Operating Segments and Geographic Region (Tables)

6 Months Ended

Jun. 30, 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 and 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 for the three and six months ended June 30, 2017 and 2016 are presented below (amounts in millions):

	For the Three Months Ended June 30,
	2017		2016			2017			2016
	Net revenues					Operating income and income before income tax expense
Activision	$	316	$	332		$	87		$	88
Blizzard	566		741			225			329
King	480		484			164			176
Reportable segments total	1,362		1,557			476			593
Reconciliation to consolidated net revenues / consolidated income before income tax expense:
Other segments (1)	56		52			(5		)	(5		)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	213		(39		)	105			(108		)
Share-based compensation expense	—		—			(39		)	(41		)
Amortization of intangible assets	—		—			(194		)	(203		)
Fees and other expenses related to the King Acquisition (2)	—		—			(5		)	(4		)
Other non-cash charges (4)	—		—			1			—
Consolidated net revenues / operating income	$	1,631	$	1,570		$	339		$	232
Interest and other expense (income), net						46			65
Consolidated income before income tax expense						$	293		$	167
	For the Six Months Ended June 30,
	2017		2016			2017			2016
	Net revenues					Operating income and income before income tax expense
Activision	$	532	$	692		$	111		$	187
Blizzard	1,009		1,038			384			413
King	954		691			330			243
Reportable segments total	2,495		2,421			825			843
Reconciliation to consolidated net revenues / consolidated income before income tax expense:
Other segments (1)	119		96			(3		)	(3		)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	742		508			501			261
Share-based compensation expense	—		—			(73		)	(85		)
Amortization of intangible assets	—		—			(384		)	(285		)
Fees and other expenses related to the King Acquisition (2)	—		—			(9		)	(38		)
Restructuring costs (3)	—		—			(11		)	—
Other non-cash charges (4)	—		—			(15		)	—
Consolidated net revenues / operating income	$	3,356	$	3,025		$	831		$	693
Interest and other expense (income), net						85			117
Consolidated income before income tax expense						$	746		$	576

(1) Other segments include other income and expenses from operating segments managed outside the reportable segments, including our Studios and Distribution businesses. Other segments also include unallocated corporate income and expenses.

(2) Reflects fees and other expenses, such as legal, banking and professional services fees, primarily related to the King Acquisition and associated integration activities, inclusive of related debt financings.

(3) Reflects restructuring charges incurred, primarily severance costs.

(4) 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 from external customers by geographic region

Geographic information presented below for the three and six months ended June 30, 2017 and 2016, is based on the location of the paying customer. Net revenues from external customers by geographic region were as follows (amounts in millions):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
Net revenues by geographic region:
Americas	$	858	$	860	$	1,787	$	1,613
EMEA (1)	538		507		1,092		1,028
Asia Pacific	235		203		477		384
Total consolidated net revenues	$	1,631	$	1,570	$	3,356	$	3,025

(1) EMEA 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):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
Net revenues by platform:
Console	$	568	$	650	$	1,182	$	1,415
PC	508		411		1,072		811
Mobile and ancillary (1)	493		454		969		697
Other (2)	62		55		133		102
Total consolidated net revenues	$	1,631	$	1,570	$	3,356	$	3,025

(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.

Long-lived assets by geographic region

Long-lived assets by geographic region at June 30, 2017 and December 31, 2016, were as follows (amounts in millions):

	At June 30, 2017		At December 31, 2016
Long-lived assets (1) by geographic region:
Americas	$	153	$	154
EMEA	76		87
Asia Pacific	17		17
Total long-lived assets by geographic region	$	246	$	258

(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.