Analysis of Debt
Total Debt (Carrying Amount)
Activision Blizzard Inc., balance sheet: debt
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Long-term debt, net | 3,611) | 3,608) | 3,605) | 2,675) | 2,671) | |
| Total long-term debt (carrying amount) | 3,611) | 3,608) | 3,605) | 2,675) | 2,671) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Long-term Debt Trends
-
The reported long-term debt shows a steady increase over the five-year period. Starting at 2,671 million US dollars at the end of 2018, the debt remained relatively stable through 2019 with a slight increase of 4 million US dollars.
Beginning in 2020, there was a notable rise in long-term debt, reaching 3,605 million US dollars, which represents an increase of approximately 34.7% compared to the previous year. This elevated level was maintained with marginal further increases through 2021 and 2022, ending at 3,611 million US dollars.
- Overall Observations
-
The long-term debt essentially remained unchanged between 2018 and 2019, indicating a period of stability. The sharp increase in 2020 may suggest strategic financing or capital structure changes undertaken during this time, possibly to support expansion or other corporate initiatives.
Subsequently, the debt levels plateaued, reflecting a period of relative financial consistency in terms of long-term borrowing from 2020 through 2022, with only minimal increments suggesting that no significant additional long-term debt was undertaken beyond the initial surge.
Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| 2021 Notes | —) |
| 2022 Notes | —) |
| 2026 Notes | 810) |
| 2027 Notes | 378) |
| 2030 Notes | 391) |
| 2047 Notes | 353) |
| 2050 Notes | 936) |
| Total long-term debt (fair value) | 2,868) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.79 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 2.96%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.40% | 810) | 28) | |
| 3.40% | 378) | 13) | |
| 1.35% | 391) | 5) | |
| 4.50% | 353) | 16) | |
| 2.50% | 936) | 23) | |
| Total | 2,868) | 85) | |
| 2.96% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 85 ÷ 2,868 = 2.96%