Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Activision Blizzard Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	324)	285)	295)	292)	253)
Deferred revenues	2,088)	1,118)	1,689)	1,375)	1,493)
Accrued expenses and other liabilities	1,143)	1,008)	1,116)	1,248)	896)
Current liabilities	3,555)	2,411)	3,100)	2,915)	2,642)
Long-term debt, net	3,611)	3,608)	3,605)	2,675)	2,671)
Deferred income taxes, net	158)	506)	418)	505)	18)
Other liabilities	816)	932)	949)	945)	1,147)
Non-current liabilities	4,585)	5,046)	4,972)	4,125)	3,836)
Total liabilities	8,140)	7,457)	8,072)	7,040)	6,478)
Common stock, $0.000001 par value	—)	—)	—)	—)	—)
Additional paid-in capital	12,260)	11,715)	11,531)	11,174)	10,963)
Treasury stock, at cost	(5,563)	(5,563)	(5,563)	(5,563)	(5,563)
Retained earnings	13,171)	12,025)	9,691)	7,813)	6,558)
Accumulated other comprehensive loss	(625)	(578)	(622)	(619)	(601)
Shareholders’ equity	19,243)	17,599)	15,037)	12,805)	11,357)
Total liabilities and shareholders’ equity	27,383)	25,056)	23,109)	19,845)	17,835)

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).

The financial data exhibits distinct trends in both liabilities and equity over the five-year period under review.

Current Liabilities: Current liabilities have shown fluctuations, initially increasing from 2,642 million in 2018 to a peak of 3,100 million in 2020, before declining to 2,411 million in 2021 and then rising sharply to 3,555 million in 2022. Notably, accounts payable steadily increased from 253 million in 2018 to 324 million in 2022, indicating a gradual rise in obligations to suppliers or short-term creditors.
Deferred Revenues: Deferred revenues declined from 1,493 million in 2018 to 1,375 million in 2019 but increased significantly to 1,689 million in 2020, dropped to 1,118 million in 2021, and rose sharply again to 2,088 million in 2022. These changes suggest volatility in the timing or recognition of revenue.
Accrued Expenses and Other Liabilities: Accrued expenses and other liabilities increased substantially from 896 million in 2018 to 1,248 million in 2019, then declined gradually to 1,008 million in 2021 and rose again to 1,143 million in 2022.
Long-term Debt: Long-term debt remained relatively stable around the mid-2,600 to 3,600 million range, increasing notably from 2,675 million in 2019 to about 3,605-3,611 million from 2020 through 2022, evidencing an increase in longer-term borrowing or financing.
Deferred Income Taxes, Net: Deferred income taxes experienced large fluctuations, rising sharply from 18 million in 2018 to 505 million in 2019, then mildly decreasing and increasing again before dropping to 158 million in 2022, indicating variable timing differences in tax obligations.
Other Liabilities: Other liabilities steadily decreased from 1,147 million in 2018 to 816 million in 2022, reflecting a reduction in miscellaneous obligations.
Total Liabilities: Total liabilities increased overall from 6,478 million in 2018 to 8,140 million in 2022, peaking at 8,072 million in 2020. The general upward trend points towards growing financial obligations.
Shareholders’ Equity: Shareholders’ equity demonstrated consistent growth, rising from 11,357 million in 2018 to 19,243 million in 2022. This improvement was driven by rising additional paid-in capital (from 10,963 million to 12,260 million) and substantial increases in retained earnings, which nearly doubled from 6,558 million in 2018 to 13,171 million in 2022. Treasury stock remained constant at negative 5,563 million throughout the period, while accumulated other comprehensive loss showed minor fluctuations around the -600 million range.
Total Liabilities and Shareholders' Equity: The combined total of liabilities and shareholders’ equity increased steadily year-over-year from 17,835 million in 2018 to 27,383 million in 2022, reflecting the expansion in both financial obligations and net assets of the company.

In summary, the data reflects an increase in both liabilities and equity over the observed period. The rising long-term debt and current liabilities indicate increased borrowing and short-term obligations. Simultaneously, the growth in shareholders’ equity driven by retained earnings and additional paid-in capital suggests strengthening capital base and profitability retention. The volatility in deferred revenues and income taxes points to shifts in revenue recognition and tax timing, respectively. Overall, the financial position shows expansion with a balanced increase in liabilities and equity.

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Activision Blizzard Inc. (NASDAQ:ATVI)

Balance Sheet: Liabilities and Stockholders’ Equity