Stock Analysis on Net
Stock Analysis on Net
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Activision Blizzard Inc. (NASDAQ:ATVI)

Income Statement

Beginner level

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

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Product sales 1,975  2,255  2,110  2,196  2,447 
Subscription, licensing, and other revenues 4,514  5,245  4,907  4,412  2,217 
Net revenues 6,489  7,500  7,017  6,608  4,664 
Product costs (656) (719) (733) (741) (872)
Software royalties, amortization, and intellectual property licenses (240) (371) (300) (331) (370)
Cost of revenues, product sales (896) (1,090) (1,033) (1,072) (1,242)
Game operations and distribution costs (965) (1,028) (984) (851) (274)
Software royalties, amortization, and intellectual property licenses (233) (399) (484) (471) (69)
Cost of revenues, subscription, licensing, and other revenues (1,198) (1,427) (1,468) (1,322) (343)
Cost of revenues (2,094) (2,517) (2,501) (2,394) (1,585)
Gross profit 4,395  4,983  4,516  4,214  3,079 
Product development (998) (1,101) (1,069) (958) (646)
Sales and marketing (926) (1,062) (1,378) (1,210) (734)
General and administrative (732) (822) (745) (634) (380)
Restructuring and related costs (132) (10) (15) —  — 
Operating income 1,607  1,988  1,309  1,412  1,319 
Interest income 79  65  24  10  — 
Interest expense from debt and amortization of debt discount and deferred financing costs (90) (140) (162) (217) (199)
Unrealized gain on equity investment 38  —  —  —  — 
Other income (expense), net (1) (8) (7)
Interest and other income (expense), net 26  (71) (146) (214) (198)
Loss on extinguishment of debt —  (40) (12) (92) — 
Income before income tax expense 1,633  1,877  1,151  1,106  1,121 
Income tax expense (130) (64) (878) (140) (229)
Net income 1,503  1,813  273  966  892 

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).

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 increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Operating income The net result for the period of deducting operating expenses from operating revenues. Activision Blizzard Inc.’s operating income increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 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 increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
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 increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.