Table:
|  | For the Years Ended December 31, |  |
| --- | --- | --- |
|  | 2019 | 2018 |
| Reconciliation to consolidated net revenues: |  |  |
| Segment net revenues | $5,969 | $6,835 |
| Revenues from non-reportable segments (1) | 462 | 480 |
| Net effect from recognition (deferral) of deferred net revenues (2) | 101 | 238 |
| Elimination of intersegment revenues (3) | (43) | (53) |
| Consolidated net revenues | $6,489 | $7,500 |
| Reconciliation to consolidated income before income tax expense: |  |  |
| Segment operating income | $2,054 | $2,446 |
| Operating income (loss) from non-reportable segments (1) | 24 | 31 |
| Net effect from recognition (deferral) of deferred net revenues and related cost of revenues (2) | 52 | 100 |
| Share-based compensation expense | (166) | (209) |
| Amortization of intangible assets | (203) | (370) |
| Restructuring and related costs (4) | (137) | (10) |
| Discrete tax-related items (5) | (17) | — |
| Consolidated operating income | 1,607 | 1,988 |
| Interest and other expense (income), net | (26) | 71 |
| Loss on extinguishment of debt | — | 40 |
| Consolidated income before income tax expense | $1,633 | $1,877 |
Paragraphs:
Reconciliations of total segment net revenues and total segment operating income to consolidated net revenues and consolidated income before income tax expense are presented in the table below (amounts in millions):
(1) Includes other income and expenses from operating segments managed outside the reportable segments, including our Distribution business. Also includes unallocated corporate income and expenses.
(2) Since certain of our games are hosted online or include significant online functionality that represents a separate performance obligation, we defer the transaction price allocable to the online functionality from the sale of these games and then recognize the attributable revenues over the relevant estimated service periods, which are generally less than a year. The related cost of revenues is deferred and recognized as an expense as the related revenues are recognized. This table reflects the net effect from the deferrals of revenues and recognition of deferred revenues, along with the related cost of revenues, on certain of our online enabled products.
(3) Intersegment revenues reflect licensing and service fees charged between segments.
(4) Reflects restructuring initiatives, which include severance and other restructuring-related costs.
(5) Reflects the impact of other unusual or unique tax‑related items and activities.
Question:
What does intersegment revenues reflect?
Answer: licensing and service fees charged between segments.