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Press Release: Activision Blizzard Announces -4-

· 02/04/2021 16:14
Goodwill 9,765 9,764 ------------------- ------------------- Total assets $ 23,109 $ 19,845 === ============== === ============== Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 295 $ 292 Deferred revenues 1,689 1,375 Accrued expenses and other liabilities 1,116 1,248 ------------------- ------------------- Total current liabilities 3,100 2,915 Long-term debt, net 3,605 2,675 Deferred income taxes, net 418 505 Other liabilities 949 945 ------------------- ------------------- Total liabilities 8,072 7,040 ------------------- ------------------- Shareholders' equity Common stock -- -- Additional paid-in capital 11,531 11,174 Treasury stock (5,563) (5,563) Retained earnings 9,691 7,813 Accumulated other comprehensive loss (622) (619) ------------------- ------------------- Total shareholders' equity 15,037 12,805 ------------------- ------------------- Total liabilities and shareholders' equity $ 23,109 $ 19,845 === ============== === ============== ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in millions) Year Ended December 31, 2020 2019 --------------- -------------- Cash flows from operating activities: Net income $ 2,197 $ 1,503 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes (94) (352) Non-cash operating lease cost 65 64 Depreciation and amortization 197 328 Amortization of capitalized software development costs and intellectual property licenses(1) 249 225 Share-based compensation expense(2) 218 166 Other 59 19 Changes in operating assets and liabilities: Accounts receivable, net (194) 182 Software development and intellectual property licenses (378) (275) Other assets (119) 171 Deferred revenues 216 (154) Accounts payable (10) 31 Accrued expenses and other liabilities (154) (77) --------------- ------------ Net cash provided by operating activities 2,252 1,831 --------------- ------------ Cash flows from investing activities: Proceeds from maturities of available-for-sale investments 121 153 Purchases of available-for-sale investments (221) (65) Capital expenditures (78) (116) Other investing activities -- 6 --------------- ------------ Net cash used in investing activities (178) (22) --------------- ------------ Cash flows from financing activities: Proceeds from issuance of common stock to employees 170 105 Tax payment related to net share settlements on restricted stock units (39) (59) Dividends paid (316) (283) Proceeds from issuance of debt, net of discounts 1,994 -- Repayment of long-term debt (1,050) -- Payment of financing costs (20) -- Premium payment for early redemption of notes (28) -- --------------- ------------ Net cash provided by (used in) financing activities 711 (237) --------------- ------------ Effect of foreign exchange rate changes on cash and cash equivalents 69 (3) Net increase in cash and cash equivalents and restricted cash 2,854 1,569 --------------- ------------ Cash and cash equivalents and restricted cash at beginning of period 5,798 4,229 Cash and cash equivalents and restricted cash at end of period $ 8,652 $ 5,798 ==== ========= ======== (1) Excludes deferral and amortization of share-based compensation expense. (2) Includes the net effects of capitalization, deferral, and amortization of share-based compensation expense. ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES SUPPLEMENTAL CASH FLOW INFORMATION (Amounts in millions) Year over Three Months Ended Year -------------------------------------------------------------------------------- March June September December March June September December 31, 30, 30, 31, 31, 30, 30, 31, % Increase 2019 2019 2019 2019 2020 2020 2020 2020 (Decrease) ------ ------ ----------- ---------- ------ ------ ----------- ---------- ------------ Cash Flow Data Operating Cash Flow $ 450 $ 154 $ 309 $ 918 $ 148 $ 768 $ 196 $ 1,140 24% Capital Expenditures 18 27 34 37 19 13 24 22 (41) ------ ------ ----------- ---------- ------ ------ ----------- ---------- Non-GAAP Free Cash Flow(1) $ 432 $ 127 $ 275 $ 881 $ 129 $ 755 $ 172 $ 1,118 27 Operating Cash Flow - TTM(2) $1,711 $1,856 $ 1,912 $ 1,831 $1,529 $2,143 $ 2,030 $ 2,252 23 Capital Expenditures - TTM(2) 118 115 113 116 117 103 93 78 (33) ------ ------ ----------- ---------- ------ ------ ----------- ---------- Non-GAAP Free Cash Flow(1) - TTM(2) $1,593 $1,741 $ 1,799 $ 1,715 $1,412 $2,040 $ 1,937 $ 2,174 27% (1) Non-GAAP free cash flow represents operating cash flow minus capital expenditures. (2) TTM represents trailing twelve months. Operating Cash Flow for the three months ended June 30, 2018, three months ended September 30, 2018, and three months ended December 31, 2018 was $9 million, $253 million, and $999 million, respectively. Capital Expenditures for the three months ended June 30, 2018, three months ended September 30, 2018, and three months ended December 31, 2018 was $30 million, $36 million, and $34 million, respectively. ACTIVISION BLIZZARD, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP MEASURES (Amounts in millions, except per share data) Cost of Cost of Revenues--Product Cost of Cost of Revenues--Product Sales: Software Revenues--In-game/Subs/Other: Revenues--In-game/Subs/Other: Restructuring Total Costs Three Months Ended Net Sales: Product Royalties and Game Operations and Software Royalties and Product Sales and General and and related and December 31, 2020 Revenues Costs Amortization Distribution Costs Amortization Development Marketing Administrative costs Expenses ------------------ ----------- ------------------- ------------------- ------------------------------- ------------------------------- ------------- ----------- ---------------- --------------- ------------ GAAP Measurement $ 2,413 $ 349 $ 117 $ 313 $ 39 $ 350 $ 341 $ 255 $ 55 $ 1,819 Share-based

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February 04, 2021 16:14 ET (21:14 GMT)