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Recently Issued Accounting Pronouncements (Tables)
 12 Months Ended
Dec. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Schedule of Impact of Adoption
See a summary of impacts on our consolidated statement of cash flows for the year ended December 31, 2016 as follows (in millions):
 
 
For the Year Ended December 31, 2016
 
 
Under new standard after adoption
 
Under old standard before adoption
 
Increase (decrease) due to adoption of new standard
Acquisition of business, net of cash acquired
 
$
(4,586
)
 
$
(4,588
)
 
$
2

Release of cash in escrow
 
—

 
3,561

 
(3,561
)
Other investing activities
 
(7
)
 
(14
)
 
7

Net cash used in investing activities
 
(4,729
)
 
(1,177
)
 
(3,552
)
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents and restricted cash
 
(2,130
)
 
1,422

 
(3,552
)
Cash and cash equivalents and restricted cash at beginning of period
 
5,392

 
1,823

 
3,569

Cash and cash equivalents and restricted cash at end of period
 
3,262

 
3,245

 
17

Adoption of the new revenue accounting standard impacted our consolidated statement of operations for the year ended December 31, 2018, and our consolidated balance sheet as of December 31, 2018, as follows (in millions, except per share data):

 
 
For the Year Ended December 31, 2018
Consolidated Statement of Operations:
 
Under new revenue accounting standard
 
Under old revenue accounting standards
 
Increase (decrease) due to adoption of new revenue accounting standard
Net revenues
 
 
 
 
 
 
Product sales
 
$
2,255

 
$
2,398

 
$
(143
)
Subscription, licensing, and other revenues
 
5,245

 
5,166

 
79

Total net revenues
 
7,500

 
7,564

 
(64
)
 
 
 
 
 
 
 
Costs and expenses
 
 
 
 
 
 
  Cost of revenues—product sales:
 
 
 
 
 
 
Product costs
 
719

 
737

 
(18
)
Software royalties, amortization, and intellectual property licenses
 
371

 
389

 
(18
)
  Cost of revenues—subscription, licensing, and other revenues:
 
 
 
 
 
 
Game operations and distribution costs
 
1,028

 
1,028

 
—

Software royalties, amortization, and intellectual property licenses
 
399

 
403

 
(4
)
Product development
 
1,101

 
1,101

 
—

Sales and marketing
 
1,062

 
1,063

 
(1
)
General and administrative
 
832

 
832

 
—

Total costs and expenses
 
5,512

 
5,553

 
(41
)
 
 
 
 
 
 
 
Operating income
 
1,988

 
2,011

 
(23
)
Interest and other expense (income), net
 
71

 
71

 
—

Loss on extinguishment of debt
 
40

 
40

 
—

Income before income tax expense
 
1,877

 
1,900

 
(23
)
Income tax expense
 
64

 
65

 
(1
)
Net income
 
$
1,813

 
$
1,835

 
$
(22
)
 
 
 
 
 
 
 
Earnings per common share
 
 
 
 
 
 
Basic
 
$
2.38

 
$
2.41

 
$
(0.03
)
Diluted
 
$
2.35

 
$
2.38

 
$
(0.03
)

 
 
At December 31, 2018
Consolidated Balance Sheet:
 
Under new revenue accounting standard
 
Under old revenue accounting standards
 
Increase (decrease) due to adoption of new revenue accounting standard
Assets
 
 
 
 
 
 
  Accounts receivable, net
 
$
1,035

 
$
1,037

 
$
(2
)
  Software development
 
264

 
266

 
(2
)
  Other current assets
 
539

 
559

 
(20
)
Deferred income taxes, net
 
403

 
453

 
(50
)
Other assets
 
482

 
493

 
(11
)
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
Deferred revenues
 
$
1,493

 
$
1,674

 
$
(181
)
Accrued expenses and other liabilities
 
896

 
914

 
(18
)
Other liabilities
 
1,147

 
1,102

 
45

Shareholders’ equity
 
11,357

 
11,288

 
69

The cumulative effect adjustment recorded to our retained earnings was $88 million (see our consolidated statements of changes in shareholders’ equity) and included the impact from the following adjustments to our consolidated balance sheet at January 1, 2018 (amounts in millions):

Consolidated Balance Sheet:
 
Balance at December 31, 2017
 
Adjustments due to adoption of new revenue accounting standard
 
Balance at January 1, 2018
Assets
 
 
 
 
 
 
  Accounts receivable, net
 
$
918

 
$
3

 
$
921

  Software development
 
367

 
(20
)
 
347

  Other current assets
 
476

 
(35
)
 
441

Deferred income taxes, net
 
459

 
(32
)
 
427

Other assets
 
440

 
4

 
444

 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
Deferred revenues
 
$
1,929

 
$
(194
)
 
$
1,735

Other liabilities
 
1,132

 
23

 
1,155

Shareholders’ equity
 
9,462

 
91

 
9,553