Purchases of available-for-sale investments

[Table of](#i8fbc3dcd16fb4e35b37f64f296545b43_13) [Contents](#i8fbc3dcd16fb4e35b37f64f296545b43_13)ACTIVISION BLIZZARD, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(Amounts in millions)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | For the Three Months Ended March 31, |  |
|   |  | 2022 |  | 2021 |  |  |  |  |  |
| Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |
| Net income |  | $ | 395  |  |  | $ | 619  |  |  |  |  |  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |
| Deferred income taxes |  | (64) |  |  | 3  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Non-cash operating lease cost |  | 18  |  |  | 16  |  |  |  |  |  |  |
| Depreciation and amortization |  | 24  |  |  | 33  |  |  |  |  |  |  |
| Amortization of capitalized software development costs and intellectual property licenses (1) |  | 75  |  |  | 106  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Share-based compensation expense (2) |  | 98  |  |  | 151  |  |  |  |  |  |  |
| Realized and unrealized gain on equity investment  |  | (11) |  |  | —  |  |  |  |  |  |  |
| Other |  | (11) |  |  | (11) |  |  |  |  |  |  |
| Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |
| Accounts receivable, net |  | 440  |  |  | 276  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Software development and intellectual property licenses |  | (104) |  |  | (84) |  |  |  |  |  |  |
| Other assets |  | 125  |  |  | (2) |  |  |  |  |  |  |
| Deferred revenues |  | (278) |  |  | (204) |  |  |  |  |  |  |
| Accounts payable |  | (76) |  |  | (70) |  |  |  |  |  |  |
| Accrued expenses and other liabilities |  | 11  |  |  | 11  |  |  |  |  |  |  |
| Net cash provided by operating activities |  | 642  |  |  | 844  |  |  |  |  |  |  |
| Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |
| Proceeds from maturities of available-for-sale investments |  | 22  |  |  | 16  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Purchases of available-for-sale investments |  | —  |  |  | (80) |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Capital expenditures |  | (15) |  |  | (22) |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Net cash provided by (used in) investing activities |  | 7  |  |  | (86) |  |  |  |  |  |  |
| Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |
| Proceeds from issuance of common stock to employees |  | 16  |  |  | 29  |  |  |  |  |  |  |
| Tax payment related to net share settlements on restricted stock units |  | (113) |  |  | (124) |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Net cash used in financing activities |  | (97) |  |  | (95) |  |  |  |  |  |  |
| Effect of foreign exchange rate changes on cash and cash equivalents |  | (10) |  |  | (28) |  |  |  |  |  |  |
| Net increase in cash and cash equivalents and restricted cash |  | 542  |  |  | 635  |  |  |  |  |  |  |
| Cash and cash equivalents and restricted cash at beginning of period |  | 10,438  |  |  | 8,652  |  |  |  |  |  |  |
| Cash and cash equivalents and restricted cash at end of period |  | $ | 10,980  |  |  | $ | 9,287  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
| Supplemental cash flow information - Non-cash financing activities: |  |  |  |  |  |  |  |  |  |
| Dividends payable |  | $ | 367  |  |  | $ | 365  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |

  
(1)Excludes deferral and amortization of share-based compensation expense, including liability awards accounted for under ASC 718.(2)Includes the net effects of capitalization, deferral, and amortization of share-based compensation expense, including liability awards accounted for under ASC 718.  
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.7
