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Operating Segments and Geographic Region
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Operating Segments and Geographic Region Operating Segments and Geographic Region
 
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 September 30, 2020 and 2019, are presented below (amounts in millions):
Three Months Ended September 30, 2020
ActivisionBlizzardKingTotal
Segment Net Revenues
Net revenues from external customers$773 $393 $536 $1,702 
Intersegment net revenues (1)— 18 — 18 
Segment net revenues$773 $411 $536 $1,720 
Segment operating income$345 $133 $248 $726 
Three Months Ended September 30, 2019
ActivisionBlizzardKingTotal
Segment Net Revenues
Net revenues from external customers$209 $392 $500 $1,101 
Intersegment net revenues (1)— 2 — 2 
Segment net revenues$209 $394 $500 $1,103 
Segment operating income$26 $74 $194 $294 
Information on reportable segment net revenues and operating income for the nine months ended September 30, 2020 and 2019, are presented below (amounts in millions):

Nine Months Ended September 30, 2020
ActivisionBlizzardKingTotal
Segment Net Revenues
Net revenues from external customers$2,285 $1,264 $1,587 $5,136 
Intersegment net revenues (1)— 62 — 62 
Segment net revenues$2,285 $1,326 $1,587 $5,198 
Segment operating income$1,088 $533 $615 $2,236 
Nine Months Ended September 30, 2019
ActivisionBlizzardKingTotal
Segment Net Revenues
Net revenues from external customers$794 $1,113 $1,527 $3,434 
Intersegment net revenues (1)— 9 — 9 
Segment net revenues$794 $1,122 $1,527 $3,443 
Segment operating income$153 $204 $543 $900 

(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 September 30,Nine Months Ended September 30,
2020201920202019
Reconciliation to consolidated net revenues:
Segment net revenues$1,720 $1,103 $5,198 $3,443 
Revenues from non-reportable segments (1)
65 113 232 245 
Net effect from recognition (deferral) of deferred net revenues (2)
187 68 306 824 
Elimination of intersegment revenues (3)
(18)(2)(62)(9)
Consolidated net revenues
$1,954 $1,282 $5,674 $4,503 
Reconciliation to consolidated income before income tax expense:
Segment operating income
$726 $294 $2,236 $900 
Operating income (loss) from non-reportable segments (1)
(20)5 (27)10 
Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2)
150 53 169 629 
Share-based compensation expense
(53)(27)(138)(127)
Amortization of intangible assets
(16)(50)(62)(151)
Restructuring and related costs (4)(9)(28)(39)(108)
Consolidated operating income
778 247 2,139 1,153 
Interest and other expense (income), net
25 (2)55 (33)
Loss on extinguishment of debt
31 — 31 — 
Consolidated income before income tax expense
$722 $249 $2,053 $1,186 
(1)Includes other income and expenses from operating segments managed outside the reportable segments, including our Distribution business. Also includes 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.

(4)Reflects restructuring initiatives, which include severance and other restructuring-related costs.

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the three months ended September 30, 2020 and 2019, were as follows (amounts in millions):

Three Months Ended September 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$826 $405 $540 $— $(18)$1,753 
Retail channels110 7 — — — 117 
Other (2)8 11 — 65 — 84 
Total consolidated net revenues$944 $423 $540 $65 $(18)$1,954 
Change in deferred revenues:
Digital online channels (1)$(130)$(14)$(4)$— $— $(148)
Retail channels(41)2 — — — (39)
Other (2)— — — — — — 
Total change in deferred revenues$(171)$(12)$(4)$— $— $(187)
Segment net revenues:
Digital online channels (1)$696 $391 $536 $— $(18)$1,605 
Retail channels69 9 — — — 78 
Other (2)8 11 — 65 — 84 
Total segment net revenues$773 $411 $536 $65 $(18)$1,767 
Three Months Ended September 30, 2019
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$179 $335 $502 $— $(2)$1,014 
Retail channels73 20 — — — 93 
Other (2)— 62 — 113 — 175 
Total consolidated net revenues$252 $417 $502 $113 $(2)$1,282 
Change in deferred revenues:
Digital online channels (1)$(16)$(21)$(2)$— $— $(39)
Retail channels(27)(2)— — — (29)
Other (2)— — — — — — 
Total change in deferred revenues$(43)$(23)$(2)$— $— $(68)
Segment net revenues:
Digital online channels (1)$163 $314 $500 $— $(2)$975 
Retail channels46 18 — — — 64 
Other (2)— 62 — 113 — 175 
Total segment net revenues$209 $394 $500 $113 $(2)$1,214 

Net revenues by distribution channel, including a reconciliation to each of our reportable segment’s revenues, for the nine months ended September 30, 2020 and 2019, were as follows (amounts in millions):

Nine Months Ended September 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$2,054 $1,203 $1,587 $— $(62)$4,782 
Retail channels485 23 1 — — 509 
Other (2)55 87 — 241 — 383 
Total consolidated net revenues$2,594 $1,313 $1,588 $241 $(62)$5,674 
Change in deferred revenues:
Digital online channels (1)$(16)$16 $(1)$— $— $(1)
Retail channels(293)(2)— — — (295)
Other (2)— (1)— (9)— (10)
Total change in deferred revenues$(309)$13 $(1)$(9)$— $(306)
Segment net revenues:
Digital online channels (1)$2,038 $1,219 $1,586 $— $(62)$4,781 
Retail channels192 21 1 — — 214 
Other (2)55 86 — 232 — 373 
Total segment net revenues$2,285 $1,326 $1,587 $232 $(62)$5,368 
Nine Months Ended September 30, 2019
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by distribution channel:
Digital online channels (1)$894 $1,081 $1,527 $— $(9)$3,493 
Retail channels548 51 — — — 599 
Other (2)— 157 — 254 — 411 
Total consolidated net revenues$1,442 $1,289 $1,527 $254 $(9)$4,503 
Change in deferred revenues:
Digital online channels (1)$(285)$(159)$— $— $— $(444)
Retail channels(363)(10)— — — (373)
Other (2)— 2 — (9)— (7)
Total change in deferred revenues$(648)$(167)$— $(9)$— $(824)
Segment net revenues:
Digital online channels (1)$609 $922 $1,527 $— $(9)$3,049 
Retail channels185 41 — — — 226 
Other (2)— 159 — 245 — 404 
Total segment net revenues$794 $1,122 $1,527 $245 $(9)$3,679 

(1)    Net revenues from “Digital online channels” include revenues from digitally-distributed subscriptions, downloadable content, microtransactions, 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 September 30, 2020 and 2019, were as follows (amounts in millions):

Three Months Ended September 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$595 $192 $350 $— $(10)$1,127 
EMEA (1)263 131 136 65 (6)589 
Asia Pacific86 100 54 — (2)238 
Total consolidated net revenues$944 $423 $540 $65 $(18)$1,954 
Change in deferred revenues:
Americas$(77)$(4)$(4)$— $(1)$(86)
EMEA (1)(68)(8)— — 1 (75)
Asia Pacific(26)— — — — (26)
Total change in deferred revenues$(171)$(12)$(4)$— $— $(187)
Segment net revenues:
Americas$518 $188 $346 $— $(11)$1,041 
EMEA (1)195 123 136 65 (5)514 
Asia Pacific60 100 54 — (2)212 
Total segment net revenues$773 $411 $536 $65 $(18)$1,767 

Three Months Ended September 30, 2019
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$141 $204 $311 $— $(1)$655 
EMEA (1)79 124 137 113 (1)452 
Asia Pacific32 89 54 — — 175 
Total consolidated net revenues$252 $417 $502 $113 $(2)$1,282 
Change in deferred revenues:
Americas$(20)$(11)$(2)$— $— $(33)
EMEA (1)(16)(10)— — — (26)
Asia Pacific(7)(2)— — — (9)
Total change in deferred revenues$(43)$(23)$(2)$— $— $(68)
Segment net revenues:
Americas$121 $193 $309 $— $(1)$622 
EMEA (1)63 114 137 113 (1)426 
Asia Pacific25 87 54 — — 166 
Total segment net revenues$209 $394 $500 $113 $(2)$1,214 
Net revenues by geographic region, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2020 and 2019, were as follows (amounts in millions):

Nine Months Ended September 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$1,615 $580 $1,024 $— $(31)$3,188 
EMEA (1)750 393 407 241 (21)1,770 
Asia Pacific229 340 157 — (10)716 
Total consolidated net revenues$2,594 $1,313 $1,588 $241 $(62)$5,674 
Change in deferred revenues:
Americas$(124)$18 $— $— $— $(106)
EMEA (1)(146)(3)(1)(9)— (159)
Asia Pacific(39)(2)— — — (41)
Total change in deferred revenues$(309)$13 $(1)$(9)$— $(306)
Segment net revenues:
Americas$1,491 $598 $1,024 $— $(31)$3,082 
EMEA (1)604 390 406 232 (21)1,611 
Asia Pacific190 338 157 — (10)675 
Total segment net revenues$2,285 $1,326 $1,587 $232 $(62)$5,368 

Nine Months Ended September 30, 2019
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (2)Total
Net revenues by geographic region:
Americas$852 $613 $946 $— $(5)$2,406 
EMEA (1)457 400 417 254 (3)1,525 
Asia Pacific133 276 164 — (1)572 
Total consolidated net revenues$1,442 $1,289 $1,527 $254 $(9)$4,503 
Change in deferred revenues:
Americas$(390)$(80)$1 $— $— $(469)
EMEA (1)(205)(71)— (9)— (285)
Asia Pacific(53)(16)(1)— — (70)
Total change in deferred revenues$(648)$(167)$— $(9)$— $(824)
Segment net revenues:
Americas$462 $533 $947 $— $(5)$1,937 
EMEA (1)252 329 417 245 (3)1,240 
Asia Pacific80 260 163 — (1)502 
Total segment net revenues$794 $1,122 $1,527 $245 $(9)$3,679 

(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 50% and 46% of consolidated net revenues for the three months ended September 30, 2020 and 2019, respectively. The Company’s net revenues in the United Kingdom (the “U.K.”) were 9% and 13% of consolidated net revenues for the three months ended September 30, 2020 and 2019, respectively. No other country’s net revenues exceeded 10% of consolidated net revenues for either the three months ended September 30, 2020 or 2019.

The Company’s net revenues in the U.S. were 50% and 48% of consolidated net revenues for the nine months ended September 30, 2020 and 2019, respectively. The Company’s net revenues in the U.K. were 10% of consolidated net revenues for both the nine months ended September 30, 2020 and 2019. No other country’s net revenues exceeded 10% of consolidated net revenues for either the nine months ended September 30, 2020 or 2019.

Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the three months ended September 30, 2020 and 2019, were as follows (amounts in millions):

Three Months Ended September 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$664 $31 $— $— $— $695 
PC152 357 23 — (18)514 
Mobile and ancillary (1)120 24 517 — — 661 
Other (2)8 11 — 65 — 84 
Total consolidated net revenues$944 $423 $540 $65 $(18)$1,954 
Change in deferred revenues:
Console$(125)$(4)$— $— $— $(129)
PC(35)(9)(1)— — (45)
Mobile and ancillary (1)(11)1 (3)— — (13)
Other (2)— — — — — — 
Total change in deferred revenues$(171)$(12)$(4)$— $— $(187)
Segment net revenues:
Console$539 $27 $— $— $— $566 
PC117 348 22 — (18)469 
Mobile and ancillary (1)109 25 514 — — 648 
Other (2)8 11 — 65 — 84 
Total segment net revenues$773 $411 $536 $65 $(18)$1,767 
Three Months Ended September 30, 2019
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$214 $27 $— $— $— $241 
PC29 286 28 — (2)341 
Mobile and ancillary (1)9 42 474 — — 525 
Other (2)— 62 — 113 — 175 
Total consolidated net revenues$252 $417 $502 $113 $(2)$1,282 
Change in deferred revenues:
Console$(36)$(9)$— $— $— $(45)
PC(7)(14)— — — (21)
Mobile and ancillary (1)— — (2)— — (2)
Other (2)— — — — — — 
Total change in deferred revenues$(43)$(23)$(2)$— $— $(68)
Segment net revenues:
Console$178 $18 $— $— $— $196 
PC22 272 28 — (2)320 
Mobile and ancillary (1)9 42 472 — — 523 
Other (2)— 62 — 113 — 175 
Total segment net revenues$209 $394 $500 $113 $(2)$1,214 
Net revenues by platform, including a reconciliation to each of our reportable segment’s net revenues, for the nine months ended September 30, 2020 and 2019, were as follows (amounts in millions):

Nine Months Ended September 30, 2020
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$1,855 $89 $— $— $— $1,944 
PC423 1,060 73 — (62)1,494 
Mobile and ancillary (1)261 77 1,515 — — 1,853 
Other (2)55 87 — 241 — 383 
Total consolidated net revenues$2,594 $1,313 $1,588 $241 $(62)$5,674 
Change in deferred revenues:
Console$(295)$(6)$— $— $— $(301)
PC(50)24 (1)— — (27)
Mobile and ancillary (1)36 (4)— — — 32 
Other (2)— (1)— (9)— (10)
Total change in deferred revenues$(309)$13 $(1)$(9)$— $(306)
Segment net revenues:
Console$1,560 $83 $— $— $— $1,643 
PC373 1,084 72 — (62)1,467 
Mobile and ancillary (1)297 73 1,515 — — 1,885 
Other (2)55 86 — 232 — 373 
Total segment net revenues$2,285 $1,326 $1,587 $232 $(62)$5,368 
Nine Months Ended September 30, 2019
ActivisionBlizzardKingNon-reportable segmentsElimination of intersegment revenues (3)Total
Net revenues by platform:
Console$1,222 $102 $— $— $— $1,324 
PC204 909 92 — (9)1,196 
Mobile and ancillary (1)16 121 1,435 — — 1,572 
Other (2)— 157 — 254 — 411 
Total consolidated net revenues$1,442 $1,289 $1,527 $254 $(9)$4,503 
Change in deferred revenues:
Console$(563)$(26)$— $— $— $(589)
PC(84)(133)(1)— — (218)
Mobile and ancillary (1)(1)(10)1 — — (10)
Other (2)— 2 — (9)— (7)
Total change in deferred revenues$(648)$(167)$— $(9)$— $(824)
Segment net revenues:
Console$659 $76 $— $— $— $735 
PC120 776 91 — (9)978 
Mobile and ancillary (1)15 111 1,436 — — 1,562 
Other (2)— 159 — 245 — 404 
Total segment net revenues$794 $1,122 $1,527 $245 $(9)$3,679 

(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” 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.

Long-lived assets by geographic region were as follows (amounts in millions):

At September 30, 2020At December 31, 2019
Long-lived assets (1) by geographic region:  
Americas$269 $322 
EMEA174 142 
Asia Pacific16 21 
Total long-lived assets by geographic region$459 $485 

(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 our lease right-of-use assets; all other long-term assets are not allocated by location.