Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | May 22, 2017 | Sep. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | 310,028,355 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 24,908 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
ASSETS: | ||
Cash and cash equivalents | $ 2,565 | $ 2,493 |
Short-term investments | 1,967 | 1,341 |
Receivables, net of allowances of $145 and $159, respectively | 359 | 233 |
Other current assets | 308 | 287 |
Total current assets | 5,199 | 4,354 |
Property and equipment, net | 434 | 439 |
Goodwill | 1,707 | 1,710 |
Acquisition-related intangibles, net | 8 | 57 |
Deferred income taxes, net | 286 | 387 |
Other assets | 84 | 103 |
TOTAL ASSETS | 7,718 | 7,050 |
LIABILITIES: | ||
Accounts payable | 87 | 89 |
Accrued and other current liabilities | 789 | 710 |
0.75% Convertible notes due 2016, net | 0 | 161 |
Deferred net revenue (online-enabled games) | 1,539 | 1,458 |
Total current liabilities | 2,415 | 2,418 |
Senior notes, net | 990 | 989 |
Income tax obligations | 104 | 80 |
Deferred income taxes, net | 1 | 2 |
Other liabilities | 148 | 163 |
Total liabilities | 3,658 | 3,652 |
Commitments and contingencies (See Note 11) | ||
0.75% convertible senior notes due 2016 (See Note 10) | 0 | 2 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value. 10 shares authorized | 0 | 0 |
Common stock, $0.01 par value. 1,000 shares authorized; 308 and 301 shares issued and outstanding, respectively | 3 | 3 |
Additional paid-in capital | 1,049 | 1,349 |
Retained earnings | 3,027 | 2,060 |
Accumulated other comprehensive income | (19) | (16) |
Total stockholders' equity | 4,060 | 3,396 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,718 | $ 7,050 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Receivables, allowances | $ 145 | $ 159 |
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 | 308 | 301 |
Common stock, shares outstanding | 308 | 301 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net revenue: | |||
Product | $ 2,640 | $ 2,497 | $ 2,568 |
Service and other | 2,205 | 1,899 | 1,947 |
Total net revenue | 4,845 | 4,396 | 4,515 |
Cost of revenue: | |||
Product | 893 | 938 | 1,028 |
Service and other | 405 | 416 | 401 |
Total cost of revenue | 1,298 | 1,354 | 1,429 |
Gross profit | 3,547 | 3,042 | 3,086 |
Operating expenses: | |||
Research and development | 1,205 | 1,109 | 1,094 |
Marketing and sales | 673 | 622 | 647 |
General and administrative | 439 | 406 | 386 |
Acquisition-related contingent consideration | 0 | 0 | (3) |
Amortization of intangibles | 6 | 7 | 14 |
Total operating expenses | 2,323 | 2,144 | 2,138 |
Operating income | 1,224 | 898 | 948 |
Interest and other income (expense), net | (14) | (21) | (23) |
Income before provision for (benefit from) income taxes | 1,210 | 877 | 925 |
Provision for (benefit from) income taxes | 243 | (279) | 50 |
Net income | $ 967 | $ 1,156 | $ 875 |
Earnings per share: | |||
Basic | $ 3.19 | $ 3.73 | $ 2.81 |
Diluted | $ 3.08 | $ 3.50 | $ 2.69 |
Number of shares used in computation: | |||
Basic | 303 | 310 | 311 |
Diluted | 314 | 330 | 325 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 967 | $ 1,156 | $ 875 |
Other comprehensive income (loss), net of tax: | |||
Change in unrealized net gains and losses on available-for-sale securities | (3) | 4 | 1 |
Reclassification adjustment for net realized gains and losses on available-for-sale securities | (1) | 0 | 0 |
Change in unrealized net gains and losses on derivative instruments | 54 | 5 | 20 |
Reclassification adjustment for net realized gains and losses on derivative instruments | (36) | (12) | 11 |
Foreign currency translation adjustments | (17) | (15) | (67) |
Total other comprehensive loss, net of tax | (3) | (18) | (35) |
Total comprehensive income | $ 964 | $ 1,138 | $ 840 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional paid-in capital | Retained earnings (Accumulated deficit) | Accumulated other comprehensive income (loss) | Repurchase program, total |
Balance at Mar. 31, 2014 | $ 2,422 | $ 3 | $ 2,353 | $ 29 | $ 37 | |
Balance (in shares) at Mar. 31, 2014 | 311,442 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 840 | 875 | (35) | |||
Issuance of common stock | (24) | (24) | ||||
Issuance of common stock (in shares) | 6,508 | |||||
Reclassification of equity component of convertible notes | (31) | (31) | ||||
Repurchase and retirement of common stock | (337) | (337) | $ (337) | |||
Stock repurchased and retired during period, Shares | (8,269) | 8,200 | ||||
Stock-based compensation | 144 | 144 | ||||
Tax benefit from stock-based compensation | 22 | 22 | ||||
Balance at Mar. 31, 2015 | 3,036 | $ 3 | 2,127 | 904 | 2 | |
Balance (in shares) at Mar. 31, 2015 | 309,681 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | 1,138 | 1,156 | (18) | |||
Issuance of common stock | (49) | (49) | ||||
Issuance of common stock (in shares) | 6,645 | |||||
Reclassification of equity component of convertible notes | 29 | 29 | ||||
Settlement of convertible notes | (1) | (1) | ||||
Settlement of Convertible Notes | 7,823 | |||||
Exercise of convertible note hedge | (7,823) | |||||
Repurchase and retirement of common stock | (1,018) | (1,018) | $ (1,018) | |||
Stock repurchased and retired during period, Shares | (15,724) | 15,700 | ||||
Stock-based compensation | 178 | 178 | ||||
Tax benefit from stock-based compensation | 83 | 83 | ||||
Balance at Mar. 31, 2016 | $ 3,396 | $ 3 | 1,349 | 2,060 | (16) | |
Balance (in shares) at Mar. 31, 2016 | 301,000 | 300,602 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income (loss) | $ 964 | 967 | (3) | |||
Issuance of common stock | (55) | (55) | ||||
Issuance of common stock (in shares) | 4,626 | |||||
Reclassification of equity component of convertible notes | 2 | 2 | ||||
Settlement of convertible notes | $ 0 | 0 | ||||
Settlement of Convertible Notes | 2,917 | |||||
Exercise of convertible note hedge | (2,900) | (2,917) | ||||
Repurchase and retirement of common stock | $ (508) | (508) | $ (508) | |||
Stock repurchased and retired during period, Shares | (6,506) | 6,500 | ||||
Settlement of warrants | 9,645 | |||||
Stock-based compensation | 196 | 196 | ||||
Tax benefit from stock-based compensation | 65 | 65 | ||||
Balance at Mar. 31, 2017 | $ 4,060 | $ 3 | $ 1,049 | $ 3,027 | $ (19) | |
Balance (in shares) at Mar. 31, 2017 | 308,000 | 308,367 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 967 | $ 1,156 | $ 875 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion | 172 | 197 | 220 |
Stock-based compensation | 196 | 178 | 144 |
Loss on Conversion of Convertible Notes | 0 | 10 | 0 |
Acquisition-related contingent consideration | 0 | 0 | (3) |
Change in assets and liabilities: | |||
Receivables, net | (136) | 127 | (54) |
Other assets | 3 | 22 | 106 |
Accounts payable | 5 | 13 | (46) |
Accrued and other liabilities | (5) | (252) | 31 |
Deferred income taxes, net | 100 | (403) | 1 |
Deferred net revenue (online-enabled games) | 81 | 175 | (207) |
Net cash provided by operating activities | 1,383 | 1,223 | 1,067 |
INVESTING ACTIVITIES | |||
Capital expenditures | (123) | (93) | (95) |
Proceeds from maturities and sales of short-term investments | 1,281 | 941 | 727 |
Purchase of short-term investments | (1,917) | (1,332) | (1,102) |
Net cash used in investing activities | (759) | (484) | (470) |
FINANCING ACTIVITIES | |||
Proceeds from issuance of senior notes, net of issuance costs | 0 | 989 | 0 |
Payment of convertible notes | (163) | (470) | 0 |
Proceeds from issuance of common stock | 72 | 107 | 60 |
Excess tax benefit from stock-based compensation | 65 | 86 | 22 |
Repurchase and retirement of common stock | (508) | (1,018) | (337) |
Net cash used in financing activities | (534) | (306) | (255) |
Effect of foreign exchange on cash and cash equivalents | (18) | (8) | (56) |
Increase in cash and cash equivalents | 72 | 425 | 286 |
Beginning cash and cash equivalents | 2,493 | 2,068 | 1,782 |
Ending cash and cash equivalents | 2,565 | 2,493 | 2,068 |
Supplemental cash flow information: | |||
Cash paid during the year for income taxes, net | 51 | 35 | 2 |
Cash paid during the year for interest | $ 43 | $ 4 | $ 6 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Description Of Business And Summary Of Significant Accounting Policies | (1) DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We are a global leader in digital interactive entertainment. We develop, market, publish and distribute games, content and services that can be played by consumers on a variety of platforms, which include game consoles, PCs, mobile phones and tablets. In our games, we use established brands that we either wholly own (such as Battlefield, Mass Effect, Need for Speed, The Sims and Plants v. Zombies) or license from others (such as FIFA, Madden NFL and Star Wars). We also publish and distribute games developed by third parties ( e.g. , Titanfall). A summary of our significant accounting policies applied in the preparation of our Consolidated Financial Statements follows: Consolidation The accompanying Consolidated Financial Statements include the accounts of Electronic Arts Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Fiscal Year 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 ended March 31, 2017 and 2015 contained 52 weeks each and ended on April 1, 2017 and March 28, 2015, respectively. Our results of operations for the fiscal year ended March 31, 2016 contained 53 weeks and ended on April 2, 2016. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. Reclassifications Certain prior year amounts were reclassified to conform to current year presentation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. Such estimates include sales returns and allowances, provisions for doubtful accounts, accrued liabilities, offering periods for deferred net revenue, multiple-element arrangements, income taxes, losses on royalty commitments, estimates regarding the recoverability of prepaid royalties, inventories, long-lived assets, assets acquired and liabilities assumed in business combinations, certain estimates related to the measurement and recognition of costs resulting from our stock-based payment awards, unrecognized tax benefits, deferred income tax assets and associated valuation allowances, as well as estimates used in our goodwill, intangibles and short-term investment impairment tests. These estimates generally involve complex issues and require us to make judgments, involve analysis of historical and future trends, can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from our estimates. Cash, Cash Equivalents, and Short-Term Investments Cash equivalents consist of highly liquid investments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. Short-term investments consist of securities with original or remaining maturities of greater than three months at the time of purchase, and are accounted for as available-for-sale securities and are recorded at fair value. Cash, cash equivalents and short-term investments are available for use in current operations or other activities such as capital expenditures, business combinations and share repurchases. Unrealized gains and losses on our short-term investments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of tax, until either (1) the security is sold, (2) the security has matured, or (3) we determine that the fair value of the security has declined below its adjusted cost basis and the decline is other-than-temporary. Realized gains and losses on our short-term investments are calculated based on the specific identification method and are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net. Determining whether a decline in fair value is other-than-temporary requires management judgment based on the specific facts and circumstances of each security. The ultimate value realized on these securities is subject to market price volatility until they are sold. Our short-term investments are evaluated for impairment quarterly. We consider various factors in determining whether we should recognize an impairment charge, including the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, severity of the impairment, 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. If we conclude that an investment is other-than-temporarily impaired, we recognize an impairment charge at that time in our Consolidated Statements of Operations. Based on our evaluation, we did not consider any of our investments to be other-than-temporarily impaired as of March 31, 2017 and 2016 . Inventories Inventories consist of materials (including manufacturing royalties paid to console manufacturers), labor and freight-in and are stated at the lower of cost (using the weighted average costing method) or net realizable value. We regularly review inventory quantities on-hand. We write down inventory based on excess or obsolete inventories determined primarily by future anticipated demand for our products. Inventory write-downs are measured as the difference between the cost of the inventory and market value, based upon assumptions about future demand that are inherently difficult to assess. At the point of a loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established basis. Inventories are included in other current assets in the Consolidated Balance Sheets. Property and Equipment, Net Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 years Computer equipment and software 3 to 6 years Equipment, furniture and fixtures, and other 3 to 5 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 10 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once the internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset’s estimated useful life, which is generally three years. The net book value of capitalized costs associated with internal-use software was $41 million and $55 million as of March 31, 2017 and 2016 , respectively. Acquisition-Related Intangibles and Other Long-Lived Assets We record acquisition-related intangible assets, such as developed and core technology, in connection with business combinations. We amortize the cost of acquisition-related intangible assets that have finite useful lives on a straight-line basis over the lesser of their estimated useful lives or the agreement terms, typically from two to fourteen years. We evaluate acquisition-related intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset group. This includes assumptions about future prospects for the business that the asset relates to and typically involves computations of the estimated future cash flows to be generated by these businesses. Based on these judgments and assumptions, we determine whether we need to take an impairment charge to reduce the value of the asset stated on our Consolidated Balance Sheets to reflect its estimated fair value. When we consider such assets to be impaired, the amount of impairment we recognize is measured by the amount by which the carrying amount of the asset exceeds its fair value. Goodwill In assessing impairment on our goodwill, we first analyze qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The qualitative factors we assess include long-term prospects of our performance, share price trends and market capitalization, and Company specific events. If we conclude it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not need to perform the two-step impairment test. If based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value, a two-step goodwill impairment test will be performed. The first step measures for impairment by applying fair value-based tests at the reporting unit level. The second step (if necessary) measures the amount of impairment by applying fair value-based tests to the individual assets and liabilities within each reporting unit. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating results of that component, and (3) whether the component has dissimilar economic characteristics to other components. As of March 31, 2017, we have only one reportable segment, which represents our only operating segment. During the fiscal years ended March 31, 2017, 2016 and 2015 , we completed our annual goodwill impairment testing in the fourth quarter of each year and determined that it was more likely than not that the fair value of our reporting unit exceeded its carrying amount and, as such, we did not need to perform the two-step impairment test. Revenue Recognition, Sales Returns and Allowances, and Bad Debt Reserves We derive revenue principally from sales of interactive software games, and related content and services on game consoles, PCs, mobile phones and tablets. We evaluate revenue recognition based on the criteria set forth in FASB Accounting Standards Codification (“ASC”) 605, Revenue Recognition and ASC 985-605, Software: Revenue Recognition . We classify our revenue as either product revenue or service and other revenue. Product revenue. Our product revenue includes revenue associated with the sale of software games or related product content or updates, whether delivered digitally ( e.g., full-game downloads, extra-content) or via a physical disc ( e . g ., packaged goods), and licensing of game software to third-parties. Product revenue also includes revenue from mobile full game downloads that do not require our hosting support ( e.g. , premium mobile games) in order to utilize the game or related content ( i.e. can be played with or without an Internet connection), and sales of tangible products such as hardware, peripherals, or collectors’ items. Service and other revenue. Our service revenue includes revenue recognized from time-based subscriptions, games, content or updates that requires our hosting support in order to utilize the game or related content ( i.e. , can only be played with an Internet connection). This includes (1) entitlements to content that are accessed through hosting services ( e.g., microtransactions for Internet-based, social network and free-to-download mobile games), (2) massively multi-player online (“MMO”) games (both software game and subscription sales), (3) subscriptions for our Battlefield Premium, EA and Origin Access, and Pogo-branded online game services, and (4) allocated service revenue from sales of software games with a service of online activities ( e.g., online playability). Our other revenue includes advertising and non-software licensing revenue. With respect to the allocated service revenue from sales of software games with a service of online activities (“online services”) mentioned above, our allocation of proceeds between product and service revenue for presentation purposes is based on management’s best estimate of the selling price of the online services with the residual value allocated to product revenue. Our estimate of the selling price of the online services are comprised of several factors including, but not limited to, prior selling prices for the online services, prices charged separately by other third-party vendors for similar service offerings, and a cost-plus-margin approach. We review the estimated selling price of the online services on a regular basis and use this methodology consistently to allocate revenue between product and service for software game sales with online services. We evaluate and recognize revenue when all four of the following criteria are met: • Evidence of an arrangement . Evidence of an agreement with the customer that reflects the terms and conditions to deliver the related products or services must be present. • Fixed or determinable fee . If a portion of the arrangement fee is not fixed or determinable, we recognize revenue as the amount becomes fixed or determinable. • Collection is deemed probable . Collection is deemed probable if we expect the customer to be able to pay amounts under the arrangement as those amounts become due. If we determine that collection is not probable as the amounts become due, we generally conclude that collection becomes probable upon cash collection. • Delivery . For packaged goods, delivery is considered to occur when a product is shipped and the risk of loss and rewards of ownership have transferred to the customer. For digital downloads, delivery is considered to occur when the software is made available to the customer for download. For services and other, delivery is generally considered to occur as the service is delivered, which is determined based on the underlying service obligation. If there is significant uncertainty of acceptance, revenue is recognized once acceptance is reasonably assured. Online-Enabled Games The majority of our software games and related content have online connectivity whereby a consumer may be able to download unspecified content or updates on a when-and-if-available basis (“unspecified updates”) for use with the original game software. In addition, we may also offer a service of online activities (e.g., online playability) without a separate fee. U.S. GAAP requires us to account for the consumer’s right to receive unspecified updates or the service of online activities for no additional fee as a “bundled” sale, or multiple-element arrangement. We have an established historical pattern of providing unspecified updates ( e.g., player roster updates to Madden NFL 17 ) to online-enabled games and related content at no additional charge to the consumer. Because we do not have vendor-specific objective evidence of fair value (“VSOE”) for these unspecified updates, we are required by current U.S. GAAP to recognize as revenue the entire sales price of these online-enabled games and related content over the period we expect to offer the unspecified updates to the consumer (“estimated offering period”). Other Multiple-Element Arrangements In some of our multiple-element arrangements, we sell non-software products with software and/or software-related offerings. These non-software products are generally music soundtracks, peripherals or ancillary collectors’ items, such as figurines and comic books. Revenue for these arrangements is allocated to each separate unit of accounting for each deliverable using the relative selling prices of each deliverable in the arrangement based on the selling price hierarchy described below. If the arrangement contains more than one software deliverable, the arrangement consideration is allocated to the software deliverables as a group and then allocated to each software deliverable. We determine the selling price for a non-software product deliverable based on the following selling price hierarchy: VSOE ( i.e. , the price we charge when the non-software product is sold separately) if available, third-party evidence (“TPE”) of fair value ( i.e. , the price charged by others for similar non-software products) if VSOE is not available, or our best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. Determining the BESP is a subjective process that is based on multiple factors including, but not limited to, recent selling prices and related discounts, market conditions, customer classes, sales channels and other factors. Provided the other three revenue recognition criteria other than delivery have been met, we recognize revenue upon delivery to the customer as we have no further obligations. Principal Agent Considerations We evaluate sales of our interactive software games, extra-content, and services from our subscription offerings via third party storefronts, including digital channel storefronts such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple App Store, and Google Play, in order to determine whether or not we are acting as the primary obligor in the sale to the end consumer, which we consider in determining if revenue should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining gross versus net treatment include but are not limited to the following: • The party responsible for delivery/fulfillment of the product or service to the end consumer • The party responsible for the billing, collection of fees and refunds to the end consumer • The storefront and Terms of Sale that govern the end consumer’s purchase of the product or service • The party that sets the pricing with the end consumer and has credit risk Based on evaluation of the above indicators, we have determined that generally the third party is considered the primary obligor to end consumers for the sale of our interactive software games. We therefore report revenue related to these arrangements net of the fees retained by the storefront. Sales Returns and Allowances and Bad Debt Reserves We reduce revenue for estimated future returns and price protection which may occur with our distributors and retailers (“channel partners”). Price protection represents our practice to provide our channel partners with a credit allowance to lower their wholesale price on a particular product that they have not resold to end consumers. The amount of the price protection is generally the difference between the old wholesale price and the new reduced wholesale price. In certain countries for our PC and console packaged goods software products, we also have a practice of allowing channel partners to return older software products in the channel in exchange for a credit allowance. As a general practice, we do not give cash refunds. We determine our allowance for doubtful accounts by evaluating the following: customer creditworthiness, current economic trends, historical experience, age of current accounts receivable balances, and changes in financial condition or payment terms of our customers. Significant management judgment is required to estimate our allowance for doubtful accounts in any accounting period. Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our Consolidated Statements of Operations. Concentration of Credit Risk, Significant Customers, and Platform Partners We extend credit to various digital resellers and channel partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. Although we generally do not require collateral, we perform ongoing credit evaluations of our customers and maintain reserves for potential credit losses. Invoices are aged based on contractual terms with our customers. The provision for doubtful accounts is recorded as a charge to general and administrative expense when a potential loss is identified. Losses are written off against the allowance when the receivable is determined to be uncollectible. At March 31, 2017 , we had three customers who accounted for approximately 27 percent , 22 percent , and 11 percent of our consolidated gross receivables, respectively. At March 31, 2016 , we had two customers who accounted for 26 percent and 24 percent of our consolidated gross receivables, respectively. A majority of our sales are made via digital resellers and channel partners. During the fiscal year ended March 31, 2017 , approximately 64 percent of our net revenue was derived from our top ten customers. Though our products and services are available to consumers through a variety of retailers, digital resellers and directly through us, the concentration of our sales in one, or a few, large customers could lead to a short-term disruption in our sales if one or more digital resellers and channel partners significantly reduced their purchases or ceased to carry our products and services, and could make us more vulnerable to collection risk if one or more of these large customers became unable to pay for our products or declared bankruptcy. Currently, a majority of our revenue is derived through sales of products and services playable on hardware consoles from Sony and Microsoft. For the fiscal years ended March 31, 2017, 2016 and 2015 , our net revenue for products and services on Sony’s PlayStation 3 and 4, and Microsoft’s Xbox 360 and One consoles (combined across all four platforms) was 70 percent , 67 percent , and 66 percent , respectively. These platform partners have significant influence over the products and services that we offer on their platforms. Our agreements with Sony and Microsoft typically give significant control to them over the approval, manufacturing and distribution of our products and services, which could, in certain circumstances, leave us unable to get our products and services approved, manufactured and provided to customers. Short-term investments are placed with high quality financial institutions or in short-duration, investment-grade securities. We limit the amount of credit exposure in any one financial institution or type of investment instrument. Royalties and Licenses 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 generally at the greater of the contractual rate or an effective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. 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. Advertising Costs We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. Cooperative advertising costs are recognized when incurred and are included in marketing and sales expense if there is a separate identifiable benefit for which we can reasonably estimate the fair value of the benefit identified. Otherwise, they are recognized as a reduction of revenue and are generally accrued when revenue is recognized. We then reimburse the channel partner when qualifying claims are submitted. We are also reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Otherwise, vendor reimbursements are recognized as a reduction of the cost incurred with the same vendor. Vendor reimbursements of advertising costs of $53 million , $51 million , and $43 million reduced marketing and sales expense for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively. For the fiscal years ended March 31, 2017, 2016 and 2015 , advertising expense, net of vendor reimbursements, totaled approximately $281 million , $240 million , and $228 million , respectively. Software Development Costs Research and development costs, which consist primarily of software development costs, are expensed as incurred. We are required to capitalize software development costs incurred for computer software to be sold, leased or otherwise marketed after technological feasibility of the software is established or for development costs that have alternative future uses. Under our current practice of developing new games, the technological feasibility of the underlying software is not established until substantially all product development and testing is complete, which generally includes the development of a working model. Software development costs that have been capitalized to date have been insignificant. Foreign Currency Translation Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net foreign currency transaction gains (losses) of $(40) million , $(14) million , and $(62) million for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net foreign currency transaction gains (losses) are partially offset by net gains (losses) on our foreign currency forward contracts of $46 million , $15 million , and $59 million for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively. See Note 4 for additional information on our foreign currency forward contracts. Income Taxes 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. Recently Adopted 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 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. We adopted ASU 2015-05 in the first quarter of fiscal year 2017. The adoption did not have a material impact on our Consolidated Financial Statements. Impact of Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting , related to simplifications of employee share-based payment accounting. This pronouncement eliminates the APIC pool concept and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled. The pronouncement also addresses simplifications related to statement of cash flows classification, accounting for forfeitures, and minimum statutory tax withholding requirements. We will adopt this new standard in the first quarter of fiscal year 2018. Upon adoption of ASU 2016-09, excess tax benefits and tax deficiencies from employee share-based award activity will be reflected in the Consolidated Statements of Income as a component of the provision for income taxes, whereas they previously were recognized in additional paid-in-capital. We will also account for forfeitures as they occur, rather than estimate expected forfeitures. We anticipate the adoption of ASU 2016-09 will result in a cumulative-effect adjustment of $8 million , net of tax, decrease to retained earnings as a result of the change in recognition for forfeitures. The adoption of ASU 2016-09 will also require two changes to our cash flow presentation. Excess tax benefits are required to be presented as operating activities rather than financing activities, and cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements are required to be presented as a financing activity because such payments represent an entity’s cash outflow to reacquire the entity’s shares. We currently classify cash paid to taxing authorities for shares withheld as an operating activity. Upon adoption, the net increase to our reported net cash provided by Operating Activities and corresponding increase to cash used in Financing Activities for the fiscal years ended March 31, 2017, 2016 and 2015 are as follows: Year Ended March 31, (In millions): 2017 2016 2015 Excess tax benefit from stock-based compensation 65 86 22 Cash paid to taxing authorities for |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and 2016 , 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 As of March 31, 2017 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 233 $ 233 $ — $ — Cash equivalents Money market funds 405 405 — — Cash equivalents Available-for-sale securities: Corporate bonds 963 — 963 — Short-term investments and cash equivalents U.S. Treasury securities 460 460 — — Short-term investments and cash equivalents U.S. agency securities 172 — 172 — Short-term investments and cash equivalents Commercial paper 270 — 270 — Short-term investments and cash equivalents Foreign government securities 113 — 113 — Short-term investments Asset-backed securities 135 — 135 — Short-term investments Foreign currency derivatives 19 — 19 — Other current assets and other assets Deferred compensation plan assets (a) 8 8 — — Other assets Total assets at fair value $ 2,778 $ 1,106 $ 1,672 $ — Liabilities Foreign currency derivatives 8 — 8 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 9 9 — — Other liabilities Total liabilities at fair value $ 17 $ 9 $ 8 $ — Fair Value Measurements at Reporting Date Using As of March 31, 2016 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 345 $ 345 $ — $ — Cash equivalents Money market funds 143 143 — — Cash equivalents Available-for-sale securities: Corporate bonds 623 — 623 — Short-term investments and cash equivalents U.S. Treasury securities 407 407 — — Short-term investments and cash equivalents U.S. agency securities 170 — 170 — Short-term investments and cash equivalents Commercial paper 81 — 81 — Short-term investments and cash equivalents Foreign government securities 122 — 122 — Short-term investments and cash equivalents Foreign currency derivatives 16 — 16 — Other current assets and other assets Deferred compensation plan assets (a) 8 8 — — Other assets Total assets at fair value $ 1,915 $ 903 $ 1,012 $ — Liabilities Foreign currency derivatives 10 — 10 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 9 9 — — Other liabilities Total liabilities at fair value $ 19 $ 9 $ 10 $ — (a) The Deferred Compensation Plan assets consist of various mutual funds. See Note 13 for additional information regarding our Deferred Compensation Plan. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Mar. 31, 2017 | |
Financial Instruments [Abstract] | |
Financial Instruments | (3) FINANCIAL INSTRUMENTS Cash and Cash Equivalents As of March 31, 2017 and 2016 , our cash and cash equivalents were $2,565 million and $2,493 million , respectively. Cash equivalents were valued using quoted market prices or other readily available market information. Short-Term Investments Short-term investments consisted of the following as of March 31, 2017 and 2016 (in millions): As of March 31, 2017 As of March 31, 2016 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 944 $ — $ (1 ) $ 943 $ 620 $ 1 $ — $ 621 U.S. Treasury securities 414 — (1 ) 413 389 1 — 390 U.S. agency securities 152 — (1 ) 151 167 — — 167 Commercial paper 212 — — 212 50 — — 50 Foreign government securities 113 — — 113 113 — — 113 Asset-backed securities 135 — — 135 — — — — Short-term investments $ 1,970 $ — $ (3 ) $ 1,967 $ 1,339 $ 2 $ — $ 1,341 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2017 and 2016 (in millions): As of March 31, 2017 As of March 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 1,237 $ 1,236 $ 571 $ 571 Due 1 year through 5 years 721 719 768 770 Due after 5 years 12 12 — — Short-term investments $ 1,970 $ 1,967 $ 1,339 $ 1,341 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2017 | |
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/other assets, or accrued and other current liabilities/other liabilities, respectively, on our 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, Australian dollar, Chinese yuan and South Korean won. In addition, we utilize foreign currency forward contracts to mitigate foreign currency exchange 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/other assets, or accrued and other current liabilities/other liabilities, respectively, on our 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 (loss) 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 Consolidated Statements of Operations. In the event that the gains or losses in accumulated other comprehensive income (loss) 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 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 (loss) to interest and other income (expense), net, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions): As of March 31, 2017 As of March 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 185 $ — $ 5 $ 148 $ 5 $ 1 Forward contracts to sell $ 840 $ 19 $ 3 $ 685 $ 11 $ 9 The net impact of the effective portion of gains and losses from our cash flow hedging activities in our Consolidated Statements of Operations was a gain of $36 million and $12 million for the fiscal years ended March 31, 2017 and 2016, respectively, and a loss of $11 million for fiscal year ended March 31, 2015. During fiscal years ended March 31, 2017, 2016 and 2015 , 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. The amount excluded from the assessment of hedge effectiveness during fiscal years ended March 31, 2017, 2016 and 2015 and recognized in interest and other income (expense), net, was immaterial. 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 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 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 Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions): As of March 31, 2017 As of March 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 87 $ — $ — $ 108 $ — $ — Forward contracts to sell $ 166 $ — $ — $ 159 $ — $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2017, 2016 and 2015 , was as follows (in millions): Statement of Operations Classification Amount of Gain (Loss) Recognized in the Statement of Operations Year Ended March 31, 2017 2016 2015 Foreign currency forward contracts not designated as hedging instruments Interest and other income (expense), net $ 43 $ 16 $ 58 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Mar. 31, 2017 | |
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 fiscal years ended March 31, 2017, 2016 and 2015 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, 2014 $ (4 ) $ (10 ) $ 51 $ 37 Other comprehensive income (loss) before reclassifications 1 20 (67 ) (46 ) Amounts reclassified from accumulated other comprehensive income (loss) — 11 — 11 Total other comprehensive income (loss), net of tax 1 31 (67 ) (35 ) Balances as of March 31, 2015 $ (3 ) $ 21 $ (16 ) $ 2 Other comprehensive income (loss) before reclassifications 4 5 (15 ) (6 ) Amounts reclassified from accumulated other comprehensive income (loss) — (12 ) — (12 ) Total other comprehensive income (loss), net of tax 4 (7 ) (15 ) (18 ) Balances as of March 31, 2016 $ 1 $ 14 $ (31 ) $ (16 ) Other comprehensive income (loss) before reclassifications (3 ) 54 (17 ) 34 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (36 ) — (37 ) Total other comprehensive income (loss), net of tax (4 ) 18 (17 ) (3 ) Balances as of March 31, 2017 $ (3 ) $ 32 $ (48 ) $ (19 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the fiscal years ended March 31, 2017, 2016 and 2015 were as follows (in millions): Statement of Operations Classification Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Year Ended March 31, 2017 2016 2015 (Gains) and losses on available-for-sale securities Interest and other income (expense), net (1 ) — — Net of tax (1 ) — — (Gains) losses on cash flow hedges from forward contracts Net revenue (37 ) (23 ) (2 ) Research and development 1 11 13 Net of tax (36 ) (12 ) 11 Total net (gain) loss reclassified, net of tax $ (37 ) $ (12 ) $ 11 |
Goodwill And Acquisition-Relate
Goodwill And Acquisition-Related Intangibles, Net | 12 Months Ended |
Mar. 31, 2017 | |
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 fiscal year ended March 31, 2017 are as follows (in millions): As of Effects of Foreign Currency Translation As of Goodwill $ 2,078 $ (3 ) $ 2,075 Accumulated impairment (368 ) — (368 ) Total $ 1,710 $ (3 ) $ 1,707 The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2016 are as follows (in millions): As of Effects of Foreign Currency Translation As of Goodwill $ 2,081 $ (3 ) $ 2,078 Accumulated impairment (368 ) — (368 ) Total $ 1,713 $ (3 ) $ 1,710 Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Acquisition-related intangibles, consisted of the following (in millions): As of March 31, 2017 As of March 31, 2016 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 412 $ (412 ) $ — $ 412 $ (368 ) $ 44 Trade names and trademarks 106 (98 ) 8 106 (93 ) 13 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — Total $ 608 $ (600 ) $ 8 $ 608 $ (551 ) $ 57 Amortization of intangibles for the fiscal years ended March 31, 2017, 2016 and 2015 are classified in the Consolidated Statement of Operations as follows (in millions): Year Ended March 31, 2017 2016 2015 Cost of service and other $ 16 $ 33 $ 36 Cost of product 27 14 16 Operating expenses 6 7 14 Total $ 49 $ 54 $ 66 During fiscal year 2017, we determined that the carrying value of one of our acquisition-related intangible assets was not recoverable. The acquisition-related intangible asset was measured using Level 3 inputs and was written down to a fair value of zero. We recognized an impairment charge of $15 million in cost of product revenue in our Consolidated Statements of Operations. There were no impairment charges for acquisition-related intangible assets during fiscal years 2016 and 2015. As of March 31, 2017 and 2016 , the weighted-average remaining useful life for acquisition-related intangible assets was approximately 1.4 years and 1.6 years , respectively. As of March 31, 2017 , future amortization of acquisition-related intangibles that will be recorded in the Consolidated Statement of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2018 6 2019 2 Total $ 8 |
Royalties And Licenses
Royalties And Licenses | 12 Months Ended |
Mar. 31, 2017 | |
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. 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 fiscal year 2017 , we determined that the carrying value of certain of our royalty-based assets and certain previously unrecognized minimum royalty-based commitments were not recoverable. We recognized impairment charges of $23 million on the assets and a loss of $19 million on the commitments. Of the total $42 million loss, $10 million was included in cost of service revenue and $32 million was included in research and development expenses in our Consolidated Statements of Operations. During fiscal year 2016, we did not recognize any material losses or impairment charges on royalty-based assets or royalty-based commitments. During fiscal year 2015, we recognized a loss of $122 million on a previously unrecognized licensed intellectual property commitment. The $122 million loss related 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 $15 million for the accretion of interest expense related to this obligation. This interest expense will be included in cost of product revenue in our 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 March 31, 2017 2016 Other current assets $ 79 $ 54 Other assets 39 63 Royalty-related assets $ 118 $ 117 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 March 31, 2017 2016 Accrued royalties $ 165 $ 159 Other liabilities 97 118 Royalty-related liabilities $ 262 $ 277 As of March 31, 2017 , we were committed to pay approximately $1,140 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 Consolidated Financial Statements. See Note 11 for further information on our developer and licensor commitments. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | (8) BALANCE SHEET DETAILS Property and Equipment, Net Property and equipment, net, as of March 31, 2017 and 2016 consisted of (in millions): As of March 31, 2017 2016 Computer equipment and software $ 723 $ 684 Buildings 316 313 Leasehold improvements 126 129 Equipment, furniture and fixtures, and other 82 80 Land 61 61 Construction in progress 7 15 1,315 1,282 Less: accumulated depreciation (881 ) (843 ) Property and equipment, net $ 434 $ 439 Depreciation expense associated with property and equipment was $115 million , $119 million and $126 million for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively. Accrued and Other Current Liabilities Accrued and other current liabilities as of March 31, 2017 and 2016 consisted of (in millions): As of March 31, 2017 2016 Accrued compensation and benefits $ 267 $ 256 Other accrued expenses 210 218 Accrued royalties 165 159 Deferred net revenue (other) 147 77 Accrued and other current liabilities $ 789 $ 710 Deferred net revenue (other) includes the deferral of subscription revenue, 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 $1,539 million and $1,458 million as of March 31, 2017 and 2016 , 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 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 generally during the period in which the product is delivered (rather than on a deferred basis). |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (9) INCOME TAXES The components of our income before provision for (benefit from) income taxes for the fiscal years ended March 31, 2017, 2016 and 2015 are as follows (in millions): Year Ended March 31, 2017 2016 2015 Domestic $ 382 $ 133 $ 232 Foreign 828 744 693 Income before provision for (benefit from) income taxes $ 1,210 $ 877 $ 925 Provision for (benefit from) income taxes for the fiscal years ended March 31, 2017, 2016 and 2015 consisted of (in millions): Current Deferred Total Year Ended March 31, 2017 Federal $ 86 $ 96 $ 182 State 3 9 12 Foreign 51 (2 ) 49 $ 140 $ 103 $ 243 Year Ended March 31, 2016 Federal $ 69 $ (376 ) $ (307 ) State 5 (14 ) (9 ) Foreign 36 1 37 $ 110 $ (389 ) $ (279 ) Year Ended March 31, 2015 Federal $ 10 $ 17 $ 27 State — — — Foreign 21 2 23 $ 31 $ 19 $ 50 Excess tax benefits from stock-based compensation deductions are allocated to contributed capital before historical net operating losses are utilized to reduce tax expense. The income tax provision includes tax benefits allocated directly to contributed capital of $65 million , $83 million and $22 million for fiscal years 2017, 2016, and 2015 , respectively. The differences between the statutory tax expense rate and our effective tax expense (benefit) rate, expressed as a percentage of income before provision for (benefit from) income taxes, for the fiscal years ended March 31, 2017, 2016 and 2015 were as follows: Year Ended March 31, 2017 2016 2015 Statutory federal tax expense rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.0 % 0.5 % 0.1 % Differences between statutory rate and foreign effective tax rate (19.3 )% (22.1 )% (22.3 )% Valuation allowance — % (51.7 )% (9.2 )% Research and development credits (0.7 )% (0.6 )% (1.1 )% Unremitted earnings of foreign subsidiaries 2.2 % 4.9 % — % Non-deductible stock-based compensation 2.3 % 3.1 % 3.5 % Other (0.4 )% (0.9 )% (0.6 )% Effective tax expense (benefit) rate 20.1 % (31.8 )% 5.4 % We generated income in lower tax jurisdictions primarily related to our European and Asia Pacific businesses that are headquartered in Switzerland. Prior to the fourth quarter of fiscal 2016, we considered all undistributed earnings of our foreign subsidiaries to be indefinitely reinvested outside of the United States and, accordingly, no U.S. taxes had been provided thereon. During the fourth quarter of fiscal year 2016, we reevaluated our intent to indefinitely reinvest all earnings of foreign subsidiary companies, and concluded that a portion of earnings of certain subsidiaries will no longer be considered to be indefinitely reinvested. We currently intend to continue to indefinitely reinvest a substantial majority of the undistributed earnings of our foreign subsidiaries outside of the United States. Undistributed earnings of our foreign subsidiaries that are considered to be indefinitely reinvested are $1,845 million as of March 31, 2017. As we currently have no plans to repatriate those earnings, no U.S. income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various foreign countries. As we do not know the time or manner in which we would repatriate those funds, it is not practicable to determine the impact of local taxes, withholding taxes and foreign tax credits associated with the future repatriation of such earnings and therefore we cannot quantify the tax liability. The components of net deferred tax assets, as of March 31, 2017 and 2016 consisted of (in millions): As of March 31, 2017 2016 Deferred tax assets: Accruals, reserves and other expenses $ 151 $ 171 Tax credit carryforwards 276 334 Stock-based compensation 37 39 Net operating loss & capital loss carryforwards 25 28 Total 489 572 Valuation allowance (114 ) (114 ) Deferred tax assets, net of valuation allowance 375 458 Deferred tax liabilities: Amortization and depreciation (19 ) (27 ) Unremitted earnings of foreign subsidiaries (70 ) (43 ) Prepaids and other liabilities (1 ) (3 ) Total (90 ) (73 ) Deferred tax assets, net of valuation allowance and deferred tax liabilities $ 285 $ 385 In the fourth quarter of fiscal year 2016, we realized significant U.S. pre-tax income for both the fourth quarter and the fiscal year ended March 31, 2016. As a result, we released the valuation allowance against all of the U.S. federal deferred tax assets and a portion of the U.S. state deferred tax assets during the fourth quarter of fiscal year 2016. As of March 31, 2017, we maintained a valuation allowance of $114 million , primarily related to certain U.S. state deferred tax assets and foreign capital loss carryovers, due to uncertainty about the future realization of these assets. In determining the amount of deferred tax assets that are more likely than not to be realized, we evaluated the potential to realize the assets through the utilization of tax loss and credit carrybacks, the reversal of existing taxable temporary differences, future taxable income exclusive of the reversal of existing taxable temporary differences, and certain tax planning strategies. As of March 31, 2017, we have state net operating loss carry forwards of approximately $871 million of which approximately $99 million is attributable to various acquired companies. These carryforwards, if not fully realized, will begin to expire in 2018. We also have U.S. federal, California and Canada tax credit carryforwards of $362 million , $96 million and $7 million , respectively. The U.S. federal tax credit carryforwards will begin to expire in 2024. The California and Canada tax credit carryforwards can be carried forward indefinitely. The total unrecognized tax benefits as of March 31, 2017, 2016 and 2015 were $389 million , $331 million and $254 million , respectively. A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Balance as of March 31, 2014 $ 232 Increases in unrecognized tax benefits related to prior year tax positions 9 Decreases in unrecognized tax benefits related to prior year tax positions (14 ) Increases in unrecognized tax benefits related to current year tax positions 50 Decreases in unrecognized tax benefits related to settlements with taxing authorities (6 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (7 ) Changes in unrecognized tax benefits due to foreign currency translation (10 ) Balance as of March 31, 2015 254 Increases in unrecognized tax benefits related to prior year tax positions 33 Decreases in unrecognized tax benefits related to prior year tax positions (4 ) Increases in unrecognized tax benefits related to current year tax positions 63 Decreases in unrecognized tax benefits related to settlements with taxing authorities (10 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (4 ) Changes in unrecognized tax benefits due to foreign currency translation (1 ) Balance as of March 31, 2016 331 Increases in unrecognized tax benefits related to prior year tax positions 3 Decreases in unrecognized tax benefits related to prior year tax positions (3 ) Increases in unrecognized tax benefits related to current year tax positions 64 Decreases in unrecognized tax benefits related to settlements with taxing authorities — Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (3 ) Changes in unrecognized tax benefits due to foreign currency translation (3 ) Balance as of March 31, 2017 $ 389 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 March 31, 2017 , approximately $362 million of the unrecognized tax benefits would affect our effective tax rate and approximately $27 million would result in adjustments to the deferred tax valuation allowance. Interest and penalties related to estimated obligations for tax positions taken in our tax returns are recognized in income tax expense in our Consolidated Statements of Operations. The combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current other liabilities was approximately $14 million as of March 31, 2017 and $15 million as of March 31, 2016 . 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 2013. We are also currently under income tax examination in the United Kingdom for fiscal years 2010 through 2015, France for fiscal years 2014 through 2016, Spain for fiscal years 2014 through 2015, and India for fiscal years 2009 through 2012. We remain subject to income tax examination for several other jurisdictions including in Germany for fiscal years after 2012, France for fiscal years after 2016, the United Kingdom for fiscal years after 2015, and 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 $50 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 | 12 Months Ended |
Mar. 31, 2017 | |
Debt Instruments [Abstract] | |
Financing Arrangement | (10) FINANCING ARRANGEMENTS 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 “Convertible Notes”). The Convertible Notes matured on July 15, 2016. The Convertible Notes paid interest semiannually in arrears at a rate of 0.75% per annum. The Convertible Notes were 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 Convertible Notes (equivalent to an initial conversion price of approximately $31.74 per share). Upon conversion of the Convertible Notes, holders received cash up to the principal amount of each Convertible Note, and any excess conversion value was delivered in shares of our common stock. During fiscal year 2017, we repaid $163 million of the principal balance of the Convertible Notes and issued approximately 2.9 million shares of common stock to noteholders with a fair value of $222 million , resulting in a loss on extinguishment of $0.3 million . The carrying and fair values of the Convertible Notes are as follows (in millions): As of As of Principal amount of Convertible Notes $ — $ 163 Unamortized debt discount of the liability component — (2 ) Net carrying value of Convertible Notes $ — $ 161 Fair value of Convertible Notes (Level 2) $ — $ 338 Convertible Note Hedge and Warrants Issuance In July 2011, we entered into certain agreements designed to reduce the potential dilution with respect to our common stock upon conversion of the Convertible Notes (“the Convertible Note Hedge”). The Convertible Note Hedge provided 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 Convertible Notes at a strike price of $31.74 , which corresponds to the conversion price of the Convertible Notes. During fiscal year 2017, we received 2.9 million shares of our common stock under the Convertible Note Hedge, which offsets the 2.9 million shares of common stock we issued for the Convertible Notes noted above. 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 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 Convertible Notes), with a strike price of $41.14 . The Warrants expired on January 12, 2017 . We issued a total of 9.6 million shares upon exercise of the Warrants during fiscal year 2017. Effect of conversion on earning per share (“EPS”) Prior to conversion of the Convertible Notes, we included the effect of the additional potential dilutive shares if our common stock price exceeded $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 also included the effect of the additional potential dilutive shares related to the Warrants using the treasury stock method. Prior to conversion, the Convertible Note Hedge was not considered for purposes of the EPS calculation, as its effect would have been anti-dilutive. Upon conversion, the Convertible Note Hedge offset the dilutive effect of the Notes when the stock price was above $31.74 per share. See Note 15 for additional information related to our EPS. Senior Notes In February 2016 , we issued $600 million aggregate principal amount of 3.70% Senior Notes due March 1, 2021 (the “2021 Notes”) and $400 million aggregate principal amount of 4.80% Senior Notes due March 1, 2026 (the “2026 Notes,” and together with the 2021 Notes, the “Senior Notes”). Our proceeds were $989 million , net of discount of $2 million and issuance costs of $9 million . Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2021 Notes and the 2026 Notes using the effective interest rate method. The effective interest rate is 3.94% for the 2021 Notes and 4.97% for the 2026 Notes. Interest is payable semiannually in arrears, on March 1 and September 1 of each year. The carrying and fair values of the Senior Notes are as follows (in millions): As of As of Senior Notes: 3.70% Senior Notes due 2021 $ 600 $ 600 4.80% Senior Notes due 2026 400 400 Total principal amount $ 1,000 $ 1,000 Unaccreted discount (2 ) (2 ) Unamortized debt issuance costs (8 ) (9 ) Net carrying value of Senior Notes $ 990 $ 989 Fair value of Senior Notes (Level 2) $ 1,054 $ 1,039 As of March 31, 2017 , the remaining life of the 2021 Notes and 2026 Notes is approximately 3.9 years and 8.9 years , respectively. The Senior Notes are senior unsecured obligations and rank equally with all our other existing and future unsubordinated obligations and any indebtedness that we may incur from time to time under our Credit Facility. The 2021 Notes and the 2026 Notes are redeemable at our option at any time prior to February 1, 2021 or December 1, 2025, respectively, subject to a make-whole premium. Within one and three months of maturity, we may redeem the 2021 Notes or the 2026 Notes, respectively, at a redemption price equal to 100% of the aggregate principal amount plus accrued and unpaid interest. In addition, upon the occurrence of a change of control repurchase event, the holders of the Senior Notes may require us to repurchase all or a portion of the Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The Senior Notes also include covenants that limit our ability to incur liens on assets and to enter into sale and leaseback transactions, subject to certain allowances. Credit Facility In March 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 . The Credit Facility contains an option to arrange with existing lenders and/or new lenders 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 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 March 31, 2017 and 2016 , 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. Interest Expense The following table summarizes our interest expense recognized for fiscal years 2017, 2016, and 2015 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31, 2017 2016 2015 Amortization of debt discount (2 ) (17 ) (22 ) Amortization of debt issuance costs (2 ) (3 ) (3 ) Coupon interest expense (42 ) (7 ) (5 ) Other interest expense (1 ) (1 ) (1 ) Total interest expense $ (47 ) $ (28 ) $ (31 ) |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | (11) COMMITMENTS AND CONTINGENCIES Lease Commitments As of March 31, 2017 , 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 and PLAYERS Inc. (professional football); Zuffa, LLC (Ultimate Fighting Championship); ESPN (content in EA SPORTS games); Disney Interactive (Star Wars); Fox Digital Entertainment, Inc. (The Simpsons); Universal Studios Inc. (Pets); and Respawn. 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 March 31, 2017 (in millions): Fiscal Year Ending March 31, Total 2018 2019 2020 2021 2022 Thereafter Unrecognized commitments Developer/licensor commitments $ 1,140 $ 208 $ 271 $ 226 $ 175 $ 179 $ 81 Marketing commitments 445 78 83 116 72 72 24 Operating leases 212 35 34 31 29 22 61 Senior Notes interest 258 38 41 41 41 19 78 Other purchase obligations 95 35 19 13 7 4 17 Total unrecognized commitments 2,150 394 448 427 324 296 261 Recognized commitments Senior Notes principal and interest 1,003 3 — — 600 — 400 Licensing and lease obligations 126 23 24 25 26 28 — Total recognized commitments 1,129 26 24 25 626 28 400 Total Commitments $ 3,279 $ 420 $ 472 $ 452 $ 950 $ 324 $ 661 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 Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of March 31, 2017 ; however, certain payment obligations may be accelerated depending on the performance of our operating results. Furthermore, 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 their fair market value at the time of issuance. In addition to what is included in the table above, as of March 31, 2017 , we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $104 million , of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. Total rent expense for our operating leases was $91 million , $89 million and $97 million for the fiscal years ended March 31, 2017, 2016 and 2015, respectively. Legal Proceedings 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 United States District Court for the Northern District of California. On February 2, 2017, the United States District Court for the Northern District of California denied the plaintiffs’ motion for class certification. 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 Consolidated Financial Statements. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Mar. 31, 2017 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock | (12) PREFERRED STOCK As of March 31, 2017 and 2016 , we had 10,000,000 shares of preferred stock authorized but unissued. The rights, preferences, and restrictions of the preferred stock may be designated by our Board of Directors without further action by our stockholders. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation And Employee Benefit Plans | (13) STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS Valuation Assumptions We estimate the fair value of stock-based awards on the date of grant. We recognize compensation costs for stock-based awards to employees based on the grant-date fair value using a straight-line approach over the service period for which such awards are expected to vest. The determination of the fair value of market-based restricted stock units, stock options and ESPP purchase rights 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 awards as follows: • Restricted Stock Units . The fair value of restricted stock units is determined based on the quoted market price of our common stock on the date of grant. • 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, as amended (“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 an insignificant number of stock options granted during fiscal years 2017 and 2016 . The assumptions used in the Black-Scholes valuation model to value our stock option grants and ESPP purchase rights were as follows: Stock Option Grants ESPP Purchase Rights Year Ended March 31, Year Ended March 31, 2015 2017 2016 2015 Risk-free interest rate 1.1 - 1.9% 0.5 - 0.8% 0.3 - 0.6% 0.04 - 0.2% Expected volatility 36 - 40% 25 - 32% 32 - 36% 30 - 35% Weighted-average volatility 38 % 27 % 33 % 34 % Expected term 4.5 years 6 - 12 months 6 - 12 months 6 - 12 months Expected dividends None None None None The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Year Ended March 31, 2017 2016 2015 Risk-free interest rate 0.8 % 1.0 % 0.9 % Expected volatility 16 - 57% 14 - 53% 16 - 79% Weighted-average volatility 29 % 26 % 30 % Expected dividends None None None Stock-Based Compensation Expense Employee stock-based compensation expense recognized during the fiscal years ended March 31, 2017, 2016 and 2015 was calculated based on awards ultimately expected to vest and has been reduced for estimated forfeitures. Upon adoption of ASU 2016-09 in the first quarter of fiscal year 2018, forfeitures will be accounted for as they occur rather than estimated. The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 2017 2016 2015 Cost of revenue $ 3 $ 2 $ 2 Research and development 109 103 82 Marketing and sales 31 24 21 General and administrative 53 49 39 Stock-based compensation expense $ 196 $ 178 $ 144 During the fiscal years ended March 31, 2017 and 2016 , we recognized $43 million and $38 million , respectively, of deferred income tax benefit related to our stock-based compensation expense. During the fiscal year ended March 31, 2015 , we did not recognize any benefit from income taxes related to our stock-based compensation expense. As of March 31, 2017 , our total unrecognized compensation cost related to restricted stock units and market-based restricted stock units was $275 million and is expected to be recognized over a weighted-average service period of 1.5 years . Of the $275 million of unrecognized compensation cost, $35 million relates to market-based restricted stock units. As of March 31, 2017 , our total unrecognized compensation cost related to stock options was $2 million and is expected to be recognized over a weighted-average service period of 0.4 years . Summary of Plans and Plan Activity Equity Incentive Plans Our 2000 Equity Incentive Plan, as amended, (the “Equity Plan”) allows us to grant options to purchase our common stock and to grant restricted stock, restricted stock units and stock appreciation rights to our employees, officers, and directors. Pursuant to the Equity Plan, incentive stock options may be granted to employees and officers and non-qualified options may be granted to employees, officers, and directors, at not less than 100 percent of the fair market value on the date of grant. At our Annual Meeting of Stockholders, held on July 28, 2016, our stockholders approved (a) an amendment to our Equity Plan to increase the number of shares of common stock authorized under the Equity Plan by 12.9 million shares, and (b) an amendment to the ESPP to increase the number of shares authorized under the ESPP by 3.0 million shares. Approximately 24.3 million options or 17.0 million restricted stock units were available for grant under our Equity Plan as of March 31, 2017 . Stock Options Options granted under the Equity Plan generally expire ten years from the date of grant and generally vest according to one of the following schedules: • 35 month vesting with 1/3 vesting after 11, 23 and 35 months; • Three-year vesting with 1/3 vesting at the end of each year; • 50 month vesting with 24% of the shares vesting after 12 months and 2% vesting monthly over the following 38 months. The following table summarizes our stock option activity for the fiscal year ended March 31, 2017 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2016 3,278 $ 35.09 Granted 6 74.93 Exercised (876 ) 40.04 Forfeited, cancelled or expired (31 ) 35.75 Outstanding as of March 31, 2017 2,377 $ 33.35 5.30 $ 134 Vested and expected to vest 2,358 $ 33.38 5.29 $ 132 Exercisable as of March 31, 2017 1,903 $ 33.61 4.88 $ 106 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2017 , 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 fiscal year 2015 was $12.01 . The total intrinsic values of stock options exercised during fiscal years 2017, 2016, and 2015 were $39 million , $38 million and $22 million , respectively. We issue new common stock from our authorized shares upon the exercise of stock options. The following table summarizes outstanding and exercisable stock options as of March 31, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Shares (in thousands) Weighted- Average Remaining Contractual Term (in years) Weighted- Average Exercise Prices Potential Dilution Number of Shares (in thousands) Weighted- Average Exercise Prices Potential Dilution $11.53 - $23.61 178 2.48 $ 19.40 0.1 % 178 $ 19.40 0.1 % 26.25 - 26.25 950 6.58 26.25 0.3 % 770 26.25 0.2 % 33.60 - 35.70 597 7.22 35.45 0.2 % 372 35.30 0.1 % 36.00 - 58.14 652 2.44 45.59 0.2 % 583 46.59 0.2 % $11.53 - $58.14 2,377 5.30 $ 33.35 0.8 % 1,903 $ 33.61 0.6 % Potential dilution is computed by dividing the options in the related range of exercise prices by 308 million shares of common stock, which were issued and outstanding as of March 31, 2017 . Restricted Stock Units We grant restricted stock units under our Equity Plan to employees worldwide. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent the number of restricted stock units is typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Vesting for restricted stock units is based on the holders’ continued employment with us through each applicable vest date. If the vesting conditions are not met, unvested restricted stock units will be forfeited. Generally, our restricted stock units vest according to one of the following vesting schedules: • One-year vesting with 100% cliff vesting at the end of one year; • 35 month vesting with 1/3 vesting after 11, 23 and 35 months; • Three-year vesting with 1/3 vesting at the end of each year; • Three-year vesting with 2/3 and 1/3 vesting after 24 and 36 months; • Three-year vesting with 1/4, 7/20, 1/5, and 1/5 of the shares vesting respectively at the end of each of the first 6 months, 1st, 2nd, and 3rd years; • 40 month vesting with 1/3 vesting after 16, 28, and 40 months; • 41 month vesting with 1/3 vesting after 17, 29 and 41 months; • Four-year vesting with 1/4 vesting at the end of each year or; • 42 month vesting with 2/5, 7/20, 1/5, 1/20 of shares vesting respectively after 6, 18, 30, 42 months. Each restricted stock unit granted reduces the number of shares available for grant by 1.43 shares under our Equity Plan. The following table summarizes our restricted stock units activity, excluding market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2017 : Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Values Balance as of March 31, 2016 7,157 $ 44.04 Granted 2,734 76.60 Vested (4,126 ) 37.28 Forfeited or cancelled (612 ) 58.34 Balance as of March 31, 2017 5,153 $ 65.03 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant. The weighted-average grant date fair values of restricted stock units granted during fiscal years 2017, 2016, and 2015 were $76.60 , $64.40 and $37.22 respectively. The fair values of restricted stock units that vested during fiscal years 2017, 2016, and 2015 were $320 million , $372 million and $209 million , 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 issued 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 shares of common stock issuable upon the vesting of all market-based restricted stock units granted during fiscal year 2017 is approximately 0.7 million . As of March 31, 2017 , the maximum number of shares issuable upon the vesting of all market-based restricted stock units outstanding is approximately 1.3 million . The following table summarizes our market-based restricted stock unit activity for the year ended March 31, 2017 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Balance as of March 31, 2016 636 $ 64.49 Granted 353 98.04 Vested (558 ) 50.08 Vested above target 238 44.99 Forfeited or cancelled (28 ) 84.94 Balance as of March 31, 2017 641 $ 87.37 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2017, 2016, and 2015 were $98.04 , $79.81 , and $48.14 , respectively. The fair values of market-based restricted stock units that vested during fiscal years 2017, 2016, and 2015 were $42 million , $47 million , and $23 million , respectively. ESPP Pursuant to our ESPP, eligible employees may authorize payroll deductions of between 2 percent and 10 percent of their compensation to purchase shares of common stock at 85 percent of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. The following table summarizes our ESPP activity for fiscal years ended March 31, 2017, 2016 and 2015 : Shares Issued Exercise Prices for Purchase Rights Weighted-Average Fair Values of Purchase Rights Fiscal Year 2015 1.4 $22.64 - $32.16 $ 8.26 Fiscal Year 2016 0.9 $32.16 - $54.78 $ 12.97 Fiscal Year 2017 0.7 $54.60 - $67.56 $ 17.93 The fair values were estimated on the date of grant using the Black-Scholes valuation model. We issue new common stock out of the ESPP’s pool of authorized shares. As of March 31, 2017 , 7.4 million shares were available for grant under our ESPP. Deferred Compensation Plan We have a Deferred Compensation Plan (“DCP”) for the benefit of a select group of management or highly compensated employees and directors, which is unfunded and intended to be a plan that is not qualified within the meaning of section 401(a) of the Internal Revenue Code. The DCP permits the deferral of the annual base salary and/or director cash compensation up to a maximum amount. The deferrals are held in a separate trust, which has been established by us to administer the DCP. The trust is a grantor trust and the specific terms of the trust agreement provide that the assets of the trust are available to satisfy the claims of general creditors in the event of our insolvency. The assets held by the trust are classified as trading securities and are held at fair value on our Consolidated Balance Sheets. The assets and liabilities of the DCP are presented in other assets and other liabilities on our Consolidated Balance Sheets, respectively, with changes in the fair value of the assets and in the deferred compensation liability recognized as compensation expense. The estimated fair value of the assets was $8 million and $8 million as of March 31, 2017 and 2016 , respectively. As of March 31, 2017 and 2016 , $9 million and $9 million were recorded, respectively, to recognize undistributed deferred compensation due to employees. 401(k) Plan, Registered Retirement Savings Plan and ITP Plan We have a 401(k) plan covering substantially all of our U.S. employees, a Registered Retirement Savings Plan covering substantially all of our Canadian employees, and an ITP pension plan covering substantially all our Swedish employees. These plans permit us to make discretionary contributions to employees’ accounts based on our financial performance. We contributed an aggregate of $28 million , $27 million and $27 million to these plans in fiscal years 2017, 2016, and 2015 , respectively. 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 have repurchased approximately 9.2 million shares for approximately $394 million under this program. This program was superseded and replaced by a new stock repurchase program approved in May 2015. In May 2015, our Board of Directors authorized a program to repurchase up to $1 billion of our common stock. We repurchased approximately 6.5 million and 6.9 million shares for approximately $508 million and $461 million under this program, respectively, during the fiscal years ended March 31, 2017 and 2016 . As of March 31, 2017 , $31 million remained available for repurchase under this program. We completed repurchases under the May 2015 program in April 2017. In February 2016, our Board of Directors authorized a $500 million stock repurchase program. This program was incremental to the two-year $1 billion stock repurchase program announced in May 2015. We repurchased approximately 7.8 million shares for approximately $500 million under this program. We completed repurchases under the February 2016 program during the quarter ended March 31, 2016 . In May 2017, a Special Committee of our Board of Directors, on behalf of the full Board of Directors, authorized a new program to repurchase up to $1.2 billion of our common stock. This stock repurchase program expires on May 31, 2019. 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 a specific number of shares under this program and it may be modified, suspended or discontinued at any time. We are actively repurchasing shares under this program. The following table summarizes total shares repurchased during fiscal years 2017, 2016, and 2015 : May 2014 Program May 2015 Program February 2016 Program Total (In millions) Shares Amount Shares Amount Shares Amount Shares Amount Fiscal Year 2015 8.2 $ 337 — $ — — $ — 8.2 $ 337 Fiscal Year 2016 1.0 $ 57 6.9 $ 461 7.8 $ 500 15.7 $ 1,018 Fiscal Year 2017 — $ — 6.5 $ 508 — $ — 6.5 $ 508 |
Interest And Other Income (Expe
Interest And Other Income (Expense), Net | 12 Months Ended |
Mar. 31, 2017 | |
Interest and Other Income [Abstract] | |
Interest And Other Income (Expense), Net | (14) INTEREST AND OTHER INCOME (EXPENSE), NET Interest and other income (expense), net, for the fiscal years ended March 31, 2017, 2016 and 2015 consisted of (in millions): Year Ended March 31, 2017 2016 2015 Loss on conversion of Convertible Notes $ — $ (10 ) $ — Interest expense (47 ) (28 ) (31 ) Interest income 25 15 10 Net gain (loss) on foreign currency transactions (40 ) (14 ) (62 ) Net gain (loss) on foreign currency forward contracts 46 15 59 Other income, net 2 1 1 Interest and other income (expense), net $ (14 ) $ (21 ) $ (23 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | (15) 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, ESPP purchase rights, warrants, and other convertible securities using the treasury stock method. Year Ended March 31, (In millions, except per share amounts) 2017 2016 2015 Net income $ 967 $ 1,156 $ 875 Shares used to compute earnings per share: Weighted-average common stock outstanding — basic 303 310 311 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 4 6 9 Dilutive potential common shares related to the Convertible Notes 1 6 4 Dilutive potential common shares related to the Warrants 6 8 1 Weighted-average common stock outstanding — diluted 314 330 325 Earnings per share: Basic $ 3.19 $ 3.73 $ 2.81 Diluted $ 3.08 $ 3.50 $ 2.69 For the fiscal years ended March 31, 2017 and 2016 , an immaterial amount of options to purchase, restricted stock units and restricted stock to be released were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. For the fiscal year ended March 31, 2015 , stock options to purchase, restricted stock units and restricted stock to be released in the amount of 3 million shares were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | (16) 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. As of March 31, 2017, we have only one reportable segment, which represents our only operating segment. Information about our total net revenue by composition and by platform for the fiscal years ended March 31, 2017, 2016 and 2015 is presented below (in millions): Year Ended March 31, 2017 2016 2015 Digital $ 2,874 $ 2,409 $ 2,199 Packaged goods and other 1,971 1,987 2,316 Net revenue $ 4,845 $ 4,396 $ 4,515 Packaged goods revenue includes sales of software that is distributed physically. This includes (1) sales of our internally-developed and co-published game software distributed physically through traditional channels such as brick and mortar retailers, (2) our software licensing revenue from third parties (for example, makers of console platforms, personal computers or computer accessories) who include certain of our products for sale with their products (“OEM bundles”), and (3) sales through our Switzerland distribution business. Other revenue includes our non-software licensing revenue. Digital revenue includes full-game downloads, extra content, subscriptions, advertising and other, and mobile revenue. Digital revenue includes internally-developed and co-published game software distributed through our direct-to-consumer platform Origin, distributed wirelessly through mobile carriers, or licensed to our third-party publishing partners who distribute our games digitally. Year Ended March 31, 2017 2016 2015 Platform net revenue Xbox One, PlayStation 4 $ 3,056 $ 2,183 $ 1,505 Xbox 360, PlayStation 3 331 752 1,485 Other consoles 3 7 21 Total consoles 3,390 2,942 3,011 PC / Browser 773 814 878 Mobile 627 548 504 Other 55 92 122 Net revenue $ 4,845 $ 4,396 $ 4,515 Information about our operations in North America and internationally as of and for the fiscal years ended March 31, 2017, 2016 and 2015 is presented below (in millions): Year Ended March 31, 2017 2016 2015 Net revenue from unaffiliated customers North America $ 2,119 $ 1,907 $ 1,956 International 2,726 2,489 2,559 Total $ 4,845 $ 4,396 $ 4,515 As of March 31, 2017 2016 Long-lived assets North America $ 369 $ 368 International 65 71 Total $ 434 $ 439 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 fiscal years 2017, 2016, and 2015 represents $1,886 million , $1,643 million and $1,462 million or 39 percent , 37 percent and 32 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 . In fiscal year 2017, our direct sales to Sony and Microsoft represented approximately 19 percent and 17 percent of total net revenue, respectively. In fiscal year 2016, our direct sales to Sony and Microsoft represented approximately 16 percent and 14 percent of total net revenue, respectively. In fiscal 2015, our direct sales to Microsoft and GameStop Corp. represented approximately 10 percent and 11 percent of total net revenue, respectively. |
Quarterly Financial And Market
Quarterly Financial And Market Information | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial And Market Information | (18) QUARTERLY FINANCIAL AND MARKET INFORMATION (UNAUDITED) Quarter Ended Year Ended (In millions, except per share data) June 30 September 30 December 31 March 31 Fiscal 2017 Consolidated Net revenue $ 1,271 $ 898 $ 1,149 $ 1,527 $ 4,845 Gross profit 1,092 497 633 1,325 3,547 Operating income (loss) 560 (49 ) (4 ) 717 1,224 Net income (loss) 440 (38 ) (1 ) 566 967 Common Stock Earnings (loss) per share — Basic $ 1.46 $ (0.13 ) $ ( 0.00) $ 1.84 $ 3.19 Earnings (loss) per share — Diluted $ 1.40 $ (0.13 ) $ ( 0.00) $ 1.81 $ 3.08 Common stock price per share High $ 77.25 $ 85.40 $ 85.56 $ 91.51 $ 91.51 Low $ 61.85 $ 75.38 $ 75.58 $ 78.64 $ 61.85 Fiscal 2016 Consolidated Net revenue $ 1,203 $ 815 $ 1,070 $ 1,308 $ 4,396 Gross profit 1,030 406 524 1,082 3,042 Operating income (loss) 512 (119 ) (31 ) 536 898 Net income (loss) 442 (140 ) (45 ) 899 (a) 1,156 Common Stock Earnings (loss) per share — Basic $ 1.42 $ (0.45 ) $ (0.14 ) $ 2.93 $ 3.73 Earnings (loss) per share — Diluted $ 1.32 $ (0.45 ) $ (0.14 ) $ 2.79 $ 3.50 Common stock price per share High $ 68.00 $ 75.16 $ 76.77 $ 70.83 $ 76.77 Low $ 56.03 $ 63.43 $ 65.04 $ 55.50 $ 55.50 (a) Net income includes an income tax benefit recorded in the fourth quarter of fiscal year 2016 for the reversal of a significant portion of our deferred tax valuation allowance. Our common stock is traded on the NASDAQ Global Select Market under the symbol “EA”. The prices for the common stock in the table above represent the high and low closing sales prices as reported on the NASDAQ Global Select Market. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Mar. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | ELECTRONIC ARTS INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Years Ended March 31, 2017, 2016 and 2015 (In millions) Allowance for Doubtful Accounts, Price Protection and Returns Balance at Beginning of Period Charged to Revenue, Costs and Expenses Charged (Credited) to Other Accounts (a) Deductions (b) Balance at End of Period Year Ended March 31, 2017 $ 159 298 (8 ) (304 ) $ 145 Year Ended March 31, 2016 $ 140 269 11 (261 ) $ 159 Year Ended March 31, 2015 $ 186 361 (66 ) (341 ) $ 140 (a) Primarily other reclassification adjustments and the translation effect of using the average exchange rate for expense items and the year-end exchange rate for the balance sheet item (allowance account). (b) Primarily the utilization of returns allowance and price protection reserves. |
(Policy)
(Policy) | 12 Months Ended |
Mar. 31, 2017 | |
Description Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Consolidation | Consolidation The accompanying Consolidated Financial Statements include the accounts of Electronic Arts Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year 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 ended March 31, 2017 and 2015 contained 52 weeks each and ended on April 1, 2017 and March 28, 2015, respectively. Our results of operations for the fiscal year ended March 31, 2016 contained 53 weeks and ended on April 2, 2016. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. |
Reclassifications | Reclassifications Certain prior year amounts were reclassified to conform to current year presentation. |
Use Of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. Such estimates include sales returns and allowances, provisions for doubtful accounts, accrued liabilities, offering periods for deferred net revenue, multiple-element arrangements, income taxes, losses on royalty commitments, estimates regarding the recoverability of prepaid royalties, inventories, long-lived assets, assets acquired and liabilities assumed in business combinations, certain estimates related to the measurement and recognition of costs resulting from our stock-based payment awards, unrecognized tax benefits, deferred income tax assets and associated valuation allowances, as well as estimates used in our goodwill, intangibles and short-term investment impairment tests. These estimates generally involve complex issues and require us to make judgments, involve analysis of historical and future trends, can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from our estimates. |
Cash, Cash Equivalents, Short-Term Investments And Marketable Equity Securities | Cash, Cash Equivalents, and Short-Term Investments Cash equivalents consist of highly liquid investments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. Short-term investments consist of securities with original or remaining maturities of greater than three months at the time of purchase, and are accounted for as available-for-sale securities and are recorded at fair value. Cash, cash equivalents and short-term investments are available for use in current operations or other activities such as capital expenditures, business combinations and share repurchases. Unrealized gains and losses on our short-term investments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of tax, until either (1) the security is sold, (2) the security has matured, or (3) we determine that the fair value of the security has declined below its adjusted cost basis and the decline is other-than-temporary. Realized gains and losses on our short-term investments are calculated based on the specific identification method and are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net. Determining whether a decline in fair value is other-than-temporary requires management judgment based on the specific facts and circumstances of each security. The ultimate value realized on these securities is subject to market price volatility until they are sold. Our short-term investments are evaluated for impairment quarterly. We consider various factors in determining whether we should recognize an impairment charge, including the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, severity of the impairment, 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. If we conclude that an investment is other-than-temporarily impaired, we recognize an impairment charge at that time in our Consolidated Statements of Operations. Based on our evaluation, we did not consider any of our investments to be other-than-temporarily impaired as of March 31, 2017 and 2016 . |
Inventories | Inventories Inventories consist of materials (including manufacturing royalties paid to console manufacturers), labor and freight-in and are stated at the lower of cost (using the weighted average costing method) or net realizable value. We regularly review inventory quantities on-hand. We write down inventory based on excess or obsolete inventories determined primarily by future anticipated demand for our products. Inventory write-downs are measured as the difference between the cost of the inventory and market value, based upon assumptions about future demand that are inherently difficult to assess. At the point of a loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established basis. Inventories are included in other current assets in the Consolidated Balance Sheets. |
Property And Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 years Computer equipment and software 3 to 6 years Equipment, furniture and fixtures, and other 3 to 5 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 10 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once the internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset’s estimated useful life, which is generally three years. The net book value of capitalized costs associated with internal-use software was $41 million and $55 million as of March 31, 2017 and 2016 , respectively. |
Acquisition-Related Intangibles And Other Long-Lived Assets | Acquisition-Related Intangibles and Other Long-Lived Assets We record acquisition-related intangible assets, such as developed and core technology, in connection with business combinations. We amortize the cost of acquisition-related intangible assets that have finite useful lives on a straight-line basis over the lesser of their estimated useful lives or the agreement terms, typically from two to fourteen years. We evaluate acquisition-related intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset group. This includes assumptions about future prospects for the business that the asset relates to and typically involves computations of the estimated future cash flows to be generated by these businesses. Based on these judgments and assumptions, we determine whether we need to take an impairment charge to reduce the value of the asset stated on our Consolidated Balance Sheets to reflect its estimated fair value. When we consider such assets to be impaired, the amount of impairment we recognize is measured by the amount by which the carrying amount of the asset exceeds its fair value. |
Goodwill | Goodwill In assessing impairment on our goodwill, we first analyze qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The qualitative factors we assess include long-term prospects of our performance, share price trends and market capitalization, and Company specific events. If we conclude it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not need to perform the two-step impairment test. If based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value, a two-step goodwill impairment test will be performed. The first step measures for impairment by applying fair value-based tests at the reporting unit level. The second step (if necessary) measures the amount of impairment by applying fair value-based tests to the individual assets and liabilities within each reporting unit. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating results of that component, and (3) whether the component has dissimilar economic characteristics to other components. As of March 31, 2017, we have only one reportable segment, which represents our only operating segment. During the fiscal years ended March 31, 2017, 2016 and 2015 , we completed our annual goodwill impairment testing in the fourth quarter of each year and determined that it was more likely than not that the fair value of our reporting unit exceeded its carrying amount and, as such, we did not need to perform the two-step impairment test. |
Revenue Recognition | Revenue Recognition, Sales Returns and Allowances, and Bad Debt Reserves We derive revenue principally from sales of interactive software games, and related content and services on game consoles, PCs, mobile phones and tablets. We evaluate revenue recognition based on the criteria set forth in FASB Accounting Standards Codification (“ASC”) 605, Revenue Recognition and ASC 985-605, Software: Revenue Recognition . We classify our revenue as either product revenue or service and other revenue. Product revenue. Our product revenue includes revenue associated with the sale of software games or related product content or updates, whether delivered digitally ( e.g., full-game downloads, extra-content) or via a physical disc ( e . g ., packaged goods), and licensing of game software to third-parties. Product revenue also includes revenue from mobile full game downloads that do not require our hosting support ( e.g. , premium mobile games) in order to utilize the game or related content ( i.e. can be played with or without an Internet connection), and sales of tangible products such as hardware, peripherals, or collectors’ items. Service and other revenue. Our service revenue includes revenue recognized from time-based subscriptions, games, content or updates that requires our hosting support in order to utilize the game or related content ( i.e. , can only be played with an Internet connection). This includes (1) entitlements to content that are accessed through hosting services ( e.g., microtransactions for Internet-based, social network and free-to-download mobile games), (2) massively multi-player online (“MMO”) games (both software game and subscription sales), (3) subscriptions for our Battlefield Premium, EA and Origin Access, and Pogo-branded online game services, and (4) allocated service revenue from sales of software games with a service of online activities ( e.g., online playability). Our other revenue includes advertising and non-software licensing revenue. With respect to the allocated service revenue from sales of software games with a service of online activities (“online services”) mentioned above, our allocation of proceeds between product and service revenue for presentation purposes is based on management’s best estimate of the selling price of the online services with the residual value allocated to product revenue. Our estimate of the selling price of the online services are comprised of several factors including, but not limited to, prior selling prices for the online services, prices charged separately by other third-party vendors for similar service offerings, and a cost-plus-margin approach. We review the estimated selling price of the online services on a regular basis and use this methodology consistently to allocate revenue between product and service for software game sales with online services. We evaluate and recognize revenue when all four of the following criteria are met: • Evidence of an arrangement . Evidence of an agreement with the customer that reflects the terms and conditions to deliver the related products or services must be present. • Fixed or determinable fee . If a portion of the arrangement fee is not fixed or determinable, we recognize revenue as the amount becomes fixed or determinable. • Collection is deemed probable . Collection is deemed probable if we expect the customer to be able to pay amounts under the arrangement as those amounts become due. If we determine that collection is not probable as the amounts become due, we generally conclude that collection becomes probable upon cash collection. • Delivery . For packaged goods, delivery is considered to occur when a product is shipped and the risk of loss and rewards of ownership have transferred to the customer. For digital downloads, delivery is considered to occur when the software is made available to the customer for download. For services and other, delivery is generally considered to occur as the service is delivered, which is determined based on the underlying service obligation. If there is significant uncertainty of acceptance, revenue is recognized once acceptance is reasonably assured. Online-Enabled Games The majority of our software games and related content have online connectivity whereby a consumer may be able to download unspecified content or updates on a when-and-if-available basis (“unspecified updates”) for use with the original game software. In addition, we may also offer a service of online activities (e.g., online playability) without a separate fee. U.S. GAAP requires us to account for the consumer’s right to receive unspecified updates or the service of online activities for no additional fee as a “bundled” sale, or multiple-element arrangement. We have an established historical pattern of providing unspecified updates ( e.g., player roster updates to Madden NFL 17 ) to online-enabled games and related content at no additional charge to the consumer. Because we do not have vendor-specific objective evidence of fair value (“VSOE”) for these unspecified updates, we are required by current U.S. GAAP to recognize as revenue the entire sales price of these online-enabled games and related content over the period we expect to offer the unspecified updates to the consumer (“estimated offering period”). Other Multiple-Element Arrangements In some of our multiple-element arrangements, we sell non-software products with software and/or software-related offerings. These non-software products are generally music soundtracks, peripherals or ancillary collectors’ items, such as figurines and comic books. Revenue for these arrangements is allocated to each separate unit of accounting for each deliverable using the relative selling prices of each deliverable in the arrangement based on the selling price hierarchy described below. If the arrangement contains more than one software deliverable, the arrangement consideration is allocated to the software deliverables as a group and then allocated to each software deliverable. We determine the selling price for a non-software product deliverable based on the following selling price hierarchy: VSOE ( i.e. , the price we charge when the non-software product is sold separately) if available, third-party evidence (“TPE”) of fair value ( i.e. , the price charged by others for similar non-software products) if VSOE is not available, or our best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. Determining the BESP is a subjective process that is based on multiple factors including, but not limited to, recent selling prices and related discounts, market conditions, customer classes, sales channels and other factors. Provided the other three revenue recognition criteria other than delivery have been met, we recognize revenue upon delivery to the customer as we have no further obligations. Principal Agent Considerations We evaluate sales of our interactive software games, extra-content, and services from our subscription offerings via third party storefronts, including digital channel storefronts such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple App Store, and Google Play, in order to determine whether or not we are acting as the primary obligor in the sale to the end consumer, which we consider in determining if revenue should be reported gross or net of fees retained by the storefront. Key indicators that we evaluate in determining gross versus net treatment include but are not limited to the following: • The party responsible for delivery/fulfillment of the product or service to the end consumer • The party responsible for the billing, collection of fees and refunds to the end consumer • The storefront and Terms of Sale that govern the end consumer’s purchase of the product or service • The party that sets the pricing with the end consumer and has credit risk Based on evaluation of the above indicators, we have determined that generally the third party is considered the primary obligor to end consumers for the sale of our interactive software games. We therefore report revenue related to these arrangements net of the fees retained by the storefront. |
Sales Returns And Allowances And Bad Debt Reserves | Sales Returns and Allowances and Bad Debt Reserves We reduce revenue for estimated future returns and price protection which may occur with our distributors and retailers (“channel partners”). Price protection represents our practice to provide our channel partners with a credit allowance to lower their wholesale price on a particular product that they have not resold to end consumers. The amount of the price protection is generally the difference between the old wholesale price and the new reduced wholesale price. In certain countries for our PC and console packaged goods software products, we also have a practice of allowing channel partners to return older software products in the channel in exchange for a credit allowance. As a general practice, we do not give cash refunds. We determine our allowance for doubtful accounts by evaluating the following: customer creditworthiness, current economic trends, historical experience, age of current accounts receivable balances, and changes in financial condition or payment terms of our customers. Significant management judgment is required to estimate our allowance for doubtful accounts in any accounting period. |
Taxes Collected From Customers And Remitted To Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our Consolidated Statements of Operations. |
Concentration Of Credit Risk | Concentration of Credit Risk, Significant Customers, and Platform Partners We extend credit to various digital resellers and channel partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. Although we generally do not require collateral, we perform ongoing credit evaluations of our customers and maintain reserves for potential credit losses. Invoices are aged based on contractual terms with our customers. The provision for doubtful accounts is recorded as a charge to general and administrative expense when a potential loss is identified. Losses are written off against the allowance when the receivable is determined to be uncollectible. At March 31, 2017 , we had three customers who accounted for approximately 27 percent , 22 percent , and 11 percent of our consolidated gross receivables, respectively. At March 31, 2016 , we had two customers who accounted for 26 percent and 24 percent of our consolidated gross receivables, respectively. A majority of our sales are made via digital resellers and channel partners. During the fiscal year ended March 31, 2017 , approximately 64 percent of our net revenue was derived from our top ten customers. Though our products and services are available to consumers through a variety of retailers, digital resellers and directly through us, the concentration of our sales in one, or a few, large customers could lead to a short-term disruption in our sales if one or more digital resellers and channel partners significantly reduced their purchases or ceased to carry our products and services, and could make us more vulnerable to collection risk if one or more of these large customers became unable to pay for our products or declared bankruptcy. Currently, a majority of our revenue is derived through sales of products and services playable on hardware consoles from Sony and Microsoft. For the fiscal years ended March 31, 2017, 2016 and 2015 , our net revenue for products and services on Sony’s PlayStation 3 and 4, and Microsoft’s Xbox 360 and One consoles (combined across all four platforms) was 70 percent , 67 percent , and 66 percent , respectively. These platform partners have significant influence over the products and services that we offer on their platforms. Our agreements with Sony and Microsoft typically give significant control to them over the approval, manufacturing and distribution of our products and services, which could, in certain circumstances, leave us unable to get our products and services approved, manufactured and provided to customers. Short-term investments are placed with high quality financial institutions or in short-duration, investment-grade securities. We limit the amount of credit exposure in any one financial institution or type of investment instrument. |
Royalties And Licenses | Royalties and Licenses 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 generally at the greater of the contractual rate or an effective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. 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. |
Advertising Costs | Advertising Costs We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. Cooperative advertising costs are recognized when incurred and are included in marketing and sales expense if there is a separate identifiable benefit for which we can reasonably estimate the fair value of the benefit identified. Otherwise, they are recognized as a reduction of revenue and are generally accrued when revenue is recognized. We then reimburse the channel partner when qualifying claims are submitted. We are also reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Otherwise, vendor reimbursements are recognized as a reduction of the cost incurred with the same vendor. Vendor reimbursements of advertising costs of $53 million , $51 million , and $43 million reduced marketing and sales expense for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively. For the fiscal years ended March 31, 2017, 2016 and 2015 , advertising expense, net of vendor reimbursements, totaled approximately $281 million , $240 million , and $228 million , respectively. |
Software Development Costs | Software Development Costs Research and development costs, which consist primarily of software development costs, are expensed as incurred. We are required to capitalize software development costs incurred for computer software to be sold, leased or otherwise marketed after technological feasibility of the software is established or for development costs that have alternative future uses. Under our current practice of developing new games, the technological feasibility of the underlying software is not established until substantially all product development and testing is complete, which generally includes the development of a working model. Software development costs that have been capitalized to date have been insignificant. |
Foreign Currency Translation | Foreign Currency Translation Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net foreign currency transaction gains (losses) of $(40) million , $(14) million , and $(62) million for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net foreign currency transaction gains (losses) are partially offset by net gains (losses) on our foreign currency forward contracts of $46 million , $15 million , and $59 million for the fiscal years ended March 31, 2017, 2016 and 2015 , respectively. See Note 4 for additional information on our foreign currency forward contracts. |
Income Taxes | Income Taxes 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. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted 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 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. We adopted ASU 2015-05 in the first quarter of fiscal year 2017. The adoption did not have a material impact on our Consolidated Financial Statements. |
Impact of recently issued accounting standards | Impact of Recently Issued Accounting Standards In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting , related to simplifications of employee share-based payment accounting. This pronouncement eliminates the APIC pool concept and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled. The pronouncement also addresses simplifications related to statement of cash flows classification, accounting for forfeitures, and minimum statutory tax withholding requirements. We will adopt this new standard in the first quarter of fiscal year 2018. Upon adoption of ASU 2016-09, excess tax benefits and tax deficiencies from employee share-based award activity will be reflected in the Consolidated Statements of Income as a component of the provision for income taxes, whereas they previously were recognized in additional paid-in-capital. We will also account for forfeitures as they occur, rather than estimate expected forfeitures. We anticipate the adoption of ASU 2016-09 will result in a cumulative-effect adjustment of $8 million , net of tax, decrease to retained earnings as a result of the change in recognition for forfeitures. The adoption of ASU 2016-09 will also require two changes to our cash flow presentation. Excess tax benefits are required to be presented as operating activities rather than financing activities, and cash payments to tax authorities in connection with shares withheld to meet statutory tax withholding requirements are required to be presented as a financing activity because such payments represent an entity’s cash outflow to reacquire the entity’s shares. We currently classify cash paid to taxing authorities for shares withheld as an operating activity. Upon adoption, the net increase to our reported net cash provided by Operating Activities and corresponding increase to cash used in Financing Activities for the fiscal years ended March 31, 2017, 2016 and 2015 are as follows: Year Ended March 31, (In millions): 2017 2016 2015 Excess tax benefit from stock-based compensation 65 86 22 Cash paid to taxing authorities for shares withheld from employees 130 156 83 Increase to net cash provided by Operating Activities and net cash used in Financing Activities 195 242 105 In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (the “New Revenue Standard”), which will replace existing guidance under U.S. GAAP, including industry-specific requirements, and will provide companies with a single principles-based revenue recognition model for recognizing revenue from contracts with customers. The core principle of the New Revenue Standard is that a company should recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. In addition, the FASB has issued several amendments to the New Revenue Standard, including principal versus agent considerations, clarifications on identification of performance obligations, and accounting for licenses of intellectual property. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of adoption. The New Revenue Standard is effective for us beginning in the first quarter of fiscal year 2019 and permits the use of either the full retrospective or modified retrospective transition methods. We anticipate adopting the New Revenue Standard on April 1, 2018 using the modified retrospective method, which recognizes the cumulative effect of initially applying the New Revenue Standard as an adjustment to retained earnings at the adoption date. The New Revenue Standard will have a significant impact on our Consolidated Financial Statements and related disclosures as it relates to the accounting for substantially all of our transactions with multiple elements or “bundled” arrangements. For example, for sales of online-enabled games as currently reported, we do not have vendor-specific objective evidence of fair value (“VSOE”) for unspecified future updates, and thus, revenue recognized from these sales are recognized ratably over the estimated offering period. However, under the New Revenue Standard, the VSOE requirement for undelivered elements is eliminated, allowing us to essentially “break-apart” our online-enabled games and account for the various promised goods or services identified as separate performance obligations. For example, for the sale of an online-enabled game, we often have multiple distinct performance obligations such as software, updates, and an online service. The software performance obligation represents the initial game delivered digitally or via physical disc. The updates performance obligation may include software patches or updates, maintenance, and/or additional free content to be delivered in the future. And lastly, the online service performance obligation consists of providing the customer with a service of online activities (e.g., online playability). Under current software revenue recognition rules, we recognize as revenue the entire sales price over the estimated offering period. However, under the New Revenue Standard, we will recognize a portion of the sales price as revenue upon delivery of the software performance obligation with the updates and online services portions recognized over the estimated offering period. In addition, the entire portion of sales price allocated to updates and online services will be classified as a service revenue under the New Revenue Standard. Therefore, upon adoption, an increased portion of our sales from online-enabled games will be presented as service revenue than is currently reported today. In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Topic 825-10), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The requirements will be effective for us beginning in the first quarter of fiscal year 2019. We are currently evaluating the impact of this new standard on our Consolidated Financial Statements and related disclosures. In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products . The amendments in the ASU are designed to provide guidance and eliminate diversity in the accounting for derecognition of prepaid stored-value product liabilities. Typically, a prepaid stored-value product liability is to be derecognized when it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. This is when the likelihood of the product holder exercising its remaining rights becomes remote. This estimate shall be updated at the end of each period. The amendments in this ASU are effective for us beginning in the first quarter of fiscal year 2019. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update is intended to reduce the existing diversity in practice in how certain transactions are classified in the statement of cash flows. This update is effective for us beginning in the first quarter of fiscal year 2019. Early adoption is permitted, provided that all of the amendments are adopted in the same period. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Statements of Cash Flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. This update is effective for us beginning in the first quarter of fiscal year 2019. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Statements of Cash Flows. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB issued this standard to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The updated guidance is effective for us beginning in the first quarter of fiscal year 2020. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for us beginning in the first quarter of fiscal year 2021. Early adoption is permitted beginning in the first quarter of fiscal year 2020. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350). The standard simplifies the goodwill impairment test. This update removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This update is effective for us beginning in the first quarter of fiscal year 2021. Early adoption is permitted for any impairment tests performed after January 1, 2017. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. |
Accounting Standard Cash Flow R
Accounting Standard Cash Flow Reclassification (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accounting Standard Cash Flow Reclassification [Abstract] | |
Accounting Standard Cash Flow Reclassification [Table Text Block] | Year Ended March 31, (In millions): 2017 2016 2015 Excess tax benefit from stock-based compensation 65 86 22 Cash paid to taxing authorities for shares withheld from employees 130 156 83 Increase to net cash provided by Operating Activities and net cash used in Financing Activities 195 242 105 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Measured On Recurring Basis | Fair Value Measurements at Reporting Date Using As of March 31, 2016 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 345 $ 345 $ — $ — Cash equivalents Money market funds 143 143 — — Cash equivalents Available-for-sale securities: Corporate bonds 623 — 623 — Short-term investments and cash equivalents U.S. Treasury securities 407 407 — — Short-term investments and cash equivalents U.S. agency securities 170 — 170 — Short-term investments and cash equivalents Commercial paper 81 — 81 — Short-term investments and cash equivalents Foreign government securities 122 — 122 — Short-term investments and cash equivalents Foreign currency derivatives 16 — 16 — Other current assets and other assets Deferred compensation plan assets (a) 8 8 — — Other assets Total assets at fair value $ 1,915 $ 903 $ 1,012 $ — Liabilities Foreign currency derivatives 10 — 10 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 9 9 — — Other liabilities Total liabilities at fair value $ 19 $ 9 $ 10 $ — Fair Value Measurements at Reporting Date Using As of March 31, 2017 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 233 $ 233 $ — $ — Cash equivalents Money market funds 405 405 — — Cash equivalents Available-for-sale securities: Corporate bonds 963 — 963 — Short-term investments and cash equivalents U.S. Treasury securities 460 460 — — Short-term investments and cash equivalents U.S. agency securities 172 — 172 — Short-term investments and cash equivalents Commercial paper 270 — 270 — Short-term investments and cash equivalents Foreign government securities 113 — 113 — Short-term investments Asset-backed securities 135 — 135 — Short-term investments Foreign currency derivatives 19 — 19 — Other current assets and other assets Deferred compensation plan assets (a) 8 8 — — Other assets Total assets at fair value $ 2,778 $ 1,106 $ 1,672 $ — Liabilities Foreign currency derivatives 8 — 8 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 9 9 — — Other liabilities Total liabilities at fair value $ 17 $ 9 $ 8 $ — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Financial Instruments [Abstract] | |
Fair Value Of Short-Term Investments | Short-term investments consisted of the following as of March 31, 2017 and 2016 (in millions): As of March 31, 2017 As of March 31, 2016 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 944 $ — $ (1 ) $ 943 $ 620 $ 1 $ — $ 621 U.S. Treasury securities 414 — (1 ) 413 389 1 — 390 U.S. agency securities 152 — (1 ) 151 167 — — 167 Commercial paper 212 — — 212 50 — — 50 Foreign government securities 113 — — 113 113 — — 113 Asset-backed securities 135 — — 135 — — — — Short-term investments $ 1,970 $ — $ (3 ) $ 1,967 $ 1,339 $ 2 $ — $ 1,341 |
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 March 31, 2017 and 2016 (in millions): As of March 31, 2017 As of March 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 1,237 $ 1,236 $ 571 $ 571 Due 1 year through 5 years 721 719 768 770 Due after 5 years 12 12 — — Short-term investments $ 1,970 $ 1,967 $ 1,339 $ 1,341 |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Derivative Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of March 31, 2017 As of March 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 185 $ — $ 5 $ 148 $ 5 $ 1 Forward contracts to sell $ 840 $ 19 $ 3 $ 685 $ 11 $ 9 |
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 (in millions): As of March 31, 2017 As of March 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 87 $ — $ — $ 108 $ — $ — Forward contracts to sell $ 166 $ — $ — $ 159 $ — $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2017, 2016 and 2015 , was as follows (in millions): Statement of Operations Classification Amount of Gain (Loss) Recognized in the Statement of Operations Year Ended March 31, 2017 2016 2015 Foreign currency forward contracts not designated as hedging instruments Interest and other income (expense), net $ 43 $ 16 $ 58 |
Accumulated other Comprehensi31
Accumulated other Comprehensive Income (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | fiscal years ended March 31, 2017, 2016 and 2015 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, 2014 $ (4 ) $ (10 ) $ 51 $ 37 Other comprehensive income (loss) before reclassifications 1 20 (67 ) (46 ) Amounts reclassified from accumulated other comprehensive income (loss) — 11 — 11 Total other comprehensive income (loss), net of tax 1 31 (67 ) (35 ) Balances as of March 31, 2015 $ (3 ) $ 21 $ (16 ) $ 2 Other comprehensive income (loss) before reclassifications 4 5 (15 ) (6 ) Amounts reclassified from accumulated other comprehensive income (loss) — (12 ) — (12 ) Total other comprehensive income (loss), net of tax 4 (7 ) (15 ) (18 ) Balances as of March 31, 2016 $ 1 $ 14 $ (31 ) $ (16 ) Other comprehensive income (loss) before reclassifications (3 ) 54 (17 ) 34 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (36 ) — (37 ) Total other comprehensive income (loss), net of tax (4 ) 18 (17 ) (3 ) Balances as of March 31, 2017 $ (3 ) $ 32 $ (48 ) $ (19 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the fiscal years ended March 31, 2017, 2016 and 2015 were as follows (in millions): Statement of Operations Classification Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Year Ended March 31, 2017 2016 2015 (Gains) and losses on available-for-sale securities Interest and other income (expense), net (1 ) — — Net of tax (1 ) — — (Gains) losses on cash flow hedges from forward contracts Net revenue (37 ) (23 ) (2 ) Research and development 1 11 13 Net of tax (36 ) (12 ) 11 Total net (gain) loss reclassified, net of tax $ (37 ) $ (12 ) $ 11 |
Goodwill And Acquisition-Rela32
Goodwill And Acquisition-Related Intangibles, Net (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 fiscal year ended March 31, 2017 are as follows (in millions): As of Effects of Foreign Currency Translation As of Goodwill $ 2,078 $ (3 ) $ 2,075 Accumulated impairment (368 ) — (368 ) Total $ 1,710 $ (3 ) $ 1,707 The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2016 are as follows (in millions): As of Effects of Foreign Currency Translation As of Goodwill $ 2,081 $ (3 ) $ 2,078 Accumulated impairment (368 ) — (368 ) Total $ 1,713 $ (3 ) $ 1,710 |
Schedule Of Acquisition-Related Intangibles | Acquisition-related intangibles, consisted of the following (in millions): As of March 31, 2017 As of March 31, 2016 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 412 $ (412 ) $ — $ 412 $ (368 ) $ 44 Trade names and trademarks 106 (98 ) 8 106 (93 ) 13 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — Total $ 608 $ (600 ) $ 8 $ 608 $ (551 ) $ 57 |
Schedule Of Amortization Of Intangible Assets | Amortization of intangibles for the fiscal years ended March 31, 2017, 2016 and 2015 are classified in the Consolidated Statement of Operations as follows (in millions): Year Ended March 31, 2017 2016 2015 Cost of service and other $ 16 $ 33 $ 36 Cost of product 27 14 16 Operating expenses 6 7 14 Total $ 49 $ 54 $ 66 |
Schedule Of Future Amortization Of Acquisition-Related Intangibles | As of March 31, 2017 , future amortization of acquisition-related intangibles that will be recorded in the Consolidated Statement of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2018 6 2019 2 Total $ 8 |
Royalties And Licenses (Tables)
Royalties And Licenses (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Royalties And Licenses [Abstract] | |
Schedule Of Royalty-Related Assets | As of March 31, 2017 2016 Other current assets $ 79 $ 54 Other assets 39 63 Royalty-related assets $ 118 $ 117 |
Schedule Of Royalty-Related Liabilities | As of March 31, 2017 2016 Accrued royalties $ 165 $ 159 Other liabilities 97 118 Royalty-related liabilities $ 262 $ 277 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Property And Equipment, Net Schedule | Property and equipment, net, as of March 31, 2017 and 2016 consisted of (in millions): As of March 31, 2017 2016 Computer equipment and software $ 723 $ 684 Buildings 316 313 Leasehold improvements 126 129 Equipment, furniture and fixtures, and other 82 80 Land 61 61 Construction in progress 7 15 1,315 1,282 Less: accumulated depreciation (881 ) (843 ) Property and equipment, net $ 434 $ 439 |
Accrued And Other Current Liabilities Schedule | Accrued and other current liabilities as of March 31, 2017 and 2016 consisted of (in millions): As of March 31, 2017 2016 Accrued compensation and benefits $ 267 $ 256 Other accrued expenses 210 218 Accrued royalties 165 159 Deferred net revenue (other) 147 77 Accrued and other current liabilities $ 789 $ 710 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Provision For (Benefit From) Income Taxes | The components of our income before provision for (benefit from) income taxes for the fiscal years ended March 31, 2017, 2016 and 2015 are as follows (in millions): Year Ended March 31, 2017 2016 2015 Domestic $ 382 $ 133 $ 232 Foreign 828 744 693 Income before provision for (benefit from) income taxes $ 1,210 $ 877 $ 925 |
Provision For (Benefit From) Income Taxes | Provision for (benefit from) income taxes for the fiscal years ended March 31, 2017, 2016 and 2015 consisted of (in millions): Current Deferred Total Year Ended March 31, 2017 Federal $ 86 $ 96 $ 182 State 3 9 12 Foreign 51 (2 ) 49 $ 140 $ 103 $ 243 Year Ended March 31, 2016 Federal $ 69 $ (376 ) $ (307 ) State 5 (14 ) (9 ) Foreign 36 1 37 $ 110 $ (389 ) $ (279 ) Year Ended March 31, 2015 Federal $ 10 $ 17 $ 27 State — — — Foreign 21 2 23 $ 31 $ 19 $ 50 |
Schedule Of Differences Between Statutory Tax Rate And Effective Tax Rate | The differences between the statutory tax expense rate and our effective tax expense (benefit) rate, expressed as a percentage of income before provision for (benefit from) income taxes, for the fiscal years ended March 31, 2017, 2016 and 2015 were as follows: Year Ended March 31, 2017 2016 2015 Statutory federal tax expense rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 1.0 % 0.5 % 0.1 % Differences between statutory rate and foreign effective tax rate (19.3 )% (22.1 )% (22.3 )% Valuation allowance — % (51.7 )% (9.2 )% Research and development credits (0.7 )% (0.6 )% (1.1 )% Unremitted earnings of foreign subsidiaries 2.2 % 4.9 % — % Non-deductible stock-based compensation 2.3 % 3.1 % 3.5 % Other (0.4 )% (0.9 )% (0.6 )% Effective tax expense (benefit) rate 20.1 % (31.8 )% 5.4 % |
Deferred Tax Assets And Liabilities | The components of net deferred tax assets, as of March 31, 2017 and 2016 consisted of (in millions): As of March 31, 2017 2016 Deferred tax assets: Accruals, reserves and other expenses $ 151 $ 171 Tax credit carryforwards 276 334 Stock-based compensation 37 39 Net operating loss & capital loss carryforwards 25 28 Total 489 572 Valuation allowance (114 ) (114 ) Deferred tax assets, net of valuation allowance 375 458 Deferred tax liabilities: Amortization and depreciation (19 ) (27 ) Unremitted earnings of foreign subsidiaries (70 ) (43 ) Prepaids and other liabilities (1 ) (3 ) Total (90 ) (73 ) Deferred tax assets, net of valuation allowance and deferred tax liabilities $ 285 $ 385 |
Schedule Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Balance as of March 31, 2014 $ 232 Increases in unrecognized tax benefits related to prior year tax positions 9 Decreases in unrecognized tax benefits related to prior year tax positions (14 ) Increases in unrecognized tax benefits related to current year tax positions 50 Decreases in unrecognized tax benefits related to settlements with taxing authorities (6 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (7 ) Changes in unrecognized tax benefits due to foreign currency translation (10 ) Balance as of March 31, 2015 254 Increases in unrecognized tax benefits related to prior year tax positions 33 Decreases in unrecognized tax benefits related to prior year tax positions (4 ) Increases in unrecognized tax benefits related to current year tax positions 63 Decreases in unrecognized tax benefits related to settlements with taxing authorities (10 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (4 ) Changes in unrecognized tax benefits due to foreign currency translation (1 ) Balance as of March 31, 2016 331 Increases in unrecognized tax benefits related to prior year tax positions 3 Decreases in unrecognized tax benefits related to prior year tax positions (3 ) Increases in unrecognized tax benefits related to current year tax positions 64 Decreases in unrecognized tax benefits related to settlements with taxing authorities — Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (3 ) Changes in unrecognized tax benefits due to foreign currency translation (3 ) Balance as of March 31, 2017 $ 389 |
Financing Arrangement (Tables)
Financing Arrangement (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Debt Instruments [Abstract] | |
Carrying Values Of Liability And Equity Components Of Notes | The carrying and fair values of the Convertible Notes are as follows (in millions): As of As of Principal amount of Convertible Notes $ — $ 163 Unamortized debt discount of the liability component — (2 ) Net carrying value of Convertible Notes $ — $ 161 Fair value of Convertible Notes (Level 2) $ — $ 338 |
Schedule of Carrying Values Of Liability and Equity Components of Senior Notes [Table Text Block] | The carrying and fair values of the Senior Notes are as follows (in millions): As of As of Senior Notes: 3.70% Senior Notes due 2021 $ 600 $ 600 4.80% Senior Notes due 2026 400 400 Total principal amount $ 1,000 $ 1,000 Unaccreted discount (2 ) (2 ) Unamortized debt issuance costs (8 ) (9 ) Net carrying value of Senior Notes $ 990 $ 989 Fair value of Senior Notes (Level 2) $ 1,054 $ 1,039 |
Schedule Of Interest Expense Related To Notes | The following table summarizes our interest expense recognized for fiscal years 2017, 2016, and 2015 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31, 2017 2016 2015 Amortization of debt discount (2 ) (17 ) (22 ) Amortization of debt issuance costs (2 ) (3 ) (3 ) Coupon interest expense (42 ) (7 ) (5 ) Other interest expense (1 ) (1 ) (1 ) Total interest expense $ (47 ) $ (28 ) $ (31 ) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Contractual Obligations | The following table summarizes our minimum contractual obligations as of March 31, 2017 (in millions): Fiscal Year Ending March 31, Total 2018 2019 2020 2021 2022 Thereafter Unrecognized commitments Developer/licensor commitments $ 1,140 $ 208 $ 271 $ 226 $ 175 $ 179 $ 81 Marketing commitments 445 78 83 116 72 72 24 Operating leases 212 35 34 31 29 22 61 Senior Notes interest 258 38 41 41 41 19 78 Other purchase obligations 95 35 19 13 7 4 17 Total unrecognized commitments 2,150 394 448 427 324 296 261 Recognized commitments Senior Notes principal and interest 1,003 3 — — 600 — 400 Licensing and lease obligations 126 23 24 25 26 28 — Total recognized commitments 1,129 26 24 25 626 28 400 Total Commitments $ 3,279 $ 420 $ 472 $ 452 $ 950 $ 324 $ 661 |
Stock-Based Compensation And Em
Stock-Based Compensation And Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Assumptions Used In The Black-Scholes Valuation Model | Stock Option Grants ESPP Purchase Rights Year Ended March 31, Year Ended March 31, 2015 2017 2016 2015 Risk-free interest rate 1.1 - 1.9% 0.5 - 0.8% 0.3 - 0.6% 0.04 - 0.2% Expected volatility 36 - 40% 25 - 32% 32 - 36% 30 - 35% Weighted-average volatility 38 % 27 % 33 % 34 % Expected term 4.5 years 6 - 12 months 6 - 12 months 6 - 12 months Expected dividends None None None None |
Schedule Of Assumptions Used In Monte-Carlo Simulation Model | The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Year Ended March 31, 2017 2016 2015 Risk-free interest rate 0.8 % 1.0 % 0.9 % Expected volatility 16 - 57% 14 - 53% 16 - 79% Weighted-average volatility 29 % 26 % 30 % Expected dividends None None None |
Schedule Of Stock-Based Compensation Expense By Statement Of Operations | The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 2017 2016 2015 Cost of revenue $ 3 $ 2 $ 2 Research and development 109 103 82 Marketing and sales 31 24 21 General and administrative 53 49 39 Stock-based compensation expense $ 196 $ 178 $ 144 |
Summary Of Outstanding And Exercisable Stock Options | The following table summarizes outstanding and exercisable stock options as of March 31, 2017 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Shares (in thousands) Weighted- Average Remaining Contractual Term (in years) Weighted- Average Exercise Prices Potential Dilution Number of Shares (in thousands) Weighted- Average Exercise Prices Potential Dilution $11.53 - $23.61 178 2.48 $ 19.40 0.1 % 178 $ 19.40 0.1 % 26.25 - 26.25 950 6.58 26.25 0.3 % 770 26.25 0.2 % 33.60 - 35.70 597 7.22 35.45 0.2 % 372 35.30 0.1 % 36.00 - 58.14 652 2.44 45.59 0.2 % 583 46.59 0.2 % $11.53 - $58.14 2,377 5.30 $ 33.35 0.8 % 1,903 $ 33.61 0.6 % |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | The following table summarizes our ESPP activity for fiscal years ended March 31, 2017, 2016 and 2015 : Shares Issued Exercise Prices for Purchase Rights Weighted-Average Fair Values of Purchase Rights Fiscal Year 2015 1.4 $22.64 - $32.16 $ 8.26 Fiscal Year 2016 0.9 $32.16 - $54.78 $ 12.97 Fiscal Year 2017 0.7 $54.60 - $67.56 $ 17.93 |
Shares Repurchased and Retired | The following table summarizes total shares repurchased during fiscal years 2017, 2016, and 2015 : May 2014 Program May 2015 Program February 2016 Program Total (In millions) Shares Amount Shares Amount Shares Amount Shares Amount Fiscal Year 2015 8.2 $ 337 — $ — — $ — 8.2 $ 337 Fiscal Year 2016 1.0 $ 57 6.9 $ 461 7.8 $ 500 15.7 $ 1,018 Fiscal Year 2017 — $ — 6.5 $ 508 — $ — 6.5 $ 508 |
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 | The following table summarizes our stock option activity for the fiscal year ended March 31, 2017 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2016 3,278 $ 35.09 Granted 6 74.93 Exercised (876 ) 40.04 Forfeited, cancelled or expired (31 ) 35.75 Outstanding as of March 31, 2017 2,377 $ 33.35 5.30 $ 134 Vested and expected to vest 2,358 $ 33.38 5.29 $ 132 Exercisable as of March 31, 2017 1,903 $ 33.61 4.88 $ 106 |
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 | Each restricted stock unit granted reduces the number of shares available for grant by 1.43 shares under our Equity Plan. The following table summarizes our restricted stock units activity, excluding market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2017 : Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Values Balance as of March 31, 2016 7,157 $ 44.04 Granted 2,734 76.60 Vested (4,126 ) 37.28 Forfeited or cancelled (612 ) 58.34 Balance as of March 31, 2017 5,153 $ 65.03 |
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 | The following table summarizes our market-based restricted stock unit activity for the year ended March 31, 2017 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Balance as of March 31, 2016 636 $ 64.49 Granted 353 98.04 Vested (558 ) 50.08 Vested above target 238 44.99 Forfeited or cancelled (28 ) 84.94 Balance as of March 31, 2017 641 $ 87.37 |
Interest And Other Income (Ex39
Interest And Other Income (Expense), Net (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Interest and Other Income [Abstract] | |
Schedule Of Interest And Other Income (Expense), Net | Interest and other income (expense), net, for the fiscal years ended March 31, 2017, 2016 and 2015 consisted of (in millions): Year Ended March 31, 2017 2016 2015 Loss on conversion of Convertible Notes $ — $ (10 ) $ — Interest expense (47 ) (28 ) (31 ) Interest income 25 15 10 Net gain (loss) on foreign currency transactions (40 ) (14 ) (62 ) Net gain (loss) on foreign currency forward contracts 46 15 59 Other income, net 2 1 1 Interest and other income (expense), net $ (14 ) $ (21 ) $ (23 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic Earnings And Diluted Earnings Per Share | Year Ended March 31, (In millions, except per share amounts) 2017 2016 2015 Net income $ 967 $ 1,156 $ 875 Shares used to compute earnings per share: Weighted-average common stock outstanding — basic 303 310 311 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 4 6 9 Dilutive potential common shares related to the Convertible Notes 1 6 4 Dilutive potential common shares related to the Warrants 6 8 1 Weighted-average common stock outstanding — diluted 314 330 325 Earnings per share: Basic $ 3.19 $ 3.73 $ 2.81 Diluted $ 3.08 $ 3.50 $ 2.69 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Net Revenue By Revenue Composition | Information about our total net revenue by composition and by platform for the fiscal years ended March 31, 2017, 2016 and 2015 is presented below (in millions): Year Ended March 31, 2017 2016 2015 Digital $ 2,874 $ 2,409 $ 2,199 Packaged goods and other 1,971 1,987 2,316 Net revenue $ 4,845 $ 4,396 $ 4,515 |
Schedule of Net Revenue by Platform [Table Text Block] | Year Ended March 31, 2017 2016 2015 Platform net revenue Xbox One, PlayStation 4 $ 3,056 $ 2,183 $ 1,505 Xbox 360, PlayStation 3 331 752 1,485 Other consoles 3 7 21 Total consoles 3,390 2,942 3,011 PC / Browser 773 814 878 Mobile 627 548 504 Other 55 92 122 Net revenue $ 4,845 $ 4,396 $ 4,515 |
Net Revenue By Geographic Area | Information about our operations in North America and internationally as of and for the fiscal years ended March 31, 2017, 2016 and 2015 is presented below (in millions): Year Ended March 31, 2017 2016 2015 Net revenue from unaffiliated customers North America $ 2,119 $ 1,907 $ 1,956 International 2,726 2,489 2,559 Total $ 4,845 $ 4,396 $ 4,515 |
Long-Lived Assets By Geographic Area | As of March 31, 2017 2016 Long-lived assets North America $ 369 $ 368 International 65 71 Total $ 434 $ 439 |
Quarterly Financial And Marke42
Quarterly Financial And Market Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Summary Of Quarterly Financial And Market Information | Quarter Ended Year Ended (In millions, except per share data) June 30 September 30 December 31 March 31 Fiscal 2017 Consolidated Net revenue $ 1,271 $ 898 $ 1,149 $ 1,527 $ 4,845 Gross profit 1,092 497 633 1,325 3,547 Operating income (loss) 560 (49 ) (4 ) 717 1,224 Net income (loss) 440 (38 ) (1 ) 566 967 Common Stock Earnings (loss) per share — Basic $ 1.46 $ (0.13 ) $ ( 0.00) $ 1.84 $ 3.19 Earnings (loss) per share — Diluted $ 1.40 $ (0.13 ) $ ( 0.00) $ 1.81 $ 3.08 Common stock price per share High $ 77.25 $ 85.40 $ 85.56 $ 91.51 $ 91.51 Low $ 61.85 $ 75.38 $ 75.58 $ 78.64 $ 61.85 Fiscal 2016 Consolidated Net revenue $ 1,203 $ 815 $ 1,070 $ 1,308 $ 4,396 Gross profit 1,030 406 524 1,082 3,042 Operating income (loss) 512 (119 ) (31 ) 536 898 Net income (loss) 442 (140 ) (45 ) 899 (a) 1,156 Common Stock Earnings (loss) per share — Basic $ 1.42 $ (0.45 ) $ (0.14 ) $ 2.93 $ 3.73 Earnings (loss) per share — Diluted $ 1.32 $ (0.45 ) $ (0.14 ) $ 2.79 $ 3.50 Common stock price per share High $ 68.00 $ 75.16 $ 76.77 $ 70.83 $ 76.77 Low $ 56.03 $ 63.43 $ 65.04 $ 55.50 $ 55.50 (a) Net income includes an income tax benefit recorded in the fourth quarter of fiscal year 2016 for the reversal of a significant portion of our deferred tax valuation allowance. |
Description Of Business And S43
Description Of Business And Summary Of Significant Accounting Policies (Fiscal Periods) (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Current and Prior Years Fiscal Period (in weeks) | 52 | 53 | 52 |
Minimum [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Fiscal Year (in weeks) | 52 | ||
Maximum [Member] | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Fiscal Year (in weeks) | 53 |
Description Of Business And S44
Description Of Business And Summary Of Significant Accounting Policies (Property Plant and Equipment and Internal Use Software Policy) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Capitalized internal-use software | $ 41 | $ 55 |
Buildings | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Buildings | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Computer equipment and software | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer equipment and software | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 6 years | |
Equipment, Furniture and Fixtures, and Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment, Furniture and Fixtures, and Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized Internal-use Software, Estimated Useful Life | 3 years |
Description Of Business And S45
Description Of Business And Summary Of Significant Accounting Policies (Acquisition-Related Intangibles and Other Long-Lived Assets) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 14 years |
Description Of Business And S46
Description Of Business And Summary Of Significant Accounting Policies (Concentration of Credit Risk, Significant Customers and Channel Partners) (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounts Receivable [Member] | Customer Concentration Risk - Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 27.00% | 26.00% | |
Accounts Receivable [Member] | Customer Concentration Risk - Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 22.00% | 24.00% | |
Accounts Receivable [Member] | Customer Concentration Risk - Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 11.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 64.00% | ||
Product Concentration Risk [Member] | Sales Revenue, Product Line [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 70.00% | 67.00% | 66.00% |
Description Of Business And S47
Description Of Business And Summary Of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Expenses [Abstract] | |||
Vendor reimbursements of advertising costs | $ 53 | $ 51 | $ 43 |
Advertising expense, net of vendor reimbursements | $ 281 | $ 240 | $ 228 |
Description Of Business And S48
Description Of Business And Summary Of Significant Accounting Policies (Foreign Currency Translation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative [Line Items] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (40) | $ (14) | $ (62) |
Net gain (loss) on foreign currency forward contracts | $ 46 | $ 15 | $ 59 |
Description Of Business And S49
Description Of Business And Summary Of Significant Accounting Policies Accounting Standard Cash Flow Reclassification (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefit from stock-based compensation | $ 65 | $ 86 | $ 22 |
Increase to net cash provided by Operating Activities and net cash used in Financing Activities | 195 | 242 | 105 |
Increase to net cash provided by Operating Activities [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess tax benefit from stock-based compensation | 65 | 86 | 22 |
Increase to net cash provided by Operating Activities [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash Paid for Withholding Taxes | $ 130 | $ 156 | $ 83 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | $ 2,778 | $ 1,915 |
Total liabilities at fair value | 17 | 19 |
Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,106 | 903 |
Total liabilities at fair value | 9 | 9 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 1,672 | 1,012 |
Total liabilities at fair value | 8 | 10 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Government Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Available-for-sale of securities | 113 | |
Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value | 135 | |
Short-Term Investments And Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Available-for-sale of securities | 460 | 407 |
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Available-for-sale of securities | 963 | 623 |
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Agencies Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Available-for-sale of securities | 172 | 170 |
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Available-for-sale of securities | 270 | 81 |
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Government Debt Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Available-for-sale of securities | 122 | |
Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Bank Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Cash equivalents | 233 | 345 |
Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Cash equivalents | 405 | 143 |
Other Current Assets and Other Assets [Domain] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Derivatives [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Foreign currency derivatives, assets | 19 | 16 |
Other Assets [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Deferred compensation plan assets and liabilities | 8 | 8 |
Accrued and Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Derivatives [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Foreign currency derivatives, liabilities | 8 | 10 |
Other Liabilities [Members] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred Compensation Plan Liabilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value, Deferred compensation plan assets and liabilities | $ 9 | $ 9 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Financial Instruments [Line Items] | ||||
Cash and cash equivalents | $ 2,565 | $ 2,493 | $ 2,068 | $ 1,782 |
(Fair Value Of Short-Term Inves
(Fair Value Of Short-Term Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financial Instruments [Line Items] | ||
Fair Value | $ 1,967 | $ 1,341 |
Short-Term Investments [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 1,970 | 1,339 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (3) | 0 |
Fair Value | 1,967 | 1,341 |
Short-Term Investments [Member] | Corporate Bonds [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 944 | 620 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 943 | 621 |
Short-Term Investments [Member] | U.S. Treasury Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 414 | 389 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 413 | 390 |
Short-Term Investments [Member] | U.S. Agency Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 152 | 167 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 151 | 167 |
Short-Term Investments [Member] | Commercial Paper [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 212 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 212 | 50 |
Short-Term Investments [Member] | Foreign Government Debt Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 113 | 113 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 113 | 113 |
Short-Term Investments [Member] | Asset-backed Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 135 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 135 | $ 0 |
(Fair Value Of Short-Term Inv53
(Fair Value Of Short-Term Investments By Stated Maturity Date Schedule) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Financial Instruments [Line Items] | ||
Short-term investments, Fair Value | $ 1,967 | $ 1,341 |
Short-Term Investments [Member] | ||
Financial Instruments [Line Items] | ||
Short-term investments, Amortized Cost | 1,970 | 1,339 |
Short-term investments, Fair Value | 1,967 | 1,341 |
Due in 1 year or less, Amortized Cost | 1,237 | 571 |
Due in 1 year or less, Fair Value | 1,236 | 571 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 721 | 768 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 719 | 770 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 12 | 0 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | $ 12 | $ 0 |
Derivative Financial Instrume54
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 36 | $ 12 | $ (11) |
Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Foreign Currency Forward And Option Contracts Maximum Maturity Period | 18 months | ||
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Foreign Currency Forward And Option Contracts Maximum Maturity Period | 3 months |
Derivative Financial Instrume55
Derivative Financial Instruments Gross Notional Amounts and Fair Values for Currency Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | $ 0 | $ 5 |
Fair value of foreign currency contracts outstanding, Liabilities | 5 | 1 |
Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | 19 | 11 |
Fair value of foreign currency contracts outstanding, Liabilities | 3 | 9 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 185 | 148 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 840 | 685 |
United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 87 | 108 |
United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 166 | 159 |
Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Current | 0 | 0 |
Derivative Liability, Current | 0 | 0 |
Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Current | 0 | 0 |
Derivative Liability, Current | $ 0 | $ 0 |
Location of Gain (Loss) Recogni
Location of Gain (Loss) Recognized in Income on Derivative, Non-Designated Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Interest And Other Income (Expense), Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 43 | $ 16 | $ 58 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | $ (16) | $ 2 | $ 37 |
Other comprehensive income (loss) before reclassifications | 34 | (6) | (46) |
Amounts reclassified from accumulated other comprehensive income (loss) | (37) | (12) | 11 |
Net current-period other comprehensive income (loss) | (3) | (18) | (35) |
Ending balance | (19) | (16) | 2 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 1 | (3) | (4) |
Other comprehensive income (loss) before reclassifications | (3) | 4 | 1 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1) | 0 | 0 |
Net current-period other comprehensive income (loss) | (4) | 4 | 1 |
Ending balance | (3) | 1 | (3) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | 14 | 21 | (10) |
Other comprehensive income (loss) before reclassifications | 54 | 5 | 20 |
Amounts reclassified from accumulated other comprehensive income (loss) | (36) | (12) | 11 |
Net current-period other comprehensive income (loss) | 18 | (7) | 31 |
Ending balance | 32 | 14 | 21 |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning Balance | (31) | (16) | 51 |
Other comprehensive income (loss) before reclassifications | (17) | (15) | (67) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (17) | (15) | (67) |
Ending balance | $ (48) | $ (31) | $ (16) |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income Effects on net income of amounts reclassified from accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | $ (37) | $ (12) | $ 11 |
Unrealized Gains (Losses) on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (1) | 0 | 0 |
Unrealized Gains (Losses) on Available-for-Sale Securities | Interest Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (1) | 0 | 0 |
Unrealized Gains (Losses) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (36) | (12) | 11 |
Unrealized Gains (Losses) on Derivative Instruments | Sales Revenue, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (37) | (23) | (2) |
Unrealized Gains (Losses) on Derivative Instruments | Research and Development | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | $ 1 | $ 11 | $ 13 |
Goodwill And Acquisition-Rela59
Goodwill And Acquisition-Related Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | |
Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 1 year 5 months | 1 year 7 months |
Fair Value, Inputs, Level 3 [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of Intangible Assets, Finite-lived | $ 15 |
Goodwill And Acquisition-Rela60
Goodwill And Acquisition-Related Intangibles (Schedule Of Changes In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning balance | $ 2,078 | $ 2,081 |
Accumulated impairment, beginning balance | (368) | (368) |
Goodwill, Net, Beginning balance | 1,710 | 1,713 |
Effects of foreign currency translation | (3) | (3) |
Goodwill, Gross, Ending balance | 2,075 | 2,078 |
Accumulated impairment, ending balance | (368) | (368) |
Goodwill, Net, Ending balance | $ 1,707 | $ 1,710 |
Goodwill And Acquisition-Rela61
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 608 | $ 608 |
Accumulated amortization | (600) | (551) |
Acquisition-related intangibles, net | 8 | 57 |
Developed And Core Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 412 | 412 |
Accumulated amortization | (412) | (368) |
Acquisition-related intangibles, net | 0 | 44 |
Trade Names And Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 106 | 106 |
Accumulated amortization | (98) | (93) |
Acquisition-related intangibles, net | 8 | 13 |
Registered User Base And Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5 | 5 |
Accumulated amortization | (5) | (5) |
Acquisition-related intangibles, net | 0 | 0 |
Carrier Contracts And Related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 85 | 85 |
Accumulated amortization | (85) | (85) |
Acquisition-related intangibles, net | $ 0 | $ 0 |
Goodwill And Acquisition-Rela62
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 6 | $ 7 | $ 14 |
Cost of product | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 27 | 14 | 16 |
Cost of service and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 16 | 33 | 36 |
Operating expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 6 | 7 | 14 |
Total amortization | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 49 | $ 54 | $ 66 |
Goodwill And Acquisition-Rela63
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Future Amortization Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 6 | |
2,019 | 2 | |
Total | $ 8 | $ 57 |
Royalties And Licenses (Narrati
Royalties And Licenses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2015 | |
Royalties And Licenses [Line Items] | ||
Asset Impairment Charges | $ 23 | |
Expected accretion expense through March 2022 | 15 | |
Business Exit Costs | 19 | $ 122 |
Royalty-Based Asset Impairment Charge and Loss On Previously Minimum Unrecognized Royalty-Based Commitment | 42 | |
Developer And Licensor - Royalty Bearing [Member] | ||
Royalties And Licenses [Line Items] | ||
Unrecorded unconditional purchase obligation | 1,140 | |
Research and Development Expense | ||
Royalties And Licenses [Line Items] | ||
Asset Impairment Charges | 32 | |
Cost of service revenue [Member] | ||
Royalties And Licenses [Line Items] | ||
Business Exit Costs | $ 10 |
(Schedule Of Royalty-Related As
(Schedule Of Royalty-Related Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Royalties And Licenses [Line Items] | ||
Royalty-related assets | $ 118 | $ 117 |
Other Current Assets [Member] | ||
Royalties And Licenses [Line Items] | ||
Royalty-related assets | 79 | 54 |
Other Assets [Member] | ||
Royalties And Licenses [Line Items] | ||
Royalty-related assets | $ 39 | $ 63 |
(Schedule Of Royalty-Related Li
(Schedule Of Royalty-Related Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Royalty-Related Liabilities [Line Items] | ||
Royalty-related liabilities | $ 262 | $ 277 |
Accrued royalties | ||
Royalty-Related Liabilities [Line Items] | ||
Royalty-related liabilities | 165 | 159 |
Other liabilities | ||
Royalty-Related Liabilities [Line Items] | ||
Royalty-related liabilities | $ 97 | $ 118 |
Balance Sheet Details (Narrativ
Balance Sheet Details (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |||
Deferred net revenue (online-enabled games) | $ 1,539 | $ 1,458 | |
Depreciation expense | $ 115 | $ 119 | $ 126 |
Balance Sheet Details (Property
Balance Sheet Details (Property And Equipment, Net Schedule) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,315 | $ 1,282 |
Less accumulated depreciation | (881) | (843) |
Property and equipment, net | 434 | 439 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 723 | 684 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 316 | 313 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 126 | 129 |
Equipment, furniture and fixtures, and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 82 | 80 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 61 | 61 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7 | $ 15 |
Balance Sheet Details (Accrued
Balance Sheet Details (Accrued And Other Current Liabilities Schedule) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and benefits | $ 267 | $ 256 |
Other accrued expenses | 210 | 218 |
Accrued royalties | 165 | 159 |
Deferred net revenue (other) | 147 | 77 |
Accrued and other current liabilities | $ 789 | $ 710 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Line Items] | ||||
Stock Repurchased and Retired During Period, Value | $ 508 | $ 1,018 | $ 337 | |
Tax Benefits Allocated Directly to Contributed Capital | 65 | 83 | 22 | |
Gross unrecognized tax benefits | 389 | 331 | $ 254 | $ 232 |
Amount of unrecognized tax benefits that would affect the effective tax rate | 362 | |||
The total amount of unrecognized tax benefits that, if recognized, would result in adjustments to deferred tax assets with corresponding | 27 | |||
Combined amount of accrued interest and penalties related to uncertain tax positions | 14 | 15 | ||
Amount of unrecognized tax benefits for which it is reasonably possible that there will be a reduction within the next 12 months | 50 | |||
Unremitted earnings of foreign subsidiaries | 70 | 43 | ||
Deferred Tax Assets, Valuation Allowance | 114 | $ 114 | ||
Internal Revenue Service (IRS) [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax credit carry forwards | 362 | |||
Foreign Country [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | 1,845 | |||
Tax credit carry forwards | 7 | |||
State [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating Loss Carryforwards | 871 | |||
Net operating loss attributable to various acquired companies | 99 | |||
Tax credit carry forwards | $ 96 |
Income Taxes (Components Of Los
Income Taxes (Components Of Loss Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 382 | $ 133 | $ 232 |
Foreign | 828 | 744 | 693 |
Income before provision for (benefit from) income taxes | $ 1,210 | $ 877 | $ 925 |
Income Taxes (Provision For (Be
Income Taxes (Provision For (Benefit From) Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ 86 | $ 69 | $ 10 |
State, Current | 3 | 5 | 0 |
Foreign, Current | 51 | 36 | 21 |
Total, Current | 140 | 110 | 31 |
Federal, Deferred | 96 | (376) | 17 |
State, Deferred | 9 | (14) | 0 |
Foreign, Deferred | (2) | 1 | 2 |
Total, Deferred | 103 | (389) | 19 |
Total, Federal | 182 | (307) | 27 |
Total, State | 12 | (9) | 0 |
Total, Foreign | 49 | 37 | 23 |
Total provision for (benefit from) income taxes | $ 243 | $ (279) | $ 50 |
Income Taxes (Schedule Of Diffe
Income Taxes (Schedule Of Differences Between Statutory Tax Rate And Effective Tax Rate) (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Expense Reconciliation [Line Items] | |||
Statutory federal tax expense (benefit) rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 1.00% | 0.50% | 0.10% |
Differences between statutory rate and foreign effective tax rate | (19.30%) | (22.10%) | (22.30%) |
Valuation allowance | 0.00% | (51.70%) | (9.20%) |
Research and development credits | (0.70%) | (0.60%) | (1.10%) |
Unremitted earnings of foreign subsidiaries | 2.20% | 4.90% | |
Non-deductible stock-based compensation | 2.30% | 3.10% | 3.50% |
Other | (0.40%) | (0.90%) | (0.60%) |
Effective tax expense (benefit) rate | 20.10% | (31.80%) | 5.40% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Accruals, reserves and other expenses | $ 151 | $ 171 |
Tax credit carryforwards | 276 | 334 |
Stock-based compensation | 37 | 39 |
Net operating loss & capital loss carryforwards | 25 | 28 |
Total | 489 | 572 |
Valuation allowance | (114) | (114) |
Deferred tax assets, net of valuation allowance | 375 | 458 |
Amortization and Depreciation | (19) | (27) |
Unremitted earnings of foreign subsidiaries | 70 | 43 |
Prepaids and other liabilities | (1) | (3) |
Total | (90) | (73) |
Deferred tax assets, net of valuation allowance and deferred tax liabilities | $ 285 | $ 385 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits, beginning balance | $ 331 | $ 254 | $ 232 |
Increases in unrecognized tax benefits related to prior year tax positions | 3 | 33 | 9 |
Decreases in unrecognized tax benefits related to prior year tax positions | (3) | (4) | (14) |
Increases in unrecognized tax benefits related to current year tax positions | 64 | 63 | 50 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (10) | (6) |
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (3) | (4) | (7) |
Changes in unrecognized tax benefits due to foreign currency translation | (3) | (1) | (10) |
Unrecognized tax benefits, ending balance | $ 389 | $ 331 | $ 254 |
Financing Arrangement (0.75% Co
Financing Arrangement (0.75% Convertible senior notes due 2016) (Details) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2011 | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Jul. 14, 2011USD ($)$ / shares | |
Financing Arrangement [Line Items] | |||||
Shares Received Under Convertible Note Hedge | shares | 2,900,000 | ||||
Repayments of 0.75% Convertible Senior Notes due 2016 | $ 163,000,000 | $ 470,000,000 | $ 0 | ||
Loss on Conversion of Convertible Notes | 0 | $ (10,000,000) | $ 0 | ||
Convertible Debt | |||||
Financing Arrangement [Line Items] | |||||
0.75% Convertible Senior Notes due 2016, net, Principal | $ 633,000,000 | ||||
Contractual interest rate of 0.75% Convertible Senior Notes due 2016 | 0.75% | ||||
0.75% Convertible Senior Notes due 2016, Frequency of Periodic Payment | semiannually | ||||
0.75% Convertible Senior Notes due 2016, Issuance Date | Jul. 14, 2011 | ||||
Conversion rate of 0.75% Convertible Senior Notes due 2016 | 31.5075 | ||||
0.75% Convertible Senior Notes due 2016, Face Amount | $ 1,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 31.74 | ||||
Repayments of 0.75% Convertible Senior Notes due 2016 | $ 163,000,000 | ||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 2,900,000 | ||||
Debt Conversion, Converted Instrument, Amount | $ 222,000,000 | ||||
Loss on Conversion of Convertible Notes | $ (300,000) |
Financing Arrangement (Carrying
Financing Arrangement (Carrying Values Of Liability And Equity Components Of Notes) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Financing Arrangement [Line Items] | ||
0.75% Convertible senior notes due 2016, net (short-term) | $ 0 | $ 161 |
Convertible Debt | ||
Financing Arrangement [Line Items] | ||
Principal Amount of Convertible Notes | 0 | 163 |
Unamortized debt discount of the liability component | 0 | (2) |
0.75% Convertible senior notes due 2016, net (short-term) | 0 | 161 |
Debt Instrument, Fair Value Disclosure | $ 0 | $ 338 |
Financing Arrangement (Converti
Financing Arrangement (Convertible Note Hedge and Warrants Issuance) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jul. 14, 2011 | |
Financing Arrangement [Line Items] | |||
Investment Warrants Expiration Date Range End | Jan. 12, 2017 | ||
Exercise of convertible note hedge | 2,900 | ||
Convertible Note Hedge - Underlying [Member] | |||
Financing Arrangement [Line Items] | |||
Shares covered by warrants issuance | 19,900 | ||
Warrants - Underlying [Member] | |||
Financing Arrangement [Line Items] | |||
Shares covered by warrants issuance | 19,900 | ||
Warrant [Member] | |||
Financing Arrangement [Line Items] | |||
Strike price of warrants | $ 41.14 | ||
Convertible Debt | |||
Financing Arrangement [Line Items] | |||
Debt Instrument, Convertible, Conversion Price | $ 31.74 | ||
Common Stock | |||
Financing Arrangement [Line Items] | |||
Settlement of warrants | 9,645 | ||
Exercise of convertible note hedge | 2,917 | 7,823 |
Financing Arrangement (Senior N
Financing Arrangement (Senior Notes) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Feb. 24, 2016 | |
Financing Arrangement [Line Items] | |||||
Senior notes, net | $ 990 | $ 989 | |||
Proceeds from Issuance of Senior Long-term Debt | $ 989 | $ 0 | 989 | $ 0 | |
2021 Notes | |||||
Financing Arrangement [Line Items] | |||||
Effective interest rate | 3.94% | ||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 3 years 11 months | ||||
Long-term Debt | $ 600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||||
Debt Instrument, Maturity Date | Mar. 1, 2021 | ||||
2026 Notes | |||||
Financing Arrangement [Line Items] | |||||
Effective interest rate | 4.97% | ||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 8 years 11 months | ||||
Long-term Debt | $ 400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | ||||
Debt Instrument, Maturity Date | Mar. 1, 2026 | ||||
Senior Notes | |||||
Financing Arrangement [Line Items] | |||||
Debt Instrument, Issuance Date | Feb. 24, 2016 | ||||
Long-term Debt | $ 1,000 | ||||
Unaccreted discount | $ (2) | (2) | (2) | ||
Debt Issuance Costs, Net | (8) | (9) | $ (9) | ||
Debt Instrument, Fair Value Disclosure | $ 1,054 | $ 1,039 | |||
Senior Notes, Frequency of Periodic Payment | semiannually | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Change of control repurchase event [Member] | |||||
Financing Arrangement [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.00% |
Financing Arrangement (Line of
Financing Arrangement (Line of Credit Facility) (Details) - Revolving Credit Facility [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Initiation Date | Mar. 19, 2015 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Line of Credit Facility, Expiration Date | Mar. 19, 2020 |
Option To Request Additional Commitments On Credit Facility | $ 250 |
Debt Instrument, Fee Amount | $ 2 |
LineofCreditFacilityTerm1 | 5 years |
Financing Arrangement (Schedule
Financing Arrangement (Schedule Of Interest Expense Related To Notes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Financing Arrangement [Line Items] | |||
Amortization of debt discount | $ (2) | $ (17) | $ (22) |
Amortization of debt issuance costs | (2) | (3) | (3) |
Coupon interest expense | (42) | (7) | (5) |
Interest Expense, Other | (1) | (1) | (1) |
Total interest expense | $ (47) | $ (28) | $ (31) |
Commitments And Contingencies82
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Amount of potential cash payments that could result from unrecognized tax benefits | $ 104 | ||
Operating Leases, Rent Expense | 91 | $ 89 | $ 97 |
Maximum [Member] | Unrecorded Unconditional Purchase Obligations Payable in Common Stock Per Year [Member] | |||
Loss Contingencies [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | 10 | ||
Maximum [Member] | Unrecorded Unconditional Purchase Obligation Payable in Common Stock [Member] | |||
Loss Contingencies [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | $ 32 |
Commitments And Contingencies83
Commitments And Contingencies (Minimum Contractual Obligations) (Details) $ in Millions | Mar. 31, 2017USD ($) |
Long Term Purchase Commitments | |
TotalUnconditionalPurchaseObligationBalanceSheetAmount | $ 3,279 |
Total Unconditional Purchase Obligation Balance Sheet Amount One Year After Fiscal Year End | 420 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThreeYearsAfterFiscalYearEnd | 472 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountFourYearsAfterFiscalYearEnd | 452 |
Total Unconditional Purchase Obligation Balance Sheet Amount Five Years After Fiscal Year End | 950 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 324 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 661 |
Developer And Licensor - Royalty and Non-Royalty Bearing [Member] | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 1,140 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 208 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 271 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 226 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 175 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 179 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 81 |
Marketing | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 445 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 78 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 83 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 116 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 72 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 72 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 24 |
Operating leases | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 212 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 35 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 34 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 31 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 29 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 22 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 61 |
Senior Notes Interest | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 258 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 38 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 41 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 41 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 41 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 78 |
Other Unrecorded Purchase Obligations [Member] | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 95 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 35 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 13 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 7 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 4 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 17 |
Total Unrecognized Commitments | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 2,150 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 394 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 448 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 427 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 324 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 296 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 261 |
Senior Notes and Interest | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 1,003 |
Senior Notes Interest | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 3 |
Senior Notes | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 600 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 400 |
Licensing and lease obligations | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 126 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 24 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 26 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 28 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 |
Total Recorded Unconditional Purchase Obligation [Domain] | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 1,129 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 26 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 24 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 626 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 28 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | $ 400 |
Preferred Stock (Details)
Preferred Stock (Details) - shares shares in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock authorized | 10 | 10 |
(Stock-Based Compensation And E
(Stock-Based Compensation And Employee Benefit Plans Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | 35 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | May 08, 2017 | Feb. 17, 2016 | May 04, 2015 | May 05, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred Income Tax Expense (Benefit) | $ 103 | $ (389) | $ 19 | |||||
Tax costs from exercise of stock options | $ 65 | $ 86 | 22 | |||||
Common Stock, Shares, Outstanding | 308 | 301 | 308 | |||||
Deferred Compensation Plan Assets | $ 8 | $ 8 | $ 8 | |||||
Deferred Compensation Liability, Classified, Noncurrent | 9 | 9 | 9 | |||||
Deferred Compensation Arrangement with Individual, Employer Contribution | 28 | 27 | 27 | |||||
Stock Repurchased and Retired During Period, Value | 508 | 1,018 | $ 337 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 31 | $ 31 | ||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 24.3 | 24.3 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.01 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 39 | $ 38 | $ 22 | |||||
Equity Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage Allowed Of Exercise Price Of Stock Options Compared To Fair Market Value On Date Of Grant | 100.00% | |||||||
Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 12.9 | |||||||
Employee Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 3 | |||||||
Number of Shares Available for Grant, Employee Stock Purchase Plans | 7.4 | 7.4 | ||||||
Minimum Percentage That Employees Authorized For Payroll Deductions | 2.00% | |||||||
Maximum Percentage That Employees Authorized For Payroll Deductions | 10.00% | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% | |||||||
Employee Stock [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
ESPP Exercise Price For Shares Issued | $ 54.60 | $ 32.16 | $ 22.64 | |||||
Employee Stock [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
ESPP Exercise Price For Shares Issued | $ 67.56 | $ 54.78 | $ 32.16 | |||||
Restricted Stock Rights [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 17 | 17 | ||||||
May 2014 Repurchase Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 750 | |||||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 57 | $ 337 | $ 394 | ||||
Stock Repurchased and Retired During Period, Shares | 0 | 1 | 8 | 9.2 | ||||
May 2015 Repurchase Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | |||||||
Stock Repurchased and Retired During Period, Value | $ 508 | $ 461 | $ 0 | |||||
Stock Repurchased and Retired During Period, Shares | 6.5 | 6.9 | 0 | |||||
February 2016 Repurchase Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 500 | |||||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 500 | $ 0 | |||||
Stock Repurchased and Retired During Period, Shares | 0 | 7.8 | 0 | |||||
Stock-based compensation expense [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Deferred Income Tax Expense (Benefit) | $ 43 | $ 38 | ||||||
Subsequent Event [Member] | May 2017 Repurchase Program [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | $ 1,200 |
(Schedule Of Assumptions Used I
(Schedule Of Assumptions Used In The Black-Scholes Valuation Model) (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.80% | 1.00% | 0.90% |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.10% | ||
Risk-free interest rate, maximum | 1.90% | ||
Expected volatility, minimum | 36.00% | ||
Expected volatility, maximum | 40.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 38.00% | ||
Expected Term | 4 years 6 months | ||
Expected dividends | 0.00% | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.50% | 0.30% | 0.04% |
Risk-free interest rate, maximum | 0.80% | 0.60% | 0.20% |
Expected volatility, minimum | 25.00% | 32.00% | 30.00% |
Expected volatility, maximum | 32.00% | 36.00% | 35.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 27.00% | 33.00% | 34.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Minimum [Member] | Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 6 months | 6 months | 6 months |
Maximum [Member] | Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 12 months | 12 months | 12 months |
(Schedule Of Assumptions Used87
(Schedule Of Assumptions Used In Monte-Carlo Simulation Model) (Details) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.80% | 1.00% | 0.90% |
Market Based Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 16.00% | 14.00% | 16.00% |
Expected volatility, maximum | 57.00% | 53.00% | 79.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 29.00% | 26.00% | 30.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
(Schedule Of Stock-Based Compen
(Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 196 | $ 178 | $ 144 |
Cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3 | 2 | 2 |
Research and Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 109 | 103 | 82 |
Marketing and sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 31 | 24 | 21 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 53 | $ 49 | $ 39 |
(Schedule Of Stock Option Activ
(Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, Outstanding, Beginning Balance | shares | 3,278 |
Options, Granted | shares | 6 |
Options, Exercised | shares | (876) |
Options, forfeited, cancelled or expired | shares | (31) |
Options, Outstanding, Ending Balance | shares | 2,377 |
Options, vested and expected to vest | shares | 2,358 |
Options, Exercisable | shares | 1,903 |
Weighted-average exercise price of options outstanding, beginning balance | $ / shares | $ 35.09 |
Weighted-average exercise price of options granted during period | $ / shares | 74.93 |
Weighted-Average Exercise Prices, Exercised during period | $ / shares | 40.04 |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired during period | $ / shares | 35.75 |
Weighted-average exercise price of options outstanding, ending balance | $ / shares | 33.35 |
Weighted-average exercise price of options vested and expected to vest | $ / shares | 33.38 |
Weighted-average exercise prices of options exercisable | $ / shares | $ 33.61 |
Weighted-average remaining contractual term of options outstanding | 5 years 3 months 18 days |
Weighted-average remaining contractual term of options vested and expected to vest | 5 years 3 months 16 days |
Weighted-average remaining contractual term of options exercisable | 4 years 10 months 16 days |
Aggregate intrinsic value of options outstanding | $ | $ 134 |
Aggregate intrinsic value of options vested and expected to vest | $ | 132 |
Aggregate intrinsic value of options exercisable | $ | $ 106 |
(Summary Of Outstanding And Exe
(Summary Of Outstanding And Exercisable Stock Options) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 2,377 | 3,278 |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 5 years 3 months 18 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 33.35 | $ 35.09 |
Options exercisable, number of shares | 1,903 | |
Options exercisable, weighted-average exercise prices | $ 33.61 | |
Eleven Point Five Three To Three Point Six One [Member] [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 178 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 2 years 5 months 24 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 19.40 | |
Options Outstanding, Potential Dilution | 0.10% | |
Options exercisable, number of shares | 178 | |
Options exercisable, weighted-average exercise prices | $ 19.40 | |
Options Exercisable, Potential Dilution | 0.10% | |
Twenty Six Point Two Five To Twenty Six Point Two Five [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 950 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 6 years 6 months 28 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 26.25 | |
Options Outstanding, Potential Dilution | 0.30% | |
Options exercisable, number of shares | 770 | |
Options exercisable, weighted-average exercise prices | $ 26.25 | |
Options Exercisable, Potential Dilution | 0.20% | |
Thirty Three Point Six Zero To Thirty Five Point Seven Zero [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 597 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 years 2 months 19 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 35.45 | |
Options Outstanding, Potential Dilution | 0.20% | |
Options exercisable, number of shares | 372 | |
Options exercisable, weighted-average exercise prices | $ 35.30 | |
Options Exercisable, Potential Dilution | 0.10% | |
Thirty Six Point Zero To Fifty Eight Point One Four [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 652 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 2 years 5 months 10 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 45.59 | |
Options Outstanding, Potential Dilution | 0.20% | |
Options exercisable, number of shares | 583 | |
Options exercisable, weighted-average exercise prices | $ 46.59 | |
Options Exercisable, Potential Dilution | 0.20% | |
Eleven Point Five Three To Fifty Eight Point One Four [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 2,377 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 5 years 3 months 18 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 33.35 | |
Options Outstanding, Potential Dilution | 0.80% | |
Options exercisable, number of shares | 1,903 | |
Options exercisable, weighted-average exercise prices | $ 33.61 | |
Options Exercisable, Potential Dilution | 0.60% |
Stock-Based Compensation And 91
Stock-Based Compensation And Employee Benefit Plans (Stock Options Vesting Description) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Fifty Month Vesting With Twenty Four Percent [Member] | |
Cliff Vesting Period | 50 months |
Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Cliff Vesting Period | 35 months |
Thirty Six Month Vesting With Thirty Three Percent [Member] | |
Cliff Vesting Period | 36 months |
Vesting Year4 [Member] | Fifty Month Vesting With Twenty Four Percent [Member] | |
Cliff Vesting Period | 38 months |
Vesting Year4 [Member] | Fifty Month Vesting With Twenty Four and Two Percent [Member] | |
Cliff Vesting Percentage | 2.00% |
Vesting Year3 [Member] | Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Cliff Vesting Percentage | 33.33333% |
Cliff Vesting Period | 35 months |
Vesting Year2 [Member] | Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Cliff Vesting Percentage | 33.33333% |
Cliff Vesting Period | 23 months |
Vesting Year1 [Member] | Fifty Month Vesting With Twenty Four Percent [Member] | |
Cliff Vesting Period | 12 months |
Vesting Year1 [Member] | Fifty Month Vesting With Twenty Four and Two Percent [Member] | |
Cliff Vesting Percentage | 24.00% |
Vesting Year1 [Member] | Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Cliff Vesting Percentage | 33.33333% |
Cliff Vesting Period | 11 months |
Stock-Based Compensation And 92
Stock-Based Compensation And Employee Benefit Plans (Restricted Stock Units Vesting Description) (Details) | 12 Months Ended |
Mar. 31, 2017 | |
One Year Vesting With One Hundred Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 1 year |
Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 35 months |
Three Year Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 3 years |
Three Year Vesting With Sixty Seven And Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 3 years |
Three Year Vesting With Twenty, Twenty Five, and Thirty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 3 years |
Forty Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 40 months |
Forty One Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 41 months |
Four Year Vesting With Twenty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 4 years |
Forty Two Month Vesting With Forty, Thirty Five, Twenty and Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 51 months |
Vesting Year1 [Member] | One Year Vesting With One Hundred Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 100.00% |
Vesting Year1 [Member] | Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 11 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year1 [Member] | Three Year Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 33.33333% |
Vesting Year1 [Member] | Three Year Vesting With Twenty, Twenty Five, and Thirty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 35.00% |
Vesting Year1 [Member] | Four Year Vesting With Twenty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 25.00% |
Vesting Year2 [Member] | Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 23 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year2 [Member] | Three Year Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 33.33333% |
Vesting Year2 [Member] | Three Year Vesting With Sixty Seven And Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 66.66667% |
Vesting Year2 [Member] | Three Year Vesting With Twenty, Twenty Five, and Thirty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 20.00% |
Vesting Year2 [Member] | Forty Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 16 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year2 [Member] | Forty One Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 17 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year2 [Member] | Four Year Vesting With Twenty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 25.00% |
Vesting Year2 [Member] | Forty Two Month Vesting With Forty, Thirty Five, Twenty and Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 18 months |
Cliff Vesting Percentage | 35.00% |
Vesting Year3 [Member] | Thirty Five Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 35 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year3 [Member] | Three Year Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 33.33333% |
Vesting Year3 [Member] | Three Year Vesting With Sixty Seven And Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 33.33333% |
Vesting Year3 [Member] | Three Year Vesting With Twenty, Twenty Five, and Thirty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 20.00% |
Vesting Year3 [Member] | Forty Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 28 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year3 [Member] | Forty One Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 28 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year3 [Member] | Four Year Vesting With Twenty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 25.00% |
Vesting Year3 [Member] | Forty Two Month Vesting With Forty, Thirty Five, Twenty and Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 30 months |
Cliff Vesting Percentage | 20.00% |
Vesting Year4 [Member] | Forty Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 40 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year4 [Member] | Forty One Month Vesting With Thirty Three Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 41 months |
Cliff Vesting Percentage | 33.33333% |
Vesting Year4 [Member] | Four Year Vesting With Twenty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 25.00% |
Vesting Year4 [Member] | Forty Two Month Vesting With Forty, Thirty Five, Twenty and Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | 42 months |
Cliff Vesting Percentage | 5.00% |
Vesting 6 Months [Member] | Three Year Vesting With Twenty, Twenty Five, and Thirty Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 25.00% |
Vesting 6 Months [Member] | Forty Two Month Vesting With Forty, Thirty Five, Twenty and Five Percent [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Percentage | 40.00% |
(Restricted Stock Rights) (Narr
(Restricted Stock Rights) (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | |
Restricted Stock Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 17 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 275 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 76.60 | $ 64.40 | $ 37.22 |
Reduction In Shares Available Per Grant Of Stock Right | 1.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 320 | $ 372 | $ 209 |
Market Based Restricted Stock Units [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 35 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 98.04 | $ 79.81 | $ 48.14 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 42 | $ 47 | $ 23 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Performance Target Maximum, Grants | shares | 0.7 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Performance Target Max, Outstanding | shares | 1.3 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 24.3 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 months | ||
Minimum [Member] | Market Based Restricted Stock Units [Member] | |||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 0.00% | ||
Maximum [Member] | Market Based Restricted Stock Units [Member] | |||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 200.00% | ||
Target [Member] | Market Based Restricted Stock Units [Member] | |||
Target percentage of presented shares granted that may potentially vest | 100.00% |
(Schedule Of Restricted Stock R
(Schedule Of Restricted Stock Rights Activity, Excluding Performance-Based Activity) (Details) - Restricted Stock Rights [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Balance as of March 31, 2015 | 7,157 | ||
Granted | 2,734 | ||
Vested | (4,126) | ||
Forfeited or cancelled | (612) | ||
Balance as of March 31, 2016 | 5,153 | 7,157 | |
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2015 | $ 44.04 | ||
Weighted-Average Grant Date Fair Values, Granted | 76.60 | $ 64.40 | $ 37.22 |
Weighted-Average Grant Date Fair Values, Vested | 37.28 | ||
Weighted-Average Grant Date Fair Values, Forfeited or cancelled | 58.34 | ||
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2016 | $ 65.03 | $ 44.04 |
(Schedule Of Market-Based Restr
(Schedule Of Market-Based Restricted Stock Unit Activity) (Details) - Market Based Restricted Stock Units [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Balance as of March 31, 2015 | 636 | ||
Granted | 353 | ||
Vested | (558) | ||
Vested above target | 238 | ||
Forfeited or cancelled | (28) | ||
Balance as of March 31, 2016 | 641 | 636 | |
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2015 | $ 64.49 | ||
Weighted-Average Grant Date Fair Values, Granted | 98.04 | $ 79.81 | $ 48.14 |
Weighted-Average Grant Date Fair Values, Vested | 50.08 | ||
Share-based compensation Arrangement, Equity instruments other than options, Excess Vesting, Weighted Average Grant Date Fair Value | 44.99 | ||
Weighted-Average Grant Date Fair Values, Forfeited or cancelled | 84.94 | ||
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2016 | $ 87.37 | $ 64.49 |
Stock-Based Compensation And 96
Stock-Based Compensation And Employee Benefit Plans (Schedule of ESPP Activity) (Details) - Employee Stock [Member] - $ / shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.7 | 0.9 | 1.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 17.93 | $ 12.97 | $ 8.26 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Espp Exercise Price For Shares Issued | 54.60 | 32.16 | 22.64 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Espp Exercise Price For Shares Issued | $ 67.56 | $ 54.78 | $ 32.16 |
Stock-Based Compensation And 97
Stock-Based Compensation And Employee Benefit Plans (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | 35 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | Feb. 17, 2016 | May 04, 2015 | May 05, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 508 | $ 1,018 | $ 337 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 31 | $ 31 | |||||
Repurchase program, total | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 508 | $ 1,018 | $ 337 | ||||
Stock repurchased and retired during period, Shares | 6.5 | 15.7 | 8.2 | ||||
May 2014 Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 750 | ||||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 57 | $ 337 | $ 394 | |||
Stock repurchased and retired during period, Shares | 0 | 1 | 8 | 9.2 | |||
May 2015 Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||||
Stock Repurchased and Retired During Period, Value | $ 508 | $ 461 | $ 0 | ||||
Stock repurchased and retired during period, Shares | 6.5 | 6.9 | 0 | ||||
February 2016 Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 500 | ||||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 500 | $ 0 | ||||
Stock repurchased and retired during period, Shares | 0 | 7.8 | 0 |
Interest And Other Income (Ex98
Interest And Other Income (Expense), Net (Schedule Of Interest And Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Interest and Other Income [Abstract] | |||
Loss on Conversion of Convertible Notes | $ 0 | $ (10) | $ 0 |
Interest expense | (47) | (28) | (31) |
Interest income | 25 | 15 | 10 |
Net gain (loss) on foreign currency transactions | (40) | (14) | (62) |
Net gain (loss) on foreign currency forward contracts | 46 | 15 | 59 |
Other income, net | 2 | 1 | 1 |
Interest and other income (expense), net | $ (14) | $ (21) | $ (23) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 12 Months Ended |
Mar. 31, 2015shares | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic Earnings And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||
Net income (loss) | $ 566 | [1] | $ (1) | $ (38) | $ 440 | $ 899 | $ (45) | $ (140) | $ 442 | $ 967 | $ 1,156 | $ 875 |
Weighted-average common stock outstanding - basic | 303 | 310 | 311 | |||||||||
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options | 4 | 6 | 9 | |||||||||
Dilutive potential common shares related to the Convertible Notes | 1 | 6 | 4 | |||||||||
Dilutive potential common shares related to the Warrants | 6 | 8 | 1 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 314 | 330 | 325 | |||||||||
Basic | $ 1.84 | $ 0 | $ (0.13) | $ 1.46 | $ 2.93 | $ (0.14) | $ (0.45) | $ 1.42 | $ 3.19 | $ 3.73 | $ 2.81 | |
Diluted | $ 1.81 | $ 0 | $ (0.13) | $ 1.40 | $ 2.79 | $ (0.14) | $ (0.45) | $ 1.32 | $ 3.08 | $ 3.50 | $ 2.69 | |
[1] | Net income includes an income tax benefit recorded in the fourth quarter of fiscal year 2016 for the reversal of a significant portion of our deferred tax valuation allowance. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue, Major Customer and Geographic Information [Line Items] | |||||||||||
Revenue, Net | $ 1,527,000,000 | $ 1,149,000,000 | $ 898,000,000 | $ 1,271,000,000 | $ 1,308,000,000 | $ 1,070,000,000 | $ 815,000,000 | $ 1,203,000,000 | $ 4,845,000,000 | $ 4,396,000,000 | $ 4,515,000,000 |
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] | Sony [Domain] | |||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | |||||||||||
Entity Wide Revenue By Major Customer Percent Of Revenue | 19.00% | 16.00% | |||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | GameStop Corp [Member] | |||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | |||||||||||
Entity Wide Revenue By Major Customer Percent Of Revenue | 11.00% | ||||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Microsoft [Member] | |||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | |||||||||||
Entity Wide Revenue By Major Customer Percent Of Revenue | 17.00% | 14.00% | 10.00% | ||||||||
Switzerland [Member] | |||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | |||||||||||
Revenue, Net | $ 1,886,000,000 | $ 1,643,000,000 | $ 1,462,000,000 | ||||||||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries, Percentage | 39.00% | 37.00% | 32.00% | ||||||||
United States [Member] | |||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | |||||||||||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Entity's Country of Domicile | 99.00% |
Segment Information (Net Revenu
Segment Information (Net Revenue By Revenue Composition) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenue | $ 1,527 | $ 1,149 | $ 898 | $ 1,271 | $ 1,308 | $ 1,070 | $ 815 | $ 1,203 | $ 4,845 | $ 4,396 | $ 4,515 |
Packaged Goods and other | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenue | 1,971 | 1,987 | 2,316 | ||||||||
Digital [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Net revenue | $ 2,874 | $ 2,409 | $ 2,199 |
Segment Information (Net Rev103
Segment Information (Net Revenue By Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Net revenue | $ 1,527 | $ 1,149 | $ 898 | $ 1,271 | $ 1,308 | $ 1,070 | $ 815 | $ 1,203 | $ 4,845 | $ 4,396 | $ 4,515 |
North America [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenue from unaffiliated customers | 2,119 | 1,907 | 1,956 | ||||||||
International [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenue from unaffiliated customers | $ 2,726 | $ 2,489 | $ 2,559 |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 434 | $ 439 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 369 | 368 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 65 | $ 71 |
Segment Information Net Revenue
Segment Information Net Revenue by Platform (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | $ 1,527 | $ 1,149 | $ 898 | $ 1,271 | $ 1,308 | $ 1,070 | $ 815 | $ 1,203 | $ 4,845 | $ 4,396 | $ 4,515 |
Total consoles, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | 3,390 | 2,942 | 3,011 | ||||||||
Xbox 360, PLAYSTATION 3, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | 331 | 752 | 1,485 | ||||||||
Other consoles, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | 3 | 7 | 21 | ||||||||
PC and Browsers, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | 773 | 814 | 878 | ||||||||
Mobile, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | 627 | 548 | 504 | ||||||||
Other, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | 55 | 92 | 122 | ||||||||
Xbox One, PLAYSTATION 4, net revenue [Domain] | |||||||||||
Schedule of Net Revenue by Platform [Line Items] | |||||||||||
Net revenue | $ 3,056 | $ 2,183 | $ 1,505 |
Quarterly Financial And Mark106
Quarterly Financial And Market Information (Summary Of Quarterly Financial And Market Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Quarterly Financial And Market Information [Line Items] | ||||||||||||
Net revenue | $ 1,527 | $ 1,149 | $ 898 | $ 1,271 | $ 1,308 | $ 1,070 | $ 815 | $ 1,203 | $ 4,845 | $ 4,396 | $ 4,515 | |
Gross profit | 1,325 | 633 | 497 | 1,092 | 1,082 | 524 | 406 | 1,030 | 3,547 | 3,042 | 3,086 | |
Operating income (loss) | 717 | (4) | (49) | 560 | 536 | (31) | (119) | 512 | 1,224 | 898 | 948 | |
Net income (loss) | $ 566 | [1] | $ (1) | $ (38) | $ 440 | $ 899 | $ (45) | $ (140) | $ 442 | $ 967 | $ 1,156 | $ 875 |
Earnings per share - Basic | $ 1.84 | $ 0 | $ (0.13) | $ 1.46 | $ 2.93 | $ (0.14) | $ (0.45) | $ 1.42 | $ 3.19 | $ 3.73 | $ 2.81 | |
Earnings per share - Diluted | 1.81 | 0 | (0.13) | 1.40 | 2.79 | (0.14) | (0.45) | 1.32 | 3.08 | 3.50 | $ 2.69 | |
High price, Common stock per share | 91.51 | 85.56 | 85.40 | 77.25 | 70.83 | 76.77 | 75.16 | 68 | 91.51 | 76.77 | ||
Low price, Common stock per share | $ 78.64 | $ 75.58 | $ 75.38 | $ 61.85 | $ 55.50 | $ 65.04 | $ 63.43 | $ 56.03 | $ 61.85 | $ 55.50 | ||
[1] | Net income includes an income tax benefit recorded in the fourth quarter of fiscal year 2016 for the reversal of a significant portion of our deferred tax valuation allowance. |
Valuation And Qualifying Acc107
Valuation And Qualifying Accounts (Details) - Allowance For Doubtful Accounts, Price Protection And Returns [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 159 | $ 140 | $ 186 | |
Charged to Revenue, Costs and Expenses | 298 | 269 | 361 | |
Charged (Credited) to Other Accounts | [1] | (8) | 11 | (66) |
Deductions | [2] | (304) | (261) | (341) |
Balance at End of Period | $ 145 | $ 159 | $ 140 | |
[1] | Primarily other reclassification adjustments and the translation effect of using the average exchange rate for expense items and the year-end exchange rate for the balance sheet item (allowance account). | |||
[2] | Primarily the utilization of returns allowance and price protection reserves. |