Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EA | |
Entity Registrant Name | ELECTRONIC ARTS INC. | |
Entity Central Index Key | 712,515 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 311,745,886 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | |
ASSETS: | |||
Cash and cash equivalents | $ 1,810 | $ 2,068 | [1] |
Short-term investments | 1,069 | 953 | [1] |
Receivables, net of allowances of $134 and $140, respectively | 144 | 362 | [1] |
Inventories | 34 | 36 | [1] |
Deferred income taxes, net | 53 | 54 | [1] |
Other current assets | 216 | 247 | [1] |
Total current assets | 3,326 | 3,720 | [1] |
Property and equipment, net | 444 | 459 | |
Goodwill | 1,713 | 1,713 | [1] |
Acquisition-related intangibles, net | 98 | 111 | [1] |
Deferred income taxes, net | 14 | 13 | [1] |
Other assets | 126 | 131 | [1] |
TOTAL ASSETS | 5,721 | 6,147 | [1] |
LIABILITIES: | |||
Accounts payable | 43 | 68 | [1] |
Accrued and other current liabilities | 603 | 794 | [1] |
Deferred net revenue (online-enabled games) | 775 | 1,283 | [1] |
0.75% Convertible senior notes due 2016, net | 608 | 602 | [1] |
Total current liabilities | 2,029 | 2,747 | [1] |
Income tax obligations | 71 | 70 | [1] |
Deferred income taxes, net | 80 | 80 | [1] |
Other liabilities | 180 | 183 | [1] |
Total liabilities | $ 2,360 | $ 3,080 | [1] |
Commitments and contingencies (See Note 11) | |||
0.75% Convertible senior notes due 2016 (See Note 10) | $ 25 | $ 31 | [1] |
STOCKHOLDERS' EQUITY: | |||
Preferred stock, $0.01 par value. 10 shares authorized | 0 | 0 | [1] |
Common stock, $0.01 par value. 1,000 shares authorized; 311 and 310 shares issued and outstanding, respectively | 3 | 3 | [1] |
Additional paid-in capital | 2,001 | 2,127 | [1] |
Retained earnings | 1,346 | 904 | [1] |
Accumulated other comprehensive income (loss) | (14) | 2 | [1] |
Total stockholders' equity | 3,336 | 3,036 | [1] |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 5,721 | $ 6,147 | [1] |
[1] | Derived from audited consolidated financial statements. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Receivables, allowances | $ 134 | $ 140 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10 | 10 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 311 | 310 |
Common stock, shares outstanding | 311 | 310 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net revenue: | ||
Product | $ 743 | $ 757 |
Service and other | 460 | 457 |
Total net revenue | 1,203 | 1,214 |
Cost of revenue: | ||
Product | 94 | 252 |
Service and other | 79 | 115 |
Total cost of revenue | 173 | 367 |
Gross profit | 1,030 | 847 |
Operating expenses: | ||
Research and development | 296 | 265 |
Marketing and sales | 123 | 130 |
General and administrative | 98 | 88 |
Acquisition-related contingent consideration | 0 | (1) |
Amortization of intangibles | 1 | 3 |
Total operating expenses | 518 | 485 |
Operating income | 512 | 362 |
Interest and other income (expense), net | (3) | (8) |
Income before provision for income taxes | 509 | 354 |
Provision for income taxes | 67 | 19 |
Net income | $ 442 | $ 335 |
Net income per share: | ||
Basic | $ 1.42 | $ 1.07 |
Diluted | $ 1.32 | $ 1.04 |
Number of shares used in computation: | ||
Basic | 311 | 313 |
Diluted | 335 | 322 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 442 | $ 335 |
Other comprehensive income (loss), net of tax: | ||
Change in unrealized net gains and losses on available-for-sale securities | (1) | 0 |
Change in unrealized net gains and losses on derivative instruments | (13) | (1) |
Reclassification adjustment for net realized gains and losses on derivative instruments | (3) | 5 |
Foreign currency translation adjustments | 1 | 20 |
Total other comprehensive income (loss), net of tax | (16) | 24 |
Total comprehensive income | $ 426 | $ 359 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
OPERATING ACTIVITIES | |||
Net income | $ 442 | $ 335 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 49 | 56 | |
Stock-based compensation | 45 | 29 | |
Acquisition-related contingent consideration | 0 | (1) | |
Change in assets and liabilities: | |||
Receivables, net | 219 | 110 | |
Inventories | 3 | 19 | |
Other assets | 26 | 21 | |
Accounts payable | (16) | (43) | |
Accrued and other liabilities | (331) | (84) | |
Deferred income taxes, net | 0 | 1 | |
Deferred net revenue (online-enabled games) | (508) | (439) | |
Net cash provided by (used in) operating activities | (71) | 4 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (24) | (27) | |
Proceeds from maturities and sales of short-term investments | 249 | 155 | |
Purchase of short-term investments | (365) | (335) | |
Net cash used in investing activities | (140) | (207) | |
FINANCING ACTIVITIES | |||
Proceeds from issuance of common stock | 45 | 5 | |
Excess tax benefit from stock-based compensation | 40 | 12 | |
Repurchase and retirement of common stock | (132) | (50) | |
Net cash used in financing activities | (47) | (33) | |
Effect of foreign exchange on cash and cash equivalents | 0 | 8 | |
Decrease in cash and cash equivalents | (258) | (228) | |
Beginning cash and cash equivalents | 2,068 | [1] | 1,782 |
Ending cash and cash equivalents | 1,810 | 1,554 | |
Supplemental cash flow information: | |||
Cash paid during the period for income taxes, net | 21 | 8 | |
Cash paid during the period for interest | $ 3 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 3 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business And Basis Of Presentation | (1) DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION We develop, market, publish and distribute game software content and services that can be played by consumers on a variety of platforms, including video game consoles (such as the PlayStation 3 and 4 from Sony, and the Xbox 360 and Xbox One from Microsoft), PCs, mobile phones and tablets. We deliver our games and services to our players across multiple platforms, through multiple distribution channels, and directly (online and wirelessly). Some of our games are based on our wholly-owned intellectual property ( e.g. , Battlefield, Mass Effect, Need for Speed, Dragon Age, The Sims, SimCity, Bejeweled, and Plants vs. Zombies), and some of our games leverage content that we license from others ( e.g. , FIFA, Madden NFL and Star Wars). We also publish and distribute games developed by third parties ( e.g. , Titanfall ). Our goal is to develop our intellectual properties into year-round businesses available on a range of platforms. Our products and services may be purchased through physical and online retailers, platform providers such as console manufacturers, providers of free-to-download PC games played on the Internet, mobile carriers via streaming and digital downloads, and directly through Origin, our own digital distribution platform. Our fiscal year is reported on a 52 - or 53 -week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ending March 31, 2016 contains 53 weeks and ends on April 2, 2016. Our results of operations for the fiscal year ended March 31, 2015 contained 52 weeks and ended on March 28, 2015. Our results of operations for the three months ended June 30, 2015 contained 14 weeks and ended on July 4, 2015 . Our results of operations for the three months ended June 30, 2014 contained 13 weeks and ended on June 28, 2014. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. The Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting only of normal recurring accruals unless otherwise indicated) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. The results of operations for the current interim periods are not necessarily indicative of results to be expected for the current year or any other period. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2015 , as filed with the United States Securities and Exchange Commission (“SEC”) on May 21, 2015 . Impact of Recently Issued Accounting Standards In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40). The amendments of this ASU will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. The disclosure requirements will be effective for annual periods (and interim periods within those annual periods) ending after December 15, 2015. The amendment may be adopted either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Early adoption is permitted. We expect to adopt this new standard in the first quarter of fiscal year 2017. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Topic 835-30), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this ASU. The disclosure requirements will be effective for annual periods (and interim periods within those annual periods) beginning after December 15, 2015, and will require retrospective application. Early adoption is permitted. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of fiscal year 2018. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, we may adopt the standard in either the first quarter of fiscal year 2018 or 2019. We are currently evaluating the timing and method of adoption and the impact of the new revenue standard on our Consolidated Financial Statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (2) FAIR VALUE MEASUREMENTS There are various valuation techniques used to estimate fair value, the primary one being the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. We measure certain financial and nonfinancial assets and liabilities at fair value on a recurring and nonrecurring basis. Fair Value Hierarchy The three levels of inputs that may be used to measure fair value are as follows: • Level 1 . Quoted prices in active markets for identical assets or liabilities. • Level 2 . Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3 . Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of June 30, 2015 and March 31, 2015 , our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 174 $ 174 $ — $ — Cash equivalents Money market funds 14 14 — — Cash equivalents Available-for-sale securities: Corporate bonds 568 — 568 — Short-term investments and cash equivalents U.S. Treasury securities 218 218 — — Short-term investments U.S. agency securities 191 — 191 — Short-term investments Commercial paper 119 — 119 — Short-term investments and cash equivalents Foreign currency derivatives 9 — 9 — Other current assets Deferred compensation plan assets (a) 9 9 — — Other assets Total assets at fair value $ 1,302 $ 415 $ 887 $ — Liabilities Foreign currency derivatives 12 — 12 — Accrued and other current liabilities Deferred compensation plan liabilities (a) 10 10 — — Other liabilities Total liabilities at fair value $ 22 $ 10 $ 12 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 175 $ 175 $ — $ — Cash equivalents Money market funds 7 7 — — Cash equivalents Available-for-sale securities: Corporate bonds 468 — 468 — Short-term investments and cash equivalents U.S. Treasury securities 214 214 — — Short-term investments U.S. agency securities 180 — 180 — Short-term investments and cash equivalents Commercial paper 140 — 140 — Short-term investments and cash equivalents Foreign currency derivatives 18 — 18 — Other current assets Deferred compensation plan assets (a) 9 9 — — Other assets Total assets at fair value $ 1,211 $ 405 $ 806 $ — Liabilities Foreign currency derivatives 9 — 9 — Accrued and other current liabilities Deferred compensation plan liabilities (a) 9 9 — — Other liabilities Total liabilities at fair value $ 18 $ 9 $ 9 $ — (a) The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2015 , for additional information regarding our Deferred Compensation Plan. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Jun. 30, 2015 | |
Financial Instruments [Abstract] | |
Financial Instruments | (3) FINANCIAL INSTRUMENTS Cash and Cash Equivalents As of June 30, 2015 and March 31, 2015 , our cash and cash equivalents were $1,810 million and $2,068 million , respectively. Cash equivalents were valued at their carrying amounts as they approximate fair value due to the short maturities of these financial instruments. Short-Term Investments Short-term investments consisted of the following as of June 30, 2015 and March 31, 2015 (in millions): As of June 30, 2015 As of March 31, 2015 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 565 $ — $ — $ 565 $ 467 $ — $ — $ 467 U.S. Treasury securities 218 — — 218 214 — — 214 U.S. agency securities 191 — — 191 161 1 — 162 Commercial paper 95 — — 95 110 — — 110 Short-term investments $ 1,069 $ — $ — $ 1,069 $ 952 $ 1 $ — $ 953 We evaluate our investments for impairment quarterly. Factors considered in the review of investments include the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, the severity of the impairment, the reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, our intent to sell and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value, and any contractual terms impacting the prepayment or settlement process. Based on our review, we did not consider these investments to be other-than-temporarily impaired as of June 30, 2015 and March 31, 2015 . The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of June 30, 2015 and March 31, 2015 (in millions): As of June 30, 2015 As of March 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due in 1 year or less $ 454 $ 454 $ 417 $ 417 Due in 1-2 years 369 369 281 281 Due in 2-3 years 243 243 244 245 Due in 3-4 years 3 3 10 10 Short-term investments $ 1,069 $ 1,069 $ 952 $ 953 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | (4) DERIVATIVE FINANCIAL INSTRUMENTS The assets or liabilities associated with our derivative instruments and hedging activities are recorded at fair value in other current assets or accrued and other current liabilities, respectively, on our Condensed Consolidated Balance Sheets. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting. We transact business in various foreign currencies and have significant international sales and expenses denominated in foreign currencies, subjecting us to foreign currency risk. We purchase foreign currency forward contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in certain foreign currencies. Our cash flow risks are primarily related to fluctuations in the Euro, British pound sterling, Canadian dollar, Swedish krona and Australian dollar. In addition, we utilize foreign currency forward contracts to mitigate foreign exchange rate risk associated with foreign-currency-denominated monetary assets and liabilities, primarily intercompany receivables and payables. The foreign currency forward contracts not designated as hedging instruments generally have a contractual term of approximately 3 months or less and are transacted near month-end. We do not use foreign currency forward contracts for speculative trading purposes. Cash Flow Hedging Activities Certain of our forward contracts are designated and qualify as cash flow hedges. The effectiveness of the cash flow hedge contracts, including time value, is assessed monthly using regression analysis, as well as other timing and probability criteria. To qualify for hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows on hedged transactions. The derivative assets or liabilities associated with our hedging activities are recorded at fair value in other current assets or accrued and other current liabilities on our Condensed Consolidated Balance Sheets. The effective portion of gains or losses resulting from changes in the fair value of these hedges is initially reported, net of tax, as a component of accumulated other comprehensive income in stockholders’ equity. The gross amount of the effective portion of gains or losses resulting from changes in the fair value of these hedges is subsequently reclassified into net revenue or research and development expenses, as appropriate, in the period when the forecasted transaction is recognized in our Condensed Consolidated Statements of Operations. In the event that the gains or losses in accumulated other comprehensive income are deemed to be ineffective, the ineffective portion of gains or losses resulting from changes in fair value, if any, is reclassified to interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur, within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income to interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows: As of June 30, 2015 As of March 31, 2015 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 70 $ — $ 3 $ 108 $ — $ 8 Forward contracts to sell $ 679 $ 8 $ 9 $ 508 $ 18 $ 1 The net impact of the effective portion of gains and losses from our cash flow hedging activities in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2015 and 2014 was a gain of $3 million and a loss of $5 million , respectively. During the three months ended June 30, 2015 and 2014 , we reclassified an immaterial amount of the ineffective portion of gains or losses resulting from changes in fair value into interest and other income (expense), net. Balance Sheet Hedging Activities Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives whereby the fair value of the contracts are reported as other current assets or accrued and other current liabilities on our Condensed Consolidated Balance Sheets, and gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. The gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-denominated monetary assets and liabilities, which are also reported in interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. The fair value of our foreign currency forward contracts was measured using Level 2 inputs. Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows: As of June 30, 2015 As of March 31, 2015 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 79 $ — $ — $ 99 $ — $ — Forward contracts to sell $ 98 $ 1 $ — $ 173 $ — $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2015 and 2014 was immaterial, and is included in interest and other income (expense), net. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | (5) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended June 30, 2015 and 2014 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2015 $ (3 ) $ 21 $ (16 ) $ 2 Other comprehensive income (loss) before reclassifications (1 ) (13 ) 1 (13 ) Amounts reclassified from accumulated other comprehensive income (loss) — (3 ) — (3 ) Net current-period other comprehensive income (loss) (1 ) (16 ) 1 (16 ) Balance as of June 30, 2015 $ (4 ) $ 5 $ (15 ) $ (14 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2014 $ (4 ) $ (10 ) $ 51 $ 37 Other comprehensive income (loss) before reclassifications — (1 ) 20 19 Amounts reclassified from accumulated other comprehensive income (loss) — 5 — 5 Net current-period other comprehensive income — 4 20 24 Balance as of June 30, 2014 $ (4 ) $ (6 ) $ 71 $ 61 The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three months ended June 30, 2015 and 2014 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Gains and losses on cash flow hedges from forward contracts Net revenue $ (8 ) $ 3 Research and development 5 2 Total amount reclassified, net of tax $ (3 ) $ 5 The net impact from our cash flow hedging activities in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2015 and 2014 was a gain of $3 million and a loss of $5 million , respectively. |
Goodwill And Acquisition-Relate
Goodwill And Acquisition-Related Intangibles, Net | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Acquisition-Related Intangibles, Net | (6) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET The changes in the carrying amount of goodwill for the three months ended June 30, 2015 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,081 $ — $ — $ 2,081 Accumulated impairment (368 ) — — (368 ) Total $ 1,713 $ — $ — $ 1,713 Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Goodwill is not amortized, but rather subject to at least an annual assessment for impairment by applying a fair value-based test. Acquisition-related intangibles consisted of the following (in millions): As of June 30, 2015 As of March 31, 2015 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 531 $ (450 ) $ 81 $ 531 $ (439 ) $ 92 Trade names and trademarks 130 (113 ) 17 130 (111 ) 19 Registered user base and other intangibles 87 (87 ) — 87 (87 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — Total $ 833 $ (735 ) $ 98 $ 833 $ (722 ) $ 111 Amortization of intangibles for the three months ended June 30, 2015 and 2014 are classified in the Condensed Consolidated Statement of Operations as follows (in millions): Three Months Ended 2015 2014 Cost of service and other $ 8 $ 10 Cost of product 4 4 Operating expenses 1 3 Total $ 13 $ 17 Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, typically from 2 to 14 years . As of June 30, 2015 and March 31, 2015 , the weighted-average remaining useful life for acquisition-related intangible assets was approximately 2.7 years and 2.8 years , respectively. As of June 30, 2015 , future amortization of acquisition-related intangibles that will be recorded in the Condensed Consolidated Statement of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2016 (remaining nine months) $ 40 2017 32 2018 12 2019 8 2020 6 2021 — Total $ 98 |
Royalties And Licenses
Royalties And Licenses | 3 Months Ended |
Jun. 30, 2015 | |
Royalties And Licenses [Abstract] | |
Royalties And Licenses | (7) ROYALTIES AND LICENSES Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and distribution affiliates. License royalties consist of payments made to celebrities, professional sports organizations, movie studios and other organizations for our use of their trademarks, copyrights, personal publicity rights, content and/or other intellectual property. Royalty payments to independent software developers are payments for the development of intellectual property related to our games. Co-publishing and distribution royalties are payments made to third parties for the delivery of products. Royalty-based obligations with content licensors and distribution affiliates are either paid in advance and capitalized as prepaid royalties or are accrued as incurred and subsequently paid. These royalty-based obligations are generally expensed to cost of revenue at the greater of the contractual rate or an effective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. Prepayments made to thinly capitalized independent software developers and co-publishing affiliates are generally made in connection with the development of a particular product, and therefore, we are generally subject to development risk prior to the release of the product. Accordingly, payments that are due prior to completion of a product are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of the product (primarily royalty-based in nature) are generally expensed as cost of revenue. Our contracts with some licensors include minimum guaranteed royalty payments, which are initially recorded as an asset and as a liability at the contractual amount when no performance remains with the licensor. When performance remains with the licensor, we record guarantee payments as an asset when actually paid and as a liability when incurred, rather than recording the asset and liability upon execution of the contract. Royalty liabilities are classified as current liabilities to the extent such royalty payments are contractually due within the next 12 months. Each quarter, we also evaluate the expected future realization of our royalty-based assets, as well as any unrecognized minimum commitments not yet paid to determine amounts we deem unlikely to be realized through product and service sales. Any impairments or losses determined before the launch of a product are generally charged to research and development expense. Impairments or losses determined post-launch are charged to cost of revenue. We evaluate long-lived royalty-based assets for impairment using undiscounted cash flows when impairment indicators exist. If impairment exists, then the assets are written down to fair value. Unrecognized minimum royalty-based commitments are accounted for as executory contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is abandoned ( i.e. , cease use) or the contractual rights to use the intellectual property are terminated. During the three months ended June 30, 2015 , we did not recognize any losses or impairment charges on royalty-based commitments. During the three months ended June 30, 2014 , we recognized a loss of $122 million on a previously unrecognized licensed intellectual property commitment. The $122 million loss relates to the termination of certain rights we previously had to use a licensor’s intellectual property. In addition, because the loss will be paid in installments through March 2022, our accrued loss was computed using the effective interest method. We currently estimate recognizing in future periods through March 2022, approximately $27 million for the accretion of interest expense related to this obligation. This interest expense will be included in cost of revenue in our Condensed Consolidated Statement of Operations. The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of As of Other current assets $ 78 $ 70 Other assets 55 59 Royalty-related assets $ 133 $ 129 At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates, content licensors, and/or independent software developers, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of As of Accrued royalties $ 108 $ 119 Other liabilities 134 131 Royalty-related liabilities $ 242 $ 250 As of June 30, 2015 , we were committed to pay approximately $1,542 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty ( i.e. , delivery of the product or content or other factors) and such commitments were therefore not recorded in our Condensed Consolidated Financial Statements. See Note 11 for further information on our developer and licensor commitments. |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | (8) BALANCE SHEET DETAILS Inventories Inventories as of June 30, 2015 and March 31, 2015 consisted of (in millions): As of As of Finished goods $ 32 $ 35 Raw materials and work in process 2 1 Inventories $ 34 $ 36 Property and Equipment, Net Property and equipment, net, as of June 30, 2015 and March 31, 2015 consisted of (in millions): As of As of Computer, equipment and software $ 651 $ 655 Buildings 315 315 Leasehold improvements 128 126 Office equipment, furniture and fixtures 65 64 Land 62 62 Warehouse, equipment and other 9 9 Construction in progress 7 7 1,237 1,238 Less: accumulated depreciation (793 ) (779 ) Property and equipment, net $ 444 $ 459 During the three months ended June 30, 2015 and 2014 , depreciation expense associated with property and equipment was $30 million and $31 million , respectively. Accrued and Other Current Liabilities Accrued and other current liabilities as of June 30, 2015 and March 31, 2015 consisted of (in millions): As of As of Other accrued expenses $ 231 $ 298 Accrued compensation and benefits 179 263 Accrued royalties 108 119 Deferred net revenue (other) 85 114 Accrued and other current liabilities $ 603 $ 794 Deferred net revenue (other) includes the deferral of subscription revenue, deferrals related to our Switzerland distribution business, advertising revenue, licensing arrangements, and other revenue for which revenue recognition criteria has not been met. Deferred Net Revenue (Online-Enabled Games) Deferred net revenue (online-enabled games) was $775 million and $1,283 million as of June 30, 2015 and March 31, 2015 , respectively. Deferred net revenue (online-enabled games) generally includes the unrecognized revenue from bundled sales of online-enabled games for which we do not have vendor-specific objective evidence of fair value (“VSOE”) for the obligation to provide unspecified updates. We recognize revenue from the sale of online-enabled games for which we do not have VSOE for the unspecified updates on a straight-line basis, generally over an estimated nine-month period beginning in the month after shipment for physical games sold through retail and an estimated six-month period for digitally-distributed games. However, we expense the cost of revenue related to these transactions during the period in which the product is delivered (rather than on a deferred basis). |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) INCOME TAXES We estimate our annual effective tax rate at the end of each quarterly period, and we record the tax effect of certain discrete items, which are unusual or occur infrequently, in the interim period in which they occur, including changes in judgment about deferred tax valuation allowances. In addition, jurisdictions with a projected loss for the year, jurisdictions with a year-to-date loss where no tax benefit can be recognized, and jurisdictions where we are unable to estimate an annual effective tax rate are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter depending on the mix and timing of actual earnings versus annual projections. We recognize deferred tax assets and liabilities for both the expected impact of differences between the financial statement amount and the tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. We record a valuation allowance against deferred tax assets when it is considered more likely than not that all or a portion of our deferred tax assets will not be realized. In making this determination, we are required to give significant weight to evidence that can be objectively verified. It is generally difficult to conclude that a valuation allowance is not needed when there is significant negative evidence, such as cumulative losses in recent years. Forecasts of future taxable income are considered to be less objective than past results. Therefore, cumulative losses weigh heavily in the overall assessment. In addition to considering forecasts of future taxable income, we are also required to evaluate and quantify other possible sources of taxable income in order to assess the realization of our deferred tax assets, namely the reversal of existing deferred tax liabilities, the carry back of losses and credits as allowed under current tax law, and the implementation of tax planning strategies. Evaluating and quantifying these amounts involves significant judgments. Each source of income must be evaluated based on all positive and negative evidence; this evaluation involves assumptions about future activity. Certain taxable temporary differences that are not expected to reverse during the carry forward periods permitted by tax law cannot be considered as a source of future taxable income that may be available to realize the benefit of deferred tax assets. In fiscal year 2015, we reported U.S. pre-tax income, compared to pre-tax losses in each of the last seven fiscal years. We have not yet been able to establish a sustained level of profitability in the U.S. or other sufficient significant positive evidence to conclude that our U.S. deferred tax assets are more likely than not to be realized. Therefore, we continue to maintain a valuation allowance against most of our U.S. deferred tax assets. It is reasonably possible that in fiscal year 2016 we will establish a sustained level of profitability in the U.S. As a result, it is possible that a significant portion of the $539 million valuation allowance recorded against our U.S. deferred tax assets at March 31, 2015 could be reversed by the end of fiscal year 2016. The provision for income taxes reported for the three months ended June 30, 2015 is based on our projected annual effective tax rate for fiscal year 2016 , and also includes certain discrete items recorded during the period. Our effective tax rate for the three months ended June 30, 2015 was a tax expense of 13.2 percent as compared to 5.4 percent for the same period of fiscal year 2015 . The effective tax rate for the three months ended June 30, 2015 and 2014 was reduced, when compared to the statutory rate of 35.0 percent , by the utilization of U.S. deferred tax assets which were subject to a valuation allowance and non-U.S. profits subject to a reduced or zero tax rate. Conversely, the effective tax rate was increased due to a discrete expense of $40 million and $12 million recorded in the three months ended June 30, 2015 and 2014, respectively, for excess tax benefits from stock-based compensation deductions allocated directly to contributed capital. The effective tax rate for the three months ended June 30, 2015 differs from the same period in fiscal year 2015 primarily due to the increase in the discrete expense for excess tax benefits from stock-based compensation deductions. During the three months ended June 30, 2015 , we recorded a net increase of $6 million in gross unrecognized tax benefits. The total gross unrecognized tax benefits as of June 30, 2015 is $260 million . A portion of our unrecognized tax benefits will affect our effective tax rate if they are recognized upon favorable resolution of the uncertain tax positions. As of June 30, 2015 , if recognized, approximately $58 million of the unrecognized tax benefits would affect our effective tax rate and approximately $202 million would result in adjustments to deferred tax assets with corresponding adjustments to the valuation allowance. During the three months ended June 30, 2015 , we recorded a net increase of $1 million for accrued interest and penalties related to tax positions taken on our tax returns. As of June 30, 2015 , the combined amount of accrued interest and penalties related to uncertain tax positions included in income tax obligations on our Condensed Consolidated Balance Sheet was approximately $17 million . We file income tax returns in the United States, including various state and local jurisdictions. Our subsidiaries file tax returns in various foreign jurisdictions, including Canada, France, Germany, Switzerland and the United Kingdom. The IRS is currently examining our returns for fiscal years 2009 through 2011, and we remain subject to income tax examination by the IRS for fiscal years after 2011. We are also currently under income tax examination in the United Kingdom for fiscal years 2010 through 2013, and in Germany for fiscal years 2008 through 2012. We remain subject to income tax examination for several other jurisdictions including in France for fiscal years after 2011, in Germany for fiscal years after 2012, in the United Kingdom for fiscal years after 2013, and in Canada and Switzerland for fiscal years after 2007. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. Although potential resolution of uncertain tax positions involve multiple tax periods and jurisdictions, it is reasonably possible that a reduction of up to $9 million of unrecognized tax benefits may occur within the next 12 months, some of which, depending on the nature of the settlement or expiration of statutes of limitations, may affect the Company’s income tax provision and therefore benefit the resulting effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements. |
Financing Arrangement
Financing Arrangement | 3 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Financing Arrangement | (10) FINANCING ARRANGEMENT 0.75% Convertible Senior Notes Due 2016 In July 2011 , we issued $632.5 million aggregate principal amount of 0.75% Convertible Senior Notes due 2016 (the “Notes”). The Notes are senior unsecured obligations which pay interest semiannually in arrears at a rate of 0.75% per annum on January 15 and July 15 of each year, beginning on January 15, 2012 and will mature on July 15, 2016 , unless purchased earlier or converted in accordance with their terms prior to such date. The Notes are senior in right of payment to any unsecured indebtedness that is expressly subordinated in right of payment to the Notes. Following certain corporate events described in the indenture governing the notes (the “Indenture”) that occur prior to the maturity date, the conversion rate as discussed below will be increased for a holder who elects to convert its Notes in connection with such corporate event in certain circumstances. If we undergo a “fundamental change,” as defined in the Indenture, subject to certain conditions, holders may require us to purchase for cash all or any portion of their Notes. The fundamental change purchase price will be 100 percent of the principal amount of the Notes to be purchased plus any accrued and unpaid interest up to but excluding the fundamental change purchase date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the trustee or the holders of at least 25 percent in principal amount of the outstanding Notes may declare 100 percent of the principal and accrued and unpaid interest on all the Notes to be due and payable. We separately account for the liability and equity components of the Notes. The initial carrying amount of the equity component representing the conversion option is equal to the fair value of the Convertible Note Hedge, as described below, which is a substantially identical instrument and was purchased on the same day as the Notes. The initial carrying amount of the liability component was determined by deducting the fair value of the equity component from the par value of the Notes as a whole, and represents the fair value of a similar liability that does not have an associated convertible feature. A liability of $525 million as of the initial date of issuance was recognized for the principal amount of the Notes representing the present value of the Notes’ cash flows using a discount rate of 4.54 percent . The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the term of the Notes using the effective interest method. The equity component on the date of issuance was $107 million . In accounting for $15 million of issuance costs paid in July 2011 related to the Notes issuance, we allocated $13 million to the liability component and $2 million to the equity component. Debt issuance costs attributable to the liability component are being amortized to interest expense over the term of the Notes, and issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. The Notes are convertible into cash and shares of our common stock based on an initial conversion value of 31.5075 shares of our common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $31.74 per share). Upon conversion of the Notes, holders will receive cash up to the principal amount of each Note, and any excess conversion value will be delivered in shares of our common stock. Prior to April 15, 2016 , the Notes are convertible only if (1) the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130 percent of the conversion price ( $41.26 per share) on each applicable trading day (the “Sales Price Condition”); (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of notes falls below 98 percent of the last reported sale price of our common stock multiplied by the conversion rate on each trading day; or (3) specified corporate transactions, including a change in control, occur. On or after April 15, 2016 , a holder may convert any of its Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate is subject to customary anti-dilution adjustments (for example, certain dividend distributions or tender or exchange offer of our common stock), but will not be adjusted for any accrued and unpaid interest. The Notes are not redeemable prior to maturity except for specified corporate transactions and events of default, and no sinking fund is provided for the Notes. The Notes do not contain any financial covenants. During the fiscal quarter ended June 30, 2015 , the Sales Price Condition was met. As a result, the Notes are convertible at the option of the holder through October 3, 2015, and the carrying value of the Notes continued to be classified as a current liability and the excess of the principal amount over the carrying value of the Notes continued to be classified in temporary equity in the Consolidated Balance Sheets as of June 30, 2015 . The determination of whether or not the Notes are convertible is performed on a quarterly basis. Upon conversion of any Notes, we will deliver cash up to the principal amount of the Notes and any excess conversion value will be delivered in shares of our common stock. As of June 30, 2015 , shares issued upon conversion of the Notes were minimal. Based on the closing price of our common stock of $67.80 at the end of the quarter ended June 30, 2015 , the if-converted value of our Notes in aggregate exceeded their principal amount by $718 million . Subsequent to the quarter ended June 30, 2015 and through August 10, 2015, approximately $170 million principal value of the Notes were converted by holders thereof. The settlement of these conversions will occur during the quarter ended September 30, 2015, and upon settlement, these holders will receive approximately $170 million in cash and a number of shares of our common stock equal in value to the excess conversion value. Based on the closing stock price of our common stock of $67.80 at the end of the quarter ended June 30, 2015 , approximately 3 million shares of our common stock would be issuable to converting holders. The carrying and fair values of the Notes are as follows (in millions): As of As of Principal amount of Notes $ 633 $ 633 Unamortized debt discount of the liability component (25 ) (31 ) Net carrying value of Notes $ 608 $ 602 Fair value of Notes $ 1,342 $ 1,158 The fair value of the Notes is classified as Level 2 within the fair value hierarchy. As of June 30, 2015 , the remaining life of the Notes is approximately 1 year . Convertible Note Hedge and Warrants Issuance In July 2011, we entered into privately negotiated convertible note hedge transactions (the “Convertible Note Hedge”) with certain counterparties to reduce the potential dilution with respect to our common stock upon conversion of the Notes. We paid $107 million for the Convertible Note Hedge, which was recorded as an equity transaction. The Convertible Note Hedge, subject to customary anti-dilution adjustments, provides us with the option to acquire, on a net settlement basis, approximately 19.9 million shares of our common stock equal to the number of shares of our common stock that notionally underlie the Notes at a strike price of $31.74 , which corresponds to the conversion price of the Notes. As of June 30, 2015 , we received a minimal number of shares under the Convertible Note Hedge. Subsequent to June 30, 2015 , we expect to receive a number of shares under the Convertible Note Hedge substantially equal to the number of shares of common stock to be issued in connection with any conversions of the Notes. Separately, in July 2011 we also entered into privately negotiated warrant transactions with certain counterparties whereby we sold to independent third parties warrants (the “Warrants”) to acquire, subject to customary anti-dilution adjustments that are substantially the same as the anti-dilution provisions contained in the Notes, up to 19.9 million shares of our common stock (which is also equal to the number of shares of our common stock that notionally underlie the Notes), with a strike price of $41.14 . The Warrants could have a dilutive effect with respect to our common stock to the extent that the market price per share of our common stock exceeds $41.14 on or prior to the expiration date of the Warrants. The Warrants are exercisable for a period of 60 trading days commencing on October 17, 2016. We received proceeds of $65 million from the sale of the Warrants. Effect of conversion on earning per share (“EPS”) The Notes have no impact on diluted EPS for periods where the average quarterly price of our common stock is below the conversion price of $31.74 per share. Prior to conversion, we will include the effect of the additional shares that may be issued if our common stock price exceeds $31.74 per share using the treasury stock method. If the average price of our common stock exceeds $41.14 per share for a quarterly period, we will also include the effect of the additional potential shares that may be issued related to the Warrants using the treasury stock method. Prior to conversion, the Convertible Note Hedge is not considered for purposes of the EPS calculation, as its effect would be anti-dilutive. Upon conversion, the Convertible Note Hedge is expected to offset the dilutive effect of the Notes when the stock price is above $31.74 per share. See Note 13 for additional information related to our EPS. Credit Facility On March 19, 2015 , we entered into a $500 million senior unsecured revolving credit facility (“Credit Facility”) with a syndicate of banks. The credit facility terminates on March 19, 2020 , and contains an option to arrange with existing lenders and/or new lenders for them to provide up to an aggregate of $250 million in additional commitments for revolving loans. Proceeds of loans made under the credit facility may be used for general corporate purposes. The loans bear interest, at our option, at the base rate plus an applicable spread or an adjusted LIBOR rate plus an applicable spread, in each case with such spread being determined based on our consolidated leverage ratio for the preceding fiscal quarter. We are also obligated to pay other customary fees for a credit facility of this size and type. Interest is due and payable in arrears quarterly for loans bearing interest at the base rate and at the end of an interest period (or at each three month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the adjusted LIBOR rate. Principal, together with all accrued and unpaid interest, is due and payable on March 19, 2020 . The credit agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability to, among other things, incur subsidiary indebtedness, grant liens, dispose of all or substantially all assets and pay dividends or make distributions, in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with a capitalization ratio and maintain a minimum level of total liquidity. The credit agreement contains customary events of default, including among others, non-payment defaults, covenant defaults, cross-defaults to material indebtedness, bankruptcy and insolvency defaults, material judgment of defaults and a change of control default, in each case, subject to customary exceptions for a credit facility of this size and type. The occurrence of an event of default could result in the acceleration of the obligations under the credit facility, an obligation by any guarantors to repay the obligations in full and an increase in the applicable interest rate. As of June 30, 2015 , no amounts were outstanding under the Credit Facility. $2 million of debt issuance costs that were paid in connection with obtaining this credit facility are being amortized to interest expense over the 5 -year term of the Credit Facility. The following table summarizes our interest expense recognized for the three months ended June 30, 2015 and 2014 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions): Three Months Ended 2015 2014 Amortization of debt discount $ (6 ) $ (5 ) Amortization of debt issuance costs (1 ) (1 ) Coupon interest expense (1 ) (1 ) Other interest expense — (1 ) Total interest expense $ (8 ) $ (8 ) |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | (11) COMMITMENTS AND CONTINGENCIES Lease Commitments As of June 30, 2015 , we leased certain facilities, furniture and equipment under non-cancelable operating lease agreements. We were required to pay property taxes, insurance and normal maintenance costs for certain of these facilities and any increases over the base year of these expenses on the remainder of our facilities. Development, Celebrity, League and Content Licenses: Payments and Commitments The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers (“independent artists” or “third-party developers”). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain celebrity, league and content license contracts that contain minimum guarantee payments and marketing commitments that may not be dependent on any deliverables. Celebrities and organizations with whom we have contracts include, but are not limited to: FIFA (Fédération Internationale de Football Association), FIFPRO Foundation, FAPL (Football Association Premier League Limited), and DFL Deutsche Fußball Liga GmbH (German Soccer League) (professional soccer); Dr. Ing. h.c. F. Porsche AG, Ferrari S.p.A. (Need For Speed and Real Racing games); National Basketball Association (professional basketball); PGA TOUR (professional golf); National Hockey League and NHL Players’ Association (professional hockey); National Football League Properties, PLAYERS Inc., and Red Bear Inc. (professional football); Zuffa, LLC (Ultimate Fighting Championship); ESPN (content in EA SPORTS games); Hasbro, Inc. (certain of Hasbro’s board game intellectual properties); Disney Interactive (Star Wars); Fox Digital Entertainment, Inc. (The Simpsons); and Universal Studios Inc. (Minions). These developer and content license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the minimum guaranteed payments and advances against royalties due under royalty-bearing licenses and services agreements, the majority of which are conditional upon performance by the counterparty. These minimum guarantee payments and any related marketing commitments are included in the table below. The following table summarizes our minimum contractual obligations as of June 30, 2015 (in millions): Fiscal Years Ending March 31, 2016 (Remaining Total nine mos.) 2017 2018 2019 2020 2021 Thereafter Unrecognized commitments Developer/licensor commitments $ 1,542 $ 162 $ 233 $ 280 $ 233 $ 209 $ 184 $ 241 Marketing commitments 341 37 63 48 48 48 49 48 Operating leases 192 30 34 26 22 19 15 46 0.75% Convertible Senior Notes due 2016 interest (a) 5 3 2 — — — — — Other purchase obligations 42 25 13 2 1 1 — — Total unrecognized commitments 2,122 257 345 356 304 277 248 335 Recognized commitments 0.75% Convertible Senior Notes due 2016 principal (a) 633 633 — — — — — — Licensing and lease obligations (b) 163 16 22 23 24 25 26 27 Total recognized commitments 796 649 22 23 24 25 26 27 Total commitments $ 2,918 $ 906 $ 367 $ 379 $ 328 $ 302 $ 274 $ 362 (a) We will be obligated to pay the $632.5 million principal amount of the Notes in cash and any excess conversion value in shares of our common stock upon redemption of the Notes at maturity on July 15, 2016 , or upon earlier conversion. During the quarter ended June 30, 2015 , the Sales Price Condition was met and as a result, the Notes are currently convertible at the option of the holder though October 3, 2015. Subsequent to quarter end and through August 10, 2015, the Company received conversion notices representing approximately $170 million principal of the Notes. See Note 10 for additional information regarding our Notes. (b) Lease commitments have not been reduced for approximately $3 million due in the future from third parties under non-cancelable sub-leases. See Note 7 for additional information regarding recognized obligations from our licensing-related commitments. The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Condensed Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of June 30, 2015 ; however, certain payment obligations may be accelerated depending on the performance of our operating results. Up to $32 million of the unrecognized amounts in the table above may be payable, at the licensor’s election, in shares of our common stock, subject to a $10 million maximum during any fiscal year. The number of shares to be issued will be based on fair market value at the time of issuance. In addition to what is included in the table above, as of June 30, 2015 , we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $69 million , of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. Legal Proceedings We are a defendant in several actions that allege we misappropriated the likenesses of various college athletes in certain of our college-themed sports games. In September 2013, we reached an agreement to settle all actions brought by college athletes against us. We recognized a $30 million accrual during the three months ended September 30, 2013 associated with the settlement. On September 3, 2014, the United States District Court for the Northern District of California granted preliminary approval of the settlement, and on July 16, 2015, a hearing was conducted regarding final approval of the settlement. On July 29, 2010, Michael Davis, a former NFL running back, filed a putative class action in the United States District Court for the Northern District of California against the Company, alleging that certain past versions of Madden NFL included the images of certain retired NFL players without their permission. In March 2012, the trial court denied the Company’s request to dismiss the complaint on First Amendment grounds. In January 2015, that trial court decision was affirmed by the Ninth Circuit Court of Appeals and the case was remanded back to the district court. The Company intends to seek further court review. On December 17, 2013, a purported shareholder class action lawsuit was filed in the United States District Court for the Northern District of California against the Company and certain of its officers by an individual purporting to represent a class of purchasers of EA common stock. A second purported shareholder class action lawsuit alleging substantially similar claims was subsequently filed in the same court. These lawsuits were consolidated into one action. The lawsuits, which assert claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934, alleged, among other things, that the Company and certain of its officers issued materially false and misleading statements regarding the rollout of the Company’s Battlefield 4 game. We filed a motion seeking dismissal of all claims on January 15, 2015 and on April 30, 2015, the court granted our motion to dismiss with prejudice. We are also subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Condensed Consolidated Financial Statements. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (12) STOCK-BASED COMPENSATION Valuation Assumptions We estimate the fair value of stock-based payment awards on the date of grant. We recognize compensation costs for stock-based payment awards to employees based on the grant-date fair value over the service period for which such awards are expected to vest. For awards with only service conditions that have a graded vesting schedule, we recognize compensation costs on a straight-line basis over the requisite service period for the entire award. The determination of the fair value of market-based restricted stock units, stock options and ESPP is affected by assumptions regarding subjective and complex variables. Generally, our assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. We determine the fair value of our stock-based payment awards as follows: • Restricted Stock Units, Restricted Stock, and Performance-Based Restricted Stock Units . The fair value of restricted stock units, restricted stock, and performance-based restricted stock units (other than market-based restricted stock units) is determined based on the quoted market price of our common stock on the date of grant. Performance-based restricted stock units include grants made in connection with certain acquisitions. • Market-Based Restricted Stock Units . Market-based restricted stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “market-based restricted stock units”). The fair value of our market-based restricted stock units is determined using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. • Stock Options and Employee Stock Purchase Plan . The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2000 Employee Stock Purchase Plan (“ESPP”), respectively, is determined using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility and implied volatility of publicly-traded options on our common stock. Expected term is determined based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. There were no ESPP shares issued during the three months ended June 30, 2015 and 2014 . There were an insignificant number of stock options granted during the three months ended June 30, 2015 . The estimated assumptions used in the Black-Scholes valuation model to value our stock option grants were as follows: Three Months Ended 2014 Risk-free interest rate 1.1 - 1.8% Expected volatility 37 - 40% Weighted-average volatility 38 % Expected term 4.5 years Expected dividends None The estimated assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Three Months Ended 2015 2014 Risk-free interest rate 1.0 % 0.9 % Expected volatility 14 - 50% 16 - 79% Weighted-average volatility 26 % 30 % Expected dividends None None Stock-Based Compensation Expense Employee stock-based compensation expense recognized during the three months ended June 30, 2015 and 2014 was calculated based on awards ultimately expected to vest and has been reduced for estimated forfeitures. In subsequent periods, if actual forfeitures differ from those estimates, an adjustment to stock-based compensation expense will be recognized at that time. The following table summarizes stock-based compensation expense resulting from stock options, restricted stock, restricted stock units, performance-based restricted stock units, market-based restricted stock units, and the ESPP included in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended 2015 2014 Research and development $ 26 $ 16 Marketing and sales 5 4 General and administrative 14 9 Stock-based compensation expense $ 45 $ 29 During the three months ended June 30, 2015 and 2014 , we did not recognize any benefit from income taxes related to our stock-based compensation expense. As of June 30, 2015 , our total unrecognized compensation cost related to stock options was $14 million and is expected to be recognized over a weighted-average service period of 2.0 years . As of June 30, 2015 , our total unrecognized compensation cost related to restricted stock and restricted stock units (collectively referred to as “restricted stock rights”) was $345 million and is expected to be recognized over a weighted-average service period of 1.8 years . Of the $345 million of unrecognized compensation cost, $41 million relates to market-based restricted stock units. During the three months ended June 30, 2015 and 2014 , we recognized $40 million and $12 million , respectively, of excess tax benefit from stock-based compensation deductions; this amount is reported in the financing activities on our Condensed Consolidated Statement of Cash Flows. Stock Options The following table summarizes our stock option activity for the three months ended June 30, 2015 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2015 4,920 $ 37.44 Granted 2 59.33 Exercised (985 ) 45.79 Forfeited, cancelled or expired (49 ) 35.41 Outstanding as of June 30, 2015 3,888 $ 35.35 5.84 $ 126 Vested and expected to vest 3,648 $ 35.61 5.65 $ 117 Exercisable as of June 30, 2015 2,456 $ 37.59 4.18 $ 74 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of June 30, 2015 , which would have been received by the option holders had all the option holders exercised their options as of that date. The weighted-average grant date fair values of stock options granted during three months ended June 30, 2014 was $12.00 . We issue new common stock from our authorized shares upon the exercise of stock options. Restricted Stock Rights The following table summarizes our restricted stock rights activity, excluding performance-based restricted stock unit activity which is discussed below, for the three months ended June 30, 2015 : Restricted Stock Rights (in thousands) Weighted- Average Grant Date Fair Values Balance as of March 31, 2015 10,855 $ 26.20 Granted 2,177 62.64 Vested (4,714 ) 20.55 Forfeited or cancelled (368 ) 29.96 Balance as of June 30, 2015 7,950 $ 39.35 The weighted-average grant date fair values of restricted stock rights granted during the three months ended June 30, 2015 and 2014 were $62.64 and $35.49 , respectively. Market-Based Restricted Stock Units Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and service conditions. If these market conditions are not met but service conditions are met, the market-based restricted stock units will not vest; however, any compensation expense we have recognized to date will not be reversed. The number of shares of common stock to be received at vesting will range from zero percent to 200 percent of the target number of market-based restricted stock units based on our total stockholder return (“TSR”) relative to the performance of companies in the NASDAQ-100 Index for each measurement period, generally over a one-year, two-year cumulative and three-year cumulative period. In the table below, we present shares granted at 100 percent of target of the number of market-based restricted stock units that may potentially vest. The maximum number of common shares that could vest is approximately 0.8 million for market-based restricted stock units granted during the three months ended June 30, 2015 . As of June 30, 2015 , the maximum number of shares that could vest is approximately 1.3 million for market-based restricted stock units outstanding. The following table summarizes our market-based restricted stock unit activity for the three months ended June 30, 2015 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Balance as of March 31, 2015 663 $ 31.82 Granted 395 79.81 Vested (742 ) 25.77 Vested above target 371 25.77 Forfeited or cancelled (45 ) 34.84 Balance as of June 30, 2015 642 $ 69.51 Stock Repurchase Program In May 2014, a special committee of our Board of Directors, on behalf of the full Board of Directors, authorized a two-year program to repurchase up to $750 million of our common stock. Since inception, we repurchased approximately 9.2 million shares for approximately $394 million under this program. In May 2015, our Board of Directors authorized a new program to repurchase up to $1 billion of our common stock. This new stock repurchase program, which expires on May 31, 2017, supersedes and replaces the stock repurchase authorization approved in May 2014. Under this program, we may purchase stock in the open market or through privately-negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase any specific number of shares under this program and it may be modified, suspended or discontinued at any time. During the three months ended June 30, 2015 , we repurchased approximately 2.2 million shares for approximately $132 million . We continue to actively repurchase shares. The following table summarizes total shares repurchased during the three months ended June 30, 2015 and 2014 : May 2014 Program May 2015 Program Total (in millions) Shares Amount Shares Amount Share Amount Three Months Ended June 30, 2015 1 $ 57 1 $ 75 2 $ 132 Three Months Ended June 30, 2014 1 $ 50 — — 1 $ 50 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Net Income (Loss) Per Share | (13) NET INCOME PER SHARE The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, common stock through our ESPP, warrants, and other convertible securities using the treasury stock method. Three Months Ended June 30, (In millions, except per share amounts) 2015 2014 Net income $ 442 $ 335 Shares used to compute net income per share: Weighted-average common stock outstanding — basic 311 313 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 8 8 Dilutive potential common shares related to the Notes 10 1 Dilutive potential common shares related to the Warrants 6 — Weighted-average common stock outstanding — diluted 335 322 Net income per share: Basic $ 1.42 $ 1.07 Diluted $ 1.32 $ 1.04 For the three months ended June 30, 2015 and 2014 , options to purchase, restricted stock units and restricted stock to be released were immaterial and 4 million shares, respectively, and were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. For the three months ended June 30, 2014 , potentially dilutive shares of common stock related to our Warrants, which have a conversion price of $41.14 per share, were excluded from the computation of Diluted EPS as their inclusion would have had an antidilutive effect resulting from the conversion price. The associated Convertible Note Hedge was excluded from the computation of diluted shares as the impact is always considered antidilutive. See Note 10 for additional information related to our 0.75% Convertible Senior Notes due 2016 and related Convertible Note Hedge and Warrants. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | (14) SEGMENT INFORMATION Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. Our CODM currently reviews total company operating results to assess overall performance and allocate resources. The following table summarizes the financial performance of our current segment operating profit and a reconciliation to our consolidated operating income for the three months ended June 30, 2015 and 2014 . Three Months Ended 2015 2014 Segment: Net revenue before revenue deferral $ 693 $ 775 Depreciation (30 ) (31 ) Other expenses (603 ) (659 ) Segment operating profit 60 85 Reconciliation to consolidated operating income: Other: Revenue deferral (495 ) (623 ) Recognition of revenue deferral 1,005 1,062 Amortization of intangibles (13 ) (17 ) Acquisition-related contingent consideration — 1 Stock-based compensation (45 ) (29 ) Loss on licensed intellectual property commitment — (122 ) Other expenses — 5 Consolidated operating income $ 512 $ 362 Our segment profit differs from consolidated operating income primarily due to the exclusion of (1) the deferral of net revenue related to online-enabled games (see Note 8 for additional information regarding deferred net revenue (online-enabled games)), (2) certain non-cash costs such as stock-based compensation, (3) acquisition-related expenses such as amortization of intangibles and acquisition-related contingent consideration, and (4) other significant non-recurring costs that may not be indicative of the company’s core business, operating results or future outlook. Our CODM reviews assets on a consolidated basis and not on a segment basis. Information about our total net revenue by revenue composition and by platform for the three months ended June 30, 2015 and 2014 is presented below (in millions): Three Months Ended 2015 2014 Packaged goods and other $ 580 $ 678 Digital 623 536 Net revenue $ 1,203 $ 1,214 Three Months Ended 2015 2014 Platform net revenue Xbox One, PlayStation 4 $ 487 $ 293 Xbox 360, PlayStation 3 293 543 Other consoles 2 3 Total consoles 782 839 PC / Browser 253 231 Mobile 145 123 Other 23 21 Net revenue $ 1,203 $ 1,214 Net revenue from unaffiliated customers in North America and internationally for the three months ended June 30, 2015 and 2014 is presented below (in millions): Three Months Ended 2015 2014 Net revenue from unaffiliated customers North America $ 506 $ 522 International 697 692 Net revenue $ 1,203 $ 1,214 Long-lived assets in North America and internationally as of June 30, 2015 and March 31, 2015 is presented below (in millions): As of As of Long-lived assets North America $ 1,782 $ 1,809 International 473 474 Total $ 2,255 $ 2,283 We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services. Note that revenue attributed to the legal entity that makes the sale is often not the country where the consumer resides. For example, revenue generated by our Swiss legal entities includes digital revenue from consumers who reside outside of Switzerland, including consumers who reside outside of Europe. Revenue generated by our Swiss legal entities during the three months ended June 30, 2015 and 2014 represented $532 million and $440 million , or 44 percent and 36 percent , of our total net revenue, respectively. Revenue generated in the United States represents over 99 percent of our total North America net revenue. There were no other countries with net revenue greater than 10 percent . Our direct sales to Microsoft, Sony and Apple represented approximately 15 percent , 14 percent and 12 percent of total net revenue, respectively, during the three months ended June 30, 2015 . Our direct sales to GameStop Corp. represented approximately 11 percent of total net revenue during the three months ended June 30, 2014 , respectively. |
Description Of Business And B21
Description Of Business And Basis Of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Impact of recently issued accounting standards | Impact of Recently Issued Accounting Standards In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40). The amendments of this ASU will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. The disclosure requirements will be effective for annual periods (and interim periods within those annual periods) ending after December 15, 2015. The amendment may be adopted either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Early adoption is permitted. We expect to adopt this new standard in the first quarter of fiscal year 2017. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Topic 835-30), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this ASU. The disclosure requirements will be effective for annual periods (and interim periods within those annual periods) beginning after December 15, 2015, and will require retrospective application. Early adoption is permitted. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of fiscal year 2018. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, we may adopt the standard in either the first quarter of fiscal year 2018 or 2019. We are currently evaluating the timing and method of adoption and the impact of the new revenue standard on our Consolidated Financial Statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Measured On Recurring Basis | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 175 $ 175 $ — $ — Cash equivalents Money market funds 7 7 — — Cash equivalents Available-for-sale securities: Corporate bonds 468 — 468 — Short-term investments and cash equivalents U.S. Treasury securities 214 214 — — Short-term investments U.S. agency securities 180 — 180 — Short-term investments and cash equivalents Commercial paper 140 — 140 — Short-term investments and cash equivalents Foreign currency derivatives 18 — 18 — Other current assets Deferred compensation plan assets (a) 9 9 — — Other assets Total assets at fair value $ 1,211 $ 405 $ 806 $ — Liabilities Foreign currency derivatives 9 — 9 — Accrued and other current liabilities Deferred compensation plan liabilities (a) 9 9 — — Other liabilities Total liabilities at fair value $ 18 $ 9 $ 9 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 174 $ 174 $ — $ — Cash equivalents Money market funds 14 14 — — Cash equivalents Available-for-sale securities: Corporate bonds 568 — 568 — Short-term investments and cash equivalents U.S. Treasury securities 218 218 — — Short-term investments U.S. agency securities 191 — 191 — Short-term investments Commercial paper 119 — 119 — Short-term investments and cash equivalents Foreign currency derivatives 9 — 9 — Other current assets Deferred compensation plan assets (a) 9 9 — — Other assets Total assets at fair value $ 1,302 $ 415 $ 887 $ — Liabilities Foreign currency derivatives 12 — 12 — Accrued and other current liabilities Deferred compensation plan liabilities (a) 10 10 — — Other liabilities Total liabilities at fair value $ 22 $ 10 $ 12 $ — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Financial Instruments [Abstract] | |
Fair Value Of Short-Term Investments | Short-term investments consisted of the following as of June 30, 2015 and March 31, 2015 (in millions): As of June 30, 2015 As of March 31, 2015 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 565 $ — $ — $ 565 $ 467 $ — $ — $ 467 U.S. Treasury securities 218 — — 218 214 — — 214 U.S. agency securities 191 — — 191 161 1 — 162 Commercial paper 95 — — 95 110 — — 110 Short-term investments $ 1,069 $ — $ — $ 1,069 $ 952 $ 1 $ — $ 953 |
Fair Value Of Short-Term Investments By Stated Maturity Date Schedule | The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of June 30, 2015 and March 31, 2015 (in millions): As of June 30, 2015 As of March 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due in 1 year or less $ 454 $ 454 $ 417 $ 417 Due in 1-2 years 369 369 281 281 Due in 2-3 years 243 243 244 245 Due in 3-4 years 3 3 10 10 Short-term investments $ 1,069 $ 1,069 $ 952 $ 953 |
Derivative Financial Instrume24
Derivative Financial Instruments Derivative Financial Instruments (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows: As of June 30, 2015 As of March 31, 2015 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 70 $ — $ 3 $ 108 $ — $ 8 Forward contracts to sell $ 679 $ 8 $ 9 $ 508 $ 18 $ 1 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows: As of June 30, 2015 As of March 31, 2015 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 79 $ — $ — $ 99 $ — $ — Forward contracts to sell $ 98 $ 1 $ — $ 173 $ — $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2015 and 2014 was immaterial, and is included in interest and other income (expense), net. |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended June 30, 2015 and 2014 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2015 $ (3 ) $ 21 $ (16 ) $ 2 Other comprehensive income (loss) before reclassifications (1 ) (13 ) 1 (13 ) Amounts reclassified from accumulated other comprehensive income (loss) — (3 ) — (3 ) Net current-period other comprehensive income (loss) (1 ) (16 ) 1 (16 ) Balance as of June 30, 2015 $ (4 ) $ 5 $ (15 ) $ (14 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2014 $ (4 ) $ (10 ) $ 51 $ 37 Other comprehensive income (loss) before reclassifications — (1 ) 20 19 Amounts reclassified from accumulated other comprehensive income (loss) — 5 — 5 Net current-period other comprehensive income — 4 20 24 Balance as of June 30, 2014 $ (4 ) $ (6 ) $ 71 $ 61 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three months ended June 30, 2015 and 2014 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Gains and losses on cash flow hedges from forward contracts Net revenue $ (8 ) $ 3 Research and development 5 2 Total amount reclassified, net of tax $ (3 ) $ 5 The net impact from our cash flow hedging activities in our Condensed Consolidated Statements of Operations for the three months ended June 30, 2015 and 2014 was a gain of $3 million and a loss of $5 million , respectively. |
Goodwill And Acquisition-Rela26
Goodwill And Acquisition-Related Intangibles, Net (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In The Carrying Amount Of Goodwill | The changes in the carrying amount of goodwill for the three months ended June 30, 2015 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,081 $ — $ — $ 2,081 Accumulated impairment (368 ) — — (368 ) Total $ 1,713 $ — $ — $ 1,713 |
Schedule Of Acquisition-Related Intangibles | Acquisition-related intangibles consisted of the following (in millions): As of June 30, 2015 As of March 31, 2015 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 531 $ (450 ) $ 81 $ 531 $ (439 ) $ 92 Trade names and trademarks 130 (113 ) 17 130 (111 ) 19 Registered user base and other intangibles 87 (87 ) — 87 (87 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — Total $ 833 $ (735 ) $ 98 $ 833 $ (722 ) $ 111 |
Schedule Of Amoritization Of Intangibles | Amortization of intangibles for the three months ended June 30, 2015 and 2014 are classified in the Condensed Consolidated Statement of Operations as follows (in millions): Three Months Ended 2015 2014 Cost of service and other $ 8 $ 10 Cost of product 4 4 Operating expenses 1 3 Total $ 13 $ 17 |
Schedule Of Future Amortization Of Acquisition-Related Intangibles | As of June 30, 2015 , future amortization of acquisition-related intangibles that will be recorded in the Condensed Consolidated Statement of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2016 (remaining nine months) $ 40 2017 32 2018 12 2019 8 2020 6 2021 — Total $ 98 |
Royalties And Licenses (Tables)
Royalties And Licenses (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Royalties And Licenses [Abstract] | |
Schedule Of Royalty-Related Assets | The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of As of Other current assets $ 78 $ 70 Other assets 55 59 Royalty-related assets $ 133 $ 129 |
Schedule Of Royalty-Related Liabilities | The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of As of Accrued royalties $ 108 $ 119 Other liabilities 134 131 Royalty-related liabilities $ 242 $ 250 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Inventories Schedule | Inventories as of June 30, 2015 and March 31, 2015 consisted of (in millions): As of As of Finished goods $ 32 $ 35 Raw materials and work in process 2 1 Inventories $ 34 $ 36 |
Property And Equipment, Net Schedule | Property and equipment, net, as of June 30, 2015 and March 31, 2015 consisted of (in millions): As of As of Computer, equipment and software $ 651 $ 655 Buildings 315 315 Leasehold improvements 128 126 Office equipment, furniture and fixtures 65 64 Land 62 62 Warehouse, equipment and other 9 9 Construction in progress 7 7 1,237 1,238 Less: accumulated depreciation (793 ) (779 ) Property and equipment, net $ 444 $ 459 |
Accrued And Other Current Liabilities Schedule | Accrued and other current liabilities as of June 30, 2015 and March 31, 2015 consisted of (in millions): As of As of Other accrued expenses $ 231 $ 298 Accrued compensation and benefits 179 263 Accrued royalties 108 119 Deferred net revenue (other) 85 114 Accrued and other current liabilities $ 603 $ 794 |
Financing Arrangement (Tables)
Financing Arrangement (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Debt Instruments [Abstract] | |
Carrying Values Of Liability And Equity Components Of Notes | The carrying and fair values of the Notes are as follows (in millions): As of As of Principal amount of Notes $ 633 $ 633 Unamortized debt discount of the liability component (25 ) (31 ) Net carrying value of Notes $ 608 $ 602 Fair value of Notes $ 1,342 $ 1,158 |
Schedule Of Interest Expense | The following table summarizes our interest expense recognized for the three months ended June 30, 2015 and 2014 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions): Three Months Ended 2015 2014 Amortization of debt discount $ (6 ) $ (5 ) Amortization of debt issuance costs (1 ) (1 ) Coupon interest expense (1 ) (1 ) Other interest expense — (1 ) Total interest expense $ (8 ) $ (8 ) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Contractual Obligations | The following table summarizes our minimum contractual obligations as of June 30, 2015 (in millions): Fiscal Years Ending March 31, 2016 (Remaining Total nine mos.) 2017 2018 2019 2020 2021 Thereafter Unrecognized commitments Developer/licensor commitments $ 1,542 $ 162 $ 233 $ 280 $ 233 $ 209 $ 184 $ 241 Marketing commitments 341 37 63 48 48 48 49 48 Operating leases 192 30 34 26 22 19 15 46 0.75% Convertible Senior Notes due 2016 interest (a) 5 3 2 — — — — — Other purchase obligations 42 25 13 2 1 1 — — Total unrecognized commitments 2,122 257 345 356 304 277 248 335 Recognized commitments 0.75% Convertible Senior Notes due 2016 principal (a) 633 633 — — — — — — Licensing and lease obligations (b) 163 16 22 23 24 25 26 27 Total recognized commitments 796 649 22 23 24 25 26 27 Total commitments $ 2,918 $ 906 $ 367 $ 379 $ 328 $ 302 $ 274 $ 362 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used in the Black-Scholes valuation model | Three Months Ended 2014 Risk-free interest rate 1.1 - 1.8% Expected volatility 37 - 40% Weighted-average volatility 38 % Expected term 4.5 years Expected dividends None |
Schedule Of Assumptions Used In Monte Carlo Simulation Model | Three Months Ended 2015 2014 Risk-free interest rate 1.0 % 0.9 % Expected volatility 14 - 50% 16 - 79% Weighted-average volatility 26 % 30 % Expected dividends None None |
Schedule Of Stock-Based Compensation Expense By Statement Of Operations | Three Months Ended 2015 2014 Research and development $ 26 $ 16 Marketing and sales 5 4 General and administrative 14 9 Stock-based compensation expense $ 45 $ 29 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2015 4,920 $ 37.44 Granted 2 59.33 Exercised (985 ) 45.79 Forfeited, cancelled or expired (49 ) 35.41 Outstanding as of June 30, 2015 3,888 $ 35.35 5.84 $ 126 Vested and expected to vest 3,648 $ 35.61 5.65 $ 117 Exercisable as of June 30, 2015 2,456 $ 37.59 4.18 $ 74 |
Restricted Stock Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Restricted Stock Rights (in thousands) Weighted- Average Grant Date Fair Values Balance as of March 31, 2015 10,855 $ 26.20 Granted 2,177 62.64 Vested (4,714 ) 20.55 Forfeited or cancelled (368 ) 29.96 Balance as of June 30, 2015 7,950 $ 39.35 |
Market-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Balance as of March 31, 2015 663 $ 31.82 Granted 395 79.81 Vested (742 ) 25.77 Vested above target 371 25.77 Forfeited or cancelled (45 ) 34.84 Balance as of June 30, 2015 642 $ 69.51 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic Earnings And Diluted Earnings Per Share | The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, common stock through our ESPP, warrants, and other convertible securities using the treasury stock method. Three Months Ended June 30, (In millions, except per share amounts) 2015 2014 Net income $ 442 $ 335 Shares used to compute net income per share: Weighted-average common stock outstanding — basic 311 313 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 8 8 Dilutive potential common shares related to the Notes 10 1 Dilutive potential common shares related to the Warrants 6 — Weighted-average common stock outstanding — diluted 335 322 Net income per share: Basic $ 1.42 $ 1.07 Diluted $ 1.32 $ 1.04 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation Of Segment Operating Profit To Consolidated Operating Income | The following table summarizes the financial performance of our current segment operating profit and a reconciliation to our consolidated operating income for the three months ended June 30, 2015 and 2014 . Three Months Ended 2015 2014 Segment: Net revenue before revenue deferral $ 693 $ 775 Depreciation (30 ) (31 ) Other expenses (603 ) (659 ) Segment operating profit 60 85 Reconciliation to consolidated operating income: Other: Revenue deferral (495 ) (623 ) Recognition of revenue deferral 1,005 1,062 Amortization of intangibles (13 ) (17 ) Acquisition-related contingent consideration — 1 Stock-based compensation (45 ) (29 ) Loss on licensed intellectual property commitment — (122 ) Other expenses — 5 Consolidated operating income $ 512 $ 362 |
Net Revenue By Revenue Composition | Information about our total net revenue by revenue composition and by platform for the three months ended June 30, 2015 and 2014 is presented below (in millions): Three Months Ended 2015 2014 Packaged goods and other $ 580 $ 678 Digital 623 536 Net revenue $ 1,203 $ 1,214 |
Net Revenue by Platform | Three Months Ended 2015 2014 Platform net revenue Xbox One, PlayStation 4 $ 487 $ 293 Xbox 360, PlayStation 3 293 543 Other consoles 2 3 Total consoles 782 839 PC / Browser 253 231 Mobile 145 123 Other 23 21 Net revenue $ 1,203 $ 1,214 |
Net Revenue By Geographic Area | Net revenue from unaffiliated customers in North America and internationally for the three months ended June 30, 2015 and 2014 is presented below (in millions): Three Months Ended 2015 2014 Net revenue from unaffiliated customers North America $ 506 $ 522 International 697 692 Net revenue $ 1,203 $ 1,214 |
Long-Lived Assets By Geographic Area | As of As of Long-lived assets North America $ 1,782 $ 1,809 International 473 474 Total $ 2,255 $ 2,283 |
Description Of Business And B34
Description Of Business And Basis Of Presentation Fiscal Period (Details) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fiscal Period | ||
Current and Prior Years Fiscal Period (in weeks) | 53 | 52 |
Current and Prior Years Fiscal Quarter Period (in weeks) | 14 | 13 |
Minimum | ||
Fiscal Period | ||
Fiscal Year | 52 | |
Maximum | ||
Fiscal Period | ||
Fiscal Year | 53 |
(Fair Value Of Assets And Liabi
(Fair Value Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | $ 1,302 | $ 1,211 | |
Total liabilities at fair value | 22 | 18 | |
Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | 415 | 405 | |
Total liabilities at fair value | 10 | 9 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | 887 | 806 | |
Total liabilities at fair value | 12 | 9 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Bank Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Cash equivalents | 174 | 175 | |
Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Cash equivalents | 14 | 7 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 568 | 468 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | U.S. agency securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 180 | ||
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 119 | 140 | |
Short-Term Investments | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 218 | 214 | |
Short-Term Investments | Significant Other Observable Inputs (Level 2) | U.S. agency securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 191 | ||
Other Current Assets | Significant Other Observable Inputs (Level 2) | Foreign currency derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Foreign currency derivatives, assets | 9 | 18 | |
Other assets | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred compensation plan assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Deferred compensation plan assets | [1] | 9 | 9 |
Accrued and Other Current Liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Foreign currency derivatives, liabilities | 12 | 9 | |
Other liabilities | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred Compensation Plan Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Deferred compensation plan assets | [1] | $ 10 | $ 9 |
[1] | The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2015, for additional information regarding our Deferred Compensation Plan. |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | [1] | Jun. 30, 2014 | Mar. 31, 2014 |
Financial Instruments | |||||
Cash and Cash Equivalents, at Carrying Value | $ 1,810 | $ 2,068 | $ 1,554 | $ 1,782 | |
[1] | Derived from audited consolidated financial statements. |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Of Short-Term Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | ||
Financial Instruments | |||
Fair Value | $ 1,069 | $ 953 | [1] |
Short-Term Investments | |||
Financial Instruments | |||
Cost or Amortized Cost | 1,069 | 952 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,069 | 953 | |
Short-Term Investments | Corporate bonds | |||
Financial Instruments | |||
Cost or Amortized Cost | 565 | 467 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 565 | 467 | |
Short-Term Investments | U.S. Treasury securities | |||
Financial Instruments | |||
Cost or Amortized Cost | 218 | 214 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 218 | 214 | |
Short-Term Investments | U.S. agency securities | |||
Financial Instruments | |||
Cost or Amortized Cost | 191 | 161 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 191 | 162 | |
Short-Term Investments | Commercial paper | |||
Financial Instruments | |||
Cost or Amortized Cost | 95 | 110 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | $ 95 | $ 110 | |
[1] | Derived from audited consolidated financial statements. |
Financial Instruments (Fair V38
Financial Instruments (Fair Value Of Short-Term Investments By Stated Maturity Date Schedule) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | |
Financial Instruments | |||
Short-term investments, Fair Value | $ 1,069 | $ 953 | [1] |
Short-Term Investments | |||
Financial Instruments | |||
Short-term investments, Amortized Cost | 1,069 | 952 | |
Short-term investments, Fair Value | 1,069 | 953 | |
Due in 1 year or less [Member] | Short-Term Investments | |||
Financial Instruments | |||
Due in 1 year or less, Amortized Cost | 454 | 417 | |
Due in 1 year or less, Fair Value | 454 | 417 | |
Due in 1-2 years [Member] | |||
Financial Instruments | |||
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 369 | 281 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 369 | 281 | |
Due in 2-3 years [Member] | Short-Term Investments | |||
Financial Instruments | |||
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 243 | 244 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 243 | 245 | |
Due in 3-4 years [Member] | Short-Term Investments | |||
Financial Instruments | |||
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 3 | 10 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | $ 3 | $ 10 | |
[1] | Derived from audited consolidated financial statements. |
Derivative Financial Instrume39
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative | ||
Foreign Currency Forward Contracts Maximum Maturity Period | 18 months | |
Maturity period of foreign currency forward contracts, Maximum | 3 months | |
Cash Flow Hedging [Member] | ||
Derivative | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 3 | $ (5) |
Derivative Financial Instrume40
Derivative Financial Instruments Gross Notional Amounts and Fair Values for Currency Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Foreign currency contracts to purchase | Foreign exchange forward contracts | ||
Derivative | ||
Fair value of foreign currency contracts outstanding, Assets | $ 0 | $ 0 |
Fair value of foreign currency contracts outstanding, Liabilities | 3 | 8 |
Foreign currency contracts to purchase | Designated as Hedging Instrument [Member] | Foreign exchange forward contracts | ||
Derivative | ||
Derivative, Notional amount | 70 | 108 |
Foreign currency contracts to sell | Foreign exchange forward contracts | ||
Derivative | ||
Fair value of foreign currency contracts outstanding, Assets | 8 | 18 |
Fair value of foreign currency contracts outstanding, Liabilities | 9 | 1 |
Foreign currency contracts to sell | Designated as Hedging Instrument [Member] | Foreign exchange forward contracts | ||
Derivative | ||
Derivative, Notional amount | 679 | 508 |
Foreign currency contracts to purchase | United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative | ||
Derivative, Notional amount | 79 | 99 |
Foreign currency contracts to purchase | Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative | ||
Derivative Asset, Current | 0 | 0 |
Derivative Liability, Current | 0 | 0 |
Foreign currency contracts to sell | United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative | ||
Derivative, Notional amount | 98 | 173 |
Foreign currency contracts to sell | Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative | ||
Derivative Asset, Current | 1 | 0 |
Derivative Liability, Current | $ 0 | $ 0 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 2 | [1] | $ 37 |
Other comprehensive income (loss) before reclassifications | (13) | 19 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (3) | 5 | |
Net current-period other comprehensive income (loss) | (16) | 24 | |
Ending balance | (14) | 61 | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (3) | (4) | |
Other comprehensive income (loss) before reclassifications | (1) | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Net current-period other comprehensive income (loss) | (1) | 0 | |
Ending balance | (4) | (4) | |
Unrealized Gains (Losses) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 21 | (10) | |
Other comprehensive income (loss) before reclassifications | (13) | (1) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (3) | 5 | |
Net current-period other comprehensive income (loss) | (16) | 4 | |
Ending balance | 5 | (6) | |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (16) | 51 | |
Other comprehensive income (loss) before reclassifications | 1 | 20 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Net current-period other comprehensive income (loss) | 1 | 20 | |
Ending balance | $ (15) | $ 71 | |
[1] | Derived from audited consolidated financial statements. |
Effects on net income of amount
Effects on net income of amounts reclassified from accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (3) | $ 5 |
Unrealized Gains (Losses) on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (3) | 5 |
Unrealized Gains (Losses) on Derivative Instruments [Member] | Sales Revenue, Net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (8) | 3 |
Unrealized Gains (Losses) on Derivative Instruments [Member] | Research And Development [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 5 | $ 2 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flow Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 3 | $ (5) |
Goodwill And Acquisition-Rela44
Goodwill And Acquisition-Related Intangibles, Net (Narrative) (Details) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Mar. 31, 2015 | |
Minimum | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Maximum | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | |
Weighted Average | ||
Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 8 months | 2 years 9 months |
Goodwill And Acquisition-Rela45
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Changes In The Carrying Amount Of Goodwill) (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2015USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning balance | $ 2,081 | |
Accumulated impairment, beginning balance | (368) | |
Goodwill, Net, Beginning balance | [1] | 1,713 |
Goodwill acquired | 0 | |
Effects of foreign currency translation | 0 | |
Goodwill, Gross, Ending balance | 2,081 | |
Accumulated impairment, ending balance | (368) | |
Goodwill, Net, Ending balance | $ 1,713 | |
[1] | Derived from audited consolidated financial statements. |
Goodwill And Acquisition-Rela46
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets | |||
Gross carrying amount | $ 833 | $ 833 | |
Accumulated amortization | (735) | (722) | |
Acquisition-related intangibles, net | 98 | 111 | [1] |
Developed And Core Technology | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 531 | 531 | |
Accumulated amortization | (450) | (439) | |
Acquisition-related intangibles, net | 81 | 92 | |
Trade Names And Trademarks | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 130 | 130 | |
Accumulated amortization | (113) | (111) | |
Acquisition-related intangibles, net | 17 | 19 | |
Registered User Base And Other Intangibles | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 87 | 87 | |
Accumulated amortization | (87) | (87) | |
Acquisition-related intangibles, net | 0 | 0 | |
Carrier Contracts And Related | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 85 | 85 | |
Accumulated amortization | (85) | (85) | |
Acquisition-related intangibles, net | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
Goodwill And Acquisition-Rela47
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets Classified by Expense | ||
Amortization of intangibles | $ 1 | $ 3 |
Cost of service and other | ||
Finite-Lived Intangible Assets Classified by Expense | ||
Amortization of intangibles | 8 | 10 |
Cost of product | ||
Finite-Lived Intangible Assets Classified by Expense | ||
Amortization of intangibles | 4 | 4 |
Operating expenses | ||
Finite-Lived Intangible Assets Classified by Expense | ||
Amortization of intangibles | 1 | 3 |
Total amortization | ||
Finite-Lived Intangible Assets Classified by Expense | ||
Amortization of intangibles | $ 13 | $ 17 |
Goodwill And Acquisition-Rela48
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Future Amortization Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | [1] |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2016 (remaining nine months) | $ 40 | ||
2,017 | 32 | ||
2,018 | 12 | ||
2,019 | 8 | ||
2,020 | 6 | ||
2,021 | 0 | ||
Total | $ 98 | $ 111 | |
[1] | Derived from audited consolidated financial statements. |
Royalties And Licenses (Narrati
Royalties And Licenses (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Royalties And Licenses | ||
Royalty Related Loss and Or Impairment Charges | $ 122 | |
Expected accretion expense through March 2022 | $ 27 | |
Unrecorded Unconditional Purchase Obligation | 2,122 | |
Developer/Licensor Commitments | ||
Royalties And Licenses | ||
Unrecorded Unconditional Purchase Obligation | $ 1,542 |
Royalties And Licenses (Schedul
Royalties And Licenses (Schedule Of Royalty-Related Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Royalties and Licenses | ||
Royalty-related assets | $ 133 | $ 129 |
Other Current Assets | ||
Royalties and Licenses | ||
Royalty-related assets | 78 | 70 |
Other assets | ||
Royalties and Licenses | ||
Royalty-related assets | $ 55 | $ 59 |
Royalties And Licenses (Sched51
Royalties And Licenses (Schedule Of Royalty-Related Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Royalty Related Liabilities | ||
Royalty-related liabilities | $ 242 | $ 250 |
Accrued royalties | ||
Royalty Related Liabilities | ||
Royalty-related liabilities | 108 | 119 |
Other liabilities | ||
Royalty Related Liabilities | ||
Royalty-related liabilities | $ 134 | $ 131 |
Balance Sheet Details (Narrativ
Balance Sheet Details (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | [1] | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation expense | $ 30 | $ 31 | ||
Deferred Revenue, Current | $ 775 | $ 1,283 | ||
[1] | Derived from audited consolidated financial statements. |
Balance Sheet Details (Inventor
Balance Sheet Details (Inventories Schedule) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Finished goods | $ 32 | $ 35 | |
Raw materials and work in process | 2 | 1 | |
Inventories | $ 34 | $ 36 | [1] |
[1] | Derived from audited consolidated financial statements. |
Balance Sheet Details (Property
Balance Sheet Details (Property And Equipment, Net Schedule) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $ 1,237 | $ 1,238 |
Less: accumulated depreciation | (793) | (779) |
Property and equipment, net | 444 | 459 |
Computer, equipment and software | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 651 | 655 |
Buildings | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 315 | 315 |
Leasehold improvements | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 128 | 126 |
Office equipment, furniture and fixtures | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 65 | 64 |
Land | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 62 | 62 |
Warehouse, equipment and other | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | 9 | 9 |
Construction in progress | ||
Property and Equipment, Net [Line Items] | ||
Property and equipment, gross | $ 7 | $ 7 |
Balance Sheet Details (Accrued
Balance Sheet Details (Accrued And Other Current Liabilities Schedule) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Other accrued expenses | $ 231 | $ 298 | |
Accrued compensation and benefits | 179 | 263 | |
Accrued royalties | 108 | 119 | |
Deferred net revenue (other) | 85 | 114 | |
Accrued and other current liabilities | $ 603 | $ 794 | [1] |
[1] | Derived from audited consolidated financial statements. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Footnote Disclosure [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 539 | |
Effective tax rates | 13.20% | 5.40% |
United States statutory tax rate | 35.00% | |
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 40 | $ 12 |
Unrecognized tax benefits, period increase (decrease) | 6 | |
Gross unrecognized tax benefits | 260 | |
Amount of unrecognized tax benefits that would affect the effective tax rate | 58 | |
The total amount of unrecognized tax benefits that, if recognized, would result in adjustments to deferred tax assets with corresponding adjustments to the valuation allowance | 202 | |
Unrecognized tax benefits income tax penalties and interest accrued increase (decrease) | 1 | |
Combined amount of accrued interest and penalties related to uncertain tax positions | 17 | |
Maximum | ||
Income Tax Footnote Disclosure [Line Items] | ||
Amount of unrecognized tax benefits for which it is reasonably possible that there will be a reduction within the next 12 months | $ 9 |
Financing Arrangement (0.75% Co
Financing Arrangement (0.75% Convertible Senior Notes Due 2016) (Details) | 1 Months Ended | 3 Months Ended | |||
Jul. 31, 2011days$ / shares | Jun. 30, 2015USD ($)shares$ / shares | Mar. 31, 2015USD ($) | Jul. 14, 2011USD ($)$ / shares | ||
Financing Arrangements | |||||
0.75% Convertible senior notes due 2016, net (short-term) | $ 608,000,000 | $ 602,000,000 | [1] | ||
Temporary Equity | 25,000,000 | 31,000,000 | [1] | ||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 107,000,000 | 107,000,000 | |||
Debt Instrument, Frequency of Periodic Payment | semiannually | ||||
Share Price | $ / shares | $ 67.80 | ||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | $ 718,000,000 | ||||
Debt Instrument, Convertible, Number of Equity Instruments | shares | 3,000,000 | ||||
Convertible Debt | |||||
Financing Arrangements | |||||
Principal amount | $ 633,000,000 | 633,000,000 | |||
Convertible Senior Notes, Carrying Value | 608,000,000 | 602,000,000 | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ 25,000,000 | 31,000,000 | |||
Contractual interest rate of 0.75% Convertible Senior Notes due 2016 | 0.75% | ||||
Debt Instrument, Date of First Required Payment | Jan. 15, 2012 | ||||
Debt Instrument, Issuance Date | Jul. 15, 2011 | ||||
Convertible Senior Notes due description | 2,016 | ||||
0.75% Convertible Senior Notes due 2016 maturity date | Jul. 15, 2016 | ||||
Conversion rate of Notes | 31.5075 | ||||
Face amount of Notes | $ 1,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 31.74 | ||||
Number of trading days greater than or equal to the initial conversion price | days | 20 | ||||
Consecutive trading days under conversion trigger | days | 30 | ||||
Trigger price as percent of conversion price | 130.00% | ||||
Trigger price | $ / shares | $ 41.26 | ||||
Number of trading day that trading price falls below 98% of last reported sales price multiplied by conversion rate | days | 5 | ||||
Consecutive trading days under conversion trigger, trading price | days | 10 | ||||
Debt trading price as a percentage of stock price times conversion rate | 98.00% | ||||
Effective interest rate | 4.54% | ||||
Debt issuance costs | $ 15,000,000 | ||||
Debt instrument remaining discount amortization period | 1 year | ||||
Convertible Debt | Liability Component | |||||
Financing Arrangements | |||||
Convertible Senior Notes, Carrying Value | 525,000,000 | ||||
Debt issuance costs | 13,000,000 | ||||
Convertible Debt | Equity Component | |||||
Financing Arrangements | |||||
Debt issuance costs | $ 2,000,000 | ||||
Convertible Debt | |||||
Financing Arrangements | |||||
Debt Instrument, Fair Value Disclosure | $ 1,342,000,000 | $ 1,158,000,000 | |||
[1] | Derived from audited consolidated financial statements. |
Financing Arrangement (Converti
Financing Arrangement (Convertible Note Hedge and Warrants Issuance) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | |
Jul. 31, 2011 | Jul. 14, 2011 | |
Convertible Note Hedge [Member] | ||
Financing Arrangements | ||
Amount paid for Convertible Note Hedge | $ 107 | |
Warrants | ||
Financing Arrangements | ||
Shares covered by warrants issuance | 19.9 | |
Strike price of warrants | $ 41.14 | |
Proceeds from Warrants transaction | $ 65 | |
Convertible Debt | ||
Financing Arrangements | ||
Debt Instrument, Convertible, Conversion Price | $ 31.74 |
Financing Arrangement (Line of
Financing Arrangement (Line of Credit Facility) (Details) - Jun. 30, 2015 - Revolving Credit Facility [Member] - USD ($) $ in Millions | Total |
Line of Credit Facility [Line Items] | |
Credit Facility, Maximum Borrowing Capacity | $ 500 |
Option To Request Additional Commitments On Credit Facility | 250 |
Debt issuance costs | $ 2 |
Credit Facility, Initiation Date | Mar. 19, 2015 |
Credit Facility, Expiration Date | Mar. 19, 2020 |
Line of Credit Facility Term | 5 years |
Financing Arrangement (Schedule
Financing Arrangement (Schedule Of Interest Expense Related To Notes) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instruments [Abstract] | ||
Amortization of debt discount | $ (6) | $ (5) |
Amortization of debt issuance costs | (1) | (1) |
Coupon interest expense | (1) | (1) |
Interest Expense, Other | 0 | (1) |
Total interest expense | $ (8) | $ (8) |
Financing Arrangement Subsequen
Financing Arrangement Subsequent Events (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2015USD ($) | |
Subsequent Event [Line Items] | |
Debt Conversion, Converted Instrument, Amount | $ 170 |
Commitments And Contingencies62
Commitments And Contingencies (Narrative) (Details) - Share Repurchase Program - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2011 | Jun. 30, 2015 | Mar. 31, 2015 | ||
Loss Contingencies [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation | $ 2,122 | |||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 3 | |||
Amount of potential cash payments that could result from unrecognized tax benefits | 69 | |||
Litigation Settlement, Amount | 30 | |||
Convertible Debt | ||||
Loss Contingencies [Line Items] | ||||
Long-term Debt, Gross | 633 | $ 633 | ||
Debt Instrument, Maturity Date | Jul. 15, 2016 | |||
Convertible Notes Interest [Member] | ||||
Loss Contingencies [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation | [1] | 5 | ||
Unrecorded Unconditional Purchase Obligation Payable in Common Stock Per Year | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation | 10 | |||
Unrecorded Unconditional Purchase Obligation Payable in Common Stock | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation | $ 32 | |||
[1] | We will be obligated to pay the $632.5 million principal amount of the Notes in cash and any excess conversion value in shares of our common stock upon redemption of the Notes at maturity on July 15, 2016, or upon earlier conversion. During the quarter ended June 30, 2015, the Sales Price Condition was met and as a result, the Notes are currently convertible at the option of the holder though October 3, 2015. Subsequent to quarter end and through August 10, 2015, the Company received conversion notices representing approximately $170 million principal of the Notes. See Note 10 for additional information regarding our Notes. |
Commitments And Contingencies63
Commitments And Contingencies (Minimum Contractual Obligations) (Details) $ in Millions | Jun. 30, 2015USD ($) | |
Long Term Purchase Commitments | ||
Unrecorded Total | $ 2,122 | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 257 | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 345 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 356 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 304 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 277 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 248 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 335 | |
Recorded Total | 796 | |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 649 | |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 22 | |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 23 | |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 24 | |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 25 | |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 26 | |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 27 | |
TotalUnconditionalPurchaseObligationBalanceSheetAmount | 2,918 | |
TotalUnconditionalPurchaseObligationBalanceSheetAmountRemainingForCurrentFiscalYear | 906 | |
Total Unconditional PurchaseObligationBalanceSheetAmountOneYearAfterFiscalYearEnd | 367 | |
Total Unconditional Purchase Obligation Balance Sheet Amount Two Years After Fiscal Year End | 379 | |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThreeYearsAfterFiscalYearEnd | 328 | |
TotalUnconditionalPurchaseObligationBalanceSheetAmountFourYearsAfterFiscalYearEnd | 302 | |
Total Unconditional Purchase Obligation Balance Sheet Amount Five Years After Fiscal Year End | 274 | |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 362 | |
Developer/Licensor Commitments | ||
Long Term Purchase Commitments | ||
Unrecorded Total | 1,542 | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 162 | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 233 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 280 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 233 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 209 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 184 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 241 | |
Marketing | ||
Long Term Purchase Commitments | ||
Unrecorded Total | 341 | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 37 | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 63 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 48 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 48 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 48 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 49 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 48 | |
Operating leases | ||
Long Term Purchase Commitments | ||
Unrecorded Total | 192 | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 30 | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 34 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 26 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 22 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 19 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 15 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 46 | |
0.75% Convertible Senior Notes due 2016 interest | ||
Long Term Purchase Commitments | ||
Unrecorded Total | [1] | 5 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | [1] | 3 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | [1] | 2 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | [1] | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | [1] | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | [1] | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | [1] | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | [1] | 0 |
Other unrecorded purchase obligations | ||
Long Term Purchase Commitments | ||
Unrecorded Total | 42 | |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 25 | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 13 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 2 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 1 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 1 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 | |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 | |
Convertible Debt | ||
Long Term Purchase Commitments | ||
Recorded Total | [1] | 633 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | [1] | 633 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | [1] | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | [1] | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | [1] | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | [1] | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | [1] | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | [1] | 0 |
Licensing and lease obligations | ||
Long Term Purchase Commitments | ||
Recorded Total | [2] | 163 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | [2] | 16 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | [2] | 22 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | [2] | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | [2] | 24 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | [2] | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | [2] | 26 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | [2] | $ 27 |
[1] | We will be obligated to pay the $632.5 million principal amount of the Notes in cash and any excess conversion value in shares of our common stock upon redemption of the Notes at maturity on July 15, 2016, or upon earlier conversion. During the quarter ended June 30, 2015, the Sales Price Condition was met and as a result, the Notes are currently convertible at the option of the holder though October 3, 2015. Subsequent to quarter end and through August 10, 2015, the Company received conversion notices representing approximately $170 million principal of the Notes. See Note 10 for additional information regarding our Notes. | |
[2] | Lease commitments have not been reduced for approximately $3 million due in the future from third parties under non-cancelable sub-leases. See Note 7 for additional information regarding recognized obligations from our licensing-related commitments. |
Commitments And Contingencies S
Commitments And Contingencies Subsequent Events (Details) $ in Millions | 6 Months Ended |
Sep. 30, 2015USD ($) | |
Subsequent Event [Line Items] | |
Debt Instrument, Periodic Payment, Principal | $ 170 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 14 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | May. 04, 2015 | May. 05, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 40 | $ 12 | |||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 0.00% | 0.00% | |||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 200.00% | 200.00% | |||
Market-Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to stock options | $ 41 | $ 41 | |||
Weighted-average grant date fair values of restricted stock rights granted | $ 79.81 | ||||
Maximum number of common shares to be earned during the performance period, Grants | 0.8 | ||||
Maximum number of common shares to be earned during the performance period, outstanding | 1.3 | 1.3 | |||
Market-Based Restricted Stock Units [Member] | Target | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of target of presented shares granted that may potentially vest | 100.00% | 100.00% | |||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12 | ||||
Unrecognized compensation cost related to stock options | $ 14 | $ 14 | |||
Weighted-average service period | 2 years | ||||
Restricted Stock Rights [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to stock options | $ 345 | $ 345 | |||
Weighted-average service period | 1 year 10 months | ||||
Weighted-average grant date fair values of restricted stock rights granted | $ 62.64 | $ 35.49 | |||
May 2014 Repurchase Program [Member] [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount of common stock authorized for repurchase | $ 750 | ||||
Stock Repurchased and Retired During Period, Shares | 1 | 1 | 9.2 | ||
Repurchase and retirement of common stock | $ 57 | $ 50 | $ 394 | ||
May 2015 Repurchase Program [Member] [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount of common stock authorized for repurchase | $ 1,000 | ||||
Stock Repurchased and Retired During Period, Shares | 1 | 0 | |||
Repurchase and retirement of common stock | $ 75 | $ 0 | |||
Repurchase Program, Total [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchased and Retired During Period, Shares | 2 | 1 | |||
Repurchase and retirement of common stock | $ 132 | $ 50 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Assumptions Used In Black-Scholes Model) (Details) - 3 months ended Jun. 30, 2014 - Employee Stock Option [Member] | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 1.10% |
Risk-free interest rate, maximum | 1.80% |
Expected volatility, minimum | 37.00% |
Expected volatility, maximum | 40.00% |
Weighted Average Volatility Rate | 38.00% |
Expected Term | 4 years 6 months |
Expected dividends | 0.00% |
Stock-Based Compensation (Sch67
Stock-Based Compensation (Schedule Of Assumptions Used In Monte-Carlo Simulation Model) (Details) - Market-Based Restricted Stock Units [Member] | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.00% | 0.90% |
Expected volatility, minimum | 14.00% | 16.00% |
Expected volatility, maximum | 50.00% | 79.00% |
Weighted Average Volatility Rate | 26.00% | 30.00% |
Expected dividends | 0.00% | 0.00% |
Stock-Based Compensation (Sch68
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 45 | $ 29 |
Research And Development [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 26 | 16 |
Marketing and Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 5 | 4 |
General And Administrative [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 14 | $ 9 |
Stock-Based Compensation (Sch69
Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options, Outstanding, Beginning Balance | 4,920 |
Options, Granted | 2 |
Options, Exercised | (985) |
Options, Forfeited, cancelled or expired | (49) |
Options, Outstanding, Ending Balance | 3,888 |
Options, Vested and expected to vest | 3,648 |
Options, Exercisable | 2,456 |
Weighted-average exercise price of options outstanding, beginning balance | $ 37.44 |
Weighted-average exercise price of options granted during period | 59.33 |
Weighted-average exercise price of options exercised during the period | 45.79 |
Weighted-average exercise price of options forfeited, cancelled or expired during the period | 35.41 |
Weighted-average exercise price of options outstanding, ending balance | 35.35 |
Weighted-average exercise price of options vested and expected to vest | 35.61 |
Weighted-average exercise price of options exercisable | $ 37.59 |
Weighted-average remaining contractual term of options outstanding | 5 years 10 months 3 days |
Weighted-average remaining contractual term of options vested and expected to vest | 5 years 7 months 25 days |
Weighted-average remaining contractual term of options exercisable | 4 years 2 months 5 days |
Aggregate intrinsic value of options outstanding | $ 126 |
Aggregate intrinsic value of options vested and expected to vest | 117 |
Aggregate intrinsic value of options exercisable | $ 74 |
Stock-Based Compensation (Sch70
Stock-Based Compensation (Schedule Of Restricted Stock Rights Activity, Excluding Performance-Based Activity) (Details) - Restricted Stock Rights [Member] - $ / shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Beginning balance | 10,855 | |
Granted | 2,177 | |
Vested | (4,714) | |
Forfeited or cancelled | (368) | |
Ending balance | 7,950 | |
Weighted-average grant date fair value, beginning balance | $ 26.20 | |
Weighted-average grant date fair values of restricted stock rights granted | 62.64 | $ 35.49 |
Weighted-average grant date fair value, vested during period | 20.55 | |
Weighted-average grant date fair value, forfeited or cancelled during period | 29.96 | |
Weighted-average grant date fair value, ending balance | $ 39.35 |
Stock-Based Compensation (Sch71
Stock-Based Compensation (Schedule Of Market-Based Restricted Stock Unit Activity) (Details) - 3 months ended Jun. 30, 2015 - Market-Based Restricted Stock Units [Member] - $ / shares shares in Thousands | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Beginning balance | 663 |
Granted | 395 |
Vested | (742) |
Share-based compensation Arrangement, Equity instruments other than options, Excess Vesting | 371 |
Forfeited or cancelled | (45) |
Ending balance | 642 |
Weighted-average grant date fair value, beginning balance | $ 31.82 |
Weighted-average grant date fair values of market-based restricted stock rights granted | 79.81 |
Weighted-average grant date fair value, vested during period | 25.77 |
Share-based compensation Arrangement, Equity instruments other than options, Excess Vesting, Weighted Average Grant Date Fair Value | 25.77 |
Weighted-average grant date fair value, forfeited or cancelled during period | 34.84 |
Weighted-average grant date fair value, ending balance | $ 69.51 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 14 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | |
May 2014 Repurchase Program [Member] [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchased and Retired During Period, Value | $ 57 | $ 50 | $ 394 |
Stock Repurchased and Retired During Period, Shares | 1 | 1 | 9.2 |
May 2015 Repurchase Program [Member] [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchased and Retired During Period, Value | $ 75 | $ 0 | |
Stock Repurchased and Retired During Period, Shares | 1 | 0 | |
Repurchase Program, Total [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchased and Retired During Period, Value | $ 132 | $ 50 | |
Stock Repurchased and Retired During Period, Shares | 2 | 1 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - $ / shares shares in Millions | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2011 | Jun. 30, 2014 | Jul. 14, 2011 | |
Antidilutive Securities Excluded from Computation of Net Income Per Share | |||
Antidilutive securities excluded from computation of net income per share | 4 | ||
Warrants | |||
Antidilutive Securities Excluded from Computation of Net Income Per Share | |||
Warrants, Conversion price per share | $ 41.14 | ||
Convertible Debt | |||
Antidilutive Securities Excluded from Computation of Net Income Per Share | |||
Contractual interest rate of 0.75% Convertible Senior Notes due 2016 | 0.75% | ||
Convertible Senior Notes due description | 2,016 |
Net Income Per Share Net Income
Net Income Per Share Net Income Per Share (Computation Of Basic Earnings And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Net Income Per Share | ||
Net income | $ 442 | $ 335 |
Weighted Average Number of Shares Outstanding, Basic | 311 | 313 |
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options | 8 | 8 |
Weighted Average Number of Shares Outstanding, Diluted | 335 | 322 |
Basic | $ 1.42 | $ 1.07 |
Diluted | $ 1.32 | $ 1.04 |
Convertible Debt | ||
Antidilutive Securities Excluded from Computation of Net Income Per Share | ||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 10 | 1 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Net Income Per Share | ||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 6 | 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue, Major Customer and Geographic Information | ||
Entity Wide Revenue By Major Customer Percent Of Revenue Did Not Exceed Ten Percent | 10.00% | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Microsoft [Domain] | ||
Revenue, Major Customer and Geographic Information | ||
Entity Wide Revenue By Major Customer Percent Of Revenue | 15.00% | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Sony [Domain] | ||
Revenue, Major Customer and Geographic Information | ||
Entity Wide Revenue By Major Customer Percent Of Revenue | 14.00% | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Apple [Domain] | ||
Revenue, Major Customer and Geographic Information | ||
Entity Wide Revenue By Major Customer Percent Of Revenue | 12.00% | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Gamestop Corp [Member] | ||
Revenue, Major Customer and Geographic Information | ||
Entity Wide Revenue By Major Customer Percent Of Revenue | 11.00% | |
Switzerland [Member] | ||
Revenue, Major Customer and Geographic Information | ||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries | 532 | 440 |
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries, Percentage | 44.00% | 36.00% |
United States [Member] | ||
Revenue, Major Customer and Geographic Information | ||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Entity's Country of Domicile | 99.00% |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Label Segment Profit To Consolidated Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated Operating Income | ||
Depreciation expense | $ (30) | $ (31) |
Acquisition-related contingent consideration | 0 | 1 |
Stock-based compensation | (45) | (29) |
Loss on licensed intellectual property commitment | (122) | |
Consolidated operating income | 512 | 362 |
EA Segment | ||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated Operating Income | ||
Net Revenue before Revenue Deferral | 693 | 775 |
Depreciation expense | (30) | (31) |
Other expenses | (603) | (659) |
Consolidated operating income | 60 | 85 |
Other Reconciling Items To Consolidated Operating Income | ||
Segment Reporting, Reconciling Item for Operating Profit from Segment to Consolidated Operating Income | ||
Revenue deferral | (495) | (623) |
Recognition of revenue deferral | 1,005 | 1,062 |
Amortization of Intangibles | (13) | (17) |
Acquisition-related contingent consideration | 0 | 1 |
Stock-based compensation | (45) | (29) |
Loss on licensed intellectual property commitment | 0 | (122) |
Other expenses | 0 | 5 |
Consolidated operating income | $ 512 | $ 362 |
Segment Information (Net Revenu
Segment Information (Net Revenue By Revenue Composition ) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Revenue Reconciling Item | ||
Net revenue | $ 1,203 | $ 1,214 |
Packaged goods and other | ||
Segment Reporting, Revenue Reconciling Item | ||
Net revenue | 580 | 678 |
Digital | ||
Segment Reporting, Revenue Reconciling Item | ||
Net revenue | $ 623 | $ 536 |
Segment Information (Net Reve78
Segment Information (Net Revenue By Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue from External Customer [Line Items] | ||
Total net revenue | $ 1,203 | $ 1,214 |
North America | ||
Revenue from External Customer [Line Items] | ||
Net revenue from unaffiliated customers | 506 | 522 |
International | ||
Revenue from External Customer [Line Items] | ||
Net revenue from unaffiliated customers | $ 697 | $ 692 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Jun. 30, 2014 |
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | $ 2,255 | $ 2,283 |
North America | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | 1,782 | 1,809 |
International | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-lived assets | $ 473 | $ 474 |
Segment Information (Net Reve80
Segment Information (Net Revenue By Platform) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net Revenue by Platform [Line Items] | ||
Revenue, Net | $ 1,203 | $ 1,214 |
Xbox One, PLAYSTATION 4 | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | 487 | 293 |
Xbox 360, PLAYSTATION 3 | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | 293 | 543 |
Other consoles | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | 2 | 3 |
Total consoles | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | 782 | 839 |
PC and Browsers, net revenue | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | 253 | 231 |
Mobile, net revenue | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | 145 | 123 |
Other, net revenue | ||
Net Revenue by Platform [Line Items] | ||
Revenue, Net | $ 23 | $ 21 |