Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Activision Blizzard Inc. (NASDAQ:ATVI)

Analysis of Property, Plant and Equipment

Advanced level


Property, Plant and Equipment Disclosure

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

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Land
Buildings
Leasehold improvements 252  248  224  162  109 
Computer equipment 654  700  658  560  431 
Office furniture and other equipment 91  99  92  78  52 
Cost of property and equipment 1,002  1,052  979  805  597 
Accumulated depreciation (749) (770) (685) (547) (408)
Property and equipment, net 253  282  294  258  189 

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

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.’s cost of property and equipment increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
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.’s property and equipment, net decreased from 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

Activision Blizzard Inc., asset age ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 74.83% 73.26% 70.04% 68.03% 68.46%
Estimated total useful life (years) 8 8 8 7 7
Estimated age, time elapsed since purchase (years) 6 6 5 5 5
Estimated remaining life (years) 2 2 2 2 2

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Activision Blizzard Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Activision Blizzard Inc.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Activision Blizzard Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life Activision Blizzard Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 749  770  685  547  408 
Cost of property and equipment 1,002  1,052  979  805  597 
Land
Asset Age Ratio
Average age1 74.83% 73.26% 70.04% 68.03% 68.46%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Cost of property and equipment – Land)
= 100 × 749 ÷ (1,0021) = 74.83%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Activision Blizzard Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of property and equipment 1,002  1,052  979  805  597 
Land
Depreciation expense 124  138  130  121  82 
Asset Age Ratio (Years)
Estimated total useful life1 8 8 8 7 7

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

2019 Calculations

1 Estimated total useful life = (Cost of property and equipment – Land) ÷ Depreciation expense
= (1,0021) ÷ 124 = 8

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Activision Blizzard Inc.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 749  770  685  547  408 
Depreciation expense 124  138  130  121  82 
Asset Age Ratio (Years)
Time elapsed since purchase1 6 6 5 5 5

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 749 ÷ 124 = 6

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Activision Blizzard Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Property and equipment, net 253  282  294  258  189 
Land
Depreciation expense 124  138  130  121  82 
Asset Age Ratio (Years)
Estimated remaining life1 2 2 2 2 2

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

2019 Calculations

1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (2531) ÷ 124 = 2

Asset age ratio Description The company
Estimated remaining life Activision Blizzard Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.