Issuance of common stock pursuant to employee stock options (in shares)

[Table of](#i8fbc3dcd16fb4e35b37f64f296545b43_13) [Contents](#i8fbc3dcd16fb4e35b37f64f296545b43_13)ACTIVISION BLIZZARD, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITYFor the Three Months Ended March 31, 2022 and March 31, 2021(Unaudited)(Amounts and shares in millions, except per share data)

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|   | Common Stock |  | Treasury Stock |  | AdditionalPaid-InCapital |  | RetainedEarnings |  | AccumulatedOtherComprehensiveIncome (Loss) |  | TotalShareholders’Equity |
|   | Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |
| Balance at December 31, 2021 | 1,208  |  |  | $ | —  |  |  | (429) |  |  | $ | (5,563) |  |  | $ | 11,715  |  |  | $ | 12,025  |  |  | $ | (578) |  |  | $ | 17,599  |  |
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| Components of comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 395  |  |  | —  |  |  | 395  |  |
| Other comprehensive income (loss) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (8) |  |  | (8) |  |
| Issuance of common stock pursuant to employee stock options | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 15  |  |  | —  |  |  | —  |  |  | 15  |  |
| Issuance of common stock pursuant to restricted stock units | 4  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Restricted stock surrendered for employees’ tax liability | (2) |  |  | —  |  |  | —  |  |  | —  |  |  | (131) |  |  | —  |  |  | —  |  |  | (131) |  |
| Settlement of liability-classified awards in restricted stock units ([Note 10](#i8fbc3dcd16fb4e35b37f64f296545b43_259)) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 204  |  |  | —  |  |  | —  |  |  | 204  |  |
| Share-based compensation expense related to employee stock options and restricted stock units | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 124  |  |  | —  |  |  | —  |  |  | 124  |  |
| Dividends ($0.47 per common share) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (367) |  |  | —  |  |  | (367) |  |
| Balance at March 31, 2022 | 1,210  |  |  | $ | —  |  |  | (429) |  |  | $ | (5,563) |  |  | $ | 11,927  |  |  | $ | 12,053  |  |  | $ | (586) |  |  | $ | 17,831  |  |
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|   | Common Stock |  | Treasury Stock |  | AdditionalPaid-InCapital |  | RetainedEarnings |  | AccumulatedOtherComprehensiveIncome (Loss) |  | TotalShareholders’Equity |
|   | Shares |  | Amount |  | Shares |  | Amount |  |  |  |  |
| Balance at December 31, 2020 | 1,203  |  |  | $ | —  |  |  | (429) |  |  | $ | (5,563) |  |  | $ | 11,531  |  |  | $ | 9,691  |  |  | $ | (622) |  |  | $ | 15,037  |  |
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| Components of comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 619  |  |  | —  |  |  | 619  |  |
| Other comprehensive income (loss) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 22  |  |  | 22  |  |
| Issuance of common stock pursuant to employee stock options | 1  |  |  | —  |  |  | —  |  |  | —  |  |  | 33  |  |  | —  |  |  | —  |  |  | 33  |  |
| Issuance of common stock pursuant to restricted stock units | 4  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |
| Restricted stock surrendered for employees’ tax liability | (2) |  |  | —  |  |  | —  |  |  | —  |  |  | (165) |  |  | —  |  |  | —  |  |  | (165) |  |
| Share-based compensation expense related to employee stock options and restricted stock units | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 150  |  |  | —  |  |  | —  |  |  | 150  |  |
| Dividends ($0.47 per common share) | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (365) |  |  | —  |  |  | (365) |  |
| Balance at March 31, 2021 | 1,206  |  |  | $ | —  |  |  | (429) |  |  | $ | (5,563) |  |  | $ | 11,549  |  |  | $ | 9,945  |  |  | $ | (600) |  |  | $ | 15,331  |  |
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The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.8
