0001628280-23-015712 | 10-Q | XBRL Viewer

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 9,236	$ 7,060
Held-to-maturity investments	3,280	4,932
Accounts receivable, net	764	1,204
Software development	715	640
Other current assets	524	633
Total current assets	14,519	14,469
Software development	622	641
Property and equipment, net	199	193
Deferred income taxes, net	1,180	1,201
Other assets	507	508
Intangible assets, net	437	442
Goodwill	9,929	9,929
Total assets	27,393	27,383
Current liabilities:
Accounts payable	177	324
Deferred revenues	1,653	2,088
Accrued expenses and other liabilities	987	1,143
Total current liabilities	2,817	3,555
Long-term debt, net	3,611	3,611
Deferred income taxes, net	32	158
Other liabilities	818	816
Total liabilities	7,278	8,140
Commitments and contingencies (Note 13)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,214,763,143 and 1,212,894,055 shares issued at March 31, 2023 and December 31, 2022, respectively	0	0
Additional paid-in capital	12,396	12,260
Less: Treasury stock, at cost, 428,676,471 shares at March 31, 2023 and December 31, 2022	(5,563)	(5,563)
Retained earnings	13,911	13,171
Accumulated other comprehensive loss	(629)	(625)
Total shareholders’ equity	20,115	19,243
Total liabilities and shareholders’ equity	$ 27,393	$ 27,383

Operating Segments and Geographic Regions (Tables)

3 Months Ended

Mar. 31, 2023

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):


	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	580	$	435	$	739	$	1,754
Intersegment net revenues (1)	—		8		—		8
Segment net revenues	$	580	$	443	$	739	$	1,762

Segment operating income	$	179	$	56	$	241	$	476

	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	453	$	265	$	682	$	1,400
Intersegment net revenues (1)	—		9		—		9
Segment net revenues	$	453	$	274	$	682	$	1,409

Segment operating income	$	59	$	53	$	243	$	355

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

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


	Three Months Ended March 31,
		2023		2022
Reconciliation to consolidated net revenues:
Segment net revenues		$	1,762	$	1,409
Revenues from non-reportable segments (1)		101		81
Net effect from recognition (deferral) of deferred net revenues (2)		528		287
Elimination of intersegment revenues (3)		(8)		(9)
Consolidated net revenues		$	2,383	$	1,768

Reconciliation to consolidated income before income tax expense:
Segment operating income		$	476	$	355
Operating income (loss) from non-reportable segments (1)		6		19
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)		471		235
Share-based compensation expense (4)		(124)		(98)
Amortization of intangible assets (5)		(4)		(2)
Restructuring and related costs (6)		—		2
Partnership wind down and related costs (7)		(4)		—
Merger and acquisition-related fees and other expenses (8)		(21)		(32)

Consolidated operating income		800		479
Interest expense from debt		27		27
Other (income) expense, net		(122)		(13)

Consolidated income before income tax expense		$	895	$	465

(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.

(7)Reflects expenses related to the wind down of our partnership with NetEase, Inc. 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):



	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	902	$	525	$	738	$	—	$	(8)	$	2,157
Retail channels	102		2		—		—		—		104
Other (2)	6		4		—		112		—		122
Total consolidated net revenues	$	1,010	$	531	$	738	$	112	$	(8)	$	2,383

Change in deferred revenues:
Digital online channels (1)	$	(362)	$	(87)	$	1	$	—	$	—	$	(448)
Retail channels	(68)		(1)		—		—		—		(69)
Other (2)	—		—		—		(11)		—		(11)
Total change in deferred revenues	$	(430)	$	(88)	$	1	$	(11)	$	—	$	(528)

Segment net revenues:
Digital online channels (1)	$	540	$	438	$	739	$	—	$	(8)	$	1,709
Retail channels	34		1		—		—		—		35
Other (2)	6		4		—		101		—		111
Total segment net revenues	$	580	$	443	$	739	$	101	$	(8)	$	1,855



	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	616	$	300	$	682	$	—	$	(9)	$	1,589
Retail channels	83		2		—		—		—		85
Other (2)	11		2		—		81		—		94
Total consolidated net revenues	$	710	$	304	$	682	$	81	$	(9)	$	1,768

Change in deferred revenues:
Digital online channels (1)	$	(192)	$	(30)	$	—	$	—	$	—	$	(222)
Retail channels	(65)		1		—		—		—		(64)
Other (2)	—		(1)		—		—		—		(1)
Total change in deferred revenues	$	(257)	$	(30)	$	—	$	—	$	—	$	(287)

Segment net revenues:
Digital online channels (1)	$	424	$	270	$	682	$	—	$	(9)	$	1,367
Retail channels	18		3		—		—		—		21
Other (2)	11		1		—		81		—		93
Total segment net revenues	$	453	$	274	$	682	$	81	$	(9)	$	1,481

(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

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



	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	652	$	257	$	473	$	1	$	(5)	$	1,378
EMEA (1)	256		153		181		111		(2)		699
Asia Pacific	102		121		84		—		(1)		306
Total consolidated net revenues	$	1,010	$	531	$	738	$	112	$	(8)	$	2,383

Change in deferred revenues:
Americas	$	(280)	$	(44)	$	1	$	—	$	—	$	(323)
EMEA (1)	(125)		(28)		—		(11)		—		(164)
Asia Pacific	(25)		(16)		—		—		—		(41)
Total change in deferred revenues	$	(430)	$	(88)	$	1	$	(11)	$	—	$	(528)

Segment net revenues:
Americas	$	372	$	213	$	474	$	1	$	(5)	$	1,055
EMEA (1)	131		125		181		100		(2)		535
Asia Pacific	77		105		84		—		(1)		265
Total segment net revenues	$	580	$	443	$	739	$	101	$	(8)	$	1,855



	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	460	$	125	$	437	$	—	$	(6)	$	1,016
EMEA (1)	184		94		170		81		(2)		527
Asia Pacific	66		85		75		—		(1)		225
Total consolidated net revenues	$	710	$	304	$	682	$	81	$	(9)	$	1,768

Change in deferred revenues:
Americas	$	(164)	$	(11)	$	1	$	—	$	—	$	(174)
EMEA (1)	(80)		(13)		—		—		—		(93)
Asia Pacific	(13)		(6)		(1)		—		—		(20)
Total change in deferred revenues	$	(257)	$	(30)	$	—	$	—	$	—	$	(287)

Segment net revenues:
Americas	$	296	$	114	$	438	$	—	$	(6)	$	842
EMEA (1)	104		81		170		81		(2)		434
Asia Pacific	53		79		74		—		(1)		205
Total segment net revenues	$	453	$	274	$	682	$	81	$	(9)	$	1,481

(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):



	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	597	$	42	$	—	$	—	$	—	$	639
PC	270		386		18		—		(8)		666
Mobile and ancillary (1)	137		99		720		—		—		956
Other (2)	6		4		—		112		—		122
Total consolidated net revenues	$	1,010	$	531	$	738	$	112	$	(8)	$	2,383

Change in deferred revenues:
Console	$	(278)	$	(4)	$	—	$	—	$	—	$	(282)
PC	(151)		(52)		—		—		—		(203)
Mobile and ancillary (1)	(1)		(32)		1		—		—		(32)
Other (2)	—		—		—		(11)		—		(11)
Total change in deferred revenues	$	(430)	$	(88)	$	1	$	(11)	$	—	$	(528)

Segment net revenues:
Console	$	319	$	38	$	—	$	—	$	—	$	357
PC	119		334		18		—		(8)		463
Mobile and ancillary (1)	136		67		721		—		—		924
Other (2)	6		4		—		101		—		111
Total segment net revenues	$	580	$	443	$	739	$	101	$	(8)	$	1,855



	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	460	$	24	$	—	$	—	$	—	$	484
PC	124		251		17		—		(9)		383
Mobile and ancillary (1)	115		27		665		—		—		807
Other (2)	11		2		—		81		—		94
Total consolidated net revenues	$	710	$	304	$	682	$	81	$	(9)	$	1,768

Change in deferred revenues:
Console	$	(216)	$	(5)	$	—	$	—	$	—	$	(221)
PC	(62)		(18)		—		—		—		(80)
Mobile and ancillary (1)	21		(6)		—		—		—		15
Other (2)	—		(1)		—		—		—		(1)
Total change in deferred revenues	$	(257)	$	(30)	$	—	$	—	$	—	$	(287)

Segment net revenues:
Console	$	244	$	19	$	—	$	—	$	—	$	263
PC	62		233		17		—		(9)		303
Mobile and ancillary (1)	136		21		665		—		—		822
Other (2)	11		1		—		81		—		93
Total segment net revenues	$	453	$	274	$	682	$	81	$	(9)	$	1,481

(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 March 31, 2023		At December 31, 2022
Long-lived assets* by geographic region:
Americas	$	289	$	279
EMEA	102		103
Asia Pacific	21		21
Total long-lived assets by geographic region	$	412	$	403

* 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.

Operating Segments and Geographic Regions - Additional Information (Details) - segment	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Number of reportable segments	3
US \| Revenues \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration risk	51.00%	51.00%
UK \| Revenues \| Geographic Concentration Risk
Segment Reporting Information [Line Items]
Percentage of concentration risk	10.00%	10.00%

Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 19,243	$ 17,599
Other comprehensive income (loss) before reclassifications	7	4
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(11)	(12)
Ending balance	20,115	17,831
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(636)	(606)
Other comprehensive income (loss) before reclassifications	7	(4)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	0
Ending balance	(629)	(610)
Unrealized gain (loss) on available-for- sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance		3
Other comprehensive income (loss) before reclassifications		2
Amounts reclassified from accumulated other comprehensive income (loss) into earnings		(1)
Ending balance		4
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	11	25
Other comprehensive income (loss) before reclassifications	0	6
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	(11)	(11)
Ending balance	0	20
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(625)	(578)
Ending balance	$ (629)	$ (586)

- 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
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-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
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-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
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-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

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		786,158,727
Entity Central Index Key	0000718877
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net revenues
Total net revenues	$ 2,383	$ 1,768
Cost of Revenue-product sales and in-game, subscription, and other:
Product development	402	346
Sales and marketing	278	252
General and administrative	238	212
Total costs and expenses	1,583	1,289
Operating income	800	479
Interest expense from debt	27	27
Other (income) expense, net (Note 10)	(122)	(13)
Income before income tax expense	895	465
Income tax expense	155	70
Net income	$ 740	$ 395
Earnings per common share
Basic (in dollars per share)	$ 0.94	$ 0.51
Diluted (in dollars per share)	$ 0.93	$ 0.50
Weighted-average number of shares outstanding
Basic (in shares)	785	780
Diluted (in shares)	792	786
Product sales
Net revenues
Total net revenues	$ 695	$ 386
Product costs
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	136	91
Software royalties and amortization
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	101	81
In-game, subscription, and other revenues
Net revenues
Total net revenues	1,688	1,382
Game operations and distribution costs
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	363	288
Software royalties and amortization
Cost of Revenue-product sales and in-game, subscription, and other:
Cost of revenues	$ 65	$ 19

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax expense	$ 155	$ 70
Effective income tax rate reconciliation, percent	17.00%	15.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Share-Based Payments (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

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, 2022	7,861	$	58.85
Granted	—	—
Exercised	(262)	51.98
Forfeited	(89)	88.68
Expired	(25)	77.01
Outstanding stock options at March 31, 2023	7,485	$	58.68	5.57	$	206
Vested and expected to vest at March 31, 2023	7,415	$	58.41	5.55	$	206
Exercisable at March 31, 2023	6,656	$	55.41	5.30	$	203

Schedule of Restricted Stock Units Activity

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, 2022	13,754	$	74.53
Granted	1,667	78.73
Vested	(2,796)	77.40
Forfeited	(394)	78.39
Unvested RSUs at March 31, 2023	12,231	$	74.33

Share-Based Payments - Restricted Stock Units and Restricted Stock Awards Activities (Details) - Restricted Stock Units (RSUs) shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Restricted stock rights activity
Restricted stock rights at the beginning of the period (in shares) \| shares	13,754
Restricted stock rights, granted (in shares) \| shares	1,667
Restricted stock rights, vested (in shares) \| shares	(2,796)
Restricted stock rights, forfeited (in shares) \| shares	(394)
Restricted stock rights at the end of the period (in shares) \| shares	12,231
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	$ 74.53
Restricted stock rights, weighted-average grant date fair value, granted (in dollars per share) \| $ / shares	78.73
Restricted stock rights, weighted-average grant date fair value, vested (in dollars per share) \| $ / shares	77.40
Restricted stock rights, weighted-average grant date fair value, forfeited (in dollars per share) \| $ / shares	78.39
Restricted stock rights, weighted-average grant date fair value at the end of the period (in dollars per share) \| $ / shares	$ 74.33

Deferred Revenues - Remaining Performance Obligation (Details) $ in Billions	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 1.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue from Contract with Customer [Abstract]
Contracted not recognized revenue	$ 1.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contracted not recognized revenue, period	12 months

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

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

Accumulated Other Comprehensive Income (Loss)

7. Accumulated Other Comprehensive Income (Loss)

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


	For the Three Months Ended March 31, 2023
	Foreign currency translation adjustments		Unrealized gain (loss) on forward contracts		Total
Balance at December 31, 2022	$	(636)	$	11	$	(625)
Other comprehensive income (loss) before reclassifications	7		—		7
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		(11)		(11)
Balance at March 31, 2023	$	(629)	$	—	$	(629)


	For the Three Months Ended March 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	(4)		2		6		4
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		(1)		(11)		(12)
Balance at March 31, 2022	$	(610)	$	4	$	20	$	(586)

Software Development (Tables)

3 Months Ended

Mar. 31, 2023

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 Three Months Ended March 31,
		2023		2022
Amortization of capitalized software development costs		$	125	$	79

Held-to-Maturity Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Held-to-Maturity

The following tables summarizes the Company's held-to-maturity investments (amount in millions):


	At March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized losses		Estimated Fair Value (Level 1)
U.S. treasuries and government agency securities	$	3,280	$	—	$	(1)	$	3,279


	At December 31, 2022
	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

Debt - Unsecured Senior Notes (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total gross long-term debt	$ 3,650	$ 3,650
Unamortized discount and deferred financing costs	(39)	(39)
Total net carrying amount	$ 3,611	$ 3,611
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)	$ 823	$ 810
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)	$ 384	$ 378
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)	$ 406	$ 391
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)	$ 378	$ 353
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)	$ 1,009	$ 936

Commitments and Contingencies - Additional Information (Details) $ in Millions			1 Months Ended
	Feb. 03, 2023 USD ($)	Mar. 29, 2022 USD ($)	May 04, 2023 USD ($)
Subsequent Events
Loss Contingencies [Line Items]
Future minimum commitments			$ 1,400
Future minimum commitments, period			3 years
Subsequent Events \| Marketing
Loss Contingencies [Line Items]
Future minimum commitments, percentage			0.60
Subsequent Events \| Developer and Hosting
Loss Contingencies [Line Items]
Future minimum commitments, percentage			0.40
Settled Litigation \| EEOC Settlement
Loss Contingencies [Line Items]
Settlement fund for eligible claimants		$ 18
Settled Litigation \| Employment-Related Matters
Loss Contingencies [Line Items]
Settlement fund for eligible claimants	$ 35

Share-Based Payments

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Payments

9. Share-Based Payments

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, 2022	7,861	$	58.85
Granted	—	—
Exercised	(262)	51.98
Forfeited	(89)	88.68
Expired	(25)	77.01
Outstanding stock options at March 31, 2023	7,485	$	58.68	5.57	$	206
Vested and expected to vest at March 31, 2023	7,415	$	58.41	5.55	$	206
Exercisable at March 31, 2023	6,656	$	55.41	5.30	$	203

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.

Restricted Stock Units (“RSUs”) 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.


	Number of shares	Weighted- average grant date fair value per RSU
Unvested RSUs at December 31, 2022	13,754	$	74.53
Granted	1,667	78.73
Vested	(2,796)	77.40
Forfeited	(394)	78.39
Unvested RSUs at March 31, 2023	12,231	$	74.33

As of December 31, 2022 and 2021, we had recorded a share-based compensation liability related to compensation payments under our annual performance plans for 2022 and 2021, respectively, which the Company determined to settle certain amounts not yet paid in stock as opposed to cash. During the three months ended March 31, 2023 and 2022, we settled the respective share-based compensation liability by granting 1,188 thousand and 2,777 thousand RSUs, respectively, that vested during the first quarter shortly after grant. The number of shares issued was based on the Company’s closing stock price on the date of grant. The impact of this settlement was recorded in “Additional Paid-In-Capital” in our condensed consolidated statement of changes in shareholders’ equity for the three months ended March 31, 2023 and 2022.

At March 31, 2023, $405 million of total unrecognized compensation cost related to RSUs is expected to be recognized over a weighted-average period of 1.35 years.

Operating Segments and Geographic Regions

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Operating Segments and Geographic Regions

8. 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 and related costs; and certain other non-cash charges. The CODM does not review any information regarding total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto.

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

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


	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	580	$	435	$	739	$	1,754
Intersegment net revenues (1)	—		8		—		8
Segment net revenues	$	580	$	443	$	739	$	1,762

Segment operating income	$	179	$	56	$	241	$	476

	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	453	$	265	$	682	$	1,400
Intersegment net revenues (1)	—		9		—		9
Segment net revenues	$	453	$	274	$	682	$	1,409

Segment operating income	$	59	$	53	$	243	$	355

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


	Three Months Ended March 31,
		2023		2022
Reconciliation to consolidated net revenues:
Segment net revenues		$	1,762	$	1,409
Revenues from non-reportable segments (1)		101		81
Net effect from recognition (deferral) of deferred net revenues (2)		528		287
Elimination of intersegment revenues (3)		(8)		(9)
Consolidated net revenues		$	2,383	$	1,768

Reconciliation to consolidated income before income tax expense:
Segment operating income		$	476	$	355
Operating income (loss) from non-reportable segments (1)		6		19
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)		471		235
Share-based compensation expense (4)		(124)		(98)
Amortization of intangible assets (5)		(4)		(2)
Restructuring and related costs (6)		—		2
Partnership wind down and related costs (7)		(4)		—
Merger and acquisition-related fees and other expenses (8)		(21)		(32)

Consolidated operating income		800		479
Interest expense from debt		27		27
Other (income) expense, net		(122)		(13)

Consolidated income before income tax expense		$	895	$	465

(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.

(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):



	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	902	$	525	$	738	$	—	$	(8)	$	2,157
Retail channels	102		2		—		—		—		104
Other (2)	6		4		—		112		—		122
Total consolidated net revenues	$	1,010	$	531	$	738	$	112	$	(8)	$	2,383

Change in deferred revenues:
Digital online channels (1)	$	(362)	$	(87)	$	1	$	—	$	—	$	(448)
Retail channels	(68)		(1)		—		—		—		(69)
Other (2)	—		—		—		(11)		—		(11)
Total change in deferred revenues	$	(430)	$	(88)	$	1	$	(11)	$	—	$	(528)

Segment net revenues:
Digital online channels (1)	$	540	$	438	$	739	$	—	$	(8)	$	1,709
Retail channels	34		1		—		—		—		35
Other (2)	6		4		—		101		—		111
Total segment net revenues	$	580	$	443	$	739	$	101	$	(8)	$	1,855



	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	616	$	300	$	682	$	—	$	(9)	$	1,589
Retail channels	83		2		—		—		—		85
Other (2)	11		2		—		81		—		94
Total consolidated net revenues	$	710	$	304	$	682	$	81	$	(9)	$	1,768

Change in deferred revenues:
Digital online channels (1)	$	(192)	$	(30)	$	—	$	—	$	—	$	(222)
Retail channels	(65)		1		—		—		—		(64)
Other (2)	—		(1)		—		—		—		(1)
Total change in deferred revenues	$	(257)	$	(30)	$	—	$	—	$	—	$	(287)

Segment net revenues:
Digital online channels (1)	$	424	$	270	$	682	$	—	$	(9)	$	1,367
Retail channels	18		3		—		—		—		21
Other (2)	11		1		—		81		—		93
Total segment net revenues	$	453	$	274	$	682	$	81	$	(9)	$	1,481

(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.



	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	652	$	257	$	473	$	1	$	(5)	$	1,378
EMEA (1)	256		153		181		111		(2)		699
Asia Pacific	102		121		84		—		(1)		306
Total consolidated net revenues	$	1,010	$	531	$	738	$	112	$	(8)	$	2,383

Change in deferred revenues:
Americas	$	(280)	$	(44)	$	1	$	—	$	—	$	(323)
EMEA (1)	(125)		(28)		—		(11)		—		(164)
Asia Pacific	(25)		(16)		—		—		—		(41)
Total change in deferred revenues	$	(430)	$	(88)	$	1	$	(11)	$	—	$	(528)

Segment net revenues:
Americas	$	372	$	213	$	474	$	1	$	(5)	$	1,055
EMEA (1)	131		125		181		100		(2)		535
Asia Pacific	77		105		84		—		(1)		265
Total segment net revenues	$	580	$	443	$	739	$	101	$	(8)	$	1,855



	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	460	$	125	$	437	$	—	$	(6)	$	1,016
EMEA (1)	184		94		170		81		(2)		527
Asia Pacific	66		85		75		—		(1)		225
Total consolidated net revenues	$	710	$	304	$	682	$	81	$	(9)	$	1,768

Change in deferred revenues:
Americas	$	(164)	$	(11)	$	1	$	—	$	—	$	(174)
EMEA (1)	(80)		(13)		—		—		—		(93)
Asia Pacific	(13)		(6)		(1)		—		—		(20)
Total change in deferred revenues	$	(257)	$	(30)	$	—	$	—	$	—	$	(287)

Segment net revenues:
Americas	$	296	$	114	$	438	$	—	$	(6)	$	842
EMEA (1)	104		81		170		81		(2)		434
Asia Pacific	53		79		74		—		(1)		205
Total segment net revenues	$	453	$	274	$	682	$	81	$	(9)	$	1,481

(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. was 51% of consolidated net revenues for both the three months ended March 31, 2023 and 2022, respectively. The Company’s net revenues in the U.K. was 10% of consolidated net revenues for both the three months ended March 31, 2023 and 2022, respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for the three months ended March 31, 2023 or 2022.

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



	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	597	$	42	$	—	$	—	$	—	$	639
PC	270		386		18		—		(8)		666
Mobile and ancillary (1)	137		99		720		—		—		956
Other (2)	6		4		—		112		—		122
Total consolidated net revenues	$	1,010	$	531	$	738	$	112	$	(8)	$	2,383

Change in deferred revenues:
Console	$	(278)	$	(4)	$	—	$	—	$	—	$	(282)
PC	(151)		(52)		—		—		—		(203)
Mobile and ancillary (1)	(1)		(32)		1		—		—		(32)
Other (2)	—		—		—		(11)		—		(11)
Total change in deferred revenues	$	(430)	$	(88)	$	1	$	(11)	$	—	$	(528)

Segment net revenues:
Console	$	319	$	38	$	—	$	—	$	—	$	357
PC	119		334		18		—		(8)		463
Mobile and ancillary (1)	136		67		721		—		—		924
Other (2)	6		4		—		101		—		111
Total segment net revenues	$	580	$	443	$	739	$	101	$	(8)	$	1,855



	Three Months Ended March 31, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	460	$	24	$	—	$	—	$	—	$	484
PC	124		251		17		—		(9)		383
Mobile and ancillary (1)	115		27		665		—		—		807
Other (2)	11		2		—		81		—		94
Total consolidated net revenues	$	710	$	304	$	682	$	81	$	(9)	$	1,768

Change in deferred revenues:
Console	$	(216)	$	(5)	$	—	$	—	$	—	$	(221)
PC	(62)		(18)		—		—		—		(80)
Mobile and ancillary (1)	21		(6)		—		—		—		15
Other (2)	—		(1)		—		—		—		(1)
Total change in deferred revenues	$	(257)	$	(30)	$	—	$	—	$	—	$	(287)

Segment net revenues:
Console	$	244	$	19	$	—	$	—	$	—	$	263
PC	62		233		17		—		(9)		303
Mobile and ancillary (1)	136		21		665		—		—		822
Other (2)	11		1		—		81		—		93
Total segment net revenues	$	453	$	274	$	682	$	81	$	(9)	$	1,481

(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 March 31, 2023		At December 31, 2022
Long-lived assets* by geographic region:
Americas	$	289	$	279
EMEA	102		103
Asia Pacific	21		21
Total long-lived assets by geographic region	$	412	$	403

- 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
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Common stock, beginning balance (in shares) at Dec. 31, 2021		1,208
Treasury stock, beginning balance (in shares) at Dec. 31, 2021			(429)
Beginning balance at Dec. 31, 2021	$ 17,599	$ 0	$ (5,563)	$ 11,715	$ 12,025	$ (578)
Components of comprehensive income:
Net income	395				395
Other comprehensive income (loss)	(8)					(8)
Issuance of common stock pursuant to employee stock options (in shares)		0
Issuance of common stock pursuant to employee stock options	15			15
Issuance of common stock pursuant to restricted stock units (in shares)		4
Issuance of common stock pursuant to restricted stock units	0
Restricted stock surrendered for employees' tax liability (in shares)		(2)
Restricted stock surrendered for employees’ tax liability	(131)			(131)
Settlement of liability-classified awards in restricted stock units	204			204
Share-based compensation expense related to employee stock options and restricted stock units	124			124
Dividends	(367)				(367)
Common stock, ending balance (in shares) at Mar. 31, 2022		1,210
Treasury stock, ending balance (in shares) at Mar. 31, 2022			(429)
Ending balance at Mar. 31, 2022	17,831	$ 0	$ (5,563)	11,927	12,053	(586)
Common stock, beginning balance (in shares) at Dec. 31, 2022		1,213
Treasury stock, beginning balance (in shares) at Dec. 31, 2022			(429)
Beginning balance at Dec. 31, 2022	19,243	$ 0	$ (5,563)	12,260	13,171	(625)
Components of comprehensive income:
Net income	740				740
Other comprehensive income (loss)	(4)					(4)
Issuance of common stock pursuant to employee stock options (in shares)		0
Issuance of common stock pursuant to employee stock options	14			14
Issuance of common stock pursuant to restricted stock units (in shares)		3
Issuance of common stock pursuant to restricted stock units	0
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Restricted stock surrendered for employees’ tax liability	(92)			(92)
Settlement of liability-classified awards in restricted stock units	93			93
Share-based compensation expense related to employee stock options and restricted stock units	121			121
Common stock, ending balance (in shares) at Mar. 31, 2023		1,215
Treasury stock, ending balance (in shares) at Mar. 31, 2023			(429)
Ending balance at Mar. 31, 2023	$ 20,115	$ 0	$ (5,563)	$ 12,396	$ 13,911	$ (629)

Other (Income) Expense, Net (Tables)

3 Months Ended

Mar. 31, 2023

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 Three Months Ended March 31,
		2023		2022
Interest income		$	(126)	$	(1)

Realized and unrealized loss (gain) on equity investment		2		(11)
Other (income) expense		2		(1)
Other (income) expense, net		$	(122)	$	(13)

Held-to-Maturity Investments - Summary of Debt Securities, Held-to-Maturity (Details) - U.S. treasuries and government agency securities - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Schedule of Held-to-Maturity Securities [Line Items]
Amortized Cost	$ 3,280	$ 4,932
Gross Unrealized Gains	0	1
Gross Unrealized losses	(1)	(3)
Estimated Fair Value (Level 1)	$ 3,279	$ 4,930

Software Development (Details) - USD ($) $ in Millions	3 Months Ended
Software Development (Details) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Software development:
Software development costs	$ 1,300		$ 1,300
Amortization:
Amortization of capitalized software development costs	$ 125	$ 79

Held-to-Maturity Investments

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Held-to-Maturity Investments

2. Held-to-Maturity Investments

The following tables summarizes the Company's held-to-maturity investments (amount in millions):


	At March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized losses		Estimated Fair Value (Level 1)
U.S. treasuries and government agency securities	$	3,280	$	—	$	(1)	$	3,279


	At December 31, 2022
	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 March 31, 2023 and December 31, 2022, all contractual maturities of held-to-maturity investments were less than 12 months.

Share-Based Payments - Narrative (Details) - Restricted Stock Units (RSUs) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock rights, granted upon settlement (in shares)	1,188	2,777
Share-based compensation, unrecognized compensation	$ 405
Share-based compensation, unrecognized compensation weighted-average period of recognition	1 year 4 months 6 days

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	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Consolidated net income	$ 740	$ 395
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)	785	780
Effect of dilutive stock options and awards under the treasury stock method (in shares)	7	6
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method (in shares)	792	786
Basic earnings per common share (in dollars per share)	$ 0.94	$ 0.51
Diluted earnings per common share (in dollars per share)	$ 0.93	$ 0.50

- Definition

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

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+ Details

Operating Segments and Geographic Regions - Schedule of Net Revenues from External Customers by Geographic Region (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total net revenues	$ 2,383	$ 1,768
Net effect from recognition (deferral) of deferred net revenues	(528)	(287)
Segment net revenues	1,855	1,481
Americas
Segment Reporting Information [Line Items]
Total net revenues	1,378	1,016
Net effect from recognition (deferral) of deferred net revenues	(323)	(174)
Segment net revenues	1,055	842
EMEA
Segment Reporting Information [Line Items]
Total net revenues	699	527
Net effect from recognition (deferral) of deferred net revenues	(164)	(93)
Segment net revenues	535	434
Asia Pacific
Segment Reporting Information [Line Items]
Total net revenues	306	225
Net effect from recognition (deferral) of deferred net revenues	(41)	(20)
Segment net revenues	265	205
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	1,762	1,409
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Total net revenues	1,010	710
Net effect from recognition (deferral) of deferred net revenues	(430)	(257)
Segment net revenues	580	453
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	531	304
Net effect from recognition (deferral) of deferred net revenues	(88)	(30)
Segment net revenues	443	274
Reportable segments \| King
Segment Reporting Information [Line Items]
Total net revenues	738	682
Net effect from recognition (deferral) of deferred net revenues	1	0
Segment net revenues	739	682
Reportable segments \| Americas \| Activision
Segment Reporting Information [Line Items]
Total net revenues	652	460
Net effect from recognition (deferral) of deferred net revenues	(280)	(164)
Segment net revenues	372	296
Reportable segments \| Americas \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	257	125
Net effect from recognition (deferral) of deferred net revenues	(44)	(11)
Segment net revenues	213	114
Reportable segments \| Americas \| King
Segment Reporting Information [Line Items]
Total net revenues	473	437
Net effect from recognition (deferral) of deferred net revenues	1	1
Segment net revenues	474	438
Reportable segments \| EMEA \| Activision
Segment Reporting Information [Line Items]
Total net revenues	256	184
Net effect from recognition (deferral) of deferred net revenues	(125)	(80)
Segment net revenues	131	104
Reportable segments \| EMEA \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	153	94
Net effect from recognition (deferral) of deferred net revenues	(28)	(13)
Segment net revenues	125	81
Reportable segments \| EMEA \| King
Segment Reporting Information [Line Items]
Total net revenues	181	170
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	181	170
Reportable segments \| Asia Pacific \| Activision
Segment Reporting Information [Line Items]
Total net revenues	102	66
Net effect from recognition (deferral) of deferred net revenues	(25)	(13)
Segment net revenues	77	53
Reportable segments \| Asia Pacific \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	121	85
Net effect from recognition (deferral) of deferred net revenues	(16)	(6)
Segment net revenues	105	79
Reportable segments \| Asia Pacific \| King
Segment Reporting Information [Line Items]
Total net revenues	84	75
Net effect from recognition (deferral) of deferred net revenues	0	(1)
Segment net revenues	84	74
Non-reportable segments
Segment Reporting Information [Line Items]
Total net revenues	112	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Segment net revenues	101	81
Non-reportable segments \| Americas
Segment Reporting Information [Line Items]
Total net revenues	1	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	1	0
Non-reportable segments \| EMEA
Segment Reporting Information [Line Items]
Total net revenues	111	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Segment net revenues	100	81
Non-reportable segments \| Asia Pacific
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Total net revenues	(8)	(9)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(8)	(9)
Elimination of intersegment revenues \| Americas
Segment Reporting Information [Line Items]
Total net revenues	(5)	(6)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(5)	(6)
Elimination of intersegment revenues \| EMEA
Segment Reporting Information [Line Items]
Total net revenues	(2)	(2)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(2)	(2)
Elimination of intersegment revenues \| Asia Pacific
Segment Reporting Information [Line Items]
Total net revenues	(1)	(1)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	$ (1)	$ (1)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 740	$ 395
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	7	(4)
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	(11)	(5)
Unrealized gains (losses) on available-for-sale securities, net of tax	0	1
Total other comprehensive (loss) income	(4)	(8)
Comprehensive income	$ 736	$ 387

- 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

+ Details

- Definition

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

+ References

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+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Legal Proceedings We are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including with respect to intellectual property rights, contractual claims, labor and employment matters, regulatory matters, tax matters, unclaimed property matters, compliance matters, and collection matters. In the opinion of management, 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. Oral argument for the CRD appeals and Gonzalez appeal is scheduled for June 13, 2023. 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 June 29, 2023 hearing date was vacated and has not been reset. On October 28, 2022, the February 27, 2023 trial date was vacated and a new trial date will be set by the Court. Defendants were granted leave to file a cross complaint against various staffing agencies implicated in CRD’s complaint on January 20, 2023. On January 24, 2023, Cross-Defendants Creative Circle and Apex challenged the judicial assignment. On February 7, 2023, Defendants sought reassignment to the complex courts, which was denied on April 26, 2023. 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. Plaintiffs have filed an appeal in the United States Court of Appeals for the Ninth Circuit. 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. No appeal from the order and judgment was filed and the time for doing so has passed. 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. On February 3, 2023, the Company settled the previously-disclosed investigation by the SEC 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, which we have paid. 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. 2:22cv-00875 (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 with 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 Microsoft 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 March 24, 2023, Activision Blizzard filed a motion to stay the action, which will be heard on May 16, 2023. On May 1, 2023, Plaintiff filed a motion for limited expedited proceedings and a motion for a preliminary injunction to enjoin defendants from amending, extending or waiving the termination date until the purported 8 Del. C. § 251 issues are addressed. The motion for limited expedited proceedings will be heard on May 16, 2023. 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. On April 26, 2023, the United Kingdom Competition and Markets Authority ("CMA") announced a decision to block the merger, stating that competition concerns arose in relation to cloud gaming and that Microsoft’s remedies addressing any concerns in cloud gaming were not sufficient. Microsoft has announced its decision to appeal the CMA’s ruling, and Activision Blizzard intends to fully support Microsoft’s efforts on this appeal. 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 has fully cooperated with these investigations. Commitments and Obligations Subsequent to March 31, 2023, we entered into certain agreements under which we have future minimum commitments of approximately $1.4 billion. The commitments relate primarily to advertising and hosting services which comprise approximately 60% and 40%, respectively, of the total future minimum commitments. Payments of these commitments will be made over the next three years.

Deferred Revenues	3 Months Ended
Deferred Revenues	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Deferred Revenues	5. 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 March 31, 2023 and December 31, 2022, were $1.7 billion and $2.1 billion, respectively. For the three months ended March 31, 2023, 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 three months ended March 31, 2023 and March 31, 2022, $1.3 billion and $0.7 billion, respectively, of revenues were recognized that were included in the deferred revenues balance at the beginning of the period. As of March 31, 2023, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations was $1.8 billion, which included our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.8 billion over the next 12 months. 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

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+ Details

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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

The table below segregates all of our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions):


			Fair Value Measurements at March 31, 2023 Using
	As of March 31, 2023		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	$	8,888	$	8,888	$	—	$	—	Cash and cash equivalents


Equity securities	47		47		—		—		Other current assets
Foreign currency forward contracts designated as hedges	3		—		3		—		Other current assets

Total	$	8,938	$	8,935	$	3	$	—

Financial Liabilities:

Foreign currency forward contracts designated as hedges	$	(8)	$	—	$	(8)	$	—	Accrued expenses and other liabilities


			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

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 nine months or less as of March 31, 2023, are as follows (amounts in millions):


	As of March 31, 2023				As of December 31, 2022
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell EUR	$	475	$	(5)	$	509	$	—

- Definition

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

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+ Details

Operating Segments and Geographic Regions - Schedule of Net Revenues by Platform (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total net revenues	$ 2,383	$ 1,768
Net effect from recognition (deferral) of deferred net revenues	(528)	(287)
Segment net revenues	1,855	1,481
Console
Segment Reporting Information [Line Items]
Total net revenues	639	484
Net effect from recognition (deferral) of deferred net revenues	(282)	(221)
Segment net revenues	357	263
PC
Segment Reporting Information [Line Items]
Total net revenues	666	383
Net effect from recognition (deferral) of deferred net revenues	(203)	(80)
Segment net revenues	463	303
Mobile and ancillary
Segment Reporting Information [Line Items]
Total net revenues	956	807
Net effect from recognition (deferral) of deferred net revenues	(32)	15
Segment net revenues	924	822
Other
Segment Reporting Information [Line Items]
Total net revenues	122	94
Net effect from recognition (deferral) of deferred net revenues	(11)	(1)
Segment net revenues	111	93
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	1,762	1,409
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Total net revenues	1,010	710
Net effect from recognition (deferral) of deferred net revenues	(430)	(257)
Segment net revenues	580	453
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	531	304
Net effect from recognition (deferral) of deferred net revenues	(88)	(30)
Segment net revenues	443	274
Reportable segments \| King
Segment Reporting Information [Line Items]
Total net revenues	738	682
Net effect from recognition (deferral) of deferred net revenues	1	0
Segment net revenues	739	682
Reportable segments \| Console \| Activision
Segment Reporting Information [Line Items]
Total net revenues	597	460
Net effect from recognition (deferral) of deferred net revenues	(278)	(216)
Segment net revenues	319	244
Reportable segments \| Console \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	42	24
Net effect from recognition (deferral) of deferred net revenues	(4)	(5)
Segment net revenues	38	19
Reportable segments \| Console \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Reportable segments \| PC \| Activision
Segment Reporting Information [Line Items]
Total net revenues	270	124
Net effect from recognition (deferral) of deferred net revenues	(151)	(62)
Segment net revenues	119	62
Reportable segments \| PC \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	386	251
Net effect from recognition (deferral) of deferred net revenues	(52)	(18)
Segment net revenues	334	233
Reportable segments \| PC \| King
Segment Reporting Information [Line Items]
Total net revenues	18	17
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	18	17
Reportable segments \| Mobile and ancillary \| Activision
Segment Reporting Information [Line Items]
Total net revenues	137	115
Net effect from recognition (deferral) of deferred net revenues	(1)	21
Segment net revenues	136	136
Reportable segments \| Mobile and ancillary \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	99	27
Net effect from recognition (deferral) of deferred net revenues	(32)	(6)
Segment net revenues	67	21
Reportable segments \| Mobile and ancillary \| King
Segment Reporting Information [Line Items]
Total net revenues	720	665
Net effect from recognition (deferral) of deferred net revenues	1	0
Segment net revenues	721	665
Reportable segments \| Other \| Activision
Segment Reporting Information [Line Items]
Total net revenues	6	11
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	6	11
Reportable segments \| Other \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	4	2
Net effect from recognition (deferral) of deferred net revenues	0	(1)
Segment net revenues	4	1
Reportable segments \| Other \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments
Segment Reporting Information [Line Items]
Total net revenues	112	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Segment net revenues	101	81
Non-reportable segments \| Console
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments \| PC
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments \| Mobile and ancillary
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Total net revenues	112	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Segment net revenues	101	81
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Total net revenues	(8)	(9)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(8)	(9)
Elimination of intersegment revenues \| Console
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Elimination of intersegment revenues \| PC
Segment Reporting Information [Line Items]
Total net revenues	(8)	(9)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(8)	(9)
Elimination of intersegment revenues \| Mobile and ancillary
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	$ 0	$ 0

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

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Cash flows from operating activities:

Net income

$ 740

$ 395

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

Deferred income taxes

(100)

(64)

Non-cash operating lease cost

Depreciation and amortization

Amortization of capitalized software development costs

^[1]

102

Share-based compensation expense

^[2]

124

Other

(35)

(22)

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

Accounts receivable, net

443

440

Software development

(161)

(104)

Other assets

125

Deferred revenues

(447)

(278)

Accounts payable

(150)

(76)

Accrued expenses and other liabilities

(67)

Net cash provided by operating activities

577

642

Cash flows from investing activities:

Proceeds from maturities of available-for-sale investments

Proceeds from maturities of held-to-maturity investments

1,700

Capital expenditures

(37)

(15)

Net cash provided by investing activities

1,663

Cash flows from financing activities:

Proceeds from issuance of common stock to employees

(84)

(113)

Net cash used in financing activities

(71)

(97)

Effect of foreign exchange rate changes on cash and cash equivalents

(10)

Net increase in cash and cash equivalents and restricted cash

2,177

542

Cash and cash equivalents and restricted cash at beginning of period

7,086

10,438

Cash and cash equivalents and restricted cash at end of period

9,263

10,980

Supplemental cash flow information - Non-cash financing activities:

Dividends payable

$ 0

$ 367

[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.

Operating Segments and Geographic Regions - Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Long-lived assets	$ 412	$ 403
Americas
Segment Reporting Information [Line Items]
Long-lived assets	289	279
EMEA
Segment Reporting Information [Line Items]
Long-lived assets	102	103
Asia Pacific
Segment Reporting Information [Line Items]
Long-lived assets	$ 21	$ 21

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2022 $ / shares
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.47

Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Debt

6. Debt

Credit Facilities

As of March 31, 2023 and December 31, 2022, 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 March 31, 2023. The Revolver is scheduled to mature on August 24, 2023.

Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 202 2 for further details regarding the Credit Agreement and its key terms.

Unsecured Senior Notes

As of March 31, 2023 and December 31, 2022, 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 March 31, 2023				At December 31, 2022
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	$	823	$	850	$	810
2027 Notes	3.40%	Jun. 15 & Dec. 15	Jun. 2027	400		384		400		378
2030 Notes	1.35%	Mar. 15 & Sept. 15	Sept. 2030	500		406		500		391
2047 Notes	4.50%	Jun. 15 & Dec. 15	Jun. 2047	400		378		400		353
2050 Notes	2.50%	Mar. 15 & Sept. 15	Sept. 2050	1,500		1,009		1,500		936
Total gross long-term debt				$	3,650			$	3,650
Unamortized discount and deferred financing costs				(39)				(39)
Total net carrying amount				$	3,611			$	3,611

We were in compliance with the terms of the notes outstanding as of March 31, 2023. Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 20 22 for further details regarding key terms under our indentures that govern our outstanding notes.

- 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.

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+ Details

Other (Income) Expense, Net

3 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Other (Income) Expense, Net

10. Other (Income) Expense, Net

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


	For the Three Months Ended March 31,
		2023		2022
Interest income		$	(126)	$	(1)

Realized and unrealized loss (gain) on equity investment		2		(11)
Other (income) expense		2		(1)
Other (income) expense, net		$	(122)	$	(13)

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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)	1,214,763,143	1,212,894,055
Treasury stock, shares (in shares)	428,676,471	428,676,471

Description of Business and Basis of Consolidation and Presentation - Merger Agreement (Details) $ / shares in Units, $ in Millions		3 Months Ended
	Jan. 18, 2022 USD ($) $ / shares	Mar. 31, 2023 segment $ / shares	Dec. 31, 2022 $ / shares
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 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)	$ 95.00
Common stock, par value (in dollars per share)	$ 0.000001
Termination fee \| $	$ 3,000

Debt - Credit Facilities (Details) - Revolving Credit Facility - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,500,000,000	$ 1,500,000,000
Line of Credit \| Credit Agreement as Amended
Debt Instrument [Line Items]
Amount drawn on the revolver	$ 0

- Definition

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

+ References + Details

Operating Segments and Geographic Regions - Summary of Reportable Segment Net Revenues and Operating Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Segment net revenues	$ 1,855	$ 1,481
Segment operating income	800	479
Net effect from recognition (deferral) of deferred net revenues	(528)	(287)
Total net revenues	2,383	1,768
Interest expense from debt	27	27
Other (income) expense, net	(122)	(13)
Income before income tax expense	895	465
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	1,762	1,409
Segment operating income	476	355
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Segment net revenues	580	453
Segment operating income	179	59
Net effect from recognition (deferral) of deferred net revenues	(430)	(257)
Total net revenues	1,010	710
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues	443	274
Segment operating income	56	53
Net effect from recognition (deferral) of deferred net revenues	(88)	(30)
Total net revenues	531	304
Reportable segments \| King
Segment Reporting Information [Line Items]
Segment net revenues	739	682
Segment operating income	241	243
Net effect from recognition (deferral) of deferred net revenues	1	0
Total net revenues	738	682
Reportable segments \| Net revenues from external customers
Segment Reporting Information [Line Items]
Segment net revenues	1,754	1,400
Reportable segments \| Net revenues from external customers \| Activision
Segment Reporting Information [Line Items]
Segment net revenues	580	453
Reportable segments \| Net revenues from external customers \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues	435	265
Reportable segments \| Net revenues from external customers \| King
Segment Reporting Information [Line Items]
Segment net revenues	739	682
Reportable segments \| Intersegment net revenues
Segment Reporting Information [Line Items]
Segment net revenues	8	9
Reportable segments \| Intersegment net revenues \| Activision
Segment Reporting Information [Line Items]
Segment net revenues	0	0
Reportable segments \| Intersegment net revenues \| Blizzard
Segment Reporting Information [Line Items]
Segment net revenues	8	9
Reportable segments \| Intersegment net revenues \| King
Segment Reporting Information [Line Items]
Segment net revenues	0	0
Non-reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	101	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Total net revenues	112	81
Reconciliation items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues	528	287
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	471	235
Share-based compensation expense	(124)	(98)
Amortization of intangible assets	(4)	(2)
Restructuring and related costs	0	2
Partnership wind down and related costs	(4)	0
Merger and acquisition-related fees and other expenses	(21)	(32)
Reconciliation items \| Other segments
Segment Reporting Information [Line Items]
Segment operating income	6	19
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Segment net revenues	(8)	(9)
Net effect from recognition (deferral) of deferred net revenues	0	0
Total net revenues	$ (8)	$ (9)

Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Summary of Debt

As of March 31, 2023 and December 31, 2022, 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 March 31, 2023				At December 31, 2022
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	$	823	$	850	$	810
2027 Notes	3.40%	Jun. 15 & Dec. 15	Jun. 2027	400		384		400		378
2030 Notes	1.35%	Mar. 15 & Sept. 15	Sept. 2030	500		406		500		391
2047 Notes	4.50%	Jun. 15 & Dec. 15	Jun. 2047	400		378		400		353
2050 Notes	2.50%	Mar. 15 & Sept. 15	Sept. 2050	1,500		1,009		1,500		936
Total gross long-term debt				$	3,650			$	3,650
Unamortized discount and deferred financing costs				(39)				(39)
Total net carrying amount				$	3,611			$	3,611

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes We account for our provision for income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year. The provision for income taxes represents federal, foreign, state, and local income taxes. Our effective tax rate could be different from the statutory U.S. income tax rate due to: the effect of state and local income taxes; tax rates that apply to our foreign income (including U.S. tax on foreign income); research and development credits; and certain nondeductible expenses. Our effective tax rate could fluctuate significantly from quarter to quarter based on recurring and nonrecurring factors including, but not limited to: variations in the estimated and actual level of pre-tax income or loss by jurisdiction; changes in enacted tax laws and regulations, and interpretations thereof, including with respect to tax credits and state and local income taxes; developments in tax audits and other matters; recognition of excess tax benefits and tax deficiencies from share-based payments; and certain nondeductible expenses. Changes in judgment from the evaluation of new information resulting in the recognition, derecognition, or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of the change. The income tax expense of $155 million for the three months ended March 31, 2023, reflects an effective tax rate of 17%, which is higher than the effective tax rate of 15% for the three months ended March 31, 2022. Our tax rate in the current quarter is higher than in the prior year due to changes in the mix of our pre-tax income between countries and an increase in the U.K. corporate tax rate that became effective in 2023. The effective tax rate of 17% for the three months ended March 31, 2023, is lower than the U.S. statutory rate of 21%, primarily due to lower taxes on foreign earnings and U.S. research and development credits. 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. 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

Software Development

3 Months Ended

Mar. 31, 2023

Software Development Costs [Abstract]

Software Development

3. Software Development

Our total capitalized software development costs were $1.3 billion as of March 31, 2023 and December 31, 2022, respectively, and primarily relate to internal development costs.

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


	For the Three Months Ended March 31,
		2023		2022
Amortization of capitalized software development costs		$	125	$	79

Description of Business and Basis of Consolidation and Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Consolidation and Presentation	Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been condensed or omitted if they substantially duplicate the disclosures contained in our annual audited consolidated financial statements. Additionally, the year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. In the opinion of management, all adjustments considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP (consisting of normal recurring adjustments) have been included in the accompanying unaudited condensed consolidated financial statements. Actual results could differ from these estimates and assumptions. The accompanying condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated. Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation.

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

3 Months Ended

Mar. 31, 2023

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 Three Months Ended March 31,
		2023		2022
Numerator:
Consolidated net income		$	740	$	395




Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding		785		780
Effect of dilutive stock options and awards under the treasury stock method		7		6
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method		792		786

Basic earnings per common share		$	0.94	$	0.51
Diluted earnings per common share		$	0.93	$	0.50

Held-to-Maturity Investments - Additional Information (Details)	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Held-to-maturity investments, term	12 months

Share-Based Payments - Stock Option Activities (Details) - Stock Option Plan $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Stock option activity, shares
Stock options at the beginning of the period (in shares) \| shares	7,861
Stock options, granted (in shares) \| shares	0
Stock options, exercised (in shares) \| shares	(262)
Stock options, forfeited (in shares) \| shares	(89)
Stock options, expired (in shares) \| shares	(25)
Stock options at the end of the period (in shares) \| shares	7,485
Stock options, vested and expected to vest (in shares) \| shares	7,415
Stock options, exercisable (in shares) \| shares	6,656
Weighted-average exercise price per stock option
Stock options, weighted-average strike price at the beginning of the period (in dollars per share) \| $ / shares	$ 58.85
Stock options, weighted-average exercise price, granted (in dollars per share) \| $ / shares	0
Stock options, weighted-average exercise price, exercised (in dollars per share) \| $ / shares	51.98
Stock options, weighted-average exercise price, forfeited (in dollars per share) \| $ / shares	88.68
Stock options, weighted-average exercise price, expired (in dollars per share) \| $ / shares	77.01
Stock options, weighted-average strike price at the end of the period (in dollars per share) \| $ / shares	58.68
Stock options, weighted-average exercise price, vested and expected to vest (in dollars per share) \| $ / shares	58.41
Stock options, weighted-average exercise price, exercisable (in dollars per share) \| $ / shares	$ 55.41
Stock options, weighted-average remaining contractual term	5 years 6 months 25 days
Stock options, weighted-average remaining contractual term, vested and expected to vest	5 years 6 months 18 days
Stock options, weighted-average remaining contractual term, exercisable	5 years 3 months 18 days
Stock options, aggregate intrinsic value \| $	$ 206
Stock options, aggregate intrinsic value, vested and expected to vest \| $	206
Stock options, aggregate intrinsic value, exercisable \| $	$ 203

Fair Value Measurements - Foreign Currency Forward Contracts (Details) - Foreign currency forward contracts designated as hedges - Cash Flow Hedging - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Foreign currency forward contracts designated as hedges
Derivatives, Fair Value [Line Items]
Maximum length of time over which our foreign currency forward contracts mature	9 months
Buy USD, Sell EUR
Derivatives, Fair Value [Line Items]
Notional amount	$ 475	$ 509
Fair value gain (loss)	$ (5)	$ 0

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. 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


			Fair Value Measurements at March 31, 2023 Using
	As of March 31, 2023		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	$	8,888	$	8,888	$	—	$	—	Cash and cash equivalents


Equity securities	47		47		—		—		Other current assets
Foreign currency forward contracts designated as hedges	3		—		3		—		Other current assets

Total	$	8,938	$	8,935	$	3	$	—

Financial Liabilities:

Foreign currency forward contracts designated as hedges	$	(8)	$	—	$	(8)	$	—	Accrued expenses and other liabilities


			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

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 nine months or less as of March 31, 2023, are as follows (amounts in millions):


	As of March 31, 2023				As of December 31, 2022
	Notional amount		Fair value gain (loss)		Notional amount		Fair value gain (loss)
Foreign Currency:
Buy USD, Sell EUR	$	475	$	(5)	$	509	$	—

For the three months ended March 31, 2023 and 2022, 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 were not material.

- Definition

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

+ References + Details

Deferred Revenues (Details) - USD ($) $ in Billions	3 Months Ended
Deferred Revenues (Details) - USD ($) $ in Billions	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenues	$ 1.7		$ 2.1
Revenue recognized included in beginning deferred revenue	$ 1.3	$ 0.7

Description of Business and Basis of Consolidation and Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Consolidation and Presentation	1. Description of Business and Basis of Consolidation and Presentation Activision Blizzard, Inc. is a leading global developer and publisher of interactive entertainment content and services. We develop and distribute content and services on video game consoles, personal computers (“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. Pursuant to the terms of the Merger Agreement, our acquisition will be accomplished through the merger of Merger Sub with and into the Company (the “Merger”), with the Company surviving the Merger as 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. 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 $3.0 billion if the termination notice is provided at any time after April 18, 2023. For additional information related to the Merger Agreement, please refer to Part I Item 1 “Business” of our Annual Report on Form 10-K for the year ended December 31, 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. On December 8, 2022, the United States Federal Trade Commission (the “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. For more information regarding the FTC complaint regarding the pending Merger, see Note 13 of the condensed consolidated consolidated financial statements. On April 26, 2023, the United Kingdom Competition and Markets Authority ("CMA") announced a decision to block the Merger, stating that competition concerns arose in relation to cloud gaming and that Microsoft’s remedies addressing any concerns in cloud gaming were not sufficient. Microsoft has announced its decision to appeal the CMA’s ruling, and Activision Blizzard intends to fully support Microsoft’s efforts on this appeal. The parties continue to fully engage with other regulators reviewing the transaction to obtain required regulatory approvals. 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. Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the SEC and accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim reporting. Accordingly, certain notes or other information that are normally required by U.S. GAAP have been condensed or omitted if they substantially duplicate the disclosures contained in our annual audited consolidated financial statements. Additionally, the year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. In the opinion of management, all adjustments considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP (consisting of normal recurring adjustments) have been included in the accompanying unaudited condensed consolidated financial statements. Actual results could differ from these estimates and assumptions. The accompanying condensed consolidated financial statements include the accounts and operations of the Company. All intercompany accounts and transactions have been eliminated. Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the current year presentation.

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

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 Three Months Ended March 31, 2023
	Foreign currency translation adjustments		Unrealized gain (loss) on forward contracts		Total
Balance at December 31, 2022	$	(636)	$	11	$	(625)
Other comprehensive income (loss) before reclassifications	7		—		7
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		(11)		(11)
Balance at March 31, 2023	$	(629)	$	—	$	(629)


	For the Three Months Ended March 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	(4)		2		6		4
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		(1)		(11)		(12)
Balance at March 31, 2022	$	(610)	$	4	$	20	$	(586)

Operating Segments and Geographic Regions - Schedule of Net Revenues by Distribution Channels (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total net revenues	$ 2,383	$ 1,768
Net effect from recognition (deferral) of deferred net revenues	(528)	(287)
Segment net revenues	1,855	1,481
Digital online channels
Segment Reporting Information [Line Items]
Total net revenues	2,157	1,589
Net effect from recognition (deferral) of deferred net revenues	(448)	(222)
Segment net revenues	1,709	1,367
Retail channels
Segment Reporting Information [Line Items]
Total net revenues	104	85
Net effect from recognition (deferral) of deferred net revenues	(69)	(64)
Segment net revenues	35	21
Other
Segment Reporting Information [Line Items]
Total net revenues	122	94
Net effect from recognition (deferral) of deferred net revenues	(11)	(1)
Segment net revenues	111	93
Reportable segments
Segment Reporting Information [Line Items]
Segment net revenues	1,762	1,409
Reportable segments \| Activision
Segment Reporting Information [Line Items]
Total net revenues	1,010	710
Net effect from recognition (deferral) of deferred net revenues	(430)	(257)
Segment net revenues	580	453
Reportable segments \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	531	304
Net effect from recognition (deferral) of deferred net revenues	(88)	(30)
Segment net revenues	443	274
Reportable segments \| King
Segment Reporting Information [Line Items]
Total net revenues	738	682
Net effect from recognition (deferral) of deferred net revenues	1	0
Segment net revenues	739	682
Reportable segments \| Digital online channels \| Activision
Segment Reporting Information [Line Items]
Total net revenues	902	616
Net effect from recognition (deferral) of deferred net revenues	(362)	(192)
Segment net revenues	540	424
Reportable segments \| Digital online channels \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	525	300
Net effect from recognition (deferral) of deferred net revenues	(87)	(30)
Segment net revenues	438	270
Reportable segments \| Digital online channels \| King
Segment Reporting Information [Line Items]
Total net revenues	738	682
Net effect from recognition (deferral) of deferred net revenues	1	0
Segment net revenues	739	682
Reportable segments \| Retail channels \| Activision
Segment Reporting Information [Line Items]
Total net revenues	102	83
Net effect from recognition (deferral) of deferred net revenues	(68)	(65)
Segment net revenues	34	18
Reportable segments \| Retail channels \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	2	2
Net effect from recognition (deferral) of deferred net revenues	(1)	1
Segment net revenues	1	3
Reportable segments \| Retail channels \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Reportable segments \| Other \| Activision
Segment Reporting Information [Line Items]
Total net revenues	6	11
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	6	11
Reportable segments \| Other \| Blizzard
Segment Reporting Information [Line Items]
Total net revenues	4	2
Net effect from recognition (deferral) of deferred net revenues	0	(1)
Segment net revenues	4	1
Reportable segments \| Other \| King
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments
Segment Reporting Information [Line Items]
Total net revenues	112	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Segment net revenues	101	81
Non-reportable segments \| Digital online channels
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments \| Retail channels
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Non-reportable segments \| Other
Segment Reporting Information [Line Items]
Total net revenues	112	81
Net effect from recognition (deferral) of deferred net revenues	(11)	0
Segment net revenues	101	81
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Total net revenues	(8)	(9)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(8)	(9)
Elimination of intersegment revenues \| Digital online channels
Segment Reporting Information [Line Items]
Total net revenues	(8)	(9)
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	(8)	(9)
Elimination of intersegment revenues \| Retail channels
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	0	0
Elimination of intersegment revenues \| Other
Segment Reporting Information [Line Items]
Total net revenues	0	0
Net effect from recognition (deferral) of deferred net revenues	0	0
Segment net revenues	$ 0	$ 0

Computation of Basic/Diluted Earnings Per Common Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Computation of Basic/Diluted Earnings Per Common Share

12. Computation of Basic/Diluted Earnings Per Common Share

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


	For the Three Months Ended March 31,
		2023		2022
Numerator:
Consolidated net income		$	740	$	395




Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding		785		780
Effect of dilutive stock options and awards under the treasury stock method		7		6
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method		792		786

Basic earnings per common share		$	0.94	$	0.51
Diluted earnings per common share		$	0.93	$	0.50

Other (Income) Expense, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Other Income and Expenses [Abstract]
Interest income	$ (126)	$ (1)
Realized and unrealized loss (gain) on equity investment	2	(11)
Other (income) expense	2	(1)
Other (income) expense, net	$ (122)	$ (13)

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	$ 8,938	$ 6,694
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	8,935	6,688
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	3	6
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	8,888	6,639
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	8,888	6,639
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 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
Other current assets \| Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets at fair value	47	49
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	3	6
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	47	49
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) \| 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	3	6
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	(8)	(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	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	(8)	(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	$ 0