0001628280-23-004842 | 10-K | XBRL Viewer

Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Intangible Assets, Net (Excluding Goodwill) [Abstract]

7. Intangible Assets, Net

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


	At December 31, 2022
	Estimated useful lives			Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired definite-lived intangible assets (1):



Trade names and other	1	-	10 years	$	90	$	(81)	$	9


Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	442

(1) Beginning with the first quarter of 2022, the balances of the internally-developed franchises intangible assets have been removed as such amounts were fully amortized in the prior year.


	At December 31, 2021
	Estimated useful lives			Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,154)	$	—



Trade names and other	1	-	10 years	80		(66)		14
Total definite-lived intangible assets				$	1,234	$	(1,220)	$	14

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	447

Share-Based Payments

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Payments

16. 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 (“RSUs”), 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, including those which are market-based. Achievement against such performance measures typically results in vesting of amounts that are different than the target shares at grant based on over- or under-achievement against the performance targets. Typically, performance-based RSUs provide for vesting up to 125% of the grant date target shares if performance targets are sufficiently overachieved (and will be cancelled without the vesting of any shares if the threshold level of performance measures is not met), but in certain instances some of our unvested performance-based RSUs can vest up to 250% of the grant date target amount based on achievement against the performance targets.

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, 2022, we had approximately 9 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’ cancellation, exercise, and post-vesting termination behavior.

The following table presents the weighted-average assumptions, weighted average grant date fair value, and the range of expected stock price volatility (the Company did not grant any stock options during the year ended December 31, 2022):


	Employee Stock Options
	For the Years Ended December 31,
	2021			2020
Expected life (in years)	7.61			7.70
Volatility	31.06		%	30.89		%
Risk free interest rate	1.29		%	0.70		%
Dividend yield	0.51		%	0.53		%
Weighted-average grant date fair value	$	30.65		$	25.93
Stock price volatility range:
Low	31.00		%	30.00		%
High	35.00		%	39.00		%

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.

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

The fair value of the Company’s RSU awards granted are generally based upon the closing price of the Company’s common stock on the date of grant reduced by the present value of dividends expected to be paid on our common stock prior to vesting. We also grant market-based RSU awards, from time to time, the fair value of which is determined using a Monte Carlo simulation. Such market-based RSU awards include performance conditions based on our own stock price and may also include performance conditions that compare our stock price performance to an index, such as the S&P 500 Total Shareholder Return index. The valuation assumptions utilized in the Monte Carlo model are generally consistent with the inputs discussed in the valuation of stock options above. The weighted average risk-free interest rate, volatility, and dividend yield utilized in the Monte Carlo model for market-based RSU awards in 2020 were 0.11%, 37.39%, and 0.47%, respectively.

On December 14, 2021, we granted approximately 1.6 million RSU awards which were valued at approximately $70.00 per share rather than the closing share price on the date of grant of $59.52. None of these awards were granted to named executive officers of the Company. While these grants were not made in contemplation of the Company’s announcement of the Merger Agreement (see Note 1) entered into with Microsoft, in light of the proximity to when the Company became aware of a potential merger and the signing date of the Merger Agreement, the Company has determined the fair value for these awards should consider potential subsequent value appreciation that would be expected from the market upon announcement of the Merger. In determining the adjustment to the closing share price to estimate the fair value of these awards, the Company considered various factors such as observable share prices before and after announcement of a merger in recent transactions, the offer price range known at time of the grants being made, the final merger per share consideration, the actual increase in share price seen after announcement of the Merger, industry practices in applying liquidity discounts and probability of the Merger being entered into. The awards vest over their requisite service period and do not provide for any accelerated vesting or other features as a result of entering into or upon closing of the Merger.

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 ten years into the future. 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 per stock option		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2021	9,133	$	57.77

Exercised	(1,022)	45.22
Forfeited	(181)	74.12
Expired	(69)	76.97
Outstanding stock options at December 31, 2022	7,861	$	58.85	6.17	$	157
Vested and expected to vest at December 31, 2022	7,749	$	58.46	6.15	$	157
Exercisable at December 31, 2022	6,297	$	53.10	5.77	$	153

The aggregate intrinsic value 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 $34 million, $88 million, and $174 million for the years ended December 31, 2022, 2021, and 2020, respectively. The total grant date fair value of options that vested during the years ended December 31, 2022, 2021, and 2020 was $37 million, $57 million, and $62 million, respectively.

At December 31, 2022, $10 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 0.75 years.

RSU Activity

We grant RSUs, which represent the right to receive shares of our common stock. Vesting for RSUs is generally contingent upon the holder’s 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, including those that are market-based, 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 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, including those with market conditions, presented at 100% of the target level shares that may potentially vest (amounts in thousands, except per share data):


	Number of shares	Weighted- average grant date fair value per RSU
Unvested RSUs at December 31, 2021	13,258	$	75.51
Granted	9,082	78.14
Vested	(7,075)	79.45
Forfeited	(1,511)	82.14
Unvested RSUs at December 31, 2022	13,754	$	74.53

Certain of our performance-based RSUs did not have an accounting grant date as of December 31, 2022, as for each such grant 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, the goals for which have yet to be set. As of December 31, 2022, based on the target potential shares that could be earned, there were 0.9 million performance-based RSUs outstanding for which the accounting grant date had not been set. Accordingly, no grant date fair value was established and the weighted average grant date fair values calculated above excludes these RSUs.

At December 31, 2022, approximately $481 million of total unrecognized compensation cost was related to RSUs and is expected to be recognized over a weighted-average period of 1.43 years. The total grant date fair value of RSUs that vested during the years ended December 31, 2022, 2021, and 2020 was $335 million, $306 million, and $82 million, respectively.

The income tax benefit from stock option exercises and RSU vestings was $83 million, $70 million, and $61 million for the years ended December 31, 2022, 2021, and 2020, 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,
	2022		2021		2020
Cost of revenues—product sales: Software royalties and amortization	$	21	$	17	$	14
Cost of revenues—in-game, subscription, and other: Game operations and distribution costs	7		7		1
Cost of revenues—in-game, subscription, and other: Software royalties and amortization	3		—		—
Product development	224		211		42
Sales and marketing	58		44		21
General and administrative	149		229		140
Share-based compensation expense before income taxes	462		508		218
Income tax benefit	(77)		(36)		(28)
Total share-based compensation expense, net of income tax benefit	$	385	$	472	$	190

Share-based compensation expense for the years ended December 31, 2022 and 2021 includes $95 million and $194 million, respectively, for liability awards accounted for under ASC 718. The liability awards primarily relate to the portion of Company’s compensation payments for 2022 and 2021 for which the Company determined to settle certain amounts not yet paid as of year-end under its annual performance plans in stock as opposed to cash.

Total share-based compensation expense capitalized to our consolidated balance sheets as a component of “Software Development” for the years ended December 31, 2022, 2021, and 2020 was $170 million, $63 million, and $23 million, respectively.

Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

6. Property and Equipment, Net

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


	At December 31,
	2022		2021
Land	$	1	$	1
Buildings	3		4
Leasehold improvements	244		227
Computer and server equipment	653		703
Office furniture and other equipment	90		90
Total cost of property and equipment	991		1,025
Less accumulated depreciation	(798)		(856)
Property and equipment, net	$	193	$	169

Depreciation expense for the years ended December 31, 2022, 2021, and 2020 was $91 million, $105 million, and $117 million, respectively.

Share-Based Payments - Stock Option Activities (Details) - Stock Option Plan $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Stock option activity, shares
Stock options at the beginning of the period (in shares) \| shares	9,133
Stock options, exercised (in shares) \| shares	(1,022)
Stock options, forfeited (in shares) \| shares	(181)
Stock options, expired (in shares) \| shares	(69)
Stock options at the end of the period (in shares) \| shares	7,861
Stock options, vested and expected to vest (in shares) \| shares	7,749
Stock options, exercisable (in shares) \| shares	6,297
Weighted-average exercise price per stock option
Stock options, weighted-average strike price at the beginning of the period (in dollars per share) \| $ / shares	$ 57.77
Stock options, weighted-average exercise price, exercised (in dollars per share) \| $ / shares	45.22
Stock options, weighted-average exercise price, forfeited (in dollars per share) \| $ / shares	74.12
Stock options, weighted-average exercise price, expired (in dollars per share) \| $ / shares	76.97
Stock options, weighted-average strike price at the end of the period (in dollars per share) \| $ / shares	58.85
Stock options, weighted-average exercise price, vested and expected to vest (in dollars per share) \| $ / shares	58.46
Stock options, weighted-average exercise price, exercisable (in dollars per share) \| $ / shares	$ 53.10
Stock options, weighted-average remaining contractual term	6 years 2 months 1 day
Stock options, weighted-average remaining contractual term, vested and expected to vest	6 years 1 month 24 days
Stock options, weighted-average remaining contractual term, exercisable	5 years 9 months 7 days
Stock options, aggregate intrinsic value \| $	$ 157
Stock options, aggregate intrinsic value, vested and expected to vest \| $	157
Stock options, aggregate intrinsic value, exercisable \| $	$ 153

Restructuring - Total Restructuring and Related Costs by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	$ (3)	$ 77	$ 94
2019 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	(3)	79	87
Activision \| 2019 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	0	2	13
Blizzard \| 2019 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	(3)	70	71
King \| 2019 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	0	1	(1)
Other segments \| 2019 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related costs	$ 0	$ 6	$ 4

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Consolidation and Presentation

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

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

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

Cash and Cash Equivalents

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

Investment Securities

We determine the classification of investments (e.g., held-to-maturity, available-for-sale or trading) in debt securities at the time of purchase and reevaluate such designation as of each reporting period. Investments in debt securities are designated as held-to-maturity when we have the positive intent and ability to hold the securities to maturity. Otherwise, they are classified as available-for-sale.

Held-to-maturity investments

Held-to-maturity investments are carried at amortized cost. Interest and amortization of discounts and premiums, which is computed under the effective interest method, are included in “Other (income) expense, net” in our consolidated statements of operations.

On initial recognition and on an ongoing basis, we evaluate our held-to-maturity investments for expected credit losses collectively, when they share similar risk characteristics, or individually, when the risk characteristics are different. An increase or a decrease in the allowance for expected credit losses is recorded through income as a credit loss expense or a reversal thereof. The allowance for expected credit losses is presented as a deduction from the amortized cost. A held-to-maturity investment security is written off when deemed uncollectible.

No expected credit losses have been recognized for the year ended December 31, 2022.

Available-for-sale investments

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 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 “Other (income) expense, net” in our consolidated statements of operations.

Equity investments

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. Investments in equity securities with a readily determinable fair value are measured at fair value each reporting period, with unrealized gains and losses recorded within “Other (income) expense, net” in our consolidated statements of operations.

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.

We transact business in various foreign currencies and have 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 values 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 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 hedged 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, issuers of investment securities we have purchased, 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 investment securities consist primarily of US government treasury bills and bonds.

We sell our games and content directly to end consumers in certain instances, such as sales through Battle.net, and also through platform providers, digital storefronts, retailers and distributors, including mass-market retailers, 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 platform providers and maintain allowances for potential credit losses. We generally do not require collateral or other security from our customers.

Customers and platform providers exceeding 10% or more of our consolidated net revenues and consolidated gross receivables were approximately as follows:


	For the Years Ended December 31,
	2022		2021		2020
Revenues:
Apple Inc.	20	%	17	%	15	%
Google Inc.	18	%	17	%	14	%
Sony Interactive Entertainment Inc.	13	%	15	%	17	%
Microsoft Corporation	*		*		11	%

	At December 31,
	2022		2021
Gross Receivables:
Sony Interactive Entertainment Inc.	22	%	22	%
Microsoft Corporation	20	%	20	%
Google Inc.	10	%	*

* Did not account for 10% or more of our consolidated net revenues and consolidated gross receivables for the noted period.

Software Development Costs and Intellectual Property Licenses

Software development costs include direct costs incurred for internally developed products, as well as payments made to independent software developers under development agreements. Software development costs are capitalized once the 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. 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. Significant management judgments and estimates are applied in assessing when capitalization commences for software development costs and the evaluation is performed on a product-by-product basis.

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 and amortization.” 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 and amortization” based on the higher of the ratio of current revenues to total projected revenues for the specific product, or on a straight-line basis over the product’s estimated economic life. As we have continued to focus on delivering increased content to our players and to deliver such content more frequently through in-game updates, we are seeing our titles being monetized over longer periods of time. Accordingly, the estimated economic lives of our most recent titles have generally extended and the capitalized software costs are being amortized over longer periods of time in those cases. As of December 31, 2022, the amortization periods of our capitalized software costs are from six months to approximately three years. This is also resulting in an increased portion of our capitalized software costs being classified as non-current on our consolidated balance sheet.

We evaluate the future recoverability of capitalized software development costs on a quarterly basis. Recoverability is evaluated based on the current and expected performance of the specific products to which the costs relate or in which the licensed trademark or copyright is to be used. Additionally, criteria used to evaluate expected product performance may include, as appropriate: 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.

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

Assets Recognized from Costs to Obtain a Contract with a Customer

We capitalize costs to obtain a contract with a customer, such as platform provider fees on each sale made to players through the provider’s digital storefront, along with third-party developer royalties, and amortize these into cost of revenues in our consolidated statement of operations in the period during which the associated revenues are recognized. 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 platform provider fees and developer royalties at December 31, 2022 and 2021 were $160 million and $30 million, respectively. Substantially all capitalized costs to obtain a contract with a customer are expected to be amortized within 12 months as of December 31, 2022 and 2021, respectively.

Long-Lived Assets

Property and Equipment.

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

Goodwill and Other Indefinite-Lived Assets.

Goodwill is considered to have an indefinite life and is carried at cost. Acquired trade names are assessed as indefinite lived assets if there are 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, 2022 and 2021, our reporting units were 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 determine the fair value of the related reporting unit and compare 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, an impairment charge is recorded for this amount. Based on our annual impairment assessment, no impairments of goodwill were identified for the years ended December 31, 2022, 2021, and 2020.

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. Based on our annual impairment assessment, no impairments of our acquired trade names were identified for the years ended December 31, 2022, 2021, and 2020.

Changes in our assumptions underlying our estimates could result in future impairment charges.

Amortizable Intangible and Other Long-lived Assets.

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

We evaluate the recoverability of our definite-lived intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists. We consider certain events and circumstances in determining whether the carrying value of identifiable intangible assets and other long-lived assets, other than indefinite-lived intangible assets, may not be recoverable including, but not limited to: significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; a significant decline in our stock price for a sustained period of time; and changes in our business strategy. If we determine that the carrying value may not be recoverable, we estimate the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group to determine whether an impairment exists. If an impairment is indicated based on a comparison of the asset groups’ carrying values and the undiscounted cash flows, the impairment loss is measured as the amount by which the carrying amount of the asset group exceeds its fair value. We did not record an impairment charge to our definite-lived intangible assets for the years ended December 31, 2022, 2021, and 2020.

Leases

We determine if an arrangement is or contains a lease at contract inception. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or 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 right-of-use (“ROU”) asset also includes any lease payments made prior to the lease commencement date, 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 an approximation of the rate that would be charged to borrow funds to purchase the leased asset over a similar term, and is based on the information available at the commencement date of the lease. For leased assets with similar lease terms and asset types, we applied a portfolio approach in determining a single incremental borrowing rate for the leased assets.

In determining our lease liability, the lease term includes options to extend 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.

Revenue Recognition

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:

•premium full games, which typically provide access to main game content after purchase;

•free-to-play offerings, which allows players to download the game and engage with the associated content for free;

•in-game content for purchase to enhance gameplay (i.e., microtransactions and downloadable content) available within both our premium full-game and free-to-play offerings;

•subscriptions to players in World of Warcraft that provide ongoing access to the game content; and

•advertising services for third-party companies to reach and engage with our players, primarily within our free-to-play offerings.

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 digital full-game downloads and physical products. 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 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, 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, 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.

In-game, Subscription, and Other Revenues

In-game Revenues

In-game revenues primarily includes revenues from microtransactions and downloadable content. 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 estimated service period.

Subscription Revenues

Subscription revenue arrangements are mostly derived from World of Warcraft, which is only playable online 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 “In-game, subscription, and other revenues.”

Other Revenues

Other revenues primarily include revenues from software licensing, licensing of intellectual property other than software, and advertising in our games. These revenues are recognized in "In-game, subscription, and other revenues" on our consolidated statement of operations.

In certain countries we have software licensing arrangements where 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 the licensing of intellectual property other than software 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.

Revenues from advertising arise primarily from contractual relationships with advertising networks, agencies, advertising brokers and directly with advertisers to display advertisements in our games. For all advertising arrangements, we are the principal and our performance obligation is to provide the inventory for advertisements to be displayed in our games. Our advertising arrangements are primarily impression-based and we recognize revenue from these in the contracted period in which the impressions are delivered. Impressions are considered delivered when an advertisement is displayed to users. The pricing and terms for all our advertising arrangements are governed by either a master contract or insertion order. The transaction price in advertising arrangements governed by a master contract is generally based on a revenue share percentage stated in the contract. The transaction price in advertising arrangements governed by an insertion order is generally the product of the number of advertising units delivered (e.g., impressions, videos viewed) and the contractually agreed upon price per advertising unit.

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’ unique purchase or first day played online, and the time at which players become inactive and cease engaging with our content for a period of time. We also consider known online trends such as the cadence of content delivery in our games, 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 significant management judgment. The estimated service periods for players of our current games are less than 12 months.

Additionally, in the fourth quarter of 2022, the Company completed its annual assessment of the estimated service periods for players of our games. We have noted that players who purchase in-game content are playing certain of our titles, notably those in our Call of Duty and World of Warcraft offerings, for longer periods of time than in prior years as they engage with services we provide that are designed to enhance and extend gameplay. As such, we have concluded that the estimated service period for in-game revenues from such games has lengthened by approximately three months.

Based on the carrying amount of deferred revenue and deferred cost of revenue as of September 30, 2022, the change resulted in a decrease in net revenues recognized of $103 million, a decrease in cost of revenues recognized of $9 million, and a decrease in earnings per diluted share of $0.10 during the three months ended December 31, 2022. Such amounts will now be recognized during the year ending December 31, 2023. The change in the estimated service period had no impact on net bookings, segment net revenues, or net cash provided by operating activities.

Future usage patterns could change from historical patterns as a result of various factors, including, but not limited to, changes in our online content, frequency of content delivery, competitor’s offerings, and other changes that impact player’s engagement that we may not be able to reasonable predict at the time of deriving our estimate. If future usage patterns were to change significantly from historical patterns, in the future our estimated service period could change again and materially impact our future consolidated net revenues and operating income.

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, the Google Play Store, and Valve’s Steam storefront, 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, the Google Play Store, and Valve’s Steam storefront, 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 delivery of sell-through reports to us. We may also consider 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.

Based upon historical experience, we believe that our estimates are reasonable. However, actual returns and price protection could vary from our allowance estimates and therefore impact the amount and timing of our revenues for any period if conditions change or if matters resolve in a manner that is inconsistent with management’s assumptions utilized in determining the allowances.

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 expected credit 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, platform provider fees 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 and amortization”—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—in-game, subscription, 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. Platform provider fees incurred are capitalized and amortized over the same period as the associated revenues.

(2) “Software royalties and amortization”—includes the amortization of capitalized software costs and royalties attributable to in-game, subscription, 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 in-game, subscription, and other revenues.

Advertising Expenses

We expense advertising as incurred, except for production costs associated with media advertising, which are deferred and charged to expense when the related advertisement is run for the first time. Advertising expenses for the years ended December 31, 2022, 2021, and 2020 were $882 million, $736 million, and $746 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, the U.S. enacted the Tax Cuts and Jobs Act which also created a new minimum tax that applies to certain foreign earnings (“GILTI”). We have elected to recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years.

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 Per Common Share

“Basic earnings per common share” is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the periods presented. “Diluted earnings per common share” is computed by dividing income 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 per common share calculation when inclusion of such shares would be anti-dilutive.

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 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 vest based on the achievement of pre-established performance conditions, including those that are market-based. For performance-based restricted stock units not subject to market conditions, 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. Additionally, any obligations that are based predominantly on fixed monetary amounts that are generally known at inception of the obligation, and are to be settled with a variable number of shares of our common stock, are liability classified with expense recognized ratably over the vesting period. Liability classified awards are subsequently reclassified to equity upon settlement in shares of our common stock.

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.

Held-to-Maturity Investments - Additional Information (Details)	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity investments, term	12 months

Share-Based Payments - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	$ 462	$ 508	$ 218
Income tax benefit	(77)	(36)	(28)
Total share-based compensation expense, net of income tax benefit	385	472	190
Cost of revenues—product sales: Software royalties and amortization
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	21	17	14
Game operations and distribution costs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	7	7	1
Software royalties and amortization
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	3	0	0
Product development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	224	211	42
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	58	44	21
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense before income taxes	$ 149	$ 229	$ 140

Share-Based Payments - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		12 Months Ended
	Dec. 14, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	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)					46,000
Aggregate common stock reserved for issuance under share-based awards (in shares)		9,000
Restricted stock rights, closing share price, granted (in dollars per share)	$ 59.52
Share-based compensation liability		$ 95	$ 194
Share-based payment arrangement, amount capitalized		$ 170	$ 63	$ 23
Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of options		10 years
Risk free interest rate			1.29%	0.70%
Volatility			31.06%	30.89%
Dividend yield			0.51%	0.53%
Stock options, intrinsic value of options exercised		$ 34	$ 88	$ 174
Total grant date fair value of options vested		37	57	62
Share-based compensation, unrecognized compensation		$ 10
Share-based compensation, unrecognized compensation weighted-average period of recognition		9 months
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock rights, granted (in shares)		9,082
Restricted stock rights, weighted-average grant date fair value, granted (in dollars per share)		$ 78.14
Share-based compensation, unrecognized compensation		$ 481
Share-based compensation, unrecognized compensation weighted-average period of recognition		1 year 5 months 4 days
Total fair value of shares vested		$ 335	306	$ 82
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent		125.00%
Performance-vesting restricted stock rights for which the accounting grant date has not been set (in shares)		900
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate				0.11%
Volatility				37.39%
Dividend yield				0.47%
Restricted stock rights, granted (in shares)	1,600
Restricted stock rights, weighted-average grant date fair value, granted (in dollars per share)	$ 70.00
Employee Stock Option And Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit from stock option exercises and restricted stock rights		$ 83	$ 70	$ 61
Minimum \| Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award		3 years
Minimum \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award		3 years
Maximum \| Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award		5 years
Maximum \| Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of award		5 years
Maximum \| Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percent		250.00%

Held-to-Maturity Investments

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Held-to-Maturity Investments

4. Held-to-Maturity Investments

The following table summarizes the Company's held-to-maturity investments at December 31, 2022 (amount in millions):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized losses		Estimated Fair Value (Level 1)
U.S. treasuries and government agency securities	$	4,932	$	1	$	(3)	$	4,930

At December 31, 2022, all contractual maturities of held-to-maturity investments were less than 12 months.

Summary of Significant Accounting Policies - Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2022
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 and server equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	2 years
Computer and server 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

Restructuring

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring

17. Restructuring

During 2019, we began implementing a plan aimed at refocusing our resources on our largest opportunities and removing unnecessary levels of complexity from certain parts of our business. We substantially completed all actions under our plan and accrued for these costs accordingly as of December 31, 2021. The remaining activity under the plan is primarily related to cash outlays to be made over time to impacted personnel.

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


	Severance and employee related costs		Facilities and related costs		Other costs		Total
























Balance at December 31, 2020	$	88	$	—	$	3	$	91
Costs charged to expense	36		16		27		79
Cash payments	(55)		—		(6)		(61)
Non-cash charge adjustment (1)	(5)		(16)		(3)		(24)
Balance at December 31, 2021	$	64	$	—	$	21	$	85

Cash payments	(34)		—		(8)		(42)
Non-cash charge and other adjustments	(4)		—		(5)		(9)
Balance at December 31, 2022	$	26	$	—	$	8	$	34

(1)Adjustments primarily relate to non-cash charges included in “Costs charged to expense” for 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):


	For the Years Ended December 31,
		2022		2021		2020
Activision		$	—	$	2	$	13
Blizzard		(3)		70		71
King		—		1		(1)
Other segments (1)		—		6		4
Total		$	(3)	$	79	$	87

(1)Includes charges outside of our reportable segments, including charges for our corporate and administrative functions.

During the years ended December 31, 2021 and 2020, we incurred additional restructuring charges and adjustments that are not included in the plan discussed above. Such amounts were not material.

Restructuring (Tables)

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities


	Severance and employee related costs		Facilities and related costs		Other costs		Total
























Balance at December 31, 2020	$	88	$	—	$	3	$	91
Costs charged to expense	36		16		27		79
Cash payments	(55)		—		(6)		(61)
Non-cash charge adjustment (1)	(5)		(16)		(3)		(24)
Balance at December 31, 2021	$	64	$	—	$	21	$	85

Cash payments	(34)		—		(8)		(42)
Non-cash charge and other adjustments	(4)		—		(5)		(9)
Balance at December 31, 2022	$	26	$	—	$	8	$	34

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

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


	For the Years Ended December 31,
		2022		2021		2020
Activision		$	—	$	2	$	13
Blizzard		(3)		70		71
King		—		1		(1)
Other segments (1)		—		6		4
Total		$	(3)	$	79	$	87

(1)Includes charges outside of our reportable segments, including charges for our corporate and administrative functions.

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

12. Leases

Our lease arrangements are primarily for: (1) corporate, administrative, and development studio offices; and (2) data centers and server equipment. Our existing leases have remaining lease terms ranging from one to seven years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by one to five years for each option. The exercise of lease renewal options is generally at our sole discretion. All of our existing leases are classified as operating leases.

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


	Years Ended December 31,
	2022		2021		2020
Operating leases
Operating lease costs	$	85	$	78	$	75
Variable lease costs	24		18		20

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


	Years Ended December 31,
	2022			2021			2020
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	93		$	75		$	77


ROU assets obtained in exchange for new lease obligations	47			64			80


	At December 31,
	2022			2021
Weighted Average Lease terms and discount rates
Remaining lease term	3.62 years			4.10 years
Discount rate	3.34		%	3.01		%

Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at December 31, 2022, are as follows (amounts in millions):


For the years ending December 31,
2023	$	89
2024	71
2025	47
2026	26
2027	20
Thereafter	7
Total future lease payments	$	260
Less imputed interest	(15)
Total lease liabilities	$	245

Operating lease ROU assets and liabilities recorded on our consolidated balance sheet as of December 31, 2022 and December 31, 2021, were as follows (amounts in millions):


	At December 31,
	2022		2021		Balance Sheet Classification
ROU assets	$	210	$	237	Other assets

Current lease liabilities	$	83	$	77	Accrued expenses and other current liabilities
Non-current lease liabilities	162		212		Other liabilities
	$	245	$	289	Total lease liabilities

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 1,513	$ 2,699	$ 2,197
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(30)	(17)	35
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	(14)	53	(36)
Unrealized gains (losses) on available-for-sale securities, net of tax	(3)	8	(2)
Total other comprehensive (loss) income	(47)	44	(3)
Comprehensive income	$ 1,466	$ 2,743	$ 2,194

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124442407-227067

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21463-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=118261656&loc=d3e32136-110900

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=124507222&loc=d3e1436-108581

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 45
-Paragraph 20
-URI https://asc.fasb.org/extlink&oid=118261656&loc=d3e32211-110900

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6450520&loc=d3e32583-110901

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124442411-227067

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

+ Details

Leases - Schedule of Future Lease Payments Under Non-cancellable Operating Leases (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 89
2024	71
2025	47
2026	26
2027	20
Thereafter	7
Total future lease payments	260
Less imputed interest	(15)
Total lease liabilities	$ 245	$ 289

Leases - Schedule of Lease Expense and Other Details Related to Operating Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Operating leases
Operating lease costs	$ 85	$ 78	$ 75
Variable lease costs	24	18	20
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	93	75	77
ROU assets obtained in exchange for new lease obligations	$ 47	$ 64	$ 80
Weighted Average Lease terms and discount rates
Remaining lease term	3 years 7 months 13 days	4 years 1 month 6 days
Discount rate	3.34%	3.01%

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2022

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

Accumulated Other Comprehensive Income (Loss)

14. 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, 2022
	Foreign currency translation adjustments		Unrealized gain (loss) on available-for- sale securities		Unrealized gain (loss) on forward contracts		Total
Balance at December 31, 2021	$	(606)	$	3	$	25	$	(578)
Other comprehensive income (loss) before reclassifications	(30)		19		39		28
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		(22)		(53)		(75)
Balance at December 31, 2022	$	(636)	$	—	$	11	$	(625)


	For the Year Ended December 31, 2021
	Foreign currency translation adjustments		Unrealized gain (loss) on available-for- sale securities		Unrealized gain (loss) on forward contracts		Total
Balance at December 31, 2020	$	(589)	$	(5)	$	(28)	$	(622)
Other comprehensive income (loss) before reclassifications	(17)		(2)		44		25
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		10		9		19
Balance at December 31, 2021	$	(606)	$	3	$	25	$	(578)

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

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


	Employee Stock Options
	For the Years Ended December 31,
	2021			2020
Expected life (in years)	7.61			7.70
Volatility	31.06		%	30.89		%
Risk free interest rate	1.29		%	0.70		%
Dividend yield	0.51		%	0.53		%
Weighted-average grant date fair value	$	30.65		$	25.93
Stock price volatility range:
Low	31.00		%	30.00		%
High	35.00		%	39.00		%

Schedule of Stock Option Activity

Stock option activity is as follows:


	Number of shares (in thousands)	Weighted-average exercise price per stock option		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in millions)
Outstanding stock options at December 31, 2021	9,133	$	57.77

Exercised	(1,022)	45.22
Forfeited	(181)	74.12
Expired	(69)	76.97
Outstanding stock options at December 31, 2022	7,861	$	58.85	6.17	$	157
Vested and expected to vest at December 31, 2022	7,749	$	58.46	6.15	$	157
Exercisable at December 31, 2022	6,297	$	53.10	5.77	$	153

Schedule of Restricted Stock Units Activity


	Number of shares	Weighted- average grant date fair value per RSU
Unvested RSUs at December 31, 2021	13,258	$	75.51
Granted	9,082	78.14
Vested	(7,075)	79.45
Forfeited	(1,511)	82.14
Unvested RSUs at December 31, 2022	13,754	$	74.53

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,
	2022		2021		2020
Cost of revenues—product sales: Software royalties and amortization	$	21	$	17	$	14
Cost of revenues—in-game, subscription, and other: Game operations and distribution costs	7		7		1
Cost of revenues—in-game, subscription, and other: Software royalties and amortization	3		—		—
Product development	224		211		42
Sales and marketing	58		44		21
General and administrative	149		229		140
Share-based compensation expense before income taxes	462		508		218
Income tax benefit	(77)		(36)		(28)
Total share-based compensation expense, net of income tax benefit	$	385	$	472	$	190

Goodwill (Details) $ in Millions	1 Months Ended	12 Months Ended
Goodwill (Details) $ in Millions	Jun. 30, 2022 USD ($) business	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period		$ 9,799	$ 9,765
Additions through acquisition		130	34
Goodwill, balance at end of period		9,929	9,799
Proletariat Inc and Peltarion AB
Changes in carrying amount of goodwill
Number of businesses acquired \| business	2
Total purchase price	$ 152
Proletariat Inc.
Changes in carrying amount of goodwill
Percentage of business acquired	100.00%
Peltarion AB
Changes in carrying amount of goodwill
Percentage of business acquired	100.00%
Activision
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period		6,933	6,899
Additions through acquisition		0	34
Goodwill, balance at end of period		6,933	6,933
Blizzard
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period		190	190
Additions through acquisition		97	0
Goodwill, balance at end of period		287	190
King
Changes in carrying amount of goodwill
Goodwill, balance at beginning of period		2,676	2,676
Additions through acquisition		33	0
Goodwill, balance at end of period		$ 2,709	$ 2,676

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Consolidation and Presentation

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

Cash and Cash Equivalents

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

Investment Securities

Held-to-maturity investments

No expected credit losses have been recognized for the year ended December 31, 2022.

Available-for-sale investments

Equity investments

Financial Instruments

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

Concentration of Credit Risk

Our investment securities consist primarily of US government treasury bills and bonds.

Customers and platform providers exceeding 10% or more of our consolidated net revenues and consolidated gross receivables were approximately as follows:


	For the Years Ended December 31,
	2022		2021		2020
Revenues:
Apple Inc.	20	%	17	%	15	%
Google Inc.	18	%	17	%	14	%
Sony Interactive Entertainment Inc.	13	%	15	%	17	%
Microsoft Corporation	*		*		11	%

	At December 31,
	2022		2021
Gross Receivables:
Sony Interactive Entertainment Inc.	22	%	22	%
Microsoft Corporation	20	%	20	%
Google Inc.	10	%	*

* Did not account for 10% or more of our consolidated net revenues and consolidated gross receivables for the noted period.

Software Development Costs and Intellectual Property Licenses

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

Assets Recognized from Costs to Obtain a Contract with a Customer

Revenue Recognition

•premium full games, which typically provide access to main game content after purchase;

•free-to-play offerings, which allows players to download the game and engage with the associated content for free;

•in-game content for purchase to enhance gameplay (i.e., microtransactions and downloadable content) available within both our premium full-game and free-to-play offerings;

•subscriptions to players in World of Warcraft that provide ongoing access to the game content; and

•advertising services for third-party companies to reach and engage with our players, primarily within our free-to-play offerings.

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

In-game, Subscription, and Other Revenues

In-game Revenues

Subscription 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:

Cost of revenues—in-game, subscription, and other revenues:

Property and Equipment

Property and Equipment.

Goodwill and Other Indefinite-Lived Assets

Goodwill and Other Indefinite-Lived Assets.

Changes in our assumptions underlying our estimates 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.

Leases

Advertising Expenses

Income Taxes

Foreign Currency Translation

Earnings Per Common Share

Share-Based Payments

Loss Contingencies

Software Development (Tables)

12 Months Ended

Dec. 31, 2022

Software Development Costs [Abstract]

Schedule of Amortization of Software Development Costs

Amortization of capitalized software development costs was as follows (amounts in millions):


	For the Years Ended December 31,
		2022		2021		2020
Amortization of capitalized software development costs		$	236	$	341	$	263

Operating Segments and Geographic Regions - Schedule of Net Revenues by Platform (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total net revenues	$ 7,528	$ 8,803	$ 8,086
Net effect from recognition (deferral) of deferred net revenues	986	(449)	333
Segment net revenues	8,514	8,354	8,419
Console
Segment Reporting Information [Line Items]
Total net revenues	1,753	2,637	2,784
Net effect from recognition (deferral) of deferred net revenues	313	(254)	132
Segment net revenues	2,066	2,383	2,916
PC
Segment Reporting Information [Line Items]
Total net revenues	1,653	2,323	2,056
Net effect from recognition (deferral) of deferred net revenues	491	(228)	179
Segment net revenues	2,144	2,095	2,235
Mobile and ancillary
Segment Reporting Information [Line Items]
Total net revenues	3,517	3,182	2,559
Net effect from recognition (deferral) of deferred net revenues	169	19	41
Segment net revenues	3,686	3,201	2,600
Other
Segment Reporting Information [Line Items]
Total net revenues	605	661	687
Net effect from recognition (deferral) of deferred net revenues	13	14	(19)
Segment net revenues	618	675	668
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	8,072	7,885	8,011
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Total net revenues	2,643	3,776	3,689
Net effect from recognition (deferral) of deferred net revenues	632	(298)	253
Segment net revenues	3,275	3,478	3,942
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	1,672	1,975	1,803
Net effect from recognition (deferral) of deferred net revenues	340	(148)	102
Segment net revenues	2,012	1,827	1,905
Reportable segments \| King
Segment Reporting Information [Line Items]
Total net revenues	2,785	2,597	2,167
Net effect from recognition (deferral) of deferred net revenues	0	(17)	(3)
Segment net revenues	2,785	2,580	2,164
Reportable segments \| Console \| Activision
Segment Reporting Information [Line Items]
Total net revenues	1,661	2,502	2,668
Net effect from recognition (deferral) of deferred net revenues	286	(248)	140
Segment net revenues	1,947	2,254	2,808
Reportable segments \| Console \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	92	135	116
Net effect from recognition (deferral) of deferred net revenues	27	(6)	(8)
Segment net revenues	119	129	108
Reportable segments \| Console \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Reportable segments \| PC \| Activision
Segment Reporting Information [Line Items]
Total net revenues	456	660	582
Net effect from recognition (deferral) of deferred net revenues	252	(82)	64
Segment net revenues	708	578	646
Reportable segments \| PC \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	1,203	1,673	1,489
Net effect from recognition (deferral) of deferred net revenues	239	(145)	115
Segment net revenues	1,442	1,528	1,604
Reportable segments \| PC \| King
Segment Reporting Information [Line Items]
Total net revenues	70	84	96
Net effect from recognition (deferral) of deferred net revenues	0	(1)	0
Segment net revenues	70	83	96
Reportable segments \| Mobile and ancillary \| Activision
Segment Reporting Information [Line Items]
Total net revenues	481	574	382
Net effect from recognition (deferral) of deferred net revenues	94	32	49
Segment net revenues	575	606	431
Reportable segments \| Mobile and ancillary \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	321	95	106
Net effect from recognition (deferral) of deferred net revenues	75	3	(5)
Segment net revenues	396	98	101
Reportable segments \| Mobile and ancillary \| King
Segment Reporting Information [Line Items]
Total net revenues	2,715	2,513	2,071
Net effect from recognition (deferral) of deferred net revenues	0	(16)	(3)
Segment net revenues	2,715	2,497	2,068
Reportable segments \| Other \| Activision
Segment Reporting Information [Line Items]
Total net revenues	45	40	57
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	45	40	57
Reportable segments \| Other \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	56	72	92
Net effect from recognition (deferral) of deferred net revenues	(1)	0	0
Segment net revenues	55	72	92
Reportable segments \| Other \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments
Segment Reporting Information [Line Items]
Total net revenues	504	549	538
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Segment net revenues	518	563	519
Non-reportable segments \| Console
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments \| PC
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments \| Mobile and ancillary
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Total net revenues	504	549	538
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Segment net revenues	518	563	519
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Total net revenues	(76)	(94)	(111)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	(76)	(94)	(111)
Elimination of intersegment revenues \| Console
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Elimination of intersegment revenues \| PC
Segment Reporting Information [Line Items]
Total net revenues	(76)	(94)	(111)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	(76)	(94)	(111)
Elimination of intersegment revenues \| Mobile and ancillary
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	$ 0	$ 0	$ 0

Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022
	Estimated useful lives			Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired definite-lived intangible assets (1):



Trade names and other	1	-	10 years	$	90	$	(81)	$	9


Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	442

(1) Beginning with the first quarter of 2022, the balances of the internally-developed franchises intangible assets have been removed as such amounts were fully amortized in the prior year.


	At December 31, 2021
	Estimated useful lives			Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,154)	$	—



Trade names and other	1	-	10 years	80		(66)		14
Total definite-lived intangible assets				$	1,234	$	(1,220)	$	14

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	447

Schedule of Indefinite-lived Intangible Assets

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


	At December 31, 2022
	Estimated useful lives			Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired definite-lived intangible assets (1):



Trade names and other	1	-	10 years	$	90	$	(81)	$	9


Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	442

(1) Beginning with the first quarter of 2022, the balances of the internally-developed franchises intangible assets have been removed as such amounts were fully amortized in the prior year.


	At December 31, 2021
	Estimated useful lives			Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,154)	$	—



Trade names and other	1	-	10 years	80		(66)		14
Total definite-lived intangible assets				$	1,234	$	(1,220)	$	14

Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	447

Other Assets and Liabilities	12 Months Ended
Other Assets and Liabilities	Dec. 31, 2022
Other Assets and Liabilities
Other Assets and Liabilities	9. Other Assets and Liabilities Included in “Accrued expenses and other liabilities” in our consolidated balance sheets are accrued payroll-related costs of $400 million and $364 million at December 31, 2022 and 2021, respectively, and the current portion of income taxes payable of $80 million and $144 million at December 31, 2022 and 2021, respectively.

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. 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 (“PCs”), and mobile devices. We also operate esports leagues and offer digital advertising within some of our content. The terms “Activision Blizzard,” the “Company,” “we,” “us,” and “our” are used to refer collectively to Activision Blizzard, Inc. and its subsidiaries. Merger Agreement On January 18, 2022, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Microsoft Corporation (“Microsoft”) and Anchorage Merger Sub Inc. (“Merger Sub”), a wholly owned subsidiary of Microsoft. Subject to the terms and conditions of the Merger Agreement, Microsoft agreed to acquire the Company for $95.00 per issued and outstanding share of our common stock, par value $0.000001 per share, in an all-cash transaction. On April 28, 2022, the Company’s stockholders adopted the Merger Agreement at a special meeting of stockholders. Pursuant to the Merger Agreement, following consummation of the merger of Merger Sub with and into the Company (the “Merger”), the Company will be a wholly-owned subsidiary of Microsoft. As a result of the Merger, we will cease to be a publicly traded company. We have agreed to various customary covenants and agreements, including, among others, agreements to conduct our business in the ordinary course during the period between the execution of the Merger Agreement and the effective time of the Merger (the “Effective Time”). We do not believe these restrictions will prevent us from meeting our debt service obligations, ongoing costs of operations, working capital needs or capital expenditure requirements. If the Merger Agreement is terminated under certain specified circumstances, we or Microsoft will be required to pay a termination fee. We will be required to pay Microsoft a termination fee of approximately $2.27 billion under specified circumstances, including termination of the Merger Agreement due to our material breach of representations, warranties, covenants or agreements in the Merger Agreement. Microsoft will be required to pay us a reverse termination fee under specified circumstances, including termination of the Merger Agreement due to a permanent injunction arising from Antitrust Laws (as defined in the Merger Agreement) when we are not then in material breach of any provision of the Merger Agreement and if certain other conditions are met, in an amount equal to (1) $2.5 billion if the termination notice is provided prior to April 18, 2023, or (2) $3.0 billion if the termination notice is provided at any time after April 18, 2023. The consummation of the Merger remains subject to customary closing conditions, including receipt of certain regulatory approvals. The two parties are continuing to engage with regulators reviewing the proposed transaction and are working toward closing in Microsoft’s fiscal year ending June 30, 2023, subject to obtaining required regulatory approvals and satisfaction or waiver of other customary closing conditions. For additional information related to the Merger Agreement, please refer to the Definitive Proxy Statement on Schedule 14A filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 21, 2022, as supplemented by the Current Report on Form 8-K filed with the SEC on April 15, 2022, and other relevant materials in connection with the proposed transaction with Microsoft that we will file with the SEC and that will contain important information about the Company and the Merger. China License Agreements Activision Blizzard had licensing agreements with NetEase, Inc. (“NetEase”) covering the publication of several Blizzard Entertainment, Inc. titles in Mainland China. These agreements, which contributed approximately 3% of Activision Blizzard’s consolidated net revenues in both 2021 and 2022, expired in January 2023. The co-development and publishing of Diablo® Immortal™ is covered by a separate agreement with NetEase, which remains in place. In addition, Call of Duty®: Mobile is governed by agreements with another third party that are unaffected. Our Segments Based upon our organizational structure, we conduct our business through three reportable segments, each of which is a leading global developer and publisher of interactive entertainment content and services based primarily on our internally-developed intellectual properties. (i) Activision Publishing, Inc. Activision Publishing, Inc. (“Activision”) delivers content through both premium and free-to-play offerings and primarily generates revenue from full-game and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision products. Activision’s key product offerings include titles and content for Call of Duty, a first-person action franchise. Activision also includes the activities of the Call of Duty League™, a global professional esports league. (ii) Blizzard Entertainment, Inc. Blizzard Entertainment, Inc. (“Blizzard”) delivers content through both premium and free-to-play offerings and primarily generates revenue from full-game and in-game sales, subscriptions, and by licensing software to third-party or related-party companies that distribute Blizzard products. Blizzard also maintains a proprietary online gaming platform, Battle.net®, which facilitates digital distribution of Blizzard content and selected Activision content, online social connectivity, and the creation of user-generated content. Blizzard’s key product offerings include titles and content for: the Warcraft® franchise, which includes World of Warcraft®, a subscription-based massive multi-player online role-playing game, and Hearthstone®, an online collectible card game based in the Warcraft universe; Diablo® in the action role-playing genre; and Overwatch® in the team-based first-person action genre. Blizzard also includes the activities of the Overwatch League™, a global professional esports league. (iii) King Digital Entertainment King Digital Entertainment (“King”) delivers content through free-to-play offerings and primarily generates revenue from in-game sales and in-game advertising on mobile platforms. King’s key product offerings include titles and content for Candy Crush™, a “match three” franchise. Other We also engage in other businesses that do not represent reportable segments, including our 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.

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Tax Credit Carryforward [Line Items]
New tax benefit recognized due to change in corporate tax rate	$ 0	$ 53	$ 23
Tax benefit	(231)	(465)	(419)
Valuation allowance	305	278
Unrecognized tax benefits	1,223	1,289	1,166	$ 1,037
Unrecognized tax benefits that would affect effective tax rate	734
Accrued interest and penalties related to uncertain tax positions	113	102	93
Interest expense related to uncertain tax positions	13	11	19
State
Tax Credit Carryforward [Line Items]
Tax credit carryforward	287
R&D Credit
Tax Credit Carryforward [Line Items]
Valuation allowance	$ 129	118
UK IP Onshoring
Tax Credit Carryforward [Line Items]
New tax benefit recognized due to change in corporate tax rate		$ 53
UK IP Onshoring \| Minimum
Tax Credit Carryforward [Line Items]
Amortizable tax basis, recovery period				3 years
UK IP Onshoring \| Maximum
Tax Credit Carryforward [Line Items]
Amortizable tax basis, recovery period				25 years
US IP Onshoring
Tax Credit Carryforward [Line Items]
Tax benefit			$ 31

Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

8. Goodwill

The carrying amount of goodwill by reportable segment at both December 31, 2022 and December 31, 2021, was as follows (amounts in millions):


	Activision		Blizzard		King		Total


Balance at December 31, 2020	$	6,899	$	190	$	2,676	$	9,765
Additions through acquisition (1)	34		—		—		34

Balance at December 31, 2021	$	6,933	$	190	$	2,676	$	9,799
Additions through acquisition (2)	—		97		33		130

Balance at December 31, 2022	$	6,933	$	287	$	2,709	$	9,929

(1) On October 28, 2021 we acquired a mobile game developer, Digital Legends, that operates as a studio under our Activision segment. The total net assets acquired were not material.

(2) The Company completed the acquisition of two businesses to acquire 100% of the respective voting equity interests of the following entities during June 2022:

•Proletariat Inc. (“Proletariat”), a privately held game development studio based in Boston, Massachusetts, was acquired by Blizzard to increase developer resources for the Warcraft franchise.

•Peltarion AB (“Peltarion”), a privately held artificial intelligence (“AI”) software company based in Stockholm, Sweden, was acquired by King to acquire AI and machine learning talent and a machine learning operations platform that will accelerate the current use of AI and machine learning technology in King’s game platform.

The total purchase price for these acquisitions was $152 million utilizing cash on hand. The value to the Company of both of these acquisitions is primarily in the assembled workforce of the acquired businesses and therefore the majority of the value for each acquisition has been recognized as goodwill. Goodwill attributed to the acquired businesses is not expected to be tax-deductible. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions at the acquisition date.

The results of operations of Proletariat and Peltarion, in each case, since the date of acquisition, are included in our consolidated financial statements. Pro forma results of operations have not been presented because the effect of the acquisitions are not material to our consolidated statements of operations, either individually or in the aggregate.

Restructuring - Schedule of Accrued Restructuring Included in Accrued Expenses and Other Liabilities by Cost Type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restructuring Reserve [Roll Forward]
Costs charged to expense	$ (3)	$ 77	$ 94
2019 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance, beginning	85	91
Costs charged to expense		79
Cash payments	(42)	(61)
Non-cash charge and other adjustments	(9)	(24)
Balance, ending	34	85	91
Severance and employee related costs \| 2019 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance, beginning	64	88
Costs charged to expense		36
Cash payments	(34)	(55)
Non-cash charge and other adjustments	(4)	(5)
Balance, ending	26	64	88
Facilities and related costs \| 2019 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance, beginning	0	0
Costs charged to expense		16
Cash payments	0	0
Non-cash charge and other adjustments	0	(16)
Balance, ending	0	0	0
Other costs \| 2019 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance, beginning	21	3
Costs charged to expense		27
Cash payments	(8)	(6)
Non-cash charge and other adjustments	(5)	(3)
Balance, ending	$ 8	$ 21	$ 3

Capital Transactions - Repurchase Programs (Details) $ in Billions	Jan. 27, 2021 USD ($)
Equity [Abstract]
Stock repurchase program, dollar amount authorized	$ 4

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Estimated service period over which revenues are recognized (less than)		12 months
Deferred revenue, period increase (decrease)	$ 103
Deferred cost of revenue, period increase (decrease)	$ 9
Earnings per share, diluted, period increase (decrease) (in usd per share)	$ 0.10
Minimum
Disaggregation of Revenue [Line Items]
Payment terms (in days)		30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms (in days)		90 days

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedules of Concentration of Risk, by Risk Factor

Customers and platform providers exceeding 10% or more of our consolidated net revenues and consolidated gross receivables were approximately as follows:


	For the Years Ended December 31,
	2022		2021		2020
Revenues:
Apple Inc.	20	%	17	%	15	%
Google Inc.	18	%	17	%	14	%
Sony Interactive Entertainment Inc.	13	%	15	%	17	%
Microsoft Corporation	*		*		11	%

	At December 31,
	2022		2021
Gross Receivables:
Sony Interactive Entertainment Inc.	22	%	22	%
Microsoft Corporation	20	%	20	%
Google Inc.	10	%	*

* Did not account for 10% or more of our consolidated net revenues and consolidated gross receivables for the noted period.

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Feb. 03, 2023	Mar. 29, 2022	Dec. 31, 2022
Credit Agreement as Amended
Loss Contingencies [Line Items]
Amount of letters of credit that can be issued under the Revolver			$ 50
Settled Litigation \| EEOC Settlement
Loss Contingencies [Line Items]
Settlement fund for eligible claimants		$ 18
Settled Litigation \| Employment-Related Matters \| Subsequent Events
Loss Contingencies [Line Items]
Settlement fund for eligible claimants	$ 35

Operating Segments and Geographic Regions - Additional Information (Details) - segment	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Number of reportable segments	3
US \| Revenues \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration risk	49.00%	49.00%	48.00%
UK \| Revenues \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration risk	11.00%	11.00%	12.00%

Operating Segments and Geographic Regions - Schedule of Net Revenues from External Customers by Geographic Region (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total net revenues	$ 7,528	$ 8,803	$ 8,086
Net effect from recognition (deferral) of deferred net revenues	986	(449)	333
Segment net revenues	8,514	8,354	8,419
Americas
Segment Reporting Information [Line Items]
Total net revenues	4,208	4,931	4,434
Net effect from recognition (deferral) of deferred net revenues	609	(288)	285
Segment net revenues	4,817	4,643	4,719
EMEA
Segment Reporting Information [Line Items]
Total net revenues	2,236	2,797	2,680
Net effect from recognition (deferral) of deferred net revenues	257	(136)	59
Segment net revenues	2,493	2,661	2,739
Asia Pacific
Segment Reporting Information [Line Items]
Total net revenues	1,084	1,075	972
Net effect from recognition (deferral) of deferred net revenues	120	(25)	(11)
Segment net revenues	1,204	1,050	961
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	8,072	7,885	8,011
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Total net revenues	2,643	3,776	3,689
Net effect from recognition (deferral) of deferred net revenues	632	(298)	253
Segment net revenues	3,275	3,478	3,942
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	1,672	1,975	1,803
Net effect from recognition (deferral) of deferred net revenues	340	(148)	102
Segment net revenues	2,012	1,827	1,905
Reportable segments \| King
Segment Reporting Information [Line Items]
Total net revenues	2,785	2,597	2,167
Net effect from recognition (deferral) of deferred net revenues	0	(17)	(3)
Segment net revenues	2,785	2,580	2,164
Reportable segments \| Americas \| Activision
Segment Reporting Information [Line Items]
Total net revenues	1,732	2,446	2,316
Net effect from recognition (deferral) of deferred net revenues	420	(198)	228
Segment net revenues	2,152	2,248	2,544
Reportable segments \| Americas \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	716	876	794
Net effect from recognition (deferral) of deferred net revenues	188	(79)	58
Segment net revenues	904	797	852
Reportable segments \| Americas \| King
Segment Reporting Information [Line Items]
Total net revenues	1,809	1,664	1,384
Net effect from recognition (deferral) of deferred net revenues	0	(11)	(1)
Segment net revenues	1,809	1,653	1,383
Reportable segments \| EMEA \| Activision
Segment Reporting Information [Line Items]
Total net revenues	652	976	1,061
Net effect from recognition (deferral) of deferred net revenues	145	(80)	36
Segment net revenues	797	896	1,097
Reportable segments \| EMEA \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	434	638	550
Net effect from recognition (deferral) of deferred net revenues	99	(65)	43
Segment net revenues	533	573	593
Reportable segments \| EMEA \| King
Segment Reporting Information [Line Items]
Total net revenues	668	665	568
Net effect from recognition (deferral) of deferred net revenues	(1)	(5)	(1)
Segment net revenues	667	660	567
Reportable segments \| Asia Pacific \| Activision
Segment Reporting Information [Line Items]
Total net revenues	259	354	312
Net effect from recognition (deferral) of deferred net revenues	67	(20)	(11)
Segment net revenues	326	334	301
Reportable segments \| Asia Pacific \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	522	461	459
Net effect from recognition (deferral) of deferred net revenues	53	(4)	1
Segment net revenues	575	457	460
Reportable segments \| Asia Pacific \| King
Segment Reporting Information [Line Items]
Total net revenues	308	268	215
Net effect from recognition (deferral) of deferred net revenues	1	(1)	(1)
Segment net revenues	309	267	214
Non-reportable segments
Segment Reporting Information [Line Items]
Total net revenues	504	549	538
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Segment net revenues	518	563	519
Non-reportable segments \| Americas
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments \| EMEA
Segment Reporting Information [Line Items]
Total net revenues	504	549	538
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Segment net revenues	518	563	519
Non-reportable segments \| Asia Pacific
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Total net revenues	(76)	(94)	(111)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	(76)	(94)	(111)
Elimination of intersegment revenues \| Americas
Segment Reporting Information [Line Items]
Total net revenues	(49)	(55)	(60)
Net effect from recognition (deferral) of deferred net revenues	1	0	0
Segment net revenues	(48)	(55)	(60)
Elimination of intersegment revenues \| EMEA
Segment Reporting Information [Line Items]
Total net revenues	(22)	(31)	(37)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	(22)	(31)	(37)
Elimination of intersegment revenues \| Asia Pacific
Segment Reporting Information [Line Items]
Total net revenues	(5)	(8)	(14)
Net effect from recognition (deferral) of deferred net revenues	(1)	0	0
Segment net revenues	$ (6)	$ (8)	$ (14)

Operating Segments and Geographic Regions - Schedule of Net Revenues by Distribution Channels (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Total net revenues	$ 7,528	$ 8,803	$ 8,086
Net effect from recognition (deferral) of deferred net revenues	986	(449)	333
Segment net revenues	8,514	8,354	8,419
Digital online channels
Segment Reporting Information [Line Items]
Total net revenues	6,633	7,663	6,658
Net effect from recognition (deferral) of deferred net revenues	970	(421)	464
Segment net revenues	7,603	7,242	7,122
Retail channels
Segment Reporting Information [Line Items]
Total net revenues	290	479	741
Net effect from recognition (deferral) of deferred net revenues	3	(42)	(112)
Segment net revenues	293	437	629
Other
Segment Reporting Information [Line Items]
Total net revenues	605	661	687
Net effect from recognition (deferral) of deferred net revenues	13	14	(19)
Segment net revenues	618	675	668
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	8,072	7,885	8,011
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Total net revenues	2,643	3,776	3,689
Net effect from recognition (deferral) of deferred net revenues	632	(298)	253
Segment net revenues	3,275	3,478	3,942
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	1,672	1,975	1,803
Net effect from recognition (deferral) of deferred net revenues	340	(148)	102
Segment net revenues	2,012	1,827	1,905
Reportable segments \| King
Segment Reporting Information [Line Items]
Total net revenues	2,785	2,597	2,167
Net effect from recognition (deferral) of deferred net revenues	0	(17)	(3)
Segment net revenues	2,785	2,580	2,164
Reportable segments \| Digital online channels \| Activision
Segment Reporting Information [Line Items]
Total net revenues	2,324	3,287	2,930
Net effect from recognition (deferral) of deferred net revenues	629	(264)	365
Segment net revenues	2,953	3,023	3,295
Reportable segments \| Digital online channels \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	1,600	1,873	1,672
Net effect from recognition (deferral) of deferred net revenues	341	(140)	102
Segment net revenues	1,941	1,733	1,774
Reportable segments \| Digital online channels \| King
Segment Reporting Information [Line Items]
Total net revenues	2,785	2,597	2,167
Net effect from recognition (deferral) of deferred net revenues	0	(17)	(3)
Segment net revenues	2,785	2,580	2,164
Reportable segments \| Retail channels \| Activision
Segment Reporting Information [Line Items]
Total net revenues	274	449	702
Net effect from recognition (deferral) of deferred net revenues	3	(34)	(112)
Segment net revenues	277	415	590
Reportable segments \| Retail channels \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	16	30	39
Net effect from recognition (deferral) of deferred net revenues	0	(8)	0
Segment net revenues	16	22	39
Reportable segments \| Retail channels \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Reportable segments \| Other \| Activision
Segment Reporting Information [Line Items]
Total net revenues	45	40	57
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	45	40	57
Reportable segments \| Other \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	56	72	92
Net effect from recognition (deferral) of deferred net revenues	(1)	0	0
Segment net revenues	55	72	92
Reportable segments \| Other \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments
Segment Reporting Information [Line Items]
Total net revenues	504	549	538
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Segment net revenues	518	563	519
Non-reportable segments \| Digital online channels
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments \| Retail channels
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Total net revenues	504	549	538
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Segment net revenues	518	563	519
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Total net revenues	(76)	(94)	(111)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	(76)	(94)	(111)
Elimination of intersegment revenues \| Digital online channels
Segment Reporting Information [Line Items]
Total net revenues	(76)	(94)	(111)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	(76)	(94)	(111)
Elimination of intersegment revenues \| Retail channels
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	0	0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Total net revenues	0	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Segment net revenues	$ 0	$ 0	$ 0

Held-to-Maturity Investments (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Held-to-Maturity

The following table summarizes the Company's held-to-maturity investments at December 31, 2022 (amount in millions):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized losses		Estimated Fair Value (Level 1)
U.S. treasuries and government agency securities	$	4,932	$	1	$	(3)	$	4,930

Deferred Revenues (Details) - USD ($) $ in Billions	12 Months Ended
Deferred Revenues (Details) - USD ($) $ in Billions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenues	$ 2.1	$ 1.1
Revenue recognized included in beginning deferred revenue	$ 1.1	$ 1.7	$ 1.3

Deferred Revenues - Remaining Performance Obligation (Details) $ in Billions	Dec. 31, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 2.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 2.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracted not recognized revenue, period	12 months

Capital Transactions	12 Months Ended
Capital Transactions	Dec. 31, 2022
Equity [Abstract]
Capital Transactions	21. Capital Transactions Repurchase Programs On January 27, 2021, our Board of Directors authorized a stock repurchase program under which we are authorized to repurchase up to $4 billion of our common stock during the two-year period from February 14, 2021 until the earlier of February 13, 2023, or a determination by the Board of Directors to discontinue the repurchase program. We did not repurchase any shares under this program through its expiry and we are restricted from making any repurchases during the period between the execution of the Merger Agreement with Microsoft and the Effective Time without Microsoft’s approval (which may not be unreasonably withheld, conditioned, or delayed). Dividends On February 3, 2022, our Board of Directors declared a cash dividend of $0.47 per common share. On May 6, 2022, we made an aggregate cash dividend payment of $367 million to shareholders of record at the close of business on April 15, 2022. On February 4, 2021, our Board of Directors declared a cash dividend of $0.47 per common share. On May 6, 2021, we made an aggregate cash dividend payment of $365 million to shareholders of record at the close of business on April 15, 2021.

Debt - Credit Facilities (Details)	12 Months Ended
Debt - Credit Facilities (Details)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
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	3.75
Debt instrument, covenant, consolidated total net debt ratio, qualifying acquisition	4.25
Debt instrument, covenant, consolidated total assets ratio, maximum	0.075
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,500,000,000	$ 1,500,000,000
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended
Debt Instrument [Line Items]
Amount drawn on the revolver	$ 0
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, base rate margin	0.005
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| LIBOR
Debt Instrument [Line Items]
Debt instrument, base rate margin	0.0100
Debt instrument, variable rate, interest floor	0
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| LIBOR \| Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.875%
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| LIBOR \| Maximum
Debt Instrument [Line Items]
Applicable margin (as a percent)	1.375%
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| Base Rate
Debt Instrument [Line Items]
Debt instrument, variable rate, interest floor	0.0100
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| Base Rate \| Minimum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.00%
Revolving Credit Facility \| Line of Credit \| Credit Agreement as Amended \| Base Rate \| Maximum
Debt Instrument [Line Items]
Applicable margin (as a percent)	0.375%

Summary of Significant Accounting Policies - Financial Instruments and Software (Details)	12 Months Ended
	Dec. 31, 2022
Capitalized Software Development Costs [Line Items]
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	3 years

Cash and Cash Equivalents

12 Months Ended

Dec. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

3. Cash and Cash Equivalents

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


	At December 31,
	2022		2021
Cash	$	421	$	354
Foreign government treasury bills	—		34
Money market funds	6,639		10,035
Cash and cash equivalents	$	7,060	$	10,423

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

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Cash flows from operating activities:

Net income

$ 1,513

$ 2,699

$ 2,197

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

Deferred income taxes

(164)

(94)

Non-cash operating lease cost

Depreciation and amortization

106

116

197

Amortization of capitalized software development costs

^[1]

213

324

249

Share-based compensation expense

^[2]

462

508

218

Other

(31)

(26)

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

Accounts receivable, net

(231)

(194)

Software development

(693)

(426)

(378)

Other assets

(140)

(114)

(88)

Deferred revenues

987

(537)

216

Accounts payable

(7)

(10)

Accrued expenses and other liabilities

(266)

(154)

Net cash provided by operating activities

2,220

2,414

2,252

Cash flows from investing activities:

Proceeds from maturities of available-for-sale investments

213

214

121

Proceeds from sale of available-for-sale investments

Purchases of available-for-sale investments

(109)

(248)

(221)

Purchases of held-to-maturity investments

(4,899)

Acquisition of business, net of cash acquired (Note 8)

(135)

Capital expenditures

(91)

(80)

(78)

Other investing activities

(11)

Net cash used in investing activities

(4,994)

(59)

(178)

Cash flows from financing activities:

Proceeds from issuance of common stock to employees

170

(214)

(246)

(39)

Dividends paid

(367)

(365)

(316)

Proceeds from debt issuances, net of discounts

1,994

Repayment of long-term debt

(1,050)

Payment of financing costs

(20)

Premium payment for early redemption of note

(28)

Net cash (used in) provided by financing activities

(534)

(521)

711

Effect of foreign exchange rate changes on cash and cash equivalents

(44)

(48)

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

(3,352)

1,786

2,854

Cash and cash equivalents and restricted cash at beginning of period

10,438

8,652

5,798

Cash and cash equivalents and restricted cash at end of period

7,086

10,438

8,652

Supplemental cash flow information:

Cash paid for income taxes, net of refunds

323

468

806

Cash paid for interest

$ 105

$ 109

$ 82

[1]	Excludes deferral and amortization of share-based compensation expense, including liability awards accounted for under Accounting Standards Codification (“ASC”) 718.
[2]	Includes the net effects of capitalization, deferral, and amortization of share-based compensation expense, including liability awards accounted for under ASC 718.

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and equipment, net

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


	At December 31,
	2022		2021
Land	$	1	$	1
Buildings	3		4
Leasehold improvements	244		227
Computer and server equipment	653		703
Office furniture and other equipment	90		90
Total cost of property and equipment	991		1,025
Less accumulated depreciation	(798)		(856)
Property and equipment, net	$	193	$	169

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 7,060	$ 10,423
Held-to-maturity investments	4,932	0
Accounts receivable, net	1,204	972
Software development	640	449
Other current assets	633	712
Total current assets	14,469	12,556
Software development	641	211
Property and equipment, net	193	169
Deferred income taxes, net	1,201	1,377
Other assets	508	497
Intangible assets, net	442	447
Goodwill	9,929	9,799
Total assets	27,383	25,056
Current liabilities:
Accounts payable	324	285
Deferred revenues	2,088	1,118
Accrued expenses and other liabilities	1,143	1,008
Total current liabilities	3,555	2,411
Long-term debt, net	3,611	3,608
Deferred income taxes, net	158	506
Other liabilities	816	932
Total liabilities	8,140	7,457
Commitments and contingencies (Note 22)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,212,894,055 and 1,207,729,623 shares issued at December 31, 2022 and December 31, 2021, respectively	0	0
Additional paid-in capital	12,260	11,715
Less: Treasury stock, at cost, 428,676,471 shares at December 31, 2022 and December 31, 2021	(5,563)	(5,563)
Retained earnings	13,171	12,025
Accumulated other comprehensive loss	(625)	(578)
Total shareholders’ equity	19,243	17,599
Total liabilities and shareholders’ equity	$ 27,383	$ 25,056

Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Deferred revenue	$ 324	$ 210
Tax attributes carryforwards	191	143
Share-based compensation	47	46
Intangibles	1,333	1,458
Capitalized software development expenses	52	0
Other	136	141
Deferred tax assets	2,083	1,998
Valuation allowance	(305)	(278)
Deferred tax assets, net of valuation allowance	1,778	1,720
Deferred tax liabilities:
Intangibles	(171)	(158)
Capitalized software development expenses	0	(10)
U.S. deferred taxes on foreign earnings	(491)	(603)
Other	(72)	(78)
Deferred tax liabilities	(734)	(849)
Net deferred tax assets	$ 1,044	$ 871

Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

13. Debt

Credit Facilities

As of December 31, 2022 and December 31, 2021, we had $1.5 billion available under a revolving credit facility (the “Revolver”) pursuant to a credit agreement entered into on October 11, 2013 (as amended thereafter and from time to time, the “Credit Agreement”). To date, we have not drawn on the Revolver and we were in compliance with the terms of the Credit Agreement as of December 31, 2022.

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, 2022.

Unsecured Senior Notes

As of December 31, 2022 and December 31, 2021, we had $3.7 billion of gross unsecured senior notes outstanding. A summary of our outstanding unsecured senior notes is as follows (amounts in millions):


				At December 31, 2022				At December 31, 2021
Unsecured Senior Notes	Interest Rate	Semi-Annual Interest Payments Due On	Maturity	Principal		Fair Value (Level 2)		Principal		Fair Value (Level 2)




2026 Notes	3.40%	Mar. 15 & Sept. 15	Sept. 2026	$	850	$	810	$	850	$	912
2027 Notes	3.40%	Jun. 15 & Dec. 15	Jun. 2027	400		378		400		430
2030 Notes	1.35%	Mar. 15 & Sept. 15	Sept. 2030	500		391		500		463
2047 Notes	4.50%	Jun. 15 & Dec. 15	Jun. 2047	400		353		400		480
2050 Notes	2.50%	Mar. 15 & Sept. 15	Sept. 2050	1,500		936		1,500		1,320
Total gross long-term debt				$	3,650			$	3,650
Unamortized discount and deferred financing costs				(39)				(42)
Total net carrying amount				$	3,611			$	3,608

We may redeem some or all of each class of the unsecured senior notes. Any such redemption will be at a price equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest as well as, for a redemption prior to the permitted redemption date for that class of notes, a “make-whole” premium.

Upon the occurrence of certain change of control events, we will be required to offer to repurchase the notes outstanding 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 unsecured notes and are not accounted for separately upon issuance.

The outstanding 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 outstanding as of December 31, 2022.

As of December 31, 2022, with the exception of our 2026 Notes and 2027 Notes, which are scheduled to mature in September 2026 and June 2027, respectively, no other contractual principal repayments of our long-term debt were due within the next five years.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Schedule of Lease Expense and Other Details Related to Operating Leases

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


	Years Ended December 31,
	2022		2021		2020
Operating leases
Operating lease costs	$	85	$	78	$	75
Variable lease costs	24		18		20

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


	Years Ended December 31,
	2022			2021			2020
Supplemental Operating Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities	$	93		$	75		$	77


ROU assets obtained in exchange for new lease obligations	47			64			80


	At December 31,
	2022			2021
Weighted Average Lease terms and discount rates
Remaining lease term	3.62 years			4.10 years
Discount rate	3.34		%	3.01		%

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


For the years ending December 31,
2023	$	89
2024	71
2025	47
2026	26
2027	20
Thereafter	7
Total future lease payments	$	260
Less imputed interest	(15)
Total lease liabilities	$	245

Schedule of ROU Assets and Lease Liabilities

Operating lease ROU assets and liabilities recorded on our consolidated balance sheet as of December 31, 2022 and December 31, 2021, were as follows (amounts in millions):


	At December 31,
	2022		2021		Balance Sheet Classification
ROU assets	$	210	$	237	Other assets

Current lease liabilities	$	83	$	77	Accrued expenses and other current liabilities
Non-current lease liabilities	162		212		Other liabilities
	$	245	$	289	Total lease liabilities

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares			12 Months Ended
	Feb. 03, 2022	Feb. 04, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.47	$ 0.47	$ 0.47	$ 0.47	$ 0.41

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022, 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,
2023	$	91	$	184	$	85	$	105	$	465
2024	71		27		—		105		203
2025	47		12		—		105		164
2026	25		—		—		955		980
2027	20		—		—		469		489
Thereafter	7		—		—		3,633		3,640
Total	$	261	$	223	$	85	$	5,372	$	5,941

(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, 2022, we had $476 million of net unrecognized tax benefits included in “Other liabilities,” in our consolidated balance sheet.

Additionally, at December 31, 2022, we have a remaining net Transition Tax liability of $127 million associated with the U.S. Tax Reform Act. The remaining Transition Tax liability is payable over the next four 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 for our outstanding unsecured notes, which are subject to fixed interest rates, as of December 31, 2022. There was no outstanding balance under our Revolver as of December 31, 2022. We have calculated the expected interest obligation based on the outstanding principal balance and interest rate applicable at December 31, 2022. Refer to Note 13 for additional information on our debt obligations.

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 16, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	1-15839
Entity Registrant Name	ACTIVISION BLIZZARD, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4803544
Entity Address, Address Line One	2701 Olympic Boulevard Building B
Entity Address, City or Town	Santa Monica,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90404
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 60,436,471,136
Entity Common Stock, Shares Outstanding		784,274,126
Documents Incorporated by Reference	Portions of the registrant’s Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated herein by reference into Part III of this Form 10-K to the extent stated herein. The 2023 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2022.
Entity Central Index Key	0000718877
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Summary of Significant Accounting Policies - Assets Recognized from Costs to Obtain a Contract with a Customer (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Capitalized contract costs	$ 160	$ 30

Income Taxes - Reconciliation of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of unrecognized tax benefits
Unrecognized tax benefits balance at January 1	$ 1,289	$ 1,166	$ 1,037
Gross increase for tax positions taken during a prior year	7	98	97
Gross decrease for tax positions taken during a prior year	(52)	(18)	(1)
Gross increase for tax positions taken during the current year	22	52	38
Settlement with taxing authorities	(5)	(6)	(3)
Lapse of statute of limitations	(38)	(3)	(2)
Unrecognized tax benefits balance at December 31	$ 1,223	$ 1,289	$ 1,166

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenues
Total net revenues	$ 7,528	$ 8,803	$ 8,086
Cost of Revenue-product sales and in-game, subscription, and other:
Product development	1,421	1,337	1,150
Sales and marketing	1,217	1,025	1,064
General and administrative	1,001	788	784
Restructuring and related costs	(3)	77	94
Total costs and expenses	5,858	5,544	5,352
Operating income	1,670	3,259	2,734
Interest expense from debt	108	108	99
Other (income) expense, net (Note 18)	(182)	(13)	(12)
Loss on extinguishment of debt	0	0	31
Income before income tax expense	1,744	3,164	2,616
Income tax expense	231	465	419
Net income	$ 1,513	$ 2,699	$ 2,197
Earnings per common share
Basic (in dollars per share)	$ 1.94	$ 3.47	$ 2.85
Diluted (in dollars per share)	$ 1.92	$ 3.44	$ 2.82
Weighted-average number of shares outstanding
Basic (in shares)	782	777	771
Diluted (in shares)	789	784	778
Product sales
Net revenues
Total net revenues	$ 1,642	$ 2,311	$ 2,350
Product costs
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	519	649	705
Software royalties and amortization
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	231	346	269
In-game, subscription, and other revenues
Net revenues
Total net revenues	5,886	6,492	5,736
Game operations and distribution costs
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	1,324	1,215	1,131
Software royalties and amortization
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	$ 148	$ 107	$ 155

Operating Segments and Geographic Regions (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Operating Segments and Reconciliations of Total Net Revenues and Total Segment Operating Income to Consolidated Net Revenues from External Customers and Consolidated Income Before Income Tax Expense

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




















	Year Ended December 31, 2022
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	3,275	$	1,936	$	2,785	$	7,996
Intersegment net revenues (1)	—		76		—		76
Segment net revenues	$	3,275	$	2,012	$	2,785	$	8,072

Segment operating income	$	1,317	$	625	$	1,121	$	3,063

	Year Ended December 31, 2021
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	3,478	$	1,733	$	2,580	$	7,791
Intersegment net revenues (1)	—		94		—		94
Segment net revenues	$	3,478	$	1,827	$	2,580	$	7,885

Segment operating income	$	1,667	$	698	$	1,140	$	3,505

	Year Ended December 31, 2020
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	3,942	$	1,794	$	2,164	$	7,900
Intersegment net revenues (1)	—		111		—		111
Segment net revenues	$	3,942	$	1,905	$	2,164	$	8,011

Segment operating income	$	1,868	$	693	$	857	$	3,418

(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,
		2022		2021		2020
Reconciliation to consolidated net revenues:
Segment net revenues		$	8,072	$	7,885	$	8,011
Revenues from non-reportable segments (1)		518		563		519
Net effect from recognition (deferral) of deferred net revenues (2)		(986)		449		(333)
Elimination of intersegment revenues (3)		(76)		(94)		(111)
Consolidated net revenues		$	7,528	$	8,803	$	8,086

Reconciliation to consolidated income before income tax expense:
Segment operating income		$	3,063	$	3,505	$	3,418
Operating income (loss) from non-reportable segments (1)		22		2		(55)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)		(848)		347		(238)
Share-based compensation expense (4)		(462)		(508)		(218)
Amortization of intangible assets (5)		(13)		(10)		(79)
Restructuring and related costs (6)		3		(77)		(94)
Partnership wind down and related costs (7)		(27)		—		—
Merger and acquisition-related fees and other expenses (8)		(68)		—		—

Consolidated operating income		1,670		3,259		2,734
Interest expense from debt		108		108		99
Other (income) expense, net		(182)		(13)		(12)
Loss on extinguishment of debt		—		—		31
Consolidated income before income tax expense		$	1,744	$	3,164	$	2,616

(1)Includes other income and expenses outside of our reportable segments, including our Distribution business and 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 expenses related to share-based compensation.

(5)Reflects amortization of intangible assets from purchase price accounting.

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

(7)Reflects expenses related to the wind down of our partnership with NetEase in Mainland China in regards to licenses covering the publication of several Blizzard titles which expired in January 2023.

(8)Reflects fees and other expenses related to our proposed transaction with Microsoft, which primarily consist of legal and advisory fees.

Schedule of Net Revenues by Distribution Channels

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


	Year Ended December 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	2,324	$	1,600	$	2,785	$	—	$	(76)	$	6,633
Retail channels	274		16		—		—		—		290
Other (2)	45		56		—		504		—		605
Total consolidated net revenues	$	2,643	$	1,672	$	2,785	$	504	$	(76)	$	7,528

Change in deferred revenues:
Digital online channels (1)	$	629	$	341	$	—	$	—	$	—	$	970
Retail channels	3		—		—		—		—		3
Other (2)	—		(1)		—		14		—		13
Total change in deferred revenues	$	632	$	340	$	—	$	14	$	—	$	986

Segment net revenues:
Digital online channels (1)	$	2,953	$	1,941	$	2,785	$	—	$	(76)	$	7,603
Retail channels	277		16		—		—		—		293
Other (2)	45		55		—		518		—		618
Total segment net revenues	$	3,275	$	2,012	$	2,785	$	518	$	(76)	$	8,514


	Year Ended December 31, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	3,287	$	1,873	$	2,597	$	—	$	(94)	$	7,663
Retail channels	449		30		—		—		—		479
Other (2)	40		72		—		549		—		661
Total consolidated net revenues	$	3,776	$	1,975	$	2,597	$	549	$	(94)	$	8,803

Change in deferred revenues:
Digital online channels (1)	$	(264)	$	(140)	$	(17)	$	—	$	—	$	(421)
Retail channels	(34)		(8)		—		—		—		(42)
Other (2)	—		—		—		14		—		14
Total change in deferred revenues	$	(298)	$	(148)	$	(17)	$	14	$	—	$	(449)

Segment net revenues:
Digital online channels (1)	$	3,023	$	1,733	$	2,580	$	—	$	(94)	$	7,242
Retail channels	415		22		—		—		—		437
Other (2)	40		72		—		563		—		675
Total segment net revenues	$	3,478	$	1,827	$	2,580	$	563	$	(94)	$	8,354



	Year Ended December 31, 2020
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	2,930	$	1,672	$	2,167	$	—	$	(111)	$	6,658
Retail channels	702		39		—		—		—		741
Other (2)	57		92		—		538		—		687
Total consolidated net revenues	$	3,689	$	1,803	$	2,167	$	538	$	(111)	$	8,086

Change in deferred revenues:
Digital online channels (1)	$	365	$	102	$	(3)	$	—	$	—	$	464
Retail channels	(112)		—		—		—		—		(112)
Other (2)	—		—		—		(19)		—		(19)
Total change in deferred revenues	$	253	$	102	$	(3)	$	(19)	$	—	$	333

Segment net revenues:
Digital online channels (1)	$	3,295	$	1,774	$	2,164	$	—	$	(111)	$	7,122
Retail channels	590		39		—		—		—		629
Other (2)	57		92		—		519		—		668
Total segment net revenues	$	3,942	$	1,905	$	2,164	$	519	$	(111)	$	8,419

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

(2)Net revenues from “Other” primarily include revenues from our Distribution business, the Overwatch League, and the Call of Duty 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, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	1,732	$	716	$	1,809	$	—	$	(49)	$	4,208
EMEA (1)	652		434		668		504		(22)		2,236
Asia Pacific	259		522		308		—		(5)		1,084
Total consolidated net revenues	$	2,643	$	1,672	$	2,785	$	504	$	(76)	$	7,528

Change in deferred revenues:
Americas	$	420	$	188	$	—	$	—	$	1	$	609
EMEA (1)	145		99		(1)		14		—		257
Asia Pacific	67		53		1		—		(1)		120
Total change in deferred revenues	$	632	$	340	$	—	$	14	$	—	$	986

Segment net revenues:
Americas	$	2,152	$	904	$	1,809	$	—	$	(48)	$	4,817
EMEA (1)	797		533		667		518		(22)		2,493
Asia Pacific	326		575		309		—		(6)		1,204
Total segment net revenues	$	3,275	$	2,012	$	2,785	$	518	$	(76)	$	8,514


	Year Ended December 31, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	2,446	$	876	$	1,664	$	—	$	(55)	$	4,931
EMEA (1)	976		638		665		549		(31)		2,797
Asia Pacific	354		461		268		—		(8)		1,075
Total consolidated net revenues	$	3,776	$	1,975	$	2,597	$	549	$	(94)	$	8,803

Change in deferred revenues:
Americas	$	(198)	$	(79)	$	(11)	$	—	$	—	$	(288)
EMEA (1)	(80)		(65)		(5)		14		—		(136)
Asia Pacific	(20)		(4)		(1)		—		—		(25)
Total change in deferred revenues	$	(298)	$	(148)	$	(17)	$	14	$	—	$	(449)

Segment net revenues:
Americas	$	2,248	$	797	$	1,653	$	—	$	(55)	$	4,643
EMEA (1)	896		573		660		563		(31)		2,661
Asia Pacific	334		457		267		—		(8)		1,050
Total segment net revenues	$	3,478	$	1,827	$	2,580	$	563	$	(94)	$	8,354



	Year Ended December 31, 2020
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	2,316	$	794	$	1,384	$	—	$	(60)	$	4,434
EMEA (1)	1,061		550		568		538		(37)		2,680
Asia Pacific	312		459		215		—		(14)		972
Total consolidated net revenues	$	3,689	$	1,803	$	2,167	$	538	$	(111)	$	8,086

Change in deferred revenues:
Americas	$	228	$	58	$	(1)	$	—	$	—	$	285
EMEA (1)	36		43		(1)		(19)		—		59
Asia Pacific	(11)		1		(1)		—		—		(11)
Total change in deferred revenues	$	253	$	102	$	(3)	$	(19)	$	—	$	333

Segment net revenues:
Americas	$	2,544	$	852	$	1,383	$	—	$	(60)	$	4,719
EMEA (1)	1,097		593		567		519		(37)		2,739
Asia Pacific	301		460		214		—		(14)		961
Total segment net revenues	$	3,942	$	1,905	$	2,164	$	519	$	(111)	$	8,419

(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, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	1,661	$	92	$	—	$	—	$	—	$	1,753
PC	456		1,203		70		—		(76)		1,653
Mobile and ancillary (1)	481		321		2,715		—		—		3,517
Other (2)	45		56		—		504		—		605
Total consolidated net revenues	$	2,643	$	1,672	$	2,785	$	504	$	(76)	$	7,528

Change in deferred revenues:
Console	$	286	$	27	$	—	$	—	$	—	$	313
PC	252		239		—		—		—		491
Mobile and ancillary (1)	94		75		—		—		—		169
Other (2)	—		(1)		—		14		—		13
Total change in deferred revenues	$	632	$	340	$	—	$	14	$	—	$	986

Segment net revenues:
Console	$	1,947	$	119	$	—	$	—	$	—	$	2,066
PC	708		1,442		70		—		(76)		2,144
Mobile and ancillary (1)	575		396		2,715		—		—		3,686
Other (2)	45		55		—		518		—		618
Total segment net revenues	$	3,275	$	2,012	$	2,785	$	518	$	(76)	$	8,514


	Year Ended December 31, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	2,502	$	135	$	—	$	—	$	—	$	2,637
PC	660		1,673		84		—		(94)		2,323
Mobile and ancillary (1)	574		95		2,513		—		—		3,182
Other (2)	40		72		—		549		—		661
Total consolidated net revenues	$	3,776	$	1,975	$	2,597	$	549	$	(94)	$	8,803

Change in deferred revenues:
Console	$	(248)	$	(6)	$	—	$	—	$	—	$	(254)
PC	(82)		(145)		(1)		—		—		(228)
Mobile and ancillary (1)	32		3		(16)		—		—		19
Other (2)	—		—		—		14		—		14
Total change in deferred revenues	$	(298)	$	(148)	$	(17)	$	14	$	—	$	(449)

Segment net revenues:
Console	$	2,254	$	129	$	—	$	—	$	—	$	2,383
PC	578		1,528		83		—		(94)		2,095
Mobile and ancillary (1)	606		98		2,497		—		—		3,201
Other (2)	40		72		—		563		—		675
Total segment net revenues	$	3,478	$	1,827	$	2,580	$	563	$	(94)	$	8,354



	Year Ended December 31, 2020
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	2,668	$	116	$	—	$	—	$	—	$	2,784
PC	582		1,489		96		—		(111)		2,056
Mobile and ancillary (1)	382		106		2,071		—		—		2,559
Other (2)	57		92		—		538		—		687
Total consolidated net revenues	$	3,689	$	1,803	$	2,167	$	538	$	(111)	$	8,086

Change in deferred revenues:
Console	$	140	$	(8)	$	—	$	—	$	—	$	132
PC	64		115		—		—		—		179
Mobile and ancillary (1)	49		(5)		(3)		—		—		41
Other (2)	—		—		—		(19)		—		(19)
Total change in deferred revenues	$	253	$	102	$	(3)	$	(19)	$	—	$	333

Segment net revenues:
Console	$	2,808	$	108	$	—	$	—	$	—	$	2,916
PC	646		1,604		96		—		(111)		2,235
Mobile and ancillary (1)	431		101		2,068		—		—		2,600
Other (2)	57		92		—		519		—		668
Total segment net revenues	$	3,942	$	1,905	$	2,164	$	519	$	(111)	$	8,419

(1)Net revenues from “Mobile and ancillary” primarily include revenues from mobile devices.

(2)Net revenues from “Other” primarily include revenues from our Distribution business, the Overwatch League, and the Call of Duty 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,
	2022		2021		2020
Long-lived assets* by geographic region:
Americas	$	279	$	264	$	270
EMEA	103		122		166
Asia Pacific	21		20		17
Total long-lived assets by geographic region	$	403	$	406	$	453

* 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 lease right-of-use assets. All other long-term assets are not allocated by location.

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

Operating Segments and Geographic Regions

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Operating Segments and Geographic Regions

15. Operating Segments and Geographic Regions

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 (including liability awards accounted for under ASC 718); 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; certain partnership wind down related costs; and certain other non-cash charges. The CODM does not review any information regarding total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto.

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

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




















	Year Ended December 31, 2022
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	3,275	$	1,936	$	2,785	$	7,996
Intersegment net revenues (1)	—		76		—		76
Segment net revenues	$	3,275	$	2,012	$	2,785	$	8,072

Segment operating income	$	1,317	$	625	$	1,121	$	3,063

	Year Ended December 31, 2021
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	3,478	$	1,733	$	2,580	$	7,791
Intersegment net revenues (1)	—		94		—		94
Segment net revenues	$	3,478	$	1,827	$	2,580	$	7,885

Segment operating income	$	1,667	$	698	$	1,140	$	3,505

	Year Ended December 31, 2020
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	3,942	$	1,794	$	2,164	$	7,900
Intersegment net revenues (1)	—		111		—		111
Segment net revenues	$	3,942	$	1,905	$	2,164	$	8,011

Segment operating income	$	1,868	$	693	$	857	$	3,418

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


	Years Ended December 31,
		2022		2021		2020
Reconciliation to consolidated net revenues:
Segment net revenues		$	8,072	$	7,885	$	8,011
Revenues from non-reportable segments (1)		518		563		519
Net effect from recognition (deferral) of deferred net revenues (2)		(986)		449		(333)
Elimination of intersegment revenues (3)		(76)		(94)		(111)
Consolidated net revenues		$	7,528	$	8,803	$	8,086

Reconciliation to consolidated income before income tax expense:
Segment operating income		$	3,063	$	3,505	$	3,418
Operating income (loss) from non-reportable segments (1)		22		2		(55)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)		(848)		347		(238)
Share-based compensation expense (4)		(462)		(508)		(218)
Amortization of intangible assets (5)		(13)		(10)		(79)
Restructuring and related costs (6)		3		(77)		(94)
Partnership wind down and related costs (7)		(27)		—		—
Merger and acquisition-related fees and other expenses (8)		(68)		—		—

Consolidated operating income		1,670		3,259		2,734
Interest expense from debt		108		108		99
Other (income) expense, net		(182)		(13)		(12)
Loss on extinguishment of debt		—		—		31
Consolidated income before income tax expense		$	1,744	$	3,164	$	2,616

(1)Includes other income and expenses outside of our reportable segments, including our Distribution business and 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 expenses related to share-based compensation.

(5)Reflects amortization of intangible assets from purchase price accounting.

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

(8)Reflects fees and other expenses related to our proposed transaction with Microsoft, which primarily consist of legal and advisory fees.

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


	Year Ended December 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	2,324	$	1,600	$	2,785	$	—	$	(76)	$	6,633
Retail channels	274		16		—		—		—		290
Other (2)	45		56		—		504		—		605
Total consolidated net revenues	$	2,643	$	1,672	$	2,785	$	504	$	(76)	$	7,528

Change in deferred revenues:
Digital online channels (1)	$	629	$	341	$	—	$	—	$	—	$	970
Retail channels	3		—		—		—		—		3
Other (2)	—		(1)		—		14		—		13
Total change in deferred revenues	$	632	$	340	$	—	$	14	$	—	$	986

Segment net revenues:
Digital online channels (1)	$	2,953	$	1,941	$	2,785	$	—	$	(76)	$	7,603
Retail channels	277		16		—		—		—		293
Other (2)	45		55		—		518		—		618
Total segment net revenues	$	3,275	$	2,012	$	2,785	$	518	$	(76)	$	8,514


	Year Ended December 31, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	3,287	$	1,873	$	2,597	$	—	$	(94)	$	7,663
Retail channels	449		30		—		—		—		479
Other (2)	40		72		—		549		—		661
Total consolidated net revenues	$	3,776	$	1,975	$	2,597	$	549	$	(94)	$	8,803

Change in deferred revenues:
Digital online channels (1)	$	(264)	$	(140)	$	(17)	$	—	$	—	$	(421)
Retail channels	(34)		(8)		—		—		—		(42)
Other (2)	—		—		—		14		—		14
Total change in deferred revenues	$	(298)	$	(148)	$	(17)	$	14	$	—	$	(449)

Segment net revenues:
Digital online channels (1)	$	3,023	$	1,733	$	2,580	$	—	$	(94)	$	7,242
Retail channels	415		22		—		—		—		437
Other (2)	40		72		—		563		—		675
Total segment net revenues	$	3,478	$	1,827	$	2,580	$	563	$	(94)	$	8,354



	Year Ended December 31, 2020
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	2,930	$	1,672	$	2,167	$	—	$	(111)	$	6,658
Retail channels	702		39		—		—		—		741
Other (2)	57		92		—		538		—		687
Total consolidated net revenues	$	3,689	$	1,803	$	2,167	$	538	$	(111)	$	8,086

Change in deferred revenues:
Digital online channels (1)	$	365	$	102	$	(3)	$	—	$	—	$	464
Retail channels	(112)		—		—		—		—		(112)
Other (2)	—		—		—		(19)		—		(19)
Total change in deferred revenues	$	253	$	102	$	(3)	$	(19)	$	—	$	333

Segment net revenues:
Digital online channels (1)	$	3,295	$	1,774	$	2,164	$	—	$	(111)	$	7,122
Retail channels	590		39		—		—		—		629
Other (2)	57		92		—		519		—		668
Total segment net revenues	$	3,942	$	1,905	$	2,164	$	519	$	(111)	$	8,419

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

(2)Net revenues from “Other” primarily include revenues from our Distribution business, the Overwatch League, and the Call of Duty League.

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

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, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	1,732	$	716	$	1,809	$	—	$	(49)	$	4,208
EMEA (1)	652		434		668		504		(22)		2,236
Asia Pacific	259		522		308		—		(5)		1,084
Total consolidated net revenues	$	2,643	$	1,672	$	2,785	$	504	$	(76)	$	7,528

Change in deferred revenues:
Americas	$	420	$	188	$	—	$	—	$	1	$	609
EMEA (1)	145		99		(1)		14		—		257
Asia Pacific	67		53		1		—		(1)		120
Total change in deferred revenues	$	632	$	340	$	—	$	14	$	—	$	986

Segment net revenues:
Americas	$	2,152	$	904	$	1,809	$	—	$	(48)	$	4,817
EMEA (1)	797		533		667		518		(22)		2,493
Asia Pacific	326		575		309		—		(6)		1,204
Total segment net revenues	$	3,275	$	2,012	$	2,785	$	518	$	(76)	$	8,514


	Year Ended December 31, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	2,446	$	876	$	1,664	$	—	$	(55)	$	4,931
EMEA (1)	976		638		665		549		(31)		2,797
Asia Pacific	354		461		268		—		(8)		1,075
Total consolidated net revenues	$	3,776	$	1,975	$	2,597	$	549	$	(94)	$	8,803

Change in deferred revenues:
Americas	$	(198)	$	(79)	$	(11)	$	—	$	—	$	(288)
EMEA (1)	(80)		(65)		(5)		14		—		(136)
Asia Pacific	(20)		(4)		(1)		—		—		(25)
Total change in deferred revenues	$	(298)	$	(148)	$	(17)	$	14	$	—	$	(449)

Segment net revenues:
Americas	$	2,248	$	797	$	1,653	$	—	$	(55)	$	4,643
EMEA (1)	896		573		660		563		(31)		2,661
Asia Pacific	334		457		267		—		(8)		1,050
Total segment net revenues	$	3,478	$	1,827	$	2,580	$	563	$	(94)	$	8,354



	Year Ended December 31, 2020
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	2,316	$	794	$	1,384	$	—	$	(60)	$	4,434
EMEA (1)	1,061		550		568		538		(37)		2,680
Asia Pacific	312		459		215		—		(14)		972
Total consolidated net revenues	$	3,689	$	1,803	$	2,167	$	538	$	(111)	$	8,086

Change in deferred revenues:
Americas	$	228	$	58	$	(1)	$	—	$	—	$	285
EMEA (1)	36		43		(1)		(19)		—		59
Asia Pacific	(11)		1		(1)		—		—		(11)
Total change in deferred revenues	$	253	$	102	$	(3)	$	(19)	$	—	$	333

Segment net revenues:
Americas	$	2,544	$	852	$	1,383	$	—	$	(60)	$	4,719
EMEA (1)	1,097		593		567		519		(37)		2,739
Asia Pacific	301		460		214		—		(14)		961
Total segment net revenues	$	3,942	$	1,905	$	2,164	$	519	$	(111)	$	8,419

(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 49%, 49%, and 48% of consolidated net revenues for the years ended December 31, 2022, 2021, and 2020, respectively. The Company’s net revenues in the U.K. were 11%, 11%, and 12% of consolidated net revenues for the years ended December 31, 2022, 2021, and 2020, respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for the years ended December 31, 2022, 2021, or 2020.

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, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	1,661	$	92	$	—	$	—	$	—	$	1,753
PC	456		1,203		70		—		(76)		1,653
Mobile and ancillary (1)	481		321		2,715		—		—		3,517
Other (2)	45		56		—		504		—		605
Total consolidated net revenues	$	2,643	$	1,672	$	2,785	$	504	$	(76)	$	7,528

Change in deferred revenues:
Console	$	286	$	27	$	—	$	—	$	—	$	313
PC	252		239		—		—		—		491
Mobile and ancillary (1)	94		75		—		—		—		169
Other (2)	—		(1)		—		14		—		13
Total change in deferred revenues	$	632	$	340	$	—	$	14	$	—	$	986

Segment net revenues:
Console	$	1,947	$	119	$	—	$	—	$	—	$	2,066
PC	708		1,442		70		—		(76)		2,144
Mobile and ancillary (1)	575		396		2,715		—		—		3,686
Other (2)	45		55		—		518		—		618
Total segment net revenues	$	3,275	$	2,012	$	2,785	$	518	$	(76)	$	8,514


	Year Ended December 31, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	2,502	$	135	$	—	$	—	$	—	$	2,637
PC	660		1,673		84		—		(94)		2,323
Mobile and ancillary (1)	574		95		2,513		—		—		3,182
Other (2)	40		72		—		549		—		661
Total consolidated net revenues	$	3,776	$	1,975	$	2,597	$	549	$	(94)	$	8,803

Change in deferred revenues:
Console	$	(248)	$	(6)	$	—	$	—	$	—	$	(254)
PC	(82)		(145)		(1)		—		—		(228)
Mobile and ancillary (1)	32		3		(16)		—		—		19
Other (2)	—		—		—		14		—		14
Total change in deferred revenues	$	(298)	$	(148)	$	(17)	$	14	$	—	$	(449)

Segment net revenues:
Console	$	2,254	$	129	$	—	$	—	$	—	$	2,383
PC	578		1,528		83		—		(94)		2,095
Mobile and ancillary (1)	606		98		2,497		—		—		3,201
Other (2)	40		72		—		563		—		675
Total segment net revenues	$	3,478	$	1,827	$	2,580	$	563	$	(94)	$	8,354



	Year Ended December 31, 2020
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	2,668	$	116	$	—	$	—	$	—	$	2,784
PC	582		1,489		96		—		(111)		2,056
Mobile and ancillary (1)	382		106		2,071		—		—		2,559
Other (2)	57		92		—		538		—		687
Total consolidated net revenues	$	3,689	$	1,803	$	2,167	$	538	$	(111)	$	8,086

Change in deferred revenues:
Console	$	140	$	(8)	$	—	$	—	$	—	$	132
PC	64		115		—		—		—		179
Mobile and ancillary (1)	49		(5)		(3)		—		—		41
Other (2)	—		—		—		(19)		—		(19)
Total change in deferred revenues	$	253	$	102	$	(3)	$	(19)	$	—	$	333

Segment net revenues:
Console	$	2,808	$	108	$	—	$	—	$	—	$	2,916
PC	646		1,604		96		—		(111)		2,235
Mobile and ancillary (1)	431		101		2,068		—		—		2,600
Other (2)	57		92		—		519		—		668
Total segment net revenues	$	3,942	$	1,905	$	2,164	$	519	$	(111)	$	8,419

(1)Net revenues from “Mobile and ancillary” primarily include revenues from mobile devices.

(2)Net revenues from “Other” primarily include revenues from our Distribution business, the Overwatch League, and the Call of Duty 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,
	2022		2021		2020
Long-lived assets* by geographic region:
Americas	$	279	$	264	$	270
EMEA	103		122		166
Asia Pacific	21		20		17
Total long-lived assets by geographic region	$	403	$	406	$	453

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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Summary of Significant Accounting Policies - Schedule of Revenue by Major Customers (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Apple Inc. \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	20.00%	17.00%	15.00%
Google Inc. \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	18.00%	17.00%	14.00%
Google Inc. \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	10.00%
Sony Interactive Entertainment Inc. \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk	13.00%	15.00%	17.00%
Sony Interactive Entertainment Inc. \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	22.00%	22.00%
Microsoft Corporation \| Consolidated net revenues
Concentration Risk [Line Items]
Percentage of concentration risk			11.00%
Microsoft Corporation \| Consolidated gross receivables
Concentration Risk [Line Items]
Percentage of concentration risk	20.00%	20.00%

Other Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Other Assets and Liabilities
Accrued payroll related costs	$ 400	$ 364
Income tax payable, current	$ 80	$ 144

Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Federal income tax provision at statutory rate	$ 367	$ 664	$ 549
State taxes, net of federal benefit	20	67	43
Research and development credits	(65)	(81)	(70)
Foreign earnings taxed at different rates	(72)	(120)	(93)
Foreign-derived intangible income	(46)	(50)	(40)
Change in tax reserves	9	43	60
Change in tax legislation	0	(53)	(23)
Change in valuation allowance	11	11	35
Intra-entity IP transfer	0	0	(31)
Other	7	(16)	(11)
Income tax expense	$ 231	$ 465	$ 419
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Federal income tax provision at statutory rate	21.00%	21.00%	21.00%
State taxes, net of federal benefit	1.00%	2.00%	2.00%
Research and development credits	(4.00%)	(2.00%)	(3.00%)
Foreign earnings taxed at different rates	(4.00%)	(4.00%)	(4.00%)
Foreign-derived intangible income	(3.00%)	(1.00%)	(2.00%)
Change in tax reserves	1.00%	1.00%	2.00%
Change in tax legislation	0.00%	(2.00%)	(1.00%)
Change in valuation allowance	1.00%	0.00%	2.00%
Intra-entity IP transfer	0.00%	0.00%	(1.00%)
Other	0.00%	0.00%	0.00%
Income tax expense	13.00%	15.00%	16.00%

Summary of Significant Accounting Policies - Definite-Lived Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Finite-lived intangible asset impairment	$ 0	$ 0	$ 0

Share-Based Payments - Restricted Stock Units and Restricted Stock Awards Activities (Details) - Restricted Stock Units (RSUs) shares in Thousands	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Restricted stock rights activity
Restricted stock rights at the beginning of the period (in shares) \| shares	13,258
Restricted stock rights, granted (in shares) \| shares	9,082
Restricted stock rights, vested (in shares) \| shares	(7,075)
Restricted stock rights, forfeited (in shares) \| shares	(1,511)
Restricted stock rights at the end of the period (in shares) \| shares	13,754
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) \| $ / shares	$ 75.51
Restricted stock rights, weighted-average grant date fair value, granted (in dollars per share) \| $ / shares	78.14
Restricted stock rights, weighted-average grant date fair value, vested (in dollars per share) \| $ / shares	79.45
Restricted stock rights, weighted-average grant date fair value, forfeited (in dollars per share) \| $ / shares	82.14
Restricted stock rights, weighted-average grant date fair value at the end of the period (in dollars per share) \| $ / shares	$ 74.53

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 17,599	$ 15,037
Other comprehensive income (loss) before reclassifications	28	25
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(75)	19
Ending balance	19,243	17,599
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(606)	(589)
Other comprehensive income (loss) before reclassifications	(30)	(17)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	0
Ending balance	(636)	(606)
Unrealized gain (loss) on available-for- sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	3	(5)
Other comprehensive income (loss) before reclassifications	19	(2)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(22)	10
Ending balance	0	3
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	25	(28)
Other comprehensive income (loss) before reclassifications	39	44
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(53)	9
Ending balance	11	25
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(578)	(622)
Ending balance	$ (625)	$ (578)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash	$ 421	$ 354
Foreign government treasury bills	0	34
Money market funds	6,639	10,035
Cash and cash equivalents	$ 7,060	$ 10,423

Summary of Significant Accounting Policies - Goodwill and Other Indefinite-Lived Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Indefinite-lived Intangible Assets [Line Items]
Goodwill impairment	$ 0	$ 0	$ 0
Trade names
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible asset impairment	$ 0	$ 0	$ 0

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022
	Foreign currency translation adjustments		Unrealized gain (loss) on available-for- sale securities		Unrealized gain (loss) on forward contracts		Total
Balance at December 31, 2021	$	(606)	$	3	$	25	$	(578)
Other comprehensive income (loss) before reclassifications	(30)		19		39		28
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		(22)		(53)		(75)
Balance at December 31, 2022	$	(636)	$	—	$	11	$	(625)


	For the Year Ended December 31, 2021
	Foreign currency translation adjustments		Unrealized gain (loss) on available-for- sale securities		Unrealized gain (loss) on forward contracts		Total
Balance at December 31, 2020	$	(589)	$	(5)	$	(28)	$	(622)
Other comprehensive income (loss) before reclassifications	(17)		(2)		44		25
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		10		9		19
Balance at December 31, 2021	$	(606)	$	3	$	25	$	(578)

Cash and Cash Equivalents (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021
Cash	$	421	$	354
Foreign government treasury bills	—		34
Money market funds	6,639		10,035
Cash and cash equivalents	$	7,060	$	10,423

Software Development

12 Months Ended

Dec. 31, 2022

Software Development Costs [Abstract]

Software Development

5. Software Development

Our total capitalized software development costs of $1.3 billion and $660 million as of December 31, 2022 and December 31, 2021, respectively, primarily relate to internal development costs.

Amortization of capitalized software development costs was as follows (amounts in millions):


	For the Years Ended December 31,
		2022		2021		2020
Amortization of capitalized software development costs		$	236	$	341	$	263

Summary of Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Marketing and Advertising Expense [Abstract]
Advertising expense included in sales and marketing expense	$ 882	$ 736	$ 746

Operating Segments and Geographic Regions - Summary of Reportable Segment Net Revenues and Operating Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Segment net revenues	$ 8,514	$ 8,354	$ 8,419
Segment operating income	1,670	3,259	2,734
Net effect from recognition (deferral) of deferred net revenues	986	(449)	333
Total net revenues	7,528	8,803	8,086
Share-based compensation expense	(462)	(508)	(218)
Restructuring and related costs	3	(77)	(94)
Interest expense from debt	108	108	99
Other (income) expense, net	(182)	(13)	(12)
Loss on extinguishment of debt	0	0	31
Income before income tax expense	1,744	3,164	2,616
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	8,072	7,885	8,011
Segment operating income	3,063	3,505	3,418
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Segment net revenues	3,275	3,478	3,942
Segment operating income	1,317	1,667	1,868
Net effect from recognition (deferral) of deferred net revenues	632	(298)	253
Total net revenues	2,643	3,776	3,689
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues	2,012	1,827	1,905
Segment operating income	625	698	693
Net effect from recognition (deferral) of deferred net revenues	340	(148)	102
Total net revenues	1,672	1,975	1,803
Reportable segments \| King
Segment Reporting Information [Line Items]
Segment net revenues	2,785	2,580	2,164
Segment operating income	1,121	1,140	857
Net effect from recognition (deferral) of deferred net revenues	0	(17)	(3)
Total net revenues	2,785	2,597	2,167
Reportable segments \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues	7,996	7,791	7,900
Reportable segments \| Net revenues from external customers \| Activision
Segment Reporting Information [Line Items]
Segment net revenues	3,275	3,478	3,942
Reportable segments \| Net revenues from external customers \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues	1,936	1,733	1,794
Reportable segments \| Net revenues from external customers \| King
Segment Reporting Information [Line Items]
Segment net revenues	2,785	2,580	2,164
Reportable segments \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues	76	94	111
Reportable segments \| Intersegment net revenues \| Activision
Segment Reporting Information [Line Items]
Segment net revenues	0	0	0
Reportable segments \| Intersegment net revenues \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues	76	94	111
Reportable segments \| Intersegment net revenues \| King
Segment Reporting Information [Line Items]
Segment net revenues	0	0	0
Non-reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	518	563	519
Net effect from recognition (deferral) of deferred net revenues	14	14	(19)
Total net revenues	504	549	538
Reconciliation items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues	(986)	449	(333)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	(848)	347	(238)
Share-based compensation expense	(462)	(508)	(218)
Amortization of intangible assets	(13)	(10)	(79)
Restructuring and related costs	3	(77)	(94)
Partnership winddown and related costs	27	0	0
Merger and acquisition-related fees and other expenses	(68)	0	0
Reconciliation items \| Other segments
Segment Reporting Information [Line Items]
Segment operating income	22	2	(55)
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Segment net revenues	(76)	(94)	(111)
Net effect from recognition (deferral) of deferred net revenues	0	0	0
Total net revenues	$ (76)	$ (94)	$ (111)

Other (Income) Expense, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Interest income	$ (165)	$ (5)	$ (21)
Realized and unrealized loss (gain) on equity investment	1	(28)	(3)
Other (income) expense	(18)	20	12
Other (income) expense, net	$ (182)	$ (13)	$ (12)

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
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	$ 17	$ 63	$ 118
Valuation and qualifying accounts, additions	7	3	(29)
Valuation and qualifying accounts, deductions	(8)	(49)	(26)
Valuation and qualifying accounts, balance at the end of period	16	17	63
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	278	228	181
Valuation and qualifying accounts, additions	33	52	49
Valuation and qualifying accounts, deductions	(6)	(2)	(2)
Valuation and qualifying accounts, balance at the end of period	$ 305	$ 278	$ 228

Fair Value Measurements - Foreign Currency Forward Contracts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Total net revenues	$ 7,528	$ 8,803	$ 8,086
Foreign currency forward contracts designated as hedges \| Cash Flow Hedging \| Reclassification out of Accumulated Other Comprehensive Income \| Net revenues
Derivatives, Fair Value [Line Items]
Total net revenues	$ 53	(9)	$ (3)
Foreign currency forward contracts designated as hedges \| 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
Buy USD, Sell EUR \| Foreign currency forward contracts designated as hedges \| Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount	$ 509	382
Fair value gain (loss)	$ 0	$ 20

Commitments and Contingencies - Future Minimum Commitments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Long-term Purchase Commitment [Line Items]
2023	$ 465
2024	203
2025	164
2026	980
2027	489
Thereafter	3,640
Total	5,941
Unrecognized tax benefits, net of tax credits, noncurrent	476
Transition tax liability	$ 127
Transition tax liability, term	4 years
Facility and Equipment Leases
Long-term Purchase Commitment [Line Items]
2023	$ 91
2024	71
2025	47
2026	25
2027	20
Thereafter	7
Total	261
Developer and Hosting
Long-term Purchase Commitment [Line Items]
2023	184
2024	27
2025	12
2026	0
2027	0
Thereafter	0
Total	223
Marketing
Long-term Purchase Commitment [Line Items]
2023	85
2024	0
2025	0
2026	0
2027	0
Thereafter	0
Total	85
Long-term debt obligations
Long-term Purchase Commitment [Line Items]
2023	105
2024	105
2025	105
2026	955
2027	469
Thereafter	3,633
Total	$ 5,372

Operating Segments and Geographic Regions - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Long-lived assets	$ 403	$ 406	$ 453
Americas
Segment Reporting Information [Line Items]
Long-lived assets	279	264	270
EMEA
Segment Reporting Information [Line Items]
Long-lived assets	103	122	166
Asia Pacific
Segment Reporting Information [Line Items]
Long-lived assets	$ 21	$ 20	$ 17

Computation of Basic/Diluted Earnings Per Common Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Computation of Basic/Diluted Earnings Per Common Share

20. 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,
		2022		2021		2020
Numerator:
Consolidated net income		$	1,513	$	2,699	$	2,197




Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding		782		777		771
Effect of dilutive stock options and awards under the treasury stock method		7		7		7
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method		789		784		778

Basic earnings per common share		$	1.94	$	3.47	$	2.85
Diluted earnings per common share		$	1.92	$	3.44	$	2.82

Goodwill (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of Goodwill by Operating Segments

The carrying amount of goodwill by reportable segment at both December 31, 2022 and December 31, 2021, was as follows (amounts in millions):


	Activision		Blizzard		King		Total


Balance at December 31, 2020	$	6,899	$	190	$	2,676	$	9,765
Additions through acquisition (1)	34		—		—		34

Balance at December 31, 2021	$	6,933	$	190	$	2,676	$	9,799
Additions through acquisition (2)	—		97		33		130

Balance at December 31, 2022	$	6,933	$	287	$	2,709	$	9,929

(1) On October 28, 2021 we acquired a mobile game developer, Digital Legends, that operates as a studio under our Activision segment. The total net assets acquired were not material.

(2) The Company completed the acquisition of two businesses to acquire 100% of the respective voting equity interests of the following entities during June 2022:

•Proletariat Inc. (“Proletariat”), a privately held game development studio based in Boston, Massachusetts, was acquired by Blizzard to increase developer resources for the Warcraft franchise.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Description of Business - China License Agreements (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
NetEase, Inc. \| Consolidated net revenues \| Customer Concentration Risk
Concentration Risk [Line Items]
Percentage of concentration risk	3.00%	3.00%

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Common stock, beginning balance (in shares) at Dec. 31, 2019			1,197
Treasury stock, beginning balance (in shares) at Dec. 31, 2019				(429)
Beginning balance at Dec. 31, 2019	$ 12,805	$ (3)	$ 0	$ (5,563)	$ 11,174	$ 7,813	$ (3)	$ (619)
Components of comprehensive income:
Net income	2,197					2,197
Other comprehensive income (loss)	(3)							(3)
Issuance of common stock pursuant to employee stock options (in shares)			5
Issuance of common stock pursuant to employee stock options	171				171
Issuance of common stock pursuant to restricted stock units (in shares)			1
Issuance of common stock pursuant to restricted stock units	0
Restricted stock surrendered for employees’ tax liability	(40)				(40)
Share-based compensation expense related to employee stock options and restricted stock units	226				226
Dividends	(316)					(316)
Common stock, ending balance (in shares) at Dec. 31, 2020			1,203
Treasury stock, ending balance (in shares) at Dec. 31, 2020				(429)
Ending balance at Dec. 31, 2020	15,037		$ 0	$ (5,563)	11,531	9,691		(622)
Components of comprehensive income:
Net income	2,699					2,699
Other comprehensive income (loss)	44							44
Issuance of common stock pursuant to employee stock options (in shares)			2
Issuance of common stock pursuant to employee stock options	90				90
Issuance of common stock pursuant to restricted stock units (in shares)			6
Issuance of common stock pursuant to restricted stock units	0
Restricted stock surrendered for employees' tax liability (in shares)			(3)
Restricted stock surrendered for employees’ tax liability	(245)				(245)
Share-based compensation expense related to employee stock options and restricted stock units	339				339
Dividends	(365)					(365)
Common stock, ending balance (in shares) at Dec. 31, 2021			1,208
Treasury stock, ending balance (in shares) at Dec. 31, 2021				(429)
Ending balance at Dec. 31, 2021	17,599		$ 0	$ (5,563)	11,715	12,025		(578)
Components of comprehensive income:
Net income	1,513					1,513
Other comprehensive income (loss)	(47)							(47)
Issuance of common stock pursuant to employee stock options (in shares)			1
Issuance of common stock pursuant to employee stock options	47				47
Issuance of common stock pursuant to restricted stock units (in shares)			7
Issuance of common stock pursuant to restricted stock units	0
Restricted stock surrendered for employees' tax liability (in shares)			(3)
Restricted stock surrendered for employees’ tax liability	(227)				(227)
Settlement of liability-classified awards in restricted stock units	204				204
Share-based compensation expense related to employee stock options and restricted stock units	521				521
Dividends	(367)					(367)
Common stock, ending balance (in shares) at Dec. 31, 2022			1,213
Treasury stock, ending balance (in shares) at Dec. 31, 2022				(429)
Ending balance at Dec. 31, 2022	$ 19,243		$ 0	$ (5,563)	$ 12,260	$ 13,171		$ (625)

Share-Based Payments - Method and Assumptions on Valuation of Stock Options and Awards (Details) - Stock Option Plan - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Schedule of Share-based Compensation Assumptions [Line Items]
Expected life (in years)	7 years 7 months 9 days	7 years 8 months 12 days
Volatility	31.06%	30.89%
Risk free interest rate	1.29%	0.70%
Dividend yield	0.51%	0.53%
Weighted-average grant date fair value (in dollars per share)	$ 30.65	$ 25.93
Expected stock volatility rate, low end of range	31.00%	30.00%
Expected stock volatility rate, high end of range	35.00%	39.00%

Income Taxes - Income (Loss) Before Income Taxes and Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income before income tax expense:
Domestic	$ 490	$ 1,451	$ 1,160
Foreign	1,254	1,713	1,456
Income before income tax expense	1,744	3,164	2,616
Current:
Federal	269	189	206
State	28	35	92
Foreign	102	229	218
Total current	399	453	516
Deferred:
Federal	(324)	73	(84)
State	(28)	12	(10)
Foreign	184	(73)	(3)
Total deferred	(168)	12	(97)
Income tax expense	$ 231	$ 465	$ 419

Capital Transactions - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions					12 Months Ended
	May 06, 2022	Feb. 03, 2022	May 06, 2021	Feb. 04, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Dividends per common share (in dollars per share)		$ 0.47		$ 0.47	$ 0.47	$ 0.47	$ 0.41
Cash dividend payment	$ 367		$ 365		$ 367	$ 365	$ 316

Computation of Basic/Diluted Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Consolidated net income	$ 1,513	$ 2,699	$ 2,197
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)	782	777	771
Effect of dilutive stock options and awards under the treasury stock method (in shares)	7	7	7
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method (in shares)	789	784	778
Basic earnings per common share (in dollars per share)	$ 1.94	$ 3.47	$ 2.85
Diluted earnings per common share (in dollars per share)	$ 1.92	$ 3.44	$ 2.82

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1448-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

- Definition

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

+ References

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

19. 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,
	2022		2021		2020
Income before income tax expense:
Domestic	$	490	$	1,451	$	1,160
Foreign	1,254		1,713		1,456
	$	1,744	$	3,164	$	2,616
Income tax expense (benefit):
Current:
Federal	$	269	$	189	$	206
State	28		35		92
Foreign	102		229		218
Total current	399		453		516
Deferred:
Federal	(324)		73		(84)
State	(28)		12		(10)
Foreign	184		(73)		(3)
Total deferred	(168)		12		(97)

Income tax expense	$	231	$	465	$	419

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,
	2022				2021				2020
Federal income tax provision at statutory rate	$	367	21	%	$	664	21	%	$	549	21	%
State taxes, net of federal benefit	20		1		67		2		43		2
Research and development credits	(65)		(4)		(81)		(2)		(70)		(3)
Foreign earnings taxed at different rates	(72)		(4)		(120)		(4)		(93)		(4)
Foreign-derived intangible income	(46)		(3)		(50)		(1)		(40)		(2)
Change in tax reserves	9		1		43		1		60		2


Change in tax legislation	—		—		(53)		(2)		(23)		(1)

Change in valuation allowance	11		1		11		—		35		2
Intra-entity IP transfer	—		—		—		—		(31)		(1)
Other	7		—		(16)		—		(11)		—
Income tax expense	$	231	13	%	$	465	15	%	$	419	16	%

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 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. The U.K. amortizable tax basis is recoverable 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. During the year ended December 31, 2021, we recognized a one-time net benefit of $53 million from remeasuring this deferred tax asset due to the enactment of a change in the UK corporate tax rate.

During the year ended December 31, 2020, we completed an intra-entity transfer of certain intellectual property rights to the U.S. to better align the profits related to these rights with our evolving business activities. As a result, a significant portion of these earnings began qualifying for preferential treatment as foreign-derived intangible income during 2020. The transfer resulted in a one-time benefit of $31 million in connection with the remeasurement of a U.S. deferred tax asset related to foreign earnings.

Income tax expense for 2022 reflects the impact of certain tax elections and comparable changes the Company intends to include in its 2022 income tax returns and related statutory filings. To take these actions, the Merger Agreement requires Microsoft’s approval (which may not be unreasonably withheld, conditioned, or delayed), subject to certain exceptions. Failure to obtain this approval could have an adverse effect on our income tax expense.

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,
	2022		2021
Deferred tax assets:


Deferred revenue	$	324	$	210
Tax attributes carryforwards	191		143
Share-based compensation	47		46
Intangibles	1,333		1,458

Capitalized software development expenses	52		—
Other	136		141
Deferred tax assets	2,083		1,998
Valuation allowance	(305)		(278)
Deferred tax assets, net of valuation allowance	1,778		1,720
Deferred tax liabilities:
Intangibles	(171)		(158)
Capitalized software development expenses	—		(10)
U.S. deferred taxes on foreign earnings	(491)		(603)
Other	(72)		(78)
Deferred tax liabilities	(734)		(849)
Net deferred tax assets	$	1,044	$	871

As of December 31, 2022, we had gross tax credit carryforwards of $287 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.

We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, we evaluate the likelihood of realization based on the weight of all positive and negative evidence available. As of December 31, 2022 and December 31, 2021, we maintained a valuation allowance related to our California research and development credit carryforwards of $129 million and $118 million, respectively. 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.

Activision Blizzard’s tax years after 2008 remain open to examination by certain major taxing jurisdictions to which we are subject. The Internal Revenue Service is currently examining our federal tax returns for the 2012 through 2019 tax years. In addition, King’s pre-acquisition tax returns remain open in various jurisdictions, primarily as a result of 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 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, 2022, we had $1.2 billion of gross unrecognized tax benefits, $734 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,
	2022		2021		2020
Unrecognized tax benefits balance at January 1	$	1,289	$	1,166	$	1,037
Gross increase for tax positions taken during a prior year	7		98		97
Gross decrease for tax positions taken during a prior year	(52)		(18)		(1)
Gross increase for tax positions taken during the current year	22		52		38

Settlement with taxing authorities	(5)		(6)		(3)
Lapse of statute of limitations	(38)		(3)		(2)
Unrecognized tax benefits balance at December 31	$	1,223	$	1,289	$	1,166

As of December 31, 2022, 2021, and 2020, we had approximately $113 million, $102 million, and $93 million, respectively, of accrued interest and penalties related to uncertain tax positions. For the years ended December 31, 2022, 2021, and 2020, we recorded $13 million, $11 million, and $19 million, respectively, of interest expense related to uncertain tax positions.

We regularly assess the likelihood of adverse outcomes resulting from these examinations and monitor the progress of ongoing discussions with tax authorities in determining the appropriateness of our tax provisions. The final resolution of the Company’s global tax disputes is uncertain. There is significant judgment required in the analysis of disputes, including the probability determination and estimation of the potential exposure. Based on current information, in the opinion of the Company’s management, the ultimate resolution of these matters is not expected to have a material adverse effect on the Company’s consolidated financial position, liquidity, or results of operations.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases - Schedule of Operating ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
ROU assets	$ 210	$ 237
Current lease liabilities	83	77
Non-current lease liabilities	162	212
Total lease liabilities	$ 245	$ 289
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities	Accrued expenses and other liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Total lease liabilities	Total lease liabilities

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
Income before income tax expense:
Domestic	$	490	$	1,451	$	1,160
Foreign	1,254		1,713		1,456
	$	1,744	$	3,164	$	2,616
Income tax expense (benefit):
Current:
Federal	$	269	$	189	$	206
State	28		35		92
Foreign	102		229		218
Total current	399		453		516
Deferred:
Federal	(324)		73		(84)
State	(28)		12		(10)
Foreign	184		(73)		(3)
Total deferred	(168)		12		(97)

Income tax expense	$	231	$	465	$	419

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


	For the Years Ended December 31,
	2022				2021				2020
Federal income tax provision at statutory rate	$	367	21	%	$	664	21	%	$	549	21	%
State taxes, net of federal benefit	20		1		67		2		43		2
Research and development credits	(65)		(4)		(81)		(2)		(70)		(3)
Foreign earnings taxed at different rates	(72)		(4)		(120)		(4)		(93)		(4)
Foreign-derived intangible income	(46)		(3)		(50)		(1)		(40)		(2)
Change in tax reserves	9		1		43		1		60		2


Change in tax legislation	—		—		(53)		(2)		(23)		(1)

Change in valuation allowance	11		1		11		—		35		2
Intra-entity IP transfer	—		—		—		—		(31)		(1)
Other	7		—		(16)		—		(11)		—
Income tax expense	$	231	13	%	$	465	15	%	$	419	16	%

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,
	2022		2021
Deferred tax assets:


Deferred revenue	$	324	$	210
Tax attributes carryforwards	191		143
Share-based compensation	47		46
Intangibles	1,333		1,458

Capitalized software development expenses	52		—
Other	136		141
Deferred tax assets	2,083		1,998
Valuation allowance	(305)		(278)
Deferred tax assets, net of valuation allowance	1,778		1,720
Deferred tax liabilities:
Intangibles	(171)		(158)
Capitalized software development expenses	—		(10)
U.S. deferred taxes on foreign earnings	(491)		(603)
Other	(72)		(78)
Deferred tax liabilities	(734)		(849)
Net deferred tax assets	$	1,044	$	871

Reconciliation of unrecognized tax benefits for the period


	For the Years Ended December 31,
	2022		2021		2020
Unrecognized tax benefits balance at January 1	$	1,289	$	1,166	$	1,037
Gross increase for tax positions taken during a prior year	7		98		97
Gross decrease for tax positions taken during a prior year	(52)		(18)		(1)
Gross increase for tax positions taken during the current year	22		52		38

Settlement with taxing authorities	(5)		(6)		(3)
Lapse of statute of limitations	(38)		(3)		(2)
Unrecognized tax benefits balance at December 31	$	1,223	$	1,289	$	1,166

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2022

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

Valuation and Qualifying Accounts

SCHEDULE II

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

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, 2022
Allowances for sales returns and price protection and other allowances	$	17	$	7	$	(8)	$	16

Valuation allowance for deferred tax assets	$	278	$	33	$	(6)	$	305
At December 31, 2021
Allowances for sales returns and price protection and other allowances	$	63	$	3	$	(49)	$	17

Valuation allowance for deferred tax assets	$	228	$	52	$	(2)	$	278
At December 31, 2020
Allowances for sales returns and price protection and other allowances	$	118	$	(29)	$	(26)	$	63
Valuation allowance for deferred tax assets	$	181	$	49	$	(2)	$	228

(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.

Intangible Assets, Net (Details) - USD ($) $ in Millions	12 Months Ended
Intangible Assets, Net (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount		$ 1,234
Accumulated amortization		(1,220)
Net carrying amount		14
Acquired Indefinite-lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	$ 433	433
Total intangible assets, net	442	447
Activision trademark
Acquired Indefinite-lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	386	386
Trade names and other
Acquired Indefinite-lived Intangible Assets [Line Items]
Total indefinite-lived intangible assets	47	47
Internally-developed franchises
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount		1,154
Accumulated amortization		(1,154)
Net carrying amount		$ 0
Internally-developed franchises \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful lives		3 years
Internally-developed franchises \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful lives		11 years
Trade names and other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	90	$ 80
Accumulated amortization	(81)	(66)
Net carrying amount	$ 9	$ 14
Trade names and other \| Minimum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	1 year	1 year
Trade names and other \| Maximum
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated useful lives	10 years	10 years

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

10. Fair Value Measurements

The Financial Accounting Standards Board 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, 2022 Using
	As of December 31, 2022		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	$	6,639	$	6,639	$	—	$	—	Cash and cash equivalents


Equity securities	49		49		—		—		Other current assets
Foreign currency forward contracts designated as hedges	6		—		6		—		Other current assets

Total	$	6,694	$	6,688	$	6	$	—

Financial Liabilities:

Foreign currency forward contracts designated as hedges	$	(6)	$	—	$	(6)	$	—	Accrued expenses and other liabilities


			Fair Value Measurements at December 31, 2021 Using
	As of December 31, 2021		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	$	10,035	$	10,035	$	—	$	—	Cash and cash equivalents
Available-for-sale foreign government treasury bills	34		34		—		—		Cash and cash equivalents
Available-for-sale U.S. treasuries and government agency securities	130		130		—		—		Other current assets
Equity securities	50		50		—		—		Other current assets
Foreign currency forward contracts designated as hedges	20		—		20		—		Other current assets

Total	$	10,269	$	10,249	$	20	$	—

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, which generally had remaining maturities of 12 months or less as of December 31, 2022, are as follows (amounts in millions):


	As of December 31, 2022				As of December 31, 2021
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell EUR	$	509	$	—	$	382	$	20

The amounts 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,
	2022		2021		2020		Statement of Operations Classification
Cash Flow Hedges	$	53	$	(9)	$	(3)	Net revenues

- 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

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Los Angeles, California
Auditor Firm ID	238

Software Development (Details) - USD ($) $ in Millions	12 Months Ended
Software Development (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Software development:
Software development costs	$ 1,300	$ 660
Amortization:
Amortization of capitalized software development costs	$ 236	$ 341	$ 263

Leases - Narrative (Details)	Dec. 31, 2022
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Renewal term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	7 years
Renewal term	5 years

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

22. 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. Additionally, we also enter into arrangements in which we commit to spend specified amounts for marketing to support and promote our content and services. Assuming all contractual provisions are met, the total future minimum commitments for these and other contractual arrangements in place at December 31, 2022, 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,
2023	$	91	$	184	$	85	$	105	$	465
2024	71		27		—		105		203
2025	47		12		—		105		164
2026	25		—		—		955		980
2027	20		—		—		469		489
Thereafter	7		—		—		3,633		3,640
Total	$	261	$	223	$	85	$	5,372	$	5,941

Legal Proceedings

We are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including with respect to intellectual property rights, contractual claims, labor and employment matters, regulatory matters, tax matters, unclaimed property matters, compliance matters, and collection matters. In the opinion of management, 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. We are also party to the proceedings set forth below.

EEOC Settlement

In September 2021, the Company entered into a proposed consent decree with the U.S. Equal Employment Opportunity Commission (the “EEOC”) to settle claims regarding certain employment practices. The consent decree was approved by the United States District Court, Central District of California on March 29, 2022. The consent decree, among other things, provides for the creation of an $18 million settlement fund for eligible claimants; upgrading Company policies, practices, and training to further prevent and eliminate harassment and discrimination in its workplaces, including implementing an expanded performance review system with a new equal opportunity focus; and providing ongoing oversight and review of the Company’s training programs, investigation policies, disciplinary framework and compliance by appointing a third-party equal opportunity consultant for the next three years whose findings will be regularly reported to the EEOC and shared with our Board of Directors.

The California Civil Rights Department (formerly known as the Department of Fair Employment and Housing) (the “CRD”) filed a motion to intervene in the matter, seeking to object to the consent decree, including the amount of the settlement fund; that motion was denied. The CRD filed a notice of appeal of the order denying the CRD’s motion to intervene. The CRD filed its opening brief for its appeal of the Court’s order denying its motion to intervene with the United States Court of Appeals for the Ninth Circuit on May 18, 2022. On April 19, 2022, the CRD filed a second motion to intervene with the United States District Court. The CRD’s second motion to intervene was denied on June 3, 2022. On June 7, 2022, the CRD filed a notice of appeal of the order denying the CRD’s second motion to intervene with the United States Court of Appeals for the Ninth Circuit. On March 4, 2022, Jessica Gonzalez, a former Blizzard Entertainment employee, filed a motion to intervene with the United States District Court; it was denied on March 22, 2022. On May 23, 2022, Gonzalez filed a notice of appeal of the order denying her motion to intervene with the United States Court of Appeals for the Ninth Circuit. The CRD appeals and Gonzalez appeal are pending before the Ninth Circuit.

Pending Employment-Related Matters

On July 20, 2021, the CRD filed a complaint (the “CRD Matter”) in California Superior Court, County of Los Angeles against Activision Blizzard, Blizzard Entertainment and Activision Publishing (together, the “Defendants”) alleging violations of the California Fair Employment and Housing Act and the California Equal Pay Act. The CRD filed a First Amended Complaint in the CRD Matter on August 23, 2021. The Defendants moved to dismiss the First Amended Complaint; the motion was heard on February 15, 2022. The Defendants’ motion was denied in part and granted in part, and the CRD did not amend with respect to the granted portion. On May 6, 2022, Defendants moved for partial summary adjudication seeking to dismiss claims asserted under the Fair Employment & Housing Act, which the Court denied. Defendants filed a Petition for Peremptory Writ or Other Appropriate Relief regarding the Court’s denial of Defendants’ motion for partial summary adjudication, which was denied. Defendants appealed the denial of their writ to the California Supreme Court, which was denied. On October 27, 2022, the CRD filed a Motion for Summary Adjudication on certain of Defendants’ affirmative defenses with a hearing date scheduled for June 29, 2023. The February 27, 2023 trial date has been vacated and a new trial date will be set by the Court. In addition, in January 2022, the Company’s Board of Directors received notice of an investigation by the CRD and investigatory subpoenas; on February 8, 2023, the CRD issued a letter indicating that it had decided to close this matter.

On August 3, 2021, a putative class action was filed in the United States District Court, Central District of California, entitled Gary Cheng v. Activision Blizzard, Inc., et al., Case No. 2:21-cv-06240-PA-JEM. Plaintiffs assert claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), against the Company and five current or former officers. An amended complaint was filed on December 3, 2021, purportedly on behalf of a class of the Company’s shareholders who purchased stock between February 28, 2017 and November 16, 2021. In an order dated April 18, 2022, the Court granted defendants’ motion to dismiss the amended complaint with leave to amend. Plaintiffs filed a second amended complaint on May 18, 2022, on behalf of shareholders who purchased stock between November 8, 2018 and November 16, 2021, which defendants moved to dismiss on June 16, 2022. In an order dated August 30, 2022, the Court granted defendants’ motion to dismiss the second amended complaint with leave to amend. Plaintiff filed a third amended complaint on September 29, 2022. Defendants’ motion to dismiss the third amended complaint was filed October 31, 2022. In an order entered January 23, 2023, the Court granted defendants’ motion to dismiss the third amended complaint without leave to amend and on the same date entered judgment in accordance with that order.

Beginning on August 6, 2021, three putative shareholder derivative actions were filed in California Superior Court, County of Los Angeles, and those cases have now been consolidated in an action entitled York County on Behalf of County of York Retirement Fund v. Robert A. Kotick, et al., Case No. 21STCV28949. Another related putative shareholder derivative action, entitled Lesley Warren Savage v. Robert A. Kotick, et al., Case No. 22STCV17478, was filed in California Superior Court, County of Los Angeles on May 23, 2022. These related shareholder derivative actions in California Superior Court are currently stayed. On November 15, 2021, a putative shareholder derivative action was filed in the United States District Court, Central District of California, entitled Luke Kahnert v. Robert A. Kotick, et al., Case No. 2:21-cv-08968-PA-JEM. The putative derivative actions collectively assert claims on the Company’s behalf against a number of current or former officers, employees and directors for breach of fiduciary duty, corporate waste, unjust enrichment, misappropriation, contribution, and alleged violation of Section 14(a) of the Exchange Act based on allegations similar to those in the CRD Matter and in the securities class action. The Company is named as a nominal defendant. An amended complaint in the Kahnert case was filed on January 7, 2022 and, in an order dated May 20, 2022, the Court granted defendants’ motion to dismiss the amended complaint with leave to amend. Plaintiffs filed a second amended complaint on June 1, 2022 in the Kahnert case. In an order dated September 8, 2022, the Court granted defendants’ motion to dismiss the second amended complaint with leave to amend. Plaintiffs in the Kahnert case filed a third amended complaint on September 23, 2022. Defendants’ motion to dismiss the third amended complaint in the Kahnert case was filed October 24, 2022. In an order dated January 17, 2023, the Court granted defendants’ motion to dismiss the third amended complaint without leave to amend and on the same date entered judgment in accordance with that order.

On February 3, 2023, the Company settled the previously-disclosed investigation by the Securities and Exchange Commission related to the Company’s disclosures on employment matters and related issues without admitting or denying the SEC’s findings. As part of the settlement, the Company consented to the entry of an order finding violations of Exchange Act Rule 13a-15, requiring issuers to maintain effective disclosure controls and procedures, and Exchange Act Rule 21F-17(a), providing certain whistleblower protections. The order requires the Company to cease and desist from future violations of these provisions and to pay a $35 million civil monetary penalty.

We are unable to predict the impact of the above pending matters on our business, financial condition, results of operations, or liquidity at this time.

Legal Proceedings Regarding the Merger

Following the announcement of the proposed transaction with Microsoft, complaints were filed in the United States District Court for the Southern District of New York, the United States District Court for the Eastern District of New York, the United States District Court for the Central District of California, the United States District Court for the Eastern District of Pennsylvania and the United States District Court for the District of Delaware against the Company and its directors: Stein v. Activision Blizzard, Inc. et al., No. 1:22-cv-01560 (S.D.N.Y.); Perry v. Activision Blizzard, Inc. et al., No. 1:22-cv-02074 (S.D.N.Y.); Whitfield v. Activision Blizzard, Inc. et al., 2:22-cv-01182 (E.D.N.Y.); Lande v. Activision Blizzard, Inc. et al., No. 1:22-cv-01267 (E.D.N.Y.); Watson v. Activision Blizzard, Inc. et al., No. 2:22-cv-01268 (C.D. Cal.); Rubin v. Activision Blizzard, Inc. et al., No. 2:22-cv-01343 (C.D. Cal.); Baker v. Activision Blizzard, Inc. et al., No. 2:22-cv00875 (E.D. Pa.); and David v. Activision Blizzard, Inc. et al., No. 1:22-cv-00339 (D. Del.). The complaints each assert violations of Section 14(a) and Section 20(a) of the Exchange Act and allege that the preliminary proxy statement filed in connection with the proposed transaction between the Company and Microsoft omitted certain purportedly material information which rendered the preliminary proxy statement incomplete and misleading. Specifically, the complaints allege that the preliminary proxy statement failed to disclose material information regarding the sales process, the Company’s projections and the financial analyses of the Company’s financial advisor. The complaints sought, among other things, an order to enjoin the transaction unless additional disclosures were issued; and, if the transaction closes, damages. The Watson complaint also alleges that the Company’s directors entered into the transaction for self-interested reasons, including receipt of personal benefits in the transaction. All of the complaints have been voluntarily dismissed.

Following the announcement of the proposed transaction with Microsoft, the Company also received several demand letters from purported stockholders and two lawsuits, Sjunde AP-Fonden v. Activision Blizzard, Inc., No. 2022-0281-KSJM (Del. Ch.) and New York City Employees’ Retirement System et. al. v. Activision Blizzard, Inc., No. 2022-0365-KSJM (Del. Ch.) (together, the “220 Complaints”), for books and records pursuant to 8 Del. C. § 220. Among other things, the demand letters and the 220 Complaints seek to investigate purported breaches of fiduciary duty related to the proposed transaction with Microsoft. Specifically, the demands seek to investigate Mr. Kotick’s role in the proposed transaction with one of the demands alleging that Mr. Kotick’s position at the Company was at risk given workplace issues and he chose to pursue a transaction rather than resign. Such demand further alleges that Mr. Kotick agreed to a price range without authorization from our Board of Directors and that our Board of Directors allowed Mr. Kotick to control the transaction process. Such demand also alleges that the transaction price is inadequate because Microsoft’s opportunistic offer took advantage of the Company’s purportedly depressed stock price and that management may have attempted to validate the consideration through downward adjustments to the Company’s long-range plan.

On November 3, 2022 a lawsuit captioned, Sjunde AP-Fonden v. Activision Blizzard, Inc. et al., C.A. No. 2022-1001-CM (Del. Ch.) was filed under seal in the Court of Chancery of the State of Delaware on behalf of a class of stockholders of the Company. The complaint names the Company, our directors, Microsoft and Merger Sub as defendants. The complaint alleges that the director defendants breached their fiduciary duty in connection with the initiation, timing, negotiation, approval and disclosure of the Merger. The complaint also alleges that the Merger was not approved in compliance with the requirements of 8 Del. C. § 251, and seeks a declaration that the Merger would be invalid if consummated. The complaint also asserts a claim against Microsoft and Merger Sub for aiding and abetting the purported breaches of fiduciary duty and conspiring with the director defendants in those breaches. On January 25, 2023, an amended complaint was filed in the Sjunde AP-Fonden action.

On December 8, 2022, the United States Federal Trade Commission (“FTC”) issued an administrative complaint against the Company and Microsoft alleging that the Company and Microsoft executed the Merger Agreement in violation of Section 5 of the FTC Act, as amended, 15 U.S.C. § 45, which, if consummated, would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. § 18 and Section 5 of the FTC Act, as amended, 15 U.S.C. § 45. The Company filed an answer to the FTC’s administrative complaint on December 22, 2022, and thereafter filed an amended answer on January 4, 2023. The administrative trial is currently scheduled to take place before an FTC administrative law judge starting August 2, 2023.

We are unable to predict the impact of the above pending matters on our business, financial condition, results of operations, or liquidity at this time.

The Company has received voluntary requests for information from the SEC and a grand jury subpoena from the United States Department of Justice related to their respective investigations into trading by third parties—including persons known to the Company’s CEO—in securities prior to the announcement of the proposed transaction with Microsoft. The Company is fully cooperating with these investigations.

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, 2022, we did not have any letters of credit issued or outstanding under the Revolver.

Held-to-Maturity Investments - Summary of Debt Securities, Held-to-Maturity (Details) - U.S. treasuries and government agency securities $ in Millions	Dec. 31, 2022 USD ($)
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 4,932
Gross Unrealized Gains	1
Gross Unrealized losses	(3)
Estimated Fair Value (Level 1)	$ 4,930

Other (Income) Expense, Net (Tables)

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Schedule of Other (Income) Expense, Net

Other (income) expense, net is comprised of the following (amounts in millions):


	For the Years Ended December 31,
		2022		2021		2020
Interest income		$	(165)	$	(5)	$	(21)

Realized and unrealized loss (gain) on equity investment		1		(28)		(3)
Other (income) expense		(18)		20		12
Other (income) expense, net		$	(182)	$	(13)	$	(12)

Deferred Revenues	12 Months Ended
Deferred Revenues	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred Revenues	11. Deferred Revenues We record deferred revenues when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The aggregate of the current and non-current balances of deferred revenues as of December 31, 2022 and December 31, 2021, were $2.1 billion and $1.1 billion, respectively. For the year ended December 31, 2022, 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, which were in the ordinary course of business. During the years ended December 31, 2022, December 31, 2021, and December 31, 2020, $1.1 billion, $1.7 billion, and $1.3 billion, respectively, of revenues were recognized that were included in the deferred revenues balance at the beginning of the period. As of December 31, 2022, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations was $2.2 billion, which included our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $2.1 billion over the next 12 months, and the remainder thereafter. This balance did not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee or any estimated amounts of variable consideration that are subject to constraint in accordance with the revenue accounting standard.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Summary of Debt


				At December 31, 2022				At December 31, 2021
Unsecured Senior Notes	Interest Rate	Semi-Annual Interest Payments Due On	Maturity	Principal		Fair Value (Level 2)		Principal		Fair Value (Level 2)




2026 Notes	3.40%	Mar. 15 & Sept. 15	Sept. 2026	$	850	$	810	$	850	$	912
2027 Notes	3.40%	Jun. 15 & Dec. 15	Jun. 2027	400		378		400		430
2030 Notes	1.35%	Mar. 15 & Sept. 15	Sept. 2030	500		391		500		463
2047 Notes	4.50%	Jun. 15 & Dec. 15	Jun. 2047	400		353		400		480
2050 Notes	2.50%	Mar. 15 & Sept. 15	Sept. 2050	1,500		936		1,500		1,320
Total gross long-term debt				$	3,650			$	3,650
Unamortized discount and deferred financing costs				(39)				(42)
Total net carrying amount				$	3,611			$	3,608

Debt - Unsecured Senior Notes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total gross long-term debt	$ 3,650	$ 3,650
Unamortized discount and deferred financing costs	(39)	(42)
Total net carrying amount	$ 3,611	$ 3,608
Unsecured Notes \| 2026 Notes
Debt Instrument [Line Items]
Interest Rate	3.40%	3.40%
Total gross long-term debt	$ 850	$ 850
Unsecured Notes \| 2026 Notes \| Fair Value (Level 2)
Debt Instrument [Line Items]
Fair Value (Level 2)	$ 810	$ 912
Unsecured Notes \| 2027 Notes
Debt Instrument [Line Items]
Interest Rate	3.40%	3.40%
Total gross long-term debt	$ 400	$ 400
Unsecured Notes \| 2027 Notes \| Fair Value (Level 2)
Debt Instrument [Line Items]
Fair Value (Level 2)	$ 378	$ 430
Unsecured Notes \| 2030 Notes
Debt Instrument [Line Items]
Interest Rate	1.35%	1.35%
Total gross long-term debt	$ 500	$ 500
Unsecured Notes \| 2030 Notes \| Fair Value (Level 2)
Debt Instrument [Line Items]
Fair Value (Level 2)	$ 391	$ 463
Unsecured Notes \| 2047 Notes
Debt Instrument [Line Items]
Interest Rate	4.50%	4.50%
Total gross long-term debt	$ 400	$ 400
Unsecured Notes \| 2047 Notes \| Fair Value (Level 2)
Debt Instrument [Line Items]
Fair Value (Level 2)	$ 353	$ 480
Unsecured Notes \| 2050 Notes
Debt Instrument [Line Items]
Interest Rate	2.50%	2.50%
Total gross long-term debt	$ 1,500	$ 1,500
Unsecured Notes \| 2050 Notes \| Fair Value (Level 2)
Debt Instrument [Line Items]
Fair Value (Level 2)	$ 936	$ 1,320
Unsecured Notes \| The Notes
Debt Instrument [Line Items]
Redemption price percentage	101.00%
Unsecured Notes \| The Notes \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price percentage	100.00%

Other (Income) Expense, Net

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other (Income) Expense, Net

18. Other (Income) Expense, Net

Other (income) expense, net is comprised of the following (amounts in millions):


	For the Years Ended December 31,
		2022		2021		2020
Interest income		$	(165)	$	(5)	$	(21)

Realized and unrealized loss (gain) on equity investment		1		(28)		(3)
Other (income) expense		(18)		20		12
Other (income) expense, net		$	(182)	$	(13)	$	(12)

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized (in shares)	2,400,000,000	2,400,000,000
Common stock, shares issued (in shares)	1,212,894,055	1,207,729,623
Treasury stock, shares (in shares)	428,676,471	428,676,471

Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Cost of property and equipment	$ 991	$ 1,025
Less accumulated depreciation	(798)	(856)
Property and equipment, net	193	169
Depreciation expense	91	105	$ 117
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	3	4
Leasehold improvements
Property, Plant and Equipment [Line Items]
Cost of property and equipment	244	227
Computer and server equipment
Property, Plant and Equipment [Line Items]
Cost of property and equipment	653	703
Office furniture and other equipment
Property, Plant and Equipment [Line Items]
Cost of property and equipment	$ 90	$ 90

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

12 Months Ended

Dec. 31, 2022

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,
		2022		2021		2020
Numerator:
Consolidated net income		$	1,513	$	2,699	$	2,197




Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding		782		777		771
Effect of dilutive stock options and awards under the treasury stock method		7		7		7
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method		789		784		778

Basic earnings per common share		$	1.94	$	3.47	$	2.85
Diluted earnings per common share		$	1.92	$	3.44	$	2.82

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on a Recurring and/or Non-Recurring Basis


			Fair Value Measurements at December 31, 2022 Using
	As of December 31, 2022		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	$	6,639	$	6,639	$	—	$	—	Cash and cash equivalents


Equity securities	49		49		—		—		Other current assets
Foreign currency forward contracts designated as hedges	6		—		6		—		Other current assets

Total	$	6,694	$	6,688	$	6	$	—

Financial Liabilities:

Foreign currency forward contracts designated as hedges	$	(6)	$	—	$	(6)	$	—	Accrued expenses and other liabilities


			Fair Value Measurements at December 31, 2021 Using
	As of December 31, 2021		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	$	10,035	$	10,035	$	—	$	—	Cash and cash equivalents
Available-for-sale foreign government treasury bills	34		34		—		—		Cash and cash equivalents
Available-for-sale U.S. treasuries and government agency securities	130		130		—		—		Other current assets
Equity securities	50		50		—		—		Other current assets
Foreign currency forward contracts designated as hedges	20		—		20		—		Other current assets

Total	$	10,269	$	10,249	$	20	$	—

Schedule of Foreign Currency Forward Contracts

The total gross notional amounts and fair values of our Cash Flow Hedges, which generally had remaining maturities of 12 months or less as of December 31, 2022, are as follows (amounts in millions):


	As of December 31, 2022				As of December 31, 2021
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell EUR	$	509	$	—	$	382	$	20

Reclassification out of Accumulated Other Comprehensive Income


	For the Years Ended December 31,
	2022		2021		2020		Statement of Operations Classification
Cash Flow Hedges	$	53	$	(9)	$	(3)	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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959

+ Details

Description of Business - Merger Agreement (Details) $ / shares in Units, $ in Millions		12 Months Ended
	Jan. 18, 2022 USD ($) $ / shares	Dec. 31, 2022 segment $ / shares	Dec. 31, 2021 $ / shares
Business Acquisition [Line Items]
Common stock, par value (in dollars per share) \| $ / shares		$ 0.000001	$ 0.000001
Number of reportable segments \| segment		3
Activision Blizzard Inc.
Business Acquisition [Line Items]
Contract termination fee \| $	$ 2,270
Activision Blizzard Inc. \| Microsoft Corporation
Business Acquisition [Line Items]
Business acquisition, share price (in dollars per share) \| $ / shares	$ 95.00
Common stock, par value (in dollars per share) \| $ / shares	$ 0.000001
Termination fee, scenario one \| $	$ 2,500
Termination fee, scenario two \| $	$ 3,000

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 6,694	$ 10,269
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	6,688	10,249
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	6	20
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	6,639	10,035
Cash and cash equivalents \| Available-for-sale foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		34
Cash and cash equivalents \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	6,639	10,035
Cash and cash equivalents \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Available-for-sale foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		34
Cash and cash equivalents \| 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 \| Significant Other Observable Inputs (Level 2) \| Available-for-sale foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		0
Cash and cash equivalents \| 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 \| Significant Unobservable Inputs (Level 3) \| Available-for-sale foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value		0
Other current assets \| Available-for-sale 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		130
Other current assets \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	49	50
Other current assets \| Foreign currency forward contracts designated as hedges \| 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	6	20
Other current assets \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Available-for-sale 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		130
Other current assets \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	49	50
Other current assets \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign currency forward contracts designated as hedges \| 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	0
Other current assets \| Significant Other Observable Inputs (Level 2) \| Available-for-sale 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
Other current assets \| Significant Other Observable Inputs (Level 2) \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Significant Other Observable Inputs (Level 2) \| Foreign currency forward contracts designated as hedges \| 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	6	20
Other current assets \| Significant Unobservable Inputs (Level 3) \| Available-for-sale 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
Other current assets \| Significant Unobservable Inputs (Level 3) \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets \| Significant Unobservable Inputs (Level 3) \| Foreign currency forward contracts designated as hedges \| 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	$ 0
Accrued expenses and other liabilities \| Foreign currency forward contracts designated as hedges \| Foreign currency forward contracts designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	(6)
Accrued expenses and other liabilities \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Foreign currency forward contracts designated as hedges \| Foreign currency forward contracts designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	0
Accrued expenses and other liabilities \| Significant Other Observable Inputs (Level 2) \| Foreign currency forward contracts designated as hedges \| Foreign currency forward contracts designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	(6)
Accrued expenses and other liabilities \| Significant Unobservable Inputs (Level 3) \| Foreign currency forward contracts designated as hedges \| Foreign currency forward contracts designated as hedges
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	$ 0