0000718877false2022Q312/3100007188772022-01-012022-09-3000007188772022-10-31xbrli:shares00007188772022-09-30iso4217:USD00007188772021-12-31iso4217:USDxbrli:shares0000718877us-gaap:ProductMember2022-07-012022-09-300000718877us-gaap:ProductMember2021-07-012021-09-300000718877us-gaap:ProductMember2022-01-012022-09-300000718877us-gaap:ProductMember2021-01-012021-09-300000718877atvi:InGameSubscriptionAndOtherMember2022-07-012022-09-300000718877atvi:InGameSubscriptionAndOtherMember2021-07-012021-09-300000718877atvi:InGameSubscriptionAndOtherMember2022-01-012022-09-300000718877atvi:InGameSubscriptionAndOtherMember2021-01-012021-09-3000007188772022-07-012022-09-3000007188772021-07-012021-09-3000007188772021-01-012021-09-300000718877atvi:ProductSalesProductCostsMember2022-07-012022-09-300000718877atvi:ProductSalesProductCostsMember2021-07-012021-09-300000718877atvi:ProductSalesProductCostsMember2022-01-012022-09-300000718877atvi:ProductSalesProductCostsMember2021-01-012021-09-300000718877atvi:ProductSalesSoftwareRoyaltiesAmortizationandIntellectualPropertyLicensesMember2022-07-012022-09-300000718877atvi:ProductSalesSoftwareRoyaltiesAmortizationandIntellectualPropertyLicensesMember2021-07-012021-09-300000718877atvi:ProductSalesSoftwareRoyaltiesAmortizationandIntellectualPropertyLicensesMember2022-01-012022-09-300000718877atvi:ProductSalesSoftwareRoyaltiesAmortizationandIntellectualPropertyLicensesMember2021-01-012021-09-300000718877atvi:InGameSubscriptionAndOtherGameOperationsAndDistributionMember2022-07-012022-09-300000718877atvi:InGameSubscriptionAndOtherGameOperationsAndDistributionMember2021-07-012021-09-300000718877atvi:InGameSubscriptionAndOtherGameOperationsAndDistributionMember2022-01-012022-09-300000718877atvi:InGameSubscriptionAndOtherGameOperationsAndDistributionMember2021-01-012021-09-300000718877atvi:InGameSubscriptionAndOtherSoftwareRoyaltiesAmortizationAndIntellectualPropertyLicensesMember2022-07-012022-09-300000718877atvi:InGameSubscriptionAndOtherSoftwareRoyaltiesAmortizationAndIntellectualPropertyLicensesMember2021-07-012021-09-300000718877atvi:InGameSubscriptionAndOtherSoftwareRoyaltiesAmortizationAndIntellectualPropertyLicensesMember2022-01-012022-09-300000718877atvi:InGameSubscriptionAndOtherSoftwareRoyaltiesAmortizationAndIntellectualPropertyLicensesMember2021-01-012021-09-3000007188772020-12-3100007188772021-09-300000718877us-gaap:CommonStockMember2021-12-310000718877us-gaap:TreasuryStockCommonMember2021-12-310000718877us-gaap:AdditionalPaidInCapitalMember2021-12-310000718877us-gaap:RetainedEarningsMember2021-12-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000718877us-gaap:RetainedEarningsMember2022-01-012022-03-3100007188772022-01-012022-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000718877us-gaap:CommonStockMember2022-01-012022-03-310000718877us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000718877us-gaap:CommonStockMember2022-03-310000718877us-gaap:TreasuryStockCommonMember2022-03-310000718877us-gaap:AdditionalPaidInCapitalMember2022-03-310000718877us-gaap:RetainedEarningsMember2022-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100007188772022-03-310000718877us-gaap:RetainedEarningsMember2022-04-012022-06-3000007188772022-04-012022-06-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000718877us-gaap:CommonStockMember2022-04-012022-06-300000718877us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000718877us-gaap:CommonStockMember2022-06-300000718877us-gaap:TreasuryStockCommonMember2022-06-300000718877us-gaap:AdditionalPaidInCapitalMember2022-06-300000718877us-gaap:RetainedEarningsMember2022-06-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000007188772022-06-300000718877us-gaap:RetainedEarningsMember2022-07-012022-09-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000718877us-gaap:CommonStockMember2022-07-012022-09-300000718877us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000718877us-gaap:CommonStockMember2022-09-300000718877us-gaap:TreasuryStockCommonMember2022-09-300000718877us-gaap:AdditionalPaidInCapitalMember2022-09-300000718877us-gaap:RetainedEarningsMember2022-09-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000718877us-gaap:CommonStockMember2020-12-310000718877us-gaap:TreasuryStockCommonMember2020-12-310000718877us-gaap:AdditionalPaidInCapitalMember2020-12-310000718877us-gaap:RetainedEarningsMember2020-12-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000718877us-gaap:RetainedEarningsMember2021-01-012021-03-3100007188772021-01-012021-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000718877us-gaap:CommonStockMember2021-01-012021-03-310000718877us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000718877us-gaap:CommonStockMember2021-03-310000718877us-gaap:TreasuryStockCommonMember2021-03-310000718877us-gaap:AdditionalPaidInCapitalMember2021-03-310000718877us-gaap:RetainedEarningsMember2021-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100007188772021-03-310000718877us-gaap:RetainedEarningsMember2021-04-012021-06-3000007188772021-04-012021-06-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000718877us-gaap:CommonStockMember2021-04-012021-06-300000718877us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000718877us-gaap:CommonStockMember2021-06-300000718877us-gaap:TreasuryStockCommonMember2021-06-300000718877us-gaap:AdditionalPaidInCapitalMember2021-06-300000718877us-gaap:RetainedEarningsMember2021-06-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000007188772021-06-300000718877us-gaap:RetainedEarningsMember2021-07-012021-09-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000718877us-gaap:CommonStockMember2021-07-012021-09-300000718877us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000718877us-gaap:CommonStockMember2021-09-300000718877us-gaap:TreasuryStockCommonMember2021-09-300000718877us-gaap:AdditionalPaidInCapitalMember2021-09-300000718877us-gaap:RetainedEarningsMember2021-09-300000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000718877atvi:MicrosoftMemberatvi:ActivisionBlizzardIncMember2022-01-18atvi:segment0000718877us-gaap:TradeNamesMembersrt:MinimumMember2022-01-012022-09-300000718877srt:MaximumMemberus-gaap:TradeNamesMember2022-01-012022-09-300000718877us-gaap:TradeNamesMember2022-09-300000718877us-gaap:TrademarksMember2022-09-300000718877us-gaap:TradeNamesMember2022-09-300000718877srt:MinimumMemberatvi:InternallyDevelopedFranchisesMember2021-01-012021-12-310000718877srt:MaximumMemberatvi:InternallyDevelopedFranchisesMember2021-01-012021-12-310000718877atvi:InternallyDevelopedFranchisesMember2021-12-310000718877us-gaap:TradeNamesMembersrt:MinimumMember2021-01-012021-12-310000718877srt:MaximumMemberus-gaap:TradeNamesMember2021-01-012021-12-310000718877us-gaap:TradeNamesMember2021-12-310000718877us-gaap:TrademarksMember2021-12-310000718877us-gaap:TradeNamesMember2021-12-310000718877atvi:ActivisionMember2021-12-310000718877atvi:BlizzardMember2021-12-310000718877atvi:KingDigitalEntertainmentMember2021-12-310000718877atvi:ActivisionMember2022-01-012022-09-300000718877atvi:BlizzardMember2022-01-012022-09-300000718877atvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877atvi:ActivisionMember2022-09-300000718877atvi:BlizzardMember2022-09-300000718877atvi:KingDigitalEntertainmentMember2022-09-300000718877atvi:ProletariatIncAndPeltarionABMember2022-06-012022-06-30atvi:business0000718877atvi:PeltarionABMember2022-06-30xbrli:pure0000718877atvi:ProletariatIncMember2022-06-300000718877us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2022-09-300000718877us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2022-09-300000718877us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2022-09-300000718877atvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2022-09-300000718877us-gaap:FairValueInputsLevel1Memberatvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2022-09-300000718877atvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:FairValueInputsLevel3Memberatvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2022-09-300000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2022-09-300000718877us-gaap:FairValueInputsLevel1Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2022-09-300000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2022-09-300000718877us-gaap:FairValueInputsLevel3Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2022-09-300000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberatvi:OtherCurrentAssetsAndOtherAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeForwardMemberatvi:OtherCurrentAssetsAndOtherAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberatvi:OtherCurrentAssetsAndOtherAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:FairValueInputsLevel3Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberatvi:OtherCurrentAssetsAndOtherAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300000718877us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-12-310000718877us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-12-310000718877us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-12-310000718877atvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-12-310000718877us-gaap:FairValueInputsLevel1Memberatvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-12-310000718877atvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:FairValueInputsLevel3Memberatvi:AvailableForSaleForeignGovernmentTreasuryBillsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashAndCashEquivalentsMember2021-12-310000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2021-12-310000718877us-gaap:FairValueInputsLevel1Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2021-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMember2021-12-310000718877us-gaap:FairValueInputsLevel3Memberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMember2021-12-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForeignExchangeForwardMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:FairValueInputsLevel3Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberus-gaap:OtherCurrentAssetsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2022-01-012022-09-300000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberatvi:BuyUSDSellEURMember2022-09-300000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberatvi:BuyUSDSellEURMember2021-12-310000718877us-gaap:USTreasuryAndGovernmentShorttermDebtSecuritiesMember2022-09-3000007188772022-10-012022-09-3000007188772023-10-012022-09-300000718877us-gaap:RevolvingCreditFacilityMember2021-12-310000718877us-gaap:RevolvingCreditFacilityMember2022-09-300000718877us-gaap:LineOfCreditMemberatvi:CreditAgreementasAmendedMemberus-gaap:RevolvingCreditFacilityMember2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2026NotesMember2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2026NotesMember2021-12-310000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2026NotesMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2026NotesMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877atvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMember2022-09-300000718877atvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMember2021-12-310000718877atvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877atvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877atvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMember2021-12-310000718877atvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMember2022-09-300000718877atvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877atvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2047NotesMember2021-12-310000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2047NotesMember2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2047NotesMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2047NotesMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2050NotesMember2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2050NotesMember2021-12-310000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2050NotesMemberus-gaap:FairValueInputsLevel2Member2022-09-300000718877us-gaap:UnsecuredDebtMemberatvi:Unsecured2050NotesMemberus-gaap:FairValueInputsLevel2Member2021-12-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-09-300000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-09-300000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300000718877us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300000718877us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-09-300000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-09-300000718877us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueExternalCustomersMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueExternalCustomersMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueIntersegmentMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueIntersegmentMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueExternalCustomersMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueExternalCustomersMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueIntersegmentMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueIntersegmentMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueExternalCustomersMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueExternalCustomersMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueIntersegmentMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueIntersegmentMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueExternalCustomersMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueExternalCustomersMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RevenueIntersegmentMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RevenueIntersegmentMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RevenueIntersegmentMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMember2021-01-012021-09-300000718877us-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877us-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877us-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877us-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877us-gaap:MaterialReconcilingItemsMember2022-07-012022-09-300000718877us-gaap:MaterialReconcilingItemsMember2021-07-012021-09-300000718877us-gaap:MaterialReconcilingItemsMember2022-01-012022-09-300000718877us-gaap:MaterialReconcilingItemsMember2021-01-012021-09-300000718877us-gaap:IntersegmentEliminationMember2022-07-012022-09-300000718877us-gaap:IntersegmentEliminationMember2021-07-012021-09-300000718877us-gaap:IntersegmentEliminationMember2022-01-012022-09-300000718877us-gaap:IntersegmentEliminationMember2021-01-012021-09-300000718877us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateAndOtherMember2022-07-012022-09-300000718877us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateAndOtherMember2021-07-012021-09-300000718877us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateAndOtherMember2022-01-012022-09-300000718877us-gaap:MaterialReconcilingItemsMemberus-gaap:CorporateAndOtherMember2021-01-012021-09-300000718877atvi:EmployeeMember2022-07-012022-09-300000718877atvi:EmployeeMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:ActivisionMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000718877atvi:DigitalOnlineChannelsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RetailChannelsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RetailChannelsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RetailChannelsMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:RetailChannelsMember2022-07-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:RetailChannelsMember2022-07-012022-09-300000718877atvi:RetailChannelsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:ActivisionMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000718877atvi:OtherDistributionChannelsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:ActivisionMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000718877atvi:DigitalOnlineChannelsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RetailChannelsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RetailChannelsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RetailChannelsMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:RetailChannelsMember2021-07-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:RetailChannelsMember2021-07-012021-09-300000718877atvi:RetailChannelsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:ActivisionMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000718877atvi:OtherDistributionChannelsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:ActivisionMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000718877atvi:DigitalOnlineChannelsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RetailChannelsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RetailChannelsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RetailChannelsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:RetailChannelsMember2022-01-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:RetailChannelsMember2022-01-012022-09-300000718877atvi:RetailChannelsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:ActivisionMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000718877atvi:OtherDistributionChannelsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:ActivisionMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:DigitalOnlineChannelsMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877atvi:DigitalOnlineChannelsMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000718877atvi:DigitalOnlineChannelsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:RetailChannelsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:RetailChannelsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:RetailChannelsMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:RetailChannelsMember2021-01-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:RetailChannelsMember2021-01-012021-09-300000718877atvi:RetailChannelsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:ActivisionMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:OtherDistributionChannelsMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877atvi:OtherDistributionChannelsMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000718877atvi:OtherDistributionChannelsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AmericasMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877srt:AmericasMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877srt:AmericasMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000718877srt:AmericasMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberus-gaap:EMEAMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877us-gaap:EMEAMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000718877us-gaap:EMEAMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AsiaPacificMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877srt:AsiaPacificMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877us-gaap:IntersegmentEliminationMembersrt:AsiaPacificMember2022-07-012022-09-300000718877srt:AsiaPacificMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AmericasMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877srt:AmericasMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877srt:AmericasMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000718877srt:AmericasMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberus-gaap:EMEAMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877us-gaap:EMEAMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000718877us-gaap:EMEAMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AsiaPacificMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877srt:AsiaPacificMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877us-gaap:IntersegmentEliminationMembersrt:AsiaPacificMember2021-07-012021-09-300000718877srt:AsiaPacificMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AmericasMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877srt:AmericasMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877srt:AmericasMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000718877srt:AmericasMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberus-gaap:EMEAMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877us-gaap:EMEAMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000718877us-gaap:EMEAMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AsiaPacificMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877srt:AsiaPacificMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877us-gaap:IntersegmentEliminationMembersrt:AsiaPacificMember2022-01-012022-09-300000718877srt:AsiaPacificMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AmericasMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AmericasMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877srt:AmericasMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877srt:AmericasMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000718877srt:AmericasMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberus-gaap:EMEAMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877us-gaap:EMEAMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000718877us-gaap:EMEAMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMembersrt:AsiaPacificMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877srt:AsiaPacificMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877us-gaap:IntersegmentEliminationMembersrt:AsiaPacificMember2021-01-012021-09-300000718877srt:AsiaPacificMember2021-01-012021-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-07-012022-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2021-07-012021-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:GB2022-07-012022-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:GB2021-07-012021-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-01-012022-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2021-01-012021-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:GB2022-01-012022-09-300000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:GB2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:ConsoleMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:ConsoleMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:ConsoleMember2022-07-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:ConsoleMember2022-07-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:ConsoleMember2022-07-012022-09-300000718877atvi:ConsoleMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:PCMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:BlizzardMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:KingDigitalEntertainmentMember2022-07-012022-09-300000718877atvi:PCMemberus-gaap:CorporateNonSegmentMember2022-07-012022-09-300000718877atvi:PCMemberus-gaap:IntersegmentEliminationMember2022-07-012022-09-300000718877atvi:PCMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:MobileAndAncillaryPlatformsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:MobileAndAncillaryPlatformsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:MobileAndAncillaryPlatformsMember2022-07-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:MobileAndAncillaryPlatformsMember2022-07-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:MobileAndAncillaryPlatformsMember2022-07-012022-09-300000718877atvi:MobileAndAncillaryPlatformsMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:OtherPlatformMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:OtherPlatformMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:OtherPlatformMember2022-07-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:OtherPlatformMember2022-07-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:OtherPlatformMember2022-07-012022-09-300000718877atvi:OtherPlatformMember2022-07-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:ConsoleMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:ConsoleMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:ConsoleMember2021-07-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:ConsoleMember2021-07-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:ConsoleMember2021-07-012021-09-300000718877atvi:ConsoleMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:PCMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:BlizzardMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:KingDigitalEntertainmentMember2021-07-012021-09-300000718877atvi:PCMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300000718877atvi:PCMemberus-gaap:IntersegmentEliminationMember2021-07-012021-09-300000718877atvi:PCMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:MobileAndAncillaryPlatformsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:MobileAndAncillaryPlatformsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:MobileAndAncillaryPlatformsMember2021-07-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:MobileAndAncillaryPlatformsMember2021-07-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:MobileAndAncillaryPlatformsMember2021-07-012021-09-300000718877atvi:MobileAndAncillaryPlatformsMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:OtherPlatformMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:OtherPlatformMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:OtherPlatformMember2021-07-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:OtherPlatformMember2021-07-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:OtherPlatformMember2021-07-012021-09-300000718877atvi:OtherPlatformMember2021-07-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:ConsoleMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:ConsoleMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:ConsoleMember2022-01-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:ConsoleMember2022-01-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:ConsoleMember2022-01-012022-09-300000718877atvi:ConsoleMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:PCMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:BlizzardMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:KingDigitalEntertainmentMember2022-01-012022-09-300000718877atvi:PCMemberus-gaap:CorporateNonSegmentMember2022-01-012022-09-300000718877atvi:PCMemberus-gaap:IntersegmentEliminationMember2022-01-012022-09-300000718877atvi:PCMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:MobileAndAncillaryPlatformsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:MobileAndAncillaryPlatformsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:MobileAndAncillaryPlatformsMember2022-01-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:MobileAndAncillaryPlatformsMember2022-01-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:MobileAndAncillaryPlatformsMember2022-01-012022-09-300000718877atvi:MobileAndAncillaryPlatformsMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:OtherPlatformMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:OtherPlatformMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:OtherPlatformMember2022-01-012022-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:OtherPlatformMember2022-01-012022-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:OtherPlatformMember2022-01-012022-09-300000718877atvi:OtherPlatformMember2022-01-012022-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:ConsoleMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:ConsoleMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:ConsoleMember2021-01-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:ConsoleMember2021-01-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:ConsoleMember2021-01-012021-09-300000718877atvi:ConsoleMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:PCMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:BlizzardMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:PCMemberatvi:KingDigitalEntertainmentMember2021-01-012021-09-300000718877atvi:PCMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300000718877atvi:PCMemberus-gaap:IntersegmentEliminationMember2021-01-012021-09-300000718877atvi:PCMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:MobileAndAncillaryPlatformsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:MobileAndAncillaryPlatformsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:MobileAndAncillaryPlatformsMember2021-01-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:MobileAndAncillaryPlatformsMember2021-01-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:MobileAndAncillaryPlatformsMember2021-01-012021-09-300000718877atvi:MobileAndAncillaryPlatformsMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:ActivisionMemberatvi:OtherPlatformMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:BlizzardMemberatvi:OtherPlatformMember2021-01-012021-09-300000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:OtherPlatformMember2021-01-012021-09-300000718877us-gaap:CorporateNonSegmentMemberatvi:OtherPlatformMember2021-01-012021-09-300000718877us-gaap:IntersegmentEliminationMemberatvi:OtherPlatformMember2021-01-012021-09-300000718877atvi:OtherPlatformMember2021-01-012021-09-300000718877srt:AmericasMember2022-09-300000718877srt:AmericasMember2021-12-310000718877us-gaap:EMEAMember2022-09-300000718877us-gaap:EMEAMember2021-12-310000718877srt:AsiaPacificMember2022-09-300000718877srt:AsiaPacificMember2021-12-310000718877us-gaap:EmployeeStockOptionMember2021-12-310000718877us-gaap:EmployeeStockOptionMember2022-01-012022-09-300000718877us-gaap:EmployeeStockOptionMember2022-09-300000718877us-gaap:RestrictedStockMember2021-12-310000718877us-gaap:RestrictedStockMember2022-01-012022-09-300000718877us-gaap:RestrictedStockMember2022-09-300000718877us-gaap:PerformanceSharesMember2022-09-300000718877us-gaap:PerformanceSharesMember2022-01-012022-09-300000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2021-12-310000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2021-12-310000718877atvi:RestructuringPlan2019Member2021-12-310000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2022-01-012022-03-310000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2022-01-012022-03-310000718877atvi:RestructuringPlan2019Member2022-01-012022-03-310000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2022-03-310000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2022-03-310000718877atvi:RestructuringPlan2019Member2022-03-310000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2022-04-012022-06-300000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2022-04-012022-06-300000718877atvi:RestructuringPlan2019Member2022-04-012022-06-300000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2022-06-300000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2022-06-300000718877atvi:RestructuringPlan2019Member2022-06-300000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2022-07-012022-09-300000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2022-07-012022-09-300000718877atvi:RestructuringPlan2019Member2022-07-012022-09-300000718877atvi:RestructuringPlan2019Memberus-gaap:EmployeeSeveranceMember2022-09-300000718877atvi:RestructuringPlan2019Memberus-gaap:OtherRestructuringMember2022-09-300000718877atvi:RestructuringPlan2019Member2022-09-300000718877us-gaap:StockOptionMember2022-07-012022-09-300000718877us-gaap:StockOptionMember2021-07-012021-09-300000718877us-gaap:StockOptionMember2022-01-012022-09-300000718877us-gaap:StockOptionMember2021-01-012021-09-3000007188772021-01-2700007188772022-02-032022-02-0300007188772022-05-062022-05-0600007188772021-02-042021-02-0400007188772021-05-062021-05-060000718877atvi:EEOCSettlementMemberus-gaap:SettledLitigationMember2022-03-292022-03-29

0000718877false2023Q112/3100007188772023-01-012023-03-3100007188772023-04-28xbrli:shares00007188772023-03-31iso4217:USD00007188772022-12-31iso4217:USDxbrli:shares0000718877us-gaap:ProductMember2023-01-012023-03-310000718877us-gaap:ProductMember2022-01-012022-03-310000718877atvi:InGameSubscriptionAndOtherMember2023-01-012023-03-310000718877atvi:InGameSubscriptionAndOtherMember2022-01-012022-03-3100007188772022-01-012022-03-310000718877atvi:ProductSalesProductCostsMember2023-01-012023-03-310000718877atvi:ProductSalesProductCostsMember2022-01-012022-03-310000718877atvi:ProductSalesSoftwareRoyaltiesAndAmortizationMember2023-01-012023-03-310000718877atvi:ProductSalesSoftwareRoyaltiesAndAmortizationMember2022-01-012022-03-310000718877atvi:InGameSubscriptionAndOtherGameOperationsAndDistributionMember2023-01-012023-03-310000718877atvi:InGameSubscriptionAndOtherGameOperationsAndDistributionMember2022-01-012022-03-310000718877atvi:InGameSubscriptionAndOtherSoftwareRoyaltiesAndAmortizationMember2023-01-012023-03-310000718877atvi:InGameSubscriptionAndOtherSoftwareRoyaltiesAndAmortizationMember2022-01-012022-03-3100007188772021-12-3100007188772022-03-310000718877us-gaap:CommonStockMember2022-12-310000718877us-gaap:TreasuryStockCommonMember2022-12-310000718877us-gaap:AdditionalPaidInCapitalMember2022-12-310000718877us-gaap:RetainedEarningsMember2022-12-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000718877us-gaap:RetainedEarningsMember2023-01-012023-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000718877us-gaap:CommonStockMember2023-01-012023-03-310000718877us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000718877us-gaap:CommonStockMember2023-03-310000718877us-gaap:TreasuryStockCommonMember2023-03-310000718877us-gaap:AdditionalPaidInCapitalMember2023-03-310000718877us-gaap:RetainedEarningsMember2023-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000718877us-gaap:CommonStockMember2021-12-310000718877us-gaap:TreasuryStockCommonMember2021-12-310000718877us-gaap:AdditionalPaidInCapitalMember2021-12-310000718877us-gaap:RetainedEarningsMember2021-12-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000718877us-gaap:RetainedEarningsMember2022-01-012022-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310000718877us-gaap:CommonStockMember2022-01-012022-03-310000718877us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000718877us-gaap:CommonStockMember2022-03-310000718877us-gaap:TreasuryStockCommonMember2022-03-310000718877us-gaap:AdditionalPaidInCapitalMember2022-03-310000718877us-gaap:RetainedEarningsMember2022-03-310000718877us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310000718877atvi:MicrosoftMemberatvi:ActivisionBlizzardIncMember2022-01-180000718877atvi:ActivisionBlizzardIncMember2022-01-182022-01-180000718877atvi:MicrosoftMemberatvi:ActivisionBlizzardIncMember2022-01-182022-01-18atvi:segment0000718877us-gaap:USTreasuryAndGovernmentShorttermDebtSecuritiesMember2023-03-310000718877us-gaap:USTreasuryAndGovernmentShorttermDebtSecuritiesMember2022-12-310000718877us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-03-310000718877us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-03-310000718877us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2023-03-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel3Member2023-03-310000718877us-gaap:FairValueMeasurementsRecurringMember2023-03-310000718877us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310000718877us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2023-03-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2023-03-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2023-03-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel3Member2023-03-310000718877us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310000718877us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310000718877us-gaap:FairValueInputsLevel2Memberus-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-12-310000718877us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-12-310000718877us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel3Member2022-12-310000718877us-gaap:FairValueMeasurementsRecurringMember2022-12-310000718877us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000718877us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000718877us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-12-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-12-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMember2022-12-310000718877us-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeForwardMemberus-gaap:FairValueInputsLevel3Member2022-12-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMemberus-gaap:CashFlowHedgingMember2023-01-012023-03-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberatvi:BuyUSDSellEURMemberus-gaap:CashFlowHedgingMember2023-03-310000718877us-gaap:DesignatedAsHedgingInstrumentMemberatvi:BuyUSDSellEURMemberus-gaap:CashFlowHedgingMember2022-12-3100007188772023-04-012023-03-310000718877us-gaap:RevolvingCreditFacilityMember2023-03-310000718877us-gaap:RevolvingCreditFacilityMember2022-12-310000718877us-gaap:RevolvingCreditFacilityMemberatvi:CreditAgreementasAmendedMemberus-gaap:LineOfCreditMember2023-03-310000718877atvi:Unsecured2026NotesMemberus-gaap:UnsecuredDebtMember2022-12-31xbrli:pure0000718877atvi:Unsecured2026NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877atvi:Unsecured2026NotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMember2023-03-310000718877atvi:Unsecured2026NotesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:UnsecuredDebtMember2022-12-310000718877atvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877atvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2027NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877atvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877atvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2030NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877atvi:Unsecured2047NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877atvi:Unsecured2047NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2047NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2047NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877atvi:Unsecured2050NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877atvi:Unsecured2050NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2050NotesMemberus-gaap:UnsecuredDebtMember2023-03-310000718877us-gaap:FairValueInputsLevel2Memberatvi:Unsecured2050NotesMemberus-gaap:UnsecuredDebtMember2022-12-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310000718877us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310000718877us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310000718877us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2023-01-012023-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2023-01-012023-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:RevenueExternalCustomersMember2023-01-012023-03-310000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2023-01-012023-03-310000718877atvi:RevenueIntersegmentMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberatvi:RevenueIntersegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:RevenueIntersegmentMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877atvi:RevenueIntersegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877us-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2022-01-012022-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2022-01-012022-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:RevenueExternalCustomersMember2022-01-012022-03-310000718877us-gaap:OperatingSegmentsMemberatvi:RevenueExternalCustomersMember2022-01-012022-03-310000718877atvi:RevenueIntersegmentMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberatvi:RevenueIntersegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:RevenueIntersegmentMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877atvi:RevenueIntersegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877us-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877us-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877us-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877us-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310000718877us-gaap:MaterialReconcilingItemsMember2022-01-012022-03-310000718877us-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877us-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877us-gaap:CorporateAndOtherMemberus-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310000718877us-gaap:CorporateAndOtherMemberus-gaap:MaterialReconcilingItemsMember2022-01-012022-03-310000718877atvi:ActivisionMemberatvi:DigitalOnlineChannelsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberatvi:DigitalOnlineChannelsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:DigitalOnlineChannelsMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877atvi:DigitalOnlineChannelsMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877atvi:DigitalOnlineChannelsMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877atvi:DigitalOnlineChannelsMember2023-01-012023-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMemberatvi:RetailChannelsMember2023-01-012023-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMemberatvi:RetailChannelsMember2023-01-012023-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:RetailChannelsMember2023-01-012023-03-310000718877us-gaap:CorporateNonSegmentMemberatvi:RetailChannelsMember2023-01-012023-03-310000718877us-gaap:IntersegmentEliminationMemberatvi:RetailChannelsMember2023-01-012023-03-310000718877atvi:RetailChannelsMember2023-01-012023-03-310000718877atvi:OtherDistributionChannelsMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberatvi:OtherDistributionChannelsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:OtherDistributionChannelsMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877atvi:OtherDistributionChannelsMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877atvi:OtherDistributionChannelsMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877atvi:OtherDistributionChannelsMember2023-01-012023-03-310000718877atvi:ActivisionMemberatvi:DigitalOnlineChannelsMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberatvi:DigitalOnlineChannelsMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:DigitalOnlineChannelsMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877atvi:DigitalOnlineChannelsMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877atvi:DigitalOnlineChannelsMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877atvi:DigitalOnlineChannelsMember2022-01-012022-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMemberatvi:RetailChannelsMember2022-01-012022-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMemberatvi:RetailChannelsMember2022-01-012022-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:RetailChannelsMember2022-01-012022-03-310000718877us-gaap:CorporateNonSegmentMemberatvi:RetailChannelsMember2022-01-012022-03-310000718877us-gaap:IntersegmentEliminationMemberatvi:RetailChannelsMember2022-01-012022-03-310000718877atvi:RetailChannelsMember2022-01-012022-03-310000718877atvi:OtherDistributionChannelsMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberatvi:OtherDistributionChannelsMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:OtherDistributionChannelsMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877atvi:OtherDistributionChannelsMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877atvi:OtherDistributionChannelsMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877atvi:OtherDistributionChannelsMember2022-01-012022-03-310000718877srt:AmericasMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMembersrt:AmericasMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877srt:AmericasMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877srt:AmericasMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877srt:AmericasMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877srt:AmericasMember2023-01-012023-03-310000718877us-gaap:EMEAMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberus-gaap:EMEAMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877us-gaap:EMEAMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877us-gaap:EMEAMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877us-gaap:EMEAMember2023-01-012023-03-310000718877srt:AsiaPacificMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877srt:AsiaPacificMemberatvi:BlizzardMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877srt:AsiaPacificMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877srt:AsiaPacificMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877srt:AsiaPacificMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877srt:AsiaPacificMember2023-01-012023-03-310000718877srt:AmericasMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMembersrt:AmericasMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877srt:AmericasMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877srt:AmericasMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877srt:AmericasMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877srt:AmericasMember2022-01-012022-03-310000718877us-gaap:EMEAMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberus-gaap:EMEAMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877us-gaap:EMEAMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877us-gaap:EMEAMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877us-gaap:EMEAMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877us-gaap:EMEAMember2022-01-012022-03-310000718877srt:AsiaPacificMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877srt:AsiaPacificMemberatvi:BlizzardMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877srt:AsiaPacificMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877srt:AsiaPacificMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877srt:AsiaPacificMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877srt:AsiaPacificMember2022-01-012022-03-310000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-01-012022-03-310000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2023-01-012023-03-310000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:GB2023-01-012023-03-310000718877us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:GB2022-01-012022-03-310000718877atvi:ConsoleMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberatvi:ConsoleMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:ConsoleMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877atvi:ConsoleMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877atvi:ConsoleMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877atvi:ConsoleMember2023-01-012023-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMemberatvi:PCMember2023-01-012023-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMemberatvi:PCMember2023-01-012023-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:PCMember2023-01-012023-03-310000718877us-gaap:CorporateNonSegmentMemberatvi:PCMember2023-01-012023-03-310000718877us-gaap:IntersegmentEliminationMemberatvi:PCMember2023-01-012023-03-310000718877atvi:PCMember2023-01-012023-03-310000718877atvi:MobileAndAncillaryPlatformsMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberatvi:MobileAndAncillaryPlatformsMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:MobileAndAncillaryPlatformsMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877atvi:MobileAndAncillaryPlatformsMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877atvi:MobileAndAncillaryPlatformsMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877atvi:MobileAndAncillaryPlatformsMember2023-01-012023-03-310000718877atvi:OtherPlatformMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:BlizzardMemberatvi:OtherPlatformMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310000718877atvi:OtherPlatformMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2023-01-012023-03-310000718877atvi:OtherPlatformMemberus-gaap:CorporateNonSegmentMember2023-01-012023-03-310000718877atvi:OtherPlatformMemberus-gaap:IntersegmentEliminationMember2023-01-012023-03-310000718877atvi:OtherPlatformMember2023-01-012023-03-310000718877atvi:ConsoleMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberatvi:ConsoleMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:ConsoleMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877atvi:ConsoleMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877atvi:ConsoleMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877atvi:ConsoleMember2022-01-012022-03-310000718877atvi:ActivisionMemberus-gaap:OperatingSegmentsMemberatvi:PCMember2022-01-012022-03-310000718877atvi:BlizzardMemberus-gaap:OperatingSegmentsMemberatvi:PCMember2022-01-012022-03-310000718877us-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMemberatvi:PCMember2022-01-012022-03-310000718877us-gaap:CorporateNonSegmentMemberatvi:PCMember2022-01-012022-03-310000718877us-gaap:IntersegmentEliminationMemberatvi:PCMember2022-01-012022-03-310000718877atvi:PCMember2022-01-012022-03-310000718877atvi:MobileAndAncillaryPlatformsMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberatvi:MobileAndAncillaryPlatformsMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:MobileAndAncillaryPlatformsMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877atvi:MobileAndAncillaryPlatformsMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877atvi:MobileAndAncillaryPlatformsMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877atvi:MobileAndAncillaryPlatformsMember2022-01-012022-03-310000718877atvi:OtherPlatformMemberatvi:ActivisionMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:BlizzardMemberatvi:OtherPlatformMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310000718877atvi:OtherPlatformMemberus-gaap:OperatingSegmentsMemberatvi:KingDigitalEntertainmentMember2022-01-012022-03-310000718877atvi:OtherPlatformMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310000718877atvi:OtherPlatformMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310000718877atvi:OtherPlatformMember2022-01-012022-03-310000718877srt:AmericasMember2023-03-310000718877srt:AmericasMember2022-12-310000718877us-gaap:EMEAMember2023-03-310000718877us-gaap:EMEAMember2022-12-310000718877srt:AsiaPacificMember2023-03-310000718877srt:AsiaPacificMember2022-12-310000718877us-gaap:EmployeeStockOptionMember2022-12-310000718877us-gaap:EmployeeStockOptionMember2023-01-012023-03-310000718877us-gaap:EmployeeStockOptionMember2023-03-310000718877us-gaap:RestrictedStockMember2022-12-310000718877us-gaap:RestrictedStockMember2023-01-012023-03-310000718877us-gaap:RestrictedStockMember2023-03-310000718877us-gaap:RestrictedStockMember2022-01-012022-03-310000718877us-gaap:SettledLitigationMemberatvi:EEOCSettlementMember2022-03-292022-03-290000718877atvi:EmploymentRelatedMattersMemberus-gaap:SettledLitigationMember2023-02-032023-02-030000718877us-gaap:SubsequentEventMember2023-04-012023-05-040000718877atvi:MarketingCommitmentsMemberus-gaap:SubsequentEventMember2023-04-012023-05-040000718877us-gaap:SubsequentEventMemberatvi:DeveloperandHostingMember2023-04-012023-05-04

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~September~~March 3031, ~~2022~~2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-15839

ACTIVISION BLIZZARD, INC.

(Exact name of registrant as specified in its charter)

Delaware

95-4803544

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

2701 Olympic Boulevard Building B

Santa Monica,

90404

(Address of principal executive offices)

(Zip Code)

(310) 255-2000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.000001 per share

ATVI

The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Non-accelerated Filer

☐

Accelerated Filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s Common Stock outstanding at April 28, 2023 was 786,158,727.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

Table of Contents

	Cautionary Statement	3
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets at September 30, 2022 and December 31, 2021	4
	Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022	4
	Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and September 30, 2021	5
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and March 31, 2022	5
	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and September 30, 2021	6
	Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2023 and March 31, 2022	6
	Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and September 30, 2021	7
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and March 31, 2022	7
	Condensed Consolidated Statement of Changes in Shareholders’ Equity for the three and nine months ended September 30, 2022 and September 30, 2021	8
	Condensed Consolidated Statement of Changes in Shareholders’ Equity for the three months ended March 31, 2023 and March 31, 2022	8
	Notes to Condensed Consolidated Financial Statements	109
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3528
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5946
Item 4.	Controls and Procedures	6047
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	6149
Item 1A.	Risk Factors	6149
Item 6.	Exhibits	6250
SIGNATURE		6351

Table of Contents

CAUTIONARY STATEMENT

This Quarterly Report on Form 10-Q contains, or incorporates by reference, statements reflecting our views about our future performance that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements consist of any statement other than a recitation of historical facts and include, but are not limited to: (1) projections of revenues, expenses, income or loss, earnings or loss per share, cash flow, or other financial items; (2) statements of our plans and objectives, including those related to releases of products or services and restructuring activities; (3) statements of future financial or operating performance, including the impact of tax items thereon; (4) statements regarding the proposed transaction between Activision Blizzard, Inc. (“Activision Blizzard”) and Microsoft Corporation (“Microsoft”) pursuant to the Agreement and Plan of Merger, dated as of January 18, 2022, by and among Activision Blizzard, Microsoft, and Anchorage Merger Sub Inc., a wholly owned subsidiary of Microsoft (the “Merger Agreement” and such transaction, “the proposed transaction with Microsoft”), including any statements regarding the expected timetable for completing the proposed transaction with Microsoft, the ability to complete the proposed transaction with Microsoft, and the expected benefits of the proposed transaction with Microsoft; and (5) statements of assumptions underlying such statements. Activision Blizzard~~, Inc.~~ ~~(“Activision Blizzard”)~~ generally uses words such as “outlook,” “forecast,” “will,” “could,” “should,” “would,” “to be,” “plan,” “aims,” “believes,” “may,” “might,” “expects,” “intends,” “seeks,” “anticipates,” “~~estimates~~estimate,” “future,” “positioned,” “potential,” “project,” “remain,” “scheduled,” “set to,” “subject to,” “upcoming,” and the negative version of these words and other similar words and expressions to help identify forward-looking statements. Forward-looking statements are subject to business and economic risks, reflect management’s current expectations, estimates, and projections about our business, and are inherently uncertain and difficult to predict.

We caution that a number of important factors, many of which are beyond our control, could cause our actual future results and other future circumstances to differ materially from those expressed in any forward-looking statements. Such factors include, but are not limited to: the risk that the proposed transaction with Microsoft may not be completed in a timely manner or at all, which may adversely affect our business and the price of our common stock; the failure to satisfy the conditions to the consummation of the proposed transaction with Microsoft, including the receipt of certain governmental and regulatory approvals (which may or may not be received on a timely basis or at all); the occurrence of any event, change, or other circumstance that could give rise to the termination of the ~~Agreement and Plan of~~ Merger, ~~dated as of January 18, 2022, by and among Activision Blizzard, Microsoft, and Anchorage Merger Sub Inc., a wholly owned subsidiary of Microsoft (the “Merger~~ Agreement”); the effect of the announcement or pendency of the proposed transaction with Microsoft on our business relationships, operating results, and business generally; risks that the proposed transaction with Microsoft disrupts our current plans and operations and potential difficulties in employee retention and recruitment as a result of the proposed transaction with Microsoft; risks related to diverting management’s attention from ongoing business operations; the outcome of any legal proceedings that have been or may be instituted against us related to the Merger Agreement or the transactions contemplated thereby; restrictions during the pendency of the proposed transaction with Microsoft that may impact our ability to pursue certain business opportunities or strategic transactions; ~~the~~uncertainty ~~potential~~about ~~for~~current ~~receipt~~and offuture ~~alternative~~economic ~~acquisition~~conditions ~~proposals from potential acquirors; the global impact of the ongoing COVID-19 pandemic~~ and other ~~macroeconomic~~adverse ~~factors~~changes ~~(including,~~in ~~without~~general ~~limitation,~~political ~~the~~conditions ~~potential~~in ~~for~~any ~~significant~~of ~~short-~~the ~~and~~major ~~long-term~~countries ~~global~~in ~~unemployment~~which ~~and~~we ~~economic~~do ~~weakness and a resulting impact on global discretionary spending~~business; ~~potential~~decline ~~strain~~in ondemand ~~the~~for ~~retailers, distributors, and manufacturers who sell~~ our ~~physical~~ products ~~to customers~~ and ~~the~~services ~~platform~~if ~~providers~~general oneconomic ~~whose~~conditions ~~networks~~decline; ~~and~~fluctuations ~~consoles~~in ~~certain~~currency ofexchange ~~our games are available~~rates; ~~effects on~~ our ability to ~~release~~deliver ~~our~~popular, high-quality content in a timely manner ~~and with effective quality control~~; ~~effects~~negative impacts on our ~~ability~~business toresulting ~~prevent~~from ~~cyber-security~~concerns ~~incidents~~regarding ~~while~~ our ~~workforce~~workplace, isincluding ~~dispersed;~~associated ~~effects~~legal ~~on the operations of our professional esports leagues~~proceedings; ~~the impact of rising interest rates as a result of large-scale intervention by the Federal Reserve and other central banks around the world and other economic factors; increased demand for~~ our ~~games~~ability ~~due~~ to ~~stay-at-home~~attract, ~~orders and curtailment of other forms of entertainment~~retain, ~~which may not be sustained~~ and ~~may~~motivate ~~fluctuate~~skilled ~~as stay-at-home orders are reduced, lifted, and/or reinstated~~personnel; ~~macroeconomic~~future impacts ~~arising~~ from ~~the long duration of the~~ COVID-19 ~~pandemic, including labor shortages and supply chain disruptions~~; ~~and~~the ~~volatility~~level inof ~~foreign~~demand ~~exchange~~for ~~rates);~~ our ~~ability~~games toand ~~consistently deliver popular, high-quality titles in a timely manner, which has been made more difficult as a result of the COVID-19 pandemic~~products; our ability to ~~satisfy~~meet ~~the~~customer expectations ~~of consumers~~ with respect to our brands, games, services, and/or business practices; ~~negative~~competition; ~~impacts~~our reliance on ~~our~~a ~~business~~relatively ~~from~~small ~~concerns~~number ~~regarding~~of ~~our~~franchises ~~workplace;~~for ~~our~~a ~~ability~~significant toportion ~~attract,~~of ~~retain,~~our revenues and ~~motivate skilled personnel~~profits; ~~competition;~~negative ~~concentration~~impacts offrom ~~revenue~~the ~~among~~results aof ~~small~~collective ~~number~~bargaining, oflegal ~~franchises;~~proceedings ~~negative~~related ~~impacts~~to ~~from~~ unionization, or ~~attempts~~campaigns toby ~~unionize~~unions bydirected at our workforce; ~~rapid~~our ~~changes~~ability into ~~technology~~adapt to rapid technological change and ~~industry~~allocate ~~standards~~our resources accordingly; the increasing importance of ~~revenues~~digital ~~derived~~sales ~~from~~and ~~digital~~the ~~distribution~~risks ~~channels~~of that business model; our ability to effectively manage ~~growth in~~ the scope and complexity of our business;, ~~substantial~~including ~~influence~~risks ofrelated to our professional esports business model; our reliance on third-party ~~platform~~platforms, ~~providers~~which ~~over~~are also our ~~products~~competitors, ~~and~~for ~~costs~~the distribution of products; our dependence on the success and availability of video game consoles manufactured by third parties, ~~including~~and our ability to ~~predict the consoles that will be most successful in the marketplace and~~ develop commercially- successful products for ~~those~~these consoles; ~~risks~~the ~~associated~~increasing ~~with~~importance ~~the~~of free-to-play ~~business~~games ~~model,~~and ~~including~~the ~~our~~risks ~~dependence on a relatively small number~~ of ~~consumers~~that ~~for~~business ~~a significant portion of revenues and profits from any given game~~model; the risks and uncertainties of conducting business outside the United States (the “U.S.”)., including the need for regulatory approval to operate, ~~impacts on our business arising from~~ the ~~current conflict between Russia and Ukraine, the~~ relatively weaker protection for our intellectual property rights, and the impact of cultural differences on consumer preferences; ~~risks~~insolvency ~~associated~~or ~~with~~business failure of any of our business partners; the importance of retail sales to our business and the risks of that business model; any difficulties in integrating acquired businesses or ~~otherwise~~ realizing the anticipated benefits of strategic transactions; ~~the~~ seasonality in the sale of our products; fluctuation in our recurring business; ~~risks~~the ~~relating~~risk ~~to behavior~~ of ~~our~~ distributors, retailers, development, and licensing partners, or other ~~affiliated~~ third parties ~~that~~being ~~may~~unable ~~harm~~to ~~our~~honor ~~brands~~their commitments or ~~business~~otherwise ~~operations~~putting our brand at risk; our reliance on tools and technologies owned by third parties; ~~risks associated with~~ our use of open source software; risks associated with undisclosed content or features ~~that may result~~ in ~~consumers’ refusal to buy or retailers’ refusal to sell~~ our ~~products~~games; ~~risks~~the ~~associated~~impact ~~with~~of objectionable consumer- or other third-party-created content on our operating results or reputation; outages, disruptions, or degradations in our services, products, and/or technological infrastructure; cybersecurity-related attacks, significant data breaches, fraudulent activity, ~~and~~or ~~other~~disruption ~~cybersecurity~~of ~~risks~~our information technology systems or networks; significant disruption during our live events; ~~risks related to the impacts of~~ catastrophic events; climate change; provisions in our corporate documents ~~that~~and ~~may~~Delaware ~~make~~state itlaw ~~more~~that ~~difficult~~could ~~for~~delay ~~any~~or ~~person~~prevent toa ~~acquire~~change ~~control~~ of ~~our company~~control; ~~ongoing~~other legal proceedings; ~~related~~increasing toregulation ~~workplace concerns and otherwise, including the impact of the complaint filed~~ in ~~2021~~key byterritories ~~the~~over ~~California~~our ~~Civil~~business, ~~Rights~~products, ~~Department (formerly known as the Department of Fair Employment~~ and Housing) alleging violations of the California Fair Employment and Housing Act and the California Equal Pay Act and separate investigations and complaints by other parties and regulators related to certain employment practices and related disclosuresdistribution; ~~successful~~changes ~~implementation of the requirements of the court-approved consent decree with the Equal Employment Opportunity Commission; intellectual property claims; increasing regulation~~ in ~~key~~government ~~territories;~~ regulation relating to the Internet,; ~~including~~our ~~potential~~compliance ~~harm~~with ~~from~~evolving ~~laws impacting “net neutrality;” regulation concerning~~ data privacy, ~~including~~laws ~~China’s~~and ~~Personal Information Protection Law~~regulations; scrutiny regarding the appropriateness of the content in our games’ ~~content,~~and ~~including~~our ~~ratings~~ability ~~assigned~~to byreceive ~~third~~target ~~parties~~ratings for certain titles; changes in tax rates and/or tax laws orand exposure to additional tax liabilities; ~~fluctuations in currency exchange rates; impacts of~~ changes in financial accounting standards; ~~insolvency~~ or ~~business~~the ~~failure~~application of ~~any~~existing ofor ~~our~~future ~~business~~standards ~~partners, which has been magnified~~ as ~~a result of the COVID-19 pandemic; risks associated with~~ our ~~reliance~~business ~~on consumer discretionary spending~~evolves; ~~risks associated with increased inflation on our costs~~ and the ~~impacts on consumer discretionary spending; and the~~ other factors included in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022, filed with the U.S. Securities and Exchange Commission (the “SEC”).

The forward-looking statements contained herein are based on information available to Activision Blizzard, ~~Inc.~~ as of the date of this filing, and we assume no obligation to update any such forward-looking statements. Actual events or results may differ from those expressed in forward-looking statements. As such, you should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results, prospects, strategy, and financial needs. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and may cause actual results to differ materially from current expectations.

Activision Blizzard, Inc.’s names, abbreviations thereof, logos, and product and service designators are all either the registered or unregistered trademarks or trade names of Activision Blizzard, Inc. All other product or service names are the property of their respective owners. All dollar amounts referred to in, or contemplated by, this Quarterly Report on Form 10-Q refer to U.S. dollars unless otherwise explicitly stated to the contrary.

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in millions, except share data)

	At September 30, 2022		At December 31, 2021
	At March 31, 2023		At December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	79,~~743~~236	$	107,~~423~~060
Held-to-maturity investments	23,~~945~~280		—4,932
Accounts receivable, net	~~658~~764		~~972~~1,204
Software development	~~1,011~~715		~~449~~640
Other current assets	~~753~~524		~~712~~633
Total current assets	1314,~~110~~519		1214,~~556~~469
Software development	~~156~~622		~~211~~641
Property and equipment, net	~~171~~199		~~169~~193
Deferred income taxes, net	1,~~266~~180		1,~~377~~201
Other assets	~~541~~507		~~497~~508
Intangible assets, net	~~448~~437		~~447~~442
Goodwill	9,~~928~~929		9,~~799~~929
Total assets	$	2527,~~620~~393	$	2527,~~056~~383
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	~~229~~177	$	~~285~~324
Deferred revenues	~~979~~1,653		12,~~118~~088
Accrued expenses and other liabilities	~~1,070~~987		1,~~008~~143
Total current liabilities	2,~~278~~817		23,~~411~~555
Long-term debt, net	3,~~610~~611		3,~~608~~611
Deferred income taxes, net	9832		~~506~~158
Other liabilities	~~826~~818		~~932~~816
Total liabilities	67,~~812~~278		78,~~457~~140
Commitments and contingencies (Note 17)
Commitments and contingencies (Note 13)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,211,236,117 and 1,207,729,623 shares issued at September 30, 2022 and December 31, 2021, respectively	—		—
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	—		—
Additional paid-in capital	12,~~192~~396		1112,~~715~~260
Less: Treasury stock, at cost, 428,676,471 shares at September 30, 2022 and December 31, 2021	(5,563)		(5,563)
Less: Treasury stock, at cost, 428,676,471 shares at March 31, 2023 and December 31, 2022	(5,563)		(5,563)
Retained earnings	1213,~~768~~911		1213,~~025~~171
Accumulated other comprehensive loss	(~~589~~629)		(~~578~~625)
Total shareholders’ equity	1820,~~808~~115		1719,~~599~~243
Total liabilities and shareholders’ equity	$	2527,~~620~~393	$	2527,~~056~~383

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in millions, except per share data)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

2022

2021

2022

2021

2023

2022

Net revenues

Product sales

~~231~~

~~423~~

~~921~~695

~~1,666~~386

In-game, subscription, and other revenues

~~1,551~~

~~1,647~~

41,~~273~~688

41,~~974~~382

Total net revenues

~~1,782~~

~~2,070~~

52,~~194~~383

61,~~640~~768

Costs and expenses

Cost of revenues—product sales:

Product costs

~~107~~

~~120~~

~~279~~136

~~375~~91

Software royalties and amortization

~~153~~101

~~272~~81

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

Game operations and distribution costs

~~343~~

~~307~~

~~948~~363

~~925~~288

Software royalties and amortization

8665

8719

Product development

~~277~~

~~329~~

~~935~~402

~~1,016~~346

Sales and marketing

~~287~~

~~244~~

~~801~~278

~~727~~252

General and administrative

~~229~~

~~143~~

~~693~~238

~~614~~212

Restructuring and related costs

(3)

Total costs and expenses

1,583

1,289

Total costs and expenses

1,297

1,246

3,892

4,062

Operating income

800

479

Operating income

485

824

1,302

2,578

Interest expense from debt

Interest and other (income) expense, net (Note 13)

(15)

Other (income) expense, net (Note 10)

(122)

(13)

Income before income tax expense

~~500~~

~~759~~

~~1,286~~895

~~2,526~~465

Income tax expense

~~120~~

~~176~~155

~~391~~70

Net income

~~435~~

~~639~~

~~1,110~~740

~~2,135~~395

Earnings per common share

Basic

~~0.56~~

~~0.82~~

10.4294

20.7551

Diluted

~~0.55~~

~~0.82~~

10.4193

20.7250

Weighted-average number of shares outstanding

Basic

~~782~~

~~778~~

~~781~~785

~~777~~780

Diluted

~~789~~

~~783~~

~~788~~792

~~784~~786

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Amounts in millions)

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
			For the Three Months Ended March 31,
	2022		2021		2022		2021
					2023		2022
Net income	$	~~435~~	$	~~639~~	$	~~1,110~~740	$	~~2,135~~395
Other comprehensive income (loss):
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	~~(38)~~		~~(14)~~		~~(64)~~7		(84)
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	26		14		34(11)		40(5)
Unrealized gains (losses) on available-for-sale securities, net of tax	14		6		19—		31
Total other comprehensive income (loss)	$	2	$	6	$	(11)	$	35
Total other comprehensive (loss) income					$	(4)	$	(8)
Comprehensive income	$	~~437~~	$	~~645~~	$	~~1,099~~736	$	~~2,170~~387

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Amounts in millions)

	For the Nine Months Ended September 30,
	For the Three Months Ended March 31,
	2022		2021
	2023		2022
Cash flows from operating activities:
Net income	$	~~1,110~~740	$	~~2,135~~395
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(~~302~~100)		(8264)
Non-cash operating lease cost	5621		4618
Depreciation and amortization	7821		8824
Amortization of capitalized software development costs (1)	~~141~~102		~~256~~75
Share-based compensation expense (2)	~~301~~124		~~259~~98
Realized and unrealized gain on equity investment	6		(36)
Other	(35)		(22)
Other	(38)		(3)
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net	~~297~~443		~~462~~440
Software development	(~~527~~161)		(~~303~~104)
Other assets	~~(30)~~86		~~(88)~~125
Deferred revenues	(~~124~~447)		(~~818~~278)
Accounts payable	(46150)		(4676)
Accrued expenses and other liabilities	~~175~~(67)		~~(117)~~11
Net cash provided by operating activities	~~1,097~~577		~~1,753~~642
Cash flows from investing activities:
Proceeds from maturities of available-for-sale investments	36—		~~120~~22
Proceeds from sale of available-for-sale investments	26		66
Proceeds from maturities of held-to-maturity investments	1,700		—
Purchases of available-for-sale investments	(109)		(248)
Capital expenditures	(37)		(15)
Purchases of held-to-maturity investments	(2,944)		—
Net cash provided by investing activities	1,663		7
Acquisition of business, net of cash acquired (Note 4)	(135)		—
Capital expenditures	(67)		(59)
Other investing activities	—		20
Net cash used in investing activities	(3,193)		(101)
Cash flows from financing activities:
Proceeds from issuance of common stock to employees	4113		7816
Tax payment related to net share settlements on restricted stock units	(~~147~~84)		(~~246~~113)
Dividends paid	(367)		(365)
Net cash used in financing activities	(71)		(97)
Net cash used in financing activities	(473)		(533)
Effect of foreign exchange rate changes on cash and cash equivalents	8		(10)
Effect of foreign exchange rate changes on cash and cash equivalents	(100)		(35)
Net increase in cash and cash equivalents and restricted cash	2,177		542
Net (decrease) increase in cash and cash equivalents and restricted cash	(2,669)		1,084
Cash and cash equivalents and restricted cash at beginning of period	7,086		10,438
Cash and cash equivalents and restricted cash at beginning of period	10,438		8,652
Cash and cash equivalents and restricted cash at end of period	$	9,263	$	10,980
Cash and cash equivalents and restricted cash at end of period	$	7,769	$	9,736
Supplemental cash flow information - Non-cash financing activities:
Dividends payable	$	—	$	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.

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

For the Three ~~and Nine~~ Months Ended ~~September~~March 3031, 2023 and March 31, 2022

(Unaudited)

(Amounts and shares in millions, except per share data)

	Common Stock			Treasury Stock			AdditionalPaid-InCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TotalShareholders’Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2021	1,208	$	—	(429)	$	(5,563)	$	11,715	$	12,025	$	(578)	$	17,599
Balance at December 31, 2022	1,213	$	—	(429)	$	(5,563)	$	12,260	$	13,171	$	(625)	$	19,243
Components of comprehensive income:
Net income	—	—		—	—		—		~~395~~740		—		~~395~~740
Other comprehensive income (loss)	—	—		—	—		—		—		(84)		(84)
Issuance of common stock pursuant to employee stock options	—	—		—	—		1514		—		—		1514
Issuance of common stock pursuant to restricted stock units	43	—		—	—		—		—		—		—
Restricted stock surrendered for employees’ tax liability	(21)	—		—	—		(~~131~~92)		—		—		(~~131~~92)
Settlement of liability-classified awards in restricted stock units (Note 11)	—	—		—	—		204		—		—		204
Settlement of liability-classified awards in restricted stock units (Note 9)	—	—		—	—		93		—		—		93
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		~~124~~121		—		—		~~124~~121
Dividends ($0.47 per common share)	—	—		—	—		—		(367)		—		(367)
Balance at March 31, 2023	1,215	$	—	(429)	$	(5,563)	$	12,396	$	13,911	$	(629)	$	20,115
Balance at March 31, 2022	1,210	$	—	(429)	$	(5,563)	$	11,927	$	12,053	$	(586)	$	17,831
Components of comprehensive income:
Net income	—	—		—	—		—		280		—		280
Other comprehensive income (loss)	—	—		—	—		—		—		(5)		(5)
Issuance of common stock pursuant to employee stock options	1	—		—	—		22		—		—		22
Restricted stock surrendered for employees’ tax liability	—	—		—	—		(9)		—		—		(9)
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		129		—		—		129
Balance at June 30, 2022	1,211	$	—	(429)	$	(5,563)	$	12,069	$	12,333	$	(591)	$	18,248
Components of comprehensive income:
Net income	—	—		—	—		—		435		—		435
Other comprehensive income (loss)	—	—		—	—		—		—		2		2
Issuance of common stock pursuant to employee stock options	—	—		—	—		4		—		—		4
Restricted stock surrendered for employees’ tax liability	—	—		—	—		(8)		—		—		(8)
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		127		—		—		127
Balance at September 30, 2022	1,211	$	—	(429)	$	(5,563)	$	12,192	$	12,768	$	(589)	$	18,808


	Common Stock			Treasury Stock			Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2021	1,208	$	—	(429)	$	(5,563)	$	11,715	$	12,025	$	(578)	$	17,599

Components of comprehensive income:
Net income	—	—		—	—		—		395		—		395
Other comprehensive income (loss)	—	—		—	—		—		—		(8)		(8)
Issuance of common stock pursuant to employee stock options	—	—		—	—		15		—		—		15
Issuance of common stock pursuant to restricted stock units	4	—		—	—		—		—		—		—
Restricted stock surrendered for employees’ tax liability	(2)	—		—	—		(131)		—		—		(131)
Settlement of liability-classified awards in restricted stock units (Note 9)	—	—		—	—		204		—		—		204
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		124		—		—		124
Dividends ($0.47 per common share)	—	—		—	—		—		(367)		—		(367)
Balance at March 31, 2022	1,210	$	—	(429)	$	(5,563)	$	11,927	$	12,053	$	(586)	$	17,831

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

For the Three and Nine Months Ended September 30, 2021

(Unaudited)

(Amounts and shares in millions, except per share data)

	Common Stock			Treasury Stock			AdditionalPaid-InCapital		RetainedEarnings		AccumulatedOtherComprehensiveIncome (Loss)		TotalShareholders’Equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2020	1,203	$	—	(429)	$	(5,563)	$	11,531	$	9,691	$	(622)	$	15,037
Components of comprehensive income:
Net income	—	—		—	—		—		619		—		619
Other comprehensive income (loss)	—	—		—	—		—		—		22		22
Issuance of common stock pursuant to employee stock options	1	—		—	—		33		—		—		33
Issuance of common stock pursuant to restricted stock units	4	—		—	—		—		—		—		—
Restricted stock surrendered for employees’ tax liability	(2)	—		—	—		(165)		—		—		(165)
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		150		—		—		150
Dividends ($0.47 per common share)	—	—		—	—		—		(365)		—		(365)
Balance at March 31, 2021	1,206	$	—	(429)	$	(5,563)	$	11,549	$	9,945	$	(600)	$	15,331
Components of comprehensive income:
Net income	—	—		—	—		—		876		—		876
Other comprehensive income (loss)	—	—		—	—		—		—		7		7
Issuance of common stock pursuant to employee stock options	—	—		—	—		33		—		—		33
Restricted stock surrendered for employees’ tax liability	—	—		—	—		(7)		—		—		(7)
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		46		—		—		46
Balance at June 30, 2021	1,206	$	—	(429)	$	(5,563)	$	11,621	$	10,821	$	(593)	$	16,286
Components of comprehensive income:
Net income	—	—		—	—		—		639		—		639
Other comprehensive income (loss)	—	—		—	—		—		—		6		6
Issuance of common stock pursuant to employee stock options	—	—		—	—		12		—		—		12
Issuance of common stock pursuant to restricted stock units	2	—		—	—		—		—		—		—
Restricted stock surrendered for employees’ tax liability	(1)	—		—	—		(73)		—		—		(73)
Share-based compensation expense related to employee stock options and restricted stock units	—	—		—	—		80		—		—		80
Balance at September 30, 2021	1,207	$	—	(429)	$	(5,563)	$	11,640	$	11,460	$	(587)	$	16,950

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

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, ~~following~~our ~~consummation~~acquisition ofwill be accomplished through the merger of Merger Sub with and into the Company (the “Merger”), with the Company ~~will~~surviving bethe 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 ~~(the “Effective Time”)~~. We do not believe these restrictions will prevent us from meeting our debt service obligations, ongoing costs of operations, working capital needs or capital expenditure requirements. The consummation of the Merger remains subject to customary closing conditions, including satisfaction of certain regulatory approvals. On April 28, 2022, the Company’s stockholders adopted the Merger Agreement at a special meeting of stockholders. The Merger is currently expected to close in Microsoft’s fiscal year ending June 30, 2023.

~~For~~If ~~additional~~the ~~information~~Merger ~~related~~Agreement tois ~~the~~terminated ~~Merger~~under ~~Agreement~~certain specified circumstances, ~~please~~we ~~refer~~or toMicrosoft ~~the~~will ~~Definitive~~be ~~Proxy~~required ~~Statement~~to onpay ~~Schedule~~a ~~14A~~termination ~~filed~~fee. ~~with~~We ~~the~~will ~~SEC~~be onrequired ~~March~~to ~~21,~~pay ~~2022,~~Microsoft asa ~~supplemented~~termination byfee ~~the~~of ~~Current~~approximately ~~Report~~$2.27 billion onunder ~~Form~~specified ~~8-K~~circumstances, ~~filed~~including ~~with~~termination of the ~~SEC~~Merger onAgreement ~~April~~due 15to our material breach of representations, ~~2022~~warranties, ascovenants ~~well~~or asagreements ~~Part~~in Ithe ~~Item~~Merger 1Agreement. ~~“Business”~~Microsoft ofwill ~~our~~be ~~Annual~~required ~~Report~~to onpay ~~Form~~us ~~10-K~~a ~~for~~reverse ~~the~~termination ~~year~~fee ~~ended~~under ~~December~~specified 31circumstances, ~~2021,~~including ~~and~~termination ~~other~~of ~~relevant~~the ~~materials~~Merger inAgreement ~~connection~~due ~~with~~to ~~the~~a ~~proposed~~permanent ~~transaction~~injunction ~~with~~arising ~~Microsoft~~from ~~that~~Antitrust weLaws ~~will~~(as ~~file~~defined ~~with~~in the ~~SEC~~Merger ~~and~~Agreement) ~~that~~when ~~will~~we ~~contain~~are ~~important~~not ~~information~~then ~~about~~in material breach of any provision of the ~~Company~~Merger Agreement and if certain other conditions are met, in an amount equal to $3.0 billion if the ~~Merger~~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.

Table of Contents

(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 ~~with city-based teams~~.

(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 ~~with city-based teams~~.

(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 ~~the~~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, ~~2021~~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.

~~2. Software Development~~10

Our total capitalized software development costs of $1.2 billion and $660 million as of September 30, 2022 and December 31, 2021, respectively, primarily relate to internal development costs.

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Amortization of capitalized software development costs	$	8	$	71	$	148	$	270

Table of Contents

32. ~~Intangible~~Held-to-Maturity ~~Assets, Net~~Investments

~~Intangible~~The ~~assets,~~following ~~net,~~tables ~~consist~~summarizes of the ~~following~~Company's held-to-maturity investments (~~amounts~~amount in millions):

	At September 30, 2022
	At March 31, 2023
	Estimatedusefullives					Grosscarryingamount		Accumulatedamortization		Netcarryingamount
	Amortized Cost			Gross Unrealized Gains		Gross Unrealized losses		Estimated Fair Value(Level 1)
Acquired definite-lived intangible assets (1):
U.S. treasuries and government agency securities	$	3,280		$	—	$	(1)	$	3,279
Trade names and other	1		-	10 years		$	90	$	(75)	$	15
Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite									$	386
Acquired trade names	Indefinite									47
Total indefinite-lived intangible assets										$	433
Total intangible assets, net										$	448

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


	At December 31, 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 December 31, 2021
	Estimatedusefullives			Grosscarryingamount		Accumulatedamortization		Net carryingamount
Acquired definite-lived intangible assets:
Internally-developed franchises	3	-	11 years	$	1,154	$	(1,154)	$	—
Trade names and other	1	-	10 years	80		(66)		14
Total definite-lived intangible assets				$	1,234	$	(1,220)	$	14
Acquired indefinite-lived intangible assets:
Activision trademark	Indefinite							$	386
Acquired trade names	Indefinite							47
Total indefinite-lived intangible assets								$	433
Total intangible assets, net								$	447

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

43. ~~Goodwill~~Software ~~and Acquisitions~~Development

~~The~~Our ~~carrying~~total ~~amount~~capitalized ofsoftware ~~goodwill~~development bycosts ~~reportable~~were ~~segment~~$1.3 atbillion ~~both~~as ~~September~~of March 3031, ~~2022~~2023 and December 31, ~~2021~~2022, ~~was~~respectively, asand ~~follows~~primarily ~~(amounts~~relate into ~~millions):~~internal development costs.

	Activision		Blizzard		King		Total
Balance at December 31, 2021	$	6,933	$	190	$	2,676	$	9,799
Additions through acquisition (1)	—		98		33		131
Other	(2)		—		—		(2)
Balance at September 30, 2022	$	6,931	$	288	$	2,709	$	9,928

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

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


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

~~•Proletariat Inc~~4. Fair ~~(“Proletariat”),~~Value ~~a privately held game development studio based in Boston, Massachusetts, was acquired by Blizzard to increase developer resources for the Warcraft franchise.~~Measurements

Table of Contents

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

The total purchase price for these acquisitions was $152 million utilizing cash on hand. The value to the Company of both of these acquisitions is primarily in the assembled workforce of the acquired businesses and therefore the majority of the value for each acquisition has been recognized as goodwill. Goodwill attributed to the acquired businesses is not expected to be tax-deductible. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of September 30, 2022 and are considered preliminary, pending finalization of our valuation of these assets and liabilities.

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

5. 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.

1311

Table of Contents

Fair Value Measurements on a Recurring Basis

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

			Fair Value Measurements at September 30, 2022 Using
			Fair Value Measurements at March 31, 2023 Using
	As of September 30, 2022		Quoted Prices in Active Markets for Identical Assets(Level 1)		Significant Other Observable Inputs(Level 2)		Significant Unobservable Inputs(Level 3)		Balance SheetClassification
	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 SheetClassification
Financial Assets:
Recurring fair value measurements:
Money market funds	$	78,~~367~~888	$	78,~~367~~888	$	—	$	—	Cash and cash equivalents
Available-for-sale foreign government treasury bills	19		19		—		—		Cash and cash equivalents
Equity securities	47		47		—		—		Other current assets
Available-for-sale U.S. treasuries and government agency securities	176		176		—		—		Other current assets
Foreign currency forward contracts designated as hedges	3		—		3		—		Other current assets
Equity securities	44		44		—		—		Other current assets
Total	$	8,938	$	8,935	$	3	$	—
Foreign currency forward contracts designated as hedges	64		—		64		—		Other current assets & Other assets
Financial Liabilities:
Total	$	7,670	$	7,606	$	64	$	—
Foreign currency forward contracts designated as hedges	$	(8)	$	—	$	(8)	$	—	Accrued expenses and other liabilities

			Fair Value Measurements at December 31, 2021 Using
			Fair Value Measurements at December 31, 2022 Using
	As of December 31, 2021		Quoted Prices in Active Markets for Identical Assets(Level 1)		Significant Other Observable Inputs(Level 2)		Significant Unobservable Inputs(Level 3)		Balance SheetClassification
	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 SheetClassification
Financial Assets:
Recurring fair value measurements:
Money market funds	$	106,~~035~~639	$	106,~~035~~639	$	—	$	—	Cash and cash equivalents
Available-for-sale foreign government treasury bills	34		34		—		—		Cash and cash equivalents
Equity securities	49		49		—		—		Other current assets
Available-for-sale U.S. treasuries and government agency securities	130		130		—		—		Other current assets
Foreign currency forward contracts designated as hedges	6		—		6		—		Other current assets
Equity securities	50		50		—		—		Other current assets
Total	$	6,694	$	6,688	$	6	$	—
Foreign currency forward contracts designated as hedges	20		—		20		—		Other current assets
Financial Liabilities:
Total	$	10,269	$	10,249	$	20	$	—
Foreign currency forward contracts designated as hedges	$	(6)	$	—	$	(6)	$	—	Accrued expenses and other liabilities

1412

Table of Contents

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 14nine months or less as of ~~September~~March 3031, ~~2022~~2023, are as follows (amounts in millions):

As of September 30, 2022

As of December 31, 2021

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

~~519~~475

64(5)

~~382~~509

20—

For the three ~~and nine~~ months ended ~~September~~March 3031, ~~2022~~2023 and ~~2021~~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.

65. ~~Held-to-Maturity~~Deferred ~~Investments~~Revenues

We ~~determine~~record ~~the~~deferred ~~classification~~revenues ofwhen ~~investments~~cash ~~(e.g.~~payments ~~held-to-maturity,~~are ~~available-for-sale~~received or ~~trading)~~due in ~~debt~~advance ~~securities~~of at the ~~time~~fulfillment of ~~purchase~~our associated performance obligations. The aggregate of the current and ~~reevaluate~~non-current ~~such~~balances ~~designation~~of deferred revenues as of ~~each~~March 31, ~~reporting~~2023 ~~period~~and December 31, 2022, were $1.7 ~~Investments~~billion inand ~~debt~~$2.1 ~~securities~~billion, ~~are~~respectively. ~~designated~~For asthe ~~held-to-maturity~~three ~~when~~months weended ~~have~~March 31, 2023, the ~~positive~~additions ~~intent~~to ~~and~~our ~~ability~~deferred revenues balance were primarily due to ~~hold~~cash payments received or due in advance of satisfying our performance obligations, while the ~~securities~~reductions to ~~maturity.~~our ~~Held-to-maturity~~deferred ~~investments~~revenues ~~are~~balance ~~carried~~were atprimarily ~~amortized~~due ~~cost.~~to ~~Interest~~the ~~and~~recognition ~~amortization~~of revenues upon fulfillment of ~~discounts~~our ~~and~~performance ~~premiums~~obligations, which iswere ~~computed~~in ~~under~~the ordinary course of business. During the ~~effective~~three ~~interest~~months ~~method~~ended March 31, ~~are~~2023 ~~included~~and inMarch 31, ~~“Interest~~2022, $1.3 billion and ~~other~~$0.7 billion, ~~(income) expense~~respectively, ~~net”~~of revenues were recognized that were included in ~~our~~the ~~condensed~~deferred ~~consolidated~~revenues ~~statements~~balance at the beginning of ~~operations.~~the period.

~~When~~As of March 31, 2023, the ~~fair~~aggregate ~~value~~amount of ancontracted ~~investment~~revenues ~~classified~~allocated ~~as held-~~to~~-maturity~~ isour ~~less~~unsatisfied ~~than~~performance ~~its~~obligations ~~amortized~~was ~~cost~~$1.8 billion, wewhich ~~assess~~included ~~whether~~our ordeferred ~~not~~revenues ~~(i)~~balances weand ~~have~~amounts ~~the intent~~ to ~~sell~~be ~~the~~invoiced ~~instrument~~and orrecognized ~~(ii)~~as itrevenue isin ~~more~~future ~~likely~~periods. ~~than~~We ~~not~~expect ~~that~~to werecognize ~~will~~approximately be$1.8 ~~required~~billion toover ~~sell~~ the ~~instrument~~next ~~before~~12 ~~its~~months. ~~anticipated~~This ~~recovery.~~balance Ifdid ~~either~~not ofinclude ~~these~~an ~~conditions~~estimate isfor ~~met,~~variable weconsideration ~~recognize~~arising anfrom ~~other~~sales-~~than-temporary~~based ~~impairment~~royalty ~~for~~license ~~the~~revenue ~~difference~~in ~~between~~excess of the ~~instrument’s~~contractual ~~amortized~~minimum ~~cost~~guarantee ~~basis~~or ~~and~~any ~~its~~estimated ~~fair value, and include such~~ amounts inof ~~“Interest~~variable ~~and~~consideration ~~other~~that ~~(income)~~are ~~expense,~~subject ~~net”~~to constraint in ~~our~~accordance ~~condensed~~with ~~consolidated~~the ~~statements~~revenue ofaccounting ~~operations~~standard.

~~The following table summarizes the Company's held-to-maturity investments at September 30, 2022 (amount in millions):~~6. Debt

			Amortized Cost						Gross Unrealized Gains						Gross Unrealized losses						Estimated Fair Value(Level 1)
U.S. treasuries and government agency securities			$	2,945					$	—					$	—					$	2,945

At September 30, 2022, all contractual maturities of held-to-maturity investments were less than 12 months and amortized costs of these investments approximates fair value.

7. 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 September 30, 2022 and December 31, 2021, were $1.0 billion and $1.1 billion, respectively. For the nine months ended September 30, 2022, the additions to our deferred revenues balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenues balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, all of which were in the ordinary course of business. During the three and nine months ended September 30, 2022, $30 million and $1.0 billion, respectively, of revenues were recognized that were included in the deferred revenues balance at December 31, 2021. During the three and nine months ended September 30, 2021, $87 million and $1.7 billion, respectively, of revenues were recognized that were included in the deferred revenues balance at December 31, 2020.

Table of Contents

As of September 30, 2022, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations was $1.5 billion, which included our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1.4 billion over the next 12 months and approximately $0.1 billion in the subsequent 12-month period. 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.

8. Debt

Credit Facilities

As of ~~September~~March 3031, ~~2022~~2023 and December 31, ~~2021~~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 ~~September~~March 3031, ~~2022~~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, ~~2021~~2022 for further details regarding the Credit Agreement and its key terms.

~~Unsecured Senior Notes~~13

As of September 30, 2022 and December 31, 2021, we had $3.7 billion of gross unsecured senior notes outstanding. A summary of our outstanding unsecured senior notes is as follows (amounts in millions):

				At September 30, 2022				At December 31, 2021
Unsecured Senior Notes	Interest Rate	Semi-Annual Interest Payments Due On	Maturity	Principal		Fair Value (Level 2)		Principal		Fair Value (Level 2)
2026 Notes	3.40%	Mar. 15 & Sept. 15	Sept. 2026	$	850	$	807	$	850	$	912
2027 Notes	3.40%	Jun. 15 & Dec. 15	Jun. 2027	400		374		400		430
2030 Notes	1.35%	Mar. 15 & Sept. 15	Sept. 2030	500		380		500		463
2047 Notes	4.50%	Jun. 15 & Dec. 15	Jun. 2047	400		352		400		480
2050 Notes	2.50%	Mar. 15 & Sept. 15	Sept. 2050	1,500		924		1,500		1,320
Total gross long-term debt				$	3,650			$	3,650
Unamortized discount and deferred financing costs				(40)				(42)
Total net carrying amount				$	3,610			$	3,608

We were in compliance with the terms of the notes outstanding as of September 30, 2022. As of September 30, 2022, with the exception of our 2026 Notes and 2027 Notes, which are scheduled to mature in September 2026 and June 2027, respectively, no other contractual principal repayments of our long-term debt were due within the next five years.

Refer to Note 13 contained in our Annual Report on Form 10-K for the year ended December 31, 2021 for further details regarding key terms under our indentures that govern our outstanding notes.

Table of Contents

~~9. Accumulated~~Unsecured ~~Other~~Senior ~~Comprehensive Income (Loss)~~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.

7. Accumulated Other Comprehensive Income (Loss)

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

	For the Nine Months Ended September 30, 2022
	For the Three Months Ended March 31, 2023
	Foreign currencytranslationadjustments		~~Unrealized gain (loss) on available-for-sale securities~~		Unrealized gain (loss)on forwardcontracts		Total
Balance at December 31, 2021	$	(606)	$	3	$	25	$	(578)
Balance at December 31, 2022	$	(636)			$	11	$	(625)
Other comprehensive income (loss) before reclassifications	~~(64)~~7		24		67—		277
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		~~(5)~~		(3311)		(3811)
Balance at September 30, 2022	$	(670)	$	22	$	59	$	(589)
Balance at March 31, 2023	$	(629)			$	—	$	(629)

	For the Nine Months Ended September 30, 2021
	For the Three Months Ended March 31, 2022
	Foreign currencytranslationadjustments		Unrealized gain (loss)on available-for-sale securities		Unrealized gain (loss)on forwardcontracts		Total
Balance at December 31, 2020	$	(589)	$	(5)	$	(28)	$	(622)
Balance at December 31, 2021	$	(606)	$	3	$	25	$	(578)
Other comprehensive income (loss) before reclassifications	(84)		—2		276		194
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	—		3(1)		13(11)		16(12)
Balance at September 30, 2021	$	(597)	$	(2)	$	12	$	(587)
Balance at March 31, 2022	$	(610)	$	4	$	20	$	(586)

~~10. Operating Segments and Geographic Regions~~14

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; 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.

Table of Contents

~~Information~~8. Operating onSegments ~~reportable segment net revenues~~ and ~~operating~~Geographic ~~income for the three months ended September 30, 2022 and 2021, are presented below (amounts in millions):~~Regions

	Three Months Ended September 30, 2022
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	480	$	534	$	692	$	1,706
Intersegment net revenues (1)	—		9		—		9
Segment net revenues	$	480	$	543	$	692	$	1,715
Segment operating income	$	153	$	166	$	297	$	616
	Three Months Ended September 30, 2021
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	641	$	478	$	652	$	1,771
Intersegment net revenues (1)	—		15		—		15
Segment net revenues	$	641	$	493	$	652	$	1,786
Segment operating income	$	244	$	188	$	303	$	735

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.

~~Information~~Our onoperating ~~reportable~~segments ~~segment~~are ~~net~~also ~~revenues~~consistent ~~and~~with ~~operating~~our ~~income~~internal ~~for~~organizational structure, the ~~nine~~way ~~months~~we ~~ended~~assess ~~September 30,~~operating ~~2022~~performance and ~~2021~~allocate resources, ~~are~~and ~~presented~~the ~~below~~availability ~~(amounts~~of inseparate ~~millions):~~financial information. We do not aggregate operating segments.

	Nine Months Ended September 30, 2022
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	1,423	$	1,189	$	2,058	$	4,670
Intersegment net revenues (1)	—		29		—		29
Segment net revenues	$	1,423	$	1,218	$	2,058	$	4,699
Segment operating income	$	304	$	314	$	811	$	1,429
	Nine Months Ended September 30, 2021
	Activision		Blizzard		King		Total
Segment Revenues
Net revenues from external customers	$	2,321	$	1,347	$	1,896	$	5,564
Intersegment net revenues (1)	—		62		—		62
Segment net revenues	$	2,321	$	1,409	$	1,896	$	5,626
Segment operating income	$	1,049	$	537	$	755	$	2,341

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.

1815

Table of Contents

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

	Three Months Ended September 30,				Nine Months Ended September 30,
			Three Months Ended March 31,
	2022		2021		2022		2021
					2023		2022
Reconciliation to consolidated net revenues:
Segment net revenues	$	~~1,715~~	$	~~1,786~~	$	41,~~699~~762	$	51,~~626~~409
Revenues from non-reportable segments (1)	~~123~~		~~109~~		~~278~~101		~~303~~81
Net effect from recognition (deferral) of deferred net revenues (2)	~~(47)~~		~~190~~		~~246~~528		~~773~~287
Elimination of intersegment revenues (3)	~~(9)~~		~~(15)~~		(298)		(629)
Consolidated net revenues	$	~~1,782~~	$	~~2,070~~	$	52,~~194~~383	$	61,~~640~~768
Reconciliation to consolidated income before income tax expense:
Segment operating income	$	~~616~~	$	~~735~~	$	~~1,429~~476	$	~~2,341~~355
Operating income (loss) from non-reportable segments (1)	14		4		286		~~(12)~~19
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)	~~(25)~~		~~154~~		~~210~~471		~~562~~235
Share-based compensation expense (4)	~~(102)~~		~~(64)~~		(~~301~~124)		(~~259~~98)
Amortization of intangible assets	(6)		(2)		(9)		(8)
Amortization of intangible assets (5)					(4)		(2)
Restructuring and related costs	(2)		(3)		3		(46)
Restructuring and related costs (6)					—		2
Merger and acquisition-related fees and other expenses (5)	(10)		—		(58)		—
Partnership wind down and related costs (7)					(4)		—
Consolidated operating income	485		824		1,302		2,578
Merger and acquisition-related fees and other expenses (8)					(21)		(32)
Interest and other (income) expense, net	(15)		65		16		52
Consolidated operating income					800		479
Consolidated income before income tax expense	$	500	$	759	$	1,286	$	2,526
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)~~Expenses~~Reflects expenses related to share-based compensation~~, including $25 million and $54 million for the three and nine months ended September 30, 2022, respectively, related to liability awards accounted for under ASC 718~~.

(5)Reflects ~~fees~~amortization ~~and~~of ~~other~~intangible ~~expenses~~assets ~~related~~from topurchase ~~our~~price ~~proposed transaction with Microsoft, which primarily consist of legal and advisory fees~~accounting.

19(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.

Table of Contents

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, ~~for the three months ended September 30, 2022 and 2021,~~ were as follows (amounts in millions):

	Three Months Ended September 30, 2022
	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)	$	~~501~~902	$	~~421~~525	$	~~693~~738	$	—	$	(98)	$	12,~~606~~157
Retail channels	23102		2		—		—		—		25104
Other (2)	96		244		—		~~118~~112		—		~~151~~122
Total consolidated net revenues	$	~~533~~1,010	$	~~447~~531	$	~~693~~738	$	~~118~~112	$	(98)	$	12,~~782~~383
Change in deferred revenues:
Digital online channels (1)	$	(36362)	$	96(87)	$	(1)	$	—	$	—	$	59(448)
Retail channels	(1768)		—(1)		—		—		—		(1769)
Other (2)	—		—		—		5(11)		—		5(11)
Total change in deferred revenues	$	(53430)	$	96(88)	$	(1)	$	5(11)	$	—	$	47(528)
Segment net revenues:
Digital online channels (1)	$	~~465~~540	$	~~517~~438	$	~~692~~739	$	—	$	(98)	$	1,~~665~~709
Retail channels	634		21		—		—		—		835
Other (2)	96		244		—		~~123~~101		—		~~156~~111
Total segment net revenues	$	~~480~~580	$	~~543~~443	$	~~692~~739	$	~~123~~101	$	(98)	$	1,~~829~~855

	Three Months Ended September 30, 2021
	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)	$	~~723~~616	$	~~493~~300	$	~~651~~682	$	—	$	(159)	$	1,~~852~~589
Retail channels	6383		62		—		—		—		6985
Other (2)	811		332		—		~~108~~81		—		~~149~~94
Total consolidated net revenues	$	~~794~~710	$	~~532~~304	$	~~651~~682	$	~~108~~81	$	(159)	$	21,~~070~~768
Change in deferred revenues:
Digital online channels (1)	$	(~~128~~192)	$	(3730)	$	1—	$	—	$	—	$	(~~164~~222)
Retail channels	(2565)		~~(2)~~1		—		—		—		(2764)
Other (2)	—		—(1)		—		1—		—		(1)
Total change in deferred revenues	$	(~~153~~257)	$	(3930)	$	1—	$	1—	$	—	$	(~~190~~287)
Segment net revenues:
Digital online channels (1)	$	~~595~~424	$	~~456~~270	$	~~652~~682	$	—	$	(159)	$	1,~~688~~367
Retail channels	3818		43		—		—		—		4221
Other (2)	811		331		—		~~109~~81		—		~~150~~93
Total segment net revenues	$	~~641~~453	$	~~493~~274	$	~~652~~682	$	~~109~~81	$	(159)	$	1,~~880~~481

2017

Table of Contents

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the nine months ended September 30, 2022 and 2021, were as follows (amounts in millions):

	Nine Months Ended September 30, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	1,643	$	994	$	2,060	$	—	$	(29)	$	4,668
Retail channels	170		7		—		—		—		177
Other (2)	31		47		—		271		—		349
Total consolidated net revenues	$	1,844	$	1,048	$	2,060	$	271	$	(29)	$	5,194
Change in deferred revenues:
Digital online channels (1)	$	(286)	$	171	$	(2)	$	—	$	—	$	(117)
Retail channels	(135)		—		—		—		—		(135)
Other (2)	—		(1)		—		7		—		6
Total change in deferred revenues	$	(421)	$	170	$	(2)	$	7	$	—	$	(246)
Segment net revenues:
Digital online channels (1)	$	1,357	$	1,165	$	2,058	$	—	$	(29)	$	4,551
Retail channels	35		7		—		—		—		42
Other (2)	31		46		—		278		—		355
Total segment net revenues	$	1,423	$	1,218	$	2,058	$	278	$	(29)	$	4,948

	Nine Months Ended September 30, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by distribution channel:
Digital online channels (1)	$	2,625	$	1,426	$	1,894	$	—	$	(62)	$	5,883
Retail channels	334		20		—		—		—		354
Other (2)	38		71		—		294		—		403
Total consolidated net revenues	$	2,997	$	1,517	$	1,894	$	294	$	(62)	$	6,640
Change in deferred revenues:
Digital online channels (1)	$	(491)	$	(101)	$	2	$	—	$	—	$	(590)
Retail channels	(185)		(7)		—		—		—		(192)
Other (2)	—		—		—		9		—		9
Total change in deferred revenues	$	(676)	$	(108)	$	2	$	9	$	—	$	(773)
Segment net revenues:
Digital online channels (1)	$	2,134	$	1,325	$	1,896	$	—	$	(62)	$	5,293
Retail channels	149		13		—		—		—		162
Other (2)	38		71		—		303		—		412
Total segment net revenues	$	2,321	$	1,409	$	1,896	$	303	$	(62)	$	5,867

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

Table of Contents

(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.

Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, ~~for the three months ended September 30, 2022 and 2021,~~ were as follows (amounts in millions):

	Three Months Ended September 30, 2022
	Three Months Ended March 31, 2023
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	~~358~~652	$	~~190~~257	$	~~457~~473	$	—1	$	(65)	$	~~999~~1,378
EMEA (1)	~~117~~256		~~107~~153		~~158~~181		~~118~~111		(2)		~~498~~699
Asia Pacific	58102		~~150~~121		7884		—		(1)		~~285~~306
Total consolidated net revenues	$	~~533~~1,010	$	~~447~~531	$	~~693~~738	$	~~118~~112	$	(98)	$	12,~~782~~383
Change in deferred revenues:
Americas	$	(33280)	$	42(44)	$	—1	$	—	$	—	$	9(323)
EMEA (1)	(17125)		18(28)		—		5(11)		—		6(164)
Asia Pacific	(325)		36(16)		~~(1)~~—		—		—		32(41)
Total change in deferred revenues	$	(53430)	$	96(88)	$	(1)	$	5(11)	$	—	$	47(528)
Segment net revenues:
Americas	$	~~325~~372	$	~~232~~213	$	~~457~~474	$	—1	$	(65)	$	1,~~008~~055
EMEA (1)	~~100~~131		125		~~158~~181		~~123~~100		(2)		~~504~~535
Asia Pacific	5577		~~186~~105		7784		—		(1)		~~317~~265
Total segment net revenues	$	~~480~~580	$	~~543~~443	$	~~692~~739	$	~~123~~101	$	(98)	$	1,~~829~~855

	Three Months Ended September 30, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	515	$	243	$	417	$	—	$	(9)	$	1,166
EMEA (1)	187		166		163		108		(5)		619
Asia Pacific	92		123		71		—		(1)		285
Total consolidated net revenues	$	794	$	532	$	651	$	108	$	(15)	$	2,070
Change in deferred revenues:
Americas	$	(110)	$	(27)	$	1	$	—	$	—	$	(136)
EMEA (1)	(42)		(22)		—		1		—		(63)
Asia Pacific	(1)		10		—		—		—		9
Total change in deferred revenues	$	(153)	$	(39)	$	1	$	1	$	—	$	(190)
Segment net revenues:
Americas	$	405	$	216	$	418	$	—	$	(9)	$	1,030
EMEA (1)	145		144		163		109		(5)		556
Asia Pacific	91		133		71		—		(1)		294
Total segment net revenues	$	641	$	493	$	652	$	109	$	(15)	$	1,880

Table of Contents

Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2022 and 2021, were as follows (amounts in millions):



	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

	Nine Months Ended September 30, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	1,214	$	463	$	1,341	$	—	$	(19)	$	2,999
EMEA (1)	448		291		491		271		(8)		1,493
Asia Pacific	182		294		228		—		(2)		702
Total consolidated net revenues	$	1,844	$	1,048	$	2,060	$	271	$	(29)	$	5,194
Change in deferred revenues:
Americas	$	(258)	$	82	$	(2)	$	—	$	—	$	(178)
EMEA (1)	(141)		30		(1)		7		—		(105)
Asia Pacific	(22)		58		1		—		—		37
Total change in deferred revenues	$	(421)	$	170	$	(2)	$	7	$	—	$	(246)
Segment net revenues:
Americas	$	956	$	545	$	1,339	$	—	$	(19)	$	2,821
EMEA (1)	307		321		490		278		(8)		1,388
Asia Pacific	160		352		229		—		(2)		739
Total segment net revenues	$	1,423	$	1,218	$	2,058	$	278	$	(29)	$	4,948

	Nine Months Ended September 30, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (2)		Total
Net revenues by geographic region:
Americas	$	1,942	$	698	$	1,215	$	—	$	(36)	$	3,819
EMEA (1)	780		507		485		294		(21)		2,045
Asia Pacific	275		312		194		—		(5)		776
Total consolidated net revenues	$	2,997	$	1,517	$	1,894	$	294	$	(62)	$	6,640
Change in deferred revenues:
Americas	$	(420)	$	(57)	$	2	$	—	$	—	$	(475)
EMEA (1)	(213)		(55)		(1)		9		—		(260)
Asia Pacific	(43)		4		1		—		—		(38)
Total change in deferred revenues	$	(676)	$	(108)	$	2	$	9	$	—	$	(773)
Segment net revenues:
Americas	$	1,522	$	641	$	1,217	$	—	$	(36)	$	3,344
EMEA (1)	567		452		484		303		(21)		1,785
Asia Pacific	232		316		195		—		(5)		738
Total segment net revenues	$	2,321	$	1,409	$	1,896	$	303	$	(62)	$	5,867

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

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

23The 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):

Table of Contents

The Company’s net revenues in the U.S. were 49% of consolidated net revenues for both the three months ended September 30, 2022 and 2021. The Company’s net revenues in the United Kingdom (“U.K.”) were 10% of consolidated net revenues for both the three months ended September 30, 2022 and 2021. No other country’s net revenues exceeded 10% of consolidated net revenues for the three months ended September 30, 2022 or 2021.



	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

The Company’s net revenues in the U.S. were 51% and 50% of consolidated net revenues for the nine months ended September 30, 2022 and 2021, respectively. The Company’s net revenues in the U.K. were 10% of consolidated net revenues for both the nine months ended September 30, 2022 and 2021. No other country’s net revenues exceeded 10% of consolidated net revenues for the nine months ended September 30, 2022 or 2021.



	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

~~Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2022 and 2021, were as follows (amounts in millions):~~20

	Three Months Ended September 30, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	313	$	23	$	—	$	—	$	—	$	336
PC	75		279		18		—		(9)		363
Mobile and ancillary (1)	136		121		675		—		—		932
Other (2)	9		24		—		118		—		151
Total consolidated net revenues	$	533	$	447	$	693	$	118	$	(9)	$	1,782
Change in deferred revenues:
Console	$	(43)	$	(6)	$	—	$	—	$	—	$	(49)
PC	(6)		35		—		—		—		29
Mobile and ancillary (1)	(4)		67		(1)		—		—		62
Other (2)	—		—		—		5		—		5
Total change in deferred revenues	$	(53)	$	96	$	(1)	$	5	$	—	$	47
Segment net revenues:
Console	$	270	$	17	$	—	$	—	$	—	$	287
PC	69		314		18		—		(9)		392
Mobile and ancillary (1)	132		188		674		—		—		994
Other (2)	9		24		—		123		—		156
Total segment net revenues	$	480	$	543	$	692	$	123	$	(9)	$	1,829

Table of Contents

	Three Months Ended September 30, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	480	$	43	$	—	$	—	$	—	$	523
PC	140		434		19		—		(15)		578
Mobile and ancillary (1)	166		22		632		—		—		820
Other (2)	8		33		—		108		—		149
Total consolidated net revenues	$	794	$	532	$	651	$	108	$	(15)	$	2,070
Change in deferred revenues:
Console	$	(119)	$	5	$	—	$	—	$	—	$	(114)
PC	(33)		(47)		—		—		—		(80)
Mobile and ancillary (1)	(1)		3		1		—		—		3
Other (2)	—		—		—		1		—		1
Total change in deferred revenues	$	(153)	$	(39)	$	1	$	1	$	—	$	(190)
Segment net revenues:
Console	$	361	$	48	$	—	$	—	$	—	$	409
PC	107		387		19		—		(15)		498
Mobile and ancillary (1)	165		25		633		—		—		823
Other (2)	8		33		—		109		—		150
Total segment net revenues	$	641	$	493	$	652	$	109	$	(15)	$	1,880

Table of Contents

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2022 and 2021, were as follows (amounts in millions):

	Nine Months Ended September 30, 2022
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	1,129	$	66	$	—	$	—	$	—	$	1,195
PC	297		760		52		—		(29)		1,080
Mobile and ancillary (1)	387		175		2,008		—		—		2,570
Other (2)	31		47		—		271		—		349
Total consolidated net revenues	$	1,844	$	1,048	$	2,060	$	271	$	(29)	$	5,194
Change in deferred revenues:
Console	$	(358)	$	(8)	$	—	$	—	$	—	$	(366)
PC	(84)		56		—		—		—		(28)
Mobile and ancillary (1)	21		123		(2)		—		—		142
Other (2)	—		(1)		—		7		—		6
Total change in deferred revenues	$	(421)	$	170	$	(2)	$	7	$	—	$	(246)
Segment net revenues:
Console	$	771	$	58	$	—	$	—	$	—	$	829
PC	213		816		52		—		(29)		1,052
Mobile and ancillary (1)	408		298		2,006		—		—		2,712
Other (2)	31		46		—		278		—		355
Total segment net revenues	$	1,423	$	1,218	$	2,058	$	278	$	(29)	$	4,948

Table of Contents

	Nine Months Ended September 30, 2021
	Activision		Blizzard		King		Non-reportable segments		Elimination of intersegment revenues (3)		Total
Net revenues by platform:
Console	$	1,971	$	90	$	—	$	—	$	—	$	2,061
PC	532		1,293		64		—		(62)		1,827
Mobile and ancillary (1)	456		63		1,830		—		—		2,349
Other (2)	38		71		—		294		—		403
Total consolidated net revenues	$	2,997	$	1,517	$	1,894	$	294	$	(62)	$	6,640
Change in deferred revenues:
Console	$	(530)	$	—	$	—	$	—	$	—	$	(530)
PC	(145)		(108)		—		—		—		(253)
Mobile and ancillary (1)	(1)		—		2		—		—		1
Other (2)	—		—		—		9		—		9
Total change in deferred revenues	$	(676)	$	(108)	$	2	$	9	$	—	$	(773)
Segment net revenues:
Console	$	1,441	$	90	$	—	$	—	$	—	$	1,531
PC	387		1,185		64		—		(62)		1,574
Mobile and ancillary (1)	455		63		1,832		—		—		2,350
Other (2)	38		71		—		303		—		412
Total segment net revenues	$	2,321	$	1,409	$	1,896	$	303	$	(62)	$	5,867

(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 September 30, 2022

At December 31, 2021

At March 31, 2023

At December 31, 2022

Long-lived assets* by geographic region:

Americas

~~264~~289

~~264~~279

EMEA

~~101~~102

~~122~~103

Asia Pacific

2021

Total long-lived assets by geographic region

~~386~~412

~~406~~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.

279. Share-Based Payments

Table of Contents

11. Share-Based Payments

Stock Option Activity

Stock option activity is as follows:

	Number of shares (in thousands)	Weighted-averageexercise price per stock option		Weighted-averageremainingcontractual term (in years)	Aggregateintrinsic value (in millions)
Outstanding stock options at December 31, 2021	9,133	$	57.77
Outstanding stock options at December 31, 2022	7,861	$	58.85
Granted	—	—
Exercised	(~~857~~262)	4651.7498
Forfeited	(~~162~~89)	7288.9768
Expired	(4625)	7477.3701
Outstanding stock options at September 30, 2022	8,068	$	58.54	6.38	$	150
Outstanding stock options at March 31, 2023	7,485	$	58.68	5.57	$	206
Vested and expected to vest at September 30, 2022	7,919	$	58.06	6.35	$	150
Vested and expected to vest at March 31, 2023	7,415	$	58.41	5.55	$	206
Exercisable at September 30, 2022	5,790	$	50.89	5.77	$	140
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.

At September 30, 2022, $15 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 0.75 years.

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.

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):21

	Number of shares	Weighted-average grantdate fair value per RSU
Unvested RSUs at December 31, 2021	13,258	$	75.51
Granted	5,600	79.90
Vested	(4,511)	77.09
Forfeited	(1,359)	82.90
Unvested RSUs at September 30, 2022	12,988	$	76.23

Table of Contents

AsThe offollowing ~~December~~table ~~31,~~summarizes ~~2021,~~our weRSU ~~had~~activity ~~recorded~~with ~~a share~~performance-based compensation liability related to compensation payments under our annual performance plans for 2021 which the Company determined to settle amounts not yet paid in stock as opposed to cash. During the nine months ended September 30RSUs, ~~2022,~~including wethose ~~settled~~with ~~the~~market ~~share-based compensation liability by granting 2~~conditions,~~777~~ ~~thousand~~presented ~~RSUs~~at ~~that~~100% ~~vested~~of ~~during~~ the ~~first~~target ~~quarter~~level ~~shortly after grant. The number of~~ shares ~~issued~~that ~~was~~may ~~based~~potentially onvest ~~the~~(amounts ~~Company’s closing stock price on the date of grant. The impact of this settlement was recorded~~ in ~~“Additional~~thousands, ~~Paid-In-Capital”~~except inper ~~our~~share ~~condensed consolidated statement of changes in shareholders’ equity for the nine months ended September 30, 2022.~~data):

At September 30, 2022, $417 million of total unrecognized compensation cost related to RSUs is expected to be recognized over a weighted-average period of 1.28 years. Of the total unrecognized compensation cost, $63 million was related to performance-based RSUs, which is expected to be recognized over a weighted-average period of 0.89 years.


	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

12As 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. ~~Restructuring~~ 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.

~~During~~At ~~2019~~March 31, we2023, ~~began~~$405 million ~~implementing a plan aimed at refocusing our resources on our largest opportunities and removing unnecessary levels~~ of ~~complexity~~total ~~from~~unrecognized ~~certain~~compensation ~~parts~~cost ofrelated ~~our~~to ~~business.~~RSUs ~~We substantially completed all actions under our plan and accrued for these costs accordingly as of December 31, 2021. The remaining activity under the plan~~ is ~~primarily~~expected ~~related~~ to ~~cash outlays to~~ be ~~made~~recognized over ~~time~~a toweighted-average ~~impacted~~period ~~personnel~~of 1.35 years.

~~The following table summarizes accrued restructuring and related costs included in “Accrued expenses and other liabilities” and “~~10. Other ~~liabilities” in our condensed consolidated balance sheet and the cumulative charges incurred~~ (~~amounts in millions~~Income): Expense, Net

	Severance and employee related costs		Other costs		Total
Balance at December 31, 2021	$	64	$	21	$	85
Cash payments	(12)		(8)		(20)
Non-cash charge and other adjustments	(3)		—		(3)
Balance at March 31, 2022	$	49	$	13	$	62
Cash payments	(12)		—		(12)
Non-cash charge and other adjustments	(2)		(5)		(7)
Balance at June 30, 2022	$	35	$	8	$	43
Cash payments	(7)		—		(7)
Non-cash charge and other adjustments	(1)		(1)		(2)
Balance at September 30, 2022	$	27	$	7	$	34

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

13. Interest and Other (Income) Expense, Net


	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)

~~Interest~~11. Income ~~and other (income) expense, net is comprised of the following (amounts in millions):~~Taxes

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Interest income	$	(51)	$	(1)	$	(68)	$	(4)
Interest expense from debt and amortization of debt discount and deferred financing costs	27		27		81		81
Realized and unrealized loss (gain) on equity investment	10		36		6		(35)
Other (income) expense, net	(1)		3		(3)		10
Interest and other (income) expense, net	$	(15)	$	65	$	16	$	52

Table of Contents

14. 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 $65155 million for the three months ended ~~September~~March 3031, ~~2022~~2023, reflects an effective tax rate of 1317%, which is ~~lower~~higher than the effective tax rate of 1615% for the three months ended ~~September~~March 3031, ~~2021~~2022. Our tax rate in the current quarter is ~~lower~~higher than in the prior year due to changes in the mix of our pre-tax income between countries, ~~partially~~and ~~offset~~an byincrease ~~discrete tax benefits recognized~~ in ~~2021,~~the ~~related~~U.K. tocorporate ~~a favorable~~ tax ~~return~~rate tothat ~~accrual~~became ~~adjustment~~effective ~~and~~in ~~excess tax benefits from share-based payments~~2023.

The income tax expense of $176 million for the nine months ended September 30, 2022, reflects an effective tax rate of 14%, which is lower than the effective tax rate of 15% for the nine months ended September 30, 2021. The decrease is primarily due to changes in the mix of our pre-tax income among countries, partially offset by a discrete tax benefit recognized in 2021 related to deferred tax remeasurement.22

~~The~~Table ~~effective tax rate~~ of 13% and 14% for the three and nine months ended September 30, 2022, respectively, are lower than the U.S. statutory rate of 21%, primarily due to lower taxes on foreign earnings and U.S. research and development credits.Contents

~~Activision~~The ~~Blizzard’s~~effective tax ~~years~~rate ~~after~~of ~~2008~~17% ~~remain~~for ~~open~~the tothree ~~examination~~months byended ~~certain~~March 31, ~~major~~2023, ~~taxing jurisdictions to which we are subject. The Internal Revenue Service~~ is ~~currently~~lower ~~examining~~than ~~our federal tax returns for~~ the ~~2012 through 2019 tax years. We also have several state and non-~~U.S. ~~audits~~statutory ~~pending.~~rate Inof ~~addition~~21%, ~~King’s pre-acquisition tax returns remain open in various jurisdictions,~~ primarily asdue ato ~~result~~lower oftaxes ~~transfer~~on ~~pricing~~foreign ~~matters.~~earnings ~~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.KS. ~~and~~research ~~Sweden. While the outcome of this process remains uncertain, it could result in an agreement that changes the allocation of profits~~ and ~~losses~~development 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 operatescredits.

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.

3012. Computation of Basic/Diluted Earnings Per Common Share

Table of Contents

15. Computation of Basic/Diluted Earnings Per Common Share

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
			For the Three Months Ended March 31,
	2022		2021		2022		2021
					2023		2022
Numerator:
Consolidated net income	$	~~435~~	$	~~639~~	$	~~1,110~~740	$	~~2,135~~395
Denominator:
Denominator for basic earnings per common share—weighted-average common shares outstanding	~~782~~		~~778~~		~~781~~785		~~777~~780
Effect of dilutive stock options and awards under the treasury stock method	7		5		7		76
Denominator for diluted earnings per common share—weighted-average common shares outstanding plus dilutive common shares under the treasury stock method	~~789~~		~~783~~		~~788~~792		~~784~~786
Basic earnings per common share	$	~~0.56~~	$	~~0.82~~	$	10.4294	$	20.7551
Diluted earnings per common share	$	~~0.55~~	$	~~0.82~~	$	10.4193	$	20.7250

The vesting of certain of our employee-related restricted stock units is contingent upon the satisfaction of predefined performance measures. The shares underlying these equity awards are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Additionally, potential common shares are not included in the denominator of the diluted earnings per common share calculation when the inclusion of such shares would be anti-dilutive.23

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

	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
	2022	2021	2022	2021
Restricted stock units with performance measures not yet met	2	3	2	3
Anti-dilutive employee stock options	2	2	2	2

16. Capital Transactions

Repurchase Programs

On January 27, 2021, our Board of Directors authorized a stock repurchase program under which we are authorized to repurchase up to $4 billion of our common stock during the two-year period from February 14, 2021 until the earlier of February 13, 2023 and a determination by the Board of Directors to discontinue the repurchase program. As of September 30, 2022, we had not repurchased any shares under this program and are restricted from making any such repurchases during the period between the execution of the Merger Agreement with Microsoft and the Effective Time without Microsoft’s approval (which may not be unreasonably withheld, conditioned, or delayed).

Table of Contents

~~Dividends~~13. Commitments and Contingencies

On February 3, 2022, our Board of Directors declared a cash dividend of $0.47 per common share. On May 6, 2022, we made an aggregate cash dividend payment of $367 million to shareholders of record at the close of business on April 15, 2022.

On February 4, 2021, our Board of Directors declared a cash dividend of $0.47 per common share. On May 6, 2021, we made an aggregate cash dividend payment of $365 million to shareholders of record at the close of business on April 15, 2021.

17. 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 ~~January~~June 1029, 2023; the June 29, 2023 hearing date was vacated and has not been reset. ~~The~~On October 28, 2022, the February 27, 2023 trial date ~~has~~was ~~been~~ vacated and a new trial date will be set by the Court. ~~The~~Defendants ~~Court~~were ~~set~~granted leave to file a ~~conference~~cross ~~for~~complaint ~~March~~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 ~~discuss~~the ~~trial~~complex ~~scheduling~~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.

3224

Table of Contents

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.

The Company is cooperating with an investigation by the SEC regarding disclosures on employment matters and related issues including responding to subpoenas from the SEC. The SEC has also issued subpoenas to a number of current and former executives and other employees in connection with this matter.

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.

Table of Contents

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. 2:2222cv-~~cv00875~~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 ~~between~~with ~~the Company and~~ Microsoft omitted certain purportedly material information which rendered the preliminary proxy statement incomplete and misleading. Specifically, the complaints allege that the preliminary proxy statement failed to disclose material information regarding the sales process, the Company’s projections and the financial analyses of the Company’s financial advisor. The complaints sought, among other things, an order to enjoin the transaction unless additional disclosures were issued; and, if the transaction closes, damages. The Watson complaint also alleges that the Company’s directors entered into the transaction for self-interested reasons, including receipt of personal benefits in the transaction. All of the complaints have been voluntarily dismissed.

33Following 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.

Table of Contents

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. Specifically, the demands seek to investigate Mr. Kotick’s role in the proposed transaction with one of the demands alleging that Mr. Kotick’s position at the Company was at risk given workplace issues and he chose to pursue a transaction rather than resign. Such demand further alleges that Mr. Kotick agreed to a price range without authorization from our Board of Directors and that our Board of Directors allowed Mr. Kotick to control the transaction process. Such demand also alleges that the transaction price is inadequate because Microsoft’s opportunistic offer took advantage of the Company’s purportedly depressed stock price and that management may have attempted to validate the consideration through downward adjustments to the Company’s long-range plan.

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 ishas fully ~~cooperating~~cooperated with these investigations.

34Commitments 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.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Business Overview

Merger Agreement

On January 18, 2022, we entered into an Agreement and Plan of Merger Agreement (“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, ~~following~~our ~~consummation~~acquisition ofwill be accomplished through the merger of Merger Sub with and into the Company (the “Merger”), with the Company ~~will~~surviving bethe 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. The consummation of the Merger remains subject to customary closing conditions, including satisfaction of certain regulatory approvals. On April 28, 2022, the Company’s stockholders adopted the Merger Agreement at a special meeting of stockholders. The Merger is currently expected to close in Microsoft’s fiscal year ending June 30, 2023.

~~For~~If ~~additional~~the ~~information~~Merger ~~related~~Agreement tois ~~the~~terminated ~~Merger~~under ~~Agreement~~certain specified circumstances, ~~please~~we ~~refer~~or Microsoft will be required to ~~the~~pay ~~Definitive~~a ~~Proxy~~termination ~~Statement~~fee. onWe ~~Schedule~~will ~~14A~~be ~~filed~~required ~~with~~to ~~the~~pay UMicrosoft a termination fee of approximately $2.S.27 ~~Securities~~billion ~~and~~under ~~Exchange~~specified ~~Commission~~circumstances, (including termination of the ~~“SEC”)~~Merger onAgreement ~~March~~due 21to our material breach of representations, ~~2022~~warranties, ascovenants ~~supplemented~~or byagreements in the ~~Current~~Merger ~~Report~~Agreement. onMicrosoft ~~Form~~will ~~8-K~~be ~~filed~~required ~~with~~to ~~the~~pay ~~SEC~~us ona ~~April~~reverse ~~15,~~termination ~~2022~~fee under specified circumstances, asincluding ~~well~~termination asof ~~Part~~the IMerger ~~Item~~Agreement 1due ~~“Business”~~to ofa ~~our~~permanent ~~Annual~~injunction ~~Report~~arising onfrom ~~Form~~Antitrust ~~10-K~~Laws ~~for~~(as ~~the~~defined ~~year~~in ~~ended~~the ~~December~~Merger ~~31,~~Agreement) ~~2021,~~when ~~and~~we ~~other~~are ~~relevant~~not ~~materials~~then in ~~connection~~material ~~with~~breach ~~the~~of ~~proposed~~any ~~transaction~~provision ~~with~~of ~~Microsoft~~the ~~that~~Merger weAgreement ~~will~~and ~~file~~if ~~with~~certain ~~the~~other ~~SEC~~conditions ~~and~~are ~~that~~met, ~~will~~in ~~contain~~an ~~important~~amount ~~information~~equal ~~about~~to ~~the~~$3.0 ~~Company~~billion ~~and~~if the ~~Merger~~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, 202 2, 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 to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Table of Contents

Employment Matters

We are subject to legal proceedings regarding our workplace and are experiencing adverse effects related to these proceedings and to concerns raised about our workplace. For information about these matters, see ~~Note~~Part 17I, ofItem ~~the~~1A ~~notes~~“Risk toFactors” contained in our Annual Report on Form 10-K for the ~~condensed~~year ~~consolidated~~ended ~~financial~~December ~~statements~~31, ~~included~~2022 inand ~~Item~~Note 113 ofto ~~this~~the ~~Quarterly~~condensed ~~Report~~consolidated onfinancial ~~Form~~statements ~~10-Q~~included ~~and~~in Part I, Item 1A1 ~~“Risk Factors”~~ of ~~our~~this ~~Annual~~Quarterly Report on Form 10-~~K for the year ended December 31, 2021~~Q.

In May 2022, a group of quality assurance workers at our Raven Software studio in Wisconsin voted in favor of forming a union with the Communication Workers of America. In July 2022, a group of quality assurance workers for Blizzard in New York announced the formation of a union and have filed for union representation with the U.S. National Labor Relations Board (the “NLRB”). The NLRB recently announced that the election will take place by mail-in ballot, which will be counted on November 18, 2022.

Our Segments

(i) Activision Publishing, Inc.

Table of Contents

(ii) Blizzard Entertainment, Inc.

(iii) King Digital Entertainment

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.

Table of Contents

Business Results and Highlights

Financial Results

For the three months ended ~~September~~March 3031, ~~2022~~2023:

•consolidated net revenues ~~decreased~~increased 1435% to $12.84 billion and consolidated operating income ~~decreased~~increased 4167% to $~~485~~800 million, as compared to consolidated net revenues of $2.1.8 billion and consolidated operating income of $~~824~~479 million in ~~2021~~2022; ~~and~~

•diluted earnings per common share ~~decreased~~increased 3386% to $0.5593, as compared to $0.8250 in ~~2021.~~2022; and

~~For~~•cash ~~the~~flows ~~nine~~from ~~months~~operating ~~ended~~activities ~~September 30~~were approximately $577 million, ~~2022:~~a decrease of 10%, as compared to $642 million in 2022.

~~•consolidated~~Since ~~net~~certain ~~revenues~~of ~~decreased~~our ~~22%~~games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to ~~$5.2~~the ~~billion~~online functionality from the sale of these games and ~~consolidated~~recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. Net revenues and operating income ~~decreased~~for ~~49%~~the tothree ~~$1.3~~months ~~billion~~ended March 31, as2023, ~~compared~~include toa ~~consolidated~~ net ~~revenues~~effect of $~~6.6~~528 ~~billion~~million and ~~consolidated~~$471 ~~operating~~million, ~~income~~respectively, from the recognition of ~~$2.6~~deferred ~~billion~~net inrevenues ~~2021;~~and related cost of revenues.

•diluted earnings per common share decreased 48% to $1.41, as compared to $2.72 in 2021; and

•cash flows from operating activities were approximately $1.1 billion, a decrease of 37%, as compared to $1.8 billion in 2021.

Since certain of our games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to the online functionality from the sale of these games and recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. Net revenues and operating income for the three months ended September 30, 2022, include a net effect of $47 million and $25 million, respectively, from the deferral of net revenues and related cost of revenues. Net revenues and operating income for the nine months ended September 30, 2022, include a net effect of $246 million and $210 million, respectively, from the recognition of deferred net revenues and related cost of revenues.

Table of Contents

The percentages of our consolidated net revenues from revenue sources that are recognized at a “point-in-time” and from sources that are recognized “over-time and other” were as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
			For the Three Months Ended March 31,
	2022		2021		2022		2021
					2023		2022
Point-in-time (1)	12	%	14	%	109	%	119	%
Over-time and other (2)	88	%	86	%	9091	%	8991	%

(1)Revenues recognized at a “point-in-time” are primarily comprised of the portion of revenues from software products that are recognized when the customer takes control of the product (i.e., upon delivery of the software product) and revenues from our Distribution business.

(2)Revenues recognized “over-time and other revenue” are primarily comprised of revenues associated with the online functionality of our games, in-game purchases, and subscriptions.

Table of Contents

Summary of Title Release Dates

Throughout the year we regularly release new content through seasonal and live services updates within our franchises, including Call of Duty, Warcraft, and Candy Crush. Below is a summary of release dates for certain of our titles, including those discussed throughout our analysis for our operating metrics, consolidated results, and operating segment results.

Title						Release Date
Call of Duty: Vanguard						November 2021, and when referred to herein, is inclusive of Call of Duty: Warzone from the release of Call of Duty: Vanguard Season 1 content and Call of Duty: Warzone Pacific on December 8, 2021
Call of Duty: Modern Warfare® II						October 2022, and when referred to herein, is inclusive of Call of Duty: Warzone 2.0 from its release on November 16, 2022
Call of Duty: Vanguard						November 2021, and when referred to herein, is inclusive of Call of Duty: Warzone from the release of Call of Duty: Vanguard Season 1 content and Call of Duty: Warzone Pacific on December 8, 2021 through November 16, 2022
Call of Duty: Black Ops Cold War						November 2020, and when referred to herein, is inclusive of Call of Duty: Warzone from the release of Call of Duty: Black Ops Cold War Season 1 content on December 16, 2020 through December 8, 2021
Call of Duty: Modern Warfare						October 2019, and when referred to herein, is inclusive of Call of Duty: Warzone from its release in March 2020 through December 16, 2020
Call of Duty: Mobile						October 2019
World of Warcraft: Wrath of the Lich King Classic						September 2022
World of Warcraft: Dragonflight™						November 2022
Overwatch 2						October 2022
World of Warcraft: Wrath of the Lich King® Classic						September 2022
Diablo Immortal						June 2022
Diablo II: Resurrected						September 2021
World of Warcraft: Burning Crusade Classic						June 2021
World of Warcraft: Shadowlands						November 2020

Table of Contents

Operating Metrics

The following operating metrics are key performance indicators that we use to evaluate our business. The key drivers of changes in our operating metrics are presented in the order of significance.

Net bookings and in-game net bookings

We monitor net bookings and in-game net bookings as key operating metrics in evaluating the performance of our business because they enable an analysis of performance based on the timing of actual transactions with our customers and provide a more timely indication of trends in our operating results. Net bookings is the net amount of products and services sold digitally or sold-in physically in the period and includes license fees, merchandise, and publisher incentives, among others. Net bookings is equal to net revenues excluding the impact from deferrals. In-game net bookings primarily includes the net amount of microtransactions and downloadable content sold during the period and is equal to in-game net revenues excluding the impact from deferrals.

Table of Contents

Net bookings and in-game net bookings were as follows (amounts in millions):

	For the Three Months Ended September 30,							For the Nine Months Ended September 30,
					For the Three Months Ended March 31,
	2022		2021			Increase (Decrease)		2022		2021		Increase (Decrease)
								2023		2022		Increase (Decrease)
Net bookings	$	~~1,829~~	$	~~1,880~~		$	~~(51)~~	$	41,~~948~~855	$	51,~~867~~481	$	~~(919)~~374
In-game net bookings	$	~~1,356~~	$	~~1,198~~		$	~~158~~	$	31,~~564~~289	$	31,~~859~~011	$	~~(295)~~278

Q3 2022 vs. Q3 2021

Net bookings

The ~~decrease~~increase in net bookings for the three months ended ~~September~~March 3031, ~~2022~~2023, as compared to the three months ended ~~September~~March 3031, ~~2021~~2022, was primarily due to ~~a $161 million decrease in Activision net bookings, driven by lower net bookings from Call of Duty~~: ~~Vanguard as compared to Call of Duty: Black Ops Cold War.~~

~~The~~•a ~~decrease~~$169 million increase in Blizzard net bookings, ~~was~~driven ~~partially~~by ~~offset~~higher ~~by:~~net bookings from (1) Diablo Immortal and (2) Overwatch 2;

•a $50127 million increase in ~~Blizzard~~Activision net bookings, driven by higher net bookings from ~~Diablo~~Call ~~Immortal~~of Duty: Modern Warfare II as compared to Call of Duty: Vanguard, partially offset by lower net bookings from ~~Diablo~~Call IIof Duty: ~~Resurrected~~Vanguard as compared to Call of Duty: Black Ops Cold War; and

•a $4057 million increase in King net bookings, driven by higher net bookings from in-game player purchases in the Candy Crush franchise.

In-game net bookings

The increase in in-game net bookings for the three months ended ~~September~~March 3031, ~~2022~~2023, as compared to the three months ended ~~September~~March 3031, ~~2021~~2022, was primarily due to:

•a $~~192~~150 million increase in Blizzard in-game net bookings, driven by in-game net bookings from (1) Diablo Immortal; and (2) Overwatch 2;

•a $4466 million increase in King in-game net bookings, driven by the Candy Crush franchise.; and

~~The increase in in-game net bookings was partially offset by~~ •a $7763 million ~~decrease~~increase in Activision in-game net bookings, driven by ~~lower~~higher in-game net bookings from Call of Duty: ~~Vanguard,~~Modern Warfare II as compared to Call of Duty: ~~Black Ops Cold War~~Vanguard.

~~YTD Q3 2022 vs. YTD Q3 2021~~32

The decrease in net bookings for the nine months ended September 30, 2022, as compared to the nine months ended September 30, 2021, was primarily due to:

•a $898 million decrease in Activision net bookings, driven by lower net bookings from (1) Call of Duty: Vanguard as compared to Call of Duty: Black Ops Cold War, and (2) Call of Duty: Black Ops Cold War as compared to Call of Duty: Modern Warfare, partially offset by higher net bookings from prior Call of Duty franchise catalog titles; and

•a $191 million decrease in Blizzard net bookings, driven by lower net bookings from (1) World of Warcraft and (2) Diablo II: Resurrected, partially offset by net bookings from Diablo Immortal.

The decrease in net bookings was partially offset by a $162 million increase in King net bookings, driven by higher net bookings from in-game player purchases in the Candy Crush franchise.

Table of Contents

In-game net bookings

The decrease in in-game net bookings for the nine months ended September 30, 2022, as compared to the nine months ended September 30, 2021, was primarily due to a $543 million decrease in Activision in-game net bookings, driven by lower in-game net bookings from Call of Duty: Vanguard, as compared to Call of Duty: Black Ops Cold War.

The decrease in in-game net bookings was partially offset by:

•a $133 million increase in Blizzard in-game net bookings, driven by in-game net bookings from Diablo Immortal; and

•a $116 million increase in King in-game net bookings, driven by the Candy Crush franchise.

Monthly Active Users

We monitor monthly active users (“MAUs”) as a key measure of the overall size of our user base. MAUs are the number of individuals who accessed a particular game in a given month. We calculate average MAUs in a period by adding the total number of MAUs in each of the months in a given period and dividing that total by the number of months in the period. An individual who accesses two of our games would be counted as two users. In addition, due to technical limitations, for Activision and King, an individual who accesses the same game on two platforms or devices in the relevant period would be counted as two users. For Blizzard, an individual who accesses the same game on two platforms or devices in the relevant period would generally be counted as a single user. In certain instances, we rely on third parties to publish our games. In these instances, MAU data is based on information provided to us by those third parties or, if final data is not available, reasonable estimates of MAUs for these third-party published games.

The number of MAUs for a given period can be significantly impacted by the timing of new content releases, since new releases may cause a temporary surge in MAUs. Accordingly, although we believe that overall trends in the number of MAUs can be a meaningful performance metric, period-to-period fluctuations may not be indicative of longer-term trends. The following table details our average MAUs on a sequential quarterly basis for each of our reportable segments (amounts in millions):

September 30, 2022

June 30, 2022

March 31, 2022

December 31, 2021

September 30, 2021

March 31, 2023

December 31, 2022

September 30, 2022

June 30, 2022

March 31, 2022

Activision

9798

94111

~~100~~97

~~107~~94

~~119~~100

Blizzard

3127

2745

2231

2427

2622

King

~~240~~243

~~240~~233

~~250~~240

240

~~245~~250

Total

368

~~361~~389

~~372~~368

~~371~~361

~~390~~372

Average MAUs decreased by 21 million or 5% for the three months ended ~~September~~March 3031, ~~2022~~2023, ~~are~~as ~~comparable~~compared to the three months ended ~~June~~December 3031, 2022,. ~~with~~The ~~the~~decrease ~~slight~~was ~~increase~~ primarily due to ~~higher~~lower average MAUs for (1) Blizzard, driven by ~~Diablo~~lower ~~Immortal~~average MAUs for Overwatch 2, and (2) Activision, driven by lower average MAUs for the Call of Duty franchise. These decreases were partially offset by an increase in average MAUs for King, driven by the Candy Crush franchise.

Average MAUs ~~decreased by 22 million or 6%~~ for the three months ended ~~September~~March 3031, ~~2022~~2023, aswere ~~compared~~comparable to the three months ended ~~September~~March 3031, ~~2021.~~2022, ~~The~~as ~~decrease~~higher ~~was primarily due to lower~~ average MAUs for ~~Activision~~Blizzard, driven by the ~~Call~~launch of ~~Duty~~Overwatch ~~franchise~~2, ~~partly~~was largely offset by ~~higher~~lower average MAUs for ~~Blizzard~~King, driven by ~~Diablo~~decreases ~~Immortal~~in non-Candy Crush franchise titles.

3933

Table of Contents

Management’s Overview of Business Trends

Mobile Gaming and Free-to-Play Games

Wide adoption of smartphones globally and the free-to-play business model, which allows players to try a new game with no upfront cost, on mobile platforms have increased the total addressable audience for gaming significantly by introducing gaming to new age groups and new regions and allowing gaming to occur more widely outside the home. Mobile gaming is estimated to be larger than console and PC gaming, and has grown at a significant rate over the last five years. All of our reportable segments now have successful live mobile titles in the market, and we continue to develop new mobile titles that present the opportunity for us to expand the reach of, and drive additional player investment in, our products. The June 2022 launch of Diablo Immortal is our most recent example of this continued expansion on the mobile platform and we expect 2023 to include the release of Call of Duty: Warzone Mobile.

In addition, the free-to-play business model has begun to receive broader acceptance on PC and console platforms. This has provided opportunities for us to increase the reach of our intellectual properties and games through free-to-play offerings, which, in turn, provides opportunities to further drive player investment, as was seen with our Call of Duty: Warzone release in March 2020. We have continued to invest in these opportunities, with 2022 including the free-to-play releases of Overwatch 2 in October 2022 and Call of Duty: Warzone 2.0 in November 2022.

Importance of our Franchises

A significant portion of our revenues historically has been derived from video games based on our franchises, and these video games have also been responsible for a disproportionately higher percentage of our profits. For example, in 2022, our three franchises—Call of Duty, Warcraft, and Candy Crush—collectively accounted for 79% of our consolidated net revenues—and a significantly higher percentage of our operating income.

In addition to investing in new content for our games, with the aim of releasing such content more frequently, we are continually exploring additional ways to expand our franchises and games. In recent years we have expanded the Call of Duty franchise with Call of Duty: Warzone and Call of Duty Mobile, as well as bringing Diablo content to mobile for the first time with Diablo Immortal. We have similar plans to bring the Warcraft franchise to mobile with Warcraft Arclight Rumble™, which is currently in development. Our collaborative arrangements for our professional esports leagues (i.e., the Overwatch League and the Call of Duty League) continue to face headwinds which are negatively impacting the operations and, potentially, the longevity of the leagues under the current business model. We continue to work to address these challenges, which could result in significant costs, and such efforts may prove unsuccessful.

Overall, we expect that our most popular franchises will continue to produce a disproportionately high percentage of our revenues and profits in the near future. Accordingly, our ability to maintain these franchises and to successfully compete against the wide range of competitive titles available in the industry could significantly impact our performance.

Recurring Revenue Business Models

Increased consumer online connectivity has allowed us to offer players new investment opportunities and to shift our business further towards a more consistently recurring and year-round model through our live services. While our business does continue to experience some periods of “seasonality,” driven primarily by the timing of our new premium full game releases, our in-game content and free-to-play offerings allow our players to access and invest in new content throughout the year. This incremental content not only provides additional high-margin revenues, but it can also increase player engagement.

Increased Competition for Talent

We believe that our continued success and growth is directly related to our ability to attract, retain, and develop top talent. We have seen increased competition in the market for talent and expect the competitive environment to continue at least in the short term. We have experienced challenges in both the retention of our existing talent and attraction of new talent~~. If competition~~, ~~voluntary~~but ~~turnover,~~we ~~and~~have ~~recruiting~~also ~~difficulty~~more ~~persist,~~recently itseen ~~could~~increasingly ~~continue~~positive totrends ~~negatively impact our ability to deliver content~~ in athese ~~cadence~~areas, ~~that~~which ~~will be optimal for our business but we~~ have ~~seen~~continued ~~some~~into ~~recent~~the ~~positive~~current ~~trends in retention and attraction of talent~~year.

~~Upcoming Content Releases~~34

Upcoming and recently released titles in the fourth quarter of 2022 are:

•Overwatch® 2, a free-to-play live experience within the world of Overwatch, which launched on October 4, 2022;

•Call of Duty: Modern Warfare II, the sequel to Call of Duty: Modern Warfare, which launched on October 28, 2022, with Call of Duty: WarzoneTM 2.0 expected to launch on November 16, 2022; and

•World of Warcraft: Dragonflight, the next expansion to World of Warcraft, which is expected to launch on November 28, 2022.

We also expect to continue to deliver ongoing content for various of our games. Additionally, as publicly announced, we expect 2023 to include the releases of Diablo IV and Call of Duty: Warzone MobileTM. We will also continue to invest in opportunities that we believe have the potential to drive our growth over the long-term, including continuing to build on our advertising initiatives and investments in mobile titles.

China License Agreements

Currently, we have licensing agreements with a third party covering the publication of several Blizzard titles in China. These agreements, which contributed approximately 3% of Activision Blizzard’s consolidated net revenues in 2021, expire in January 2023. We are in discussions regarding the renewal of these agreements, but a mutually-satisfactory deal may not be reached. The co-development and publishing of Diablo Immortal is covered by a separate long-term agreement between the two parties.

Table of Contents

Consolidated Statements of Operations Data

The following table sets forth condensed consolidated statements of operations data for the periods indicated (amounts in millions) and as a percentage of total net revenues, except for cost of revenues, which are presented as a percentage of associated revenues:

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
			For the Three Months Ended March 31,
	2022				2021				2022				2021
					2023				2022
Net revenues
Product sales	$	~~231~~	13	%	$	~~423~~	20	%	$	~~921~~695	1829	%	$	~~1,666~~386	2522	%
In-game, subscription, and other revenues	~~1,551~~		87		~~1,647~~		80		41,~~273~~688		8271		41,~~974~~382		7578
Total net revenues	~~1,782~~		~~100~~		~~2,070~~		~~100~~		52,~~194~~383		100		61,~~640~~768		100
Costs and expenses
Cost of revenues—product sales:
Product costs	~~107~~		46		~~120~~		28		~~279~~136		3020		~~375~~91		2324
Software royalties and amortization	9		4		72		17		~~153~~101		1715		~~272~~81		1621
Cost of revenues—in-game, subscription, and other:
Game operations and distribution costs	~~343~~		22		~~307~~		19		~~948~~363		22		~~925~~288		1921
Software royalties and amortization	43		3		28		2		8665		24		8719		21
Product development	~~277~~		16		~~329~~		16		~~935~~402		1817		~~1,016~~346		1520
Sales and marketing	~~287~~		16		~~244~~		12		~~801~~278		1512		~~727~~252		1114
General and administrative	~~229~~		13		~~143~~		7		~~693~~238		1310		~~614~~212		912
Restructuring and related costs	2		—		3		—		(3)		—		46		1
Total costs and expenses									1,583		66		1,289		73
Total costs and expenses	1,297		73		1,246		60		3,892		75		4,062		61
Operating income									800		34		479		27
Operating income	485		27		824		40		1,302		25		2,578		39
Interest expense from debt									27		1		27		2
Interest and other (income) expense, net	(15)		(1)		65		3		16		—		52		1
Other (income) expense, net									(122)		(5)		(13)		(1)
Income before income tax expense	~~500~~		28		~~759~~		37		~~1,286~~895		2538		~~2,526~~465		3826
Income tax expense	65		4		~~120~~		6		~~176~~155		37		~~391~~70		64
Net income	$	~~435~~	24	%	$	~~639~~	31	%	$	~~1,110~~740	2131	%	$	~~2,135~~395	3222	%

4135

Table of Contents

Consolidated Net Revenues

The key drivers of changes in our consolidated results, operating segment results, and sources of liquidity are presented in the order of significance.

The following table summarizes our consolidated net revenues and in-game net revenues (amounts in millions):

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
			For the Three Months Ended March 31,
	2022		2021		Increase (Decrease)		% Change		2022		2021		Increase (Decrease)		% Change
									2023		2022		Increase (Decrease)		% Change
Consolidated net revenues	$	~~1,782~~	$	~~2,070~~	$	~~(288)~~	~~(14)~~	%	$	52,~~194~~383	$	61,~~640~~768	$	~~(1,446)~~615	~~(22)~~35	%
In-game net revenues (1)	$	~~1,275~~	$	~~1,316~~	$	~~(41)~~	~~(3)~~	%	$	31,~~499~~430	$	41,~~058~~134	$	~~(559)~~296	~~(14)~~26	%

(1) In-game net revenues primarily includes the net amount of revenues recognized for microtransactions and downloadable content during the period.

Q3 2022 vs. Q3 2021

Consolidated net revenues

The ~~decrease~~increase in consolidated net revenues for the three months ended ~~September~~March 3031, ~~2022~~2023, as compared to the three months ended ~~September~~March 3031, ~~2021~~2022, was primarily driven by aan ~~decrease~~increase in revenues of $~~429~~734 million due to ~~lower~~higher revenues from:

•Call of Duty: ~~Vanguard~~Modern Warfare II as compared to Call of Duty: ~~Black Ops Cold War~~Vanguard;

•~~World~~Diablo ~~of Warcraft~~Immortal; ~~and~~

•~~Diablo~~World ~~II:~~of ~~Resurrected.~~Warcraft;

~~This~~•Overwatch ~~decrease~~2; ~~was partially offset by an increase in revenues of $189 million due to higher revenues from:~~and

•Diablo Immortal; and

•the Candy Crush franchise.

~~The~~This ~~remaining~~increase ~~net~~was partially offset by a decrease in revenues of $4898 million ~~was~~due ~~driven~~to bylower ~~various~~revenues ~~other~~from ~~franchises~~Call ~~and~~of ~~titles~~Duty: Vanguard as compared to Call of Duty: Black Ops Cold War.

In-game net revenues

The ~~decrease~~increase in in-game net revenues for the three months ended ~~September~~March 3031, ~~2022~~2023, as compared to the three months ended ~~September~~March 3031, ~~2021~~2022, was primarily driven by aan ~~decrease~~increase in in-game net revenues of $~~227~~369 million due to ~~lower~~higher in-game net revenues from:

•~~Call~~Diablo ~~of Duty: Vanguard as compared to Call of Duty: Black Ops Cold War~~Immortal; ~~and~~

•~~World~~Call of ~~Warcraft.~~Duty: Modern Warfare II as compared to Call of Duty: Vanguard;

~~This~~•Overwatch ~~decrease~~2; ~~was partially offset by an increase in in-game net revenues of $184 million due to higher in-game net revenues from:~~and

•Diablo Immortal; and

•the Candy Crush franchise.

~~The~~This ~~remaining~~increase ~~net~~was ~~increase~~partially offset by a decrease in in-game net revenues of $280 million ~~was~~due ~~driven~~to bylower ~~various~~in-game ~~other~~net ~~franchises~~revenues ~~and~~from ~~titles~~Call of Duty: Vanguard as compared to Call of Duty: Black Ops Cold War.

Table of Contents

YTD Q3 2022 vs. YTD Q3 2021

Consolidated net revenues

The decrease in consolidated net revenues for the nine months ended September 30, 2022, as compared to the nine months ended September 30, 2021, was primarily driven by a decrease in revenues of $1.6 billion due to lower revenues from:

•Call of Duty: Vanguard as compared to Call of Duty: Black Ops Cold War;

•World of Warcraft; and

•Call of Duty: Black Ops Cold War as compared to Call of Duty: Modern Warfare.

This decrease was partially offset by an increase in revenues of $359 million due to higher revenues from:

•the Candy Crush franchise; and

•Diablo Immortal.

The remaining net decrease in revenues of $234 million was driven by various other franchises and titles.

In-game net revenues

The decrease in in-game net revenues for the nine months ended September 30, 2022, as compared to the nine months ended September 30, 2021, was primarily driven by a decrease in in-game net revenues of $814 million due to lower in-game net revenues from:

•Call of Duty: Vanguard as compared to Call of Duty: Black Ops Cold War;

•World of Warcraft; and

•Call of Duty: Black Ops Cold War as compared to Call of Duty: Modern Warfare.

This decrease was partially offset by an increase in in-game net revenues of $303 million due to higher in-game net revenues from:

•the Candy Crush franchise; and

•Diablo Immortal.

The remaining net decrease in in-game net revenues of $48 million was driven by various other franchises and titles.

Foreign Exchange Impact

Changes in foreign exchange rates had a negative impact of approximately $9366 million ~~and $195 million~~ on our consolidated net revenues for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2022~~2023, ~~respectively,~~ as compared to the same ~~periods~~period in the previous year. The changes are primarily due to changes in the value of the U.S. dollar relative to the euro and the British pound.

~~Operating Segment Results~~36

Table of Contents

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

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.

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

Filing Compare · Activision Blizzard, Inc.