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Recently Issued Accounting Pronouncements (Tables)

12 Months Ended

Dec. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

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



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

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 5,794	$ 4,225
Accounts receivable, net of allowances of $132 and $190, at December 31, 2019 and December 31, 2018, respectively	848	1,035
Inventories, net	32	43
Software development	322	264
Other current assets	296	539
Total current assets	7,292	6,106
Software development	54	65
Property and equipment, net	253	282
Deferred income taxes, net	1,293	458
Other assets	658	482
Intangible assets, net	531	735
Goodwill	9,764	9,762
Total assets	19,845	17,890
Current liabilities:
Accounts payable	292	253
Deferred revenues	1,375	1,493
Accrued expenses and other liabilities	1,248	896
Total current liabilities	2,915	2,642
Long-term debt, net	2,675	2,671
Deferred income taxes, net	505	18
Other liabilities	945	1,167
Total liabilities	7,040	6,498
Commitments and contingencies (Note 23)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,197,436,644 and 1,192,093,991 shares issued at December 31, 2019 and December 31, 2018, respectively	0	0
Additional paid-in capital	11,174	10,963
Less: Treasury stock, at cost, 428,676,471 shares at December 31, 2019 and December 31, 2018	(5,563)	(5,563)
Retained earnings	7,813	6,593
Accumulated other comprehensive loss	(619)	(601)
Total shareholders’ equity	12,805	11,392
Total liabilities and shareholders’ equity	$ 19,845	$ 17,890

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 1,503	$ 1,848	$ 273
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	5	(9)	36
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	(15)	38	(44)
Unrealized gains (losses) on investments, net of tax	(8)	5	(1)
Total other comprehensive income (loss)	(18)	34	(9)
Comprehensive income	$ 1,485	$ 1,882	$ 264

- Definition

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

+ References + Details

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental cash flow information

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



	For the Years Ended December 31,
	2019		2018		2017
Supplemental cash flow information:
Cash paid for income taxes, net of refunds	$	319	$	560	$	176
Cash paid for interest	86		150		145

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



	At December 31,
	2019		2018		2017
Beginning restricted cash	$	4	$	7	$	17
Ending restricted cash	4		4		7

Fair Value Measurements - Non-Recurring Basis (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Upward adjustment to equity investment	$ 38,000,000
Carrying value of the investment		$ 42,000,000
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment charges - nonrecurring		$ 0	$ 0	$ 0

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

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Cash flows from operating activities:

Net income

$ 1,503

$ 1,848

$ 273

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

Deferred income taxes

(352)

(35)

(181)

Provision for inventories

Non-cash operating lease cost

Depreciation and amortization

328

509

888

Amortization of capitalized software development costs and intellectual property licenses

^[1]

225

489

311

Loss on extinguishment of debt

Share-based compensation expense

^[2]

166

209

176

Unrealized gain on equity investment

(38)

Other

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

Accounts receivable, net

182

(114)

(165)

Inventories

(5)

(26)

Software development and intellectual property licenses

(275)

(372)

(301)

Other assets

164

(51)

(97)

Deferred revenues

(154)

(122)

220

Accounts payable

(65)

Accrued expenses and other liabilities

(77)

(554)

945

Net cash provided by operating activities

1,831

1,790

2,213

Cash flows from investing activities:

Proceeds from maturities of available-for-sale investments

153

116

Purchases of available-for-sale investments

(65)

(209)

(135)

Capital expenditures

(116)

(131)

(155)

Other investing activities

(6)

Net cash used in investing activities

(22)

(230)

(207)

Cash flows from financing activities:

Proceeds from issuance of common stock to employees

105

178

(59)

(94)

(56)

Dividends paid

(283)

(259)

(226)

Proceeds from debt issuances, net of discounts

3,741

Repayment of long-term debt

(1,740)

(4,251)

Premium payment for early redemption of note

(25)

Other financing activities

(1)

(10)

Net cash used in financing activities

(237)

(2,020)

(624)

Effect of foreign exchange rate changes on cash and cash equivalents

(3)

(31)

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

1,569

(491)

1,458

Cash and cash equivalents and restricted cash at beginning of period

4,229

4,720

3,262

Cash and cash equivalents and restricted cash at end of period

$ 5,798

$ 4,229

$ 4,720

[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.

Intangible Assets, Net (Details) - USD ($) $ in Millions	12 Months Ended
Intangible Assets, Net (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 1,828	$ 2,445
Accumulated amortization, definite-lived intangible assets	(1,730)	(2,143)
Net carrying amount, definite-lived intangible assets	98	302
Acquired Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, indefinite-lived intangible assets	433	433
Total intangible assets, net	531	735
Amortization expense disclosure
Amortization expense	204	371	$ 759
Activision trademark
Acquired Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, indefinite-lived intangible assets	386	386
Acquired trade names
Acquired Indefinite-lived Intangible Assets [Line Items]
Net carrying amount, indefinite-lived intangible assets	47	47
Internally-developed franchises
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	1,154	1,154
Accumulated amortization, definite-lived intangible assets	(1,105)	(1,032)
Net carrying amount, definite-lived intangible assets	$ 49	$ 122
Internally-developed franchises \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years	3 years
Internally-developed franchises \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	11 years	11 years
Developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 601	$ 601
Accumulated amortization, definite-lived intangible assets	(579)	(456)
Net carrying amount, definite-lived intangible assets	$ 22	$ 145
Developed software \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	2 years	2 years
Developed software \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	5 years	5 years
Customer base
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life		2 years
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
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 54	54
Accumulated amortization, definite-lived intangible assets	(30)	(23)
Net carrying amount, definite-lived intangible assets	$ 24	$ 31
Acquired trade names \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	7 years	7 years
Acquired trade names \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	10 years	10 years
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount, definite-lived intangible assets	$ 19	$ 19
Accumulated amortization, definite-lived intangible assets	(16)	(15)
Net carrying amount, definite-lived intangible assets	$ 3	$ 4
Other \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	1 year	1 year
Other \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years	15 years

Leases - Schedule of Future Lease Payments Under Non-cancellable Operating Leases (Details) $ in Millions	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 72
2021	59
2022	50
2023	44
2024	41
Thereafter	37
Total future lease payments	303
Less imputed interest	(30)
Total lease liabilities	$ 273

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

12 Months Ended

Dec. 31, 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 Years Ended December 31,
	2019			2018			2017
Interest income	$	(79	)	$	(65	)	$	(24	)
Interest expense from debt and amortization of debt discount and deferred financing costs	90			140			162
Unrealized gain on equity investment	(38		)	—			—
Other expense (income), net	1			(4		)	8
Interest and other expense (income), net	$	(26	)	$	71		$	146

Intangible Assets, Net

12 Months Ended

Dec. 31, 2019

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible Assets, Net

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



	At December 31, 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	$	(1,105	)	$	49
Developed software	2	-	5 years	601		(579		)	22
Trade names	7	-	10 years	54		(30		)	24
Other	1	-	15 years	19		(16		)	3
Total definite-lived intangible assets (1)				$	1,828	$	(1,730	)	$	98

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								$	386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	531



	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


(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.

Amortization expense of intangible assets was $204 million, $371 million, and $759 million for the years ended December 31, 2019, 2018, and 2017, respectively.

At December 31, 2019, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):



2020	$	75
2021	11
2022	7
2023	2
2024	1
Thereafter	2
Total	$	98

Software Development and Intellectual Property Licenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Software development and intellectual property licenses:
Internally-developed software costs	$ 345	$ 291
Payments made to third-party software developers	31	38
Total software development costs	376	329
Amortization:
Amortization of capitalized software development costs and intellectual property licenses	$ 241	$ 501	$ 314

Debt - Schedule of Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Maturities of Debt
2020	$ 0
2021	650
2022	400
2023	0
2024	0
Thereafter	1,650
Gross Carrying Amount	$ 2,700	$ 2,700

Share-Based Payments - Method and Assumptions on Valuation of Stock Options and Awards (Details) - Stock Option Plan - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Share-based Compensation Assumptions [Line Items]
Expected life (in years)	7 years 10 months 6 days	7 years 7 months 20 days	7 years 3 days
Volatility	30.00%	32.37%	35.00%
Risk free interest rate	1.90%	3.10%	2.14%
Dividend yield	0.76%	0.61%	0.50%
Weighted-average fair value at the grant date (in dollars per share)	$ 17.12	$ 21.03	$ 21.11
Expected stock volatility rate, low end of range	30.00%	31.72%	28.19%
Expected stock volatility rate, high end of range	38.17%	36.73%	35.00%

Debt - Credit Facilities (Details) - USD ($)	12 Months Ended
Debt - Credit Facilities (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Credit Agreement as Amended
Debt Instrument [Line Items]
Amount of letters of credit that can be issued under the Revolver	$ 50,000,000
Line of Credit
Debt Instrument [Line Items]
Debt covenant, consolidated total net debt ratio, maximum	375.00%
Debt instrument, covenant, consolidated total net debt ratio, qualifying acquisition	425.00%
Debt instrument, covenant, consolidated total assets ratio, maximum	7.50%
Revolver
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,500,000,000	$ 1,500,000,000
Revolver \| Line of Credit \| Credit Agreement as Amended
Debt Instrument [Line Items]
Amount drawn on the revolver	$ 0
Revolver \| Line of Credit \| Credit Agreement as Amended \| Federal Funds Rate
Debt Instrument [Line Items]
Base rate margin	0.50%
Revolver \| Line of Credit \| Credit Agreement as Amended \| LIBOR
Debt Instrument [Line Items]
Base rate margin	1.00%
Variable rate interest floor	0.00%
Revolver \| Line of Credit \| Credit Agreement as Amended \| LIBOR \| Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.875%
Revolver \| Line of Credit \| Credit Agreement as Amended \| LIBOR \| Maximum
Debt Instrument [Line Items]
Applicable margin (as a percent)	1.375%
Revolver \| Line of Credit \| Credit Agreement as Amended \| Base Rate
Debt Instrument [Line Items]
Variable rate interest floor	1.00%
Revolver \| Line of Credit \| Credit Agreement as Amended \| Base Rate \| Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.00%
Revolver \| Line of Credit \| Credit Agreement as Amended \| Base Rate \| Maximum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.375%

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

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

Assuming all contractual provisions are met, the total future minimum commitments for these and other contractual arrangements in place at December 31, 2019, are scheduled to be paid as follows (amounts in millions):



	Contractual Obligations (1)
	Facility and Equipment Leases		Developer and Hosting		Marketing		Long-Term Debt Obligations (2)		Total
For the years ending December 31,
2020	$	77	$	25	$	30	$	86	$	218
2021	71		6		—		736		813
2022	62		1		—		466		529
2023	56		—		—		60		116
2024	52		—		—		60		112
Thereafter	46		—		—		2,147		2,193
Total	$	364	$	32	$	30	$	3,555	$	3,981

(1)

We have omitted uncertain income tax liabilities from this table due to the inherent uncertainty regarding the timing of the potential issue resolution of the underlying matters. Specifically, either (a) the underlying positions have not been fully developed under audit to quantify at this time or (b) the years relating to the matters for certain jurisdictions are not currently under audit. At December 31, 2019, we had $438 million of net unrecognized tax benefits included “Other liabilities,” in our consolidated balance sheet.

Additionally, at December 31, 2019 we have a remaining net Transition Tax liability of $153 million associated with the U.S. Tax Reform Act. The remaining Transition Tax liability is payable over the next seven years and is not reflected in our Contractual Obligations table above.

(2)

Long-term debt obligations represent our obligations related to the contractual principal repayments and interest payments under the Notes, which are subject to fixed interest rates, as of December 31, 2019. There was no outstanding balance under our Revolver as of December 31, 2019. We have calculated the expected interest obligation based on the outstanding principal balance and interest rate applicable at December 31, 2019. Refer to Note 13 for additional information on our debt obligations.

Goodwill (Details) - USD ($)	12 Months Ended
Goodwill (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	$ 9,762,000,000	$ 9,763,000,000
Other	2,000,000	(1,000,000)
Goodwill, balance at end of period	9,764,000,000	9,762,000,000
Accumulated impairment losses	0	0	$ 0
Activision
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	6,897,000,000	6,898,000,000
Other	1,000,000	(1,000,000)
Goodwill, balance at end of period	6,898,000,000	6,897,000,000
Blizzard
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	190,000,000	190,000,000
Other	0	0
Goodwill, balance at end of period	190,000,000	190,000,000
King
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period	2,675,000,000	2,675,000,000
Other	1,000,000	0
Goodwill, balance at end of period	$ 2,676,000,000	$ 2,675,000,000

Share-Based Payments

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Payments

Activision Blizzard Equity Incentive Plans

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

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

As of the date it was approved by our shareholders, there were 46 million shares available for issuance under the 2014 Plan. The number of shares of our common stock reserved for issuance under the 2014 Plan has been, and may be further, increased from time to time by: (1) the number of shares relating to awards outstanding under any Prior Plan that: (i) expire, or are forfeited, terminated or canceled, without the issuance of shares; (ii) are settled in cash in lieu of shares; or (iii) are exchanged, prior to the issuance of shares of our common stock, for awards not involving our common stock; (2) if the exercise price of any option outstanding under any Prior Plans is, or the tax withholding requirements with respect to any award outstanding under any Prior Plans are, satisfied by withholding shares otherwise then deliverable in respect of the award or the actual or constructive transfer to the Company of shares already owned, the number of shares equal to the withheld or transferred shares; and (3) if a share appreciation right is exercised and settled in shares, a number of shares equal to the difference between the total number of shares with respect to which the award is exercised and the number of shares actually issued or transferred. As of December 31, 2019, we had approximately 24 million shares of our common stock reserved for future issuance under the 2014 Plan. Shares issued in connection with awards made under the 2014 Plan are generally issued as new stock issuances.

Fair Value Valuation Assumptions

Valuation of Stock Options

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

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



	Employee and Director Options
	For the Years Ended December 31,
	2019			2018			2017
Expected life (in years)	7.85			7.64			7.01
Volatility	30.00		%	32.37		%	35.00		%
Risk free interest rate	1.90		%	3.10		%	2.14		%
Dividend yield	0.76		%	0.61		%	0.50		%
Weighted-average grant date fair value	$	17.12		$	21.03		$	21.11
Stock price volatility range:
Low	30.00		%	31.72		%	28.19		%
High	38.17		%	36.73		%	35.00		%

Expected life

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

Volatility

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

Risk-free interest rate

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

Dividend yield

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

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

Valuation of Restricted Stock Units (“RSUs”)

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

Accuracy of Fair Value Estimates

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

Stock Option Activity

Stock option activity is as follows:



	Number of Shares (in thousands)		Weighted-average exercise price		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2018	17,137		$	39.73
Granted	3,992		49.14
Exercised	(3,847	)	27.31
Forfeited	(2,852	)	46.19
Expired	(401	)	46.63
Outstanding stock options at December 31, 2019	14,029		$	44.31	7.47	$	221
Vested and expected to vest at December 31, 2019	13,360		$	43.90	7.39	$	216
Exercisable at December 31, 2019	5,988		$	34.32	5.56	$	152

The aggregate intrinsic values in the table above represents the total pretax intrinsic value (i.e., the difference between our closing stock price on the last trading day of the period and the exercise price, times the number of shares for options where the closing stock price is greater than the exercise price) that would have been received by the option holders had all option holders exercised their options on that date. This amount changes based on the market value of our stock. The total intrinsic value of options actually exercised was $80 million, $196 million, and $372 million for the years ended December 31, 2019, 2018, and 2017, respectively. The total grant date fair value of options vested was $94 million, $45 million, and $47 million for the years ended December 31, 2019, 2018, and 2017, respectively.

At December 31, 2019, $78 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 1.33 years.

RSU Activity

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

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



	Number of shares		Weighted- Average Grant Date Fair Value
Unvested RSUs at December 31, 2018	10,623		$	40.39
Granted	4,426		45.55
Vested	(2,758	)	47.86
Forfeited	(2,963	)	54.61
Unvested RSUs at December 31, 2019	9,328		$	32.60

Certain of our performance-based RSUs did not have an accounting grant date as of December 31, 2019, as there is not a mutual understanding between the Company and the employee of the performance terms. Generally, these performance terms relate to operating income performance for future years where the performance goals have not yet been set. As of December 31, 2019, there were 3.2 million performance-based RSUs outstanding for which the accounting grant date has not been set, of which 1.9 million were 2019 grants. Accordingly, no grant date fair value was established and the weighted average grant date fair value calculated above for 2019 grants excludes these RSUs.

At December 31, 2019, approximately $96 million of total unrecognized compensation cost was related to RSUs and is expected to be recognized over a weighted-average period of 1.64 years. Of the total unrecognized compensation cost, $50 million was related to performance-based RSUs, which is expected to be recognized over a weighted-average period of 1.63 years. The total grant date fair value of vested RSUs was $147 million, $120 million and $64 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The income tax benefit from stock option exercises and RSU vestings was $47 million, $94 million, and $160 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Share-Based Compensation Expense

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



	For the Years Ended December 31,
	2019			2018			2017
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses	$	19		$	13		$	10
Cost of revenues—subscription, licensing, and other revenues: Game Operations and Distribution Costs	1			2			1
Cost of revenues—subscription, licensing, and other revenues: Software royalties, amortization, and intellectual property licenses	1			3			3
Product development	53			61			57
Sales and marketing	10			15			15
General and administrative	82			115			92
Share-based compensation expense before income taxes	166			209			178
Income tax benefit	(29		)	(46		)	(34		)
Total share-based compensation expense, net of income tax benefit	$	137		$	163		$	144

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 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 Year Ended December 31, 2019
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			Total
Balance at December 31, 2018	$	(629	)	$	5		$	23		$	(601	)
Other comprehensive income (loss) before reclassifications	5			—			24			29
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(8		)	(39		)	(47		)
Balance at December 31, 2019	$	(624	)	$	(3	)	$	8		$	(619	)



	For the Year Ended December 31, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			Total
Balance at December 31, 2017	$	(623	)	$	—		$	(15	)	$	(638	)
Cumulative impact from adoption of new revenue accounting standard	3			—			—			3
Other comprehensive income (loss) before reclassifications	(9		)	10			45			46
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(5		)	(7		)	(12		)
Balance at December 31, 2018	$	(629	)	$	5		$	23		$	(601	)

Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Cost of property and equipment	$ 1,002	$ 1,052
Less accumulated depreciation	(749)	(770)
Property and equipment, net	253	282
Depreciation expense	124	138	$ 130
Land
Property, Plant and Equipment [Line Items]
Cost of property and equipment	1	1
Buildings
Property, Plant and Equipment [Line Items]
Cost of property and equipment	4	4
Leasehold improvements
Property, Plant and Equipment [Line Items]
Cost of property and equipment	252	248
Computer equipment
Property, Plant and Equipment [Line Items]
Cost of property and equipment	654	700
Office furniture and other equipment
Property, Plant and Equipment [Line Items]
Cost of property and equipment	$ 91	$ 99

Operating Segments and Geographic Regions

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Operating Segments and Geographic Regions

Currently, we have three reportable segments—Activision, Blizzard, and King. Our operating segments are consistent with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense; amortization of intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, expenses, and accruals) related to acquisitions, associated integration activities, and financings; certain restructuring 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 the reportable segment net revenues and segment operating income are presented below (amounts in millions):



	Year Ended December 31, 2019
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,219	$	1,676	$	2,031	$	5,926
Intersegment net revenues (1)	—		43		—		43
Segment net revenues	$	2,219	$	1,719	$	2,031	$	5,969

Segment operating income	$	850	$	464	$	740	$	2,054

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

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

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

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


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

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



	Years Ended December 31,
	2019			2018			2017
Reconciliation to consolidated net revenues:
Segment net revenues	$	5,969		$	6,835		$	6,765
Revenues from non-reportable segments (1)	462			480			410
Net effect from recognition (deferral) of deferred net revenues (2)	101			238			(139		)
Elimination of intersegment revenues (3)	(43		)	(53		)	(19		)
Consolidated net revenues	$	6,489		$	7,500		$	7,017

Reconciliation to consolidated income before income tax expense:
Segment operating income	$	2,054		$	2,446		$	2,417
Operating income (loss) from non-reportable segments (1)	24			31			(19		)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)	52			100			(71		)
Share-based compensation expense	(166		)	(209		)	(178		)
Amortization of intangible assets	(203		)	(370		)	(757		)
Fees and other expenses related to the acquisition of King (4)	—			—			(15		)
Restructuring costs (5)	(137		)	(10		)	(15		)
Other non-cash charges (6)	—			—			(14		)
Discrete tax-related items (7)	(17		)	—			(39		)
Consolidated operating income	1,607			1,988			1,309
Interest and other expense (income), net	(26		)	71			146
Loss on extinguishment of debt	—			40			12
Consolidated income before income tax expense	$	1,633		$	1,877		$	1,151


(1)	Includes other income and expenses from operating segments managed outside the reportable segments, including our Distribution business. 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 fees and other expenses, such as legal, banking, and professional services fees, related to the acquisition of King and associated integration activities, including related debt financings.


(5)	Reflects restructuring initiatives, which include severance and other restructuring-related costs.


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


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

Due to requirements from our adoption of a new revenue accounting standard in 2018, net revenues by distribution channel for the years ended December 31, 2019 and 2018, include a reconciliation to our segment revenues as disclosed for each of our reportable segments above. Net revenues by distribution channel were as follows (amounts in millions):



	Year Ended December 31, 2019
	Activision			Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,366		$	1,580		$	2,029	$	—		$	(43	)	$	4,932
Retail channels	818			91			—		—			—			909
Other (2)	3			181			—		464			—			648
Total consolidated net revenues	$	2,187		$	1,852		$	2,029	$	464		$	(43	)	$	6,489

Change in deferred revenues:
Digital online channels (1)	$	122		$	(128	)	$	2	$	—		$	—		$	(4	)
Retail channels	(90		)	(5		)	—		—			—			(95		)
Other (2)	—			—			—		(2		)	—			(2		)
Total change in deferred revenues	$	32		$	(133	)	$	2	$	(2	)	$	—		$	(101	)

Segment net revenues:
Digital online channels (1)	$	1,488		$	1,452		$	2,031	$	—		$	(43	)	$	4,928
Retail channels	728			86			—		—			—			814
Other (2)	3			181			—		462			—			646
Total segment net revenues	$	2,219		$	1,719		$	2,031	$	462		$	(43	)	$	6,388



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

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

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



	Year Ended December 31, 2017
Net revenues by distribution channel:
Digital online channels (1)	$	5,479
Retail channels	1,033
Other (2)	505
Total consolidated net revenues	$	7,017


(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” primarily includes revenues from our Distribution business 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, were as follows (amounts in millions):



	Year Ended December 31, 2019
	Activision		Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	1,286	$	822		$	1,254	$	—		$	(21	)	$	3,341
EMEA (1)	691		543			557		464			(16		)	2,239
Asia Pacific	210		487			218		—			(6		)	909
Total consolidated net revenues	$	2,187	$	1,852		$	2,029	$	464		$	(43	)	$	6,489

Change in deferred revenues:
Americas	$	16	$	(62	)	$	2	$	—		$	—		$	(44	)
EMEA (1)	12		(57		)	—		(2		)	—			(47		)
Asia Pacific	4		(14		)	—		—			—			(10		)
Total change in deferred revenues	$	32	$	(133	)	$	2	$	(2	)	$	—		$	(101	)

Segment net revenues:
Americas	$	1,302	$	760		$	1,256	$	—		$	(21	)	$	3,297
EMEA (1)	703		486			557		462			(16		)	2,192
Asia Pacific	214		473			218		—			(6		)	899
Total segment net revenues	$	2,219	$	1,719		$	2,031	$	462		$	(43	)	$	6,388



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

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

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



	Year Ended December 31, 2017
Net revenues by geographic region:
Americas	$	3,607
EMEA (1)	2,464
Asia Pacific	946
Total consolidated net revenues	$	7,017


(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%, 46%, and 45% of consolidated net revenues for the years ended December 31, 2019, 2018, and 2017, respectively. The Company’s net revenues in the United Kingdom (“U.K.”) for each of the years ended December 31, 2019, 2018, and 2017 were 12% of consolidated net revenues. No other country’s net revenues exceeded 10% of consolidated net revenues for the years ended December 31, 2019, 2018, or 2017.

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, were as follows (amounts in millions):



	Year Ended December 31, 2019
	Activision			Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	1,783		$	137		$	—	$	—		$	—		$	1,920
PC	298			1,346			117		—			(43		)	1,718
Mobile and ancillary (1)	103			188			1,912		—			—			2,203
Other (2)	3			181			—		464			—			648
Total consolidated net revenues	$	2,187		$	1,852		$	2,029	$	464		$	(43	)	$	6,489

Change in deferred revenues:
Console	$	(36	)	$	(18	)	$	—	$	—		$	—		$	(54	)
PC	57			(110		)	—		—			—			(53		)
Mobile and ancillary (1)	11			(5		)	2		—			—			8
Other (2)	—			—			—		(2		)	—			(2		)
Total change in deferred revenues	$	32		$	(133	)	$	2	$	(2	)	$	—		$	(101	)

Segment net revenues:
Console	$	1,747		$	119		$	—	$	—		$	—		$	1,866
PC	355			1,236			117		—			(43		)	1,665
Mobile and ancillary (1)	114			183			1,914		—			—			2,211
Other (2)	3			181			—		462			—			646
Total segment net revenues	$	2,219		$	1,719		$	2,031	$	462		$	(43	)	$	6,388



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

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

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



	Year Ended December 31, 2017
Net revenues by platform:
Console	$	2,389
PC	2,042
Mobile and ancillary (1)	2,081
Other (2)	505
Total consolidated net revenues	$	7,017


(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” primarily includes revenues from our Distribution business and the Overwatch League.


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

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



	At December 31,
	2019		2018		2017
Long-lived assets* by geographic region:
Americas	$	322	$	203	$	197
EMEA	142		62		75
Asia Pacific	21		17		22
Total long-lived assets by geographic region	$	485	$	282	$	294


*	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, and beginning with 2019, as a result of our adoption of a new lease accounting standard, our lease ROU assets; all other long-term assets are not allocated by location.

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

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

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

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



	For the Years Ended December 31,
	2019			2018			2017
Income before income tax expense:
Domestic	$	328		$	432		$	185
Foreign	1,305			1,445			966
	$	1,633		$	1,877		$	1,151
Income tax expense (benefit):
Current:
Federal	$	136		$	(208	)	$	696
State	24			(15		)	26
Foreign	323			280			335
Total current	483			57			1,057
Deferred:
Federal	781			(153		)	(111		)
State	(16		)	106			(32		)
Foreign	(1,118		)	19			(36		)
Total deferred	(353		)	(28		)	(179		)

Income tax expense	$	130		$	29		$	878

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

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



	For the Years Ended December 31,
	2019					2018					2017
Federal income tax provision at statutory rate	$	343		21	%	$	394		21	%	$	403		35	%
State taxes, net of federal benefit	20			1		36			2		4			—
Research and development credits	(38		)	(2	)	(46		)	(2	)	(26		)	(2	)
Foreign rate differential	(104		)	(7	)	(198		)	(11	)	(271		)	(24	)
Change in tax reserves	96			6		285			15		291			25
Acquired net operating loss utilization	—			—		—			—		(36		)	(3	)
Audit settlements	54			3		(115		)	(6	)	—			—
Excess tax benefits related to share-based payments	(2		)	—		(58		)	(3	)	(113		)	(10	)
U.S. Tax Reform Act	—			—		(340		)	(18	)	636			55
Change in valuation allowance	11			1		61			3		—			—
Intra-entity IP Transfer	(230		)	(14	)	—			—		—			—
Other	(20		)	(1	)	10			1		(10		)	—
Income tax expense	$	130		8	%	$	29		2	%	$	878		76	%

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

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



	As of December 31,
	2019			2018
Deferred tax assets:
Allowance for sales returns and price protection	$	19		$	25
Accrued expenses	28			26
Deferred revenue	119			136
Tax attributes carryforwards	93			81
Share-based compensation	54			69
Intangibles	1,289			43
U.S. deferred taxes on foreign earnings	—			318
Capitalized software development expenses	67			—
Other	109			28
Deferred tax assets	1,778			726
Valuation allowance	(181		)	(61		)
Deferred tax assets, net of valuation allowance	1,597			665
Deferred tax liabilities:
Intangibles	(142		)	(140		)
Capitalized software development expenses	—			(57		)
U.S. deferred taxes on foreign earnings	(594		)	—
Other	(73		)	(26		)
Deferred tax liabilities	(809		)	(223		)
Net deferred tax assets	$	788		$	442

Reconciliation of unrecognized tax benefits for the period

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



	For the Years Ended December 31,
	2019			2018			2017
Unrecognized tax benefits balance at January 1	$	926		$	1,138		$	846
Gross increase for tax positions taken during a prior year	151			103			66
Gross decrease for tax positions taken during a prior year	(168		)	(123		)	—
Gross increase for tax positions taken during the current year	291			132			229
Settlement with taxing authorities	(163		)	(312		)	(1		)
Lapse of statute of limitations	—			(12		)	(2		)
Unrecognized tax benefits balance at December 31	$	1,037		$	926		$	1,138

Description of Business (Details) $ in Millions	3 Months Ended								12 Months Ended
Description of Business (Details) $ in Millions	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Reportable Segments
Number of reportable segments \| segment									3
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues	$ 1,986	$ 1,282	$ 1,396	$ 1,825	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 6,489	$ 7,500	$ 7,017
Operating income	$ 454	$ 247	$ 336	$ 570	$ 694	$ 265	$ 434	$ 595	$ 1,607	1,988	$ 1,309
Bungie, Inc. - Destiny Publishing Rights
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenues										164
Operating income										$ 91

Restructuring - Total Restructuring and Related Costs by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	$ 132	$ 10	$ 15
Activision
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	19
Blizzard
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	68
King
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	20
Other segments
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	$ 25

Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax expense reduction	$ (130)	$ (29)	$ (878)
Financial Instruments
Maximum contractual terms of foreign exchange forward contracts	1 year
Minimum
Capitalized Software Development Costs [Line Items]
Amortization period for capitalized software development costs	6 months
Maximum
Capitalized Software Development Costs [Line Items]
Amortization period for capitalized software development costs	2 years
Apple \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	17.00%	15.00%	16.00%
Sony \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	11.00%	13.00%	14.00%
Sony \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	18.00%	15.00%
Google \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	13.00%	11.00%	10.00%
NetEase \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk		12.00%
Microsoft \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	11.00%
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

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

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

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



	Employee and Director Options
	For the Years Ended December 31,
	2019			2018			2017
Expected life (in years)	7.85			7.64			7.01
Volatility	30.00		%	32.37		%	35.00		%
Risk free interest rate	1.90		%	3.10		%	2.14		%
Dividend yield	0.76		%	0.61		%	0.50		%
Weighted-average grant date fair value	$	17.12		$	21.03		$	21.11
Stock price volatility range:
Low	30.00		%	31.72		%	28.19		%
High	38.17		%	36.73		%	35.00		%

Schedule of stock option activity

Stock option activity is as follows:



	Number of Shares (in thousands)		Weighted-average exercise price		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2018	17,137		$	39.73
Granted	3,992		49.14
Exercised	(3,847	)	27.31
Forfeited	(2,852	)	46.19
Expired	(401	)	46.63
Outstanding stock options at December 31, 2019	14,029		$	44.31	7.47	$	221
Vested and expected to vest at December 31, 2019	13,360		$	43.90	7.39	$	216
Exercisable at December 31, 2019	5,988		$	34.32	5.56	$	152

Schedule of restricted stock units activity



	Number of shares		Weighted- Average Grant Date Fair Value
Unvested RSUs at December 31, 2018	10,623		$	40.39
Granted	4,426		45.55
Vested	(2,758	)	47.86
Forfeited	(2,963	)	54.61
Unvested RSUs at December 31, 2019	9,328		$	32.60

Schedule of share-based compensation expense

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



	For the Years Ended December 31,
	2019			2018			2017
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses	$	19		$	13		$	10
Cost of revenues—subscription, licensing, and other revenues: Game Operations and Distribution Costs	1			2			1
Cost of revenues—subscription, licensing, and other revenues: Software royalties, amortization, and intellectual property licenses	1			3			3
Product development	53			61			57
Sales and marketing	10			15			15
General and administrative	82			115			92
Share-based compensation expense before income taxes	166			209			178
Income tax benefit	(29		)	(46		)	(34		)
Total share-based compensation expense, net of income tax benefit	$	137		$	163		$	144

Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Marketing and Advertising Expense [Abstract]
Advertising expense included in sales and marketing expense	$ 587	$ 631	$ 708

Fair Value Measurements - Foreign Currency Forward Contracts (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Net revenues	$ 1,986	$ 1,282	$ 1,396	$ 1,825	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 6,489	$ 7,500	$ 7,017
Buy USD, Sell Euro \| Designated as Hedges \| Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	350				723				350	723
Fair value of foreign currency forward contracts	(2)				12				(2)	12
Foreign currency forward contracts \| Cash Flow Hedging \| Reclassification out of Accumulated Other Comprehensive Income
Derivatives, Fair Value [Line Items]
Net revenues									$ 39	7	$ (1)
Foreign currency forward contracts \| Designated as Hedges \| Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Maximum length of time over which our foreign currency forward contracts mature									12 months
Deferred cash flow hedge gain (loss) to be reclassified within twelve months									$ 10
Deferred cash flow hedge gain (loss) in AOCI	10								10
Buy USD, Sell GBP \| Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	25				55				25	55
Fair value of foreign currency forward contracts	$ (2)				$ 1				$ (2)	$ 1

Income Taxes - Reconciliation of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of unrecognized tax benefits
Unrecognized tax benefits balance at January 1		$ 926	$ 1,138	$ 846
Gross increase for tax positions taken during a prior year		151	103	66
Gross decrease for tax positions taken during a prior year		(168)	(123)	0
Gross increase for tax positions taken during the current year		291	132	229
Settlement with taxing authorities	$ (437)	(163)	(312)	(1)
Lapse of statute of limitations		0	(12)	(2)
Unrecognized tax benefits balance at December 31		$ 1,037	$ 926	$ 1,138

Fair Value Measurements

12 Months Ended

Dec. 31, 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 December 31, 2019 Using
	As of December 31, 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	$	5,320		$	5,320	$	—		$	—	Cash and cash equivalents
Foreign government treasury bills	37			37		—			—		Cash and cash equivalents
U.S. treasuries and government agency securities	65			65		—			—		Other current assets
Total recurring fair value measurements	$	5,422		$	5,422	$	—		$	—

Financial Liabilities:
Foreign currency forward contracts not designated as hedges	$	(2	)	$	—	$	(2	)	$	—	Accrued expenses and other liabilities
Foreign currency forward contracts designated as hedges	$	(2	)	$	—	$	(2	)	$	—	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 December 31, 2019					As of December 31, 2018
	Notional amount		Fair value gain (loss)			Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell Euro	$	350	$	(2	)	$	723	$	12

At December 31, 2019, our Cash Flow Hedges have remaining maturities of twelve months or less. Additionally, $10 million of net realized but unrecognized gains are recorded within “Accumulated other comprehensive income (loss)” at December 31, 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 are as follows (amounts in millions):



	For the Years Ended December 31,
	2019		2018		2017			Statement of Operations Classification
Cash Flow Hedges	$	39	$	7	$	(1	)	Net revenues

Foreign Currency Forward Contracts Not Designated as Hedges

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



	As of December 31, 2019					As of December 31, 2018
	Notional amount		Fair value gain (loss)			Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell GBP	$	25	$	(2	)	$	55	$	1

During the years ended December 31, 2019, 2018, and 2017 pre-tax net gains associated with these forward contracts were recorded in “General and administrative expenses” and were not material.

Fair Value Measurements on a Non-Recurring Basis

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

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 consolidated statement of operations. As of December 31, 2019, the carrying value of the investment is $42 million and is recorded in “Other assets” on our 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 years ended December 31, 2019, 2018, and 2017, 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

Debt - Unsecured Senior Notes and Interest Expense and Financing Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Amount outstanding	$ 2,700	$ 2,700
Interest expense	86	134	$ 150
Amortization of debt discount and deferred financing costs	4	6	$ 12
Notes
Debt Instrument [Line Items]
Accrued interest payable	$ 15	15
Unsecured Notes
Debt Instrument [Line Items]
Redemption percentage of aggregate principal amount plus a make-whole premium	100.00%
Redemption price percentage	100.00%
Percentage of principal repayable to option holders upon certain criteria	101.00%
Unsecured Notes \| 2021 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 650	$ 650
Interest rate	2.30%	2.30%
Unsecured Notes \| 2022 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 400	$ 400
Interest rate	2.60%	2.60%
Unsecured Notes \| 2026 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 850	$ 850
Interest rate	3.40%	3.40%
Unsecured Notes \| 2027 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 400	$ 400
Interest rate	3.40%	3.40%
Unsecured Notes \| 2047 Notes
Debt Instrument [Line Items]
Amount outstanding	$ 400	$ 400
Interest rate	4.50%	4.50%

Capital Transactions - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions									12 Months Ended
	Feb. 06, 2020	May 09, 2019	Feb. 12, 2019	May 09, 2018	Feb. 08, 2018	May 26, 2017	May 10, 2017	Feb. 09, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Dividends per common share (in dollars per share)			$ 0.37		$ 0.34			$ 0.30	$ 0.37	$ 0.34	$ 0.30
Cash dividend payment		$ 283		$ 259			$ 226		$ 283	$ 259	$ 226
Dividend equivalent payment						$ 0
Subsequent Events
Class of Stock [Line Items]
Dividends per common share (in dollars per share)	$ 0.41

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] \| Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	88,000,000
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

Restructuring (Tables)

12 Months Ended

Dec. 31, 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 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	76			29			27			132
Cash payments	(44		)	—			(12		)	(56		)
Non-cash charge adjustment (1)	—			(29		)	(12		)	(41		)
Balance at December 31, 2019	$	32		$	—		$	3		$	35

(1)

Adjustments relate to non-cash charges included in “Costs charged to expense” for the write-down of assets from canceled projects and the write-down of assets for our lease facilities, inclusive of lease right-of-use assets and associated fixed assets, that were vacated.

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

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):



	Total Expected Charges
Activision	$	25
Blizzard	105
King	20
Other segments (1)	40
Total	$	190

(1)

Includes charges for operating segments managed outside the reportable segments and our corporate and administrative functions.

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



	Year Ended December 31, 2019
Activision	$	19
Blizzard	68
King	20
Other segments (1)	25
Total	$	132

(1)

Includes charges for operating segments managed outside the reportable segments and our corporate and administrative functions.

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 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	29	46
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(47)	(12)
Ending balance	12,805	11,392
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(601)	(638)
Ending balance	(619)	(601)
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	(9)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	0
Ending balance	(624)	(629)
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	0	10
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(8)	(5)
Ending balance	(3)	5
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	23	(15)
Cumulative impact from adoption of new revenue accounting standard			$ 0
Other comprehensive income (loss) before reclassifications	24	45
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(39)	(7)
Ending balance	$ 8	$ 23

Restructuring - Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities by Cost Type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Reserve [Roll Forward]
Balance, beginning	$ 0
Costs charged to expense	132	$ 10	$ 15
Cash payments	(56)
Non-cash charge adjustment	(41)
Balance, ending	35	0
Severance and employee related costs
Restructuring Reserve [Roll Forward]
Balance, beginning	0
Costs charged to expense	76
Cash payments	(44)
Non-cash charge adjustment	0
Balance, ending	32	0
Facilities and related costs
Restructuring Reserve [Roll Forward]
Balance, beginning	0
Costs charged to expense	29
Cash payments	0
Non-cash charge adjustment	(29)
Balance, ending	0	0
Other costs
Restructuring Reserve [Roll Forward]
Balance, beginning	0
Costs charged to expense	27
Cash payments	(12)
Non-cash charge adjustment	(12)
Balance, ending	$ 3	$ 0

Software Development and Intellectual Property Licenses

12 Months Ended

Dec. 31, 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 December 31,
	2019		2018
Internally-developed software costs	$	345	$	291
Payments made to third-party software developers	31		38
Total software development costs	$	376	$	329

As of both December 31, 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 Years Ended December 31,
	2019		2018		2017
Amortization of capitalized software development costs and intellectual property licenses	$	241	$	501	$	314

Write-offs and impairments of capitalized software development costs and intellectual property licenses were not material for the years ended December 31, 2019, 2018, and 2017.

Operating Segments and Geographic Regions (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment									3
Segment Reporting Information [Line Items]
Segment net revenues									$ 6,388	$ 7,262
Operating income	$ 454	$ 247	$ 336	$ 570	$ 694	$ 265	$ 434	$ 595	1,607	1,988	$ 1,309
Net effect from recognition (deferral) of deferred net revenues (2)									(101)	(238)
Net revenues	1,986	$ 1,282	$ 1,396	$ 1,825	2,381	$ 1,512	$ 1,641	$ 1,965	6,489	7,500	7,017
Share-based compensation expense									(166)	(209)	(178)
Amortization of intangible assets									(204)	(371)	(759)
Restructuring costs									(132)	(10)	(15)
Interest and other expense (income), net (Note 18)									(26)	71	146
Loss on extinguishment of debt									0	40	12
Income before income tax expense									1,633	1,877	1,151
Long-lived assets	485				282				485	282	294
Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									4,928	5,718
Net effect from recognition (deferral) of deferred net revenues (2)									(4)	(68)
Net revenues									4,932	5,786	5,479
Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									814	916
Net effect from recognition (deferral) of deferred net revenues (2)									(95)	(191)
Net revenues									909	1,107	1,033
Other
Segment Reporting Information [Line Items]
Segment net revenues									646	628
Net effect from recognition (deferral) of deferred net revenues (2)									(2)	21
Net revenues									648	607	505
Console
Segment Reporting Information [Line Items]
Segment net revenues									1,866	2,273
Net effect from recognition (deferral) of deferred net revenues (2)									(54)	(265)
Net revenues									1,920	2,538	2,389
PC
Segment Reporting Information [Line Items]
Segment net revenues									1,665	2,189
Net effect from recognition (deferral) of deferred net revenues (2)									(53)	9
Net revenues									1,718	2,180	2,042
Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									2,211	2,172
Net effect from recognition (deferral) of deferred net revenues (2)									8	(3)
Net revenues									2,203	2,175	2,081
Other
Segment Reporting Information [Line Items]
Segment net revenues									646	628
Net effect from recognition (deferral) of deferred net revenues (2)									(2)	21
Net revenues									648	607	505
Americas
Segment Reporting Information [Line Items]
Segment net revenues									3,297	3,729
Net effect from recognition (deferral) of deferred net revenues (2)									(44)	(151)
Net revenues									3,341	3,880	3,607
Long-lived assets	322				203				322	203	197
EMEA
Segment Reporting Information [Line Items]
Segment net revenues									2,192	2,527
Net effect from recognition (deferral) of deferred net revenues (2)									(47)	(91)
Net revenues									2,239	2,618	2,464
Long-lived assets	142				62				142	62	75
Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									899	1,006
Net effect from recognition (deferral) of deferred net revenues (2)									(10)	4
Net revenues									909	1,002	946
Long-lived assets	$ 21				$ 17				$ 21	$ 17	$ 22
Geographic Concentration Risk \| Revenues \| US
Segment Reporting Information [Line Items]
Percentage of concentration risk									46.00%	46.00%	45.00%
Geographic Concentration Risk \| Revenues \| UK
Segment Reporting Information [Line Items]
Percentage of concentration risk									12.00%	12.00%	12.00%
Activision
Segment Reporting Information [Line Items]
Restructuring costs									$ (19)
Blizzard
Segment Reporting Information [Line Items]
Restructuring costs									(68)
King
Segment Reporting Information [Line Items]
Restructuring costs									(20)
Other segments
Segment Reporting Information [Line Items]
Restructuring costs									(25)
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues									5,969	$ 6,835	$ 6,765
Operating income									2,054	2,446	2,417
Reportable segments \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									5,926	6,782	6,746
Reportable segments \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									43	53	19
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Segment net revenues									2,219	2,458	2,628
Operating income									850	1,011	1,005
Net effect from recognition (deferral) of deferred net revenues (2)									32	(280)
Net revenues									2,187	2,738
Reportable segments \| Activision \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									2,219	2,458	2,628
Reportable segments \| Activision \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									0	0	0
Reportable segments \| Activision \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									1,488	1,644
Net effect from recognition (deferral) of deferred net revenues (2)									122	(96)
Net revenues									1,366	1,740
Reportable segments \| Activision \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									728	814
Net effect from recognition (deferral) of deferred net revenues (2)									(90)	(184)
Net revenues									818	998
Reportable segments \| Activision \| Other
Segment Reporting Information [Line Items]
Segment net revenues									3	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									3	0
Reportable segments \| Activision \| Console
Segment Reporting Information [Line Items]
Segment net revenues									1,747	2,094
Net effect from recognition (deferral) of deferred net revenues (2)									(36)	(257)
Net revenues									1,783	2,351
Reportable segments \| Activision \| PC
Segment Reporting Information [Line Items]
Segment net revenues									355	345
Net effect from recognition (deferral) of deferred net revenues (2)									57	(23)
Net revenues									298	368
Reportable segments \| Activision \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									114	19
Net effect from recognition (deferral) of deferred net revenues (2)									11	0
Net revenues									103	19
Reportable segments \| Activision \| Other
Segment Reporting Information [Line Items]
Segment net revenues									3	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									3	0
Reportable segments \| Activision \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									1,302	1,459
Net effect from recognition (deferral) of deferred net revenues (2)									16	(163)
Net revenues									1,286	1,622
Reportable segments \| Activision \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									703	770
Net effect from recognition (deferral) of deferred net revenues (2)									12	(127)
Net revenues									691	897
Reportable segments \| Activision \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									214	229
Net effect from recognition (deferral) of deferred net revenues (2)									4	10
Net revenues									210	219
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues									1,719	2,291	2,139
Operating income									464	685	712
Net effect from recognition (deferral) of deferred net revenues (2)									(133)	25
Net revenues									1,852	2,266
Reportable segments \| Blizzard \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									1,676	2,238	2,120
Reportable segments \| Blizzard \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									43	53	19
Reportable segments \| Blizzard \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									1,452	2,041
Net effect from recognition (deferral) of deferred net revenues (2)									(128)	32
Net revenues									1,580	2,009
Reportable segments \| Blizzard \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									86	102
Net effect from recognition (deferral) of deferred net revenues (2)									(5)	(7)
Net revenues									91	109
Reportable segments \| Blizzard \| Other
Segment Reporting Information [Line Items]
Segment net revenues									181	148
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									181	148
Reportable segments \| Blizzard \| Console
Segment Reporting Information [Line Items]
Segment net revenues									119	179
Net effect from recognition (deferral) of deferred net revenues (2)									(18)	(8)
Net revenues									137	187
Reportable segments \| Blizzard \| PC
Segment Reporting Information [Line Items]
Segment net revenues									1,236	1,744
Net effect from recognition (deferral) of deferred net revenues (2)									(110)	33
Net revenues									1,346	1,711
Reportable segments \| Blizzard \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									183	220
Net effect from recognition (deferral) of deferred net revenues (2)									(5)	0
Net revenues									188	220
Reportable segments \| Blizzard \| Other
Segment Reporting Information [Line Items]
Segment net revenues									181	148
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									181	148
Reportable segments \| Blizzard \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									760	1,019
Net effect from recognition (deferral) of deferred net revenues (2)									(62)	15
Net revenues									822	1,004
Reportable segments \| Blizzard \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									486	708
Net effect from recognition (deferral) of deferred net revenues (2)									(57)	16
Net revenues									543	692
Reportable segments \| Blizzard \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									473	564
Net effect from recognition (deferral) of deferred net revenues (2)									(14)	(6)
Net revenues									487	570
Reportable segments \| King
Segment Reporting Information [Line Items]
Segment net revenues									2,031	2,086	1,998
Operating income									740	750	700
Net effect from recognition (deferral) of deferred net revenues (2)									2	(4)
Net revenues									2,029	2,090
Reportable segments \| King \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues									2,031	2,086	1,998
Reportable segments \| King \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues									0	0	0
Reportable segments \| King \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									2,031	2,086
Net effect from recognition (deferral) of deferred net revenues (2)									2	(4)
Net revenues									2,029	2,090
Reportable segments \| King \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Reportable segments \| King \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Reportable segments \| King \| Console
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Reportable segments \| King \| PC
Segment Reporting Information [Line Items]
Segment net revenues									117	153
Net effect from recognition (deferral) of deferred net revenues (2)									0	(1)
Net revenues									117	154
Reportable segments \| King \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									1,914	1,933
Net effect from recognition (deferral) of deferred net revenues (2)									2	(3)
Net revenues									1,912	1,936
Reportable segments \| King \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Reportable segments \| King \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									1,256	1,266
Net effect from recognition (deferral) of deferred net revenues (2)									2	(3)
Net revenues									1,254	1,269
Reportable segments \| King \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									557	598
Net effect from recognition (deferral) of deferred net revenues (2)									0	(1)
Net revenues									557	599
Reportable segments \| King \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									218	222
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									218	222
Non-reportable segments
Segment Reporting Information [Line Items]
Segment net revenues									462	480	410
Net effect from recognition (deferral) of deferred net revenues (2)									(2)	21
Net revenues									464	459
Non-reportable segments \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Non-reportable segments \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Segment net revenues									462	480
Net effect from recognition (deferral) of deferred net revenues (2)									(2)	21
Net revenues									464	459
Non-reportable segments \| Console
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Non-reportable segments \| PC
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Non-reportable segments \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Segment net revenues									462	480
Net effect from recognition (deferral) of deferred net revenues (2)									(2)	21
Net revenues									464	459
Non-reportable segments \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									0	13
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	13
Non-reportable segments \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									462	467
Net effect from recognition (deferral) of deferred net revenues (2)									(2)	21
Net revenues									464	446
Non-reportable segments \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Reconciliation items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues (2)									101	238	(139)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)									52	100	(71)
Share-based compensation expense									(166)	(209)	(178)
Amortization of intangible assets									(203)	(370)	(757)
Fees and other expenses related to the acquisition of King									0	0	(15)
Restructuring costs									(137)	(10)	(15)
Other non-cash charges									0	0	(14)
Discrete tax-related items									(17)	0	(39)
Reconciliation items \| Other segments
Segment Reporting Information [Line Items]
Operating income									24	31	(19)
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Segment net revenues									(43)	(53)
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									(43)	(53)
Elimination of intersegment revenues \| Digital online channels
Segment Reporting Information [Line Items]
Segment net revenues									(43)	(53)
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									(43)	(53)
Elimination of intersegment revenues \| Retail channels
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Elimination of intersegment revenues \| Console
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Elimination of intersegment revenues \| PC
Segment Reporting Information [Line Items]
Segment net revenues									(43)	(53)
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									(43)	(53)
Elimination of intersegment revenues \| Mobile and ancillary
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Segment net revenues									0	0
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									0	0
Elimination of intersegment revenues \| Americas
Segment Reporting Information [Line Items]
Segment net revenues									(21)	(28)
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									(21)	(28)
Elimination of intersegment revenues \| EMEA
Segment Reporting Information [Line Items]
Segment net revenues									(16)	(16)
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									(16)	(16)
Elimination of intersegment revenues \| Asia Pacific
Segment Reporting Information [Line Items]
Segment net revenues									(6)	(9)
Net effect from recognition (deferral) of deferred net revenues (2)									0	0
Net revenues									(6)	(9)
Elimination of intersegment revenues \| Blizzard
Segment Reporting Information [Line Items]
Net revenues									$ (43)	$ (53)	$ (19)

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

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

Credit Facilities

At December 31, 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.

The Revolver is scheduled to mature on August 24, 2023. Borrowings under the Revolver will bear interest, at the Company’s option, at either (1) a base rate equal to the highest of (i) the federal funds rate, plus 0.5%, (ii) the prime commercial lending rate of Bank of America, N.A. and (iii) the London Interbank Offered Rate (“LIBOR”) for an interest period of one month beginning on such day plus 1.00%, or (2) LIBOR, in each case, plus an applicable interest margin. LIBOR will be subject to a floor of 0% and base rate will be subject to an effective floor of 1.00%. The applicable interest margin for borrowings under the Revolver will range from 0.875% to 1.375% for LIBOR borrowings and from 0% to 0.375% for base rate borrowings and will be determined by reference to a pricing grid based on the Company’s credit ratings. Up to $50 million of the Revolver may be used for letters of credit.

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

Debt Ratio (as defined in the Credit Agreement) not to exceed 3.75:1.00 (or, at the Company’s option and for a limited period of time upon the consummation of a Qualifying Acquisition (as defined in the Credit Agreement), 4.25:1.00). The Credit Agreement contains covenants customary for transactions of this type for issuers with similar credit ratings. These include those restricting liens, debt of non-guarantor subsidiaries and certain fundamental changes, in each case with exceptions, including exceptions for secured debt and debt of non-guarantor subsidiaries of the Company, in each case up to an amount not exceeding 7.5% of Total Assets (as defined in the Credit Agreement). We were in compliance with the terms of the Credit Agreement as of December 31, 2019.

Unsecured Senior Notes

At December 31, 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. The Notes contain customary covenants that place restrictions in certain circumstances on, among other things, the incurrence of secured debt, entry into sale or leaseback transactions, and certain merger or consolidation transactions. We were in compliance with the terms of the Notes as of December 31, 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 consolidated balance sheets. As of both December 31, 2019 and December 31, 2018, we had accrued interest payable of $15 million related to the Notes.

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

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

Interest expense and financing costs

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

For the years ended December 31, 2019, 2018, and 2017: interest expense was $86 million, $134 million, and $150 million, respectively; amortization of the debt discount and deferred financing costs was $4 million, $6 million, and $12 million, respectively.

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



	At December 31, 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		(7		)	843
2027 Notes	400		(5		)	395
2047 Notes	400		(9		)	391
Total long-term debt	$	2,700	$	(25	)	$	2,675



	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 December 31, 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,
2020	$	—
2021	650
2022	400
2023	—
2024	—
Thereafter	1,650
Total	$	2,700

With the exception of the 2026 and the 2047 Notes, using Level 2 inputs (i.e., observable market prices in less-than-active markets) at December 31, 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 December 31, 2019, based on Level 2 inputs, the fair value of the 2026 and the 2047 Notes were $893 million and $456 million, respectively.

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, 2019, 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.

Share-Based Payments - Stock Option Activities (Details) - Stock Option Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock option activity, shares
Stock options at the beginning of the period (in shares)	17,137
Stock options, granted (in shares)	3,992
Stock options, exercised (in shares)	(3,847)
Stock options, forfeited (in shares)	(2,852)
Stock options, expired (in shares)	(401)
Stock options at the ending of the period (in shares)	14,029	17,137
Stock options, vested and expected to vest (in shares)	13,360
Stock options, exercisable (in shares)	5,988
Weighted-average exercise price
Stock options, weighted-average strike price at the beginning of the period (in dollars per share)	$ 39.73
Stock options, weighted-average exercise price, granted (in dollars per share)	49.14
Stock options, weighted-average exercise price, exercised (in dollars per share)	27.31
Stock options, weighted-average exercise price, forfeited (in dollars per share)	46.19
Stock options, weighted-average exercise price, expired (in dollars per share)	46.63
Stock options, weighted-average strike price at the end of the period (in dollars per share)	44.31	$ 39.73
Stock options, weighted-average exercise price, vested and expected to vest (in dollars per share)	43.90
Stock options, weighted-average exercise price, exercisable (in dollars per share)	$ 34.32
Stock options, weighted-average remaining contractual term	7 years 5 months 19 days
Stock options, weighted-average remaining contractual term, vested and expected to vest	7 years 4 months 20 days
Stock options, weighted-average remaining contractual term, exercisable	5 years 6 months 21 days
Stock options, aggregate intrinsic value	$ 221
Stock options, aggregate intrinsic value, vested and expected to vest	216
Stock options, aggregate intrinsic value, exercisable	152
Stock options, intrinsic value of options exercised	80	$ 196	$ 372
Total grant date fair value of options vested	94	$ 45	$ 47
Share-based compensation, unrecognized compensation	$ 78
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 3 months 29 days

Property and Equipment, Net

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

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



	At December 31,
	2019			2018
Land	$	1		$	1
Buildings	4			4
Leasehold improvements	252			248
Computer equipment	654			700
Office furniture and other equipment	91			99
Total cost of property and equipment	1,002			1,052
Less accumulated depreciation	(749		)	(770		)
Property and equipment, net	$	253		$	282

Depreciation expense for the years ended December 31, 2019, 2018, and 2017 was $124 million, $138 million, and $130 million, respectively.

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Lessee, Lease, Description [Line Items]
Rental expense		$ 75	$ 71
Lease not yet commenced	$ 58
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Renewal term	1 year
Lease not yet commenced, term	3 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	10 years
Renewal term	5 years
Lease not yet commenced, term	5 years

Commitments and Contingencies - Future Minimum Commitments (Details) $ in Millions	Dec. 31, 2019 USD ($)
Long-term Purchase Commitment [Line Items]
Unrecognized tax benefits, net of tax credits, noncurrent	$ 438
Transition tax liability	153
Total Contractual Obligations
Long-term Purchase Commitment [Line Items]
2020	218
2021	813
2022	529
2023	116
2024	112
Thereafter	2,193
Total	3,981
Facility and Equipment Leases
Long-term Purchase Commitment [Line Items]
2020	77
2021	71
2022	62
2023	56
2024	52
Thereafter	46
Total	364
Developer and Hosting
Long-term Purchase Commitment [Line Items]
2020	25
2021	6
2022	1
2023	0
2024	0
Thereafter	0
Total	32
Marketing
Long-term Purchase Commitment [Line Items]
2020	30
2021	0
2022	0
2023	0
2024	0
Thereafter	0
Total	30
Long-term debt obligations
Long-term Purchase Commitment [Line Items]
2020	86
2021	736
2022	466
2023	60
2024	60
Thereafter	2,147
Total	$ 3,555

Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly financial information



	For the Quarters Ended
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
	(Amounts in millions, except per share data)
Net revenues	$	1,986	$	1,282	$	1,396	$	1,825
Cost of revenues	656		442		433		563
Operating income	454		247		336		570
Net income	525		204		328		447
Basic earnings per common share	0.68		0.27		0.43		0.58
Diluted earnings per common share	0.68		0.26		0.43		0.58



	For the Quarters Ended
	December 31, 2018 (1)		September 30, 2018		June 30, 2018		March 31, 2018
	(Amounts in millions, except per share data)
Net revenues	$	2,381	$	1,512	$	1,641	$	1,965
Cost of revenues	832		513		510		662
Operating income	694		265		434		595
Net income	685		260		402		500
Basic earnings per common share	0.90		0.34		0.53		0.66
Diluted earnings per common share	0.89		0.34		0.52		0.65

(1)

Quarterly financial data for the quarter ended December 31, 2018, as presented above, have been revised to reflect the correction of the tax error identified during 2019, as previously discussed in Note 2.

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2019

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of finite-lived intangible assets

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



	At December 31, 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	$	(1,105	)	$	49
Developed software	2	-	5 years	601		(579		)	22
Trade names	7	-	10 years	54		(30		)	24
Other	1	-	15 years	19		(16		)	3
Total definite-lived intangible assets (1)				$	1,828	$	(1,730	)	$	98

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								$	386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	531



	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

(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.

Schedule of indefinite-lived intangible assets

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



	At December 31, 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	$	(1,105	)	$	49
Developed software	2	-	5 years	601		(579		)	22
Trade names	7	-	10 years	54		(30		)	24
Other	1	-	15 years	19		(16		)	3
Total definite-lived intangible assets (1)				$	1,828	$	(1,730	)	$	98

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite								$	386
Acquired trade names	Indefinite								47
Total indefinite-lived intangible assets									$	433
Total intangible assets, net									$	531



	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

(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.

Schedule of finite lived intangible assets, future amortization expense

At December 31, 2019, future amortization of definite-lived intangible assets is estimated as follows (amounts in millions):



2020	$	75
2021	11
2022	7
2023	2
2024	1
Thereafter	2
Total	$	98

Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Allowance for sales returns and price protection	$ 19	$ 25
Accrued expenses	28	26
Deferred revenue	119	136
Tax attributes carryforwards	93	81
Share-based compensation	54	69
Intangibles	1,289	43
U.S. deferred taxes on foreign earnings	0	318
Capitalized software development expenses	67	0
Other	109	28
Deferred tax assets	1,778	726
Valuation allowance	(181)	(61)
Deferred tax assets, net of valuation allowance	1,597	665
Deferred tax liabilities:
Intangibles	(142)	(140)
Capitalized software development expenses	0	(57)
U.S. deferred taxes on foreign earnings	(594)	0
Other	(73)	(26)
Deferred tax liabilities	(809)	(223)
Net deferred tax assets	$ 788	$ 442

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Consolidation and Presentation

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

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

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

During the three months ended March 31, 2019, we identified an error principally related to the initial recognition of income taxes for global intangible low-taxed income (“GILTI”) of foreign subsidiaries 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 have revised our 2018 consolidated financial statements and impacted footnotes in this Form 10-K to reflect this correction.

Cash and Cash Equivalents

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

Investment Securities

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

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

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

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

Financial Instruments

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

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

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

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

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

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

Concentration of Credit Risk

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

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

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

Inventories and Allowances for Obsolescence

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

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

Software Development Costs and Intellectual Property Licenses

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

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

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

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

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

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

Property and Equipment

Property and Equipment.

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

Goodwill and Other Indefinite-Lived Assets

Goodwill and Other Indefinite-Lived Assets.

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

Our annual goodwill impairment test is performed at the reporting unit level. As of December 31, 2019 and 2018, our reporting units are the same as our operating segments. We generally test goodwill for possible impairment first by performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If a qualitative assessment is not used, or if the qualitative assessment is not conclusive, a quantitative impairment test is performed. If a quantitative test is performed, we first determine the fair value of the related reporting unit and comparing this value to the recorded net assets of the reporting unit, including goodwill. The fair value of our reporting units is determined using an income approach based on discounted cash flow models. In the event the recorded net assets of the reporting unit exceed the estimated fair value of such assets, we perform a second step to measure the amount of the impairment, which is equal to the amount by which the recorded goodwill exceeds the implied fair value of the goodwill after assessing the fair value of each of the assets and liabilities within the reporting unit. Based on our annual impairment assessment, no impairments of goodwill were identified for the years ended December 31, 2019, 2018, and 2017.

We test our acquired trade names for possible impairment by applying the same process as for goodwill. In the instance when a qualitative test is not performed or is inconclusive, a quantitative test is performed by using a discounted cash flow model to estimate fair value of our acquired trade names. For the years ended December 31, 2019, 2018, and 2017, we concluded that no impairment had occurred.

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

Amortizable Intangible Assets and Other Long-lived Assets

Amortizable Intangible and Other Long-lived Assets.

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

We evaluate the recoverability of our definite-lived intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. We consider certain events and circumstances in determining whether the carrying value of identifiable intangible assets and other long-lived assets, other than indefinite-lived intangible assets, may not be recoverable including, but not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in our stock price for a sustained period of time; and changes in our business strategy. If we determine that the carrying value may not be recoverable, we estimate the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group to determine whether an impairment exists. If an impairment is indicated based on a comparison of the asset groups’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. We did not record an impairment charge to our definite-lived intangible assets as of December 31, 2019, 2018, and 2017.

Leases

In February 2016, the FASB issued new guidance related to the accounting for leases. The new standard replaced 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. This is reflected in our significant accounting policy disclosure for leases below. Refer to Note 3 for information about the impact of adoption on our consolidated financial statements.

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 are 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 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 consolidated balance sheet.

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

Revenue Recognition

In May 2014, the FASB issued new accounting guidance related to revenue recognition. On January 1, 2018, we adopted the new accounting standard and related amendments.

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


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


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


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


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

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

We determine revenue recognition by:


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


•	identifying the performance obligations in each contract;


•	determining the transaction price;


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


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

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

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

Product Sales

Product sales consist of sales of our games, including physical products and digital full-game downloads. We recognize revenues from the sale of our products after both (1) control of the products has been transferred to our customers and (2) the underlying performance obligations have been satisfied. Such revenues, which include our software products with significant online functionality and our online hosted software arrangements, are recognized in "Product sales" on our consolidated statement of operations.

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

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

Products with Online Functionality

For our software products that include both offline functionality (i.e., do not require an Internet connection to access) and significant online functionality, such as for most of our titles from the Call of Duty franchise, we evaluate whether the license of our intellectual property and the online functionality each represent separate and distinct performance obligations. In such instances, we typically have two performance obligations: (1) a license to the game software that is accessible without an Internet connection (predominantly the offline single player campaign or game mode) and (2) ongoing activities associated with the online components of the game, such as content updates, hosting of online content and gameplay, and online matchmaking (the “online functionality”). The online functionality generally operates to support the additional features and functionalities of the game that are only available online, not the offline license. This evaluation is performed for each software product or product add-on, including downloadable content. When we determine that our software products contain a license of intellectual property (i.e., the offline software license) that is separate and distinct from the online functionality, we consider market conditions and other observable inputs to estimate the standalone selling price for the performance obligations, since we do not generally sell the software license on a standalone basis. These products may be sold in a bundle with other products and services, which often results in the recognition of additional performance obligations.

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

Online Hosted Software Arrangements

For our online hosted software arrangements, such as titles for the Overwatch, World of Warcraft, and Candy Crush franchises, substantially all gameplay and functionality are obtained through our continuous hosting of the game content for the player. In these instances, we typically have a single performance obligation related to our ongoing activities in the hosted arrangement, including content updates, hosting of the gameplay, online matchmaking, and access to the game content. Similar to our software products with online functionality, these arrangements may include other products and services, which often results in the recognition of additional performance obligations. Revenues related to online hosted software arrangements are generally recognized ratably over the estimated service period.

Subscription, Licensing, and Other Revenues

Subscription Arrangements

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

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

Software Licensing Revenues

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

Other Revenues

Other revenues primarily include revenues from downloadable content (e.g., multi-player content packs), microtransactions, and licensing of intellectual property other than software to third-parties. These revenues are recognized in "Subscriptions, licensing, and other revenues" on our consolidated statement of operations.

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

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

Significant Judgment around Revenue Arrangements with Multiple Deliverables

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

Significant judgment is also required to determine the standalone selling price for each distinct performance obligation and to determine whether there is a discount that needs to be allocated based on the relative standalone selling price of the various products and services. To estimate the standalone selling price we generally consider market data, including our pricing strategies for the product being evaluated and other similar products we may offer, competitor pricing to the extent data is available, and the replayability design of both the offline and online components of our games. In limited instances, we may also utilize an expected cost approach to determine whether the estimated selling price yields an appropriate profit margin.

Estimated Service Period

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

Principal Agent Considerations

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


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


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

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

Allowances for Returns and Price Protection

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

Management uses judgment in estimates made with respect to potential future product returns and price protection related to current period product revenues and when establishing the allowance for returns and price protection. We estimate the amount of future returns and price protection for current period product revenues utilizing historical experience and information regarding inventory levels and the demand and acceptance of our products by the end consumer, and record revenue for the transferred products in the amount of consideration to which we expect to be entitled. Various factors are used to estimate the amount of future returns and price protection for a particular title, including but not limited to: historical performance of titles in similar genres and our franchises; historical performance of the hardware platform; console hardware life cycle; sales force and retail customer feedback; industry pricing; future pricing assumptions; weeks of on-hand retail channel inventory; absolute quantity of on-hand retail channel inventory; our warehouse on-hand inventory levels; the title’s recent sell-through history (if available); marketing trade programs; and the performance of competing titles. The relative importance of these factors varies among titles depending upon, among other things, genre, platform, seasonality, and sales strategy.

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

Contract Balances

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

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

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

Refer to Note 11 for further information, including changes in deferred revenue during the period.

Shipping and Handling

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

Cost of Revenues

Our cost of revenues consist of the following:

Cost of revenues—product sales:


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

(2)

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

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


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

(2)

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

Assets Recognized from Costs to Obtain a Contract with a Customer

We apply the practical expedient to expense, as incurred, costs to obtain a contract with a customer when the amortization period would have been one year or less for certain similar contracts in which commissions are paid to internal personnel or third parties. We believe application of the practical expedient has a limited effect on the amount and timing of cost recognition. Total capitalized costs to obtain a contract were immaterial as of December 31, 2019 and 2018.

Advertising Expenses

We expense advertising as incurred, except for production costs associated with media advertising, which are deferred and charged to expense when the related advertisement is run for the first time. Advertising expenses for the years ended December 31, 2019, 2018, and 2017 were $587 million, $631 million, and $708 million, respectively, and are included in “Sales and marketing” in the consolidated statements of operations.

Income Taxes

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

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

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

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

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

Foreign Currency Translation

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

Earnings (Loss) Per Common Share

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

Share-Based Payments

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

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

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

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

Loss Contingencies

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

Recently Issued Accounting Pronouncements

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 the 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 consolidated balance sheet at January 1, 2019, was as follows (amounts in millions):



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 consolidated statement of operations or 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 (1) comparing the fair value of a reporting unit, as determined in Step 1 from the goodwill impairment test, with its carrying amount and (2) recognizing 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. This standard is effective for us beginning with the first quarter of 2020 and we do not expect it to have an impact on our financial statements and related disclosures 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. This standard is effective for us beginning with the first quarter of 2020 and will be applied prospectively. We do not expect it to have a material impact on our financial statements and related disclosures upon adoption.

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 under current GAAP with a methodology that reflects a current expected credit losses 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. This standard is effective for us beginning with the first quarter of 2020 and we do not expect it to have a material impact on our financial statements and related disclosures upon adoption.

Simplifying the Accounting for Income Taxes

In December 2019, the FASB issued new guidance which is intended to simplify various aspects to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 for recognizing deferred taxes for investments, performing an intraperiod allocation and calculating income taxes in interim periods. The amendment also clarifies and amends certain areas of existing guidance to reduce complexity and improve consistency in application of Topic 740. The new standard is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. Generally the topics must be applied prospectively upon adoption, with the exception of certain topics which are required to be applied on a retrospective or modified retrospective basis. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements.

Computation of Basic/Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Consolidated net income	$ 525	$ 204	$ 328	$ 447	$ 685	$ 260	$ 402	$ 500	$ 1,503	$ 1,848	$ 273
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)									767	762	754
Effect of dilutive stock options and awards under the treasury stock method									4	9	12
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method									771	771	766
Basic earnings per common share (in dollars per share)	$ 0.68	$ 0.27	$ 0.43	$ 0.58	$ 0.90	$ 0.34	$ 0.53	$ 0.66	$ 1.96	$ 2.43	$ 0.36
Diluted earnings per common share (in dollars per share)	$ 0.68	$ 0.26	$ 0.43	$ 0.58	$ 0.89	$ 0.34	$ 0.52	$ 0.65	$ 1.95	$ 2.40	$ 0.36

- Definition

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

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- 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.

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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

Debt - Summary of Debt (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Gross Carrying Amount	$ 2,700	$ 2,700
Unamortized Discount and Deferred Financing Costs	(25)	(29)
Net Carrying Amount	2,675	2,671
Unsecured Notes \| 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 Notes \| 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 Notes \| 2026 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	850	850
Unamortized Discount and Deferred Financing Costs	(7)	(8)
Net Carrying Amount	843	842
Unsecured Notes \| 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 Notes \| 2047 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(9)	(10)
Net Carrying Amount	$ 391	$ 390

Income Taxes - Narrative (Details) € in Millions, $ in Millions, kr in Billions	1 Months Ended			3 Months Ended			6 Months Ended	12 Months Ended
	Jan. 31, 2020 USD ($)	Jan. 31, 2020 EUR (€)	Oct. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2018 SEK (kr)	Dec. 31, 2017 EUR (€)
Income Tax [Line Items]
Federal income tax provision at statutory rate								21.00%	21.00%	35.00%
Tax benefit								$ (130)	$ (29)	$ (878)
Deferred tax liability related to undistributed foreign earnings				$ 594	$ 0		$ 0	594	0
Valuation allowance				181	61		61	181	61
Reduction in unrecognized tax benefits resulting from Closing Agreement						$ 437		163	312	1
Additional federal and state cash payments related to Closing Agreement							345
Additional tax expense (benefit) for effects of U.S. Tax Reform Act					(340)
NOL carryforwards, foreign				32				32
Unrecognized tax benefits				1,037	926		926	1,037	926	1,138	$ 846
Unrecognized tax benefits that would affect effective tax rate				661				661
Accrued interest and penalties related to uncertain tax positions				72	87		87	72	87	121
Interest expense related to uncertain tax positions								14	11	28
King Acquisition
Income Tax [Line Items]
Uncertain tax position assumed											$ 74
State
Income Tax [Line Items]
Tax credit carryforward				191				191
R&D Credit
Income Tax [Line Items]
Valuation allowance				71				71
Domestic Tax Authority
Income Tax [Line Items]
Additional federal and state cash payments related to Closing Agreement			$ 334
Swedish Tax Agency
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded					$ 375		$ 375		$ 375			kr 3.5
French Tax Authority
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement								54
Total assessment, including penalties and interest, not recorded										$ 638			€ 571
French Tax Authority \| Subsequent Events
Income Tax [Line Items]
Tax payments, including interest and penalties	$ 179	€ 161
Settlement From Closing Agreement
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement						70
Indirect Tax Benefits Due to Closing Agreement
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement						$ (185)
U.K.
Income Tax [Line Items]
Tax benefit				230
Net Deferred tax asset related to the amortizable tax basis in transferred intellectual property				1,100				1,100
Deferred tax liability related to undistributed foreign earnings				920				920
Valuation allowance				$ 110				$ 110
U.K. \| Minimum
Income Tax [Line Items]
Amortizable tax basis, recovery period								3 years
U.K. \| Maximum
Income Tax [Line Items]
Amortizable tax basis, recovery period								25 years

Income Taxes - Income (Loss) Before Income Taxes and Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income before income tax expense:
Domestic	$ 328	$ 432	$ 185
Foreign	1,305	1,445	966
Income before income tax expense	1,633	1,877	1,151
Current:
Federal	136	(208)	696
State	24	(15)	26
Foreign	323	280	335
Total current	483	57	1,057
Deferred:
Federal	781	(153)	(111)
State	(16)	106	(32)
Foreign	(1,118)	19	(36)
Total deferred	(353)	(28)	(179)
Income tax expense	$ 130	$ 29	$ 878

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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



				Fair Value Measurements at December 31, 2019 Using
	As of December 31, 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	$	5,320		$	5,320	$	—		$	—	Cash and cash equivalents
Foreign government treasury bills	37			37		—			—		Cash and cash equivalents
U.S. treasuries and government agency securities	65			65		—			—		Other current assets
Total recurring fair value measurements	$	5,422		$	5,422	$	—		$	—

Financial Liabilities:
Foreign currency forward contracts not designated as hedges	$	(2	)	$	—	$	(2	)	$	—	Accrued expenses and other liabilities
Foreign currency forward contracts designated as hedges	$	(2	)	$	—	$	(2	)	$	—	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 total gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions):



	As of December 31, 2019					As of December 31, 2018
	Notional amount		Fair value gain (loss)			Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell GBP	$	25	$	(2	)	$	55	$	1

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



	As of December 31, 2019					As of December 31, 2018
	Notional amount		Fair value gain (loss)			Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell Euro	$	350	$	(2	)	$	723	$	12

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



	For the Years Ended December 31,
	2019		2018		2017			Statement of Operations Classification
Cash Flow Hedges	$	39	$	7	$	(1	)	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

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2019	Feb. 20, 2020	Jun. 30, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 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	FY
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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 Public Float			$ 35,743,039,830
Entity Common Stock, Shares Outstanding		769,221,524
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement, to be filed with the Securities and Exchange Commission with respect to the 2020 Annual Meeting of Shareholders which is expected to be held on June 11, 2020, are incorporated by reference into Part III of this Annual Report.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Obligations

In the normal course of business, we enter into contractual arrangements with third parties for non-cancelable operating lease agreements for our offices, for the development of products which may include obtaining rights to intellectual property, and for hosting services to support our games and our administrative functions. Under these agreements, we commit to provide specified payments to a lessor, developer, or hosting provider, as the case may be, based upon contractual arrangements. The payments to third-party developers are generally conditioned upon the achievement by the developers of contractually specified development milestones. Further, these payments to third-party developers typically are deemed to be advances and, as such, are recoupable against future royalties earned by the developer based on sales of the related game. Assuming all contractual provisions are met, the total future minimum commitments for these and other contractual arrangements in place at December 31, 2019, are scheduled to be paid as follows (amounts in millions):



	Contractual Obligations (1)
	Facility and Equipment Leases		Developer and Hosting		Marketing		Long-Term Debt Obligations (2)		Total
For the years ending December 31,
2020	$	77	$	25	$	30	$	86	$	218
2021	71		6		—		736		813
2022	62		1		—		466		529
2023	56		—		—		60		116
2024	52		—		—		60		112
Thereafter	46		—		—		2,147		2,193
Total	$	364	$	32	$	30	$	3,555	$	3,981

(1)

(2)

Subsequent to year-end, we entered into certain agreements, for which, under the terms, we have future minimum commitments of approximately $600 million. The commitments relate primarily to advertising and hosting services which comprise approximately 60% and 40%, respectively, of the total future minimum commitment. Payments of these commitments will be made over the next three years to four years.

Legal Proceedings

In December 2017, we received a Notice of Reassessment from the FTA related to transfer pricing for intercompany transactions involving one of our French subsidiaries for the 2011 through 2013 tax years. The total assessment, including interest and penalties, was approximately €571 million (approximately $638 million). In December 2019, the Company reached a settlement with the FTA for the 2011 through 2018 tax years, resulting in the recognition of $54 million of tax expense in the period ended December 31, 2019 and a tax payment of €161 million (approximately $179 million), including interest and penalties, in January 2020.

In addition, we are party to routine claims, suits, investigations, audits, and other proceedings arising in the ordinary course of business, including with respect to intellectual property, competition and antitrust matters, regulatory matters, tax matters, privacy matters, labor and employment matters, compliance matters, unclaimed property matters, liability and personal injury claims, product damage claims, collection matters, and/or commercial claims. In the opinion of management, after consultation with legal counsel, such routine claims and lawsuits are not significant and we do not expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity.

Letters of Credit

As described in Note 13, a portion of our Revolver can be used to issue letters of credit of up to $50 million, subject to the availability of the Revolver. At December 31, 2019, we did not have any letters of credit issued or outstanding under the Revolver.

Leases

12 Months Ended

Dec. 31, 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):



	Year Ended December 31, 2019
Operating leases
Operating lease costs	$	75
Variable lease costs	20

Rental expense prior to our adoption of the new lease standard was $75 million and $71 million for the years ended December 31, 2018 and 2017, respectively.

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



	Year Ended December 31, 2019
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	80
ROU assets obtained in exchange for new lease obligations	65

	At December 31, 2019
Weighted Average Lease terms and discount rates
Remaining lease term	5.00 years
Discount rate	4.02		%

Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at December 31, 2019, are as follows (amounts in millions):



For the years ending December 31,
2020	$	72
2021	59
2022	50
2023	44
2024	41
Thereafter	37
Total future lease payments	$	303
Less imputed interest	(30		)
Total lease liabilities	$	273

As of December 31, 2019, we have entered into facility leases that have not yet commenced with future lease payments of approximately $58 million. These leases are expected to commence within the next 12 months and will have lease terms ranging from three years to five years.

Operating lease ROU assets and liabilities recorded on our consolidated balance sheet as of December 31, 2019, were as follows (amounts in millions):



	At December 31, 2019		Balance Sheet Classification
ROU assets	$	232	Other assets

Current lease liabilities	$	63	Accrued expenses and other current liabilities
Non-current lease liabilities	210		Other liabilities
	$	273	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

Leases - Schedule of Lease Expense and Other Details Related to Operating Leases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Operating leases
Operating lease costs	$ 75
Variable lease costs	20
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	80
ROU assets obtained in exchange for new lease obligations	$ 65
Weighted Average Lease terms and discount rates
Remaining lease term	5 years
Discount rate	4.02%

Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Federal income tax provision at statutory rate	$ 343	$ 394	$ 403
State taxes, net of federal benefit	20	36	4
Research and development credits	(38)	(46)	(26)
Foreign rate differential	(104)	(198)	(271)
Change in tax reserves	96	285	291
Acquired net operating loss utilization	0	0	(36)
Audit settlements	54	(115)	0
Excess tax benefits related to share-based payments	(2)	(58)	(113)
U.S. Tax Reform Act	0	(340)	636
Change in valuation allowance	11	61	0
Intra-entity IP Transfer	(230)	0	0
Other	(20)	10	(10)
Income tax expense	$ 130	$ 29	$ 878
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income tax provision at statutory rate	21.00%	21.00%	35.00%
State taxes, net of federal benefit	1.00%	2.00%	0.00%
Research and development credits	(2.00%)	(2.00%)	(2.00%)
Foreign rate differential	(7.00%)	(11.00%)	(24.00%)
Change in tax reserves	6.00%	15.00%	25.00%
Acquired net operating loss utilization	0.00%	0.00%	(3.00%)
Audit settlements	3.00%	(6.00%)	0.00%
Excess tax benefits related to share-based payments	0.00%	(3.00%)	(10.00%)
U.S. Tax Reform Act	0	(0.18)	0.55
Change in valuation allowance	1.00%	3.00%	0.00%
Intra-entity IP Transfer	(14.00%)	0.00%	0.00%
Other	(1.00%)	1.00%	0.00%
Income tax expense	8.00%	2.00%	76.00%

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 132	$ 190
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized	2,400,000,000	2,400,000,000
Common stock, shares issued	1,197,436,644	1,192,093,991
Treasury stock, shares	428,676,471	428,676,471

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares				12 Months Ended
	Feb. 12, 2019	Feb. 08, 2018	Feb. 09, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.37	$ 0.34	$ 0.30	$ 0.37	$ 0.34	$ 0.30

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and equipment, net

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



	At December 31,
	2019			2018
Land	$	1		$	1
Buildings	4			4
Leasehold improvements	252			248
Computer equipment	654			700
Office furniture and other equipment	91			99
Total cost of property and equipment	1,002			1,052
Less accumulated depreciation	(749		)	(770		)
Property and equipment, net	$	253		$	282

Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring

During 2019, we implemented a restructuring plan aimed at refocusing our resources on our largest opportunities and removing unnecessary levels of complexity from certain parts of our 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 remain in progress and will continue into 2020 as we execute against our plan. During implementation, we expanded the scope of certain actions within our plan aimed at integrating our global and regional sales and “go-to-market” functions, along with certain of our administrative-related functions.

The following table summarizes accrued restructuring and related costs included in “Accrued expenses and other liabilities” in our 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	76			29			27			132
Cash payments	(44		)	—			(12		)	(56		)
Non-cash charge adjustment (1)	—			(29		)	(12		)	(41		)
Balance at December 31, 2019	$	32		$	—		$	3		$	35


(1)	Adjustments relate to non-cash charges included in “Costs charged to expense” for the write-down of assets from canceled projects and the write-down of assets for our lease facilities, inclusive of lease right-of-use assets and associated fixed assets, that were vacated.

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



	Year Ended December 31, 2019
Activision	$	19
Blizzard	68
King	20
Other segments (1)	25
Total	$	132


(1)	Includes charges for operating segments managed outside the reportable segments and our corporate and administrative functions.

During the year ended December 31, 2019, we also recorded $5 million to write-down inventory as a result of 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 consolidated statement of operations.

We expect to incur aggregate pre-tax restructuring charges of approximately $190 million associated with the restructuring plan, which includes the inventory write-down discussed above. Approximately $50 million of these charges are expected to be incurred in 2020 as we complete the execution of the restructuring plan, as discussed above. These charges will primarily relate to severance (approximately 60% 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 20% 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 continue 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):



	Total Expected Charges
Activision	$	25
Blizzard	105
King	20
Other segments (1)	40
Total	$	190

(1)

Includes charges for operating segments managed outside the reportable segments and our corporate and administrative functions.

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2019

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

Valuation and Qualifying Accounts

VALUATION AND QUALIFYING ACCOUNTS

(Amounts in millions)



Col. A Description	Col. B Balance at Beginning of Period		Col. C Additions(A)		Col. D Deductions(B)			Col. E Balance at End of Period
At December 31, 2019
Allowances for sales returns and price protection and other allowances	$	186	$	11	$	(79	)	$	118
Valuation allowance for deferred tax assets	$	61	$	127	$	(7	)	$	181
At December 31, 2018
Allowances for sales returns and price protection and other allowances	$	274	$	24	$	(112	)	$	186
Valuation allowance for deferred tax assets	$	—	$	61	$	—		$	61
At December 31, 2017
Allowances for sales returns and price protection and other allowances	$	257	$	83	$	(66	)	$	274


(A)	Includes increases and reversals of allowances for sales returns, price protection, and valuation allowance for deferred tax assets due to normal reserving terms.

(B)

Includes actual write-offs and utilization of allowances for sales returns, price protection, and releases of income tax valuation allowances and foreign currency translation and other adjustments.

Other Assets and Liabilities	12 Months Ended
Other Assets and Liabilities	Dec. 31, 2019
Other Assets and Liabilities
Other Assets and Liabilities	Other Assets and Liabilities Included in “Accrued expenses and other liabilities” in our consolidated balance sheets are accrued payroll-related costs of $395 million and $402 million at December 31, 2019 and 2018, respectively, and the current portion of income taxes payable of $436 million and $203 million at December 31, 2019 and 2018, respectively.

Interest and Other Expense (Income), Net

12 Months Ended

Dec. 31, 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 Years Ended December 31,
	2019			2018			2017
Interest income	$	(79	)	$	(65	)	$	(24	)
Interest expense from debt and amortization of debt discount and deferred financing costs	90			140			162
Unrealized gain on equity investment	(38		)	—			—
Other expense (income), net	1			(4		)	8
Interest and other expense (income), net	$	(26	)	$	71		$	146

Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

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



	Activision			Blizzard		King		Total
Balance at December 31, 2017	$	6,898		$	190	$	2,675	$	9,763
Other	(1		)	—		—		(1		)
Balance at December 31, 2018	$	6,897		$	190	$	2,675	$	9,762
Other	1			—		1		2
Balance at December 31, 2019	$	6,898		$	190	$	2,676	$	9,764

At December 31, 2019, 2018, and 2017, there were no accumulated impairment losses.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 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 Year Ended December 31, 2019
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			Total
Balance at December 31, 2018	$	(629	)	$	5		$	23		$	(601	)
Other comprehensive income (loss) before reclassifications	5			—			24			29
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(8		)	(39		)	(47		)
Balance at December 31, 2019	$	(624	)	$	(3	)	$	8		$	(619	)



	For the Year Ended December 31, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on available-for- sale securities			Unrealized gain (loss) on forward contracts			Total
Balance at December 31, 2017	$	(623	)	$	—		$	(15	)	$	(638	)
Cumulative impact from adoption of new revenue accounting standard	3			—			—			3
Other comprehensive income (loss) before reclassifications	(9		)	10			45			46
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—			(5		)	(7		)	(12		)
Balance at December 31, 2018	$	(629	)	$	5		$	23		$	(601	)

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net revenues
Net revenues	$ 6,489	$ 7,500	$ 7,017
Cost of revenues:
Product development	998	1,101	1,069
Sales and marketing	926	1,062	1,378
General and administrative	732	822	745
Restructuring and related costs	132	10	15
Total costs and expenses	4,882	5,512	5,708
Operating income	1,607	1,988	1,309
Interest and other expense (income), net (Note 18)	(26)	71	146
Loss on extinguishment of debt	0	40	12
Income before income tax expense	1,633	1,877	1,151
Income tax expense	130	29	878
Net income	$ 1,503	$ 1,848	$ 273
Earnings per common share
Basic (in dollars per share)	$ 1.96	$ 2.43	$ 0.36
Diluted (in dollars per share)	$ 1.95	$ 2.40	$ 0.36
Weighted-average number of shares outstanding
Basic (in shares)	767	762	754
Diluted (in shares)	771	771	766
Product sales
Net revenues
Net revenues	$ 1,975	$ 2,255	$ 2,110
Product costs
Cost of revenues:
Cost of revenues	656	719	733
Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues	240	371	300
Subscription, licensing, and other revenues
Net revenues
Net revenues	4,514	5,245	4,907
Game operations and distribution costs
Cost of revenues:
Cost of revenues	965	1,028	984
Software royalties, amortization, and intellectual property licenses
Cost of revenues:
Cost of revenues	$ 233	$ 399	$ 484

Summary of Significant Accounting Policies - Goodwill and Other Indefinite-Lived Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment	$ 0	$ 0	$ 0
Impairment of intangible assets	0	0	0
Trade names
Indefinite-lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 0	$ 0	$ 0

Deferred Revenues - Remaining Performance Obligation (Details) $ in Billions	Dec. 31, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 2.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 1.5
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]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 0.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracted not recognized revenue, period	1 year

Other Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Other Assets and Liabilities
Accrued payroll related costs	$ 395	$ 402
Income tax payable, current	$ 436	$ 203

Deferred Revenues	12 Months Ended
Deferred Revenues	Dec. 31, 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 December 31, 2019, were $1.6 billion and $1.4 billion, respectively, including our current and non-current balances. For the year ended December 31, 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 years ended December 31, 2019 and December 31, 2018, $1.5 billion and $1.7 billion of revenues, respectively, were recognized that were included in the deferred revenues balance at the beginning of the period. As of December 31, 2019, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $2.7 billion, which includes our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.5 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.

Summary of Significant Accounting Policies - Revenue Recognition (Details)	12 Months Ended
	Dec. 31, 2019
Minimum
Disaggregation of Revenue [Line Items]
Payment terms (in days)	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms (in days)	90 days

Computation of Basic/Diluted Earnings Per Common Share

12 Months Ended

Dec. 31, 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 Years Ended December 31,
	2019		2018		2017
Numerator:
Consolidated net income	$	1,503	$	1,848	$	273

Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	767		762		754
Effect of dilutive stock options and awards under the treasury stock method	4		9		12
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method	771		771		766
Basic earnings per common share	$	1.96	$	2.43	$	0.36
Diluted earnings per common share	$	1.95	$	2.40	$	0.36

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 For the Years Ended December 31,
	2019	2018	2017
Restricted stock units and options with performance measures not yet met	2	4	7
Anti-dilutive employee stock options	6	3	1

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Activision Blizzard, Inc. is a leading global developer and publisher of interactive entertainment content and services. We develop and distribute content and services on video game consoles, personal computers (“PC”s), and mobile devices. We also operate esports leagues and offer digital advertising within our content. 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., pursuant to which we acquired Blizzard Entertainment, Inc. (“Blizzard”), we were renamed Activision Blizzard, Inc. On February 23, 2016, we acquired King Digital Entertainment plc, a leading interactive mobile entertainment company ("King"), by purchasing all of its outstanding shares. 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. Activision also includes the activities of the Call of Duty League, a global professional esports league with city-based teams for Call of Duty^®. Activision’s key product franchise is Call of Duty, a first-person action title for the console and PC platforms and, following the October 1, 2019 launch of Call of Duty: Mobile, the mobile platform, including for Google Inc.’s (“Google”) Android and Apple Inc.’s (“Apple”) iOS. (ii) 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. Blizzard’s key product franchises include: World of Warcraft^®, a subscription-based massive multi-player online role-playing game 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 action title for the PC and console platforms. (iii) 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 franchise is Candy Crush™, which features “match three” games for the mobile and PC platforms. Other We also engage in other businesses that do not represent reportable segments, including 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. Destiny Franchise In 2010, Activision entered into an exclusive relationship with Bungie, Inc. (“Bungie”) to publish games in the Destiny franchise. Effective December 31, 2018, Activision and Bungie mutually agreed to terminate their publishing relationship related to the Destiny franchise. As part of this termination, Activision agreed to transfer its publishing rights for the Destiny franchise to Bungie in exchange for cash and Bungie’s assumption of on-going customer obligations of Activision. Going forward, Activision no longer has any material rights or obligations related to the Destiny franchise. As a result of the agreement to terminate the relationship, the Company recognized revenues of $164 million and GAAP operating income of $91 million for the year ended December 31, 2018. Activision no longer has any material rights or obligations related to the Destiny franchise.

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplemental Cash Flow Elements [Abstract]
Cash paid for income taxes, net of refunds	$ 319	$ 560	$ 176
Cash paid for interest	86	150	145
Beginning restricted cash	4	7	17
Ending restricted cash	$ 4	$ 4	$ 7

Recently Issued Accounting Pronouncements

12 Months Ended

Dec. 31, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued Accounting Pronouncements

Recently adopted accounting pronouncements

Leases

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



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 consolidated statement of operations or consolidated statements of cash flows.

Recent Accounting Pronouncements Not Yet Adopted

Goodwill

Cloud Computing Arrangements

Financial Instruments - Credit Losses

Simplifying the Accounting for Income Taxes

Summary of Significant Accounting Policies - Definite-Lived Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Impairment of intangible assets	$ 0	$ 0	$ 0

Share-Based Payments - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	$ 166	$ 209	$ 178
Income tax benefit	(29)	(46)	(34)
Total share-based compensation expense, net of income tax benefit	137	163	144
Cost of revenues—product sales: Software royalties, amortization, and intellectual property licenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	19	13	10
Cost of revenues—subscription, licensing, and other revenues: Game Operations and Distribution Costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	1	2	1
Cost of revenues—subscription, licensing, and other revenues: Software royalties, amortization, and intellectual property licenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	1	3	3
Product development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	53	61	57
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	10	15	15
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	$ 82	$ 115	$ 92

Operating Segments and Geographic Regions (Tables)

12 Months Ended

Dec. 31, 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 the reportable segment net revenues and segment operating income are presented below (amounts in millions):



	Year Ended December 31, 2019
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,219	$	1,676	$	2,031	$	5,926
Intersegment net revenues (1)	—		43		—		43
Segment net revenues	$	2,219	$	1,719	$	2,031	$	5,969

Segment operating income	$	850	$	464	$	740	$	2,054

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

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

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

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


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



	Years Ended December 31,
	2019			2018			2017
Reconciliation to consolidated net revenues:
Segment net revenues	$	5,969		$	6,835		$	6,765
Revenues from non-reportable segments (1)	462			480			410
Net effect from recognition (deferral) of deferred net revenues (2)	101			238			(139		)
Elimination of intersegment revenues (3)	(43		)	(53		)	(19		)
Consolidated net revenues	$	6,489		$	7,500		$	7,017

Reconciliation to consolidated income before income tax expense:
Segment operating income	$	2,054		$	2,446		$	2,417
Operating income (loss) from non-reportable segments (1)	24			31			(19		)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)	52			100			(71		)
Share-based compensation expense	(166		)	(209		)	(178		)
Amortization of intangible assets	(203		)	(370		)	(757		)
Fees and other expenses related to the acquisition of King (4)	—			—			(15		)
Restructuring costs (5)	(137		)	(10		)	(15		)
Other non-cash charges (6)	—			—			(14		)
Discrete tax-related items (7)	(17		)	—			(39		)
Consolidated operating income	1,607			1,988			1,309
Interest and other expense (income), net	(26		)	71			146
Loss on extinguishment of debt	—			40			12
Consolidated income before income tax expense	$	1,633		$	1,877		$	1,151


(1)	Includes other income and expenses from operating segments managed outside the reportable segments, including our Distribution business. 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 fees and other expenses, such as legal, banking, and professional services fees, related to the acquisition of King and associated integration activities, including related debt financings.


(5)	Reflects restructuring initiatives, which include severance and other restructuring-related costs.


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

(7)

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

Schedule of net revenues by distribution channels

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



	Year Ended December 31, 2019
	Activision			Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,366		$	1,580		$	2,029	$	—		$	(43	)	$	4,932
Retail channels	818			91			—		—			—			909
Other (2)	3			181			—		464			—			648
Total consolidated net revenues	$	2,187		$	1,852		$	2,029	$	464		$	(43	)	$	6,489

Change in deferred revenues:
Digital online channels (1)	$	122		$	(128	)	$	2	$	—		$	—		$	(4	)
Retail channels	(90		)	(5		)	—		—			—			(95		)
Other (2)	—			—			—		(2		)	—			(2		)
Total change in deferred revenues	$	32		$	(133	)	$	2	$	(2	)	$	—		$	(101	)

Segment net revenues:
Digital online channels (1)	$	1,488		$	1,452		$	2,031	$	—		$	(43	)	$	4,928
Retail channels	728			86			—		—			—			814
Other (2)	3			181			—		462			—			646
Total segment net revenues	$	2,219		$	1,719		$	2,031	$	462		$	(43	)	$	6,388



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

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

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



	Year Ended December 31, 2017
Net revenues by distribution channel:
Digital online channels (1)	$	5,479
Retail channels	1,033
Other (2)	505
Total consolidated net revenues	$	7,017


(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” primarily includes revenues from our Distribution business and the Overwatch League.

(3)

Intersegment revenues reflect licensing and service fees charged between segments.

Schedule of net revenues from external customers by geographic region

Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, were as follows (amounts in millions):



	Year Ended December 31, 2019
	Activision		Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (2)			Total
Net revenues by geographic region:
Americas	$	1,286	$	822		$	1,254	$	—		$	(21	)	$	3,341
EMEA (1)	691		543			557		464			(16		)	2,239
Asia Pacific	210		487			218		—			(6		)	909
Total consolidated net revenues	$	2,187	$	1,852		$	2,029	$	464		$	(43	)	$	6,489

Change in deferred revenues:
Americas	$	16	$	(62	)	$	2	$	—		$	—		$	(44	)
EMEA (1)	12		(57		)	—		(2		)	—			(47		)
Asia Pacific	4		(14		)	—		—			—			(10		)
Total change in deferred revenues	$	32	$	(133	)	$	2	$	(2	)	$	—		$	(101	)

Segment net revenues:
Americas	$	1,302	$	760		$	1,256	$	—		$	(21	)	$	3,297
EMEA (1)	703		486			557		462			(16		)	2,192
Asia Pacific	214		473			218		—			(6		)	899
Total segment net revenues	$	2,219	$	1,719		$	2,031	$	462		$	(43	)	$	6,388



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

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

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



	Year Ended December 31, 2017
Net revenues by geographic region:
Americas	$	3,607
EMEA (1)	2,464
Asia Pacific	946
Total consolidated net revenues	$	7,017


(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, were as follows (amounts in millions):



	Year Ended December 31, 2019
	Activision			Blizzard			King		Non-reportable segments			Elimination of intersegment revenues (3)			Total
Net revenues by platform:
Console	$	1,783		$	137		$	—	$	—		$	—		$	1,920
PC	298			1,346			117		—			(43		)	1,718
Mobile and ancillary (1)	103			188			1,912		—			—			2,203
Other (2)	3			181			—		464			—			648
Total consolidated net revenues	$	2,187		$	1,852		$	2,029	$	464		$	(43	)	$	6,489

Change in deferred revenues:
Console	$	(36	)	$	(18	)	$	—	$	—		$	—		$	(54	)
PC	57			(110		)	—		—			—			(53		)
Mobile and ancillary (1)	11			(5		)	2		—			—			8
Other (2)	—			—			—		(2		)	—			(2		)
Total change in deferred revenues	$	32		$	(133	)	$	2	$	(2	)	$	—		$	(101	)

Segment net revenues:
Console	$	1,747		$	119		$	—	$	—		$	—		$	1,866
PC	355			1,236			117		—			(43		)	1,665
Mobile and ancillary (1)	114			183			1,914		—			—			2,211
Other (2)	3			181			—		462			—			646
Total segment net revenues	$	2,219		$	1,719		$	2,031	$	462		$	(43	)	$	6,388



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

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

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



	Year Ended December 31, 2017
Net revenues by platform:
Console	$	2,389
PC	2,042
Mobile and ancillary (1)	2,081
Other (2)	505
Total consolidated net revenues	$	7,017


(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” primarily includes revenues from our Distribution business and the Overwatch League.

(3)

Intersegment revenues reflect licensing and service fees charged between segments.

Long-lived assets by geographic region

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



	At December 31,
	2019		2018		2017
Long-lived assets* by geographic region:
Americas	$	322	$	203	$	197
EMEA	142		62		75
Asia Pacific	21		17		22
Total long-lived assets by geographic region	$	485	$	282	$	294

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, and beginning with 2019, as a result of our adoption of a new lease accounting standard, our lease ROU assets; all other long-term assets are not allocated by location.

Capital Transactions	12 Months Ended
Capital Transactions	Dec. 31, 2019
Equity [Abstract]
Capital Transactions	Capital Transactions Repurchase Programs On January 31, 2019, our Board of Directors authorized a stock repurchase program under which we are authorized to repurchase up to $1.5 billion of our common stock from February 14, 2019 until the earlier of February 13, 2021 and a determination by the Board of Directors to discontinue the repurchase program. As of December 31, 2019, we have not repurchased any shares under this program. On February 2, 2017, our Board of Directors authorized a stock repurchase program under which we were authorized to repurchase up to $1 billion of our common stock from February 13, 2017 through February 12, 2019. We did not repurchase any shares under this program. Dividends On February 6, 2020, our Board of Directors declared a cash dividend of $0.41 per common share. Such dividend is payable on May 6, 2020, to shareholders of record at the close of business on April 15, 2020. 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. On February 9, 2017, our Board of Directors declared a cash dividend of $0.30 per common share. On May 10, 2017, we made an aggregate cash dividend payment of $226 million to shareholders of record at the close of business on March 30, 2017. On May 26, 2017, we made related dividend equivalent payments of less than $1 million to certain holders of restricted stock units.

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

Summary of Significant Accounting Policies - Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2019
Buildings \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	25 years
Buildings \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	33 years
Computer equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	2 years
Computer equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Office furniture and other equipment. \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	2 years
Office furniture and other equipment. \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

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



	For the Years Ended December 31,
	2019			2018			2017
Income before income tax expense:
Domestic	$	328		$	432		$	185
Foreign	1,305			1,445			966
	$	1,633		$	1,877		$	1,151
Income tax expense (benefit):
Current:
Federal	$	136		$	(208	)	$	696
State	24			(15		)	26
Foreign	323			280			335
Total current	483			57			1,057
Deferred:
Federal	781			(153		)	(111		)
State	(16		)	106			(32		)
Foreign	(1,118		)	19			(36		)
Total deferred	(353		)	(28		)	(179		)

Income tax expense	$	130		$	29		$	878



	For the Years Ended December 31,
	2019					2018					2017
Federal income tax provision at statutory rate	$	343		21	%	$	394		21	%	$	403		35	%
State taxes, net of federal benefit	20			1		36			2		4			—
Research and development credits	(38		)	(2	)	(46		)	(2	)	(26		)	(2	)
Foreign rate differential	(104		)	(7	)	(198		)	(11	)	(271		)	(24	)
Change in tax reserves	96			6		285			15		291			25
Acquired net operating loss utilization	—			—		—			—		(36		)	(3	)
Audit settlements	54			3		(115		)	(6	)	—			—
Excess tax benefits related to share-based payments	(2		)	—		(58		)	(3	)	(113		)	(10	)
U.S. Tax Reform Act	—			—		(340		)	(18	)	636			55
Change in valuation allowance	11			1		61			3		—			—
Intra-entity IP Transfer	(230		)	(14	)	—			—		—			—
Other	(20		)	(1	)	10			1		(10		)	—
Income tax expense	$	130		8	%	$	29		2	%	$	878		76	%

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

In October 2019, we completed an intra-entity transfer of certain intellectual property rights to one of our subsidiaries in the U.K., aligning the ownership of these rights with our evolving business. The transfer did not result in a taxable gain; however, our U.K. subsidiary received a step-up in tax basis based on the fair value of the transferred intellectual property rights. Such fair value was determined based on our expectations of future cash flows, long-term growth rates, and discount rates. We recorded a one-time benefit of $230 million in the quarter ended December 31, 2019 for the recognition of a $1.1 billion deferred tax asset in the U.K. related to the amortizable tax basis in the transferred intellectual property, net of uncertain tax positions and valuation allowance, partially offset by a related $920 million deferred tax liability for U.S. taxes on foreign earnings. The U.K. amortizable tax basis will be recovered over a period of three years to 25 years and the related deferred tax asset was measured using the enacted U.K. corporate tax rates for the years in which the amortization will be realized. We recorded a valuation allowance of $110 million for the portion of the deferred tax asset for which it is more-likely-than-not that a benefit will not be realized based on objective evidence available as of December 31, 2019. We will update the measurement and realizability analysis going forward and record the impact from any change in determination in the period of the change.

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

On December 22, 2017, the U.S. Tax Reform Act was enacted. The U.S. Tax Reform Act, among other things, reduced the U.S. corporate income tax rate from 35% to 21%, beginning in 2018, and implemented the Transition Tax. In the fourth quarter of 2018, we completed our analysis of the effect of the U.S. Tax Reform Act and recorded a net tax benefit of $340 million. This is primarily related to adoption of GILTI deferred tax accounting and remeasurement of deferred tax assets and liabilities partially offset by tax expense related to Transition Tax.

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



	As of December 31,
	2019			2018
Deferred tax assets:
Allowance for sales returns and price protection	$	19		$	25
Accrued expenses	28			26
Deferred revenue	119			136
Tax attributes carryforwards	93			81
Share-based compensation	54			69
Intangibles	1,289			43
U.S. deferred taxes on foreign earnings	—			318
Capitalized software development expenses	67			—
Other	109			28
Deferred tax assets	1,778			726
Valuation allowance	(181		)	(61		)
Deferred tax assets, net of valuation allowance	1,597			665
Deferred tax liabilities:
Intangibles	(142		)	(140		)
Capitalized software development expenses	—			(57		)
U.S. deferred taxes on foreign earnings	(594		)	—
Other	(73		)	(26		)
Deferred tax liabilities	(809		)	(223		)
Net deferred tax assets	$	788		$	442

As of December 31, 2019, we had gross tax credit carryforwards of $191 million for state purposes. The tax credit carryforwards are included in Deferred tax assets net of unrealized tax benefits that would apply upon the realization of uncertain tax positions. In addition, we had foreign NOL carryforwards of $32 million at December 31, 2019, attributed mainly to losses in France which can be carried forward indefinitely.

We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, we evaluate the likelihood of realization based on the weight of all positive and negative evidence available. As a result of the Closing Agreement, we received in 2018, we determined at that time that our remaining California research and development credit carryforwards

(“CA R&D Credit”) no longer met the threshold of more likely than not to be realized in the future. As such, consistent with our position at December 31, 2018, we have established a full valuation allowance against our CA R&D Credit. For the year ended December 31, 2019, the valuation allowance related to our CA R&D Credit is $71 million. We will reassess this determination quarterly and record a tax benefit if and when future evidence allows for a partial or full release of this valuation allowance.

As of December 31, 2017, we no longer consider the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested.

Activision Blizzard’s tax years after 2008 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. In addition, as part of purchase price accounting for our 2016 acquisition of King, we assumed $74 million of uncertain tax positions primarily related to pre-acquisition transfer pricing matters. We anticipate resolving King’s transfer pricing for both pre- and post-acquisition tax years through a collaborative multilateral process with the tax authorities in the relevant jurisdictions, which include the U.K. and Sweden. While the outcome of this process remains uncertain, it 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 (the “STA”) informing us of an audit assessment of a Swedish subsidiary of King for the 2016 tax year (the “Initial Decision”). The Initial Decision described the basis for issuing a transfer pricing assessment of approximately 3.5kr billion (approximately $375 million), primarily concerning an alleged intercompany asset transfer. On June 17, 2019, we received a reassessment from the STA (the “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 consolidated financial statements.

In December 2017, we received a Notice of Reassessment from the French Tax Authority (the “FTA”) related to transfer pricing for intercompany transactions involving one of our French subsidiaries for the 2011 through 2013 tax years. The total assessment, including penalties and interest, was approximately €571 million (approximately $638 million). In December 2019, the Company reached a settlement with the FTA for the 2011 through 2018 tax years, resulting in the recognition of $54 million of tax expense in the period ended December 31, 2019 and a tax payment of €161 million (approximately $179 million), including interest and penalties, in January 2020.

In addition, certain of our subsidiaries are under examination or investigation, or may be subject to examination or investigation, by tax authorities in various jurisdictions. These proceedings may lead to adjustments or proposed adjustments to our taxes or provisions for uncertain tax positions. Such proceedings may have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations in the earlier of the period or periods in which the matters are resolved and in which appropriate tax provisions are taken into account in our financial statements. If we were to receive a materially adverse assessment from a taxing jurisdiction, we would plan to vigorously contest it and consider all of our options, including the pursuit of judicial remedies.

As of December 31, 2019, we had approximately $1,037 million of gross unrecognized tax benefits, $661 million of which would affect our effective tax rate, if recognized. A reconciliation of total gross unrecognized tax benefits is as follows (amounts in millions):



	For the Years Ended December 31,
	2019			2018			2017
Unrecognized tax benefits balance at January 1	$	926		$	1,138		$	846
Gross increase for tax positions taken during a prior year	151			103			66
Gross decrease for tax positions taken during a prior year	(168		)	(123		)	—
Gross increase for tax positions taken during the current year	291			132			229
Settlement with taxing authorities	(163		)	(312		)	(1		)
Lapse of statute of limitations	—			(12		)	(2		)
Unrecognized tax benefits balance at December 31	$	1,037		$	926		$	1,138

As of December 31, 2019, 2018, and 2017, we had approximately $72 million, $87 million, and $121 million, respectively, of accrued interest and penalties related to uncertain tax positions. For the years ended December 31, 2019, 2018, and 2017, we recorded $14 million, $11 million, and $28 million, respectively, of interest expense related to uncertain tax positions.

The final resolution of the Company’s global tax disputes is uncertain. There is significant judgment required in the analysis of disputes, including the probability determination and estimation of the potential exposure. Based on current information, in the opinion of the Company’s management, the ultimate resolution of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, liquidity or results of operations, except as noted above.

Restructuring - Schedule of Total Expected Pre-tax Restructuring Charges (Details) $ in Millions	Dec. 31, 2019 USD ($)
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	$ 190
Activision
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	25
Blizzard
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	105
King
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	20
Other segments
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges	$ 40

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2016	$ 9,119	$ 0	$ (5,563)	$ 10,442	$ 4,869	$ (629)
Balance (in shares) at Dec. 31, 2016		1,174	(429)
Components of comprehensive income:
Net income	273				273
Other comprehensive income (loss)	(9)					(9)
Issuance of common stock pursuant to employee stock options	178			178
Issuance of common stock pursuant to employee stock options (in shares)		11
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		2
Restricted stock surrendered for employees’ tax liability	(54)			(54)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	181			181
Dividends ($0.37, $0.34, and $0.30 per common share at December 31, 2019, 2018, and 2017, respectively)	(226)				(226)
Ending balance at Dec. 31, 2017	9,462	$ 0	$ (5,563)	10,747	4,916	(638)
Balance (in shares) at Dec. 31, 2017		1,186	(429)
Components of comprehensive income:
Net income	1,848				1,848
Other comprehensive income (loss)	34					34
Issuance of common stock pursuant to employee stock options	98			98
Issuance of common stock pursuant to employee stock options (in shares)		5
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		2
Restricted stock surrendered for employees’ tax liability	(93)			(93)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	211			211
Dividends ($0.37, $0.34, and $0.30 per common share at December 31, 2019, 2018, and 2017, respectively)	(259)				(259)
Ending 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	1,503				1,503
Other comprehensive income (loss)	(18)					(18)
Issuance of common stock pursuant to employee stock options	105			105
Issuance of common stock pursuant to employee stock options (in shares)		4
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	(58)			(58)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	164			164
Dividends ($0.37, $0.34, and $0.30 per common share at December 31, 2019, 2018, and 2017, respectively)	(283)				(283)
Ending balance at Dec. 31, 2019	$ 12,805	$ 0	$ (5,563)	$ 11,174	$ 7,813	$ (619)
Balance (in shares) at Dec. 31, 2019		1,197	(429)

Goodwill (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill by operating segments

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



	Activision			Blizzard		King		Total
Balance at December 31, 2017	$	6,898		$	190	$	2,675	$	9,763
Other	(1		)	—		—		(1		)
Balance at December 31, 2018	$	6,897		$	190	$	2,675	$	9,762
Other	1			—		1		2
Balance at December 31, 2019	$	6,898		$	190	$	2,676	$	9,764

Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions	1 Months Ended		2 Months Ended	12 Months Ended
	Jan. 31, 2020 USD ($)	Jan. 31, 2020 EUR (€)	Feb. 27, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 EUR (€)
French Tax Authority
Loss Contingencies [Line Items]
Total assessment, including penalties and interest, not recorded					$ 638	€ 571
Tax expense (benefit) related to tax settlement				$ 54
Subsequent Events
Loss Contingencies [Line Items]
Future minimum commitments			$ 600
Subsequent Events \| French Tax Authority
Loss Contingencies [Line Items]
Tax payments, including interest and penalties	$ 179	€ 161
Subsequent Events \| Minimum
Loss Contingencies [Line Items]
Future minimum commitments, period			3 years
Subsequent Events \| Maximum
Loss Contingencies [Line Items]
Future minimum commitments, period			4 years
Subsequent Events \| Marketing
Loss Contingencies [Line Items]
Future minimum commitments, percentage			60.00%
Subsequent Events \| Developer and Hosting
Loss Contingencies [Line Items]
Future minimum commitments, percentage			40.00%
Credit Agreement as Amended
Loss Contingencies [Line Items]
Amount of letters of credit that can be issued under the Revolver				$ 50

Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information (Unaudited)



	For the Quarters Ended
	December 31, 2019		September 30, 2019		June 30, 2019		March 31, 2019
	(Amounts in millions, except per share data)
Net revenues	$	1,986	$	1,282	$	1,396	$	1,825
Cost of revenues	656		442		433		563
Operating income	454		247		336		570
Net income	525		204		328		447
Basic earnings per common share	0.68		0.27		0.43		0.58
Diluted earnings per common share	0.68		0.26		0.43		0.58



	For the Quarters Ended
	December 31, 2018 (1)		September 30, 2018		June 30, 2018		March 31, 2018
	(Amounts in millions, except per share data)
Net revenues	$	2,381	$	1,512	$	1,641	$	1,965
Cost of revenues	832		513		510		662
Operating income	694		265		434		595
Net income	685		260		402		500
Basic earnings per common share	0.90		0.34		0.53		0.66
Diluted earnings per common share	0.89		0.34		0.52		0.65

(1)

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	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Shares not included in computation of diluted EPS due to unmet performance measures	2	4	7
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	6	3	1

Debt - Debt Fair Value (Details) - Unsecured Notes - Fair value measurements using significant other observable inputs (Level 2) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
2026 Notes
Debt Instrument [Line Items]
Fair value of notes	$ 893	$ 800
2027 Notes
Debt Instrument [Line Items]
Fair value of notes		376
2047 Notes
Debt Instrument [Line Items]
Fair value of notes	$ 456	$ 360

Leases (Tables)

12 Months Ended

Dec. 31, 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):



	Year Ended December 31, 2019
Operating leases
Operating lease costs	$	75
Variable lease costs	20

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



	Year Ended December 31, 2019
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	80
ROU assets obtained in exchange for new lease obligations	65

	At December 31, 2019
Weighted Average Lease terms and discount rates
Remaining lease term	5.00 years
Discount rate	4.02		%

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



For the years ending December 31,
2020	$	72
2021	59
2022	50
2023	44
2024	41
Thereafter	37
Total future lease payments	$	303
Less imputed interest	(30		)
Total lease liabilities	$	273

Schedule of ROU Assets and Lease Liabilities

Operating lease ROU assets and liabilities recorded on our consolidated balance sheet as of December 31, 2019, were as follows (amounts in millions):



	At December 31, 2019		Balance Sheet Classification
ROU assets	$	232	Other assets

Current lease liabilities	$	63	Accrued expenses and other current liabilities
Non-current lease liabilities	210		Other liabilities
	$	273	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

Leases - Schedule of Operating ROU Assets and Lease Liabilities (Details) $ in Millions	Dec. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Total lease liabilities	$ 273
Current lease liabilities, accrued expenses and other current liabilities	us-gaap:AccruedLiabilitiesCurrent
Non-current lease liabilities, other liabilities	us-gaap:OtherLiabilitiesNoncurrent
Total lease liabilities	us-gaap:OperatingLeaseLiability
Other assets
Lessee, Lease, Description [Line Items]
ROU assets	$ 232
Accrued expenses and other current liabilities
Lessee, Lease, Description [Line Items]
Current lease liabilities	63
Other liabilities
Lessee, Lease, Description [Line Items]
Non-current lease liabilities	$ 210

Restructuring - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Restructuring - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Provision for inventories	$ 6	$ 6	$ 33
Total expected pre-tax restructuring charges	$ 190
Forecast
Restructuring Cost and Reserve [Line Items]
Total expected pre-tax restructuring charges				$ 50
Severance and employee related costs
Restructuring Cost and Reserve [Line Items]
Percentage of aggregate restructuring charge	60.00%
Facilities and related costs
Restructuring Cost and Reserve [Line Items]
Percentage of aggregate restructuring charge	20.00%
Asset Write-Downs and Other Costs
Restructuring Cost and Reserve [Line Items]
Percentage of aggregate restructuring charge	20.00%
Cost of Sales
Restructuring Cost and Reserve [Line Items]
Provision for inventories	$ 5

Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Cash and Cash Equivalents [Abstract]
Cash	$ 437	$ 268
Foreign government treasury bills	37	32
Money market funds	5,320	3,925
Cash and cash equivalents	$ 5,794	$ 4,225

Interest and Other Expense (Income), Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Income and Expenses [Abstract]
Interest income	$ (79)	$ (65)	$ (24)
Interest expense from debt and amortization of debt discount and deferred financing costs	90	140	162
Unrealized gain on equity investment	(38)	0	0
Other expense (income), net	1	(4)	8
Interest and other expense (income), net	$ (26)	$ 71	$ 146

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2019

Cash and Cash Equivalents [Abstract]

Components of cash and cash equivalents

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



	At December 31,
	2019		2018
Cash	$	437	$	268
Foreign government treasury bills	37		32
Money market funds	5,320		3,925
Cash and cash equivalents	$	5,794	$	4,225

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

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted earnings per common share

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



	For the Years Ended December 31,
	2019		2018		2017
Numerator:
Consolidated net income	$	1,503	$	1,848	$	273

Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	767		762		754
Effect of dilutive stock options and awards under the treasury stock method	4		9		12
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method	771		771		766
Basic earnings per common share	$	1.96	$	2.43	$	0.36
Diluted earnings per common share	$	1.95	$	2.40	$	0.36

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 For the Years Ended December 31,
	2019	2018	2017
Restricted stock units and options with performance measures not yet met	2	4	7
Anti-dilutive employee stock options	6	3	1

Summary of Significant Accounting Policies - Estimated Service Period (Details)	12 Months Ended
	Dec. 31, 2019
Revenue, Performance Obligation [Abstract]
Estimated service period over which revenues are recognized (less than)	12 months

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Net revenues	$ 1,986	$ 1,282	$ 1,396	$ 1,825	$ 2,381	$ 1,512	$ 1,641	$ 1,965	$ 6,489	$ 7,500	$ 7,017
Cost of revenues	656	442	433	563	832	513	510	662
Operating income	454	247	336	570	694	265	434	595	1,607	1,988	1,309
Net income	$ 525	$ 204	$ 328	$ 447	$ 685	$ 260	$ 402	$ 500	$ 1,503	$ 1,848	$ 273
Basic earnings per common share (in dollars per share)	$ 0.68	$ 0.27	$ 0.43	$ 0.58	$ 0.90	$ 0.34	$ 0.53	$ 0.66	$ 1.96	$ 2.43	$ 0.36
Diluted earnings per common share (in dollars per share)	$ 0.68	$ 0.26	$ 0.43	$ 0.58	$ 0.89	$ 0.34	$ 0.52	$ 0.65	$ 1.95	$ 2.40	$ 0.36

- Definition

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

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

+ References + Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Consolidation and Presentation

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

Cash and Cash Equivalents

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

Investment Securities

Financial Instruments

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

Concentration of Credit Risk

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

For the years ended December 31, 2019, 2018, and 2017, Apple, Google, and Sony Interactive Entertainment, Inc. (“Sony”) have been our most significant customers with revenues of 17%, 13%, and 11%, respectively, for 2019, 15%, 11%, and 13%, respectively, for 2018, and 16%, 10%, and 14%, respectively, for 2017. No other customer accounted for 10% or more of our net revenues in the periods discussed above.

We had two customers—Sony and Microsoft—who accounted for 18% and 11%, respectively, of consolidated gross receivables at December 31, 2019. We had two customers—Sony and NetEase, Inc.—who accounted for 15% and 12%, respectively, of consolidated gross receivables at December 31, 2018. No other customer accounted for 10% or more of our consolidated gross receivables in the periods discussed above.

Inventories and Allowances for Obsolescence

Software Development Costs and Intellectual Property Licenses

Assets Recognized from Costs to Obtain a Contract with a Customer

Long-Lived Assets

Property and Equipment.

Goodwill and Other Indefinite-Lived Assets.

Amortizable Intangible and Other Long-lived Assets.

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

Leases

Revenue Recognition

In May 2014, the FASB issued new accounting guidance related to revenue recognition. On January 1, 2018, we adopted the new accounting standard and related amendments.


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


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


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


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

We determine revenue recognition by:


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


•	identifying the performance obligations in each contract;


•	determining the transaction price;


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


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

Product Sales

Products with Online Functionality

Online Hosted Software Arrangements

Subscription, Licensing, and Other Revenues

Subscription Arrangements

Software Licensing Revenues

Other Revenues

Significant Judgment around Revenue Arrangements with Multiple Deliverables

Estimated Service Period

Principal Agent Considerations


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


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

Allowances for Returns and Price Protection

Contract Balances

Refer to Note 11 for further information, including changes in deferred revenue during the period.

Shipping and Handling

Cost of Revenues

Our cost of revenues consist of the following:

Cost of revenues—product sales:


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

(2)

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


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

(2)

Advertising Expenses

Income Taxes

Foreign Currency Translation

Earnings (Loss) Per Common Share

Share-Based Payments

Loss Contingencies

Software Development and Intellectual Property Licenses (Tables)

12 Months Ended

Dec. 31, 2019

Software Development Costs and Intellectual Property Licenses

Summarizes the components of software development and intellectual property licenses

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



	At December 31,
	2019		2018
Internally-developed software costs	$	345	$	291
Payments made to third-party software developers	31		38
Total software development costs	$	376	$	329

Amortization of software development costs and intellectual property licenses

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



	For the Years Ended December 31,
	2019		2018		2017
Amortization of capitalized software development costs and intellectual property licenses	$	241	$	501	$	314

Intangible Assets, Net - Future Amortization Schedule (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Definite-lived intangible assets, future amortization expense disclosure
2020	$ 75
2021	11
2022	7
2023	2
2024	1
Thereafter	2
Net carrying amount, definite-lived intangible assets	$ 98	$ 302

Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Other current assets	$ 296	$ 531	$ 539
Other assets	658	734	482
Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities	1,248	950	896
Other liabilities	$ 945	1,357	$ 1,167
Accounting Standards Update 2016-02
Assets
Other current assets		(8)
Other assets		252
Liabilities and Shareholders’ Equity
Accrued expenses and other liabilities		54
Other liabilities		$ 190

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

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



	For the Years Ended December 31,
	2019		2018		2017
Supplemental cash flow information:
Cash paid for income taxes, net of refunds	$	319	$	560	$	176
Cash paid for interest	86		150		145

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



	At December 31,
	2019		2018		2017
Beginning restricted cash	$	4	$	7	$	17
Ending restricted cash	4		4		7

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowances for sales returns and price protection and other allowances
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Valuation and qualifying accounts, balance at the beginning of period	$ 186	$ 274	$ 257
Valuation and qualifying accounts, additions	11	24	83
Valuation and qualifying accounts, deductions	(79)	(112)	(66)
Valuation and qualifying accounts, balance at the end of period	118	186	274
Valuation allowance for deferred tax assets
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Valuation and qualifying accounts, balance at the beginning of period	61	0
Valuation and qualifying accounts, additions	127	61
Valuation and qualifying accounts, deductions	(7)	0
Valuation and qualifying accounts, balance at the end of period	$ 181	$ 61	$ 0

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2019

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

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



	At December 31,
	2019		2018
Cash	$	437	$	268
Foreign government treasury bills	37		32
Money market funds	5,320		3,925
Cash and cash equivalents	$	5,794	$	4,225

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Summary of debt

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



	At December 31, 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		(7		)	843
2027 Notes	400		(5		)	395
2047 Notes	400		(9		)	391
Total long-term debt	$	2,700	$	(25	)	$	2,675



	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 December 31, 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,
2020	$	—
2021	650
2022	400
2023	—
2024	—
Thereafter	1,650
Total	$	2,700

Share-Based Payments - Restricted Stock Units and Restricted Stock Awards Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock
Restricted stock rights activity
Restricted stock rights at the beginning of the period (in shares)	10,623
Restricted stock rights, granted (in shares)	4,426
Restricted stock rights, vested (in shares)	(2,758)
Restricted stock rights, forfeited (in shares)	(2,963)
Restricted stock rights at the ending of the period (in shares)	9,328	10,623
Restricted stock rights, weighted-average grant date fair value information
Restricted stock rights, weighted-average grant date fair value at the beginning of the period (in dollars per share)	$ 40.39
Restricted stock rights, weighted-average grant date fair value, granted (in dollars per share)	45.55
Restricted stock rights, weighted-average grant date fair value, vested (in dollars per share)	47.86
Restricted stock rights, weighted-average grant date fair value, forfeited (in dollars per share)	54.61
Restricted stock rights, weighted-average grant date fair value (in dollars per share) ending balance	$ 32.60	$ 40.39
Share-based compensation, unrecognized compensation	$ 96
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 7 months 20 days
Total fair value of shares vested	$ 147	$ 120	$ 64
Performance shares
Restricted stock rights, weighted-average grant date fair value information
Performance-vesting restricted stock rights for which the accounting grant date has not been set (shares)	3,200
Performance-vesting restricted stock rights granted without an accounting grant date (shares)	1,900
Share-based compensation, unrecognized compensation	$ 50
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 7 months 17 days
Employee Stock Option And Restricted Stock
Restricted stock rights, weighted-average grant date fair value information
Income tax benefit from stock option exercises and restricted stock rights	$ 47	$ 94	$ 160

Deferred Revenues (Details) - USD ($) $ in Billions	12 Months Ended
Deferred Revenues (Details) - USD ($) $ in Billions	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2019
Revenue from Contract with Customer [Abstract]
Deferred revenues	$ 1.4		$ 1.6
Revenue recognized included in beginning deferred revenue	$ 1.5	$ 1.7

Share-Based Payments - Equity Incentive Plans (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2019	Jun. 05, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for grant under share-based awards (in shares)		46
Aggregate common stock reserved for issuance under share-based awards (in shares)	24
Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of options	10 years
Stock Option Plan \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	3 years
Stock Option Plan \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	5 years
Restricted Stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	3 years
Restricted Stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award	5 years

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 5,422	$ 4,121
Fair value measurements using quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	5,422	4,107
Fair value measurements using significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	14
Fair value measurements using significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	5,320	3,925
Cash and cash equivalents \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	37	32
Cash and cash equivalents \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	5,320	3,925
Cash and cash equivalents \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	37	32
Cash and cash equivalents \| Fair value measurements using significant other observable inputs (Level 2) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Fair value measurements using significant unobservable inputs (Level 3) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	65	150
Other current assets \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		13
Other current assets \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		1
Other current assets \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	65	150
Other current assets \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		0
Other current assets \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		0
Other current assets \| Fair value measurements using significant other observable inputs (Level 2) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		13
Other current assets \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		1
Other current assets \| Fair value measurements using significant unobservable inputs (Level 3) \| U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Designated as Hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		0
Other current assets \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		0
Accrued expenses and other liabilities \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	(2)	(1)
Accrued expenses and other liabilities \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	(2)
Accrued expenses and other liabilities \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	0	0
Accrued expenses and other liabilities \| Fair value measurements using quoted prices in active markets for identical assets (Level 1) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	0
Accrued expenses and other liabilities \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	(2)	(1)
Accrued expenses and other liabilities \| Fair value measurements using significant other observable inputs (Level 2) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	(2)
Accrued expenses and other liabilities \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Designated as Hedges
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	0	$ 0
Accrued expenses and other liabilities \| Fair value measurements using significant unobservable inputs (Level 3) \| Foreign currency forward contracts \| Not Designated as Hedging Instrument
Liabilities measured at fair value on a recurring basis, gain loss included in earnings
Total liabilities at fair value	$ 0