Analysis of Debt
Total Debt (Carrying Amount)
Activision Blizzard Inc., balance sheet: debt
US$ in millions
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Long-term debt, net | 3,611) | 3,608) | 3,605) | 2,675) | 2,671) | |
| Total long-term debt (carrying amount) | 3,611) | 3,608) | 3,605) | 2,675) | 2,671) |
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 total long-term debt reveals a period of relative stability followed by a significant increase and a subsequent plateau. The carrying amount of debt remained nearly constant between 2018 and 2019 before experiencing a substantial upward shift in 2020, after which the balance remained stable through 2022.
- Initial Stability Period (2018-2019)
- Between December 31, 2018, and December 31, 2019, long-term debt exhibited minimal movement, increasing marginally from 2,671 million US$ to 2,675 million US$. This indicates a period of consistent leverage levels.
- Significant Debt Expansion (2019-2020)
- A notable increase in the carrying amount of total long-term debt occurred during the 2020 fiscal year. The balance rose to 3,605 million US$, representing an increase of approximately 930 million US$, or roughly 34.8% compared to the previous year.
- Stabilization Phase (2020-2022)
- Following the increase in 2020, the debt levels reached a plateau. The carrying amount remained nearly flat for the subsequent two years, ending at 3,611 million US$ on December 31, 2022. The variance between 2020 and 2022 was negligible, suggesting no significant new debt issuance or substantial principal repayments during this window.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| 2021 Notes | —) |
| 2022 Notes | —) |
| 2026 Notes | 810) |
| 2027 Notes | 378) |
| 2030 Notes | 391) |
| 2047 Notes | 353) |
| 2050 Notes | 936) |
| Total long-term debt (fair value) | 2,868) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.79 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 2.96%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.40% | 810) | 28) | |
| 3.40% | 378) | 13) | |
| 1.35% | 391) | 5) | |
| 4.50% | 353) | 16) | |
| 2.50% | 936) | 23) | |
| Total | 2,868) | 85) | |
| 2.96% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 85 ÷ 2,868 = 2.96%