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Operating Segments and Geographic Region (Tables)
12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Schedule of operating segments and reconciliations of total net revenues and total segment operating income to consolidated net revenues from external customers and consolidated income before income tax expense
Information on the reportable segments net revenues and segment operating income are presented below (amounts in millions):

 
 
Year Ended December 31, 2017
 
 
Activision
 
Blizzard
 
King
 
Total
Segment Revenues
 
 
 
 
 
 
 
 
Net revenues from external customers
 
$
2,628

 
$
2,120

 
$
1,998

 
$
6,746

Intersegment net revenues (1)
 

 
19

 

 
19

Segment net revenues
 
$
2,628

 
$
2,139

 
$
1,998

 
$
6,765

 
 
 
 
 
 
 
 
 
Segment operating income
 
$
1,005

 
$
712

 
$
700

 
$
2,417

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
Activision
 
Blizzard
 
King
 
Total
Segment Revenues
 
 
 
 
 
 
 
 
Net revenues from external customers
 
$
2,220

 
$
2,439

 
$
1,586

 
$
6,245

Intersegment net revenues (1)
 

 

 

 

Segment net revenues
 
$
2,220

 
$
2,439

 
$
1,586

 
$
6,245

 
 
 
 
 
 
 
 
 
Segment operating income
 
$
788

 
$
995

 
$
537

 
$
2,320

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
Activision
 
Blizzard
 
King
 
Total
Segment Revenues
 
 
 
 
 
 
 
 
Net revenues from external customers
 
$
2,700

 
$
1,565

 
$

 
$
4,265

Intersegment net revenues (1)
 

 

 

 

Segment net revenues
 
$
2,700

 
$
1,565

 
$

 
$
4,265

 
 
 
 
 
 
 
 
 
Segment operating income
 
$
868

 
$
561

 
$

 
$
1,429



(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 from external customers and consolidated income before income tax expense are presented in the table below (amounts in millions):
 
 
Years Ended December 31,
 
 
2017
 
2016
 
2015
Reconciliation to consolidated net revenues:
 
 
 
 
 
 
Segment net revenues
 
$
6,765

 
$
6,245

 
$
4,265

Revenues from other segments (1)
 
410

 
354

 
356

Net effect from recognition (deferral) of deferred net revenues
 
(139
)
 
9

 
43

Elimination of intersegment revenues (2)
 
(19
)
 

 

Consolidated net revenues
 
$
7,017

 
$
6,608

 
$
4,664

 
 
 
 
 
 
 
Reconciliation to consolidated income before income tax expense:
 
 
 
 
 
 
Segment operating income
 
$
2,417

 
$
2,320

 
$
1,429

Operating (loss) income from other segments (1)
 
(19
)
 
14

 
37

Net effect from recognition (deferral) of deferred net revenues and related cost of revenues
 
(71
)
 
(10
)
 
(39
)
Share-based compensation expense
 
(178
)
 
(159
)
 
(92
)
Amortization of intangible assets
 
(757
)
 
(706
)
 
(11
)
Fees and other expenses related to the King Acquisition (3)
 
(15
)
 
(47
)
 
(5
)
Restructuring costs (4)
 
(15
)
 

 

Other non-cash charges (5)
 
(14
)
 

 

Discrete tax-related items (6)
 
(39
)
 

 

Consolidated operating income
 
1,309

 
1,412

 
1,319

Interest and other expense (income), net
 
146

 
214

 
198

Loss on extinguishment of debt
 
12

 
92

 

Consolidated income before income tax expense
 
$
1,151

 
$
1,106

 
$
1,121


(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 King Acquisition 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.

(6)
Reflects the impact of other unusual or unique tax-related items and activities.
Schedule of net revenues by distribution channels
Net revenues by distribution channels were as follows (amounts in millions):
 
Years Ended December 31,
 
2017
 
2016
 
2015
Net revenues by distribution channel:
 

 
 

 
 

Digital online channels (1)
$
5,479

 
$
4,865

 
$
2,502

Retail channels
1,033

 
1,386

 
1,806

Other (2)
505

 
357

 
356

Total consolidated net revenues
$
7,017

 
$
6,608

 
$
4,664

(1)
Include revenues from digitally-distributed subscriptions, licensing royalties, value-added services, downloadable content, microtransactions, and products.
(2)
Include revenues from our Studios and Distribution businesses, as well as revenues from MLG and the Overwatch League.
Schedule of net revenues from external customers by geographic region
Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region were as follows (amounts in millions):
 
Years Ended December 31,
 
2017
 
2016
 
2015
Net revenues by geographic region:
 

 
 

 
 

Americas
$
3,607

 
$
3,423

 
$
2,409

EMEA (1)
2,464

 
2,221

 
1,741

Asia Pacific
946

 
964

 
514

Total consolidated net revenues
$
7,017

 
$
6,608

 
$
4,664


(1)
Consists of the Europe, Middle East, and Africa geographic regions.
Schedule of net revenues by platform
Net revenues by platform were as follows (amounts in millions):
 
Years Ended December 31,
 
2017
 
2016
 
2015
Net revenues by platform:
 

 
 

 
 

Console
$
2,389

 
$
2,453

 
$
2,391

PC
2,042

 
2,124

 
1,499

Mobile and ancillary (1)
2,081

 
1,674

 
418

Other (2)
505

 
357

 
356

Total consolidated net revenues
$
7,017

 
$
6,608

 
$
4,664



(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.
Long-lived assets by geographic region
Long-lived assets by geographic region were as follows (amounts in millions):
 
At December 31,
 
2017
 
2016
 
2015
Long-lived assets* by geographic region:
 

 
 

 
 

Americas
$
197

 
$
154

 
$
138

EMEA
75

 
87

 
42

Asia Pacific
22

 
17

 
9

Total long-lived assets by geographic region
$
294

 
$
258

 
$
189

*
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.