Stock Analysis on Net
Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

Income Statement

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Activision Blizzard Inc., consolidated income statement

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Product sales 2,350  1,975  2,255  2,110  2,196 
In-game, subscription, and other revenues 5,736  4,514  5,245  4,907  4,412 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Product costs (705) (656) (719) (733) (741)
Software royalties, amortization, and intellectual property licenses (269) (240) (371) (300) (331)
Product sales (974) (896) (1,090) (1,033) (1,072)
Game operations and distribution costs (1,131) (965) (1,028) (984) (851)
Software royalties, amortization, and intellectual property licenses (155) (233) (399) (484) (471)
In-game, subscription, and other (1,286) (1,198) (1,427) (1,468) (1,322)
Cost of revenues (2,260) (2,094) (2,517) (2,501) (2,394)
Gross profit 5,826  4,395  4,983  4,516  4,214 
Product development (1,150) (998) (1,101) (1,069) (958)
Sales and marketing (1,064) (926) (1,062) (1,378) (1,210)
General and administrative (784) (732) (822) (745) (634)
Restructuring and related costs (94) (132) (10) (15) — 
Operating income 2,734  1,607  1,988  1,309  1,412 
Interest income 21  79  65  24  10 
Interest expense from debt and amortization of debt discount and deferred financing costs (99) (90) (140) (162) (217)
Unrealized gain on equity investment 38  —  —  — 
Other income (expense), net (12) (1) (8) (7)
Interest and other income (expense), net (87) 26  (71) (146) (214)
Loss on extinguishment of debt (31) —  (40) (12) (92)
Income before income tax expense 2,616  1,633  1,877  1,151  1,106 
Income tax expense (419) (130) (64) (878) (140)
Net income 2,197  1,503  1,813  273  966 

Based on: 10-K (filing date: 2021-02-23), 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).

Income statement item Description The company
Net revenues Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise. Activision Blizzard Inc.’s net revenues decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Operating income The net result for the period of deducting operating expenses from operating revenues. Activision Blizzard Inc.’s operating income decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Income before income tax expense Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest. Activision Blizzard Inc.’s income before income tax expense decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Net income The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Activision Blizzard Inc.’s net income decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.