Activision Blizzard Inc., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Land	1)	1)	1)	1)	1)
Buildings	3)	4)	4)	4)	4)
Leasehold improvements	244)	227)	246)	252)	248)
Computer and server equipment	653)	703)	704)	654)	700)
Office furniture and other equipment	90)	90)	95)	91)	99)
Cost of property and equipment	991)	1,025)	1,050)	1,002)	1,052)
Accumulated depreciation	(798)	(856)	(841)	(749)	(770)
Property and equipment, net	193)	169)	209)	253)	282)

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Item	Description	The company
Cost of property and equipment	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Activision Blizzard Inc. cost of property and equipment decreased from 2020 to 2021 and from 2021 to 2022.
Property and equipment, net	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	Activision Blizzard Inc. property and equipment, net decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Activision Blizzard Inc., asset age ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Average age ratio	80.61%	83.59%	80.17%	74.83%	73.26%
Estimated total useful life (years)	11	10	9	8	8
Estimated age, time elapsed since purchase (years)	9	8	7	6	6
Estimated remaining life (years)	2	2	2	2	2

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Activision Blizzard Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Activision Blizzard Inc. estimated total useful life of depreciable property, plant and equipment increased from 2020 to 2021 and from 2021 to 2022.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Activision Blizzard Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2020 to 2021 and from 2021 to 2022.
Estimated remaining life		Activision Blizzard Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation	798)	856)	841)	749)	770)
Cost of property and equipment	991)	1,025)	1,050)	1,002)	1,052)
Land	1)	1)	1)	1)	1)
Asset Age Ratio
Average age¹	80.61%	83.59%	80.17%	74.83%	73.26%

2022 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Cost of property and equipment – Land)
= 100 × 798 ÷ (991 – 1) = 80.61%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	Activision Blizzard Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Cost of property and equipment	991)	1,025)	1,050)	1,002)	1,052)
Land	1)	1)	1)	1)	1)
Depreciation expense	91)	105)	117)	124)	138)
Asset Age Ratio (Years)
Estimated total useful life¹	11	10	9	8	8

2022 Calculations

¹ Estimated total useful life = (Cost of property and equipment – Land) ÷ Depreciation expense
= (991 – 1) ÷ 91 = 11

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	Activision Blizzard Inc. estimated total useful life of depreciable property, plant and equipment increased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation	798)	856)	841)	749)	770)
Depreciation expense	91)	105)	117)	124)	138)
Asset Age Ratio (Years)
Time elapsed since purchase¹	9	8	7	6	6

2022 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 798 ÷ 91 = 9

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	Activision Blizzard Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in millions)
Property and equipment, net	193)	169)	209)	253)	282)
Land	1)	1)	1)	1)	1)
Depreciation expense	91)	105)	117)	124)	138)
Asset Age Ratio (Years)
Estimated remaining life¹	2	2	2	2	2

2022 Calculations

¹ Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (193 – 1) ÷ 91 = 2

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Asset age ratio	Description	The company
Estimated remaining life		Activision Blizzard Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Activision Blizzard Inc. (NASDAQ:ATVI)

Analysis of Property, Plant and Equipment