Operating Segments and Geographic Region (Tables)

12 Months Ended

Dec. 31, 2016

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 operating 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 years ended December 31, 2016, 2015 and 2014 are presented below (amounts in millions):



	Years Ended December 31,
	2016		2015		2014			2016			2015			2014
	Net revenues							Operating income and income before income tax expense
Activision	$	2,220	$	2,700	$	2,686		$	788		$	868		$	762
Blizzard	2,428		1,565		1,720			1,013			561			756
King	1,586		—		—			537			—			—
Reportable segments total	6,234		4,265		4,406			2,338			1,429			1,518

Reconciliation to consolidated net revenues / consolidated income before income tax expense:
Other segments (1)	365		356		407			(4		)	37			9
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues	9		43		(405		)	(10		)	(39		)	(215		)
Share-based compensation expense	—		—		—			(159		)	(92		)	(104		)
Amortization of intangible assets	—		—		—			(706		)	(11		)	(12		)
Fees and other expenses related to acquisitions and the Purchase Transaction (2)	—		—		—			(47		)	(5		)	(13		)
Consolidated net revenues / operating income	$	6,608	$	4,664	$	4,408		$	1,412		$	1,319		$	1,183
Interest and other expense (income), net								214			198			202
Loss on extinguishment of debt								92			—			—
Consolidated income before income tax expense								$	1,106		$	1,121		$	981


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

(2)

Reflects the fees and other expenses, such as legal, banking, and professional service fees, related to (a) the October 11, 2013 repurchase of approximately 429 million shares of our common stock (the "Purchase Transaction", pursuant to a stock purchase agreement among us with Vivendi and ASAC II LP ("ASAC LP"), an exempted limited partnership established under the laws of the Cayman Islands, acting by its general partner, ASAC II LLC ("ASAC GP"), (b) the King Acquisition, and (c) other business acquisitions and associated integration activities, in each case, inclusive of any related debt financings.

Schedule of net revenues from external customers by geographic region

Geographic information presented below for the years ended December 31, 2016, 2015, and 2014 is based on the location of the selling entity. Net revenues from external customers by geographic region were as follows (amounts in millions):



	Years ended December 31,
	2016		2015		2014
Net revenues by geographic region:
Americas	$	3,423	$	2,409	$	2,190
EMEA (1)	2,221		1,741		1,824
Asia Pacific	964		514		394
Total consolidated net revenues	$	6,608	$	4,664	$	4,408

(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):



	Years Ended December 31,
	2016		2015		2014
Net revenues by platform:
Console	$	2,453	$	2,391	$	2,150
PC (1)	2,124		1,499		1,418
Mobile and ancillary (2)	1,674		418		433
Other (3)	357		356		407
Total consolidated net revenues	$	6,608	$	4,664	$	4,408

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(1)	Net revenues from PC includes revenues that were historically shown as Online.


(2)	Net revenues from mobile and ancillary includes revenues from handheld, mobile and tablet 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.


(3)	Net revenues from Other include revenues from our MLG, Studios, and Distribution businesses.

Long-lived assets by geographic region

Long-lived assets by geographic region at December 31, 2016, 2015, and 2014 were as follows (amounts in millions):



	Years Ended December 31,
	2016		2015		2014
Long-lived assets* by geographic region:
Americas	$	154	$	138	$	122
EMEA	87		42		29
Asia Pacific	17		9		6
Total long-lived assets by geographic region	$	258	$	189	$	157

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*	The only long-lived assets that we classify by region are our long-term tangible fixed assets, which only include property, plant and equipment assets; all other long-term assets are not allocated by location.