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Operating Segments and Geographic Regions
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Operating Segments and Geographic Regions Operating Segments and Geographic Regions
We have three reportable segments—Activision, Blizzard, and King. 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 and related 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 June 30, 2021 and 2020, are presented below (amounts in millions):

Three Months Ended June 30, 2021
ActivisionBlizzardKingTotal
Segment Revenues
Net revenues from external customers$789 $411 $635 $1,835 
Intersegment net revenues (1)— 22 — 22 
Segment net revenues$789 $433 $635 $1,857 
Segment operating income$363 $141 $248 $752 
Three Months Ended June 30, 2020
ActivisionBlizzardKingTotal
Segment Revenues
Net revenues from external customers$993 $433 $553 $1,979 
Intersegment net revenues (1)— 28 — 28 
Segment net revenues$993 $461 $553 $2,007 
Segment operating income$559 $203 $212 $974 
Information on reportable segment net revenues and operating income for the six months ended June 30, 2021 and 2020, are presented below (amounts in millions):

Six Months Ended June 30, 2021
ActivisionBlizzardKingTotal
Segment Revenues
Net revenues from external customers$1,680 $869 $1,244 $3,793 
Intersegment net revenues (1)— 47 — 47 
Segment net revenues$1,680 $916 $1,244 $3,840 
Segment operating income$804 $349 $452 $1,605 
Six Months Ended June 30, 2020
ActivisionBlizzardKingTotal
Segment Revenues
Net revenues from external customers$1,512 $870 $1,051 $3,433 
Intersegment net revenues (1)— 44 — 44 
Segment net revenues$1,512 $914 $1,051 $3,477 
Segment operating income$743 $400 $367 $1,510 

(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 June 30,Six Months Ended June 30,
2021202020212020
Reconciliation to consolidated net revenues:
Segment net revenues$1,857 $2,007 $3,840 $3,477 
Revenues from non-reportable segments (1)
86 99 194 167 
Net effect from recognition (deferral) of deferred net revenues (2)
375 (146)584 119 
Elimination of intersegment revenues (3)
(22)(28)(47)(44)
Consolidated net revenues
$2,296 $1,932 $4,571 $3,719 
Reconciliation to consolidated income before income tax expense:
Segment operating income
$752 $974 $1,605 $1,510 
Operating income (loss) from non-reportable segments (1)(11)(11)(15)(7)
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)
276 (152)408 19 
Share-based compensation expense(43)(42)(194)(85)
Amortization of intangible assets
(2)(14)(7)(47)
Restructuring and related costs (Note 12)
(13)(6)(43)(29)
Consolidated operating income
959 749 1,754 1,361 
Interest and other expense (income), net
(43)22 (14)30 
Consolidated income before income tax expense $1,002 $727 $1,768 $1,331 

(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.
Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the three months ended June 30, 2021 and 2020, were as follows (amounts in millions):

Three Months Ended June 30, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$938 $472 $638 $— $(22)$2,026 
Retail channels128 9 — — — 137 
Other (2)16 34 — 83 — 133 
Total consolidated net revenues$1,082 $515 $638 $83 $(22)$2,296 
Change in deferred revenues:
Digital online channels (1)$(202)$(80)$(3)$— $— $(285)
Retail channels(91)(2)— — — (93)
Other (2)— — — 3 — 3 
Total change in deferred revenues$(293)$(82)$(3)$3 $— $(375)
Segment net revenues:
Digital online channels (1)$736 $392 $635 $— $(22)$1,741 
Retail channels37 7 — — — 44 
Other (2)16 34 — 86 — 136 
Total segment net revenues$789 $433 $635 $86 $(22)$1,921 
Three Months Ended June 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$680 $390 $549 $— $(28)$1,591 
Retail channels163 5 — — — 168 
Other (2)27 45 — 101 — 173 
Total consolidated net revenues$870 $440 $549 $101 $(28)$1,932 
Change in deferred revenues:
Digital online channels (1)$206 $20 $4 $— $— $230 
Retail channels(83)1 — — — (82)
Other (2)— — — (2)— (2)
Total change in deferred revenues$123 $21 $4 $(2)$— $146 
Segment net revenues:
Digital online channels (1)$886 $410 $553 $— $(28)$1,821 
Retail channels80 6 — — — 86 
Other (2)27 45 — 99 — 171 
Total segment net revenues$993 $461 $553 $99 $(28)$2,078 

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the six months ended June 30, 2021 and 2020, were as follows (amounts in millions):

Six Months Ended June 30, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$1,902 $933 $1,243 $— $(47)$4,031 
Retail channels271 15 — — — 286 
Other (2)31 37 — 186 — 254 
Total consolidated net revenues$2,204 $985 $1,243 $186 $(47)$4,571 
Change in deferred revenues:
Digital online channels (1)$(363)$(63)$1 $— $— $(425)
Retail channels(161)(6)— — — (167)
Other (2)— — — 8 — 8 
Total change in deferred revenues$(524)$(69)$1 $8 $— $(584)
Segment net revenues:
Digital online channels (1)$1,539 $870 $1,244 $— $(47)$3,606 
Retail channels110 9 — — — 119 
Other (2)31 37 — 194 — 262 
Total segment net revenues$1,680 $916 $1,244 $194 $(47)$3,987 
Six Months Ended June 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$1,228 $798 $1,048 $— $(44)$3,030 
Retail channels375 15 — — — 390 
Other (2)47 76 — 176 — 299 
Total consolidated net revenues$1,650 $889 $1,048 $176 $(44)$3,719 
Change in deferred revenues:
Digital online channels (1)$114 $29 $3 $— $— $146 
Retail channels(252)(3)— — — (255)
Other (2)— (1)— (9)— (10)
Total change in deferred revenues$(138)$25 $3 $(9)$— $(119)
Segment net revenues:
Digital online channels (1)$1,342 $827 $1,051 $— $(44)$3,176 
Retail channels123 12 — — — 135 
Other (2)47 75 — 167 — 289 
Total segment net revenues$1,512 $914 $1,051 $167 $(44)$3,600 

(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.
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 June 30, 2021 and 2020, were as follows (amounts in millions):

Three Months Ended June 30, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$702 $245 $412 $— $(13)$1,346 
EMEA (1)283 174 162 83 (7)695 
Asia Pacific97 96 64 — (2)255 
Total consolidated net revenues$1,082 $515 $638 $83 $(22)$2,296 
Change in deferred revenues:
Americas$(179)$(36)$(3)$— $— $(218)
EMEA (1)(95)(40)(1)3 — (133)
Asia Pacific(19)(6)1 — — (24)
Total change in deferred revenues$(293)$(82)$(3)$3 $— $(375)
Segment net revenues:
Americas$523 $209 $409 $— $(13)$1,128 
EMEA (1)188 134 161 86 (7)562 
Asia Pacific78 90 65 — (2)231 
Total segment net revenues$789 $433 $635 $86 $(22)$1,921 

Three Months Ended June 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$548 $216 $362 $— $(14)$1,112 
EMEA (1)248 141 135 101 (10)615 
Asia Pacific74 83 52 — (4)205 
Total consolidated net revenues$870 $440 $549 $101 $(28)$1,932 
Change in deferred revenues:
Americas$100 $19 $5 $— $— $124 
EMEA (1)17 1 — (2)— 16 
Asia Pacific6 1 (1)— — 6 
Total change in deferred revenues$123 $21 $4 $(2)$— $146 
Segment net revenues:
Americas$648 $235 $367 $— $(14)$1,236 
EMEA (1)265 142 135 99 (10)631 
Asia Pacific80 84 51 — (4)211 
Total segment net revenues$993 $461 $553 $99 $(28)$2,078 
Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the six months ended June 30, 2021 and 2020, were as follows (amounts in millions):

Six Months Ended June 30, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$1,427 $455 $798 $— $(27)$2,653 
EMEA (1)593 341 322 186 (16)1,426 
Asia Pacific184 189 123 — (4)492 
Total consolidated net revenues$2,204 $985 $1,243 $186 $(47)$4,571 
Change in deferred revenues:
Americas$(310)$(31)$1 $— $— $(340)
EMEA (1)(171)(33)— 8 — (196)
Asia Pacific(43)(5)— — — (48)
Total change in deferred revenues$(524)$(69)$1 $8 $— $(584)
Segment net revenues:
Americas$1,117 $424 $799 $— $(27)$2,313 
EMEA (1)422 308 322 194 (16)1,230 
Asia Pacific141 184 123 — (4)444 
Total segment net revenues$1,680 $916 $1,244 $194 $(47)$3,987 

Six Months Ended June 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$1,020 $387 $674 $— $(21)$2,060 
EMEA (1)487 262 271 176 (15)1,181 
Asia Pacific143 240 103 — (8)478 
Total consolidated net revenues$1,650 $889 $1,048 $176 $(44)$3,719 
Change in deferred revenues:
Americas$(46)$22 $5 $— $— $(19)
EMEA (1)(79)5 (2)(9)— (85)
Asia Pacific(13)(2)— — — (15)
Total change in deferred revenues$(138)$25 $3 $(9)$— $(119)
Segment net revenues:
Americas$974 $409 $679 $— $(21)$2,041 
EMEA (1)408 267 269 167 (15)1,096 
Asia Pacific130 238 103 — (8)463 
Total segment net revenues$1,512 $914 $1,051 $167 $(44)$3,600 

(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 51% of consolidated net revenues for both the three months ended June 30, 2021 and 2020. The Company’s net revenues in the United Kingdom (“U.K.”) were 10% and 11% of consolidated net revenues for the three months ended June 30, 2021 and 2020, respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for either the three months ended June 30, 2021 or 2020.
The Company’s net revenues in the U.S. were 51% and 50% of consolidated net revenues for the six months ended June 30, 2021 and 2020, respectively. The Company’s net revenues in the U.K. were 10% of consolidated net revenues for both the six months ended June 30, 2021 and 2020. No other country’s net revenues exceeded 10% of consolidated net revenues for either the six months ended June 30, 2021 or 2020.

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended June 30, 2021 and 2020, were as follows (amounts in millions):

Three Months Ended June 30, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$717 $23 $— $— $— $740 
PC192 436 22 — (22)628 
Mobile and ancillary (1)157 22 616 — — 795 
Other (2)16 34 — 83 — 133 
Total consolidated net revenues$1,082 $515 $638 $83 $(22)$2,296 
Change in deferred revenues:
Console$(245)$— $— $— $— $(245)
PC(52)(76)— — — (128)
Mobile and ancillary (1)4 (6)(3)— — (5)
Other (2)— — — 3 — 3 
Total change in deferred revenues$(293)$(82)$(3)$3 $— $(375)
Segment net revenues:
Console$472 $23 $— $— $— $495 
PC140 360 22 — (22)500 
Mobile and ancillary (1)161 16 613 — — 790 
Other (2)16 34 — 86 — 136 
Total segment net revenues$789 $433 $635 $86 $(22)$1,921 
Three Months Ended June 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$623 $32 $— $— $— $655 
PC146 339 25 — (28)482 
Mobile and ancillary (1)74 24 524 — — 622 
Other (2)27 45 — 101 — 173 
Total consolidated net revenues$870 $440 $549 $101 $(28)$1,932 
Change in deferred revenues:
Console$53 $5 $— $— $— $58 
PC21 15 1 — — 37 
Mobile and ancillary (1)49 1 3 — — 53 
Other (2)— — — (2)— (2)
Total change in deferred revenues$123 $21 $4 $(2)$— $146 
Segment net revenues:
Console$676 $37 $— $— $— $713 
PC167 354 26 — (28)519 
Mobile and ancillary (1)123 25 527 — — 675 
Other (2)27 45 — 99 — 171 
Total segment net revenues$993 $461 $553 $99 $(28)$2,078 
Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the six months ended June 30, 2021 and 2020, were as follows (amounts in millions):

Six Months Ended June 30, 2021
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$1,490 $48 $— $— $— $1,538 
PC392 858 45 — (47)1,248 
Mobile and ancillary (1)291 42 1,198 — — 1,531 
Other (2)31 37 — 186 — 254 
Total consolidated net revenues$2,204 $985 $1,243 $186 $(47)$4,571 
Change in deferred revenues:
Console$(411)$(6)$— $— $— $(417)
PC(112)(60)— — — (172)
Mobile and ancillary (1)(1)(3)1 — — (3)
Other (2)— — — 8 — 8 
Total change in deferred revenues$(524)$(69)$1 $8 $— $(584)
Segment net revenues:
Console$1,079 $42 $— $— $— $1,121 
PC280 798 45 — (47)1,076 
Mobile and ancillary (1)290 39 1,199 — — 1,528 
Other (2)31 37 — 194 — 262 
Total segment net revenues$1,680 $916 $1,244 $194 $(47)$3,987 
Six Months Ended June 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$1,190 $59 $— $— $— $1,249 
PC273 702 50 — (44)981 
Mobile and ancillary (1)140 52 998 — — 1,190 
Other (2)47 76 — 176 — 299 
Total consolidated net revenues$1,650 $889 $1,048 $176 $(44)$3,719 
Change in deferred revenues:
Console$(169)$(3)$— $— $— $(172)
PC(17)34 — — — 17 
Mobile and ancillary (1)48 (5)3 — — 46 
Other (2)— (1)— (9)— (10)
Total change in deferred revenues$(138)$25 $3 $(9)$— $(119)
Segment net revenues:
Console$1,021 $56 $— $— $— $1,077 
PC256 736 50 — (44)998 
Mobile and ancillary (1)188 47 1,001 — — 1,236 
Other (2)47 75 — 167 — 289 
Total segment net revenues$1,512 $914 $1,051 $167 $(44)$3,600 
(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 were as follows (amounts in millions):

 At June 30, 2021At December 31, 2020
Long-lived assets* by geographic region:
Americas$236 $270 
EMEA142 166 
Asia Pacific16 17 
Total long-lived assets by geographic region$394 $453 

*    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.