Activision Blizzard (ATVI) 10-Q 3 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 26, 2018
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	Activision Blizzard, Inc.
Entity Central Index Key	718,877
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		761,226,715

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 5,217	$ 4,713
Accounts receivable, net of allowances of $146 and $279, at March 31, 2018 and December 31, 2017, respectively	431	918
Inventories, net	42	46
Software development	298	367
Other current assets	422	476
Total current assets	6,410	6,520
Software development	92	86
Property and equipment, net	286	294
Deferred income taxes, net	400	459
Other assets	458	440
Intangible assets, net	987	1,106
Goodwill	9,764	9,763
Total assets	18,397	18,668
Current liabilities:
Accounts payable	172	323
Deferred revenues	1,204	1,929
Accrued expenses and other liabilities	1,551	1,411
Total current liabilities	2,927	3,663
Long-term debt, net	4,392	4,390
Deferred income taxes, net	16	21
Other liabilities	1,243	1,132
Total liabilities	8,578	9,206
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,189,544,818 and 1,186,181,666 shares issued at March 31, 2018 and December 31, 2017, respectively	0	0
Additional paid-in capital	10,786	10,747
Less: Treasury stock, at cost, 428,676,471 shares at March 31, 2018 and December 31, 2017	(5,563)	(5,563)
Retained earnings	5,245	4,916
Accumulated other comprehensive loss	(649)	(638)
Total shareholders’ equity	9,819	9,462
Total liabilities and shareholders’ equity	$ 18,397	$ 18,668

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable allowances	$ 146	$ 279
Common stock, par value (in dollars per share)	$ 0.000001	$ 0.000001
Common stock, shares authorized (in shares)	2,400,000,000	2,400,000,000
Common stock, shares issued (in shares)	1,189,544,818	1,186,181,666
Treasury stock, shares (in shares)	428,676,471	428,676,471

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions	Feb. 01, 2018	Feb. 02, 2017	Mar. 31, 2018	Mar. 31, 2017
Net revenues
Product sales			$ 720	$ 509
Subscription, licensing, and other revenues			1,245	1,217
Total net revenues (Note 2)			1,965	1,726
Cost of revenues—product sales:
Product costs			162	143
Software royalties, amortization, and intellectual property licenses			146	88
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs			270	232
Software royalties, amortization, and intellectual property licenses			84	122
Product development			259	225
Sales and marketing			251	246
General and administrative			198	177
Total costs and expenses			1,370	1,233
Operating income			595	493
Interest and other expense (income), net			28	40
Income before income tax expense			567	453
Income tax expense			67	27
Net income			$ 500	$ 426
Earnings per common share
Basic (in dollars per share)			$ 0.66	$ 0.57
Diluted (in dollars per share)			$ 0.65	$ 0.56
Weighted-average number of shares outstanding
Basic (in shares)			759	749
Diluted (in shares)			770	761
Dividends per common share (in dollars per share)	$ 0.34	$ 0.30	$ 0.34	$ 0.30

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 500	$ 426
Other comprehensive income (loss):
Foreign currency translation adjustment	1	19
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	(12)	(15)
Unrealized gains (losses) on investments, net of tax	(3)	0
Total other comprehensive loss	(14)	4
Comprehensive income	$ 486	$ 430

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income		$ 500	$ 426
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes		29	(80)
Depreciation and amortization		155	224
Amortization of capitalized software development costs and intellectual property licenses	[1]	150	89
Share-based compensation expense	[2]	54	33
Other		10	22
Changes in operating assets and liabilities:
Accounts receivable, net		503	396
Inventories		4	2
Software development and intellectual property licenses		(100)	(67)
Other assets		22	(3)
Deferred revenues		(551)	(494)
Accounts payable		(160)	(76)
Accrued expenses and other liabilities		(87)	(61)
Net cash provided by operating activities		529	411
Cash flows from investing activities:
Purchases of available-for-sale investments		(20)	0
Capital expenditures		(31)	(21)
Other investing activities		0	(6)
Net cash used in investing activities		(51)	(27)
Cash flows from financing activities:
Proceeds from issuance of common stock to employees		47	109
Tax payment related to net share settlements on restricted stock units		(39)	(13)
Proceeds from debt issuances, net of discounts		0	2,551
Repayment of long-term debt		0	(3,051)
Net cash (used in) provided by financing activities		8	(404)
Effect of foreign exchange rate changes on cash and cash equivalents		18	19
Net increase (decrease) in cash and cash equivalents and restricted cash		504	(1)
Cash and cash equivalents and restricted cash at beginning of period		4,720	3,262
Cash and cash equivalents and restricted cash at end of period		$ 5,224	$ 3,261
[1]	Excludes deferral and amortization of share-based compensation expense.
[2]	Includes the net effects of capitalization, deferral, and amortization of share-based compensation expense.

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2016						$ (629)
Components of comprehensive income:
Net income	$ 426
Other comprehensive income (loss)	4
Ending balance at Mar. 31, 2017						(625)
Beginning balance at Dec. 31, 2017	9,462	$ 0	$ (5,563)	$ 10,747	$ 4,916	(638)
Balance (in shares) at Dec. 31, 2017		1,186	429
Components of comprehensive income:
Net income	500				500
Other comprehensive income (loss)	(14)					(14)
Issuance of common stock pursuant to employee stock options	47			47
Issuance of common stock pursuant to employee stock options (in shares)		3
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		2
Restricted stock surrendered for employees’ tax liability	(64)			(64)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	56			56
Dividends ($0.34 per common share)	(259)				(259)
Ending balance at Mar. 31, 2018	$ 9,819	$ 0	$ (5,563)	$ 10,786	$ 5,245	$ (649)
Balance (in shares) at Mar. 31, 2018		1,190	429

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	Feb. 01, 2018	Feb. 02, 2017	Mar. 31, 2018	Mar. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.34	$ 0.30	$ 0.34	$ 0.30

Description of Business and Bas

Description of Business and Basis of Consolidation and Presentation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Basis of Consolidation and Presentation	Description of Business and Basis of Consolidation and Presentation Activision Blizzard, Inc. is a leading global developer and publisher of interactive entertainment content and services. We develop and distribute content and services on video game consoles, personal computers (“PC”), and mobile devices. We also operate esports events and leagues and create film and television content based on our intellectual property. The terms “Activision Blizzard,” the “Company,” “we,” “us,” and “our” are used to refer collectively to Activision Blizzard, Inc. and its subsidiaries. The Company was originally incorporated in California in 1979 and was reincorporated in Delaware in December 1992. In connection with the 2008 business combination by and among the Company (then known as Activision, Inc.), Vivendi S.A. (“Vivendi”), and Vivendi Games, Inc., then an indirect wholly-owned subsidiary of Vivendi, we were renamed Activision Blizzard, Inc. The common stock of Activision Blizzard is traded on The Nasdaq Stock Market under the ticker symbol “ATVI.” Our Segments As part of the continued implementation of our esports strategy, we instituted changes to our internal organization and reporting structure during 2017 such that the Major League Gaming (“MLG”) business operates as a division of Blizzard Entertainment, Inc. (“Blizzard”). Commencing with the second quarter of 2017, MLG, which was previously a separate operating segment, became a component of the Blizzard operating segment. MLG is responsible for the operations of the Overwatch League™, along with other esports events, and will also continue to serve as a multi-platform network for other Activision Blizzard esports content. Based upon our organizational structure, we conduct our business through three reportable segments, as follows: (i) Activision Publishing, Inc. Activision Publishing, Inc. (“Activision”) is a leading global developer and publisher of interactive software products and entertainment content, particularly for the console platform. Activision primarily delivers content through retail and digital channels, including full-game and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Activision products. Activision develops, markets, and sells products based on our internally developed intellectual properties, as well as some licensed properties. We have also established a long-term alliance with Bungie to publish its game universe, Destiny. Activision’s key product franchises include: Call of Duty ® , a first-person shooter for the console and PC platforms; and Destiny, an online universe of first-person action gameplay (which we call a “shared-world shooter”) for the console and PC platforms. (ii) Blizzard Entertainment, Inc. Blizzard is a leading global developer and publisher of interactive software products and entertainment content, particularly for the PC platform. Blizzard primarily delivers content through retail and digital channels, including subscriptions, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Blizzard products. Blizzard also maintains a proprietary online gaming service, Blizzard Battle.net ® , which facilitates digital distribution of Blizzard content, along with Activision’s Destiny 2 PC content, online social connectivity, and the creation of user-generated content. As noted above, Blizzard also includes the activities of our MLG business, which is responsible for the operations of the Overwatch League, along with other esports events, and will also continue to serve as a multi-platform network for other Activision Blizzard esports content. Blizzard’s key product franchises include: World of Warcraft ® , a subscription-based massive multi-player online role-playing game for PC; StarCraft ® , a real-time strategy franchise for the PC; Diablo ® , an action role-playing franchise for the PC and console platforms; Hearthstone ® , an online collectible card franchise for the PC and mobile platforms; Heroes of the Storm ® , a free-to-play team brawler for PC; and Overwatch ® , a team-based first-person shooter for the PC and console platforms. (iii) King Digital Entertainment King is a leading global developer and publisher of interactive entertainment content and services, particularly on mobile platforms, such as Google Inc.’s (“Google”) Android and Apple Inc.’s (“Apple”) iOS. King also distributes its content and services on the PC platform, primarily via Facebook. King’s games are free to play, however, players can acquire in-game items, either with virtual currency the players purchase or directly using real currency. King’s key product franchises, all of which are for the mobile and PC platforms, include: Candy Crush™, which features “match three” games; Farm Heroes™, which also features “match three” games; and Bubble Witch™, which features “bubble shooter” games. Other We also engage in other businesses that do not represent reportable segments, including: • the Activision Blizzard Studios (“Studios”) business, which is devoted to creating original film and television content based on our library of globally recognized intellectual properties, and which, in October 2017, released the second season of the animated TV series Skylanders ™ Academy on Netflix; and • the Activision Blizzard Distribution (“Distribution”) business, which consists of operations in Europe that provide warehousing, logistics, and sales distribution services to third-party publishers of interactive entertainment software, our own publishing operations, and manufacturers of interactive entertainment hardware. Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (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. 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, 2017 . 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 (consisting of normal recurring accruals) considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP 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 reclassifications have been made to prior year amounts to conform to the current period presentation. The Company considers events or transactions that occur after the balance sheet date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. Supplemental Cash Flow Information As of March 31, 2018 and 2017, we had the following amounts associated with investing and financing activities recorded within “Accrued expenses and other liabilities”: • dividends payable of $259 million and $226 million , respectively; and • accrued withholding tax payments related to net share settlements on restricted stock units of $26 million and $17 million , respectively. For the three months ended March 31, 2018, the beginning and ending cash and cash equivalents and restricted cash reported within our condensed consolidated statement of cash flows include restricted cash of $7 million and $ 6 million , respectively. For the three months ended March 31, 2017, our beginning and ending cash and cash equivalents and restricted cash reported within our condensed consolidated statement of cash flows include restricted cash of $ 17 million and $ 13 million , respectively.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies During the three months ended March 31, 2018, there were no significant changes to our accounting policies, except for our adoption of a new revenue accounting standard as discussed below. Refer to Note 2 contained in our Annual Report on Form 10-K for the year ended December 31, 2017 for a summary of our other significant accounting policies. Adoption of Accounting Standards Codification 606: Revenue from Contracts with Customers In May 2014, the FASB issued new accounting guidance related to revenue recognition. The new standard replaces all current U.S. GAAP guidance on this topic and eliminates all industry-specific guidance, providing a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted the new accounting standard and related amendments (the “new revenue accounting standard”). As a result, we have updated our significant accounting policy disclosure for revenue recognition herein. Refer to Note 3 for the impact of adoption on our condensed consolidated financial statements. Revenue Recognition We generate revenue primarily through the sale of our interactive entertainment content and services, principally for console, PC, and mobile devices, as well as through the licensing of our intellectual property. Our products span various genres, including first-person shooter, action/adventure, role-playing, strategy, and "match three," among others. We primarily offer the following products and services: • full games, which typically provide access to main game content, primarily for console or PC; • downloadable content, which provides players with additional in-game content to purchase following the purchase of a full game; • microtransactions, which typically provide relatively small pieces of additional in-game content or enhancements to gameplay; and • subscriptions to players in our World of Warcraft franchise, which provide continual access to the game content. When control of the promised products and services is transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services. We determine revenue recognition by: • identifying the contract, or contracts, with a customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. Certain products are sold to customers with a “street date” (which is the earliest date these products may be sold by retailers). For these products, we recognize revenues on the later of the street date and the date the product is sold to our customer. For digital full-game downloads sold to customers, we recognize revenue when it is available for download or is activated for gameplay. Revenues are recorded net of taxes assessed by governmental authorities that are imposed at the time of the specific revenue-producing transaction between us and our customer, such as sales and value-added taxes. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment immediately upon purchase or within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. Product Sales Product sales consist of sales of our games, including physical products and digital full-game downloads. We recognize revenues from the sale of our products after both (1) control of the products have been transferred to our customers and (2) underlying performance obligations have been satisfied. Revenues from product sales are recognized after deducting the estimated allowance for returns and price protection, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and price protection are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Sales incentives and other consideration given by us to our customers, such as rebates and product placement fees, are considered adjustments of the transaction price of our products and are reflected as reductions to revenues. Sales incentives and other consideration that represent costs incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are recorded as "Sales and marketing" expense when the benefit from the sales incentive is separable from sales to the same customer and we can reasonably estimate the fair value of the good or service. Products with Online Functionality For our software products that include both offline functionality (i.e., do not require an Internet connection to access) and significant online functionality, such as titles for the Call of Duty franchise, we evaluate whether the license of our intellectual property and the online functionality are distinct and separable. This evaluation is performed for each software product or product add-on, including downloadable content. If we determine that our software products contain a license of intellectual property separate from the online functionality, we consider market conditions and other observable inputs to estimate the transaction price for the license, since we do not generally sell the software license on a standalone basis. These arrangements may be sold in a bundle with other products and services, which often results in the recognition of additional performance obligations. We recognize revenue for arrangements that include both a license of intellectual property and separate online functionality when control of the license transfers to our customers for the portion of the transaction price allocable to the license and ratably over the estimated service period for the portion of the transaction price allocable to the online functionality. Similarly, we defer a portion of the cost of revenues on these arrangements and recognize the costs as the related revenues are recognized. The cost of revenues that are deferred include product costs, distribution costs, and software royalties, amortization, and intellectual property licenses, and excludes intangible asset amortization. Online Hosted Software Arrangements For our online hosted software arrangements, such as titles for the Destiny, Overwatch, World of Warcraft, and Candy Crush franchises, substantially all gameplay and functionality are obtained through our continuous hosting of the game content for the player. Similar to our software products with online functionality, these arrangements may include other products and services, which often results in the recognition of additional performance obligations. Revenues related to online hosted software arrangements are generally recognized ratably over the estimated service period. Subscription Arrangements Subscription revenue arrangements are mostly derived from World of Warcraft , which is playable through Blizzard’s servers and is generally sold on a subscription-only basis. For World of Warcraft , after the first month of free usage that is included with the initial purchase of World of Warcraft software, the World of Warcraft end user may enter into a subscription agreement for additional future access. Revenues associated with the sales of subscriptions via initial software purchases and standalone subscriptions sales are deferred until the subscription service is activated by the consumer and are then recognized ratably over the subscription period as the performance obligations are satisfied. Revenues attributable to the initial purchase of World of Warcraft software by our customers and related sales of expansion packs are classified as “Product sales,” whereas revenues attributable to subscriptions and other in-game revenues are classified as “Subscription, licensing, and other revenues.” Licensing Revenues In certain countries, we utilize third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to specified or unspecified future updates. Our estimate of the selling price is comprised of several factors including, but not limited to, prior selling prices, prices charged separately by other third-party vendors for similar service offerings, and a cost-plus-margin approach. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee when we transfer control of the upfront license of intellectual property and/or upon transfer of control of future specified updates and ratably over the contractual term in which we provide the customer with unspecified future updates. Royalty payments in excess of the minimum guarantee are generally recognized when the licensed product is sold by the licensee. Other Revenues Other revenues primarily include revenues from downloadable content (e.g., multi-player content packs), microtransactions, and licensing of intellectual property other than software to third-parties. Microtransaction revenues are derived from the sale of virtual currencies and goods to our players to enhance their gameplay experience. Proceeds from these sales of virtual currencies and goods are initially recorded in deferred revenue. Proceeds from the sales of virtual currencies are recognized as revenues when a player uses the virtual goods purchased with a virtual currency. Proceeds from the sales of virtual goods directly are similarly recognized as revenues when a player uses the virtual goods. We categorize our virtual goods as either “consumable” or “durable”. Consumable virtual goods represent goods that can be consumed by a specific player action; accordingly, we recognize revenues from the sale of consumable virtual goods as the goods are consumed and our performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the player over an extended period of time; accordingly, we recognize revenues from the sale of durable virtual goods ratably over the period of time the goods are available to the player and our performance obligation is satisfied, which is generally the estimated service period. Revenues from the licensing of intellectual property other than software to third parties primarily include the licensing of our (1) brand, logo, or franchise to customers and (2) media content. Fixed fee payments from customers for the license of our brand or franchise are generally recognized over the license term. Fixed fee payments from customers for the license of our media content are generally recognized when control has transferred to the customer, which may be upfront or over time. Significant Judgment around Revenue Arrangements with Multiple Deliverables Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Certain of our games, such as titles in the Call of Duty franchise, may contain a license of our intellectual property to play the game offline, but also depend on a significant level of integration and interdependency with the online functionality. In these cases, significant judgment is required to determine whether this license of our intellectual property should be considered distinct and accounted for separately, or not distinct and accounted for together with the online functionality provided and recognized over time. Generally, for titles in which the software license is functional without the online functionality and a significant component of gameplay is available offline, we believe we have separate performance obligations for the license of the intellectual property and the online functionality. Significant judgment is also required to determine the standalone selling price for each distinct performance obligation and to determine whether there is a discount that needs to be allocated based on the relative standalone selling price of the various products and services. To estimate the standalone selling price we consider market data, including our pricing strategies for the product being evaluated and other similar products we may offer, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin. Estimated Service Period We consider a variety of data points when determining the estimated service period for players of our games, including the weighted average number of days between players’ first and last days played online, the average total hours played, the average number of days in which player activity stabilizes, and the weighted-average number of days between players’ first purchase date and last date played online. We also consider known online trends, the service periods of our previously released games, and, to the extent publicly available, the service periods of our competitors’ games that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of services to our customers, as it is the best representation of the time period during which our customers play our games. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current games are generally less than 12 months . Principal Agent Considerations We evaluate sales of our products and content via third-party digital storefronts, such as Microsoft’s Xbox Games Store, Sony’s PSN, Apple App Store, and the Google Play Store, to determine whether revenues should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining gross versus net treatment include, but are not limited to, the following: • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of the above indicators, we report revenues on a gross basis for sales arrangements via Apple App Store and Google Play Store, and we report revenues on a net basis (i.e. net of fees retained by the digital storefront) for sales arrangements via Microsoft’s Xbox Games Store and Sony’s PSN. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in our accounts receivable balance. In estimating the allowance for doubtful accounts, we analyze the age of current outstanding account balances, historical bad debts, customer concentrations, customer creditworthiness, current economic trends, and changes in our customers’ payment terms and their economic condition, as well as whether we can obtain sufficient credit insurance. Any significant changes in any of these criteria would affect management’s estimates in establishing our allowance for doubtful accounts. Deferred revenue is comprised primarily of unearned revenue related to the sale of products with online functionality or online hosted arrangements. These sales are typically invoiced and collected on at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue also includes payments for: product sales pending delivery or activation; subscription revenues; licensing revenues with fixed minimum guarantees; and other revenues for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 9 - Deferred revenue for further information, including changes in deferred revenue during the period. Assets Recognized from the Costs to Obtain a Contract with a Customer We apply the practical expedient to expense, as incurred, costs to obtain a contract with a customer when the amortization period would have been one year or less for certain similar contracts in which commissions are paid to internal personnel or third parties. We believe application of the practical expedient has a limited effect on the amount or timing of cost recognition. Total capitalized costs to obtain a contract were immaterial as of March 31, 2018. Allowances for Returns and Price Protection We closely monitor and analyze the historical performance of our various titles, the performance of products released by other publishers, market conditions, and the anticipated timing of other releases to assess future demand of current and upcoming titles. Initial volumes shipped upon title launch and subsequent reorders are evaluated with the goal of ensuring that quantities are sufficient to meet the demand from the retail markets, but at the same time are controlled to prevent excess inventory in the channel. We benchmark units to be shipped to our customers using historical and industry data. We may permit product returns from, or grant price protection to, our customers under certain conditions. In general, price protection refers to the circumstances in which we elect to decrease, on a short- or longer-term basis, the wholesale price of a product by a certain amount and, when granted and applicable, allow customers a credit against amounts owed by such customers to us with respect to open and/or future invoices. The conditions our customers must meet to be granted the right to return products or receive price protection credits include, among other things, compliance with applicable trading and payment terms and consistent return of inventory and delivery of sell-through reports to us. We may also consider other factors, including achievement of sell-through performance targets in certain instances, the facilitation of slow-moving inventory, and other market factors. Significant management judgments and estimates with respect to potential future product returns and price protection related to current period product revenues must be made and used when establishing the allowance for returns and price protection in any accounting period. We estimate the amount of future returns and price protection for current period product revenues utilizing historical experience and information regarding inventory levels and the demand and acceptance of our products by the end consumer, and record revenue for the transferred products in the amount of consideration to which we expect to be entitled to. The following factors are used to estimate the amount of future returns and price protection for a particular title: historical performance of titles in similar genres; historical performance of the hardware platform; historical performance of the franchise; console hardware life cycle; sales force and retail customer feedback; industry pricing; future pricing assumptions; weeks of on-hand retail channel inventory; absolute quantity of on-hand retail channel inventory; our warehouse on-hand inventory levels; the title’s recent sell-through history (if available); marketing trade programs; and the performance of competing titles. The relative importance of these factors varies among titles depending upon, among other things, genre, platform, seasonality, and sales strategy. Based upon historical experience, we believe that our estimates are reasonable. However, actual returns and price protection could vary materially from our allowance estimates due to a number of reasons, including, among others: a lack of consumer acceptance of a title, the release in the same period of a similarly themed title by a competitor, or technological obsolescence due to the emergence of new hardware platforms. There may be material differences in the amount and timing of our revenues for any period if factors or market conditions change or if matters resolve in a manner that is inconsistent with management’s assumptions utilized in determining the allowances for returns and price protection. Shipping and Handling Shipping and handling costs consist primarily of packaging and transportation charges incurred to move finished goods to customers. We recognize all shipping and handling costs as an expense in "Cost of revenues-product costs," including those incurred when control of the product has already transferred to the customer.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements Revenue Recognition As noted in Note 2 above, we adopted the new revenue accounting standard effective January 1, 2018, utilizing the modified retrospective method. Additionally, we elected to apply the new revenue accounting standard only to contracts not completed as of the adoption date. For contracts that were modified before the period of adoption, we elected to reflect the aggregate effect of all modifications when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the new revenue accounting standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect adjustment recorded to our retained earnings was $88 million (see our condensed consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our condensed consolidated balance sheet at January 1, 2018 (amounts in millions): Condensed Consolidated Balance Sheet: Balance at December 31, 2017 Adjustments due to adoption of new revenue accounting standard Balance at January 1, 2018 Assets Accounts receivable, net $ 918 $ 3 $ 921 Software development 367 (20 ) 347 Other current assets 476 (35 ) 441 Deferred income taxes, net 459 (32 ) 427 Other assets 440 4 444 Liabilities and Shareholders' Equity Deferred revenues $ 1,929 $ (194 ) $ 1,735 Other liabilities 1,132 23 1,155 Shareholders' equity 9,462 91 9,553 The most significant impacts of the new revenue accounting standard for us are: • The accounting for our sales of our games with significant online functionality for which we do not have vendor-specific objective evidence (“VSOE”) for unspecified future updates and ongoing online services provided. Under the prior accounting standards, VSOE for undelivered elements was required. This requirement was eliminated under the new revenue accounting standard. Accordingly, we are required to recognize as revenue a portion of the sales price upon delivery of this software, as compared to recognizing the entire sales price ratably over an estimated service period as previously required. This difference in accounting primarily impacted revenues from our Call of Duty franchise, where approximately 20% of the sales price is now recognized as revenue upon delivery of the games to our customers. Many of our other franchises, such as Destiny, Overwatch, World of Warcraft, and Candy Crush, are online hosted arrangements, and the accounting for our sales of these games under the new standard is relatively unchanged; and • The accounting for certain of our software licensing arrangements. While the impacts of the new revenue accounting standard may differ on a contract-by-contract basis (as the actual revenue recognition treatment required under the standard will depend on contract-specific terms), the new revenue accounting standard generally results in earlier revenue recognition for these arrangements. Adoption of the new revenue accounting standard impacted our condensed consolidated statement of operations for the three months ended March 31, 2018, and our condensed consolidated balance sheet as of March 31, 2018 as follows (in millions, except per share data): For the Three Months Ended March 31, 2018 Condensed Consolidated Statement of Operations: Under new revenue accounting standard Under old revenue accounting standards Increase (decrease) due to adoption of new revenue accounting standard Net revenues Product sales $ 720 $ 802 $ (82 ) Subscription, licensing, and other revenues 1,245 1,238 7 Total net revenues 1,965 2,040 (75 ) Costs and expenses Cost of revenues—product sales: Product costs 162 176 (14 ) Software royalties, amortization, and intellectual property licenses 146 153 (7 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 270 270 — Software royalties, amortization, and intellectual property licenses 84 84 — Product development 259 259 — Sales and marketing 251 251 — General and administrative 198 198 — Total costs and expenses 1,370 1,391 (21 ) Operating income 595 649 (54 ) Interest and other expense (income), net 28 28 — Income before income tax expense 567 621 (54 ) Income tax expense 67 79 (12 ) Net income $ 500 $ 542 $ (42 ) Earnings per common share Basic $ 0.66 $ 0.71 $ (0.05 ) Diluted $ 0.65 $ 0.70 $ (0.05 ) At March 31. 2018 Condensed Consolidated Balance Sheet: Under new revenue accounting standard Under old revenue accounting standards Increase (decrease) due to adoption of new revenue accounting standard Assets Accounts receivable, net $ 431 $ 430 $ 1 Software development 298 310 (12 ) Other current assets 422 444 (22 ) Deferred income taxes, net 400 423 (23 ) Other assets 458 455 3 Liabilities and Shareholders' Equity Deferred revenues $ 1,204 $ 1,320 $ (116 ) Accrued expenses and other liabilities 1,551 1,553 (2 ) Other liabilities 1,243 1,229 14 Shareholders' equity 9,819 9,768 51 Adoption of the new revenue accounting standard had no impact to net cash from or used in operating, investing, or financing activities in our condensed consolidated statement of cash flows. Financial Instruments In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new standard, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. The new standard also simplifies the impairment assessment of equity investments without readily determinable fair values. The new standard is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. We adopted the new standard during the first quarter of 2018 and it did not have a material impact on our condensed consolidated financial statements. Statement of Cash Flows-Restricted Cash In November 2016, the FASB issued new guidance related to the classification of restricted cash in the statement of cash flows. The new standard requires that a statement of cash flows explain any change during the period in total cash, cash equivalents, and restricted cash. Therefore, restricted cash will be included with “Cash and cash equivalents” when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, and should be applied retrospectively. Early adoption is permitted. We adopted the new standard during the first quarter of 2018 and applied the standard retrospectively for all periods presented. The application of this new standard did not have a material impact on our condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017. In our Annual Report on Form 10-K for the year ending December 31, 2018, there will be a significant impact to the consolidated statements of cash flows for 2016, as this period includes, as an investing activity, the $ 3.6 billion movement in restricted cash resulting from the transfer of cash into escrow at December 31, 2015 to facilitate the acquisition of King, and the subsequent release of that cash in 2016 to complete the acquisition. Under this new standard, the restricted cash balance will be included in the beginning and ending total cash, cash equivalents, and restricted cash balances and, hence, will not be included as an investing activity in the statement of cash flows. Derivatives and Hedging In August 2017, the FASB issued new guidance related to the accounting for derivatives and hedging. The new guidance expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of a hedge’s effectiveness. The new standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We adopted the standard during the first quarter of 2018. The adoption of the standard did not have a material impact to our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued new guidance related to the accounting for leases. The new standard will replace all current U.S. GAAP guidance on this topic. The new standard, among other things, requires a lessee to classify a lease as either an operating or financing lease, and to recognize a lease liability and a right-of-use asset for its leases. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment for initial direct costs, lease incentives received, and any prepaid lease payments. Operating leases will result in a straight-line expense pattern, while finance leases will result in a front-loaded expense pattern. Classification will be based on criteria that are largely similar to those applied in current lease accounting. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and will require application of the new guidance at the beginning of the earliest comparative period presented, with certain transition practical expedients available to provide relief in adopting the new standard. We are evaluating the impact of this new accounting guidance on our financial statements, but expect it to have a material impact to our consolidated balance sheet as a result of establishing lease liabilities and right-of-use assets for our operating leases. We do not plan to early adopt this new standard but do expect to elect and apply the available transition practical expedients upon adoption. Goodwill In January 2017, the FASB issued new guidance which eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, an entity will be required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit, as determined in Step 1 from the goodwill impairment test, with its carrying amount and recognize an impairment charge, if any, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019, and should be applied prospectively. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. We are evaluating the impact, if any, of adopting this new accounting guidance on our consolidated financial statements.

Inventories, Net

Inventories, Net	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories, Net	Inventories, Net Inventories, net, consist of the following (amounts in millions): At March 31, 2018 At December 31, 2017 Finished goods $ 41 $ 45 Purchased parts and components 1 1 Inventories, net $ 42 $ 46 At March 31, 2018 and December 31, 2017 , inventory reserves were $32 million and $36 million, respectively .

Software Development and Intell

Software Development and Intellectual Property Licenses	3 Months Ended
	Mar. 31, 2018
Software Development Costs and Intellectual Property Licenses
Software Development and Intellectual Property Licenses	Software Development and Intellectual Property Licenses The following table summarizes the components of our capitalized software development costs (amounts in millions): At March 31, 2018 At December 31, 2017 Internally-developed software costs $ 258 $ 270 Payments made to third-party software developers 132 183 Total software development costs $ 390 $ 453 As of March 31, 2018 and December 31, 2017 , capitalized intellectual property licenses were not material. Amortization of capitalized software development costs and intellectual property licenses was as follows (amounts in millions): 23 For the Three Months Ended March 31, 2018 2017 Amortization of capitalized software development costs and intellectual property licenses $ 152 $ 93

Intangible Assets, Net

Intangible Assets, Net	3 Months Ended
	Mar. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets, Net	Intangible Assets, Net Intangible assets, net, consist of the following (amounts in millions): At March 31, 2018 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (907 ) $ 247 Developed software 2 - 5 years 601 (337 ) 264 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (17 ) 37 Other 1 - 15 years 19 (13 ) 6 Total definite-lived intangible assets $ 2,445 $ (1,891 ) $ 554 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 987 At December 31, 2017 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (869 ) $ 285 Developed software 2 - 5 years 601 (301 ) 300 Customer base 2 years 617 (573 ) 44 Trade names 7 - 10 years 54 (16 ) 38 Other 1 - 15 years 19 (13 ) 6 Total definite-lived intangible assets $ 2,445 $ (1,772 ) $ 673 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 1,106 Amortization expense of our intangible assets was $119 million and $190 million for the three months ended March 31, 2018 and 2017, respectively . At March 31, 2018 , future amortization of definite-lived intangible assets is estimated as follows (amounts in millions): 2018 (remaining nine months) $ 252 2019 210 2020 69 2021 12 2022 7 Thereafter 4 Total $ 554

Goodwill

Goodwill	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows (amounts in millions): Activision Blizzard King Total Balance at December 31, 2017 $ 6,898 $ 190 $ 2,675 $ 9,763 Other 1 — — 1 Balance at March 31, 2018 $ 6,899 $ 190 $ 2,675 $ 9,764

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial Accounting Standards Board (“FASB”) literature regarding fair value measurements for certain assets and liabilities establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or other inputs that are observable or can be corroborated by observable market data; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Fair Value Measurements on a Recurring Basis The table below segregates all of our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions): Fair Value Measurements at March 31, 2018 Using As of March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 4,934 $ 4,934 $ — $ — Cash and cash equivalents Foreign government treasury bills 49 49 — — Cash and cash equivalents U.S. treasuries and government agency securities 75 75 — — Other current assets Foreign currency forward contracts not designated as hedges 3 — 3 — Other current assets Total recurring fair value measurements $ 5,061 $ 5,058 $ 3 $ — Financial liabilities: Foreign currency forward contracts designated as hedges $ (22 ) $ — $ (22 ) $ — Accrued expenses and other liabilities Fair Value Measurements at December 31, 2017 Using As of December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 4,405 $ 4,405 $ — $ — Cash and cash equivalents Foreign government treasury bills 39 39 — — Cash and cash equivalents U.S. treasuries and government agency securities 55 55 — — Other current assets Total recurring fair value measurements $ 4,499 $ 4,499 $ — $ — Financial liabilities: Foreign currency forward contracts designated as hedges $ (5 ) $ — $ (5 ) $ — Accrued expenses and other liabilities Foreign Currency Forward Contracts Foreign Currency Forward Contracts Designated as Hedges (“Cash Flow Hedges”) The total gross notional amounts and fair values of our Cash Flow Hedges are as follows (amounts in millions): As of March 31, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell Euro $ 610 $ (22 ) $ 521 $ (5 ) At March 31, 2018 , our Cash Flow Hedges have remaining maturities of 12 months or less. Additionally, approximately $5 million of net realized but unrecognized losses are recorded within “Accumulated other comprehensive income (loss)” at March 31, 2018 for Cash Flow Hedges that had settled but were deferred and will be amortized into earnings, along with the associated hedged revenues . Such amounts will be reclassified into earnings within the next 12 months. The amount of pre-tax net realized gains (losses) associated with our Cash Flow Hedges that were reclassified out of “Accumulated other comprehensive income (loss)” and into earnings was as follows (amounts in millions): For the Three Months Ended March 31, 2018 2017 Statement of Operations Classification Cash Flow Hedges $ (10 ) $ 6 Net revenues Foreign Currency Forward Contracts Not Designated as Hedges The total gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions): As of March 31, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy Euro, Sell USD $ 137 $ 3 $ — $ — For the three months ended March 31, 2017 and 2016, pre-tax net gains associated with these forward contracts were recorded in "General and administrative expenses" and were not material. Fair Value Measurements on a Non-Recurring Basis We measure the fair value of certain assets on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. For the three months ended March 31, 2018 and 2017 , there were no impairment charges related to assets that are measured on a non-recurring basis.

Deferred Revenue

Deferred Revenue	3 Months Ended
	Mar. 31, 2018
Revenue Recognition and Deferred Revenue [Abstract]
Deferred Revenue	Deferred revenue We record deferred revenue when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The opening balance and ending balance of deferred revenues as of January 1, 2018 and March 31, 2018 was $1.8 billion and $1.2 billion , respectively, including our current and non-current balances. For the three months ended March 31, 2018, the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the three months ended March 31, 2018, $1.1 billion of revenues were recognized that were included in the deferred revenue balance at the beginning of the period. As of March 31, 2018, the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $1.7 billion , which includes our deferred revenues balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize a significant majority of this balance as revenue over the next 12 months, and the remainder thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee.

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	Debt Credit Facilities At December 31, 2017, we had outstanding term loans “A” of approximately $990 million (the “2017 TLA”) and $250 million available under a revolving credit facility (the “Revolver”) pursuant to a credit agreement executed 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 at March 31, 2018 , the 2017 TLA bore interest at 3.00% and had an outstanding balance of $990 million . We were in compliance with the terms of the Credit Agreement as of March 31, 2018 . Refer to Note 11 contained in our Annual Report on Form 10-K for the year ended December 31, 2017 for further details regarding the Credit Agreement, key terms, and amendments made to the Credit Agreement. Unsecured Senior Notes At March 31, 2018 and December 31, 2017 , we had the following unsecured senior notes outstanding: • $750 million of 6.125% unsecured senior notes due September 2023 that we issued on September 19, 2013 (the “2023 Notes”), in a private offering made in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”); • $650 million of 2.3% unsecured senior notes due September 2021 (the “2021 Notes”) and $850 million of 3.4% unsecured senior notes due September 2026 (the “2026 Notes”) that we initially issued on September 19, 2016, in a private offering made in accordance with Rule 144A and Regulation S under the Securities Act, and subsequently exchanged for publicly registered notes in June 2017; and • $400 million of 2.6% unsecured senior notes due June 2022 (the “2022 Notes”), $400 million of 3.4% unsecured senior notes due June 2027 (the “2027 Notes”), and $400 million of 4.5% unsecured senior notes due June 2047 (the “2047 Notes”, and together with the 2021 Notes, the 2022 Notes, the 2023 Notes, the 2026 Notes, and the 2027 Notes, the “Notes”), that we issued on May 26, 2017, in a public underwritten offering. The Notes are general senior obligations of the Company and rank pari passu in right of payment to all of the Company’s existing and future senior indebtedness, including the 2017 TLA and Revolver described above. The Notes are not secured and are effectively subordinated to any of the Company’s existing and future indebtedness that is secured. We were in compliance with the terms of the Notes as of March 31, 2018 . Interest is payable semi-annually in arrears on March 15 and September 15 of each year for the 2021 Notes, the 2023 Notes, and 2026 Notes, and payable semi-annually in arrears on June 15 and December 15 of each year for the 2022 Notes, the 2027 Notes, and 2047 Notes. Accrued interest payable is recorded within “Accrued expenses and other liabilities” in our condensed consolidated balance sheets. As of March 31, 2018 and December 31, 2017 , we had accrued interest payable of $16 million and $28 million , respectively, related to the Notes. Refer to Note 11 contained in our Annual Report on Form 10-K for the year ended December 31, 2017 for further details regarding our key terms under our indentures that govern the Notes. Interest Expense and Financing Costs Fees and discounts associated with the issuance of our debt instruments are recorded as debt discount, which reduces their respective carrying values, and are amortized over their respective terms. Amortization expense is recorded within “Interest and other expense (income), net” in our condensed consolidated statement of operations. For the three months ended March 31, 2018 and March 31, 2017 , interest expense was $40 million and $35 million , respectively; amortization of the debt discount and deferred financing costs was $2 million and $7 million , respectively; and commitment fees for the Revolver were not material. A summary of our outstanding debt is as follows (amounts in millions): At March 31, 2018 Gross Carrying Amount Unamortized Net Carrying 2017 TLA $ 990 $ (7 ) $ 983 2021 Notes 650 (4 ) 646 2022 Notes 400 (4 ) 396 2023 Notes 750 (9 ) 741 2026 Notes 850 (9 ) 841 2027 Notes 400 (5 ) 395 2047 Notes 400 (10 ) 390 Total long-term debt $ 4,440 $ (48 ) $ 4,392 At December 31, 2017 Gross Carrying Unamortized Net Carrying 2017 TLA $ 990 $ (8 ) $ 982 2021 Notes 650 (4 ) 646 2022 Notes 400 (4 ) 396 2023 Notes 750 (9 ) 741 2026 Notes 850 (9 ) 841 2027 Notes 400 (6 ) 394 2047 Notes 400 (10 ) 390 Total long-term debt $ 4,440 $ (50 ) $ 4,390 As of March 31, 2018 , the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years are as follows (amounts in millions): For the year ending December 31, 2018 (remaining nine months) $ — 2019 — 2020 — 2021 1,640 2022 400 Thereafter 2,400 Total $ 4,440 On February 1, 2018, our Board of Directors authorized repayments of up to $ 1.8 billion of the company’s outstanding debt during 2018. The determination as to if and when we make any such repayment will be dependent on market conditions and other factors. Using Level 2 inputs (i.e., observable market prices in less-than-active markets) at March 31, 2018 , with the exception of the 2023 Notes, the carrying values of our debt instruments approximated their fair values, as the interest rates were similar to current rates at which we could borrow funds over the selected interest periods. At March 31, 2018 , based on Level 2 inputs, the fair value of the 2023 Notes was $785 million . Using Level 2 inputs at December 31, 2017 , with the exception of the 2023 Notes and the 2047 Notes, the carrying values of our debt instruments approximated their fair values. At December 31, 2017 , based on Level 2 inputs, the fair values of the 2023 Notes and the 2047 Notes were $795 million and $421 million , respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) were as follows (amounts in millions): For the Three Months Ended March 31, 2018 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2017 $ (623 ) $ (15 ) $ — $ (638 ) Cumulative impact from adoption of new revenue accounting standard 3 — — 3 Other comprehensive income (loss) before reclassifications 1 (22 ) (3 ) (24 ) Amounts reclassified from accumulated other comprehensive income (loss) into earnings — 10 — 10 Balance at March 31, 2018 $ (619 ) $ (27 ) $ (3 ) $ (649 ) For the Three Months Ended March 31, 2017 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2016 $ (659 ) $ 29 $ 1 $ (629 ) Other comprehensive income (loss) before reclassifications 3 (9 ) — (6 ) Amounts reclassified from accumulated other comprehensive income (loss) into earnings 16 (6 ) — 10 Balance at March 31, 2017 $ (640 ) $ 14 $ 1 $ (625 ) Income taxes were not provided for foreign currency translation items, as these are considered indefinite investments in non-U.S. subsidiaries. Due to the Tax Cuts and Jobs Act (the “U.S. Tax Reform Act”), we are re-evaluating our indefinite reinvestment assertions, but we have not yet completed this evaluation. In accordance with SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), we intend to complete this evaluation during the measurement period, which can be up to one year, and will record adjustments, if any, during this measurement period.

Operating Segments and Geograph

Operating Segments and Geographic Region	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Operating Segments and Geographic Region	Operating Segments and Geographic Region Currently, we have three reportable segments. Our operating segments are consistent with the manner in which our operations are reviewed and managed by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). The CODM reviews segment performance exclusive of: the impact of the change in deferred revenues and related cost of revenues with respect to certain of our online-enabled games; share-based compensation expense; amortization of intangible assets as a result of purchase price accounting; fees and other expenses (including legal fees, expenses, and accruals) related to acquisitions, associated integration activities, and financings; certain restructuring 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 organization structure, the way we assess operating performance and allocate resources, and the availability of separate financial information. We do not aggregate operating segments. As discussed in Note 1, commencing with the second quarter of 2017, we made changes to our operating segments which reflect the changes in our organization and reporting structure. Our MLG business, which was previously included in the non-reportable “Other segments,” is now presented within the “Blizzard” reportable operating segment. Prior period amounts have been revised to reflect this change. The change had no impact on consolidated net revenues or operating income. Information on the reportable segments net revenues and segment operating income are presented below (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 312 $ 479 $ 534 $ 1,325 Intersegment net revenues (1) — 1 — 1 Segment net revenues $ 312 $ 480 $ 534 $ 1,326 Segment operating income $ 92 $ 122 $ 191 $ 405 Three Months Ended March 31, 2017 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 215 $ 443 $ 474 $ 1,132 Intersegment net revenues (1) — — — — Segment net revenues $ 215 $ 443 $ 474 $ 1,132 Segment operating income $ 24 $ 159 $ 166 $ 349 (1) Intersegment revenues reflect licensing and service fees charged between segments. Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions): Three Months Ended March 31, 2018 2017 Reconciliation to consolidated net revenues: Segment net revenues $ 1,326 $ 1,132 Revenues from other segments (1) 59 64 Net effect from recognition (deferral) of deferred net revenues 581 530 Elimination of intersegment revenues (2) (1 ) — Consolidated net revenues $ 1,965 $ 1,726 Reconciliation to consolidated income before income tax expense: Segment operating income $ 405 $ 349 Operating (loss) income from other segments (1) (11 ) 2 Net effect from recognition (deferral) of deferred net revenues and related cost of revenues 373 396 Share-based compensation expense (53 ) (33 ) Amortization of intangible assets (119 ) (190 ) Fees and other expenses related to the acquisition of King (3) — (4 ) Restructuring costs (4) — (11 ) Other non-cash charges (5) — (16 ) Consolidated operating income 595 493 Interest and other expense (income), net 28 40 Consolidated income before income tax expense $ 567 $ 453 (1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes unallocated corporate income and expenses. (2) Intersegment revenues reflect licensing and service fees charged between segments. (3) Reflects fees and other expenses, such as legal, banking, and professional services fees, related to the acquisition of King and associated integration activities, inclusive of related debt financings. (4) Reflects restructuring charges, primarily severance costs. (5) Reflects a non-cash accounting charge to reclassify certain cumulative translation gains (losses) into earnings due to the substantial liquidation of certain of our foreign entities. Due to requirements from our adoption of the new revenue accounting standard discussed in Note 2, net revenues by distribution channel for the three months ended March 31, 2018, include a reconciliation to our segment revenues as disclosed for each of our reportable segments above. Net revenues by distribution channel were as follows (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 476 $ 455 $ 533 $ — $ (1 ) $ 1,463 Retail channels 396 13 — — — 409 Other (2) — 40 — 53 — 93 Total consolidated net revenues $ 872 $ 508 $ 533 $ 53 $ (1 ) $ 1,965 Change in deferred revenues: Digital online channels (1) $ (232 ) $ (27 ) $ 1 $ — $ — $ (258 ) Retail channels (328 ) (2 ) — — — (330 ) Other (2) — 1 — 6 — 7 Total change in deferred revenues $ (560 ) $ (28 ) $ 1 $ 6 $ — $ (581 ) Segment net revenues: Digital online channels (1) $ 244 $ 428 $ 534 $ — $ (1 ) $ 1,205 Retail channels 68 11 — — — 79 Other (2) — 41 — 59 — 100 Total segment net revenues $ 312 $ 480 $ 534 $ 59 $ (1 ) $ 1,384 Net revenues by distribution channel for the three months ended March 31, 2017, were as follows (amounts in millions): Three Months Ended March 31, 2017 Net revenues by distribution channel: Digital online channels (1) $ 1,386 Retail channels 270 Other (2) 70 Total consolidated net revenues $ 1,726 (1) Include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties. (2) Include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments. Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended March 31, 2018, were as follows (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 510 $ 234 $ 322 $ — $ (1 ) $ 1,065 EMEA (1) 305 169 160 53 — 687 Asia Pacific 57 105 51 — — 213 Total consolidated net revenues $ 872 $ 508 $ 533 $ 53 $ (1 ) $ 1,965 Change in deferred revenues: Americas $ (328 ) $ (6 ) $ 1 $ — $ — $ (333 ) EMEA (1) (198 ) (8 ) — 6 — (200 ) Asia Pacific (34 ) (14 ) — — — (48 ) Total change in deferred revenues $ (560 ) $ (28 ) $ 1 $ 6 $ — $ (581 ) Segment net revenues: Americas $ 182 $ 228 $ 323 $ — $ (1 ) $ 732 EMEA (1) 107 161 160 59 — 487 Asia Pacific 23 91 51 — — 165 Total segment net revenues $ 312 $ 480 $ 534 $ 59 $ (1 ) $ 1,384 Net revenues by geographic region for the three months ended March 31, 2017, were as follows (amounts in millions): Three Months Ended March 31, 2017 Net revenues by geographic region: Americas $ 929 EMEA (1) 554 Asia Pacific 243 Total consolidated net revenues $ 1,726 (1) Consists of the Europe, Middle East, and Africa geographic regions. (2) Intersegment revenues reflect licensing and service fees charged between segments. The Company’s net revenues in the U.S. were 47% of consolidated net revenues for both the three months ended March 31, 2018 and 2017 . The Company’s net revenues in the U.K. were 11% and 10% of consolidated net revenues for the three months ended March 31, 2018 and 2017, respectively . No other country’s net revenues exceeded 10% of consolidated net revenues for the three months ended March 31, 2018 or 2017 . Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended March 31, 2018, were as follows (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 769 $ 48 $ — $ — $ — $ 817 PC 99 378 43 — (1 ) 519 Mobile and ancillary (1) 4 42 490 — — 536 Other (2) — 40 — 53 — 93 Total consolidated net revenues $ 872 $ 508 $ 533 $ 53 $ (1 ) $ 1,965 Change in deferred revenues: Console $ (491 ) $ (19 ) $ — $ — $ — $ (510 ) PC (69 ) — — — — (69 ) Mobile and ancillary (1) — (10 ) 1 — — (9 ) Other (2) — 1 — 6 — 7 Total change in deferred revenues $ (560 ) $ (28 ) $ 1 $ 6 $ — $ (581 ) Segment net revenues: Console $ 278 $ 29 $ — $ — $ — $ 307 PC 30 378 43 — (1 ) 450 Mobile and ancillary (1) 4 32 491 — — 527 Other (2) — 41 — 59 — 100 Total segment net revenues $ 312 $ 480 $ 534 $ 59 $ (1 ) $ 1,384 Net revenues by platform for the three months ended March 31, 2017, were as follows (amounts in millions): Three Months Ended March 31, 2017 Net revenues by platform: Console $ 615 PC 566 Mobile and ancillary (1) 475 Other (2) 70 Total consolidated net revenues $ 1,726 (1) Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform specific game-related revenues, such as standalone sales of toys and accessories from our Skylanders ® franchise and other physical merchandise and accessories. (2) Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments. Long-lived assets by geographic region were as follows (amounts in millions): At March 31, 2018 At December 31, 2017 Long-lived assets (1) by geographic region: Americas $ 192 $ 197 EMEA 73 75 Asia Pacific 21 22 Total long-lived assets by geographic region $ 286 $ 294 (1) The only long-lived assets that we classify by region are our long-term tangible fixed assets, which consist of property, plant, and equipment assets; all other long-term assets are not allocated by location.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We account for our provision for income taxes in accordance with ASC 740, Income Taxes , which requires an estimate of the annual effective tax rate for the full year to be applied to the interim period, taking into account year-to-date amounts and projected results for the full year. The provision for income taxes represents federal, foreign, state, and local income taxes. Our effective tax rate differs 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 (including changes in the mix of income by tax jurisdiction); changes in enacted tax laws and regulations, and interpretations thereof, including with respect of 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. On December 22, 2017, the U.S. Tax Reform Act was enacted. The U.S. Tax Reform Act, among other things, reduced the U.S. corporate income tax rate from 35% to 21% beginning in 2018 and implemented a modified territorial tax system that imposes a one-time tax on deemed repatriated earnings of foreign subsidiaries. On December 22, 2017, the SEC staff issued SAB 118, which provides guidance on how to account for the effects of the U.S. Tax Reform Act under ASC 740. SAB 118 enables companies to record a provisional amount for the effects of the U.S. Tax Reform Act based on a reasonable estimate, subject to adjustment during a measurement period of up to one year, until accounting is complete. During the fourth quarter of 2017, we recorded provisional amounts for the effects of the U.S. Tax Reform Act in accordance with SAB 118. We continue to analyze the effects of the U.S. Tax Reform Act on our condensed consolidated financial statements. Accounting for the income tax effects of the U.S. Tax Reform Act requires complex new calculations to be performed and significant judgments in interpreting the legislation. Additional guidance may be issued on how the provisions of the U.S. Tax Reform Act will be applied or otherwise administered that is different from our interpretation. We may make adjustments to the provisional amounts as we collect and prepare the data necessary to finalize our calculations, interpret the U.S. Tax Reform Act and any additional guidance issued, and consider the effects of any additional actions we may take as a result of the U.S. Tax Reform Act. During the three months ended March 31, 2018, there were no changes made to the provisional amounts that were recorded during the fourth quarter of 2017. Additionally, we continue to evaluate the ongoing impacts of the U.S. Tax Reform Act, including provisions impacting certain foreign income, such as a tax on global intangible low-taxed income of foreign subsidiaries (“GILTI”) and a deduction for foreign derived intangible income (“FDII”). These provisions are complex and subject to continuing regulatory interpretation by the Internal Revenue Service (“IRS”). While we have included an estimate of GILTI and FDII in our estimated effective tax rate for 2018, we may make adjustments as we interpret the U.S. Tax Reform Act and any additional guidance issued, and consider the effects of any additional actions we may take as a result of the U.S. Tax Reform Act. The income tax expense of $67 million for the three months ended March 31, 2018 , reflects an effective tax rate of 12% , which is higher than the effective tax rate of 6% for the three months ended March 31, 2017 . The increase is due to a lower excess tax benefit from share-based payments, partially offset by the impact of new provisions in the U.S. Tax Reform Act, including the reduction of the U.S. corporate income tax rate and the impact of FDII net of GILTI. The effective tax rate of 12% for the three months ended March 31, 2018 , is lower than the U.S. statutory rate of 21% , primarily due to foreign earnings taxed at lower statutory rates, the recognition of excess tax benefits from share-based payments, and the recognition of federal and California research and development credits. Activision Blizzard's tax years 2009 through 2016 remain open to examination by the major taxing jurisdictions to which we are subject. The IRS is currently examining the Company's federal tax returns for the 2009 through 2011 tax years, and during February 2018, the Company was notified that our tax returns for 2012 through 2016 tax years will also be subject to examination. The Company also has several state and non-U.S. audits pending, including the French audit discussed below. In addition, as part of purchase price accounting for the acquisition of King, the Company assumed $74 million of uncertain tax positions primarily related to the transfer pricing on King tax years occurring prior to the acquisition of King. The Company is currently in negotiations with the relevant jurisdictions and taxing authorities with respect to King's transfer pricing, which could result in a different allocation of profits and losses between the relevant jurisdictions. On December 28, 2017, we received a Notice of Reassessment from the French Tax Authority ("FTA") related to transfer pricing concerning intercompany transactions involving one of our French subsidiaries for the 2011 through 2013 tax years. The total assessment, including penalties and interest, was approximately €571 million ( $680 million ). We disagree with the proposed assessment and intend to vigorously contest it. We plan to pursue all remedies available to us to successfully resolve this matter, including administrative remedies with the FTA, and. if necessary, judicial remedies. While we believe our tax provisions at March 31, 2018 are appropriate, until such time as this matter is ultimately resolved we could be subject to significant additional tax liabilities. In addition to the risk of additional tax for years 2011 through 2013, if litigation regarding this matter were adversely determined and/or if the FTA were to seek adjustments of a similar nature for subsequent years, we could be subject to significant additional tax liabilities. 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 period or periods in which the matters are resolved or in which appropriate tax provisions are taken into account in our financial statements. If we were to receive a materially adverse assessment from a taxing jurisdiction, we would plan to vigorously contest it and consider all of our options, including the pursuit of judicial remedies. We regularly assess the likelihood of adverse outcomes resulting from these examinations and monitor the progress of ongoing discussions with tax authorities in determining the appropriateness of our tax provisions. The final resolution of the Company's global tax disputes is uncertain. There is significant judgment required in the analysis of disputes, including the probability determination and estimation of the potential exposure. Based on current information, in the opinion of the Company's management, the ultimate resolution of these matters is not expected to have a material adverse effect on the Company's consolidated financial position, liquidity or results of operations, except as noted above.

Computation of Basic_Diluted Ea

Computation of Basic/Diluted Earnings Per Common Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Computation of Basic/Diluted Earnings Per Common Share	Computation of Basic/Diluted Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data): For the Three Months Ended March 31, 2018 2017 Numerator: Consolidated net income $ 500 $ 426 Denominator: Denominator for basic earnings per common share—weighted-average common shares outstanding 759 749 Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards 11 12 Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding 770 761 Basic earnings per common share $ 0.66 $ 0.57 Diluted earnings per common share $ 0.65 $ 0.56 The vesting of certain of our employee-related restricted stock units and options is contingent upon the satisfaction of pre-defined performance measures. The shares underlying these equity awards are included in the weighted-average dilutive common shares only if the performance measures are met as of the end of the reporting period. Approximately 6 million and 9 million shares are not included in the computation of diluted earnings per share for the three months ended March 31, 2018 and 2017, respectively, as their respective performance measures had not yet been met. 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. Therefore, approximately 2 million and 5 million options to acquire shares of common stock were not included in the calculation of diluted earnings per common share for the three months ended March 31, 2018 and March 31, 2017 , respectively, as the effect of their inclusion would be anti-dilutive.

Capital Transactions

Capital Transactions	3 Months Ended
	Mar. 31, 2018
Equity [Abstract]
Capital Transactions	Capital Transactions Repurchase Program On February 2, 2017, our Board of Directors authorized a stock repurchase program under which we are authorized to repurchase up to $1 billion of our common stock during the two-year period from February 13, 2017 through February 12, 2019. As of March 31, 2018 , we have not repurchased any shares under this program. Dividends On February 1, 2018, our Board of Directors approved a cash dividend of $0.34 per common share. Such dividend is payable on May 9, 2018, to shareholders of record at the close of business on March 30, 2018. We have recorded $259 million of dividends payable in “Accrued expenses and other liabilities” on our condensed consolidated balance sheet as of March 31, 2018. On February 2, 2017, our Board of Directors approved a cash dividend of $0.30 per common share. On May 10, 2017, we made an aggregate cash dividend payment of $226 million to shareholders of record at the close of business on March 30, 2017. On May 26, 2017, we made related dividend equivalent payments of less than $1 million to certain holders of restricted stock units.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings We are party to routine claims, suits, investigations, audits, and other proceedings arising from the ordinary course of business, including with respect to intellectual property rights, contractual claims, labor and employment matters, regulatory matters, tax matters, unclaimed property matters, compliance matters, and collection matters. In the opinion of management, after consultation with legal counsel, such routine claims and lawsuits are not significant and we do not expect them to have a material adverse effect on our business, financial condition, results of operations, or liquidity.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Consolidation and Presentation	Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (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. 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, 2017 . 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 (consisting of normal recurring accruals) considered necessary for the fair statement of our financial position and results of operations in accordance with U.S. GAAP 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 reclassifications have been made to prior year amounts to conform to the current period presentation. The Company considers events or transactions that occur after the balance sheet date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures.
Revenue from Contracts with Customers	Adoption of Accounting Standards Codification 606: Revenue from Contracts with Customers In May 2014, the FASB issued new accounting guidance related to revenue recognition. The new standard replaces all current U.S. GAAP guidance on this topic and eliminates all industry-specific guidance, providing a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. On January 1, 2018, we adopted the new accounting standard and related amendments (the “new revenue accounting standard”). As a result, we have updated our significant accounting policy disclosure for revenue recognition herein. Refer to Note 3 for the impact of adoption on our condensed consolidated financial statements. Revenue Recognition We generate revenue primarily through the sale of our interactive entertainment content and services, principally for console, PC, and mobile devices, as well as through the licensing of our intellectual property. Our products span various genres, including first-person shooter, action/adventure, role-playing, strategy, and "match three," among others. We primarily offer the following products and services: • full games, which typically provide access to main game content, primarily for console or PC; • downloadable content, which provides players with additional in-game content to purchase following the purchase of a full game; • microtransactions, which typically provide relatively small pieces of additional in-game content or enhancements to gameplay; and • subscriptions to players in our World of Warcraft franchise, which provide continual access to the game content. When control of the promised products and services is transferred to our customers, we recognize revenue in the amount that reflects the consideration we expect to receive in exchange for these products and services. We determine revenue recognition by: • identifying the contract, or contracts, with a customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. Certain products are sold to customers with a “street date” (which is the earliest date these products may be sold by retailers). For these products, we recognize revenues on the later of the street date and the date the product is sold to our customer. For digital full-game downloads sold to customers, we recognize revenue when it is available for download or is activated for gameplay. Revenues are recorded net of taxes assessed by governmental authorities that are imposed at the time of the specific revenue-producing transaction between us and our customer, such as sales and value-added taxes. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment immediately upon purchase or within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. Product Sales Product sales consist of sales of our games, including physical products and digital full-game downloads. We recognize revenues from the sale of our products after both (1) control of the products have been transferred to our customers and (2) underlying performance obligations have been satisfied. Revenues from product sales are recognized after deducting the estimated allowance for returns and price protection, which are accounted for as variable consideration when estimating the amount of revenue to recognize. Returns and price protection are estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Sales incentives and other consideration given by us to our customers, such as rebates and product placement fees, are considered adjustments of the transaction price of our products and are reflected as reductions to revenues. Sales incentives and other consideration that represent costs incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are recorded as "Sales and marketing" expense when the benefit from the sales incentive is separable from sales to the same customer and we can reasonably estimate the fair value of the good or service. Products with Online Functionality For our software products that include both offline functionality (i.e., do not require an Internet connection to access) and significant online functionality, such as titles for the Call of Duty franchise, we evaluate whether the license of our intellectual property and the online functionality are distinct and separable. This evaluation is performed for each software product or product add-on, including downloadable content. If we determine that our software products contain a license of intellectual property separate from the online functionality, we consider market conditions and other observable inputs to estimate the transaction price for the license, since we do not generally sell the software license on a standalone basis. These arrangements may be sold in a bundle with other products and services, which often results in the recognition of additional performance obligations. We recognize revenue for arrangements that include both a license of intellectual property and separate online functionality when control of the license transfers to our customers for the portion of the transaction price allocable to the license and ratably over the estimated service period for the portion of the transaction price allocable to the online functionality. Similarly, we defer a portion of the cost of revenues on these arrangements and recognize the costs as the related revenues are recognized. The cost of revenues that are deferred include product costs, distribution costs, and software royalties, amortization, and intellectual property licenses, and excludes intangible asset amortization. Online Hosted Software Arrangements For our online hosted software arrangements, such as titles for the Destiny, Overwatch, World of Warcraft, and Candy Crush franchises, substantially all gameplay and functionality are obtained through our continuous hosting of the game content for the player. Similar to our software products with online functionality, these arrangements may include other products and services, which often results in the recognition of additional performance obligations. Revenues related to online hosted software arrangements are generally recognized ratably over the estimated service period. Subscription Arrangements Subscription revenue arrangements are mostly derived from World of Warcraft , which is playable through Blizzard’s servers and is generally sold on a subscription-only basis. For World of Warcraft , after the first month of free usage that is included with the initial purchase of World of Warcraft software, the World of Warcraft end user may enter into a subscription agreement for additional future access. Revenues associated with the sales of subscriptions via initial software purchases and standalone subscriptions sales are deferred until the subscription service is activated by the consumer and are then recognized ratably over the subscription period as the performance obligations are satisfied. Revenues attributable to the initial purchase of World of Warcraft software by our customers and related sales of expansion packs are classified as “Product sales,” whereas revenues attributable to subscriptions and other in-game revenues are classified as “Subscription, licensing, and other revenues.” Licensing Revenues In certain countries, we utilize third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to specified or unspecified future updates. Our estimate of the selling price is comprised of several factors including, but not limited to, prior selling prices, prices charged separately by other third-party vendors for similar service offerings, and a cost-plus-margin approach. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee when we transfer control of the upfront license of intellectual property and/or upon transfer of control of future specified updates and ratably over the contractual term in which we provide the customer with unspecified future updates. Royalty payments in excess of the minimum guarantee are generally recognized when the licensed product is sold by the licensee. Other Revenues Other revenues primarily include revenues from downloadable content (e.g., multi-player content packs), microtransactions, and licensing of intellectual property other than software to third-parties. Microtransaction revenues are derived from the sale of virtual currencies and goods to our players to enhance their gameplay experience. Proceeds from these sales of virtual currencies and goods are initially recorded in deferred revenue. Proceeds from the sales of virtual currencies are recognized as revenues when a player uses the virtual goods purchased with a virtual currency. Proceeds from the sales of virtual goods directly are similarly recognized as revenues when a player uses the virtual goods. We categorize our virtual goods as either “consumable” or “durable”. Consumable virtual goods represent goods that can be consumed by a specific player action; accordingly, we recognize revenues from the sale of consumable virtual goods as the goods are consumed and our performance obligation is satisfied. Durable virtual goods represent goods that are accessible to the player over an extended period of time; accordingly, we recognize revenues from the sale of durable virtual goods ratably over the period of time the goods are available to the player and our performance obligation is satisfied, which is generally the estimated service period. Revenues from the licensing of intellectual property other than software to third parties primarily include the licensing of our (1) brand, logo, or franchise to customers and (2) media content. Fixed fee payments from customers for the license of our brand or franchise are generally recognized over the license term. Fixed fee payments from customers for the license of our media content are generally recognized when control has transferred to the customer, which may be upfront or over time. Significant Judgment around Revenue Arrangements with Multiple Deliverables Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Certain of our games, such as titles in the Call of Duty franchise, may contain a license of our intellectual property to play the game offline, but also depend on a significant level of integration and interdependency with the online functionality. In these cases, significant judgment is required to determine whether this license of our intellectual property should be considered distinct and accounted for separately, or not distinct and accounted for together with the online functionality provided and recognized over time. Generally, for titles in which the software license is functional without the online functionality and a significant component of gameplay is available offline, we believe we have separate performance obligations for the license of the intellectual property and the online functionality. Significant judgment is also required to determine the standalone selling price for each distinct performance obligation and to determine whether there is a discount that needs to be allocated based on the relative standalone selling price of the various products and services. To estimate the standalone selling price we consider market data, including our pricing strategies for the product being evaluated and other similar products we may offer, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin. Estimated Service Period We consider a variety of data points when determining the estimated service period for players of our games, including the weighted average number of days between players’ first and last days played online, the average total hours played, the average number of days in which player activity stabilizes, and the weighted-average number of days between players’ first purchase date and last date played online. We also consider known online trends, the service periods of our previously released games, and, to the extent publicly available, the service periods of our competitors’ games that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of services to our customers, as it is the best representation of the time period during which our customers play our games. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current games are generally less than 12 months . Principal Agent Considerations We evaluate sales of our products and content via third-party digital storefronts, such as Microsoft’s Xbox Games Store, Sony’s PSN, Apple App Store, and the Google Play Store, to determine whether revenues should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining gross versus net treatment include, but are not limited to, the following: • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of the above indicators, we report revenues on a gross basis for sales arrangements via Apple App Store and Google Play Store, and we report revenues on a net basis (i.e. net of fees retained by the digital storefront) for sales arrangements via Microsoft’s Xbox Games Store and Sony’s PSN. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in our accounts receivable balance. In estimating the allowance for doubtful accounts, we analyze the age of current outstanding account balances, historical bad debts, customer concentrations, customer creditworthiness, current economic trends, and changes in our customers’ payment terms and their economic condition, as well as whether we can obtain sufficient credit insurance. Any significant changes in any of these criteria would affect management’s estimates in establishing our allowance for doubtful accounts. Deferred revenue is comprised primarily of unearned revenue related to the sale of products with online functionality or online hosted arrangements. These sales are typically invoiced and collected on at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue also includes payments for: product sales pending delivery or activation; subscription revenues; licensing revenues with fixed minimum guarantees; and other revenues for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 9 - Deferred revenue for further information, including changes in deferred revenue during the period. Assets Recognized from the Costs to Obtain a Contract with a Customer We apply the practical expedient to expense, as incurred, costs to obtain a contract with a customer when the amortization period would have been one year or less for certain similar contracts in which commissions are paid to internal personnel or third parties. We believe application of the practical expedient has a limited effect on the amount or timing of cost recognition. Total capitalized costs to obtain a contract were immaterial as of March 31, 2018. Allowances for Returns and Price Protection We closely monitor and analyze the historical performance of our various titles, the performance of products released by other publishers, market conditions, and the anticipated timing of other releases to assess future demand of current and upcoming titles. Initial volumes shipped upon title launch and subsequent reorders are evaluated with the goal of ensuring that quantities are sufficient to meet the demand from the retail markets, but at the same time are controlled to prevent excess inventory in the channel. We benchmark units to be shipped to our customers using historical and industry data. We may permit product returns from, or grant price protection to, our customers under certain conditions. In general, price protection refers to the circumstances in which we elect to decrease, on a short- or longer-term basis, the wholesale price of a product by a certain amount and, when granted and applicable, allow customers a credit against amounts owed by such customers to us with respect to open and/or future invoices. The conditions our customers must meet to be granted the right to return products or receive price protection credits include, among other things, compliance with applicable trading and payment terms and consistent return of inventory and delivery of sell-through reports to us. We may also consider other factors, including achievement of sell-through performance targets in certain instances, the facilitation of slow-moving inventory, and other market factors. Significant management judgments and estimates with respect to potential future product returns and price protection related to current period product revenues must be made and used when establishing the allowance for returns and price protection in any accounting period. We estimate the amount of future returns and price protection for current period product revenues utilizing historical experience and information regarding inventory levels and the demand and acceptance of our products by the end consumer, and record revenue for the transferred products in the amount of consideration to which we expect to be entitled to. The following factors are used to estimate the amount of future returns and price protection for a particular title: historical performance of titles in similar genres; historical performance of the hardware platform; historical performance of the franchise; console hardware life cycle; sales force and retail customer feedback; industry pricing; future pricing assumptions; weeks of on-hand retail channel inventory; absolute quantity of on-hand retail channel inventory; our warehouse on-hand inventory levels; the title’s recent sell-through history (if available); marketing trade programs; and the performance of competing titles. The relative importance of these factors varies among titles depending upon, among other things, genre, platform, seasonality, and sales strategy. Based upon historical experience, we believe that our estimates are reasonable. However, actual returns and price protection could vary materially from our allowance estimates due to a number of reasons, including, among others: a lack of consumer acceptance of a title, the release in the same period of a similarly themed title by a competitor, or technological obsolescence due to the emergence of new hardware platforms. There may be material differences in the amount and timing of our revenues for any period if factors or market conditions change or if matters resolve in a manner that is inconsistent with management’s assumptions utilized in determining the allowances for returns and price protection. Shipping and Handling Shipping and handling costs consist primarily of packaging and transportation charges incurred to move finished goods to customers. We recognize all shipping and handling costs as an expense in "Cost of revenues-product costs," including those incurred when control of the product has already transferred to the customer.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements Recently Adopted Accounting Pronouncements Revenue Recognition As noted in Note 2 above, we adopted the new revenue accounting standard effective January 1, 2018, utilizing the modified retrospective method. Additionally, we elected to apply the new revenue accounting standard only to contracts not completed as of the adoption date. For contracts that were modified before the period of adoption, we elected to reflect the aggregate effect of all modifications when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the new revenue accounting standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect adjustment recorded to our retained earnings was $88 million (see our condensed consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our condensed consolidated balance sheet at January 1, 2018 (amounts in millions): Condensed Consolidated Balance Sheet: Balance at December 31, 2017 Adjustments due to adoption of new revenue accounting standard Balance at January 1, 2018 Assets Accounts receivable, net $ 918 $ 3 $ 921 Software development 367 (20 ) 347 Other current assets 476 (35 ) 441 Deferred income taxes, net 459 (32 ) 427 Other assets 440 4 444 Liabilities and Shareholders' Equity Deferred revenues $ 1,929 $ (194 ) $ 1,735 Other liabilities 1,132 23 1,155 Shareholders' equity 9,462 91 9,553 The most significant impacts of the new revenue accounting standard for us are: • The accounting for our sales of our games with significant online functionality for which we do not have vendor-specific objective evidence (“VSOE”) for unspecified future updates and ongoing online services provided. Under the prior accounting standards, VSOE for undelivered elements was required. This requirement was eliminated under the new revenue accounting standard. Accordingly, we are required to recognize as revenue a portion of the sales price upon delivery of this software, as compared to recognizing the entire sales price ratably over an estimated service period as previously required. This difference in accounting primarily impacted revenues from our Call of Duty franchise, where approximately 20% of the sales price is now recognized as revenue upon delivery of the games to our customers. Many of our other franchises, such as Destiny, Overwatch, World of Warcraft, and Candy Crush, are online hosted arrangements, and the accounting for our sales of these games under the new standard is relatively unchanged; and • The accounting for certain of our software licensing arrangements. While the impacts of the new revenue accounting standard may differ on a contract-by-contract basis (as the actual revenue recognition treatment required under the standard will depend on contract-specific terms), the new revenue accounting standard generally results in earlier revenue recognition for these arrangements. Adoption of the new revenue accounting standard impacted our condensed consolidated statement of operations for the three months ended March 31, 2018, and our condensed consolidated balance sheet as of March 31, 2018 as follows (in millions, except per share data): For the Three Months Ended March 31, 2018 Condensed Consolidated Statement of Operations: Under new revenue accounting standard Under old revenue accounting standards Increase (decrease) due to adoption of new revenue accounting standard Net revenues Product sales $ 720 $ 802 $ (82 ) Subscription, licensing, and other revenues 1,245 1,238 7 Total net revenues 1,965 2,040 (75 ) Costs and expenses Cost of revenues—product sales: Product costs 162 176 (14 ) Software royalties, amortization, and intellectual property licenses 146 153 (7 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 270 270 — Software royalties, amortization, and intellectual property licenses 84 84 — Product development 259 259 — Sales and marketing 251 251 — General and administrative 198 198 — Total costs and expenses 1,370 1,391 (21 ) Operating income 595 649 (54 ) Interest and other expense (income), net 28 28 — Income before income tax expense 567 621 (54 ) Income tax expense 67 79 (12 ) Net income $ 500 $ 542 $ (42 ) Earnings per common share Basic $ 0.66 $ 0.71 $ (0.05 ) Diluted $ 0.65 $ 0.70 $ (0.05 ) At March 31. 2018 Condensed Consolidated Balance Sheet: Under new revenue accounting standard Under old revenue accounting standards Increase (decrease) due to adoption of new revenue accounting standard Assets Accounts receivable, net $ 431 $ 430 $ 1 Software development 298 310 (12 ) Other current assets 422 444 (22 ) Deferred income taxes, net 400 423 (23 ) Other assets 458 455 3 Liabilities and Shareholders' Equity Deferred revenues $ 1,204 $ 1,320 $ (116 ) Accrued expenses and other liabilities 1,551 1,553 (2 ) Other liabilities 1,243 1,229 14 Shareholders' equity 9,819 9,768 51 Adoption of the new revenue accounting standard had no impact to net cash from or used in operating, investing, or financing activities in our condensed consolidated statement of cash flows. Financial Instruments In January 2016, the FASB issued new guidance related to the recognition and measurement of financial assets and financial liabilities. The new standard, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. The new standard also simplifies the impairment assessment of equity investments without readily determinable fair values. The new standard is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. We adopted the new standard during the first quarter of 2018 and it did not have a material impact on our condensed consolidated financial statements. Statement of Cash Flows-Restricted Cash In November 2016, the FASB issued new guidance related to the classification of restricted cash in the statement of cash flows. The new standard requires that a statement of cash flows explain any change during the period in total cash, cash equivalents, and restricted cash. Therefore, restricted cash will be included with “Cash and cash equivalents” when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, and should be applied retrospectively. Early adoption is permitted. We adopted the new standard during the first quarter of 2018 and applied the standard retrospectively for all periods presented. The application of this new standard did not have a material impact on our condensed consolidated statements of cash flows for the three months ended March 31, 2018 and 2017. In our Annual Report on Form 10-K for the year ending December 31, 2018, there will be a significant impact to the consolidated statements of cash flows for 2016, as this period includes, as an investing activity, the $ 3.6 billion movement in restricted cash resulting from the transfer of cash into escrow at December 31, 2015 to facilitate the acquisition of King, and the subsequent release of that cash in 2016 to complete the acquisition. Under this new standard, the restricted cash balance will be included in the beginning and ending total cash, cash equivalents, and restricted cash balances and, hence, will not be included as an investing activity in the statement of cash flows. Derivatives and Hedging In August 2017, the FASB issued new guidance related to the accounting for derivatives and hedging. The new guidance expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedged items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of a hedge’s effectiveness. The new standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We adopted the standard during the first quarter of 2018. The adoption of the standard did not have a material impact to our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued new guidance related to the accounting for leases. The new standard will replace all current U.S. GAAP guidance on this topic. The new standard, among other things, requires a lessee to classify a lease as either an operating or financing lease, and to recognize a lease liability and a right-of-use asset for its leases. The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment for initial direct costs, lease incentives received, and any prepaid lease payments. Operating leases will result in a straight-line expense pattern, while finance leases will result in a front-loaded expense pattern. Classification will be based on criteria that are largely similar to those applied in current lease accounting. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and will require application of the new guidance at the beginning of the earliest comparative period presented, with certain transition practical expedients available to provide relief in adopting the new standard. We are evaluating the impact of this new accounting guidance on our financial statements, but expect it to have a material impact to our consolidated balance sheet as a result of establishing lease liabilities and right-of-use assets for our operating leases. We do not plan to early adopt this new standard but do expect to elect and apply the available transition practical expedients upon adoption. Goodwill In January 2017, the FASB issued new guidance which eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, an entity will be required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit, as determined in Step 1 from the goodwill impairment test, with its carrying amount and recognize an impairment charge, if any, for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019, and should be applied prospectively. Early adoption is permitted. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. We are evaluating the impact, if any, of adopting this new accounting guidance on our consolidated financial statements.

Recently Issued Accounting Pr26

Recently Issued Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Schedule of Impact of Adoption	Adoption of the new revenue accounting standard impacted our condensed consolidated statement of operations for the three months ended March 31, 2018, and our condensed consolidated balance sheet as of March 31, 2018 as follows (in millions, except per share data): For the Three Months Ended March 31, 2018 Condensed Consolidated Statement of Operations: Under new revenue accounting standard Under old revenue accounting standards Increase (decrease) due to adoption of new revenue accounting standard Net revenues Product sales $ 720 $ 802 $ (82 ) Subscription, licensing, and other revenues 1,245 1,238 7 Total net revenues 1,965 2,040 (75 ) Costs and expenses Cost of revenues—product sales: Product costs 162 176 (14 ) Software royalties, amortization, and intellectual property licenses 146 153 (7 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 270 270 — Software royalties, amortization, and intellectual property licenses 84 84 — Product development 259 259 — Sales and marketing 251 251 — General and administrative 198 198 — Total costs and expenses 1,370 1,391 (21 ) Operating income 595 649 (54 ) Interest and other expense (income), net 28 28 — Income before income tax expense 567 621 (54 ) Income tax expense 67 79 (12 ) Net income $ 500 $ 542 $ (42 ) Earnings per common share Basic $ 0.66 $ 0.71 $ (0.05 ) Diluted $ 0.65 $ 0.70 $ (0.05 ) At March 31. 2018 Condensed Consolidated Balance Sheet: Under new revenue accounting standard Under old revenue accounting standards Increase (decrease) due to adoption of new revenue accounting standard Assets Accounts receivable, net $ 431 $ 430 $ 1 Software development 298 310 (12 ) Other current assets 422 444 (22 ) Deferred income taxes, net 400 423 (23 ) Other assets 458 455 3 Liabilities and Shareholders' Equity Deferred revenues $ 1,204 $ 1,320 $ (116 ) Accrued expenses and other liabilities 1,551 1,553 (2 ) Other liabilities 1,243 1,229 14 Shareholders' equity 9,819 9,768 51 The cumulative effect adjustment recorded to our retained earnings was $88 million (see our condensed consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our condensed consolidated balance sheet at January 1, 2018 (amounts in millions): Condensed Consolidated Balance Sheet: Balance at December 31, 2017 Adjustments due to adoption of new revenue accounting standard Balance at January 1, 2018 Assets Accounts receivable, net $ 918 $ 3 $ 921 Software development 367 (20 ) 347 Other current assets 476 (35 ) 441 Deferred income taxes, net 459 (32 ) 427 Other assets 440 4 444 Liabilities and Shareholders' Equity Deferred revenues $ 1,929 $ (194 ) $ 1,735 Other liabilities 1,132 23 1,155 Shareholders' equity 9,462 91 9,553

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories, net, consist of the following (amounts in millions): At March 31, 2018 At December 31, 2017 Finished goods $ 41 $ 45 Purchased parts and components 1 1 Inventories, net $ 42 $ 46

Software Development and Inte28

Software Development and Intellectual Property Licenses (Tables)	3 Months Ended
	Mar. 31, 2018
Software Development Costs and Intellectual Property Licenses
Summary of the components of capitalized software development	The following table summarizes the components of our capitalized software development costs (amounts in millions): At March 31, 2018 At December 31, 2017 Internally-developed software costs $ 258 $ 270 Payments made to third-party software developers 132 183 Total software development costs $ 390 $ 453
Amortization of capitalized software development costs and intellectual property licenses	Amortization of capitalized software development costs and intellectual property licenses was as follows (amounts in millions): 23 For the Three Months Ended March 31, 2018 2017 Amortization of capitalized software development costs and intellectual property licenses $ 152 $ 93

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of finite-lived intangible assets	Intangible assets, net, consist of the following (amounts in millions): At March 31, 2018 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (907 ) $ 247 Developed software 2 - 5 years 601 (337 ) 264 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (17 ) 37 Other 1 - 15 years 19 (13 ) 6 Total definite-lived intangible assets $ 2,445 $ (1,891 ) $ 554 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 987 At December 31, 2017 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (869 ) $ 285 Developed software 2 - 5 years 601 (301 ) 300 Customer base 2 years 617 (573 ) 44 Trade names 7 - 10 years 54 (16 ) 38 Other 1 - 15 years 19 (13 ) 6 Total definite-lived intangible assets $ 2,445 $ (1,772 ) $ 673 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 1,106
Schedule of indefinite-lived intangible assets	Intangible assets, net, consist of the following (amounts in millions): At March 31, 2018 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (907 ) $ 247 Developed software 2 - 5 years 601 (337 ) 264 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (17 ) 37 Other 1 - 15 years 19 (13 ) 6 Total definite-lived intangible assets $ 2,445 $ (1,891 ) $ 554 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 987 At December 31, 2017 Estimated useful lives Gross carrying amount Accumulated amortization Net carrying amount Acquired definite-lived intangible assets: Internally-developed franchises 3 - 11 years $ 1,154 $ (869 ) $ 285 Developed software 2 - 5 years 601 (301 ) 300 Customer base 2 years 617 (573 ) 44 Trade names 7 - 10 years 54 (16 ) 38 Other 1 - 15 years 19 (13 ) 6 Total definite-lived intangible assets $ 2,445 $ (1,772 ) $ 673 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 1,106
Schedule of finite lived intangible assets, future amortization expense	At March 31, 2018 , future amortization of definite-lived intangible assets is estimated as follows (amounts in millions): 2018 (remaining nine months) $ 252 2019 210 2020 69 2021 12 2022 7 Thereafter 4 Total $ 554

Goodwill (Tables)

Goodwill (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amount of goodwill by reportable segment are as follows (amounts in millions): Activision Blizzard King Total Balance at December 31, 2017 $ 6,898 $ 190 $ 2,675 $ 9,763 Other 1 — — 1 Balance at March 31, 2018 $ 6,899 $ 190 $ 2,675 $ 9,764

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair value, assets measured on a recurring and/or non-recurring basis	The table below segregates all of our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions): Fair Value Measurements at March 31, 2018 Using As of March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 4,934 $ 4,934 $ — $ — Cash and cash equivalents Foreign government treasury bills 49 49 — — Cash and cash equivalents U.S. treasuries and government agency securities 75 75 — — Other current assets Foreign currency forward contracts not designated as hedges 3 — 3 — Other current assets Total recurring fair value measurements $ 5,061 $ 5,058 $ 3 $ — Financial liabilities: Foreign currency forward contracts designated as hedges $ (22 ) $ — $ (22 ) $ — Accrued expenses and other liabilities Fair Value Measurements at December 31, 2017 Using As of December 31, 2017 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 4,405 $ 4,405 $ — $ — Cash and cash equivalents Foreign government treasury bills 39 39 — — Cash and cash equivalents U.S. treasuries and government agency securities 55 55 — — Other current assets Total recurring fair value measurements $ 4,499 $ 4,499 $ — $ — Financial liabilities: Foreign currency forward contracts designated as hedges $ (5 ) $ — $ (5 ) $ — Accrued expenses and other liabilities
Foreign currency forward contracts	The total gross notional amounts and fair values of our foreign currency forward contracts not designated as hedges are as follows (amounts in millions): As of March 31, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy Euro, Sell USD $ 137 $ 3 $ — $ — The total gross notional amounts and fair values of our Cash Flow Hedges are as follows (amounts in millions): As of March 31, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell Euro $ 610 $ (22 ) $ 521 $ (5 )
Net realized gains (losses) reclassified out of accumulated other comprehensive income (loss)	The amount of pre-tax net realized gains (losses) associated with our Cash Flow Hedges that were reclassified out of “Accumulated other comprehensive income (loss)” and into earnings was as follows (amounts in millions): For the Three Months Ended March 31, 2018 2017 Statement of Operations Classification Cash Flow Hedges $ (10 ) $ 6 Net revenues

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Summary of debt	A summary of our outstanding debt is as follows (amounts in millions): At March 31, 2018 Gross Carrying Amount Unamortized Net Carrying 2017 TLA $ 990 $ (7 ) $ 983 2021 Notes 650 (4 ) 646 2022 Notes 400 (4 ) 396 2023 Notes 750 (9 ) 741 2026 Notes 850 (9 ) 841 2027 Notes 400 (5 ) 395 2047 Notes 400 (10 ) 390 Total long-term debt $ 4,440 $ (48 ) $ 4,392 At December 31, 2017 Gross Carrying Unamortized Net Carrying 2017 TLA $ 990 $ (8 ) $ 982 2021 Notes 650 (4 ) 646 2022 Notes 400 (4 ) 396 2023 Notes 750 (9 ) 741 2026 Notes 850 (9 ) 841 2027 Notes 400 (6 ) 394 2047 Notes 400 (10 ) 390 Total long-term debt $ 4,440 $ (50 ) $ 4,390
Schedule of maturities of debt	As of March 31, 2018 , the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years are as follows (amounts in millions): For the year ending December 31, 2018 (remaining nine months) $ — 2019 — 2020 — 2021 1,640 2022 400 Thereafter 2,400 Total $ 4,440

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of accumulated other comprehensive income (loss)	The components of accumulated other comprehensive income (loss) were as follows (amounts in millions): For the Three Months Ended March 31, 2018 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2017 $ (623 ) $ (15 ) $ — $ (638 ) Cumulative impact from adoption of new revenue accounting standard 3 — — 3 Other comprehensive income (loss) before reclassifications 1 (22 ) (3 ) (24 ) Amounts reclassified from accumulated other comprehensive income (loss) into earnings — 10 — 10 Balance at March 31, 2018 $ (619 ) $ (27 ) $ (3 ) $ (649 ) For the Three Months Ended March 31, 2017 Foreign currency translation adjustments Unrealized gain (loss) on forward contracts Unrealized gain (loss) on available-for-sale securities Total Balance at December 31, 2016 $ (659 ) $ 29 $ 1 $ (629 ) Other comprehensive income (loss) before reclassifications 3 (9 ) — (6 ) Amounts reclassified from accumulated other comprehensive income (loss) into earnings 16 (6 ) — 10 Balance at March 31, 2017 $ (640 ) $ 14 $ 1 $ (625 )

Operating Segments and Geogra34

Operating Segments and Geographic Region (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of operating segments and reconciliations of total net revenues and total segment operating income to consolidated net revenues from external customers and consolidated income before income tax expense	Information on the reportable segments net revenues and segment operating income are presented below (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 312 $ 479 $ 534 $ 1,325 Intersegment net revenues (1) — 1 — 1 Segment net revenues $ 312 $ 480 $ 534 $ 1,326 Segment operating income $ 92 $ 122 $ 191 $ 405 Three Months Ended March 31, 2017 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 215 $ 443 $ 474 $ 1,132 Intersegment net revenues (1) — — — — Segment net revenues $ 215 $ 443 $ 474 $ 1,132 Segment operating income $ 24 $ 159 $ 166 $ 349 (1) Intersegment revenues reflect licensing and service fees charged between segments. Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions): Three Months Ended March 31, 2018 2017 Reconciliation to consolidated net revenues: Segment net revenues $ 1,326 $ 1,132 Revenues from other segments (1) 59 64 Net effect from recognition (deferral) of deferred net revenues 581 530 Elimination of intersegment revenues (2) (1 ) — Consolidated net revenues $ 1,965 $ 1,726 Reconciliation to consolidated income before income tax expense: Segment operating income $ 405 $ 349 Operating (loss) income from other segments (1) (11 ) 2 Net effect from recognition (deferral) of deferred net revenues and related cost of revenues 373 396 Share-based compensation expense (53 ) (33 ) Amortization of intangible assets (119 ) (190 ) Fees and other expenses related to the acquisition of King (3) — (4 ) Restructuring costs (4) — (11 ) Other non-cash charges (5) — (16 ) Consolidated operating income 595 493 Interest and other expense (income), net 28 40 Consolidated income before income tax expense $ 567 $ 453 (1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Also includes unallocated corporate income and expenses. (2) Intersegment revenues reflect licensing and service fees charged between segments. (3) Reflects fees and other expenses, such as legal, banking, and professional services fees, related to the acquisition of King and associated integration activities, inclusive of related debt financings. (4) Reflects restructuring charges, primarily severance costs. (5) Reflects a non-cash accounting charge to reclassify certain cumulative translation gains (losses) into earnings due to the substantial liquidation of certain of our foreign entities.
Schedule of net revenues by distribution channels	Due to requirements from our adoption of the new revenue accounting standard discussed in Note 2, net revenues by distribution channel for the three months ended March 31, 2018, include a reconciliation to our segment revenues as disclosed for each of our reportable segments above. Net revenues by distribution channel were as follows (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 476 $ 455 $ 533 $ — $ (1 ) $ 1,463 Retail channels 396 13 — — — 409 Other (2) — 40 — 53 — 93 Total consolidated net revenues $ 872 $ 508 $ 533 $ 53 $ (1 ) $ 1,965 Change in deferred revenues: Digital online channels (1) $ (232 ) $ (27 ) $ 1 $ — $ — $ (258 ) Retail channels (328 ) (2 ) — — — (330 ) Other (2) — 1 — 6 — 7 Total change in deferred revenues $ (560 ) $ (28 ) $ 1 $ 6 $ — $ (581 ) Segment net revenues: Digital online channels (1) $ 244 $ 428 $ 534 $ — $ (1 ) $ 1,205 Retail channels 68 11 — — — 79 Other (2) — 41 — 59 — 100 Total segment net revenues $ 312 $ 480 $ 534 $ 59 $ (1 ) $ 1,384 Net revenues by distribution channel for the three months ended March 31, 2017, were as follows (amounts in millions): Three Months Ended March 31, 2017 Net revenues by distribution channel: Digital online channels (1) $ 1,386 Retail channels 270 Other (2) 70 Total consolidated net revenues $ 1,726 (1) Include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties. (2) Include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments.
Schedule of net revenues by geographic region	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 March 31, 2018, were as follows (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 510 $ 234 $ 322 $ — $ (1 ) $ 1,065 EMEA (1) 305 169 160 53 — 687 Asia Pacific 57 105 51 — — 213 Total consolidated net revenues $ 872 $ 508 $ 533 $ 53 $ (1 ) $ 1,965 Change in deferred revenues: Americas $ (328 ) $ (6 ) $ 1 $ — $ — $ (333 ) EMEA (1) (198 ) (8 ) — 6 — (200 ) Asia Pacific (34 ) (14 ) — — — (48 ) Total change in deferred revenues $ (560 ) $ (28 ) $ 1 $ 6 $ — $ (581 ) Segment net revenues: Americas $ 182 $ 228 $ 323 $ — $ (1 ) $ 732 EMEA (1) 107 161 160 59 — 487 Asia Pacific 23 91 51 — — 165 Total segment net revenues $ 312 $ 480 $ 534 $ 59 $ (1 ) $ 1,384 Net revenues by geographic region for the three months ended March 31, 2017, were as follows (amounts in millions): Three Months Ended March 31, 2017 Net revenues by geographic region: Americas $ 929 EMEA (1) 554 Asia Pacific 243 Total consolidated net revenues $ 1,726 (1) Consists of the Europe, Middle East, and Africa geographic regions. (2) Intersegment revenues reflect licensing and service fees charged between segments.
Schedule of net revenues by platform	Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended March 31, 2018, were as follows (amounts in millions): Three Months Ended March 31, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 769 $ 48 $ — $ — $ — $ 817 PC 99 378 43 — (1 ) 519 Mobile and ancillary (1) 4 42 490 — — 536 Other (2) — 40 — 53 — 93 Total consolidated net revenues $ 872 $ 508 $ 533 $ 53 $ (1 ) $ 1,965 Change in deferred revenues: Console $ (491 ) $ (19 ) $ — $ — $ — $ (510 ) PC (69 ) — — — — (69 ) Mobile and ancillary (1) — (10 ) 1 — — (9 ) Other (2) — 1 — 6 — 7 Total change in deferred revenues $ (560 ) $ (28 ) $ 1 $ 6 $ — $ (581 ) Segment net revenues: Console $ 278 $ 29 $ — $ — $ — $ 307 PC 30 378 43 — (1 ) 450 Mobile and ancillary (1) 4 32 491 — — 527 Other (2) — 41 — 59 — 100 Total segment net revenues $ 312 $ 480 $ 534 $ 59 $ (1 ) $ 1,384 Net revenues by platform for the three months ended March 31, 2017, were as follows (amounts in millions): Three Months Ended March 31, 2017 Net revenues by platform: Console $ 615 PC 566 Mobile and ancillary (1) 475 Other (2) 70 Total consolidated net revenues $ 1,726 (1) Net revenues from “Mobile and ancillary” include revenues from mobile devices, as well as non-platform specific game-related revenues, such as standalone sales of toys and accessories from our Skylanders ® franchise and other physical merchandise and accessories. (2) Net revenues from “Other” include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League. (3) Intersegment revenues reflect licensing and service fees charged between segments.
Long-lived assets by geographic region	Long-lived assets by geographic region were as follows (amounts in millions): At March 31, 2018 At December 31, 2017 Long-lived assets (1) by geographic region: Americas $ 192 $ 197 EMEA 73 75 Asia Pacific 21 22 Total long-lived assets by geographic region $ 286 $ 294 (1) The only long-lived assets that we classify by region are our long-term tangible fixed assets, which consist of property, plant, and equipment assets; all other long-term assets are not allocated by location.

Computation of Basic_Diluted 35

Computation of Basic/Diluted Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of computation of earnings per share	The following table sets forth the computation of basic and diluted earnings per common share (amounts in millions, except per share data): For the Three Months Ended March 31, 2018 2017 Numerator: Consolidated net income $ 500 $ 426 Denominator: Denominator for basic earnings per common share—weighted-average common shares outstanding 759 749 Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards 11 12 Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding 770 761 Basic earnings per common share $ 0.66 $ 0.57 Diluted earnings per common share $ 0.65 $ 0.56

Description of Business and B36

Description of Business and Basis of Consolidation and Presentation (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Supplemental Cash Flow Elements [Abstract]
Dividends payable	$ 259		$ 226
Accrued withholding tax payments related to net share settlements on restricted stock units	26		17
Restricted cash	$ 6	$ 7	$ 13	$ 17

Summary of Significant Accoun37

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2018
Product Information [Line Items]
Estimated service period (less than)	12 months
Minimum
Product Information [Line Items]
Payment terms (in days)	30 days
Maximum
Product Information [Line Items]
Payment terms (in days)	90 days

Recently Issued Accounting Pr38

Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2016	Jan. 01, 2018
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative impact from adoption of new revenue accounting standard (Note 3)			$ 91
Sale price recognized as revenue upon delivery (percent)	20.00%
Accounting Standards Update 2014-09 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative impact from adoption of new revenue accounting standard (Note 3)			$ 88
Accounting Standards Update 2016-15 | Pro Forma | New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Movement in restricted cash related to acquisition		$ 3,600

Recently Issued Accounting Pr39

Recently Issued Accounting Pronouncements - Modified Retrospective Method - Adjusted Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivable, net	$ 431	$ 921	$ 918
Software development	298	347	367
Other current assets	422	441	476
Deferred income taxes, net	400	427	459
Other assets	458	444	440
Liabilities and Shareholders’ Equity
Deferred revenues	1,204	1,735	1,929
Accrued expenses and other liabilities	1,551		1,411
Other liabilities	1,243	1,155	1,132
Shareholders' equity	9,819	9,553	9,462
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Accounts receivable, net			918
Software development			367
Other current assets			476
Deferred income taxes, net			459
Other assets			440
Liabilities and Shareholders’ Equity
Deferred revenues			1,929
Other liabilities			1,132
Shareholders' equity			$ 9,462
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09
Assets
Accounts receivable, net	430
Software development	310
Other current assets	444
Deferred income taxes, net	423
Other assets	455
Liabilities and Shareholders’ Equity
Deferred revenues	1,320
Accrued expenses and other liabilities	1,553
Other liabilities	1,229
Shareholders' equity	9,768
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Assets
Accounts receivable, net	1	3
Software development	(12)	(20)
Other current assets	(22)	(35)
Deferred income taxes, net	(23)	(32)
Other assets	3	4
Liabilities and Shareholders’ Equity
Deferred revenues	(116)	(194)
Accrued expenses and other liabilities	(2)
Other liabilities	14	23
Shareholders' equity	$ 51	$ 91

Recently Issued Accounting Pr40

Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017
Net revenues
Product sales	$ 720	$ 509
Subscription, licensing, and other revenues	1,245	1,217
Total net revenues (Note 2)	1,965	1,726
Cost of revenues—product sales:
Product costs	162	143
Software royalties, amortization, and intellectual property licenses	146	88
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs	270	232
Software royalties, amortization, and intellectual property licenses	84	122
Product development	259	225
Sales and marketing	251	246
General and administrative	198	177
Total costs and expenses	1,370	1,233
Operating income	595	493
Interest and other expense (income), net	28	40
Income before income tax expense	567	453
Income tax expense	67	27
Net income	$ 500	$ 426
Earnings per common share
Basic (in dollars per share)	$ 0.66	$ 0.57
Diluted (in dollars per share)	$ 0.65	$ 0.56
Assets
Accounts receivable, net	$ 431		$ 921	$ 918
Software development	298		347	367
Other current assets	422		441	476
Deferred income taxes, net	400		427	459
Other assets	458		444	440
Liabilities and Shareholders’ Equity
Deferred revenues	1,204		1,735	1,929
Accrued expenses and other liabilities	1,551			1,411
Other liabilities	1,243		1,155	1,132
Shareholders' equity	9,819		9,553	9,462
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Accounts receivable, net				918
Software development				367
Other current assets				476
Deferred income taxes, net				459
Other assets				440
Liabilities and Shareholders’ Equity
Deferred revenues				1,929
Other liabilities				1,132
Shareholders' equity				$ 9,462
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606
Net revenues
Product sales	802
Subscription, licensing, and other revenues	1,238
Total net revenues (Note 2)	2,040
Cost of revenues—product sales:
Product costs	176
Software royalties, amortization, and intellectual property licenses	153
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs	270
Software royalties, amortization, and intellectual property licenses	84
Product development	259
Sales and marketing	251
General and administrative	198
Total costs and expenses	1,391
Operating income	649
Interest and other expense (income), net	28
Income before income tax expense	621
Income tax expense	79
Net income	$ 542
Earnings per common share
Basic (in dollars per share)	$ 0.71
Diluted (in dollars per share)	$ 0.70
Assets
Accounts receivable, net	$ 430
Software development	310
Other current assets	444
Deferred income taxes, net	423
Other assets	455
Liabilities and Shareholders’ Equity
Deferred revenues	1,320
Accrued expenses and other liabilities	1,553
Other liabilities	1,229
Shareholders' equity	9,768
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Net revenues
Product sales	(82)
Subscription, licensing, and other revenues	7
Total net revenues (Note 2)	(75)
Cost of revenues—product sales:
Product costs	(14)
Software royalties, amortization, and intellectual property licenses	(7)
Cost of revenues—subscription, licensing, and other revenues:
Game operations and distribution costs	0
Software royalties, amortization, and intellectual property licenses	0
Product development	0
Sales and marketing	0
General and administrative	0
Total costs and expenses	(21)
Operating income	(54)
Interest and other expense (income), net	0
Income before income tax expense	(54)
Income tax expense	(12)
Net income	$ (42)
Earnings per common share
Basic (in dollars per share)	$ (0.05)
Diluted (in dollars per share)	$ (0.05)
Assets
Accounts receivable, net	$ 1		3
Software development	(12)		(20)
Other current assets	(22)		(35)
Deferred income taxes, net	(23)		(32)
Other assets	3		4
Liabilities and Shareholders’ Equity
Deferred revenues	(116)		(194)
Accrued expenses and other liabilities	(2)
Other liabilities	14		23
Shareholders' equity	$ 51		$ 91

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 41	$ 45
Purchased parts and components	1	1
Inventories, net	42	46
Inventory reserves	$ 32	$ 36

Software Development and Inte42

Software Development and Intellectual Property Licenses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Software development and intellectual property licenses:
Internally-developed software costs	$ 258		$ 270
Payments made to third-party software developers	132		183
Total software development costs	390		$ 453
Amortization:
Amortization of capitalized software development costs and intellectual property licenses	$ 152	$ 93

Intangible Assets, Net (Details

Intangible Assets, Net (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	$ 2,445		$ 2,445
Accumulated amortization, definite-lived intangible assets	(1,891)		(1,772)
Net carrying amount, definite-lived intangible assets	554		673
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	433		433
Total intangible assets, net	987		1,106
Amortization Expense Disclosure
Amortization expense	119	$ 190
Activision trademark
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	386		386
Acquired trade names
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	47		47
Internally-developed franchises
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	1,154		1,154
Accumulated amortization, definite-lived intangible assets	(907)		(869)
Net carrying amount, definite-lived intangible assets	$ 247		$ 285
Internally-developed franchises | Minimum
Finite-Lived Intangible Assets
Estimated useful life	3 years		3 years
Internally-developed franchises | Maximum
Finite-Lived Intangible Assets
Estimated useful life	11 years		11 years
Developed software
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	$ 601		$ 601
Accumulated amortization, definite-lived intangible assets	(337)		(301)
Net carrying amount, definite-lived intangible assets	$ 264		$ 300
Developed software | Minimum
Finite-Lived Intangible Assets
Estimated useful life	2 years		2 years
Developed software | Maximum
Finite-Lived Intangible Assets
Estimated useful life	5 years		5 years
Customer base
Finite-Lived Intangible Assets
Estimated useful life	2 years		2 years
Gross carrying amount, definite-lived intangible assets	$ 617		$ 617
Accumulated amortization, definite-lived intangible assets	(617)		(573)
Net carrying amount, definite-lived intangible assets	0		44
Acquired trade names
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	54		54
Accumulated amortization, definite-lived intangible assets	(17)		(16)
Net carrying amount, definite-lived intangible assets	$ 37		$ 38
Acquired trade names | Minimum
Finite-Lived Intangible Assets
Estimated useful life	7 years		7 years
Acquired trade names | Maximum
Finite-Lived Intangible Assets
Estimated useful life	10 years		10 years
Other
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	$ 19		$ 19
Accumulated amortization, definite-lived intangible assets	(13)		(13)
Net carrying amount, definite-lived intangible assets	$ 6		$ 6
Other | Minimum
Finite-Lived Intangible Assets
Estimated useful life	1 year		1 year
Other | Maximum
Finite-Lived Intangible Assets
Estimated useful life	15 years		15 years

Intangible Assets, Net (Detai44

Intangible Assets, Net (Details 2) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Definite-lived intangible assets, future amortization expense disclosure
2018 (remaining nine months)	$ 252
2,019	210
2,020	69
2,021	12
2,022	7
Thereafter	4
Net carrying amount, definite-lived intangible assets	$ 554	$ 673

Goodwill (Details)

Goodwill (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 9,763
Other	1
Ending balance	9,764
Activision
Goodwill [Roll Forward]
Beginning balance	6,898
Other	1
Ending balance	6,899
Blizzard
Goodwill [Roll Forward]
Beginning balance	190
Other	0
Ending balance	190
King
Goodwill [Roll Forward]
Beginning balance	2,675
Other	0
Ending balance	$ 2,675

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	$ 5,061	$ 4,499
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	5,058	4,499
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	3	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	4,934	4,405
Cash and cash equivalents | Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	49	39
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	4,934	4,405
Cash and cash equivalents | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	49	39
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | Foreign government treasury bills
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets | U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	75	55
Other current assets | Foreign currency forward contracts | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	3
Other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	75	55
Other current assets | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0
Other current assets | Significant Other Observable Inputs (Level 2) | U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	3
Other current assets | Significant Unobservable Inputs (Level 3) | U.S. treasuries and government agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0	0
Other current assets | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	0
Accrued expenses and other liabilities | Foreign currency forward contracts | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	(22)	(5)
Accrued expenses and other liabilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	0	0
Accrued expenses and other liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	(22)	(5)
Accrued expenses and other liabilities | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	$ 0	$ 0

Fair Value Measurements - Forei

Fair Value Measurements - Foreign Currency Forward Contracts (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	$ (1,965)	$ (1,726)
Foreign currency forward contracts | Reclassification out of Accumulated Other Comprehensive Income
Derivatives, Fair Value [Line Items]
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	10	$ (6)
Foreign currency forward contracts | Designated as Hedging Instrument | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	610		$ 521
Derivative, Fair Value, Net	$ (22)		(5)
Contract maturity (or less)	12 months
Deferred cash flow hedge gain (loss) to be reclassified within twelve months	$ (5)
Foreign currency forward contracts | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount of foreign currency derivatives	137		0
Derivative, Fair Value, Net	$ 3		$ 0

Fair Value Measurements Fair Va

Fair Value Measurements Fair Value Measurements - Non-Recurring Basis (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Nonrecurring
Fair Value Measurements on a Non-Recurring Basis [Line Items]
Asset Impairment Charges	$ 0	$ 0

Deferred Revenue (Details)

Deferred Revenue (Details) - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2018	Jan. 01, 2018
Revenue Recognition and Deferred Revenue [Abstract]
Deferred revenue	$ 1.2	$ 1.8
Revenue recognized included in beginning deferred revenue	1.1
Contracted not recognized revenue	$ 1.7

Debt - Credit Facilities (Detai

Debt - Credit Facilities (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Gross Carrying Amount	$ 4,440,000,000	$ 4,440,000,000
Revolver
Line of Credit Facility [Line Items]
Maximum borrowing capacity		250,000,000
Long-term line of credit	0
2017 TLA | Line of Credit
Line of Credit Facility [Line Items]
Gross Carrying Amount	$ 990,000,000	$ 990,000,000
Interest rate on credit facility (as a percent)	3.00%

Debt - Unsecured Senior Notes,

Debt - Unsecured Senior Notes, Interest Expense and Financing Costs, and Additional Information (Details) - USD ($) $ in Millions	Feb. 01, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Gross Carrying Amount		$ 4,440		$ 4,440
Interest expense		40	$ 35
Amortization of financing costs and discounts		2	$ 7
Total Unsecured Senior Notes
Debt Instrument [Line Items]
Interest payable		16		28
Unsecured Debt | 2023 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		$ 750		$ 750
Interest rate		6.125%		6.125%
Unsecured Debt | 2023 Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes		$ 785		$ 795
Unsecured Debt | 2021 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		$ 650		$ 650
Interest rate		2.30%		2.30%
Unsecured Debt | 2026 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		$ 850		$ 850
Interest rate		3.40%		3.40%
Unsecured Debt | 2022 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		$ 400		$ 400
Interest rate		2.60%		2.60%
Unsecured Debt | 2027 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		$ 400		$ 400
Interest rate		3.40%		3.40%
Unsecured Debt | 2047 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		$ 400		$ 400
Interest rate		4.50%		4.50%
Unsecured Debt | 2047 Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes				$ 421
Line of Credit
Debt Instrument [Line Items]
Authorized repayments of debt	$ 1,800

Debt - Summary of Debt (Details

Debt - Summary of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Gross Carrying Amount	$ 4,440	$ 4,440
Unamortized Discount and Deferred Financing Costs	(48)	(50)
Net Carrying Amount	4,392	4,390
Line of Credit | 2017 TLA
Debt Instrument [Line Items]
Gross Carrying Amount	990	990
Unamortized Discount and Deferred Financing Costs	(7)	(8)
Net Carrying Amount	983	982
Unsecured Debt | 2021 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	650	650
Unamortized Discount and Deferred Financing Costs	(4)	(4)
Net Carrying Amount	646	646
Unsecured Debt | 2022 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(4)	(4)
Net Carrying Amount	396	396
Unsecured Debt | 2023 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	750	750
Unamortized Discount and Deferred Financing Costs	(9)	(9)
Net Carrying Amount	741	741
Unsecured Debt | 2026 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	850	850
Unamortized Discount and Deferred Financing Costs	(9)	(9)
Net Carrying Amount	841	841
Unsecured Debt | 2027 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(5)	(6)
Net Carrying Amount	395	394
Unsecured Debt | 2047 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	400	400
Unamortized Discount and Deferred Financing Costs	(10)	(10)
Net Carrying Amount	$ 390	$ 390

Debt - Schedule of Maturities (

Debt - Schedule of Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Maturities of Long-term Debt [Abstract]
2018 (remaining nine months)	$ 0
2,019	0
2,020	0
2,021	1,640
2,022	400
Thereafter	2,400
Gross Carrying Amount	$ 4,440	$ 4,440

Accumulated Other Comprehensi54

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 9,462
Ending balance	9,819
Foreign currency translation adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(623)	$ (659)
Cumulative impact from adoption of new revenue accounting standard			$ 3
Other comprehensive income (loss) before reclassifications	1	3
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	16
Ending balance	(619)	(640)
Unrealized gain (loss) on forward contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(15)	29
Cumulative impact from adoption of new revenue accounting standard			0
Other comprehensive income (loss) before reclassifications	(22)	(9)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	10	(6)
Ending balance	(27)	14
Unrealized gain (loss) on available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	0	1
Cumulative impact from adoption of new revenue accounting standard			0
Other comprehensive income (loss) before reclassifications	(3)	0
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	0
Ending balance	(3)	1
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(638)	(629)
Cumulative impact from adoption of new revenue accounting standard			$ 3
Other comprehensive income (loss) before reclassifications	(24)	(6)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	10	10
Ending balance	$ (649)	$ (625)

Operating Segments and Geogra55

Operating Segments and Geographic Region (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Segment Reporting Information [Line Items]
Net revenues	$ 1,965	$ 1,726
Net effect from recognition (deferral) of deferred net revenues	(581)
Segment revenues	1,384
Operating income	595	493
Amortization of intangible assets	(119)	(190)
Interest and other expense (income), net	28	40
Income before income tax expense	567	453
Long-lived assets	286		$ 294
Digital online channels
Segment Reporting Information [Line Items]
Net revenues	1,463	1,386
Net effect from recognition (deferral) of deferred net revenues	(258)
Segment revenues	1,205
Retail channels
Segment Reporting Information [Line Items]
Net revenues	409	270
Net effect from recognition (deferral) of deferred net revenues	(330)
Segment revenues	79
Other
Segment Reporting Information [Line Items]
Net revenues	93	70
Net effect from recognition (deferral) of deferred net revenues	7
Segment revenues	100
Console
Segment Reporting Information [Line Items]
Net revenues	817	615
Net effect from recognition (deferral) of deferred net revenues	(510)
Segment revenues	307
PC
Segment Reporting Information [Line Items]
Net revenues	519	566
Net effect from recognition (deferral) of deferred net revenues	(69)
Segment revenues	450
Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	536	475
Net effect from recognition (deferral) of deferred net revenues	(9)
Segment revenues	527
Other
Segment Reporting Information [Line Items]
Net revenues	93	70
Net effect from recognition (deferral) of deferred net revenues	7
Segment revenues	100
Americas
Segment Reporting Information [Line Items]
Net revenues	1,065	$ 929
Net effect from recognition (deferral) of deferred net revenues	(333)
Segment revenues	732
Long-lived assets	$ 192		197
US | Revenues | Geographic Concentration Risk
Segment Reporting Information [Line Items]
Revenues as a percentage of consolidated net revenues	47.00%	47.00%
EMEA
Segment Reporting Information [Line Items]
Net revenues	$ 687	$ 554
Net effect from recognition (deferral) of deferred net revenues	(200)
Segment revenues	487
Long-lived assets	$ 73		75
UK | Revenues | Geographic Concentration Risk
Segment Reporting Information [Line Items]
Revenues as a percentage of consolidated net revenues	11.00%	10.00%
Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	$ 213	$ 243
Net effect from recognition (deferral) of deferred net revenues	(48)
Segment revenues	165
Long-lived assets	21		$ 22
Reportable segments
Segment Reporting Information [Line Items]
Segment revenues	1,326	1,132
Operating income	405	349
Reportable segments | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	1,325	1,132
Reportable segments | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	1	0
Reportable segments | Activision
Segment Reporting Information [Line Items]
Net revenues	872
Net effect from recognition (deferral) of deferred net revenues	(560)
Segment revenues	312	215
Operating income	92	24
Reportable segments | Activision | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	312	215
Reportable segments | Activision | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	0	0
Reportable segments | Activision | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	476
Net effect from recognition (deferral) of deferred net revenues	(232)
Segment revenues	244
Reportable segments | Activision | Retail channels
Segment Reporting Information [Line Items]
Net revenues	396
Net effect from recognition (deferral) of deferred net revenues	(328)
Segment revenues	68
Reportable segments | Activision | Other
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reportable segments | Activision | Console
Segment Reporting Information [Line Items]
Net revenues	769
Net effect from recognition (deferral) of deferred net revenues	(491)
Segment revenues	278
Reportable segments | Activision | PC
Segment Reporting Information [Line Items]
Net revenues	99
Net effect from recognition (deferral) of deferred net revenues	(69)
Segment revenues	30
Reportable segments | Activision | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	4
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	4
Reportable segments | Activision | Other
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reportable segments | Activision | Americas
Segment Reporting Information [Line Items]
Net revenues	510
Net effect from recognition (deferral) of deferred net revenues	(328)
Segment revenues	182
Reportable segments | Activision | EMEA
Segment Reporting Information [Line Items]
Net revenues	305
Net effect from recognition (deferral) of deferred net revenues	(198)
Segment revenues	107
Reportable segments | Activision | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	57
Net effect from recognition (deferral) of deferred net revenues	(34)
Segment revenues	23
Reportable segments | Blizzard
Segment Reporting Information [Line Items]
Net revenues	508
Net effect from recognition (deferral) of deferred net revenues	(28)
Segment revenues	480	443
Operating income	122	159
Reportable segments | Blizzard | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	479	443
Reportable segments | Blizzard | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	1	0
Reportable segments | Blizzard | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	455
Net effect from recognition (deferral) of deferred net revenues	(27)
Segment revenues	428
Reportable segments | Blizzard | Retail channels
Segment Reporting Information [Line Items]
Net revenues	13
Net effect from recognition (deferral) of deferred net revenues	(2)
Segment revenues	11
Reportable segments | Blizzard | Other
Segment Reporting Information [Line Items]
Net revenues	40
Net effect from recognition (deferral) of deferred net revenues	1
Segment revenues	41
Reportable segments | Blizzard | Console
Segment Reporting Information [Line Items]
Net revenues	48
Net effect from recognition (deferral) of deferred net revenues	(19)
Segment revenues	29
Reportable segments | Blizzard | PC
Segment Reporting Information [Line Items]
Net revenues	378
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	378
Reportable segments | Blizzard | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	42
Net effect from recognition (deferral) of deferred net revenues	(10)
Segment revenues	32
Reportable segments | Blizzard | Other
Segment Reporting Information [Line Items]
Net revenues	40
Net effect from recognition (deferral) of deferred net revenues	1
Segment revenues	41
Reportable segments | Blizzard | Americas
Segment Reporting Information [Line Items]
Net revenues	234
Net effect from recognition (deferral) of deferred net revenues	(6)
Segment revenues	228
Reportable segments | Blizzard | EMEA
Segment Reporting Information [Line Items]
Net revenues	169
Net effect from recognition (deferral) of deferred net revenues	(8)
Segment revenues	161
Reportable segments | Blizzard | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	105
Net effect from recognition (deferral) of deferred net revenues	(14)
Segment revenues	91
Reportable segments | King
Segment Reporting Information [Line Items]
Net revenues	533
Net effect from recognition (deferral) of deferred net revenues	1
Segment revenues	534	474
Operating income	191	166
Reportable segments | King | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	534	474
Reportable segments | King | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	0	0
Reportable segments | King | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	533
Net effect from recognition (deferral) of deferred net revenues	1
Segment revenues	534
Reportable segments | King | Retail channels
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reportable segments | King | Other
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reportable segments | King | Console
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reportable segments | King | PC
Segment Reporting Information [Line Items]
Net revenues	43
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	43
Reportable segments | King | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	490
Net effect from recognition (deferral) of deferred net revenues	1
Segment revenues	491
Reportable segments | King | Other
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reportable segments | King | Americas
Segment Reporting Information [Line Items]
Net revenues	322
Net effect from recognition (deferral) of deferred net revenues	1
Segment revenues	323
Reportable segments | King | EMEA
Segment Reporting Information [Line Items]
Net revenues	160
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	160
Reportable segments | King | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	51
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	51
Non-reportable segments
Segment Reporting Information [Line Items]
Net revenues	53
Net effect from recognition (deferral) of deferred net revenues	6
Segment revenues	59	64
Non-reportable segments | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Non-reportable segments | Retail channels
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Non-reportable segments | Other
Segment Reporting Information [Line Items]
Net revenues	53
Net effect from recognition (deferral) of deferred net revenues	6
Segment revenues	59
Non-reportable segments | Console
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Non-reportable segments | PC
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Non-reportable segments | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Non-reportable segments | Other
Segment Reporting Information [Line Items]
Net revenues	53
Net effect from recognition (deferral) of deferred net revenues	6
Segment revenues	59
Non-reportable segments | Americas
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Non-reportable segments | EMEA
Segment Reporting Information [Line Items]
Net revenues	53
Net effect from recognition (deferral) of deferred net revenues	6
Segment revenues	59
Non-reportable segments | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Net revenues	(1)	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	(1)
Elimination of intersegment revenues | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	(1)
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	(1)
Elimination of intersegment revenues | Retail channels
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues | Other
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues | Console
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues | PC
Segment Reporting Information [Line Items]
Net revenues	(1)
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	(1)
Elimination of intersegment revenues | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues | Other
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues | Americas
Segment Reporting Information [Line Items]
Net revenues	(1)
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	(1)
Elimination of intersegment revenues | EMEA
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Elimination of intersegment revenues | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	0
Net effect from recognition (deferral) of deferred net revenues	0
Segment revenues	0
Reconciling items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues	581	530
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	373	396
Share-based compensation expense	(53)	(33)
Amortization of intangible assets	(119)	(190)
Fees and other expenses related to the acquisition of King	0	(4)
Restructuring costs	0	(11)
Other non-cash charges	0	(16)
Reconciling items | Other segments
Segment Reporting Information [Line Items]
Operating income	$ (11)	$ 2

Income Taxes (Details)

Income Taxes (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 28, 2017USD ($)	Dec. 28, 2017EUR (€)
Income Tax [Line Items]
Income tax expense	$ 67	$ 27
Effective tax rate (in percent)	12.00%	6.00%
Statutory income tax rate (in percent)	21.00%
Acquisition of King
Income Tax [Line Items]
Uncertain tax positions assumed	$ 74
French Tax Authority
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded			$ 680	€ 571

Computation of Basic_Diluted 57

Computation of Basic/Diluted Earnings Per Common Share - Computation EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Consolidated net income	$ 500	$ 426
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)	759	749
Employee stock options and awards (in shares)	11	12
Denominator for diluted earnings per common share - weighted-average common shares outstanding plus dilutive common shares under treasury stock method (in shares)	770	761
Basic earnings (loss) per common share (in dollars per share)	$ 0.66	$ 0.57
Diluted earnings (loss) per common share (in dollars per share)	$ 0.65	$ 0.56

Computation of Basic_Diluted 58

Computation of Basic/Diluted Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Performance shares not included in dilutive shares (performance measures not yet met)	6	9
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	2	5

Capital Transactions - Repurcha

Capital Transactions - Repurchase Program (Details) - Share Repurchase Program 2017 - USD ($)	14 Months Ended
	Mar. 31, 2018	Feb. 02, 2017
Share Repurchase Program [Line Items]
Share repurchase program, dollar amount authorized		$ 1,000,000,000
Shares of common stock repurchased	0
Cost of common stock repurchased under the stock repurchase program	$ 0

Capital Transactions - Dividend

Capital Transactions - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 01, 2018	May 26, 2017	May 10, 2017	Feb. 02, 2017	Mar. 31, 2018	Mar. 31, 2017
Dividends
Dividends per common share (in dollars per share)	$ 0.34			$ 0.30	$ 0.34	$ 0.30
Dividends payable					$ 259	$ 226
Cash dividend payment			$ 226
Dividend equivalent payments		$ 0

Uncategorized Items - atvi-2018

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