments.

Schedule of net revenues by geographic region



	Three Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	141		$	204		$	311		$	—	$	(1	)	$	655
EMEA (1)	79			124			137			113		(1		)	452
Asia Pacific	32			89			54			—		—			175
Total consolidated net revenues	$	252		$	417		$	502		$	113	$	(2	)	$	1,282

Change in deferred revenues:
Americas	$	(20	)	$	(11	)	$	(2	)	$	—	$	—		$	(33	)
EMEA (1)	(16		)	(10		)	—			—		—			(26		)
Asia Pacific	(7		)	(2		)	—			—		—			(9		)
Total change in deferred revenues	$	(43	)	$	(23	)	$	(2	)	$	—	$	—		$	(68	)

Segment net revenues:
Americas	$	121		$	193		$	309		$	—	$	(1	)	$	622
EMEA (1)	63			114			137			113		(1		)	426
Asia Pacific	25			87			54			—		—			166
Total segment net revenues	$	209		$	394		$	500		$	113	$	(2	)	$	1,214



	Three Months Ended September 30, 2018
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	214	$	242	$	309	$	13	$	(4	)	$	774
EMEA (1)	109		172		143		112		(2		)	534
Asia Pacific	29		124		53		—		(2		)	204
Total consolidated net revenues	$	352	$	538	$	505	$	125	$	(8	)	$	1,512

Change in deferred revenues:
Americas	$	33	$	43	$	—	$	—	$	—		$	76
EMEA (1)	8		48		1		3		—			60
Asia Pacific	4		6		—		—		—			10
Total change in deferred revenues	$	45	$	97	$	1	$	3	$	—		$	146

Segment net revenues:
Americas	$	247	$	285	$	309	$	13	$	(4	)	$	850
EMEA (1)	117		220		144		115		(2		)	594
Asia Pacific	33		130		53		—		(2		)	214
Total segment net revenues	$	397	$	635	$	506	$	128	$	(8	)	$	1,658

Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments			Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	852		$	613		$	946		$	—		$	(5	)	$	2,406
EMEA (1)	457			400			417			254			(3		)	1,525
Asia Pacific	133			276			164			—			(1		)	572
Total consolidated net revenues	$	1,442		$	1,289		$	1,527		$	254		$	(9	)	$	4,503

Change in deferred revenues:
Americas	$	(390	)	$	(80	)	$	1		$	—		$	—		$	(469	)
EMEA (1)	(205		)	(71		)	—			(9		)	—			(285		)
Asia Pacific	(53		)	(16		)	(1		)	—			—			(70		)
Total change in deferred revenues	$	(648	)	$	(167	)	$	—		$	(9	)	$	—		$	(824	)

Segment net revenues:
Americas	$	462		$	533		$	947		$	—		$	(5	)	$	1,937
EMEA (1)	252			329			417			245			(3		)	1,240
Asia Pacific	80			260			163			—			(1		)	502
Total segment net revenues	$	794		$	1,122		$	1,527		$	245		$	(9	)	$	3,679



	Nine Months Ended September 30, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	1,074		$	716		$	945		$	13	$	(8	)	$	2,740
EMEA (1)	613			497			448			220		(4		)	1,774
Asia Pacific	130			323			154			—		(2		)	605
Total consolidated net revenues	$	1,817		$	1,536		$	1,547		$	233	$	(14	)	$	5,119

Change in deferred revenues:
Americas	$	(439	)	$	43		$	(3	)	$	—	$	—		$	(399	)
EMEA (1)	(287		)	34			(2		)	13		—			(242		)
Asia Pacific	(44		)	(7		)	—			—		—			(51		)
Total change in deferred revenues	$	(770	)	$	70		$	(5	)	$	13	$	—		$	(692	)

Segment net revenues:
Americas	$	635		$	759		$	942		$	13	$	(8	)	$	2,341
EMEA (1)	326			531			446			233		(4		)	1,532
Asia Pacific	86			316			154			—		(2		)	554
Total segment net revenues	$	1,047		$	1,606		$	1,542		$	246	$	(14	)	$	4,427


(1)	“EMEA” consists of the Europe, Middle East, and Africa geographic regions.

(2)

Intersegment revenues reflect licensing and service fees charged between segments.

Schedule of net revenues by platform

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Three Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	214		$	27		$	—		$	—	$	—		$	241
PC	29			286			28			—		(2		)	341
Mobile and ancillary (1)	9			42			474			—		—			525
Other (2)	—			62			—			113		—			175
Total consolidated net revenues	$	252		$	417		$	502		$	113	$	(2	)	$	1,282

Change in deferred revenues:
Console	$	(36	)	$	(9	)	$	—		$	—	$	—		$	(45	)
PC	(7		)	(14		)	—			—		—			(21		)
Mobile and ancillary (1)	—			—			(2		)	—		—			(2		)
Other (2)	—			—			—			—		—			—
Total change in deferred revenues	$	(43	)	$	(23	)	$	(2	)	$	—	$	—		$	(68	)

Segment net revenues:
Console	$	178		$	18		$	—		$	—	$	—		$	196
PC	22			272			28			—		(2		)	320
Mobile and ancillary (1)	9			42			472			—		—			523
Other (2)	—			62			—			113		—			175
Total segment net revenues	$	209		$	394		$	500		$	113	$	(2	)	$	1,214



	Three Months Ended September 30, 2018
	Activision		Blizzard			King		Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	307	$	40		$	—	$	—	$	—		$	347
PC	40		414			36		—		(8		)	482
Mobile and ancillary (1)	5		49			469		—		—			523
Other (2)	—		35			—		125		—			160
Total consolidated net revenues	$	352	$	538		$	505	$	125	$	(8	)	$	1,512

Change in deferred revenues:
Console	$	29	$	(9	)	$	—	$	—	$	—		$	20
PC	16		101			—		—		—			117
Mobile and ancillary (1)	—		7			1		—		—			8
Other (2)	—		(2		)	—		3		—			1
Total change in deferred revenues	$	45	$	97		$	1	$	3	$	—		$	146

Segment net revenues:
Console	$	336	$	31		$	—	$	—	$	—		$	367
PC	56		515			36		—		(8		)	599
Mobile and ancillary (1)	5		56			470		—		—			531
Other (2)	—		33			—		128		—			161
Total segment net revenues	$	397	$	635		$	506	$	128	$	(8	)	$	1,658

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2019 and 2018, were as follows (amounts in millions):



	Nine Months Ended September 30, 2019
	Activision			Blizzard			King			Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	1,222		$	102		$	—		$	—		$	—		$	1,324
PC	204			909			92			—			(9		)	1,196
Mobile and ancillary (1)	16			121			1,435			—			—			1,572
Other (2)	—			157			—			254			—			411
Total consolidated net revenues	$	1,442		$	1,289		$	1,527		$	254		$	(9	)	$	4,503

Change in deferred revenues:
Console	$	(563	)	$	(26	)	$	—		$	—		$	—		$	(589	)
PC	(84		)	(133		)	(1		)	—			—			(218		)
Mobile and ancillary (1)	(1		)	(10		)	1			—			—			(10		)
Other (2)	—			2			—			(9		)	—			(7		)
Total change in deferred revenues	$	(648	)	$	(167	)	$	—		$	(9	)	$	—		$	(824	)

Segment net revenues:
Console	$	659		$	76		$	—		$	—		$	—		$	735
PC	120			776			91			—			(9		)	978
Mobile and ancillary (1)	15			111			1,436			—			—			1,562
Other (2)	—			159			—			245			—			404
Total segment net revenues	$	794		$	1,122		$	1,527		$	245		$	(9	)	$	3,679



	Nine Months Ended September 30, 2018
	Activision			Blizzard			King			Non-reportable segments		Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	1,597		$	133		$	—		$	—	$	—		$	1,730
PC	208			1,140			118			—		(14		)	1,452
Mobile and ancillary (1)	12			139			1,429			—		—			1,580
Other (2)	—			124			—			233		—			357
Total consolidated net revenues	$	1,817		$	1,536		$	1,547		$	233	$	(14	)	$	5,119

Change in deferred revenues:
Console	$	(695	)	$	(25	)	$	—		$	—	$	—		$	(720	)
PC	(76		)	96			—			—		—			20
Mobile and ancillary (1)	1			(2		)	(5		)	—		—			(6		)
Other (2)	—			1			—			13		—			14
Total change in deferred revenues	$	(770	)	$	70		$	(5	)	$	13	$	—		$	(692	)

Segment net revenues:
Console	$	902		$	108		$	—		$	—	$	—		$	1,010
PC	132			1,236			118			—		(14		)	1,472
Mobile and ancillary (1)	13			137			1,424			—		—			1,574
Other (2)	—			125			—			246		—			371
Total segment net revenues	$	1,047		$	1,606		$	1,542		$	246	$	(14	)	$	4,427


(1)	Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform specific game-related revenues, such as standalone sales of physical merchandise and accessories.


(2)	Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League.


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

Long-lived assets by geographic region

Long-lived assets by geographic region were as follows (amounts in millions):



	At September 30, 2019		At December 31, 2018
Long-lived assets (1) by geographic region:
Americas	$	179	$	203
EMEA	58		62
Asia Pacific	12		17
Total long-lived assets by geographic region	$	249	$	282

(1)

Restructuring (Tables)

9 Months Ended

Sep. 30, 2019

Restructuring and Related Activities [Abstract]

Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities and Charges by Reportable Segment

The following table summarizes accrued restructuring and related costs included in “Accrued expenses and other liabilities” in our condensed consolidated balance sheet (amounts in millions):



	Severance and employee related costs			Facilities and related costs			Other costs			Total
Balance at December 31, 2018	$	—		$	—		$	—		$	—
Costs charged to expense	43			—			14			57
Cash payments	(11		)	—			(1		)	(12		)
Non-cash charge adjustment (1)	—			—			(11		)	(11		)
Balance at March 31, 2019	$	32		$	—		$	2		$	34
Costs charged to expense	9			9			4			22
Cash payments	(15		)	—			(5		)	(20		)
Non-cash charge adjustment (1)	—			(9		)	—			(9		)
Balance at June 30, 2019	$	26		$	—		$	1		$	27
Costs charged to expense	5			13			6			24
Cash payments	(8		)	—			(3		)	(11		)
Non-cash charge adjustment (1)	—			(13		)	—			(13		)
Balance at September 30, 2019	$	23		$	—		$	4		$	27


(1)	Adjustments relate to non-cash charges included in “Costs charged to expense” for the write-down of assets from canceled projects during the three months ended March 31, 2019, and the write-down of lease facility assets, inclusive of lease right-of-use assets and associated fixed assets, that were vacated during the three months ended June 30, 2019 and September 30, 2019.

Schedule of Restructuring and Related Costs by Segment and Expected Pre-tax Restructuring Charges

Total restructuring and related costs by segment are (amounts in millions):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Activision	$	1	$	12
Blizzard	12		52
King	4		17
Other segments (1)	7		23
Total	$	24	$	104

(1)

The total expected pre-tax restructuring charges related to the restructuring plan by segment, inclusive of amounts already incurred, are presented below (amounts in millions):



	Year Ending December 31, 2019
Activision	$	15
Blizzard	66
King	27
Other segments (1)	42
Total	$	150

(1)

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

9 Months Ended

Sep. 30, 2019

Other Income and Expenses [Abstract]

Interest and other investment income (expense)

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



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Interest income	$	(20	)	$	(17	)	$	(61	)	$	(50	)
Interest expense from debt and amortization of debt discount and deferred financing costs	23			33			68			118
Unrealized gain on equity investment	—			—			(38		)	—
Other expense (income), net	(5		)	(3		)	(2		)	(1		)
Interest and other expense (income), net	$	(2	)	$	13		$	(33	)	$	67

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

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of computation of earnings per share

The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Numerator:
Consolidated net income	$	204	$	260	$	978	$	1,162
Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	767		763		766		761
Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards	4		8		4		10
Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding	771		771		770		771

Basic earnings per common share	$	0.27	$	0.34	$	1.28	$	1.53
Diluted earnings per common share	$	0.26	$	0.34	$	1.27	$	1.51

Schedule of antidilutive securities excluded from computation of earnings per share

Weighted-average shares excluded from the computation of diluted earnings per share were as follows (amounts in millions):



	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2019	2018	2019	2018
Restricted stock units and options with performance measures not yet met	4	6	3	6
Anti-dilutive employee stock options	6	1	6	2

Description of Business and Basis of Consolidation and Presentation (Details) $ in Millions	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) segment	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment				3
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax expense reduction	$ (45)		$ 48	$ (208)	$ (25)
Initial Recognition of Global Intangible Low-taxed Income of Foreign Subsidiaries
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax expense reduction		$ 35				$ 35

Description of Business and Basis of Consolidation and Presentation - Restricted Cash (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restricted cash	$ 7	$ 4	$ 8	$ 7

Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Condensed Consolidated Financial Statements (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Other current assets	$ 345	$ 531	$ 539
Other assets	731	734	482
Liabilities
Accrued expenses and other liabilities	782	950	896
Other liabilities	$ 1,122	1,357	$ 1,167
Adjustments due to adoption of new lease accounting standard
Assets
Other current assets		(8)
Other assets		252
Liabilities
Accrued expenses and other liabilities		54
Other liabilities		$ 190

Inventories, Net (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 82	$ 40
Purchased parts and components	20	3
Inventories, net	102	43
Inventory reserves	$ 13	$ 22

Software Development and Intellectual Property Licenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Software development and intellectual property licenses:
Internally-developed software costs	$ 325		$ 325		$ 291
Payments made to third-party software developers	24		24		38
Total software development costs	349		349		$ 329
Amortization:
Amortization of capitalized software development costs and intellectual property licenses	$ 11	$ 33	$ 175	$ 242

Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	$ 1,828		$ 1,828		$ 2,445
Accumulated amortization, definite-lived intangible assets	(1,678)		(1,678)		(2,143)
Net carrying amount, definite-lived intangible assets	150		150		302
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	433		433		433
Total intangible assets, net	583		583		735
Amortization Expense Disclosure
Amortization expense	50	$ 84	152	$ 280
Activision trademark
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	386		386		386
Acquired trade names
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	47		47		47
Internally-developed franchises
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	1,154		1,154		1,154
Accumulated amortization, definite-lived intangible assets	(1,086)		(1,086)		(1,032)
Net carrying amount, definite-lived intangible assets	68		$ 68		$ 122
Internally-developed franchises \| Minimum
Finite-Lived Intangible Assets
Estimated useful life			3 years		3 years
Internally-developed franchises \| Maximum
Finite-Lived Intangible Assets
Estimated useful life			11 years		11 years
Developed software
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	601		$ 601		$ 601
Accumulated amortization, definite-lived intangible assets	(548)		(548)		(456)
Net carrying amount, definite-lived intangible assets	53		$ 53		$ 145
Developed software \| Minimum
Finite-Lived Intangible Assets
Estimated useful life			2 years		2 years
Developed software \| Maximum
Finite-Lived Intangible Assets
Estimated useful life			5 years		5 years
Customer base
Finite-Lived Intangible Assets
Estimated useful life					2 years
Gross carrying amount, definite-lived intangible assets					$ 617
Accumulated amortization, definite-lived intangible assets					(617)
Net carrying amount, definite-lived intangible assets					0
Acquired trade names
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	54		$ 54		54
Accumulated amortization, definite-lived intangible assets	(28)		(28)		(23)
Net carrying amount, definite-lived intangible assets	26		$ 26		$ 31
Acquired trade names \| Minimum
Finite-Lived Intangible Assets
Estimated useful life			7 years		7 years
Acquired trade names \| Maximum
Finite-Lived Intangible Assets
Estimated useful life			10 years		10 years
Other
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	19		$ 19		$ 19
Accumulated amortization, definite-lived intangible assets	(16)		(16)		(15)
Net carrying amount, definite-lived intangible assets	$ 3		$ 3		$ 4
Other \| Minimum
Finite-Lived Intangible Assets
Estimated useful life			1 year		1 year
Other \| Maximum
Finite-Lived Intangible Assets
Estimated useful life			15 years		15 years

Intangible Assets, Net - Schedule of Future Amortization (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Definite-lived intangible assets, future amortization expense disclosure
2019 (remaining three months)	$ 52
2020	74
2021	12
2022	7
2023	2
Thereafter	3
Net carrying amount, definite-lived intangible assets	$ 150	$ 302

Goodwill (Details) $ in Millions	9 Months Ended
Goodwill (Details) $ in Millions	Sep. 30, 2019 USD ($)
Goodwill [Roll Forward]
December 31, 2018	$ 9,762
Other	2
September 30, 2019	9,764
Activision
Goodwill [Roll Forward]
December 31, 2018	6,897
Other	1
September 30, 2019	6,898
Blizzard
Goodwill [Roll Forward]
December 31, 2018	190
Other	0
September 30, 2019	190
King
Goodwill [Roll Forward]
December 31, 2018	2,675
Other	1
September 30, 2019	$ 2,676

Fair Value Measurements - Foreign Currency Forward Contracts (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Net revenues	$ 1,282	$ 1,512	$ 4,503	$ 5,119
Foreign currency forward contracts \| Cash Flow Hedging \| Reclassification out of Accumulated Other Comprehensive Income
Derivatives, Fair Value [Line Items]
Net revenues	7	$ 3	24	$ (11)
Foreign currency forward contracts \| Designated as Hedging Instrument \| Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount	310		310		$ 723
Fair value gain (loss)	23		$ 23		12
Contract maturity (or less)			3 months
Net realized gains			$ 2
Deferred cash flow hedge gain (loss) in AOCI	2		2
Buy USD, Sell EUR \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	81		81		0
Fair value gain (loss)	5		5		0
Buy EUR, Sell USD \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	79		79		0
Fair value gain (loss)	(3)		(3)		0
Buy USD, Sell SEK \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	46		46		0
Fair value gain (loss)	2		2		0
Buy SEK, Sell USD \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	45		45		0
Fair value gain (loss)	(1)		(1)		0
Buy USD, Sell GBP \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	13		13		55
Fair value gain (loss)	1		1		1
Buy GBP, Sell USD \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	13		13		0
Fair value gain (loss)	$ 0		$ 0		$ 0

Fair Value Measurements Fair Value Measurements - Non-Recurring Basis (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Fair Value Measurements on a Non-Recurring Basis [Line Items]
Upward adjustment to equity investment		$ 38,000,000
Carrying value of the investment	$ 42,000,000			$ 42,000,000
Nonrecurring
Fair Value Measurements on a Non-Recurring Basis [Line Items]
Asset impairment charges	$ 0		$ 0	$ 0	$ 0

Deferred revenues (Details) - USD ($) $ in Billions	3 Months Ended		9 Months Ended
Deferred revenues (Details) - USD ($) $ in Billions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019
Revenue from Contract with Customer [Abstract]
Deferred revenues	$ 0.8		$ 0.8		$ 1.6
Revenue recognized included in beginning deferred revenue	$ 0.1	$ 0.1	$ 1.4	$ 1.6

Deferred revenues Deferred revenues - Remaining Performance Obligation (Details) $ in Billions	Sep. 30, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 2.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 1.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracted not recognized revenue, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 0.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracted not recognized revenue, period	1 year

Leases - Narrative (Details) $ in Millions	9 Months Ended
Leases - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Lease not yet commenced	$ 57
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Renewal term	1 year
Lease not yet commenced, term	2 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	10 years
Renewal term	5 years
Lease not yet commenced, term	5 years

Leases - Schedule of Lease Expense and Other Details Related to Operating Leases (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Operating leases
Operating lease costs	$ 19	$ 58
Variable lease costs	$ 6	16
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities		61
ROU assets obtained in exchange for new lease obligations		$ 55
Weighted Average Lease terms and discount rates
Remaining lease term	5 years 1 month 24 days	5 years 1 month 24 days
Discount rate	4.09%	4.09%

Leases - Schedule of Future Lease Payments Under Non-cancellable Operating Leases (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
2019 (remaining three months)	$ 14
2020	74
2021	56
2022	48
2023	42
Thereafter	74
Total future lease payments	308
Less imputed interest	(32)
Total lease liabilities	$ 276

Leases - Schedule of Operating ROU Assets and Lease Liabilities (Details) $ in Millions	Sep. 30, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Total lease liabilities	$ 276
Other assets
Lessee, Lease, Description [Line Items]
ROU assets	238
Accrued expenses and other current liabilities
Lessee, Lease, Description [Line Items]
Current lease liabilities	61
Other liabilities
Lessee, Lease, Description [Line Items]
Non-current lease liabilities	$ 215

Leases - Future Minimum Lease Payments Prior to Adoption of Lease Standard (Details) $ in Millions	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 80
2020	70
2021	53
2022	45
2023	38
Thereafter	60
Total	$ 346

Debt - Credit Facilities (Details) - Revolver - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,500	$ 1,500
Long-term line of credit	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt - Unsecured Senior Notes, Interest Expense and Financing Costs, and Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Amount outstanding	$ 2,700		$ 2,700		$ 2,700
Interest expense	21	$ 32	64	$ 113
Amortization of financing costs and discounts	1	$ 1	3	$ 5
Total Unsecured Senior Notes
Debt Instrument [Line Items]
Interest payable	14		14		15
Unsecured Debt \| 2021 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 650		$ 650		$ 650
Interest rate	2.30%		2.30%		2.30%
Unsecured Debt \| 2026 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 850		$ 850		$ 850
Interest rate	3.40%		3.40%		3.40%
Unsecured Debt \| 2026 Notes \| Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes					$ 800
Unsecured Debt \| 2022 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 400		$ 400		$ 400
Interest rate	2.60%		2.60%		2.60%
Unsecured Debt \| 2027 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 400		$ 400		$ 400
Interest rate	3.40%		3.40%		3.40%
Unsecured Debt \| 2027 Notes \| Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes					$ 376
Unsecured Debt \| 2047 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 400		$ 400		$ 400
Interest rate	4.50%		4.50%		4.50%
Unsecured Debt \| 2047 Notes \| Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes	$ 454		$ 454		$ 360

Debt - Summary of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Gross Carrying Amount	$ 2,700	$ 2,700
Unamortized Discount and Deferred Financing Costs	(26)	(29)
Net Carrying Amount	2,674	2,671
Unsecured Debt \| 2021 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	650	650
Unamortized Discount and Deferred Financing Costs	(2)	(3)
Net Carrying Amount	648	647
Unsecured Debt \| 2022 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(2)	(3)
Net Carrying Amount	398	397
Unsecured Debt \| 2026 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	850	850
Unamortized Discount and Deferred Financing Costs	(8)	(8)
Net Carrying Amount	842	842
Unsecured Debt \| 2027 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(5)	(5)
Net Carrying Amount	395	395
Unsecured Debt \| 2047 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(9)	(10)
Net Carrying Amount	$ 391	$ 390

Debt - Schedule of Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Maturities of Long-term Debt [Abstract]
2019 (remaining three months)	$ 0
2020	0
2021	650
2022	400
2023	0
Thereafter	1,650
Gross Carrying Amount	$ 2,700	$ 2,700

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 11,392	$ 9,462
Cumulative impact from adoption of new revenue accounting standard			$ 3
Other comprehensive income (loss) before reclassifications	26	11
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(32)	11
Ending balance	12,235	10,659
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(629)	(623)
Cumulative impact from adoption of new revenue accounting standard			3
Other comprehensive income (loss) before reclassifications	(5)	(7)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	0
Ending balance	(634)	(627)
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	23
Other comprehensive income (loss) before reclassifications	28
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(24)
Ending balance	27
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance		(15)
Cumulative impact from adoption of new revenue accounting standard			0
Other comprehensive income (loss) before reclassifications		14
Amounts reclassified from accumulated other comprehensive income (loss) into earnings		11
Ending balance		10
Unrealized gain (loss) on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	5	0
Cumulative impact from adoption of new revenue accounting standard			$ 0
Other comprehensive income (loss) before reclassifications	3	4
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(8)	0
Ending balance	0	4
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(601)	(638)
Ending balance	$ (607)	$ (613)

Operating Segments and Geographic Region (Details) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($) segment	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment					3
Segment Reporting Information [Line Items]
Segment revenues	$ 1,214			$ 1,658	$ 3,679	$ 4,427
Operating income	247			265	1,153	1,294
Net effect from recognition (deferral) of deferred net revenues	(68)			146	(824)	(692)
Net revenues	1,282			1,512	4,503	5,119
Amortization of intangible assets	(50)			(84)	(152)	(280)
Restructuring costs	(24)	$ (22)	$ (57)	0	(104)	0
Interest and other expense (income), net (Note 15)	(2)			13	(33)	67
Loss on extinguishment of debt	0			40	0	40
Income before income tax expense (benefit)	249			212	1,186	1,187
Long-lived assets	249				249		$ 282
Digital online channels
Segment Reporting Information [Line Items]
Segment revenues	975			1,435	3,049	3,838
Net effect from recognition (deferral) of deferred net revenues	(39)			159	(444)	(160)
Net revenues	1,014			1,276	3,493	3,998
Retail channels
Segment Reporting Information [Line Items]
Segment revenues	64			62	226	218
Net effect from recognition (deferral) of deferred net revenues	(29)			(14)	(373)	(546)
Net revenues	93			76	599	764
Other
Segment Reporting Information [Line Items]
Segment revenues	175			161	404	371
Net effect from recognition (deferral) of deferred net revenues	0			1	(7)	14
Net revenues	175			160	411	357
Console
Segment Reporting Information [Line Items]
Segment revenues	196			367	735	1,010
Net effect from recognition (deferral) of deferred net revenues	(45)			20	(589)	(720)
Net revenues	241			347	1,324	1,730
PC
Segment Reporting Information [Line Items]
Segment revenues	320			599	978	1,472
Net effect from recognition (deferral) of deferred net revenues	(21)			117	(218)	20
Net revenues	341			482	1,196	1,452
Mobile and ancillary
Segment Reporting Information [Line Items]
Segment revenues	523			531	1,562	1,574
Net effect from recognition (deferral) of deferred net revenues	(2)			8	(10)	(6)
Net revenues	525			523	1,572	1,580
Other
Segment Reporting Information [Line Items]
Segment revenues	175			161	404	371
Net effect from recognition (deferral) of deferred net revenues	0			1	(7)	14
Net revenues	175			160	411	357
Americas
Segment Reporting Information [Line Items]
Segment revenues	622			850	1,937	2,341
Net effect from recognition (deferral) of deferred net revenues	(33)			76	(469)	(399)
Net revenues	655			$ 774	2,406	$ 2,740
Long-lived assets	$ 179				$ 179		203
US \| Revenues \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Revenues as a percentage of consolidated net revenues	46.00%			46.00%	48.00%	47.00%
EMEA
Segment Reporting Information [Line Items]
Segment revenues	$ 426			$ 594	$ 1,240	$ 1,532
Net effect from recognition (deferral) of deferred net revenues	(26)			60	(285)	(242)
Net revenues	452			$ 534	1,525	$ 1,774
Long-lived assets	$ 58				$ 58		62
UK \| Revenues \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Revenues as a percentage of consolidated net revenues	13.00%			13.00%	10.00%	11.00%
Asia Pacific
Segment Reporting Information [Line Items]
Segment revenues	$ 166			$ 214	$ 502	$ 554
Net effect from recognition (deferral) of deferred net revenues	(9)			10	(70)	(51)
Net revenues	175			204	572	605
Long-lived assets	12				12		$ 17
Activision
Segment Reporting Information [Line Items]
Restructuring costs	(1)				(12)
Blizzard
Segment Reporting Information [Line Items]
Restructuring costs	(12)				(52)
King
Segment Reporting Information [Line Items]
Restructuring costs	(4)				(17)
Other segments
Segment Reporting Information [Line Items]
Restructuring costs	(7)				(23)
Reportable segments
Segment Reporting Information [Line Items]
Segment revenues	1,103			1,538	3,443	4,195
Operating income	294			485	900	1,275
Reportable segments \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	1,101			1,530	3,434	4,181
Reportable segments \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	2			8	9	14
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Segment revenues	209			397	794	1,047
Operating income	26			112	153	288
Net effect from recognition (deferral) of deferred net revenues	(43)			45	(648)	(770)
Net revenues	252			352	1,442	1,817
Reportable segments \| Activision \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	209			397	794	1,047
Reportable segments \| Activision \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Reportable segments \| Activision \| Digital online channels
Segment Reporting Information [Line Items]
Segment revenues	163			356	609	876
Net effect from recognition (deferral) of deferred net revenues	(16)			57	(285)	(234)
Net revenues	179			299	894	1,110
Reportable segments \| Activision \| Retail channels
Segment Reporting Information [Line Items]
Segment revenues	46			41	185	171
Net effect from recognition (deferral) of deferred net revenues	(27)			(12)	(363)	(536)
Net revenues	73			53	548	707
Reportable segments \| Activision \| Other
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Reportable segments \| Activision \| Console
Segment Reporting Information [Line Items]
Segment revenues	178			336	659	902
Net effect from recognition (deferral) of deferred net revenues	(36)			29	(563)	(695)
Net revenues	214			307	1,222	1,597
Reportable segments \| Activision \| PC
Segment Reporting Information [Line Items]
Segment revenues	22			56	120	132
Net effect from recognition (deferral) of deferred net revenues	(7)			16	(84)	(76)
Net revenues	29			40	204	208
Reportable segments \| Activision \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment revenues	9			5	15	13
Net effect from recognition (deferral) of deferred net revenues	0			0	(1)	1
Net revenues	9			5	16	12
Reportable segments \| Activision \| Other
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Reportable segments \| Activision \| Americas
Segment Reporting Information [Line Items]
Segment revenues	121			247	462	635
Net effect from recognition (deferral) of deferred net revenues	(20)			33	(390)	(439)
Net revenues	141			214	852	1,074
Reportable segments \| Activision \| EMEA
Segment Reporting Information [Line Items]
Segment revenues	63			117	252	326
Net effect from recognition (deferral) of deferred net revenues	(16)			8	(205)	(287)
Net revenues	79			109	457	613
Reportable segments \| Activision \| Asia Pacific
Segment Reporting Information [Line Items]
Segment revenues	25			33	80	86
Net effect from recognition (deferral) of deferred net revenues	(7)			4	(53)	(44)
Net revenues	32			29	133	130
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Segment revenues	394			635	1,122	1,606
Operating income	74			189	204	444
Net effect from recognition (deferral) of deferred net revenues	(23)			97	(167)	70
Net revenues	417			538	1,289	1,536
Reportable segments \| Blizzard \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	392			627	1,113	1,592
Reportable segments \| Blizzard \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	2			8	9	14
Reportable segments \| Blizzard \| Digital online channels
Segment Reporting Information [Line Items]
Segment revenues	314			581	922	1,434
Net effect from recognition (deferral) of deferred net revenues	(21)			101	(159)	79
Net revenues	335			480	1,081	1,355
Reportable segments \| Blizzard \| Retail channels
Segment Reporting Information [Line Items]
Segment revenues	18			21	41	47
Net effect from recognition (deferral) of deferred net revenues	(2)			(2)	(10)	(10)
Net revenues	20			23	51	57
Reportable segments \| Blizzard \| Other
Segment Reporting Information [Line Items]
Segment revenues	62			33	159	125
Net effect from recognition (deferral) of deferred net revenues	0			(2)	2	1
Net revenues	62			35	157	124
Reportable segments \| Blizzard \| Console
Segment Reporting Information [Line Items]
Segment revenues	18			31	76	108
Net effect from recognition (deferral) of deferred net revenues	(9)			(9)	(26)	(25)
Net revenues	27			40	102	133
Reportable segments \| Blizzard \| PC
Segment Reporting Information [Line Items]
Segment revenues	272			515	776	1,236
Net effect from recognition (deferral) of deferred net revenues	(14)			101	(133)	96
Net revenues	286			414	909	1,140
Reportable segments \| Blizzard \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment revenues	42			56	111	137
Net effect from recognition (deferral) of deferred net revenues	0			7	(10)	(2)
Net revenues	42			49	121	139
Reportable segments \| Blizzard \| Other
Segment Reporting Information [Line Items]
Segment revenues	62			33	159	125
Net effect from recognition (deferral) of deferred net revenues	0			(2)	2	1
Net revenues	62			35	157	124
Reportable segments \| Blizzard \| Americas
Segment Reporting Information [Line Items]
Segment revenues	193			285	533	759
Net effect from recognition (deferral) of deferred net revenues	(11)			43	(80)	43
Net revenues	204			242	613	716
Reportable segments \| Blizzard \| EMEA
Segment Reporting Information [Line Items]
Segment revenues	114			220	329	531
Net effect from recognition (deferral) of deferred net revenues	(10)			48	(71)	34
Net revenues	124			172	400	497
Reportable segments \| Blizzard \| Asia Pacific
Segment Reporting Information [Line Items]
Segment revenues	87			130	260	316
Net effect from recognition (deferral) of deferred net revenues	(2)			6	(16)	(7)
Net revenues	89			124	276	323
Reportable segments \| King
Segment Reporting Information [Line Items]
Segment revenues	500			506	1,527	1,542
Operating income	194			184	543	543
Net effect from recognition (deferral) of deferred net revenues	(2)			1	0	(5)
Net revenues	502			505	1,527	1,547
Reportable segments \| King \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	500			506	1,527	1,542
Reportable segments \| King \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Reportable segments \| King \| Digital online channels
Segment Reporting Information [Line Items]
Segment revenues	500			506	1,527	1,542
Net effect from recognition (deferral) of deferred net revenues	(2)			1	0	(5)
Net revenues	502			505	1,527	1,547
Reportable segments \| King \| Retail channels
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Reportable segments \| King \| Other
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Reportable segments \| King \| Console
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Reportable segments \| King \| PC
Segment Reporting Information [Line Items]
Segment revenues	28			36	91	118
Net effect from recognition (deferral) of deferred net revenues	0			0	(1)	0
Net revenues	28			36	92	118
Reportable segments \| King \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment revenues	472			470	1,436	1,424
Net effect from recognition (deferral) of deferred net revenues	(2)			1	1	(5)
Net revenues	474			469	1,435	1,429
Reportable segments \| King \| Other
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Reportable segments \| King \| Americas
Segment Reporting Information [Line Items]
Segment revenues	309			309	947	942
Net effect from recognition (deferral) of deferred net revenues	(2)			0	1	(3)
Net revenues	311			309	946	945
Reportable segments \| King \| EMEA
Segment Reporting Information [Line Items]
Segment revenues	137			144	417	446
Net effect from recognition (deferral) of deferred net revenues	0			1	0	(2)
Net revenues	137			143	417	448
Reportable segments \| King \| Asia Pacific
Segment Reporting Information [Line Items]
Segment revenues	54			53	163	154
Net effect from recognition (deferral) of deferred net revenues	0			0	(1)	0
Net revenues	54			53	164	154
Non-reportable segments
Segment Reporting Information [Line Items]
Segment revenues	113			128	245	246
Net effect from recognition (deferral) of deferred net revenues	0			3	(9)	13
Net revenues	113			125	254	233
Non-reportable segments \| Digital online channels
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Non-reportable segments \| Retail channels
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Segment revenues	113			128	245	246
Net effect from recognition (deferral) of deferred net revenues	0			3	(9)	13
Net revenues	113			125	254	233
Non-reportable segments \| Console
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Non-reportable segments \| PC
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Non-reportable segments \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Segment revenues	113			128	245	246
Net effect from recognition (deferral) of deferred net revenues	0			3	(9)	13
Net revenues	113			125	254	233
Non-reportable segments \| Americas
Segment Reporting Information [Line Items]
Segment revenues	0			13	0	13
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			13	0	13
Non-reportable segments \| EMEA
Segment Reporting Information [Line Items]
Segment revenues	113			115	245	233
Net effect from recognition (deferral) of deferred net revenues	0			3	(9)	13
Net revenues	113			112	254	220
Non-reportable segments \| Asia Pacific
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Segment revenues	(2)			(8)	(9)	(14)
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	(2)			(8)	(9)	(14)
Elimination of intersegment revenues \| Digital online channels
Segment Reporting Information [Line Items]
Segment revenues	(2)			(8)	(9)	(14)
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	(2)			(8)	(9)	(14)
Elimination of intersegment revenues \| Retail channels
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Elimination of intersegment revenues \| Console
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Elimination of intersegment revenues \| PC
Segment Reporting Information [Line Items]
Segment revenues	(2)			(8)	(9)	(14)
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	(2)			(8)	(9)	(14)
Elimination of intersegment revenues \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Segment revenues	0			0	0	0
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			0	0	0
Elimination of intersegment revenues \| Americas
Segment Reporting Information [Line Items]
Segment revenues	(1)			(4)	(5)	(8)
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	(1)			(4)	(5)	(8)
Elimination of intersegment revenues \| EMEA
Segment Reporting Information [Line Items]
Segment revenues	(1)			(2)	(3)	(4)
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	(1)			(2)	(3)	(4)
Elimination of intersegment revenues \| Asia Pacific
Segment Reporting Information [Line Items]
Segment revenues	0			(2)	(1)	(2)
Net effect from recognition (deferral) of deferred net revenues	0			0	0	0
Net revenues	0			(2)	(1)	(2)
Reconciling items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues	68			(146)	824	692
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	53			(89)	629	468
Share-based compensation expense	(27)			(55)	(127)	(166)
Amortization of intangible assets	(50)			(83)	(151)	(279)
Restructuring costs	(28)			0	(108)	0
Reconciling items \| Other segments
Segment Reporting Information [Line Items]
Operating income	$ 5			$ 7	$ 10	$ (4)

Restructuring - Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities by Cost Type (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restructuring Reserve [Roll Forward]
Balance, beginning	$ 27	$ 34	$ 0		$ 0
Costs charged to expense	24	22	57	$ 0	104	$ 0
Cash payments	(11)	(20)	(12)
Non-cash charge adjustment	(13)	(9)	(11)
Balance, ending	27	27	34		27
Severance and employee related costs
Restructuring Reserve [Roll Forward]
Balance, beginning	26	32	0		0
Costs charged to expense	5	9	43
Cash payments	(8)	(15)	(11)
Non-cash charge adjustment	0	0	0
Balance, ending	23	26	32		23
Facilities and related costs
Restructuring Reserve [Roll Forward]
Balance, beginning	0	0	0		0
Costs charged to expense	13	9	0
Cash payments	0	0	0
Non-cash charge adjustment	(13)	(9)	0
Balance, ending	0	0	0		0
Other costs
Restructuring Reserve [Roll Forward]
Balance, beginning	1	2	0		0
Costs charged to expense	6	4	14
Cash payments	(3)	(5)	(1)
Non-cash charge adjustment	0	0	(11)
Balance, ending	$ 4	$ 1	$ 2		$ 4

Restructuring - Total Restructuring and Related Costs by Segment (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	$ 24	$ 22	$ 57	$ 0	$ 104	$ 0
Activision
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	1				12
Blizzard
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	12				52
King
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	4				17
Other segments
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	7				$ 23
Cost of revenues-product sales: Product costs
Restructuring Cost and Reserve [Line Items]
Inventory write-down	$ 4

Restructuring - Narrative (Details) $ in Millions	9 Months Ended
Restructuring - Narrative (Details) $ in Millions	Sep. 30, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	$ 150
Severance and employee related costs
Restructuring Cost and Reserve [Line Items]
Percentage of aggregate charge	55.00%
Facilities and related costs
Restructuring Cost and Reserve [Line Items]
Percentage of aggregate charge	20.00%
Asset Write-Downs and Other Costs
Restructuring Cost and Reserve [Line Items]
Percentage of aggregate charge	25.00%

Restructuring - Schedule of Total Expected Pre-tax Restructuring Charges (Details) $ in Millions	Sep. 30, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	$ 150
Activision
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	15
Blizzard
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	66
King
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	27
Other segments
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	$ 42

Interest and Other Expense (Income), Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Income and Expenses [Abstract]
Interest income	$ (20)	$ (17)	$ (61)	$ (50)
Interest expense from debt and amortization of debt discount and deferred financing costs	23	33	68	118
Unrealized gain on equity investment	0	0	(38)	0
Other expense (income), net	(5)	(3)	(2)	(1)
Interest and other expense (income), net	$ (2)	$ 13	$ (33)	$ 67

Income Taxes (Details) € in Millions, $ in Millions, kr in Billions	3 Months Ended		9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 SEK (kr)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)
Income Tax [Line Items]
Income tax expense (benefit)	$ 45	$ (48)	$ 208	$ 25
Effective tax rate (in percent)	18.00%	(23.00%)	18.00%	2.00%
Statutory income tax rate (in percent)			21.00%
Swedish Tax Agency
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded					$ 359	kr 3.5
French Tax Authority
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded							$ 625	€ 571

Computation of Basic/Diluted Earnings Per Common Share - Computation EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Consolidated net income	$ 204	$ 328	$ 447	$ 260	$ 402	$ 500	$ 978	$ 1,162
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)	767			763			766	761
Employee stock options and awards (in shares)	4			8			4	10
Denominator for diluted earnings per common share - weighted-average common shares outstanding plus dilutive common shares under treasury stock method (in shares)	771			771			770	771
Basic earnings per common share (in dollars per share)	$ 0.27			$ 0.34			$ 1.28	$ 1.53
Diluted earnings per common share (in dollars per share)	$ 0.26			$ 0.34			$ 1.27	$ 1.51

- 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
-Publisher FASB
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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

Computation of Basic/Diluted Earnings Per Common Share - Weighted-Average Shares Excluded from the Computation of Diluted Earnings Per Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Restricted stock units and options with underlying performance measures that had not yet been met (in shares)	4	6	3	6
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options to purchase shares of common stock (in shares)	6	1	6	2

Capital Transactions - Repurchase Program (Details) - Share Repurchase Program 2019 - USD ($)	9 Months Ended
	Sep. 30, 2019	Jan. 31, 2019
Share Repurchase Program [Line Items]
Share repurchase program, dollar amount authorized		$ 1,500,000,000
Shares of common stock repurchased	0
Cost of common stock repurchased under the stock repurchase program	$ 0

Capital Transactions - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions					3 Months Ended		9 Months Ended
	May 09, 2019	Feb. 12, 2019	May 09, 2018	Feb. 08, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Dividends
Dividends per common share (in dollars per share)		$ 0.37		$ 0.34	$ 0.37	$ 0.34
Cash dividend payment	$ 283		$ 259				$ 283	$ 259

Label	Element	Value
Accounting Standards Update 2014-09 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 91,000,000
Accounting Standards Update 2014-09 [Member] \| AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	3,000,000
Accounting Standards Update 2014-09 [Member] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 88,000,000

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	$ 4,683	$ 4,121
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	4,652	4,107
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	31	14
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	4,616	3,925
Cash and cash equivalents \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	36	32
Cash and cash equivalents \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	4,616	3,925
Cash and cash equivalents \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	36	32
Cash and cash equivalents \| Significant Other Observable Inputs (Level 2) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Significant Other Observable Inputs (Level 2) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Significant Unobservable Inputs (Level 3) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Significant Unobservable Inputs (Level 3) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value		150
Other current assets \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	23	13
Other current assets \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	8	1
Other current assets \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value		150
Other current assets \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Significant Other Observable Inputs (Level 2) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value		0
Other current assets \| Significant Other Observable Inputs (Level 2) \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	23	13
Other current assets \| Significant Other Observable Inputs (Level 2) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	8	1
Other current assets \| Significant Unobservable Inputs (Level 3) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value		0
Other current assets \| Significant Unobservable Inputs (Level 3) \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Significant Unobservable Inputs (Level 3) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Accrued expenses and other liabilities \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value		(1)
Accrued expenses and other liabilities \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	(4)
Accrued expenses and other liabilities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value		0
Accrued expenses and other liabilities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	0
Accrued expenses and other liabilities \| Significant Other Observable Inputs (Level 2) \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value		(1)
Accrued expenses and other liabilities \| Significant Other Observable Inputs (Level 2) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	(4)
Accrued expenses and other liabilities \| Significant Unobservable Inputs (Level 3) \| Foreign currency forward contracts \| Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value		$ 0
Accrued expenses and other liabilities \| Significant Unobservable Inputs (Level 3) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	$ 0