Activision Blizzard, Inc. and Subsidiaries Consolidated Statements of Cash Flow December 31, (Dollars in millions) Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash provided by operating activities: 2021 2020 2,699 2,197 2019 1,503 2018 2017 1,848 273 Deferred income taxes 7 (94) (352) (35) (181) Provision for inventories 0 0 0 6 33 Non-cash operating lease cost 65 65 64 0 0 Depreciation and amortization 116 197 328 509 888 Amortization and write-off of capitalized software development costs and intellectual property licenses 324 249 225 489 311 Amortization of debt discount and debt financing costs 0 0 0 40 12 Stock-based compensation expense 508 218 166 209 176 Realized and unrealized gain on equity investment (28) (3) (38) 0 0 Other 2 31 42 7 40 Changes in operating assets and liabilities: Accounts receivable 71 (194) 182 (114) (165) Inventories 0 0 0 (5) (26) Software development and intellectual property licenses (426) (378) (275) (372) (301) Other assets (114) (88) 186 (51) (97) Deferred revenues (537) 216 (154) (122) 220 Accounts payable (7) (10) 31 (65) 85 Accrued expenses and other liabilities (266) (154) (77) (554) 945 Net cash provided by operating activities 2,414 2,252 1,831 1,790 2,213 Cash flows from investing activities: Proceeds from sale and maturities of available-for-sale invest 280 121 153 116 80 Purchase of available-for-sale investments (248) (221) (65) (209) (135) Capital expenditures (80) (78) (116) (131) (155) Other investing activities (11) 0 6 (6) 3 Net cash provided by (used in) investing activities (59) (178) (22) (230) (207) Cash flows from financing activities: Proceeds from issuance of common stock to employees 90 170 105 99 178 Tax pmt related to net share settlements on restricted stock Dividends paid (246) (39) (59) (365) (316) (283) (94) (259) (56) (226) Proceeds from issuance of long-term debt 0 1,994 0 0 3,741 Repayment of long-term debt Other financing activities Net cash provided by (used in) financing activities Effect of foreign exchange rate changes 0 (1,050) 0 (1,740) (4,251) 0 (48) (26) (10) (521) 711 (237) (2,020) (624) (48) 69 (3) (31) 76 Net increase (decrease) in cash and cash equivalents 1,786 2,854 1,569 (491) 1,458 Cash and cash equivalents at beginning of year 8,652 5,798 4,229 4,720 3,262 Cash and cash equivalents and restricted cash at end of year 10,438 8,652 5,798 4,229 4,720