Activision Blizzard, Inc. and Subsidiaries Consolidated Statements of Cash Flow December 31, (Dollars in millions) 2021 2020 2019 2018 2017 Net income (loss) provided by operating activities: Deferred income taxes Cash flows from operating activities: Adjustments to reconcile net income (loss) to net cash 2,699 30.7% 2,197 27.2% 1,503 23.2% 1,848 24.6% 273 3.9% Provision for inventories Non-cash operating lease cost Depreciation and amortization 116 0.1% (94) -1.2% (352) -5.4% (35) -0.5% (181) -2.6% 0.0% 0 0.0% 0 0.0% 6 0.1% 33 0.5% 0.7% 65 0.8% 64 1.0% 0 0.0% 0 0.0% 1.3% 197 2.4% 328 5.1% 509 6.8% 888 12.7% Amortization and write-off of capitalized software development 0.0% 0.0% 0.0% 0.0% costs and intellectual property licenses 324 3.7% 249 3.1% 225 3.5% 489 6.5% 311 4.4% Amortization of debt discount and debt financing costs 0 0.0% 0 0.0% 0 0.0% 40 0.5% 12 0.2% Stock-based compensation expense 508 5.8% 218 2.7% 166 2.6% 209 2.8% 176 2.5% Realized and unrealized gain on equity investment (28) -0.3% (3) 0.0% (38) -0.6% 0 0.0% 0 0.0% Other 2 0.0% 31 0.4% 42 0.6% 7 0.1% 40 0.6% Changes in operating assets and liabilities: Accounts receivable 71 0.8% (194) -2.4% 182 Inventories 0 0.0% 0 0.0% 0 2.8% 0.0% (114) Software development and intellectual property licenses (426) -4.8% (378) -4.7% (275) Other assets (114) -1.3% (88) -1.1% Deferred revenues (537) -6.1% 216 2.7% Accounts payable (7) -0.1% (10) Accrued expenses and other liabilities (266) Net cash provided by operating activities 2,414 -3.0% 27.4% Cash flows from investing activities: Proceeds from sale and maturities of available-for-sale invest Purchase of available-for-sale investments 280 (248) 3.2% -2.8% -0.1% (154) -1.9% 2,252 27.9% 0.0% 121 1.5% (221) -2.7% Capital expenditures (80) -0.9% Other investing activities Net cash provided by (used in) investing activities (11) (59) -0.1% -0.7% (78) -1.0% 0 0.0% (178) -2.2% -4.2% 186 2.9% (154) -2.4% 31 0.5% (77) -1.2% 1,831 #### 0.0% 153 2.4% (65) -1.0% (116) -1.8% 6 0.1% (22) -0.3% (5) (372) -5.0% (51) -0.7% (122) -1.6% (65) -0.9% (554) -7.4% 1,790 23.9% 0.0% 116 1.5% (209) -2.8% (131) -1.7% (6) -1.5% -0.1% (165) -2.4% (26) (301) -4.3% -0.4% (97) -1.4% 220 3.1% 85 1.2% 945 13.5% 2,213 31.5% 0.0% 80 1.1% (135) -1.9% (155) -2.2% -0.1% 3 0.0% (230) -3.1% (207) -2.9% Cash flows from financing activities: Proceeds from issuance of common stock to employees Tax pmt related to net share settlements on restricted stock Dividends paid 90 1.0% (246) -2.8% (365) -4.1% 170 2.1% (39) -0.5% (316) -3.9% 105 1.6% (59) -0.9% (283) -4.4% 99 1.3% 178 2.5% (94) -1.3% (259) -3.5% (56) -0.8% (226) -3.2% Proceeds from issuance of long-term debt 0 0.0% 1,994 24.7% Repayment of long-term debt Other financing activities 0 0.0% (1,050) -13.0% 0 0 0.0% Net cash provided by (used in) financing activities (521) -5.9% Effect of foreign exchange rate changes (48) -0.5% Net increase (decrease) in cash and cash equivalents 1,786 20.3% Cash and cash equivalents at beginning of year 8,652 98.3% (48) -0.6% 711 8.8% 69 0.9% 2,854 35.3% 5,798 71.7% 0 0.0% 0.0% 0 0.0% (237) -3.7% 0 0.0% (1,740) -23.2% (26) -0.3% (2,020) #### 3,741 53.3% Cash and cash equivalents and restricted cash at end of year 10,438 118.6% 8,652 107.0% (3) 0.0% 1,569 24.2% 4,229 65.2% 5,798 89.4% (31) -0.4% (491) -6.5% 4,720 62.9% 4,229 56.4% (4,251) -60.6% (10) -0.1% (624) -8.9% 76 1.1% 1,458 20.8% 3,262 46.5% 4,720 67.3% 3