BUSINESS COMBINATIONS (Tables) - Activision Blizzard, Inc.

9 Months Ended

Mar. 31, 2024

Major Classes of Assets and Liabilities Allocated Purchase Price

The major classes of assets and liabilities to which we have preliminarily allocated the purchase price were as follows:

(In millions)
Cash and cash equivalents	$	12,976
Goodwill		50,989
Intangible assets		21,969
Other assets		2,440
Long-term debt		(2,799	)
Long-term income taxes		(1,868	)
Deferred income taxes		(4,678	)
Other liabilities		(3,623	)
Total purchase price	$	75,406

Acquired Intangible Assets

Following are the details of the purchase price allocated to the intangible assets acquired:

(In millions, except average life)	Amount		Weighted Average Life
Marketing-related	$	11,619		24 years
Technology-based		9,689		4 years
Customer-related		661		4 years
Fair value of intangible assets acquired	$	21,969		15 years

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis

Following is the net impact of the Activision Blizzard acquisition on our consolidated income statements since the date of acquisition:

(In millions)	Three Months Ended March 31,			Nine Months Ended March 31,
	2024				2024
Revenue	$	1,969		$	4,053
Operating loss		(353	)		(790	)

The change of Activision Blizzard content from third-party to first-party is reflected in the net impact.

Following are the supplemental consolidated financial results of Microsoft Corporation on an unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2022:

(In millions, except per share amounts)	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023			2024		2023
Revenue	$	61,856	$	54,945	$	182,717	$	161,745
Net income		21,931		18,258		66,278		51,536
Diluted earnings per share		2.94		2.45		8.88		6.90