Activision Blizzard (ATVI) 10-Q 8 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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		763,050,718

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 3,308	$ 4,713
Accounts receivable, net of allowances of $119 and $279, at September 30, 2018 and December 31, 2017, respectively	641	918
Inventories, net	174	46
Software development	348	367
Other current assets	501	476
Total current assets	4,972	6,520
Software development	174	86
Property and equipment, net	281	294
Deferred income taxes, net	243	459
Other assets	454	440
Intangible assets, net	826	1,106
Goodwill	9,763	9,763
Total assets	16,713	18,668
Current liabilities:
Accounts payable	312	323
Deferred revenues	1,017	1,929
Accrued expenses and other liabilities	1,053	1,411
Total current liabilities	2,382	3,663
Long-term debt, net	2,670	4,390
Deferred income taxes, net	11	21
Other liabilities	991	1,132
Total liabilities	6,054	9,206
Commitments and contingencies (Note 16)
Shareholders’ equity:
Common stock, $0.000001 par value, 2,400,000,000 shares authorized, 1,191,665,508 and 1,186,181,666 shares issued at September 30, 2018 and December 31, 2017, respectively	0	0
Additional paid-in capital	10,928	10,747
Less: Treasury stock, at cost, 428,676,471 shares at September 30, 2018 and December 31, 2017	(5,563)	(5,563)
Retained earnings	5,907	4,916
Accumulated other comprehensive loss	(613)	(638)
Total shareholders’ equity	10,659	9,462
Total liabilities and shareholders’ equity	$ 16,713	$ 18,668

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Accounts receivable allowances	$ 119	$ 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)	1,191,665,508	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	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net revenues
Net revenues	$ 1,512	$ 1,618	$ 5,119	$ 4,974
Cost of revenues—product sales and subscription, licensing, and other revenues:
Product development	263	273	776	750
Sales and marketing	263	345	741	899
General and administrative	208	191	623	539
Total costs and expenses	1,247	1,361	3,825	3,886
Operating income	265	257	1,294	1,088
Interest and other expense (income), net	13	37	67	109
Loss on extinguishment of debt	40	0	40	12
Income before income tax expense (benefit)	212	220	1,187	967
Income tax expense (benefit)	(48)	32	25	109
Net income	$ 260	$ 188	$ 1,162	$ 858
Earnings per common share
Basic (in dollars per share)	$ 0.34	$ 0.25	$ 1.53	$ 1.14
Diluted (in dollars per share)	$ 0.34	$ 0.25	$ 1.51	$ 1.12
Weighted-average number of shares outstanding
Basic (in shares)	763	755	761	753
Diluted (in shares)	771	766	771	764
Product sales
Net revenues
Net revenues	$ 263	$ 384	$ 1,447	$ 1,373
Product costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	127	149	416	422
Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	20	37	214	200
Subscription, licensing, and other revenues
Net revenues
Net revenues	1,249	1,234	3,672	3,601
Game operations and distribution costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	257	249	777	717
Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	$ 109	$ 117	$ 278	$ 359

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 260	$ 188	$ 1,162	$ 858
Other comprehensive income (loss):
Foreign currency translation adjustment	3	9	(7)	36
Unrealized gains (losses) on forward contracts designated as hedges, net of tax	(11)	(8)	25	(45)
Unrealized gains (losses) on investments, net of tax	0	(3)	4	(4)
Total other comprehensive income (loss)	(8)	(2)	22	(13)
Comprehensive income	$ 252	$ 186	$ 1,184	$ 845

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income		$ 1,162	$ 858
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes		175	(138)
Depreciation and amortization		385	670
Amortization of capitalized software development costs and intellectual property licenses	[1]	238	202
Loss on extinguishment of debt (Note 10)		40	12
Amortization of debt discount and financing costs		5	10
Share-based compensation expense	[2]	164	118
Other		15	24
Changes in operating assets and liabilities:
Accounts receivable, net		290	(140)
Inventories		(127)	(50)
Software development and intellectual property licenses		(305)	(227)
Other assets		(15)	(70)
Deferred revenues		(710)	(320)
Accounts payable		(14)	78
Accrued expenses and other liabilities		(512)	28
Net cash provided by operating activities		791	1,055
Cash flows from investing activities:
Purchases of available-for-sale investments		(59)	(80)
Capital expenditures		(97)	(86)
Other investing activities		(4)	3
Net cash used in investing activities		(160)	(163)
Cash flows from financing activities:
Proceeds from issuance of common stock to employees		91	150
Tax payment related to net share settlements on restricted stock units		(85)	(44)
Dividends paid		(259)	(226)
Proceeds from debt issuances, net of discounts		0	3,741
Repayment of long-term debt		(1,740)	(4,251)
Premium payment for early redemption of note (Note 10)		(25)	0
Other financing activities		(2)	(10)
Net cash used in financing activities		(2,020)	(640)
Effect of foreign exchange rate changes on cash and cash equivalents		(15)	72
Net increase (decrease) in cash and cash equivalents and restricted cash		(1,404)	324
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		$ 3,316	$ 3,586
[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 STATEM_4

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	$ 858
Other comprehensive income (loss)	(13)
Ending balance at Sep. 30, 2017						(642)
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	1,162				1,162
Other comprehensive income (loss)	22					22
Issuance of common stock pursuant to employee stock options	93			93
Issuance of common stock pursuant to employee stock options (in shares)		5
Issuance of common stock pursuant to restricted stock units	0			0
Issuance of common stock pursuant to restricted stock units (in shares)		2
Restricted stock surrendered for employees’ tax liability	(86)			(86)
Restricted stock surrendered for employees' tax liability (in shares)		(1)
Share-based compensation expense related to employee stock options and restricted stock units	174			174
Dividends ($0.34 per common share)	(259)				(259)
Ending balance at Sep. 30, 2018	$ 10,659	$ 0	$ (5,563)	$ 10,928	$ 5,907	$ (613)
Balance (in shares) at Sep. 30, 2018		1,192	429

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	Feb. 01, 2018	Feb. 02, 2017	Sep. 30, 2018
Statement of Stockholders' Equity [Abstract]
Dividends per common share (in dollars per share)	$ 0.34	$ 0.30	$ 0.34

Description of Business and Bas

Description of Business and Basis of Consolidation and Presentation	9 Months Ended
	Sep. 30, 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 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 platforms. 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 Entertainment, Inc. (“Blizzard”) is a leading global developer and publisher of interactive software products and entertainment content, particularly for the PC platform. Blizzard primarily delivers content through retail and digital channels, including subscriptions, full-game, and in-game sales, as well as by licensing software to third-party or related-party companies that distribute Blizzard products. Blizzard also maintains a proprietary online gaming service, Blizzard Battle.net ® , which facilitates digital distribution of Blizzard content and selected Activision content, online social connectivity, and the creation of user-generated content. Blizzard also includes the activities of the Overwatch League TM , the first major global professional esports league with city-based teams, and our Major League Gaming (“MLG”) business, which is responsible for various esports events and serves as a multi-platform network for Activision Blizzard esports content. Blizzard’s key product franchises include: World of Warcraft ® , a subscription-based massive multi-player online role-playing game for the PC platform; StarCraft ® , a real-time strategy franchise for the PC platform; Diablo ® , an action role-playing franchise for the PC and console platforms; Hearthstone ® , an online collectible card franchise for the PC and mobile platforms; Heroes of the Storm ® , a free-to-play team brawler for the PC platform; and Overwatch ® , a team-based first-person shooter for the PC and console platforms. (iii) King Digital Entertainment 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 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 September 2018, released the third 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 For the nine months ended September 30, 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 $ 8 million , respectively. For the nine months ended September 30, 2017 , the beginning and ending cash and cash equivalents and restricted cash reported within our condensed consolidated statement of cash flows included restricted cash of $ 17 million and $ 10 million , respectively.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies During the nine months ended September 30, 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 Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to revenue recognition. The new standard replaces all current U.S. GAAP guidance on this topic, eliminating all industry-specific guidance and 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 (collectively, 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 has 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 products 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. Revenues associated with the sales of subscriptions are deferred until the subscription service is activated by the consumer and are then recognized ratably over the subscription period as the performance obligations are satisfied. Revenues attributable to the purchase of World of Warcraft software by our customers, including expansion packs, are classified as “Product sales,” whereas revenues attributable to subscriptions and other in-game revenues are classified as “Subscription, licensing, and other revenues.” 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 Corporation’s (“Microsoft”) Xbox Games Store, Sony Interactive Entertainment Inc.’s (“Sony”) PSN, the Apple App Store, and the Google Play Store, to determine whether revenues should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining 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 the Apple App Store and the Google Play Store, and we report revenues on a net basis (i.e., net of fees retained by the digital storefront) for sales arrangements via Microsoft’s Xbox Games Store and Sony’s PSN. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in our accounts receivable balance. In estimating the allowance for doubtful accounts, we analyze the age of current outstanding account balances, historical bad debts, customer concentrations, customer creditworthiness, current economic trends, and changes in our customers’ payment terms and their economic condition, as well as whether we can obtain sufficient credit insurance. Any significant changes in any of these criteria would affect management’s estimates in establishing our allowance for doubtful accounts. Deferred revenue is comprised primarily of unearned revenue related to the sale of products with online functionality or online hosted arrangements. We typically invoice, and collect payment for, these sales at the beginning of the contract period and recognize revenue ratably over the estimated service period. Deferred revenue also includes payments for: product sales pending delivery or activation; subscription revenues; licensing revenues with fixed minimum guarantees; and other revenues for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 9 for further information, including changes in deferred revenue during the period. Assets Recognized from Costs to Obtain a Contract with a Customer We apply the practical expedient to expense costs, as incurred, to obtain a contract with a customer when the amortization period would have been one year or less for certain similar contracts in which commissions are paid to internal personnel or third parties. We believe application of the practical expedient has a limited effect on the amount and timing of cost recognition. Total capitalized costs to obtain a contract were immaterial as of September 30, 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	9 Months Ended
	Sep. 30, 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 (1) identifying the satisfied and unsatisfied performance obligations, (2) determining the transaction price, and (3) 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 impacts 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. The amount of revenue recognized upon delivery of games to our customers is analyzed on a title-by-title basis and may change in the future. For example, we expect the entire sales price from our Call of Duty: Black Ops 4 release to be recognized ratably over an estimated service period, as the gameplay has an increased focus towards the online competitive and cooperative game modes with no single-player campaign mode. 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 impact 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 and nine months ended September 30, 2018 , and our condensed consolidated balance sheet as of September 30, 2018 as follows (in millions, except per share data): For the Three Months Ended September 30, 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 $ 263 $ 269 $ (6 ) Subscription, licensing, and other revenues 1,249 1,226 23 Total net revenues 1,512 1,495 17 Costs and expenses Cost of revenues—product sales: Product costs 127 126 1 Software royalties, amortization, and intellectual property licenses 20 24 (4 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 257 257 — Software royalties, amortization, and intellectual property licenses 109 109 — Product development 263 263 — Sales and marketing 263 263 — General and administrative 208 208 — Total costs and expenses 1,247 1,250 (3 ) Operating income 265 245 20 Interest and other expense (income), net 13 13 — Loss on extinguishment of debt 40 40 — Income before income tax expense (benefit) 212 192 20 Income tax expense (benefit) (48 ) (57 ) 9 Net income $ 260 $ 249 $ 11 Earnings per common share Basic $ 0.34 $ 0.33 $ 0.01 Diluted $ 0.34 $ 0.32 $ 0.02 For the Nine Months Ended September 30, 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 $ 1,447 $ 1,593 $ (146 ) Subscription, licensing, and other revenues 3,672 3,645 27 Total net revenues 5,119 5,238 (119 ) Costs and expenses Cost of revenues—product sales: Product costs 416 438 (22 ) Software royalties, amortization, and intellectual property licenses 214 232 (18 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 777 777 — Software royalties, amortization, and intellectual property licenses 278 278 — Product development 776 776 — Sales and marketing 741 740 1 General and administrative 623 623 — Total costs and expenses 3,825 3,864 (39 ) Operating income 1,294 1,374 (80 ) Interest and other expense (income), net 67 67 — Loss on extinguishment of debt 40 40 — Income before income tax expense 1,187 1,267 (80 ) Income tax expense 25 41 (16 ) Net income $ 1,162 $ 1,226 $ (64 ) Earnings per common share Basic $ 1.53 $ 1.61 $ (0.08 ) Diluted $ 1.51 $ 1.59 $ (0.08 ) At September 30, 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 $ 641 $ 637 $ 4 Software development 348 350 (2 ) Other current assets 501 519 (18 ) Deferred income taxes, net 243 262 (19 ) Other assets 454 469 (15 ) Liabilities and Shareholders’ Equity Deferred revenues $ 1,017 $ 1,077 $ (60 ) Accrued expenses and other liabilities 1,053 1,056 (3 ) Other liabilities 991 1,005 (14 ) Shareholders’ equity 10,659 10,632 27 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. 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 nine months ended September 30, 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. Classification will be based on criteria that are largely similar to those applied in current lease accounting. The lease liability will be equal to the present value of lease payments. The asset will be based on the lease 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. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. When the new standard was initially issued, it was required to be adopted using a modified retrospective transition that required application of the new guidance at the beginning of the earliest comparative period presented, subject to certain transition practical expedients available to provide relief in connection with the adoption. In July 2018, the FASB issued guidance to provide for an optional adoption method that allows companies to use the effective date of the new lease standard as the initial date of application on transition, and therefore does not require prior periods to be restated. Although we continue to evaluate the impact of this new accounting guidance on our financial statements, we expect it to have a significant impact on our consolidated balance sheet as a result of establishing lease liabilities and right-of-use assets for our operating leases. As part of our evaluation process, we have established a project implementation team that is evaluating our lease portfolio and system solutions, as well as identifying required process and policy changes, which include consideration of internal controls. We have made progress in gathering the necessary data elements for our lease population, have selected a system provider, and system configuration and implementation is underway. We do not plan to early adopt this new standard but do expect to elect and apply the available transition practical expedients, including the optional adoption method discussed above. Goodwill In January 2017, the FASB issued new guidance that eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, 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. Cloud Computing Arrangements In August 2018, the FASB issued new guidance related to a customer’s accounting for implementation costs incurred in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract. The new guidance requires customers to capitalize implementation costs for these arrangements by applying the same criteria that is utilized for existing internal-use software guidance. The capitalized costs are required to be amortized over the associated term of the arrangement, generally on a straight-line basis, with amortization of these costs presented in the same financial statement line item as other costs associated with the arrangement. The new standard is effective for fiscal years beginning after December 15, 2019, and can be applied retrospectively or prospectively. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements.

Inventories, Net

Inventories, Net	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories, Net	Inventories, Net Inventories, net, consist of the following (amounts in millions): At September 30, 2018 At December 31, 2017 Finished goods $ 161 $ 45 Purchased parts and components 13 1 Inventories, net $ 174 $ 46 At September 30, 2018 and December 31, 2017 , inventory reserves were $23 million and $36 million, respectively .

Software Development and Intell

Software Development and Intellectual Property Licenses	9 Months Ended
	Sep. 30, 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 September 30, 2018 At December 31, 2017 Internally-developed software costs $ 356 $ 270 Payments made to third-party software developers 166 183 Total software development costs $ 522 $ 453 As of both September 30, 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Amortization of capitalized software development costs and intellectual property licenses $ 33 $ 34 $ 242 $ 206

Intangible Assets, Net

Intangible Assets, Net	9 Months Ended
	Sep. 30, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets, Net	Intangible Assets, Net Intangible assets, net, consist of the following (amounts in millions): At September 30, 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 $ (987 ) $ 167 Developed software 2 - 5 years 601 (413 ) 188 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (21 ) 33 Other 1 - 15 years 19 (14 ) 5 Total definite-lived intangible assets $ 2,445 $ (2,052 ) $ 393 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 826 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 $84 million and $280 million for the three and nine months ended September 30, 2018, respectively. Amortization expense of our intangible assets was $188 million and $573 million for the three and nine months ended September 30, 2017, respectively . At September 30, 2018 , future amortization of definite-lived intangible assets is estimated as follows (amounts in millions): 2018 (remaining three months) $ 91 2019 210 2020 69 2021 11 2022 7 Thereafter 5 Total $ 393

Goodwill

Goodwill	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The carrying amount of goodwill by reportable segment at September 30, 2018 and December 31, 2017 was as follows (amounts in millions): Activision Blizzard King Total Goodwill $ 6,898 $ 190 $ 2,675 $ 9,763

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The FASB literature regarding fair value measurements for certain assets and liabilities establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or other inputs that are observable or can be corroborated by observable market data; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. Fair Value Measurements on a Recurring Basis The table below segregates all of our financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date (amounts in millions): Fair Value Measurements at September 30, 2018 Using As of September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 3,087 $ 3,087 $ — $ — Cash and cash equivalents Foreign government treasury bills 35 35 — — Cash and cash equivalents U.S. treasuries and government agency securities 116 116 — — Other current assets Foreign currency forward contracts designated as hedges 11 — 11 — Other current assets Total recurring fair value measurements $ 3,249 $ 3,238 $ 11 $ — Financial liabilities: Foreign currency forward contracts not designated as hedges $ (5 ) $ — $ (5 ) $ — Accrued expenses and other liabilities Foreign currency forward contracts designated as hedges $ (4 ) $ — $ (4 ) $ — 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 September 30, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell Euro $ 843 $ 7 $ 521 $ (5 ) At September 30, 2018 , our Cash Flow Hedges have remaining maturities of 15 months or less. Additionally, $3 million of net realized but unrecognized gains are recorded within “Accumulated other comprehensive income (loss)” at September 30, 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Statement of Operations Classification Cash Flow Hedges $ 3 $ (2 ) $ (11 ) $ 7 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 September 30, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy Euro, Sell USD $ 119 $ (5 ) $ — $ — For the three and nine months ended September 30, 2018 and 2017 , pre-tax net gains associated with these forward contracts were recorded in “General and administrative expenses” and were not material. Fair Value Measurements on a Non-Recurring Basis We measure the fair value of certain assets on a non-recurring basis, generally annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. For the three and nine months ended September 30, 2018 and 2017 , there were no impairment charges related to assets that are measured on a non-recurring basis.

Deferred Revenues

Deferred Revenues	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Deferred Revenues	Deferred revenues We record deferred revenues when cash payments are received or due in advance of the fulfillment of our associated performance obligations. The opening balance of deferred revenues as of January 1, 2018 and the ending balance as of September 30, 2018 were $1.8 billion and $1.0 billion , respectively, including our current and non-current balances. For the nine months ended September 30, 2018 , the additions to our deferred revenues balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenues balance were primarily due to the recognition of revenues upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the nine months ended September 30, 2018 , $1.6 billion of revenues were recognized that were included in the deferred revenues balance at the beginning of the period. As of September 30, 2018 , the aggregate amount of contracted revenues allocated to our unsatisfied performance obligations is $2.2 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	9 Months Ended
	Sep. 30, 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 pursuant to a credit agreement entered into on October 11, 2013 (as amended thereafter and from time to time, the “Credit Agreement”). On August 24, 2018, using available cash on hand, we made a voluntary prepayment of $990 million to fully repay and extinguish the 2017 TLA. As a result, we wrote-off unamortized discount and financing costs of $7 million , which are included in “Loss on extinguishment of debt” in the condensed consolidated statement of operations. On August 24, 2018, we also entered into the Seventh Amendment (the “Amendment”) to the Credit Agreement. The Amendment, among other things: (1) provided for a new tranche of revolving credit commitments in an aggregate principal amount of $1.5 billion (the “New Revolver”), which replaced our prior revolving credit facility; (2) amended the Credit Agreement to remove mechanics related to the 2017 TLA, which, as noted above, was repaid in full prior to the effectiveness of the Amendment; and (3) eliminated or amended certain representations, warranties and covenants to reflect our current credit ratings. The New Revolver is scheduled to mature on August 24, 2023. Borrowings under the New Revolver will bear interest, at the Company’s option, at either (1) a base rate equal to the highest of (i) the federal funds rate, plus 0.5% , (ii) the prime commercial lending rate of Bank of America, N.A. and (iii) the London Interbank Offered Rate (“LIBOR”) for an interest period of one month beginning on such day plus 1.00% , or (2) LIBOR, in each case, plus an applicable interest margin. LIBOR will be subject to a floor of 0% and base rate will be subject to an effective floor of 1.00% . The applicable interest margin for borrowings under the New Revolver will range from 0.875% to 1.375% for LIBOR borrowings and from 0% to 0.375% for base rate borrowings and will be determined by reference to a pricing grid based on the Company’s credit ratings. To date, we have not drawn on the New Revolver. Under the Credit Agreement, we are subject to a financial covenant requiring the Company’s Consolidated Total Net Debt Ratio (as defined in the Credit Agreement) not to exceed 3.75 :1.00 (or, at the Company’s option and for a limited period of time upon the consummation of a Qualifying Acquisition (as defined in the Credit Agreement), 4.25 :1.00). The Credit Agreement contains covenants customary for transactions of this type for issuers with similar credit ratings, including those restricting liens, debt of non-guarantor subsidiaries and certain fundamental changes, in each case with exceptions, including exceptions for secured debt and debt of non-guarantor subsidiaries of the Company, in each case up to an amount not exceeding 7.5% of Total Assets (as defined in the Credit Agreement). We were in compliance with the terms of the Credit Agreement as of September 30, 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, its key terms, and previous amendments made to it. Unsecured Senior Notes At 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. On July 17, 2018, we issued an irrevocable notice of redemption to the holders of all of our outstanding 2023 Notes. Accordingly, on August 16, 2018, using available cash on hand, we redeemed the 2023 Notes in full at a redemption price equal to 100% of the principal amount of the 2023 Notes plus a “make-whole” premium calculated as set forth in the indenture governing the 2023 Notes and accrued and unpaid interest to the redemption date. The redemption of the 2023 Notes resulted in a “Loss on extinguishment of debt” recorded in the condensed consolidated statement of operations of $33 million , comprised of premium payments of $25 million and a write-off of unamortized discount and deferred financing costs of $8 million . All other Notes referred to above remained outstanding as of September 30, 2018. 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 New Revolver described above. The Notes are not secured and are effectively junior to any of the Company’s existing and future indebtedness that is secured to the extent of the value of the collateral securing such indebtedness. We were in compliance with the terms of the Notes as of September 30, 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 the 2026 Notes, and payable semi-annually in arrears on June 15 and December 15 of each year for the 2022 Notes, the 2027 Notes, and the 2047 Notes. Accrued interest payable is recorded within “Accrued expenses and other liabilities” in our condensed consolidated balance sheets. As of September 30, 2018 and December 31, 2017 , we had accrued interest payable of $14 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 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 and nine months ended September 30, 2018 , interest expense was $32 million and $113 million , respectively, and amortization of the debt discount and deferred financing costs were $1 million and $5 million , respectively. For the three and nine months ended September 30, 2017 , interest expense was $39 million and $110 million , respectively, and amortization of the debt discount and deferred financing costs were $2 million and $10 million , respectively. A summary of our outstanding debt is as follows (amounts in millions): At September 30, 2018 Gross Carrying Amount Unamortized Net Carrying 2021 Notes $ 650 $ (4 ) $ 646 2022 Notes 400 (3 ) 397 2026 Notes 850 (8 ) 842 2027 Notes 400 (5 ) 395 2047 Notes 400 (10 ) 390 Total long-term debt $ 2,700 $ (30 ) $ 2,670 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 September 30, 2018 , the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years and thereafter are as follows (amounts in millions): For the year ending December 31, 2018 (remaining three months) $ — 2019 — 2020 — 2021 650 2022 400 Thereafter 1,650 Total $ 2,700 On February 1, 2018, our Board of Directors authorized repayment of up to $ 1.8 billion of the company’s outstanding debt during 2018. As of September 30, 2018, we had utilized this entire authorization to repay our 2017 TLA and redeem our 2023 Notes, as described above. Using Level 2 inputs (i.e., observable market prices in less-than-active markets) at September 30, 2018 , the carrying values of the 2021 Notes and the 2022 Notes approximated their fair values, as the interest rates were similar to the current rates at which we could borrow funds over the selected interest periods. At September 30, 2018 , based on Level 2 inputs, the fair values of the 2026 Notes, the 2027 Notes, and the 2047 Notes were $809 million , $379 million , and $380 million , respectively. 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)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, 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 (7 ) 14 4 11 Amounts reclassified from accumulated other comprehensive income (loss) into earnings — 11 — 11 Balance at September 30, 2018 $ (627 ) $ 10 $ 4 $ (613 ) For the Nine Months Ended September 30, 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 20 (38 ) (2 ) (20 ) Amounts reclassified from accumulated other comprehensive income (loss) into earnings 16 (7 ) (2 ) 7 Balance at September 30, 2017 $ (623 ) $ (16 ) $ (3 ) $ (642 ) Income taxes were not previously provided for foreign currency translation items, as these were considered indefinite investments in non-U.S. subsidiaries. Due to the Tax Cuts and Jobs Act enacted on December 22, 2017 (the “U.S. Tax Reform Act”), we re-evaluated our indefinite reinvestment assertions and no longer consider these items to be indefinite investments. The corresponding tax impact for this change in assertion was not material.

Operating Segments and Geograph

Operating Segments and Geographic Region	9 Months Ended
	Sep. 30, 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 organizational structure, the way we assess operating performance and allocate resources, and the availability of separate financial information. We do not aggregate operating segments. Information on reportable segment net revenues and operating income for the three months ended September 30, 2018 and 2017 , are presented below (amounts in millions): Three Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 397 $ 627 $ 506 $ 1,530 Intersegment net revenues (1) — 8 — 8 Segment net revenues $ 397 $ 635 $ 506 $ 1,538 Segment operating income $ 112 $ 189 $ 184 $ 485 Three Months Ended September 30, 2017 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 759 $ 531 $ 528 $ 1,818 Intersegment net revenues (1) — — — — Segment net revenues $ 759 $ 531 $ 528 $ 1,818 Segment operating income $ 261 $ 168 $ 208 $ 637 Information on reportable segment net revenues and operating income for the nine months ended September 30, 2018 and 2017 , are presented below (amounts in millions): Nine Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 1,047 $ 1,592 $ 1,542 $ 4,181 Intersegment net revenues (1) — 14 — 14 Segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 4,195 Segment operating income $ 288 $ 444 $ 543 $ 1,275 Nine Months Ended September 30, 2017 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 1,291 $ 1,539 $ 1,482 $ 4,312 Intersegment net revenues (1) — — — — Segment net revenues $ 1,291 $ 1,539 $ 1,482 $ 4,312 Segment operating income $ 371 $ 552 $ 538 $ 1,461 (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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Reconciliation to consolidated net revenues: Segment net revenues $ 1,538 $ 1,818 $ 4,195 $ 4,312 Revenues from other segments (1) 128 84 246 204 Net effect from recognition (deferral) of deferred net revenues (146 ) (284 ) 692 458 Elimination of intersegment revenues (2) (8 ) — (14 ) — Consolidated net revenues $ 1,512 $ 1,618 $ 5,119 $ 4,974 Reconciliation to consolidated income before income tax expense: Segment operating income $ 485 $ 637 $ 1,275 $ 1,461 Operating (loss) income from other segments (1) 7 (12 ) (4 ) (15 ) Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (89 ) (132 ) 468 370 Share-based compensation expense (55 ) (47 ) (166 ) (120 ) Amortization of intangible assets (83 ) (187 ) (279 ) (571 ) Fees and other expenses related to the acquisition of King (3) — (3 ) — (12 ) Restructuring costs (4) — — — (11 ) Other non-cash charges (5) — 1 — (14 ) Consolidated operating income 265 257 1,294 1,088 Interest and other expense (income), net 13 37 67 109 Loss on extinguishment of debt 40 — 40 12 Consolidated income before income tax expense $ 212 $ 220 $ 1,187 $ 967 (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 as discussed in Note 2, net revenues by distribution channel for the three and nine months ended September 30, 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 September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 299 $ 480 $ 505 $ — $ (8 ) $ 1,276 Retail channels 53 23 — — — 76 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Digital online channels (1) $ 57 $ 101 $ 1 $ — $ — $ 159 Retail channels (12 ) (2 ) — — — (14 ) Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Digital online channels (1) $ 356 $ 581 $ 506 $ — $ (8 ) $ 1,435 Retail channels 41 21 — — — 62 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 1,110 $ 1,355 $ 1,547 $ — $ (14 ) $ 3,998 Retail channels 707 57 — — — 764 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Digital online channels (1) $ (234 ) $ 79 $ (5 ) $ — $ — $ (160 ) Retail channels (536 ) (10 ) — — — (546 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Digital online channels (1) $ 876 $ 1,434 $ 1,542 $ — $ (14 ) $ 3,838 Retail channels 171 47 — — — 218 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 Net revenues by distribution channel for the three and nine months ended September 30, 2017 , were as follows (amounts in millions): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Net revenues by distribution channel: Digital online channels (1) $ 1,354 $ 4,048 Retail channels 168 698 Other (2) 96 228 Total consolidated net revenues $ 1,618 $ 4,974 (1) Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties. (2) Net revenues from “Other” 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 and nine months ended September 30, 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 214 $ 242 $ 309 $ 13 $ (4 ) $ 774 EMEA (1) 109 172 143 112 (2 ) 534 Asia Pacific 29 124 53 — (2 ) 204 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Americas $ 33 $ 43 $ — $ — $ — $ 76 EMEA (1) 8 48 1 3 — 60 Asia Pacific 4 6 — — — 10 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Americas $ 247 $ 285 $ 309 $ 13 $ (4 ) $ 850 EMEA (1) 117 220 144 115 (2 ) 594 Asia Pacific 33 130 53 — (2 ) 214 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 1,074 $ 716 $ 945 $ 13 $ (8 ) $ 2,740 EMEA (1) 613 497 448 220 (4 ) 1,774 Asia Pacific 130 323 154 — (2 ) 605 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Americas $ (439 ) $ 43 $ (3 ) $ — $ — $ (399 ) EMEA (1) (287 ) 34 (2 ) 13 — (242 ) Asia Pacific (44 ) (7 ) — — — (51 ) Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Americas $ 635 $ 759 $ 942 $ 13 $ (8 ) $ 2,341 EMEA (1) 326 531 446 233 (4 ) 1,532 Asia Pacific 86 316 154 — (2 ) 554 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 Net revenues by geographic region for the three and nine months ended September 30, 2017 , were as follows (amounts in millions): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Net revenues by geographic region: Americas $ 798 $ 2,586 EMEA (1) 593 1,684 Asia Pacific 227 704 Total consolidated net revenues $ 1,618 $ 4,974 (1) “EMEA” consists of the Europe, Middle East, and Africa geographic regions. (2) Intersegment revenues reflect licensing and service fees charged between segments. The Company’s net revenues in the U.S. were 46% and 43% of consolidated net revenues for the three months ended September 30, 2018 and 2017, respectively . The Company’s net revenues in the U.K. were 13% and 12% of consolidated net revenues for the three months ended September 30, 2018 and 2017, respectively . No other country’s net revenues exceeded 10% of consolidated net revenues for either the three months ended September 30, 2018 or 2017 . The Company’s net revenues in the U.S. were 47% and 46% of consolidated net revenues for the nine months ended September 30, 2018 and 2017, respectively . The Company’s net revenues in the U.K. were 11% and 10% of consolidated net revenues for the nine months ended September 30, 2018 and 2017, respectively . No other country’s net revenues exceeded 10% of consolidated net revenues for either the nine months ended September 30, 2018 or 2017 . Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three and nine months ended September 30, 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 307 $ 40 $ — $ — $ — $ 347 PC 40 414 36 — (8 ) 482 Mobile and ancillary (1) 5 49 469 — — 523 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Console $ 29 $ (9 ) $ — $ — $ — $ 20 PC 16 101 — — — 117 Mobile and ancillary (1) — 7 1 — — 8 Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Console $ 336 $ 31 $ — $ — $ — $ 367 PC 56 515 36 — (8 ) 599 Mobile and ancillary (1) 5 56 470 — — 531 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 1,597 $ 133 $ — $ — $ — $ 1,730 PC 208 1,140 118 — (14 ) 1,452 Mobile and ancillary (1) 12 139 1,429 — — 1,580 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Console $ (695 ) $ (25 ) $ — $ — $ — $ (720 ) PC (76 ) 96 — — — 20 Mobile and ancillary (1) 1 (2 ) (5 ) — — (6 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Console $ 902 $ 108 $ — $ — $ — $ 1,010 PC 132 1,236 118 — (14 ) 1,472 Mobile and ancillary (1) 13 137 1,424 — — 1,574 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 Net revenues by platform for the three and nine months ended September 30, 2017 , were as follows (amounts in millions): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Net revenues by platform: Console $ 527 $ 1,710 PC 461 1,534 Mobile and ancillary (1) 534 1,502 Other (2) 96 228 Total consolidated net revenues $ 1,618 $ 4,974 (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 September 30, 2018 At December 31, 2017 Long-lived assets (1) by geographic region: Americas $ 202 $ 197 EMEA 61 75 Asia Pacific 18 22 Total long-lived assets by geographic region $ 281 $ 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	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We account for our provision for income taxes in accordance with Accounting Standards Codification (“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 to tax credits and state and local income taxes; developments in tax audits and other matters; recognition of excess tax benefits and tax deficiencies from share-based payments; and certain nondeductible expenses. Changes in judgment from the evaluation of new information resulting in the recognition, derecognition, or remeasurement of a tax position taken in a prior annual period are recognized separately in the quarter of the change. On June 27, 2018, the Company entered into a closing agreement with the Internal Revenue Service (“IRS”) to resolve certain intercompany transfer pricing arrangements for tax periods starting in 2009 (the “Closing Agreement”). The primary adjustments related to the Closing Agreement that were recognized in the second quarter of 2018 were a tax expense of $70 million and a reduction in unrecognized tax benefits of $437 million . In addition, we recognized $185 million of tax benefits related to other tax adjustments resulting from the changes in U.S. tax attributes and taxable income caused by the primary adjustments. The Closing Agreement results in federal and state cash tax payments totaling approximately $345 million , of which we made federal tax payments of $334 million in October 2018. We evaluate deferred tax assets each period for recoverability. We record a valuation allowance for assets that do not meet the threshold of “more likely than not” to be realized in the future. To make that determination, the Company evaluates the likelihood of realization based on the weight of all positive and negative evidence available. As of December 31, 2017, the Company had a deferred tax asset for California research and development credit carryforwards (“CA R&D Credits”), which can be carried forward indefinitely. The Closing Agreement impacts historical and prospective filings in certain states, including California, and after considering the impact of the Closing Agreement on its prospective California taxable income, the Company determined that its remaining CA R&D Credits no longer met the threshold of more likely than not of being realized in the future. Accordingly, during the three months ended June 30, 2018, we recorded a full valuation allowance of $57 million . Additionally, the Company has not recognized a tax benefit for current-year CA R&D Credits in its year-to-date tax expense. We will reassess this determination quarterly and record a tax benefit if future evidence allows for a partial or full release of this valuation allowance. 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 imposed a one-time tax on deemed repatriated earnings of foreign subsidiaries (the “Transition Tax”). On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on how to account for the effects of the U.S. Tax Reform Act under ASC 740. SAB 118 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. In addition, as of December 31. 2017, we no longer considered the available cash balances related to undistributed earnings held outside of the U.S. by our foreign subsidiaries to be indefinitely reinvested. 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 June 30, 2018, the Company obtained additional information, including adjustments related to the Closing Agreement, and the evaluation of the impact of changing our indefinite reinvestment assertion, which affected the provisional amount initially recorded for the U.S. Tax Reform Act in the fourth quarter of 2017. As a result, the Company recorded an additional tax expense of $34 million in the three months ended June 30, 2018, reflecting the effects of the U.S. Tax Reform Act. In conjunction with the filing of our 2017 federal tax return, during the three months ended September 30, 2018, the Company prepared and analyzed additional information, which affected the provisional amounts initially recorded for the U.S. Tax Reform Act in the fourth quarter of 2017. As result, the Company recorded a tax benefit of $80 million related to the Transition Tax and remeasurement of deferred taxes in the three months September 30, 2018, reflecting the effects of the U.S. Tax Reform Act. 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. These provisions are complex and subject to continuing regulatory interpretation by the IRS. While we have included an estimate of GILTI 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 benefit of $48 million for the three months ended September 30, 2018 , reflects an effective tax rate of (23)% , which is lower than the effective tax rate of 15% for the three months ended September 30, 2017 . The decrease is due to a discrete tax benefit resulting from adjustments made to the provisional amount initially recorded for U.S. Tax Reform Act described above and the benefit from the lower U.S. corporate income tax rate in the current year. This decrease was partially offset by lower excess tax benefits from share-based payments. The income tax expense of $25 million for the nine months ended September 30, 2018 , reflects an effective tax rate of 2% , which is lower than the effective tax rate of 11% for the nine months ended September 30, 2017 . The decrease is due to a discrete net tax benefit resulting from the Closing Agreement, a discrete tax benefit resulting from adjustments made to the provisional amount initially recorded for U.S. Tax Reform Act and the benefit from the lower U.S. corporate income tax rate in the current year, net of the impact of GILTI. This decrease was partially offset by the valuation allowance recorded with regard to CA R&D Credits and lower excess tax benefits from share-based payments. The effective tax rate of (23)% and 2% for the three and nine months ended September 30, 2018 , respectively, is lower than the U.S. statutory rate of 21% , primarily due to a discrete net tax benefit resulting from the Closing Agreement, a discrete tax benefit resulting from adjustments made to the provisional amount initially recorded for U.S. Tax Reform Act, foreign earnings taxed at relatively lower statutory rates, the recognition of excess tax benefits from share-based payments, and recognition of federal research and development credits, partially offset by the valuation allowance recorded with regard to CA R&D Credits. Activision Blizzard’s 2009 through 2016 tax years remain open to examination by certain major taxing jurisdictions to which we are subject. During February 2018, the Company was notified by the IRS that its tax returns for 2012 through 2016 tax years will be subject to examination. In September 2018, the IRS concluded its examination of our 2009 through 2011 tax years. 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 our 2016 acquisition of King, the Company assumed $74 million of uncertain tax positions primarily related to pre-acquisition transfer pricing matters. The Company is currently in negotiations with the tax authorities in the relevant jurisdictions, which include the UK and Sweden, with respect to King's transfer pricing for both pre- and post-acquisition tax years. While the outcome of these negotiations remains uncertain, they could result in an agreement that changes the allocation of profits and losses between these and other relevant jurisdictions or a failure to reach agreement that results in unilateral adjustments to the amount and timing of taxable income in the jurisdictions in which King operates. On October 25, 2018, we received a proposal from the Swedish Tax Agency (“STA”) informing us of their intent to issue an audit assessment to a Swedish subsidiary of King for the 2016 tax year. The STA proposal described the basis for issuing a transfer pricing assessment of approximately 3.5kr billion (approximately $400 million ) primarily concerning an alleged intercompany asset transfer. We disagree with the STA’s proposal and, if they proceed with issuing a formal tax assessment, intend to vigorously contest it. We would plan to pursue all remedies available to us to successfully resolve the matter, including administrative remedies with the STA, multilateral procedures with other relevant taxing jurisdictions, and, if necessary, judicial remedies. While we believe our tax provisions at September 30, 2018 are appropriate, until such time as this matter is ultimately resolved we could be subject to significant additional tax liabilities. 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 (approximately $660 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 September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Consolidated net income $ 260 $ 188 $ 1,162 $ 858 Denominator: Denominator for basic earnings per common share—weighted-average common shares outstanding 763 755 761 753 Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards 8 11 10 11 Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding 771 766 771 764 Basic earnings per common share $ 0.34 $ 0.25 $ 1.53 $ 1.14 Diluted earnings per common share $ 0.34 $ 0.25 $ 1.51 $ 1.12 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 shares are not included in the computation of diluted earnings per share for both the three and nine months ended September 30, 2018 , as their underlying performance measures had not yet been met. Approximately 9 million and 8 million shares are not included in the computation of diluted earnings per share for the three and nine months ended September 30, 2017 , respectively, as their underlying 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 1 million and 2 million options to purchase shares of common stock were not included in the calculation of diluted earnings per common share for the three and nine months ended September 30, 2018 , respectively, and 1 million options to purchase shares of common stock were not included in the calculation of diluted earnings per common share for both the three and nine months ended September 30, 2017 , as the effect of their inclusion would be anti-dilutive.

Capital Transactions

Capital Transactions	9 Months Ended
	Sep. 30, 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 September 30, 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. On May 9, 2018, we made an aggregate cash dividend payment of $259 million to shareholders of record at the close of business on March 30, 2018. On February 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.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 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 Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 Financial Accounting Standards Board (“FASB”) issued new accounting guidance related to revenue recognition. The new standard replaces all current U.S. GAAP guidance on this topic, eliminating all industry-specific guidance and 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 (collectively, 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 has 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 products 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. Revenues associated with the sales of subscriptions are deferred until the subscription service is activated by the consumer and are then recognized ratably over the subscription period as the performance obligations are satisfied. Revenues attributable to the purchase of World of Warcraft software by our customers, including expansion packs, are classified as “Product sales,” whereas revenues attributable to subscriptions and other in-game revenues are classified as “Subscription, licensing, and other revenues.” 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 Corporation’s (“Microsoft”) Xbox Games Store, Sony Interactive Entertainment Inc.’s (“Sony”) PSN, the Apple App Store, and the Google Play Store, to determine whether revenues should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining 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 the Apple App Store and the Google Play Store, and we report revenues on a net basis (i.e., net of fees retained by the digital storefront) for sales arrangements via Microsoft’s Xbox Games Store and Sony’s PSN. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in our accounts receivable balance. In estimating the allowance for doubtful accounts, we analyze the age of current outstanding account balances, historical bad debts, customer concentrations, customer creditworthiness, current economic trends, and changes in our customers’ payment terms and their economic condition, as well as whether we can obtain sufficient credit insurance. Any significant changes in any of these criteria would affect management’s estimates in establishing our allowance for doubtful accounts. Deferred revenue is comprised primarily of unearned revenue related to the sale of products with online functionality or online hosted arrangements. We typically invoice, and collect payment for, these sales at the beginning of the contract period and recognize revenue ratably over the estimated service period. Deferred revenue also includes payments for: product sales pending delivery or activation; subscription revenues; licensing revenues with fixed minimum guarantees; and other revenues for which we have been paid in advance and earn the revenue when we transfer control of the product or service. Refer to Note 9 for further information, including changes in deferred revenue during the period. Assets Recognized from Costs to Obtain a Contract with a Customer We apply the practical expedient to expense costs, as incurred, to obtain a contract with a customer when the amortization period would have been one year or less for certain similar contracts in which commissions are paid to internal personnel or third parties. We believe application of the practical expedient has a limited effect on the amount and timing of cost recognition. Total capitalized costs to obtain a contract were immaterial as of September 30, 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 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 (1) identifying the satisfied and unsatisfied performance obligations, (2) determining the transaction price, and (3) 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 impacts 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. The amount of revenue recognized upon delivery of games to our customers is analyzed on a title-by-title basis and may change in the future. For example, we expect the entire sales price from our Call of Duty: Black Ops 4 release to be recognized ratably over an estimated service period, as the gameplay has an increased focus towards the online competitive and cooperative game modes with no single-player campaign mode. 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 impact 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 and nine months ended September 30, 2018 , and our condensed consolidated balance sheet as of September 30, 2018 as follows (in millions, except per share data): For the Three Months Ended September 30, 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 $ 263 $ 269 $ (6 ) Subscription, licensing, and other revenues 1,249 1,226 23 Total net revenues 1,512 1,495 17 Costs and expenses Cost of revenues—product sales: Product costs 127 126 1 Software royalties, amortization, and intellectual property licenses 20 24 (4 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 257 257 — Software royalties, amortization, and intellectual property licenses 109 109 — Product development 263 263 — Sales and marketing 263 263 — General and administrative 208 208 — Total costs and expenses 1,247 1,250 (3 ) Operating income 265 245 20 Interest and other expense (income), net 13 13 — Loss on extinguishment of debt 40 40 — Income before income tax expense (benefit) 212 192 20 Income tax expense (benefit) (48 ) (57 ) 9 Net income $ 260 $ 249 $ 11 Earnings per common share Basic $ 0.34 $ 0.33 $ 0.01 Diluted $ 0.34 $ 0.32 $ 0.02 For the Nine Months Ended September 30, 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 $ 1,447 $ 1,593 $ (146 ) Subscription, licensing, and other revenues 3,672 3,645 27 Total net revenues 5,119 5,238 (119 ) Costs and expenses Cost of revenues—product sales: Product costs 416 438 (22 ) Software royalties, amortization, and intellectual property licenses 214 232 (18 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 777 777 — Software royalties, amortization, and intellectual property licenses 278 278 — Product development 776 776 — Sales and marketing 741 740 1 General and administrative 623 623 — Total costs and expenses 3,825 3,864 (39 ) Operating income 1,294 1,374 (80 ) Interest and other expense (income), net 67 67 — Loss on extinguishment of debt 40 40 — Income before income tax expense 1,187 1,267 (80 ) Income tax expense 25 41 (16 ) Net income $ 1,162 $ 1,226 $ (64 ) Earnings per common share Basic $ 1.53 $ 1.61 $ (0.08 ) Diluted $ 1.51 $ 1.59 $ (0.08 ) At September 30, 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 $ 641 $ 637 $ 4 Software development 348 350 (2 ) Other current assets 501 519 (18 ) Deferred income taxes, net 243 262 (19 ) Other assets 454 469 (15 ) Liabilities and Shareholders’ Equity Deferred revenues $ 1,017 $ 1,077 $ (60 ) Accrued expenses and other liabilities 1,053 1,056 (3 ) Other liabilities 991 1,005 (14 ) Shareholders’ equity 10,659 10,632 27 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. 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 nine months ended September 30, 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. Classification will be based on criteria that are largely similar to those applied in current lease accounting. The lease liability will be equal to the present value of lease payments. The asset will be based on the lease 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. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. When the new standard was initially issued, it was required to be adopted using a modified retrospective transition that required application of the new guidance at the beginning of the earliest comparative period presented, subject to certain transition practical expedients available to provide relief in connection with the adoption. In July 2018, the FASB issued guidance to provide for an optional adoption method that allows companies to use the effective date of the new lease standard as the initial date of application on transition, and therefore does not require prior periods to be restated. Although we continue to evaluate the impact of this new accounting guidance on our financial statements, we expect it to have a significant impact on our consolidated balance sheet as a result of establishing lease liabilities and right-of-use assets for our operating leases. As part of our evaluation process, we have established a project implementation team that is evaluating our lease portfolio and system solutions, as well as identifying required process and policy changes, which include consideration of internal controls. We have made progress in gathering the necessary data elements for our lease population, have selected a system provider, and system configuration and implementation is underway. We do not plan to early adopt this new standard but do expect to elect and apply the available transition practical expedients, including the optional adoption method discussed above. Goodwill In January 2017, the FASB issued new guidance that eliminates Step 2 from the goodwill impairment test. Instead, if an entity forgoes a Step 0 test, 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. Cloud Computing Arrangements In August 2018, the FASB issued new guidance related to a customer’s accounting for implementation costs incurred in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract. The new guidance requires customers to capitalize implementation costs for these arrangements by applying the same criteria that is utilized for existing internal-use software guidance. The capitalized costs are required to be amortized over the associated term of the arrangement, generally on a straight-line basis, with amortization of these costs presented in the same financial statement line item as other costs associated with the arrangement. The new standard is effective for fiscal years beginning after December 15, 2019, and can be applied retrospectively or prospectively. Early adoption is permitted. We are evaluating the impact, if any, of adopting this new accounting guidance on our financial statements.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2018 , and our condensed consolidated balance sheet as of September 30, 2018 as follows (in millions, except per share data): For the Three Months Ended September 30, 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 $ 263 $ 269 $ (6 ) Subscription, licensing, and other revenues 1,249 1,226 23 Total net revenues 1,512 1,495 17 Costs and expenses Cost of revenues—product sales: Product costs 127 126 1 Software royalties, amortization, and intellectual property licenses 20 24 (4 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 257 257 — Software royalties, amortization, and intellectual property licenses 109 109 — Product development 263 263 — Sales and marketing 263 263 — General and administrative 208 208 — Total costs and expenses 1,247 1,250 (3 ) Operating income 265 245 20 Interest and other expense (income), net 13 13 — Loss on extinguishment of debt 40 40 — Income before income tax expense (benefit) 212 192 20 Income tax expense (benefit) (48 ) (57 ) 9 Net income $ 260 $ 249 $ 11 Earnings per common share Basic $ 0.34 $ 0.33 $ 0.01 Diluted $ 0.34 $ 0.32 $ 0.02 For the Nine Months Ended September 30, 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 $ 1,447 $ 1,593 $ (146 ) Subscription, licensing, and other revenues 3,672 3,645 27 Total net revenues 5,119 5,238 (119 ) Costs and expenses Cost of revenues—product sales: Product costs 416 438 (22 ) Software royalties, amortization, and intellectual property licenses 214 232 (18 ) Cost of revenues—subscription, licensing, and other revenues: Game operations and distribution costs 777 777 — Software royalties, amortization, and intellectual property licenses 278 278 — Product development 776 776 — Sales and marketing 741 740 1 General and administrative 623 623 — Total costs and expenses 3,825 3,864 (39 ) Operating income 1,294 1,374 (80 ) Interest and other expense (income), net 67 67 — Loss on extinguishment of debt 40 40 — Income before income tax expense 1,187 1,267 (80 ) Income tax expense 25 41 (16 ) Net income $ 1,162 $ 1,226 $ (64 ) Earnings per common share Basic $ 1.53 $ 1.61 $ (0.08 ) Diluted $ 1.51 $ 1.59 $ (0.08 ) At September 30, 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 $ 641 $ 637 $ 4 Software development 348 350 (2 ) Other current assets 501 519 (18 ) Deferred income taxes, net 243 262 (19 ) Other assets 454 469 (15 ) Liabilities and Shareholders’ Equity Deferred revenues $ 1,017 $ 1,077 $ (60 ) Accrued expenses and other liabilities 1,053 1,056 (3 ) Other liabilities 991 1,005 (14 ) Shareholders’ equity 10,659 10,632 27 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)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories, net, consist of the following (amounts in millions): At September 30, 2018 At December 31, 2017 Finished goods $ 161 $ 45 Purchased parts and components 13 1 Inventories, net $ 174 $ 46

Software Development and Inte_2

Software Development and Intellectual Property Licenses (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 At December 31, 2017 Internally-developed software costs $ 356 $ 270 Payments made to third-party software developers 166 183 Total software development costs $ 522 $ 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Amortization of capitalized software development costs and intellectual property licenses $ 33 $ 34 $ 242 $ 206

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of finite-lived intangible assets	Intangible assets, net, consist of the following (amounts in millions): At September 30, 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 $ (987 ) $ 167 Developed software 2 - 5 years 601 (413 ) 188 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (21 ) 33 Other 1 - 15 years 19 (14 ) 5 Total definite-lived intangible assets $ 2,445 $ (2,052 ) $ 393 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 826 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 September 30, 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 $ (987 ) $ 167 Developed software 2 - 5 years 601 (413 ) 188 Customer base 2 years 617 (617 ) — Trade names 7 - 10 years 54 (21 ) 33 Other 1 - 15 years 19 (14 ) 5 Total definite-lived intangible assets $ 2,445 $ (2,052 ) $ 393 Acquired indefinite-lived intangible assets: Activision trademark Indefinite 386 Acquired trade names Indefinite 47 Total indefinite-lived intangible assets $ 433 Total intangible assets, net $ 826 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 September 30, 2018 , future amortization of definite-lived intangible assets is estimated as follows (amounts in millions): 2018 (remaining three months) $ 91 2019 210 2020 69 2021 11 2022 7 Thereafter 5 Total $ 393

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The carrying amount of goodwill by reportable segment at September 30, 2018 and December 31, 2017 was as follows (amounts in millions): Activision Blizzard King Total Goodwill $ 6,898 $ 190 $ 2,675 $ 9,763

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2018 Using As of September 30, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance Sheet Classification Financial Assets: Recurring fair value measurements: Money market funds $ 3,087 $ 3,087 $ — $ — Cash and cash equivalents Foreign government treasury bills 35 35 — — Cash and cash equivalents U.S. treasuries and government agency securities 116 116 — — Other current assets Foreign currency forward contracts designated as hedges 11 — 11 — Other current assets Total recurring fair value measurements $ 3,249 $ 3,238 $ 11 $ — Financial liabilities: Foreign currency forward contracts not designated as hedges $ (5 ) $ — $ (5 ) $ — Accrued expenses and other liabilities Foreign currency forward contracts designated as hedges $ (4 ) $ — $ (4 ) $ — 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 Cash Flow Hedges are as follows (amounts in millions): As of September 30, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy USD, Sell Euro $ 843 $ 7 $ 521 $ (5 ) 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 September 30, 2018 As of December 31, 2017 Notional amount Fair value gain (loss) Notional amount Fair value gain (loss) Foreign Currency: Buy Euro, Sell USD $ 119 $ (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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Statement of Operations Classification Cash Flow Hedges $ 3 $ (2 ) $ (11 ) $ 7 Net revenues

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Summary of debt	A summary of our outstanding debt is as follows (amounts in millions): At September 30, 2018 Gross Carrying Amount Unamortized Net Carrying 2021 Notes $ 650 $ (4 ) $ 646 2022 Notes 400 (3 ) 397 2026 Notes 850 (8 ) 842 2027 Notes 400 (5 ) 395 2047 Notes 400 (10 ) 390 Total long-term debt $ 2,700 $ (30 ) $ 2,670 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 September 30, 2018 , the scheduled maturities and contractual principal repayments of our debt for each of the five succeeding years and thereafter are as follows (amounts in millions): For the year ending December 31, 2018 (remaining three months) $ — 2019 — 2020 — 2021 650 2022 400 Thereafter 1,650 Total $ 2,700

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, 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 (7 ) 14 4 11 Amounts reclassified from accumulated other comprehensive income (loss) into earnings — 11 — 11 Balance at September 30, 2018 $ (627 ) $ 10 $ 4 $ (613 ) For the Nine Months Ended September 30, 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 20 (38 ) (2 ) (20 ) Amounts reclassified from accumulated other comprehensive income (loss) into earnings 16 (7 ) (2 ) 7 Balance at September 30, 2017 $ (623 ) $ (16 ) $ (3 ) $ (642 )

Operating Segments and Geogra_2

Operating Segments and Geographic Region (Tables)	9 Months Ended
	Sep. 30, 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 reportable segment net revenues and operating income for the three months ended September 30, 2018 and 2017 , are presented below (amounts in millions): Three Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 397 $ 627 $ 506 $ 1,530 Intersegment net revenues (1) — 8 — 8 Segment net revenues $ 397 $ 635 $ 506 $ 1,538 Segment operating income $ 112 $ 189 $ 184 $ 485 Three Months Ended September 30, 2017 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 759 $ 531 $ 528 $ 1,818 Intersegment net revenues (1) — — — — Segment net revenues $ 759 $ 531 $ 528 $ 1,818 Segment operating income $ 261 $ 168 $ 208 $ 637 Information on reportable segment net revenues and operating income for the nine months ended September 30, 2018 and 2017 , are presented below (amounts in millions): Nine Months Ended September 30, 2018 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 1,047 $ 1,592 $ 1,542 $ 4,181 Intersegment net revenues (1) — 14 — 14 Segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 4,195 Segment operating income $ 288 $ 444 $ 543 $ 1,275 Nine Months Ended September 30, 2017 Activision Blizzard King Total Segment Net Revenues Net revenues from external customers $ 1,291 $ 1,539 $ 1,482 $ 4,312 Intersegment net revenues (1) — — — — Segment net revenues $ 1,291 $ 1,539 $ 1,482 $ 4,312 Segment operating income $ 371 $ 552 $ 538 $ 1,461 (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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Reconciliation to consolidated net revenues: Segment net revenues $ 1,538 $ 1,818 $ 4,195 $ 4,312 Revenues from other segments (1) 128 84 246 204 Net effect from recognition (deferral) of deferred net revenues (146 ) (284 ) 692 458 Elimination of intersegment revenues (2) (8 ) — (14 ) — Consolidated net revenues $ 1,512 $ 1,618 $ 5,119 $ 4,974 Reconciliation to consolidated income before income tax expense: Segment operating income $ 485 $ 637 $ 1,275 $ 1,461 Operating (loss) income from other segments (1) 7 (12 ) (4 ) (15 ) Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (89 ) (132 ) 468 370 Share-based compensation expense (55 ) (47 ) (166 ) (120 ) Amortization of intangible assets (83 ) (187 ) (279 ) (571 ) Fees and other expenses related to the acquisition of King (3) — (3 ) — (12 ) Restructuring costs (4) — — — (11 ) Other non-cash charges (5) — 1 — (14 ) Consolidated operating income 265 257 1,294 1,088 Interest and other expense (income), net 13 37 67 109 Loss on extinguishment of debt 40 — 40 12 Consolidated income before income tax expense $ 212 $ 220 $ 1,187 $ 967 (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 as discussed in Note 2, net revenues by distribution channel for the three and nine months ended September 30, 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 September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 299 $ 480 $ 505 $ — $ (8 ) $ 1,276 Retail channels 53 23 — — — 76 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Digital online channels (1) $ 57 $ 101 $ 1 $ — $ — $ 159 Retail channels (12 ) (2 ) — — — (14 ) Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Digital online channels (1) $ 356 $ 581 $ 506 $ — $ (8 ) $ 1,435 Retail channels 41 21 — — — 62 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by distribution channel: Digital online channels (1) $ 1,110 $ 1,355 $ 1,547 $ — $ (14 ) $ 3,998 Retail channels 707 57 — — — 764 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Digital online channels (1) $ (234 ) $ 79 $ (5 ) $ — $ — $ (160 ) Retail channels (536 ) (10 ) — — — (546 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Digital online channels (1) $ 876 $ 1,434 $ 1,542 $ — $ (14 ) $ 3,838 Retail channels 171 47 — — — 218 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 Net revenues by distribution channel for the three and nine months ended September 30, 2017 , were as follows (amounts in millions): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Net revenues by distribution channel: Digital online channels (1) $ 1,354 $ 4,048 Retail channels 168 698 Other (2) 96 228 Total consolidated net revenues $ 1,618 $ 4,974 (1) Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, and products, as well as licensing royalties. (2) Net revenues from “Other” 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 and nine months ended September 30, 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 214 $ 242 $ 309 $ 13 $ (4 ) $ 774 EMEA (1) 109 172 143 112 (2 ) 534 Asia Pacific 29 124 53 — (2 ) 204 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Americas $ 33 $ 43 $ — $ — $ — $ 76 EMEA (1) 8 48 1 3 — 60 Asia Pacific 4 6 — — — 10 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Americas $ 247 $ 285 $ 309 $ 13 $ (4 ) $ 850 EMEA (1) 117 220 144 115 (2 ) 594 Asia Pacific 33 130 53 — (2 ) 214 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (2) Total Net revenues by geographic region: Americas $ 1,074 $ 716 $ 945 $ 13 $ (8 ) $ 2,740 EMEA (1) 613 497 448 220 (4 ) 1,774 Asia Pacific 130 323 154 — (2 ) 605 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Americas $ (439 ) $ 43 $ (3 ) $ — $ — $ (399 ) EMEA (1) (287 ) 34 (2 ) 13 — (242 ) Asia Pacific (44 ) (7 ) — — — (51 ) Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Americas $ 635 $ 759 $ 942 $ 13 $ (8 ) $ 2,341 EMEA (1) 326 531 446 233 (4 ) 1,532 Asia Pacific 86 316 154 — (2 ) 554 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 Net revenues by geographic region for the three and nine months ended September 30, 2017 , were as follows (amounts in millions): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Net revenues by geographic region: Americas $ 798 $ 2,586 EMEA (1) 593 1,684 Asia Pacific 227 704 Total consolidated net revenues $ 1,618 $ 4,974 (1) “EMEA” consists of the Europe, Middle East, and Africa geographic regions. (2) Intersegment revenues reflect licensing and service fees charged between segments.
Schedule of net revenues by platform	Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three and nine months ended September 30, 2018 , were as follows (amounts in millions): Three Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 307 $ 40 $ — $ — $ — $ 347 PC 40 414 36 — (8 ) 482 Mobile and ancillary (1) 5 49 469 — — 523 Other (2) — 35 — 125 — 160 Total consolidated net revenues $ 352 $ 538 $ 505 $ 125 $ (8 ) $ 1,512 Change in deferred revenues: Console $ 29 $ (9 ) $ — $ — $ — $ 20 PC 16 101 — — — 117 Mobile and ancillary (1) — 7 1 — — 8 Other (2) — (2 ) — 3 — 1 Total change in deferred revenues $ 45 $ 97 $ 1 $ 3 $ — $ 146 Segment net revenues: Console $ 336 $ 31 $ — $ — $ — $ 367 PC 56 515 36 — (8 ) 599 Mobile and ancillary (1) 5 56 470 — — 531 Other (2) — 33 — 128 — 161 Total segment net revenues $ 397 $ 635 $ 506 $ 128 $ (8 ) $ 1,658 Nine Months Ended September 30, 2018 Activision Blizzard King Non-reportable segments Elimination of intersegment revenues (3) Total Net revenues by platform: Console $ 1,597 $ 133 $ — $ — $ — $ 1,730 PC 208 1,140 118 — (14 ) 1,452 Mobile and ancillary (1) 12 139 1,429 — — 1,580 Other (2) — 124 — 233 — 357 Total consolidated net revenues $ 1,817 $ 1,536 $ 1,547 $ 233 $ (14 ) $ 5,119 Change in deferred revenues: Console $ (695 ) $ (25 ) $ — $ — $ — $ (720 ) PC (76 ) 96 — — — 20 Mobile and ancillary (1) 1 (2 ) (5 ) — — (6 ) Other (2) — 1 — 13 — 14 Total change in deferred revenues $ (770 ) $ 70 $ (5 ) $ 13 $ — $ (692 ) Segment net revenues: Console $ 902 $ 108 $ — $ — $ — $ 1,010 PC 132 1,236 118 — (14 ) 1,472 Mobile and ancillary (1) 13 137 1,424 — — 1,574 Other (2) — 125 — 246 — 371 Total segment net revenues $ 1,047 $ 1,606 $ 1,542 $ 246 $ (14 ) $ 4,427 Net revenues by platform for the three and nine months ended September 30, 2017 , were as follows (amounts in millions): Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Net revenues by platform: Console $ 527 $ 1,710 PC 461 1,534 Mobile and ancillary (1) 534 1,502 Other (2) 96 228 Total consolidated net revenues $ 1,618 $ 4,974 (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 September 30, 2018 At December 31, 2017 Long-lived assets (1) by geographic region: Americas $ 202 $ 197 EMEA 61 75 Asia Pacific 18 22 Total long-lived assets by geographic region $ 281 $ 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 _2

Computation of Basic/Diluted Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 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 September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Numerator: Consolidated net income $ 260 $ 188 $ 1,162 $ 858 Denominator: Denominator for basic earnings per common share—weighted-average common shares outstanding 763 755 761 753 Effect of potential dilutive common shares under the treasury stock method—employee stock options and awards 8 11 10 11 Denominator for basic earnings per common share—weighted-average dilutive common shares outstanding 771 766 771 764 Basic earnings per common share $ 0.34 $ 0.25 $ 1.53 $ 1.14 Diluted earnings per common share $ 0.34 $ 0.25 $ 1.51 $ 1.12

Description of Business and B_2

Description of Business and Basis of Consolidation and Presentation (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)segment	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Supplemental Cash Flow Elements [Abstract]
Restricted cash | $	$ 8	$ 7	$ 10	$ 17

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 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 Pr_3

Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2016	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative impact from adoption of new revenue accounting standard (Note 3)			$ 3
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 Pr_4

Recently Issued Accounting Pronouncements - Modified Retrospective Method - Adjusted Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivable, net	$ 641	$ 921	$ 918
Software development	348	347	367
Other current assets	501	441	476
Deferred income taxes, net	243	427	459
Other assets	454	444	440
Liabilities and Shareholders’ Equity
Deferred revenues	1,017	1,735	1,929
Accrued expenses and other liabilities	1,053		1,411
Other liabilities	991	1,155	1,132
Shareholders’ equity	10,659	9,553	9,462
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Accounts receivable, net	637		918
Software development	350		367
Other current assets	519		476
Deferred income taxes, net	262		459
Other assets	469		440
Liabilities and Shareholders’ Equity
Deferred revenues	1,077		1,929
Accrued expenses and other liabilities	1,056
Other liabilities	1,005		1,132
Shareholders’ equity	10,632		$ 9,462
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Assets
Accounts receivable, net	4	3
Software development	(2)	(20)
Other current assets	(18)	(35)
Deferred income taxes, net	(19)	(32)
Other assets	(15)	4
Liabilities and Shareholders’ Equity
Deferred revenues	(60)	(194)
Accrued expenses and other liabilities	(3)
Other liabilities	(14)	23
Shareholders’ equity	$ 27	$ 91

Recently Issued Accounting Pr_5

Recently Issued Accounting Pronouncements - Schedule of Impact of Adoption on Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Net revenues
Net revenues	$ 1,512	$ 1,618	$ 5,119	$ 4,974
Cost of revenues—product sales and subscription, licensing, and other revenues:
Product development	263	273	776	750
Sales and marketing	263	345	741	899
General and administrative	208	191	623	539
Total costs and expenses	1,247	1,361	3,825	3,886
Operating income	265	257	1,294	1,088
Interest and other expense (income), net	13	37	67	109
Loss on extinguishment of debt	40	0	40	12
Income before income tax expense (benefit)	212	220	1,187	967
Income tax expense (benefit)	(48)	32	25	109
Net income	$ 260	$ 188	$ 1,162	$ 858
Earnings per common share
Basic (in dollars per share)	$ 0.34	$ 0.25	$ 1.53	$ 1.14
Diluted (in dollars per share)	$ 0.34	$ 0.25	$ 1.51	$ 1.12
Assets
Accounts receivable, net	$ 641		$ 641		$ 921	$ 918
Software development	348		348		347	367
Other current assets	501		501		441	476
Deferred income taxes, net	243		243		427	459
Other assets	454		454		444	440
Liabilities and Shareholders’ Equity
Deferred revenues	1,017		1,017		1,735	1,929
Accrued expenses and other liabilities	1,053		1,053			1,411
Other liabilities	991		991		1,155	1,132
Shareholders’ equity	10,659		10,659		9,553	9,462
Product sales
Net revenues
Net revenues	263	$ 384	1,447	$ 1,373
Product costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	127	149	416	422
Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	20	37	214	200
Subscription, licensing, and other revenues
Net revenues
Net revenues	1,249	1,234	3,672	3,601
Game operations and distribution costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	257	249	777	717
Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	109	$ 117	278	$ 359
Calculated under Revenue Guidance in Effect before Topic 606
Net revenues
Net revenues	1,495		5,238
Cost of revenues—product sales and subscription, licensing, and other revenues:
Product development	263		776
Sales and marketing	263		740
General and administrative	208		623
Total costs and expenses	1,250		3,864
Operating income	245		1,374
Interest and other expense (income), net	13		67
Loss on extinguishment of debt	40		40
Income before income tax expense (benefit)	192		1,267
Income tax expense (benefit)	(57)		41
Net income	$ 249		$ 1,226
Earnings per common share
Basic (in dollars per share)	$ 0.33		$ 1.61
Diluted (in dollars per share)	$ 0.32		$ 1.59
Assets
Accounts receivable, net	$ 637		$ 637			918
Software development	350		350			367
Other current assets	519		519			476
Deferred income taxes, net	262		262			459
Other assets	469		469			440
Liabilities and Shareholders’ Equity
Deferred revenues	1,077		1,077			1,929
Accrued expenses and other liabilities	1,056		1,056
Other liabilities	1,005		1,005			1,132
Shareholders’ equity	10,632		10,632			$ 9,462
Calculated under Revenue Guidance in Effect before Topic 606 | Product sales
Net revenues
Net revenues	269		1,593
Calculated under Revenue Guidance in Effect before Topic 606 | Product costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	126		438
Calculated under Revenue Guidance in Effect before Topic 606 | Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	24		232
Calculated under Revenue Guidance in Effect before Topic 606 | Subscription, licensing, and other revenues
Net revenues
Net revenues	1,226		3,645
Calculated under Revenue Guidance in Effect before Topic 606 | Game operations and distribution costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	257		777
Calculated under Revenue Guidance in Effect before Topic 606 | Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	109		278
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09
Net revenues
Net revenues	17		(119)
Cost of revenues—product sales and subscription, licensing, and other revenues:
Product development	0		0
Sales and marketing	0		1
General and administrative	0		0
Total costs and expenses	(3)		(39)
Operating income	20		(80)
Interest and other expense (income), net	0		0
Loss on extinguishment of debt	0		0
Income before income tax expense (benefit)	20		(80)
Income tax expense (benefit)	9		(16)
Net income	$ 11		$ (64)
Earnings per common share
Basic (in dollars per share)	$ 0.01		$ (0.08)
Diluted (in dollars per share)	$ 0.02		$ (0.08)
Assets
Accounts receivable, net	$ 4		$ 4		3
Software development	(2)		(2)		(20)
Other current assets	(18)		(18)		(35)
Deferred income taxes, net	(19)		(19)		(32)
Other assets	(15)		(15)		4
Liabilities and Shareholders’ Equity
Deferred revenues	(60)		(60)		(194)
Accrued expenses and other liabilities	(3)		(3)
Other liabilities	(14)		(14)		23
Shareholders’ equity	27		27		$ 91
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Product sales
Net revenues
Net revenues	(6)		(146)
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Product costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	1		(22)
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	(4)		(18)
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Subscription, licensing, and other revenues
Net revenues
Net revenues	23		27
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Game operations and distribution costs
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	0		0
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | Software royalties, amortization, and intellectual property licenses
Cost of revenues—product sales and subscription, licensing, and other revenues:
Cost of revenues	$ 0		$ 0

Inventories, Net (Details)

Inventories, Net (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 161	$ 45
Purchased parts and components	13	1
Inventories, net	174	46
Inventory reserves	$ 23	$ 36

Software Development and Inte_3

Software Development and Intellectual Property Licenses (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Software development and intellectual property licenses:
Internally-developed software costs	$ 356		$ 356		$ 270
Payments made to third-party software developers	166		166		183
Total software development costs	522		522		$ 453
Amortization:
Amortization of capitalized software development costs and intellectual property licenses	$ 33	$ 34	$ 242	$ 206

Intangible Assets, Net - Schedu

Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	$ 2,445		$ 2,445		$ 2,445
Accumulated amortization, definite-lived intangible assets	(2,052)		(2,052)		(1,772)
Net carrying amount, definite-lived intangible assets	393		393		673
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	433		433		433
Total intangible assets, net	826		826		1,106
Amortization Expense Disclosure
Amortization expense	84	$ 188	280	$ 573
Activision trademark
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	386		386		386
Acquired trade names
Indefinite Lived Intangible Assets
Net carrying amount, indefinite-lived intangible assets	47		47		47
Internally-developed franchises
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	1,154		1,154		1,154
Accumulated amortization, definite-lived intangible assets	(987)		(987)		(869)
Net carrying amount, definite-lived intangible assets	167		$ 167		$ 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		$ 601
Accumulated amortization, definite-lived intangible assets	(413)		(413)		(301)
Net carrying amount, definite-lived intangible assets	188		$ 188		$ 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		$ 617
Accumulated amortization, definite-lived intangible assets	(617)		(617)		(573)
Net carrying amount, definite-lived intangible assets	0		0		44
Acquired trade names
Finite-Lived Intangible Assets
Gross carrying amount, definite-lived intangible assets	54		54		54
Accumulated amortization, definite-lived intangible assets	(21)		(21)		(16)
Net carrying amount, definite-lived intangible assets	33		$ 33		$ 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		$ 19
Accumulated amortization, definite-lived intangible assets	(14)		(14)		(13)
Net carrying amount, definite-lived intangible assets	$ 5		$ 5		$ 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 - Sche_2

Intangible Assets, Net - Schedule of Future Amortization (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Definite-lived intangible assets, future amortization expense disclosure
2018 (remaining three months)	$ 91
2,019	210
2,020	69
2,021	11
2,022	7
Thereafter	5
Net carrying amount, definite-lived intangible assets	$ 393	$ 673

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Goodwill [Line Items]
Goodwill	$ 9,763	$ 9,763
Activision
Goodwill [Line Items]
Goodwill	6,898	6,898
Blizzard
Goodwill [Line Items]
Goodwill	190	190
King
Goodwill [Line Items]
Goodwill	$ 2,675	$ 2,675

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	$ 3,249	$ 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	3,238	4,499
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	11	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	3,087	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	35	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	3,087	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	35	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	116	55
Other current assets | Foreign currency forward contracts | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	11
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	116	55
Other current assets | 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 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 | Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets at fair value	11
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 | 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 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	(5)
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	(4)	(5)
Accrued expenses and other liabilities | 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 liabilities at fair value	0
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 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities at fair value	(5)
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	(4)	(5)
Accrued expenses and other liabilities | 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 liabilities at fair value	0
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		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Net revenues	$ 1,512	$ 1,618	$ 5,119	$ 4,974
Foreign currency forward contracts | Cash Flow Hedging | Reclassification out of Accumulated Other Comprehensive Income
Derivatives, Fair Value [Line Items]
Net revenues	3	$ (2)	(11)	$ 7
Foreign currency forward contracts | Designated as Hedging Instrument | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Deferred Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months			3
Notional amount	843		843		$ 521
Fair value gain (loss)	7		$ 7		(5)
Contract maturity (or less)			15 months
Deferred cash flow hedge gain (loss) in AOCI	3		$ 3
Foreign currency forward contracts | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Notional amount	119		119		0
Fair value gain (loss)	$ (5)		$ (5)		$ 0

Fair Value Measurements Fair Va

Fair Value Measurements Fair Value Measurements - Non-Recurring Basis (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Nonrecurring
Fair Value Measurements on a Non-Recurring Basis [Line Items]
Asset impairment charges	$ 0	$ 0	$ 0	$ 0

Deferred Revenue (Details)

Deferred Revenue (Details) - USD ($) $ in Billions	9 Months Ended
	Sep. 30, 2018	Jan. 01, 2018
Revenue from Contract with Customer [Abstract]
Deferred revenues	$ 1	$ 1.8
Revenue recognized included in beginning deferred revenue	1.6
Contracted not recognized revenue	$ 2.2
Revenue, Performance Obligation, Description of Timing	We expect to recognize a significant majority of this balance as revenue over the next 12 months, and the remainder thereafter.

Debt - Credit Facilities (Detai

Debt - Credit Facilities (Details) - USD ($) $ in Millions	Aug. 24, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Line of Credit Facility [Line Items]
Amount outstanding		$ 2,700		$ 4,440
Repayment of long-term debt		1,740	$ 4,251
Revolver
Line of Credit Facility [Line Items]
Maximum borrowing capacity				250
Revolver | Credit Agreement, Seventh Amendment
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,500
Long-term Line of Credit		$ 0
Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, covenant, consolidated total net debt ratio, maximum		375.00%
Debt instrument, covenant, consolidated total net debt ratio, qualifying acquisition		425.00%
Debt instrument, covenant, consolidated total assets ratio, maximum		7.50%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | Federal Funds Effective Swap Rate
Line of Credit Facility [Line Items]
Debt instrument, base rate margin		0.50%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, base rate margin		1.00%
Debt instrument, variable rate, interest floor		0.00%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | London Interbank Offered Rate (LIBOR) | Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.875%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | London Interbank Offered Rate (LIBOR) | Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		1.375%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | Base Rate
Line of Credit Facility [Line Items]
Debt instrument, variable rate, interest floor		1.00%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | Base Rate | Minimum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.00%
Line of Credit | Revolver | Credit Agreement, Seventh Amendment | Base Rate | Maximum
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.375%
Line of Credit | 2017 TLA
Line of Credit Facility [Line Items]
Amount outstanding				$ 990
Repayment of long-term debt	990
Write-off of unamortized discount and financing costs	$ 7

Debt - Unsecured Senior Notes,

Debt - Unsecured Senior Notes, Interest Expense and Financing Costs, and Additional Information (Details) - USD ($) $ in Millions	Aug. 16, 2018	Feb. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Amount outstanding			$ 2,700		$ 2,700		$ 4,440
Loss on extinguishment of debt			40	$ 0	40	$ 12
Interest expense			32	39	113	110
Amortization of financing costs and discounts			1	$ 2	5	$ 10
Total Unsecured Senior Notes
Debt Instrument [Line Items]
Interest payable			14		14		28
Unsecured Debt | 2023 Notes
Debt Instrument [Line Items]
Amount outstanding							$ 750
Interest rate							6.125%
Redemption percentage of aggregate principal amount plus a make-whole premium	100.00%
Loss on extinguishment of debt					33
Premium payment					25
Write-off of unamortized discount and financing costs					8
Unsecured Debt | 2023 Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes							$ 795
Unsecured Debt | 2021 Notes
Debt Instrument [Line Items]
Amount outstanding			$ 650		$ 650		$ 650
Interest rate			2.30%		2.30%		2.30%
Unsecured Debt | 2026 Notes
Debt Instrument [Line Items]
Amount outstanding			$ 850		$ 850		$ 850
Interest rate			3.40%		3.40%		3.40%
Unsecured Debt | 2026 Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes			$ 809		$ 809
Unsecured Debt | 2022 Notes
Debt Instrument [Line Items]
Amount outstanding			$ 400		$ 400		$ 400
Interest rate			2.60%		2.60%		2.60%
Unsecured Debt | 2027 Notes
Debt Instrument [Line Items]
Amount outstanding			$ 400		$ 400		$ 400
Interest rate			3.40%		3.40%		3.40%
Unsecured Debt | 2027 Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes			$ 379		$ 379
Unsecured Debt | 2047 Notes
Debt Instrument [Line Items]
Amount outstanding			$ 400		$ 400		$ 400
Interest rate			4.50%		4.50%		4.50%
Unsecured Debt | 2047 Notes | Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Fair value of notes			$ 380		$ 380		$ 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	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Gross Carrying Amount	$ 2,700	$ 4,440
Unamortized Discount and Deferred Financing Costs	(30)	(50)
Net Carrying Amount	2,670	4,390
Line of Credit | 2017 TLA
Debt Instrument [Line Items]
Gross Carrying Amount		990
Unamortized Discount and Deferred Financing Costs		(8)
Net Carrying Amount		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	(3)	(4)
Net Carrying Amount	397	396
Unsecured Debt | 2023 Notes
Debt Instrument [Line Items]
Gross Carrying Amount		750
Unamortized Discount and Deferred Financing Costs		(9)
Net Carrying Amount		741
Unsecured Debt | 2026 Notes
Debt Instrument [Line Items]
Gross Carrying Amount	850	850
Unamortized Discount and Deferred Financing Costs	(8)	(9)
Net Carrying Amount	842	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	Sep. 30, 2018	Dec. 31, 2017
Maturities of Long-term Debt [Abstract]
2018 (remaining three months)	$ 0
2,019	0
2,020	0
2,021	650
2,022	400
Thereafter	1,650
Gross Carrying Amount	$ 2,700	$ 4,440

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 9,462
Cumulative impact from adoption of new revenue accounting standard			$ 3
Other comprehensive income (loss) before reclassifications	11	$ (20)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	11	7
Ending balance	10,659
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	(7)	20
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	16
Ending balance	(627)	(623)
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	14	(38)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	11	(7)
Ending balance	10	(16)
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	4	(2)
Amounts reclassified from accumulated other comprehensive income (loss) into earnings	0	(2)
Ending balance	4	(3)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(638)	(629)
Ending balance	$ (613)	$ (642)

Operating Segments and Geogra_3

Operating Segments and Geographic Region (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment			3
Segment Reporting Information [Line Items]
Net revenues	$ 1,512	$ 1,618	$ 5,119	$ 4,974
Net effect from recognition (deferral) of deferred net revenues	146		(692)
Segment revenues	1,658		4,427
Operating income	265	257	1,294	1,088
Amortization of intangible assets	(84)	(188)	(280)	(573)
Interest and other expense (income), net	13	37	67	109
Loss on extinguishment of debt	40	0	40	12
Income before income tax expense (benefit)	212	220	1,187	967
Long-lived assets	281		281		$ 294
Digital online channels
Segment Reporting Information [Line Items]
Net revenues	1,276	1,354	3,998	4,048
Net effect from recognition (deferral) of deferred net revenues	159		(160)
Segment revenues	1,435		3,838
Retail channels
Segment Reporting Information [Line Items]
Net revenues	76	168	764	698
Net effect from recognition (deferral) of deferred net revenues	(14)		(546)
Segment revenues	62		218
Other
Segment Reporting Information [Line Items]
Net revenues	160	96	357	228
Net effect from recognition (deferral) of deferred net revenues	1		14
Segment revenues	161		371
Console
Segment Reporting Information [Line Items]
Net revenues	347	527	1,730	1,710
Net effect from recognition (deferral) of deferred net revenues	20		(720)
Segment revenues	367		1,010
PC
Segment Reporting Information [Line Items]
Net revenues	482	461	1,452	1,534
Net effect from recognition (deferral) of deferred net revenues	117		20
Segment revenues	599		1,472
Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	523	534	1,580	1,502
Net effect from recognition (deferral) of deferred net revenues	8		(6)
Segment revenues	531		1,574
Other
Segment Reporting Information [Line Items]
Net revenues	160	96	357	228
Net effect from recognition (deferral) of deferred net revenues	1		14
Segment revenues	161		371
Americas
Segment Reporting Information [Line Items]
Net revenues	774	$ 798	2,740	$ 2,586
Net effect from recognition (deferral) of deferred net revenues	76		(399)
Segment revenues	850		2,341
Long-lived assets	$ 202		$ 202		197
US | Revenues | Geographic Concentration Risk
Segment Reporting Information [Line Items]
Revenues as a percentage of consolidated net revenues	46.00%	43.00%	47.00%	46.00%
EMEA
Segment Reporting Information [Line Items]
Net revenues	$ 534	$ 593	$ 1,774	$ 1,684
Net effect from recognition (deferral) of deferred net revenues	60		(242)
Segment revenues	594		1,532
Long-lived assets	$ 61		$ 61		75
UK | Revenues | Geographic Concentration Risk
Segment Reporting Information [Line Items]
Revenues as a percentage of consolidated net revenues	13.00%	12.00%	11.00%	10.00%
Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	$ 204	$ 227	$ 605	$ 704
Net effect from recognition (deferral) of deferred net revenues	10		(51)
Segment revenues	214		554
Long-lived assets	18		18		$ 22
Reportable segments
Segment Reporting Information [Line Items]
Segment revenues	1,538	1,818	4,195	4,312
Operating income	485	637	1,275	1,461
Reportable segments | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	1,530	1,818	4,181	4,312
Reportable segments | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	8	0	14	0
Reportable segments | Activision
Segment Reporting Information [Line Items]
Net revenues	352		1,817
Net effect from recognition (deferral) of deferred net revenues	45		(770)
Segment revenues	397	759	1,047	1,291
Operating income	112	261	288	371
Reportable segments | Activision | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	397	759	1,047	1,291
Reportable segments | Activision | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	0	0	0	0
Reportable segments | Activision | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	299		1,110
Net effect from recognition (deferral) of deferred net revenues	57		(234)
Segment revenues	356		876
Reportable segments | Activision | Retail channels
Segment Reporting Information [Line Items]
Net revenues	53		707
Net effect from recognition (deferral) of deferred net revenues	(12)		(536)
Segment revenues	41		171
Reportable segments | Activision | Other
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Reportable segments | Activision | Console
Segment Reporting Information [Line Items]
Net revenues	307		1,597
Net effect from recognition (deferral) of deferred net revenues	29		(695)
Segment revenues	336		902
Reportable segments | Activision | PC
Segment Reporting Information [Line Items]
Net revenues	40		208
Net effect from recognition (deferral) of deferred net revenues	16		(76)
Segment revenues	56		132
Reportable segments | Activision | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	5		12
Net effect from recognition (deferral) of deferred net revenues	0		1
Segment revenues	5		13
Reportable segments | Activision | Other
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Reportable segments | Activision | Americas
Segment Reporting Information [Line Items]
Net revenues	214		1,074
Net effect from recognition (deferral) of deferred net revenues	33		(439)
Segment revenues	247		635
Reportable segments | Activision | EMEA
Segment Reporting Information [Line Items]
Net revenues	109		613
Net effect from recognition (deferral) of deferred net revenues	8		(287)
Segment revenues	117		326
Reportable segments | Activision | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	29		130
Net effect from recognition (deferral) of deferred net revenues	4		(44)
Segment revenues	33		86
Reportable segments | Blizzard
Segment Reporting Information [Line Items]
Net revenues	538		1,536
Net effect from recognition (deferral) of deferred net revenues	97		70
Segment revenues	635	531	1,606	1,539
Operating income	189	168	444	552
Reportable segments | Blizzard | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	627	531	1,592	1,539
Reportable segments | Blizzard | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	8	0	14	0
Reportable segments | Blizzard | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	480		1,355
Net effect from recognition (deferral) of deferred net revenues	101		79
Segment revenues	581		1,434
Reportable segments | Blizzard | Retail channels
Segment Reporting Information [Line Items]
Net revenues	23		57
Net effect from recognition (deferral) of deferred net revenues	(2)		(10)
Segment revenues	21		47
Reportable segments | Blizzard | Other
Segment Reporting Information [Line Items]
Net revenues	35		124
Net effect from recognition (deferral) of deferred net revenues	(2)		1
Segment revenues	33		125
Reportable segments | Blizzard | Console
Segment Reporting Information [Line Items]
Net revenues	40		133
Net effect from recognition (deferral) of deferred net revenues	(9)		(25)
Segment revenues	31		108
Reportable segments | Blizzard | PC
Segment Reporting Information [Line Items]
Net revenues	414		1,140
Net effect from recognition (deferral) of deferred net revenues	101		96
Segment revenues	515		1,236
Reportable segments | Blizzard | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	49		139
Net effect from recognition (deferral) of deferred net revenues	7		(2)
Segment revenues	56		137
Reportable segments | Blizzard | Other
Segment Reporting Information [Line Items]
Net revenues	35		124
Net effect from recognition (deferral) of deferred net revenues	(2)		1
Segment revenues	33		125
Reportable segments | Blizzard | Americas
Segment Reporting Information [Line Items]
Net revenues	242		716
Net effect from recognition (deferral) of deferred net revenues	43		43
Segment revenues	285		759
Reportable segments | Blizzard | EMEA
Segment Reporting Information [Line Items]
Net revenues	172		497
Net effect from recognition (deferral) of deferred net revenues	48		34
Segment revenues	220		531
Reportable segments | Blizzard | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	124		323
Net effect from recognition (deferral) of deferred net revenues	6		(7)
Segment revenues	130		316
Reportable segments | King
Segment Reporting Information [Line Items]
Net revenues	505		1,547
Net effect from recognition (deferral) of deferred net revenues	1		(5)
Segment revenues	506	528	1,542	1,482
Operating income	184	208	543	538
Reportable segments | King | Net revenues from external customers
Segment Reporting Information [Line Items]
Segment revenues	506	528	1,542	1,482
Reportable segments | King | Intersegment net revenues
Segment Reporting Information [Line Items]
Segment revenues	0	0	0	0
Reportable segments | King | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	505		1,547
Net effect from recognition (deferral) of deferred net revenues	1		(5)
Segment revenues	506		1,542
Reportable segments | King | Retail channels
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Reportable segments | King | Other
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Reportable segments | King | Console
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Reportable segments | King | PC
Segment Reporting Information [Line Items]
Net revenues	36		118
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	36		118
Reportable segments | King | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	469		1,429
Net effect from recognition (deferral) of deferred net revenues	1		(5)
Segment revenues	470		1,424
Reportable segments | King | Other
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Reportable segments | King | Americas
Segment Reporting Information [Line Items]
Net revenues	309		945
Net effect from recognition (deferral) of deferred net revenues	0		(3)
Segment revenues	309		942
Reportable segments | King | EMEA
Segment Reporting Information [Line Items]
Net revenues	143		448
Net effect from recognition (deferral) of deferred net revenues	1		(2)
Segment revenues	144		446
Reportable segments | King | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	53		154
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	53		154
Non-reportable segments
Segment Reporting Information [Line Items]
Net revenues	125		233
Net effect from recognition (deferral) of deferred net revenues	3		13
Segment revenues	128	84	246	204
Non-reportable segments | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Non-reportable segments | Retail channels
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Non-reportable segments | Other
Segment Reporting Information [Line Items]
Net revenues	125		233
Net effect from recognition (deferral) of deferred net revenues	3		13
Segment revenues	128		246
Non-reportable segments | Console
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Non-reportable segments | PC
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Non-reportable segments | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Non-reportable segments | Other
Segment Reporting Information [Line Items]
Net revenues	125		233
Net effect from recognition (deferral) of deferred net revenues	3		13
Segment revenues	128		246
Non-reportable segments | Americas
Segment Reporting Information [Line Items]
Net revenues	13		13
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	13		13
Non-reportable segments | EMEA
Segment Reporting Information [Line Items]
Net revenues	112		220
Net effect from recognition (deferral) of deferred net revenues	3		13
Segment revenues	115		233
Non-reportable segments | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Elimination of intersegment revenues
Segment Reporting Information [Line Items]
Net revenues	(8)		(14)
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	(8)	0	(14)	0
Elimination of intersegment revenues | Digital online channels
Segment Reporting Information [Line Items]
Net revenues	(8)		(14)
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	(8)		(14)
Elimination of intersegment revenues | Retail channels
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Elimination of intersegment revenues | Other
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Elimination of intersegment revenues | Console
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Elimination of intersegment revenues | PC
Segment Reporting Information [Line Items]
Net revenues	(8)		(14)
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	(8)		(14)
Elimination of intersegment revenues | Mobile and ancillary
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Elimination of intersegment revenues | Other
Segment Reporting Information [Line Items]
Net revenues	0		0
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	0		0
Elimination of intersegment revenues | Americas
Segment Reporting Information [Line Items]
Net revenues	(4)		(8)
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	(4)		(8)
Elimination of intersegment revenues | EMEA
Segment Reporting Information [Line Items]
Net revenues	(2)		(4)
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	(2)		(4)
Elimination of intersegment revenues | Asia Pacific
Segment Reporting Information [Line Items]
Net revenues	(2)		(2)
Net effect from recognition (deferral) of deferred net revenues	0		0
Segment revenues	(2)		(2)
Reconciling items
Segment Reporting Information [Line Items]
Net effect from recognition (deferral) of deferred net revenues	(146)	(284)	692	458
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	(89)	(132)	468	370
Share-based compensation expense	(55)	(47)	(166)	(120)
Amortization of intangible assets	(83)	(187)	(279)	(571)
Fees and other expenses related to the acquisition of King	0	(3)	0	(12)
Restructuring costs	0	0	0	(11)
Other non-cash charges	0	1	0	(14)
Reconciling items | Other segments
Segment Reporting Information [Line Items]
Operating income	$ 7	$ (12)	$ (4)	$ (15)

Income Taxes (Details)

Income Taxes (Details) € in Millions, $ in Millions, kr in Billions	1 Months Ended	3 Months Ended			6 Months Ended	9 Months Ended
	Oct. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Oct. 25, 2018USD ($)	Oct. 25, 2018SEK (kr)	Dec. 28, 2017USD ($)	Dec. 28, 2017EUR (€)
Income Tax [Line Items]
Reduction in unrecognized tax benefits resulting from Closing Agreement			$ 437
Valuation allowance			57
Additional tax expense related to Transition Tax		$ 80	(34)
Income tax expense (benefit)		$ (48)		$ 32		$ 25	$ 109
Effective tax rate (in percent)		(23.00%)		15.00%		2.00%	11.00%
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										$ 660	€ 571
Subsequent Event | Federal
Income Tax [Line Items]
Additional federal and state cash payments related to Closing Agreement	$ 334
Subsequent Event | Swedish Tax Agency
Income Tax [Line Items]
Total assessment, including penalties and interest, not recorded								$ 400	kr 3.5
Scenario, Forecast
Income Tax [Line Items]
Additional federal and state cash payments related to Closing Agreement					$ 345
Settlement from IRS Closing Agreement
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement			70
Other Indirect Tax Benefits Due to IRS Closing Agreement
Income Tax [Line Items]
Tax expense (benefit) related to tax settlement			$ (185)

Computation of Basic_Diluted _3

Computation of Basic/Diluted Earnings Per Common Share - Computation EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Consolidated net income	$ 260	$ 188	$ 1,162	$ 858
Denominator:
Denominator for basic earnings per common share - weighted-average common shares outstanding (in shares)	763	755	761	753
Employee stock options and awards (in shares)	8	11	10	11
Denominator for diluted earnings per common share - weighted-average common shares outstanding plus dilutive common shares under treasury stock method (in shares)	771	766	771	764
Basic earnings per common share (in dollars per share)	$ 0.34	$ 0.25	$ 1.53	$ 1.14
Diluted earnings per common share (in dollars per share)	$ 0.34	$ 0.25	$ 1.51	$ 1.12

Computation of Basic_Diluted _4

Computation of Basic/Diluted Earnings Per Common Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Performance shares not included in dilutive shares (performance measures not yet met)	6	9	6	8
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings per share (in shares)	1	1	2	1

Capital Transactions - Repurcha

Capital Transactions - Repurchase Program (Details) - Share Repurchase Program 2017 - USD ($)	20 Months Ended
	Sep. 30, 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	May 09, 2018	Feb. 01, 2018	May 10, 2017	Feb. 02, 2017	Sep. 30, 2018	Sep. 30, 2017
Dividends
Dividends per common share (in dollars per share)		$ 0.34		$ 0.30	$ 0.34
Cash dividend payment	$ 259		$ 226		$ 259	$ 226

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