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Operating Segments and Geographic Region (Tables)
3 Months Ended
Mar. 31, 2021
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 March 31, 2021 and 2020, are presented below (amounts in millions):

Three Months Ended March 31, 2021
ActivisionBlizzardKingTotal
Segment Net Revenues
Net revenues from external customers$891 $458 $609 $1,958 
Intersegment net revenues (1)— 25 — 25 
Segment net revenues$891 $483 $609 $1,983 
Segment operating income$442 $208 $203 $853 
Three Months Ended March 31, 2020
ActivisionBlizzardKingTotal
Segment Net Revenues
Net revenues from external customers$519 $437 $498 $1,454 
Intersegment net revenues (1)— 15 — 15 
Segment net revenues$519 $452 $498 $1,469 
Segment operating income$184 $197 $156 $537 

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

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

Three Months Ended March 31,
20212020
Reconciliation to consolidated net revenues:
Segment net revenues$1,983 $1,469 
Revenues from non-reportable segments (1)
108 68 
Net effect from recognition (deferral) of deferred net revenues (2)
209 266 
Elimination of intersegment revenues (3)
(25)(15)
Consolidated net revenues
$2,275 $1,788 
Reconciliation to consolidated income before income tax expense:
Segment operating income
$853 $537 
Operating income (loss) from non-reportable segments (1)
(4)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)
132 171 
Share-based compensation expense
(151)(43)
Amortization of intangible assets
(5)(33)
Restructuring and related costs (Note 11)
(30)(23)
Consolidated operating income
795 612 
Interest and other expense (income), net
30 
Consolidated income before income tax expense
$765 $604 
(1)Includes other income and expenses outside of our reportable segments, including our Distribution business and unallocated corporate income and expenses.

(2)Reflects the net effect from recognition (deferral) of deferred net revenues, along with related cost of revenues, on certain of our online-enabled products.

(3)Intersegment revenues reflect licensing and service fees charged between segments.
Schedule of net revenues by distribution channels
Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the three months ended March 31, 2021 and 2020, were as follows (amounts in millions):

Three Months Ended March 31, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$965 $461 $605 $— $(25)$2,006 
Retail channels143 — — — 149 
Other (2)15 — 102 — 120 
Total consolidated net revenues$1,123 $470 $605 $102 $(25)$2,275 
Change in deferred revenues:
Digital online channels (1)$(162)$17 $$— $— $(141)
Retail channels(70)(4)— — — (74)
Other (2)— — — — 
Total change in deferred revenues$(232)$13 $$$— $(209)
Segment net revenues:
Digital online channels (1)$803 $478 $609 $— $(25)$1,865 
Retail channels73 — — — 75 
Other (2)15 — 108 — 126 
Total segment net revenues$891 $483 $609 $108 $(25)$2,066 
Three Months Ended March 31, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$548 $409 $499 $— $(15)$1,441 
Retail channels212 — — — 221 
Other (2)20 31 — 75 — 126 
Total consolidated net revenues$780 $449 $499 $75 $(15)$1,788 
Change in deferred revenues:
Digital online channels (1)$(93)$$(1)$— $— $(86)
Retail channels(168)(4)— — — (172)
Other (2)— (1)— (7)— (8)
Total change in deferred revenues$(261)$$(1)$(7)$— $(266)
Segment net revenues:
Digital online channels (1)$455 $417 $498 $— $(15)$1,355 
Retail channels44 — — — 49 
Other (2)20 30 — 68 — 118 
Total segment net revenues$519 $452 $498 $68 $(15)$1,522 

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

(2)    Net revenues from “Other” include revenues from our Distribution business, the Overwatch League, and the Call of Duty League.

(3)    Intersegment revenues reflect licensing and service fees charged between segments.
Schedule of net revenues by geographic region
Geographic information presented below is based on the location of the paying customer. Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended March 31, 2021 and 2020, were as follows (amounts in millions):

Three Months Ended March 31, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$725 $210 $386 $— $(14)$1,307 
EMEA (1)311 167 160 102 (9)731 
Asia Pacific87 93 59 — (2)237 
Total consolidated net revenues$1,123 $470 $605 $102 $(25)$2,275 
Change in deferred revenues:
Americas$(131)$$$— $— $(121)
EMEA (1)(77)(1)— (65)
Asia Pacific(24)— — — (23)
Total change in deferred revenues$(232)$13 $$$— $(209)
Segment net revenues:
Americas$594 $215 $391 $— $(14)$1,186 
EMEA (1)234 174 159 108 (9)666 
Asia Pacific63 94 59 — (2)214 
Total segment net revenues$891 $483 $609 $108 $(25)$2,066 

Three Months Ended March 31, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$472 $172 $311 $— $(7)$948 
EMEA (1)239 121 136 75 (5)566 
Asia Pacific69 156 52 — (3)274 
Total consolidated net revenues$780 $449 $499 $75 $(15)$1,788 
Change in deferred revenues:
Americas$(146)$$$— $— $(143)
EMEA (1)(96)(1)(7)— (101)
Asia Pacific(19)(2)(1)— — (22)
Total change in deferred revenues$(261)$$(1)$(7)$— $(266)
Segment net revenues:
Americas$326 $174 $312 $— $(7)$805 
EMEA (1)143 124 135 68 (5)465 
Asia Pacific50 154 51 — (3)252 
Total segment net revenues$519 $452 $498 $68 $(15)$1,522 

(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 months ended March 31, 2021 and 2020, were as follows (amounts in millions):

Three Months Ended March 31, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$774 $25 $— $— $— $799 
PC201 422 24 — (25)622 
Mobile and ancillary (1)133 20 581 — — 734 
Other (2)15 — 102 — 120 
Total consolidated net revenues$1,123 $470 $605 $102 $(25)$2,275 
Change in deferred revenues:
Console$(167)$(6)$— $— $— $(173)
PC(61)17 (1)— — (45)
Mobile and ancillary (1)(4)— — 
Other (2)— — — — 
Total change in deferred revenues$(232)$13 $$$— $(209)
Segment net revenues:
Console$607 $19 $— $— $— $626 
PC140 439 23 — (25)577 
Mobile and ancillary (1)129 22 586 — — 737 
Other (2)15 — 108 — 126 
Total segment net revenues$891 $483 $609 $108 $(25)$2,066 
Three Months Ended March 31, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$567 $27 $— $— $— $594 
PC126 362 25 — (15)498 
Mobile and ancillary (1)67 29 474 — — 570 
Other (2)20 31 — 75 — 126 
Total consolidated net revenues$780 $449 $499 $75 $(15)$1,788 
Change in deferred revenues:
Console$(223)$(8)$— $— $— $(231)
PC(37)19 (1)— — (19)
Mobile and ancillary (1)(1)(7)— — — (8)
Other (2)— (1)— (7)— (8)
Total change in deferred revenues$(261)$$(1)$(7)$— $(266)
Segment net revenues:
Console$344 $19 $— $— $— $363 
PC89 381 24 — (15)479 
Mobile and ancillary (1)66 22 474 — — 562 
Other (2)20 30 — 68 — 118 
Total segment net revenues$519 $452 $498 $68 $(15)$1,522 

(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 physical merchandise and accessories.

(2)    Net revenues from “Other” primarily includes revenues from our Distribution business, the Overwatch League, and the Call of Duty League.

(3)    Intersegment revenues reflect licensing and service fees charged between segments.
Long-lived assets by geographic region
Long-lived assets by geographic region were as follows (amounts in millions):

At March 31, 2021At December 31, 2020
Long-lived assets (1) by geographic region:  
Americas$259 $270 
EMEA156 166 
Asia Pacific14 17 
Total long-lived assets by geographic region$429 $453 

(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 and lease right-of-use assets. All other long-term assets are not allocated by location.