Name: Activision Blizzard Inc. (NASDAQ:ATVI) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Download chart

Activision Blizzard Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	1,513)	2,699)	2,197)	1,503)	1,813)
Deferred income taxes	(164)	7)	(94)	(352)	20)
Non-cash operating lease cost	77)	65)	65)	64)	—)
Depreciation and amortization	106)	116)	197)	328)	509)
Amortization of capitalized software development costs	213)	324)	249)	225)	489)
Share-based compensation expense	462)	508)	218)	166)	209)
Other	(31)	(26)	28)	4)	53)
Accounts receivable, net	(231)	71)	(194)	182)	(114)
Software development	(693)	(426)	(378)	(275)	(372)
Other assets	(140)	(114)	(88)	186)	(56)
Deferred revenues	987)	(537)	216)	(154)	(122)
Accounts payable	37)	(7)	(10)	31)	(65)
Accrued expenses and other liabilities	84)	(266)	(154)	(77)	(574)
Changes in operating assets and liabilities, net of effect of business acquisitions	44)	(1,279)	(608)	(107)	(1,303)
Adjustments to reconcile net income to net cash provided by operating activities	707)	(285)	55)	328)	(23)
Net cash provided by operating activities	2,220)	2,414)	2,252)	1,831)	1,790)
Proceeds from maturities of available-for-sale investments	213)	214)	121)	153)	116)
Proceeds from sale of available-for-sale investments	26)	66)	—)	—)	—)
Purchases of available-for-sale investments	(109)	(248)	(221)	(65)	(209)
Purchases of held-to-maturity investments	(4,899)	—)	—)	—)	—)
Acquisition of business, net of cash acquired	(135)	—)	—)	—)	—)
Capital expenditures	(91)	(80)	(78)	(116)	(131)
Other investing activities	1)	(11)	—)	6)	(6)
Net cash used in investing activities	(4,994)	(59)	(178)	(22)	(230)
Proceeds from issuance of common stock to employees	47)	90)	170)	105)	99)
Tax payment related to net share settlements on restricted stock units	(214)	(246)	(39)	(59)	(94)
Dividends paid	(367)	(365)	(316)	(283)	(259)
Proceeds from debt issuances, net of discounts	—)	—)	1,994)	—)	—)
Repayment of long-term debt	—)	—)	(1,050)	—)	(1,740)
Payment of financing costs	—)	—)	(20)	—)	—)
Premium payment for early redemption of note	—)	—)	(28)	—)	(25)
Other financing activities	—)	—)	—)	—)	(1)
Net cash provided by (used in) financing activities	(534)	(521)	711)	(237)	(2,020)
Effect of foreign exchange rate changes on cash and cash equivalents	(44)	(48)	69)	(3)	(31)
Net increase (decrease) in cash and cash equivalents and restricted cash	(3,352)	1,786)	2,854)	1,569)	(491)
Cash and cash equivalents and restricted cash at beginning of period	10,438)	8,652)	5,798)	4,229)	4,720)
Cash and cash equivalents and restricted cash at end of period	7,086)	10,438)	8,652)	5,798)	4,229)

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 analysis of cash flow activities from 2018 to 2022 reveals a company with strong operational cash generation and a strategic shift in asset allocation toward long-term investments. While net income experienced volatility, net cash provided by operating activities remained consistently robust, indicating high earnings quality and effective working capital management.

Operating Cash Flow Trends: Net cash provided by operating activities demonstrated a steady upward trajectory from 2018 to 2021, rising from 1,790 million US$ to 2,414 million US$, before a slight contraction to 2,220 million US$ in 2022. A notable divergence is observed in 2022, where net income declined to 1,513 million US$ from a peak of 2,699 million US$ in 2021, yet operating cash flow remained strong. This resilience is attributed to significant positive adjustments in deferred revenues, which surged to 987 million US$ in 2022.; Non-cash expenses, specifically share-based compensation, increased significantly over the period, rising from 209 million US$ in 2018 to 462 million US$ in 2022, which served as a persistent additive to operating cash flow.
Investing Activities and Asset Allocation: Investing activities remained relatively muted between 2018 and 2021, characterized by modest capital expenditures ranging from 78 million US$ to 131 million US$. However, 2022 marked a substantial shift in investment strategy, with net cash used in investing activities reaching 4,994 million US$. This was driven almost entirely by the purchase of held-to-maturity investments totaling 4,899 million US$, indicating a strategic move to lock in yields or reallocate liquid reserves into more structured long-term assets.
Financing and Shareholder Returns: The company maintained a consistent policy of returning value to shareholders through dividends, which grew steadily from 259 million US$ in 2018 to 367 million US$ in 2022. Financing activities were primarily characterized by the management of long-term debt, with a significant issuance of 1,994 million US$ in 2020 to offset previous repayments of 1,740 million US$ in 2018 and 1,050 million US$ in 2020.
Liquidity and Cash Position: The cash and cash equivalents position grew aggressively from 4,229 million US$ at the end of 2018 to a peak of 10,438 million US$ by the end of 2021. The subsequent decrease to 7,086 million US$ at the end of 2022 is directly correlated with the large-scale purchase of held-to-maturity investments rather than operational losses or increased capital spending.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?