Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Feb. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
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 | 306,727,995 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | |
ASSETS: | |||
Cash and cash equivalents | $ 2,566 | $ 2,565 | [1] |
Short-term investments | 2,318 | 1,967 | [1] |
Receivables, net of allowances of $231 and $145, respectively | 886 | 359 | [1] |
Other current assets | 196 | 308 | [1] |
Total current assets | 5,966 | 5,199 | [1] |
Property and equipment, net | 447 | 434 | [1] |
Goodwill | 1,879 | 1,707 | [1] |
Acquisition-related intangibles, net | 81 | 8 | [1] |
Deferred income taxes, net | 159 | 286 | [1] |
Other assets | 110 | 84 | [1] |
TOTAL ASSETS | 8,642 | 7,718 | [1] |
LIABILITIES: | |||
Accounts payable | 91 | 87 | [1] |
Accrued and other current liabilities | 1,070 | 789 | [1] |
Deferred net revenue (online-enabled games) | 1,946 | 1,539 | [1] |
Total current liabilities | 3,107 | 2,415 | [1] |
Senior notes, net | 992 | 990 | [1] |
Income tax obligations | 194 | 104 | |
Deferred income taxes, net | 2 | 1 | [1] |
Other liabilities | 261 | 148 | [1] |
TOTAL LIABILITIES | 4,556 | 3,658 | [1] |
Commitments and contingencies (See Note 12) | [1] | ||
STOCKHOLDERS' EQUITY: | |||
Common stock, $0.01 par value. 1,000 shares authorized; 307 and 308 shares issued and outstanding, respectively | 3 | 3 | [1] |
Additional paid-in capital | 723 | 1,049 | [1] |
Retained earnings | 3,455 | 3,027 | [1] |
Accumulated other comprehensive loss | (95) | (19) | [1] |
Total stockholders' equity | 4,086 | 4,060 | [1] |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,642 | $ 7,718 | [1] |
[1] | Derived from audited Consolidated Financial Statements. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 |
Receivables, allowances | $ 231 | $ 145 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 307 | 308 |
Common stock, shares outstanding | 307 | 308 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net revenue: | ||||
Product | $ 547 | $ 649 | $ 1,829 | $ 1,753 |
Service and other | 613 | 500 | 1,739 | 1,565 |
Total net revenue | 1,160 | 1,149 | 3,568 | 3,318 |
Cost of revenue: | ||||
Product | 352 | 389 | 716 | 796 |
Service and other | 149 | 127 | 328 | 300 |
Total cost of revenue | 501 | 516 | 1,044 | 1,096 |
Gross profit | 659 | 633 | 2,524 | 2,222 |
Operating expenses: | ||||
Research and development | 329 | 285 | 985 | 870 |
Marketing and sales | 230 | 240 | 511 | 511 |
General and administrative | 120 | 110 | 343 | 329 |
Amortization of intangibles | 1 | 2 | 4 | 5 |
Total operating expenses | 680 | 637 | 1,843 | 1,715 |
Operating income (loss) | (21) | (4) | 681 | 507 |
Interest and other income (expense), net | 5 | (2) | 14 | (13) |
Income (loss) before provision for (benefit from) income taxes | (16) | (6) | 695 | 494 |
Provision for (benefit from) income taxes | 170 | (5) | 259 | 93 |
Net income (loss) | $ (186) | $ (1) | $ 436 | $ 401 |
Earnings (loss) per share: | ||||
Basic | $ (0.60) | $ 0 | $ 1.41 | $ 1.33 |
Diluted | $ (0.60) | $ 0 | $ 1.40 | $ 1.28 |
Number of shares used in computation: | ||||
Basic | 308 | 303 | 309 | 302 |
Diluted | 308 | 303 | 312 | 314 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ (186) | $ (1) | $ 436 | $ 401 |
Other comprehensive income (loss), net of tax: | ||||
Net gains (losses) on available-for-sale securities | (4) | (5) | (4) | (5) |
Net gains (losses) on derivative instruments | (6) | 31 | (96) | 48 |
Foreign currency translation adjustments | (12) | (17) | 24 | (28) |
Total other comprehensive income (loss), net of tax | (22) | 9 | (76) | 15 |
Total comprehensive income (loss) | $ (208) | $ 8 | $ 360 | $ 416 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
OPERATING ACTIVITIES | |||
Net income (loss) | $ 436 | $ 401 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 97 | 140 | |
Stock-based compensation | 173 | 144 | |
Change in assets and liabilities: | |||
Receivables, net | (527) | (367) | |
Other assets | 79 | 40 | |
Accounts payable | 16 | (6) | |
Accrued and other liabilities | 265 | 276 | |
Deferred income taxes, net | 130 | 0 | |
Deferred net revenue (online-enabled games) | 408 | 513 | |
Net cash provided by operating activities | 1,077 | 1,141 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (87) | (94) | |
Proceeds from maturities and sales of short-term investments | 1,656 | 968 | |
Purchase of short-term investments | (2,012) | (1,372) | |
Acquisition, net of cash acquired | (150) | 0 | |
Net cash used in investing activities | (593) | (498) | |
FINANCING ACTIVITIES | |||
Payment of convertible notes | 0 | (163) | |
Proceeds from issuance of common stock | 57 | 33 | |
Cash paid to taxing authorities for shares withheld from employees | (112) | (112) | |
Repurchase and retirement of common stock | (453) | (383) | |
Net cash used in financing activities | (508) | (625) | |
Effect of foreign exchange on cash and cash equivalents | 25 | (28) | |
Increase (decrease) in cash and cash equivalents | 1 | (10) | |
Beginning cash and cash equivalents | 2,565 | [1] | 2,493 |
Ending cash and cash equivalents | 2,566 | 2,483 | |
Supplemental cash flow information: | |||
Cash paid during the period for income taxes, net | 46 | 51 | |
Cash paid during the period for interest | 21 | 23 | |
Non-cash Investing activities | |||
Change in accrued capital expenditures | $ (13) | $ (16) | |
[1] | Derived from audited Consolidated Financial Statements. |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 9 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business And Basis Of Presentation | (1) DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION We are a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and online 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. Our fiscal year is reported on a 52 - or 53 -week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ending March 31, 2018 contains 52 weeks and ends on March 31, 2018. Our results of operations for the fiscal year ended March 31, 2017 contained 52 weeks and ended on April 1, 2017. Our results of operations for the three months ended December 31, 2017 and 2016 contained 13 weeks each and ended on December 30, 2017 and December 31, 2016, respectively. Our results of operations for the nine months ended December 31, 2017 and 2016 contained 39 weeks each and ended on December 30, 2017 and December 31, 2016, respectively. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. The Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting only of normal recurring accruals unless otherwise indicated) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. The results of operations for the current interim periods are not necessarily indicative of results to be expected for the current year or any other period. These Condensed Consolidated Financial Statements should be read in conjunction with the Condensed Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , as filed with the United States Securities and Exchange Commission (“SEC”) on May 24, 2017 . Reclassifications Certain prior year amounts were reclassified to conform to current year presentation. Recently Adopted Accounting Standards We adopted Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , at the beginning of fiscal year 2018. We reflected excess tax benefits of $40 million for the nine months ended December 31, 2017 in the Condensed Consolidated Statement of Income as a component of the provision for income taxes, whereas for the three and nine months ended December 31, 2016 they were recognized in additional paid-in-capital in the Condensed Consolidated Balance Sheets. The impact was immaterial for the three months ended December 31, 2017. The pronouncement also resulted in two changes to our cash flow presentation, which we applied retrospectively for comparability. Excess tax benefits are now 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 now presented as a financing activity instead of an operating activity. The net increase to our reported net cash provided by operating activities and corresponding increase to cash used in financing activities resulting from the adoption of ASU 2016-09 for the nine months ended December 31, 2017 and 2016 are as follows: Nine months ended December 31, (In millions): 2017 2016 Excess tax benefits from stock-based compensation $ 40 $ 53 Cash paid to taxing authorities for shares withheld from employees 112 112 Increase to net cash provided by operating activities and net cash used in financing activities $ 152 $ 165 Impact of Recently Issued Accounting Standards 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. We have reached conclusions on several key accounting assessments related to the New Revenue Standard and have identified certain impacts to our Condensed Consolidated Financial Statements. The New Revenue Standard will have a significant impact on our Condensed 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 from the entire sales price is 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 usually have multiple distinct performance obligations such as software, future update rights, and an online service. The software performance obligation represents the initial game delivered digitally or via physical disc. The future update rights 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 currently estimate that a significant portion of the sales price will be allocated to the software performance obligation and recognized upon delivery, and the remaining portion will be allocated to the future update rights and the online service performance obligations and recognized ratably over the estimated offering period. As a result, we expect a significant portion of our annual revenue, and thereby annual profit, will shift from the first and fourth fiscal quarters to the second and third fiscal quarters which is historically when a significant portion of our annual bookings and software deliveries have been made. Further, we expect the net cumulative effect adjustment upon adoption to result in a pre-tax increase to retained earnings in the range of $600 million to $800 million . The range is based on our actual results through the third quarter of fiscal 2018 and our forecast of sales activity during the fourth quarter of fiscal 2018. These initial estimates will continue to be refined as we approach the adoption of the New Revenue Standard. In addition, both portions of sales price allocated to future update rights and online services will be classified as service revenue under the New Revenue Standard (currently, future update rights are generally presented as product revenue). Therefore, upon adoption, an increased portion of our sales from online-enabled games will be presented as service revenue than is currently reported today. Also, upon adoption of the New Revenue Standard, a substantial majority of our sales returns and price protection reserves will be classified as liabilities (currently, these allowances are classified as contra-assets within receivables on our Condensed Consolidated Balance Sheets). We expect to further refine our estimate of the impact to our consolidated financial statements during the fourth quarter of fiscal year 2018. We will continue to monitor additional changes, modifications, clarifications or interpretations by the SEC, which may impact current expectations. It is possible that during the fourth quarter of fiscal year 2018, we could identify items that result in additional material changes to our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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. We anticipate adopting this standard beginning in the first quarter of fiscal year 2020, when the updated guidance is effective for us. We are currently evaluating the impact of this new standard on our Condensed Consolidated Financial Statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update is intended to make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. This update 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 Condensed 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 Condensed 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 anticipate early adopting ASU 2017-04 during the fourth quarter of fiscal year 2018. We do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 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 December 31, 2017 and March 31, 2017 , our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 299 $ 299 $ — $ — Cash equivalents Money market funds 563 563 — — Cash equivalents Available-for-sale securities: Corporate bonds 1,258 — 1,258 — Short-term investments and cash equivalents U.S. Treasury securities 446 446 — — Short-term investments U.S. agency securities 118 — 118 — Short-term investments and cash equivalents Commercial paper 341 — 341 — Short-term investments and cash equivalents Foreign government securities 100 — 100 — Short-term investments and cash equivalents Asset-backed securities 134 — 134 — Short-term investments Certificates of deposit 22 — 22 — Short-term investments Foreign currency derivatives 8 — 8 — Other current assets and other assets Deferred compensation plan assets (a) 10 10 — — Other assets Total assets at fair value $ 3,299 $ 1,318 $ 1,981 $ — Liabilities Contingent consideration (b) $ 122 $ — $ — $ 122 Other liabilities Foreign currency derivatives 41 — 41 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 11 11 — — Other liabilities Total liabilities at fair value $ 174 $ 11 $ 41 $ 122 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Consideration Balance as of March 31, 2017 $ — Additions 122 Balance as of December 31, 2017 $ 122 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 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 $ — (a) The Deferred Compensation Plan assets consist of various mutual funds. See Note 13 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , for additional information regarding our Deferred Compensation Plan. (b) The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. We estimated the fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation. The discount rates used ranged from 2.7 percent to 3.3 percent. See Note 6 for additional information regarding the Respawn acquisition. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Financial Instruments | (3) FINANCIAL INSTRUMENTS Cash and Cash Equivalents As of December 31, 2017 and March 31, 2017 , our cash and cash equivalents were $2,566 million and $2,565 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 December 31, 2017 and March 31, 2017 (in millions): As of December 31, 2017 As of March 31, 2017 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 1,212 $ — $ (3 ) $ 1,209 $ 944 $ — $ (1 ) $ 943 U.S. Treasury securities 448 — (2 ) 446 414 — (1 ) 413 U.S. agency securities 117 — (2 ) 115 152 — (1 ) 151 Commercial paper 294 — — 294 212 — — 212 Foreign government securities 98 — — 98 113 — — 113 Asset-backed securities 135 — (1 ) 134 135 — — 135 Certificates of deposit 22 — — 22 — — — — Short-term investments $ 2,326 $ — $ (8 ) $ 2,318 $ 1,970 $ — $ (3 ) $ 1,967 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of December 31, 2017 and March 31, 2017 (in millions): As of December 31, 2017 As of March 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 1,598 $ 1,596 $ 1,237 $ 1,236 Due 1 year through 5 years 725 719 721 719 Due after 5 years 3 3 12 12 Short-term investments $ 2,326 $ 2,318 $ 1,970 $ 1,967 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 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 Condensed Consolidated Balance Sheets. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting. We transact business in various foreign currencies and have significant international sales and expenses denominated in foreign currencies, subjecting us to foreign currency risk. We purchase foreign currency forward contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in certain foreign currencies. Our cash flow risks are primarily related to fluctuations in the Euro, British pound sterling, Canadian dollar, Swedish krona, 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 three 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 Condensed Consolidated Balance Sheets. The effective portion of gains or losses resulting from changes in the fair value of these hedges is initially reported, net of tax, as a component of accumulated other comprehensive income (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 Condensed 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 Condensed Consolidated Statements of Operations. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur, within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions): As of December 31, 2017 As of March 31, 2017 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 209 $ 5 $ 1 $ 185 $ — $ 5 Forward contracts to sell $ 985 $ 1 $ 33 $ 840 $ 19 $ 3 The net impact of the effective portion of gains and losses from our cash flow hedging activities in our Condensed Consolidated Statements of Operations was a loss of $8 million for the three months ended December 31, 2017 and a gain of $8 million for the three months ended December 31, 2016 . The net impact of the effective portion of gains and losses from our cash flow hedging activities in our Condensed Consolidated Statements of Operations was a gain of $14 million for the nine months ended December 31, 2017 and a gain of $18 million for the nine months ended December 31, 2016 . The amount excluded from the assessment of hedge effectiveness during the three months ended December 31, 2017 and 2016 and recognized in interest and other income (expense), net, was immaterial. The amount excluded from the assessment of hedge effectiveness was a gain of $7 million for the nine months ended December 31, 2017 and recognized in interest and other income (expense), net. The amount excluded from the assessment of hedge effectiveness was immaterial for the nine months ended December 31, 2016 . Balance Sheet Hedging Activities Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives whereby the fair value of the contracts are reported as other current assets or accrued and other current liabilities on our Condensed Consolidated Balance Sheets, and gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. The gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-denominated monetary assets and liabilities, which are also reported in interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. 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 December 31, 2017 As of March 31, 2017 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 354 $ 1 $ — $ 87 $ — $ — Forward contracts to sell $ 785 $ 1 $ 7 $ 166 $ — $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2017 and 2016 , was as follows (in millions): Statement of Operations Classification Amount of Gain (Loss) Recognized in the Statement of Operations Three Months Ended Nine Months Ended 2017 2016 2017 2016 Foreign currency forward contracts not designated as hedging instruments Interest and other income (expense), net $ (4 ) $ 49 $ (13 ) $ 50 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Dec. 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 three months ended December 31, 2017 and 2016 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 September 30, 2017 $ (3 ) $ (58 ) $ (12 ) $ (73 ) Other comprehensive income (loss) before reclassifications (4 ) (14 ) (12 ) (30 ) Amounts reclassified from accumulated other comprehensive income (loss) — 8 — 8 Total other comprehensive income (loss), net of tax (4 ) (6 ) (12 ) (22 ) Balance as of December 31, 2017 $ (7 ) $ (64 ) $ (24 ) $ (95 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of September 30, 2016 $ 1 $ 31 $ (42 ) $ (10 ) Other comprehensive income (loss) before reclassifications (5 ) 39 (17 ) 17 Amounts reclassified from accumulated other comprehensive income (loss) — (8 ) — (8 ) Total other comprehensive income (loss), net of tax (5 ) 31 (17 ) 9 Balance as of December 31, 2016 $ (4 ) $ 62 $ (59 ) $ (1 ) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended December 31, 2017 and 2016 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, 2017 $ (3 ) $ 32 $ (48 ) $ (19 ) Other comprehensive income (loss) before reclassifications (4 ) (82 ) 34 (52 ) Amounts reclassified from accumulated other comprehensive income (loss) — (14 ) (10 ) (24 ) Total other comprehensive income (loss), net of tax (4 ) (96 ) 24 (76 ) Balance as of December 31, 2017 $ (7 ) $ (64 ) $ (24 ) $ (95 ) 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, 2016 $ 1 $ 14 $ (31 ) $ (16 ) Other comprehensive income (loss) before reclassifications (4 ) 66 (28 ) 34 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (18 ) — (19 ) Total other comprehensive income (loss), net of tax (5 ) 48 (28 ) 15 Balance as of December 31, 2016 $ (4 ) $ 62 $ (59 ) $ (1 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2017 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on cash flow hedges from forward contracts Net revenue $ 9 $ (13 ) Research and development (1 ) (1 ) Total, net of tax $ 8 $ (14 ) (Gains) losses on foreign currency translation Interest and other income (expense), net $ — $ (10 ) Total, net of tax $ — $ (10 ) Total net (gain) loss reclassified, net of tax $ 8 $ (24 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2016 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on available-for-sale securities Interest and other income (expense), net $ — $ (1 ) Total, net of tax $ — $ (1 ) (Gains) losses on cash flow hedges from forward contracts Net revenue $ (9 ) $ (18 ) Research and development 1 — Total, net of tax $ (8 ) $ (18 ) Total net (gain) loss reclassified, net of tax $ (8 ) $ (19 ) |
Business Combinations
Business Combinations | 9 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | (6) BUSINESS COMBINATIONS Respawn Entertainment, LLC On December 1, 2017 , we completed our acquisition of Respawn Entertainment, LLC (“Respawn”), a leading game development studio and creators of games including the critically-acclaimed Titanfall franchise. The total purchase price was $273 million , which consisted of $151 million in cash and the acquisition date fair value of contingent consideration of $122 million . The purchase price was preliminarily allocated to Respawn’s net tangible and intangible assets based upon their estimated fair values as of December 1, 2017 , resulting in $167 million being preliminarily allocated to goodwill that consists largely of workforce and synergies with our existing business, all of which is expected to be deductible for tax purposes. $78 million was preliminarily allocated to intangible assets acquired; and $28 million was preliminarily allocated to net tangible assets acquired. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the reporting date and are considered preliminary pending finalization of the valuation analyses pertaining to assets acquired and liabilities assumed, valuation of the contingent consideration as well as the calculation of any deferred tax assets and liabilities. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The payment of the contingent consideration is based on the achievement of certain performance milestones through the end of calendar year 2022 at the latest. The maximum amount of contingent consideration we may be required to pay is $140 million . The fair value of the contingent consideration is included in other liabilities on our Condensed Consolidated Balance Sheet. As of December 31, 2017, there were no significant changes in the range of expected outcomes for the contingent consideration from the acquisition date. Subsequent to the acquisition, we also granted an aggregate of $167 million of restricted stock unit awards of our common stock to Respawn employees that will be recognized over a four year period as stock-based compensation expense. The fair value of these equity awards was based on the quoted market price of our common stock on the date of grant. The results of operations of Respawn and the preliminary fair value of the assets acquired and liabilities assumed have been included in our Consolidated Financial Statements since the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our Consolidated Statements of Operations. During the three and nine months ended December 31, 2016, there were no acquisitions. |
Goodwill And Acquisition-Relate
Goodwill And Acquisition-Related Intangibles, Net | 9 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Acquisition-Related Intangibles, Net | (7) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET The changes in the carrying amount of goodwill for the nine months ended December 31, 2017 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,075 $ 167 $ 5 $ 2,247 Accumulated impairment (368 ) — — (368 ) Total $ 1,707 $ 167 $ 5 $ 1,879 Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. During the three months ended December 31, 2017, we estimated, on a preliminary basis, goodwill acquired in our acquisition of Respawn. The Company expects to finalize the valuation of the Respawn acquisition as soon as practicable, but not later than one year from the acquisition date. Once completed, there may be material adjustments to our goodwill amounts. Acquisition-related intangibles consisted of the following (in millions): As of December 31, 2017 As of March 31, 2017 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 419 $ (412 ) $ 7 $ 412 $ (412 ) $ — Trade names and trademarks 153 (103 ) 50 106 (98 ) 8 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — In-process research and development 24 — 24 — — — Total $ 686 $ (605 ) $ 81 $ 608 $ (600 ) $ 8 During the three months ended December 31, 2017, we estimated, on a preliminary basis, the fair value of acquisition-related intangible assets of $78 million in connection with the Respawn acquisition, of which $47 million was allocated to trade names and trademarks, $24 million are allocated to in-process research and development, and $7 million was allocated to developed and core technology. Excluding the in-process research and development assets, the weighted-average useful life of the Respawn acquired intangible assets was approximately 7.1 years . Amortization of intangibles for the three and nine months ended December 31, 2017 and 2016 are classified in the Condensed Consolidated Statement of Operations as follows (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Cost of service and other $ — $ — $ — $ 16 Cost of product 1 18 1 27 Operating expenses 1 2 4 5 Total $ 2 $ 20 $ 5 $ 48 Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, ranging from 1 to 14 years . As of December 31, 2017 and March 31, 2017 , the weighted-average remaining useful life for acquisition-related intangible assets was approximately 6.7 years and 1.4 years , respectively. As of December 31, 2017 , future amortization of acquisition-related intangibles that will be recorded in the Condensed Consolidated Statement of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2018 (remaining three months) $ 5 2019 13 2020 6 2021 6 2022 6 2023 6 Thereafter 15 Total $ 57 |
Royalties And Licenses
Royalties And Licenses | 9 Months Ended |
Dec. 31, 2017 | |
Royalties And Licenses [Abstract] | |
Royalties And Licenses | (8) 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 an impairment exists, then the assets are written down to fair value. Unrecognized minimum royalty-based commitments are accounted for as executory contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is abandoned ( i.e. , cease use) or the contractual rights to use the intellectual property are terminated. During the three and nine months ended December 31, 2017, we did not recognize any material losses or impairment charges on royalty-based commitments. During the three and nine months ended December 31, 2016, we determined that the carrying value of one of our royalty-based assets and previously unrecognized minimum royalty-based commitments were not recoverable. We recognized an impairment charge of $12 million on the asset and a loss of $10 million on the previously unrecognized minimum royalty-based commitment. Of the total $22 million loss, $10 million was included in cost of service revenue and $12 million was included in research and development expenses in our Condensed Consolidated Statements of Operations. The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of As of Other current assets $ 20 $ 79 Other assets 34 39 Royalty-related assets $ 54 $ 118 At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates, content licensors, and/or independent software developers, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of As of Accrued royalties $ 260 $ 165 Other liabilities 80 97 Royalty-related liabilities $ 340 $ 262 As of December 31, 2017 , we were committed to pay approximately $987 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty ( i.e. , delivery of the product or content or other factors) and such commitments were therefore not recorded in our Condensed Consolidated Financial Statements. See Note 12 for further information on our developer and licensor commitments. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | (9) BALANCE SHEET DETAILS Property and Equipment, Net Property and equipment, net, as of December 31, 2017 and March 31, 2017 consisted of (in millions): As of As of Computer, equipment and software $ 724 $ 723 Buildings 336 316 Leasehold improvements 137 126 Equipment, furniture and fixtures, and other 81 82 Land 66 61 Construction in progress 7 7 1,351 1,315 Less: accumulated depreciation (904 ) (881 ) Property and equipment, net $ 447 $ 434 During the three and nine months ended December 31, 2017 , depreciation expense associated with property and equipment was $30 million and $89 million , respectively. During the three and nine months ended December 31, 2016 , depreciation expense associated with property and equipment was $29 million and $86 million , respectively. Accrued and Other Current Liabilities Accrued and other current liabilities as of December 31, 2017 and March 31, 2017 consisted of (in millions): As of As of Other accrued expenses $ 346 $ 210 Accrued compensation and benefits 249 267 Accrued royalties 260 165 Deferred net revenue (other) 215 147 Accrued and other current liabilities $ 1,070 $ 789 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 $1,946 million and $1,539 million as of December 31, 2017 and March 31, 2017 , 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 vendor-specific objective evidence of fair value (“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 | 9 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) INCOME TAXES The provision for income taxes for the three and nine months ended December 31, 2017 is based on our projected annual effective tax rate for fiscal year 2018, adjusted for specific items that are required to be recognized in the period in which they are incurred. Our effective tax rate and resulting provision for income taxes for the three and nine months ended December 31, 2017 was significantly impacted by the U.S. Tax Cuts and Jobs Act (the “U.S. Tax Act”), enacted on December 22, 2017. The U.S. Tax Act significantly revised the U.S. corporate income tax system by, among other things, lowering the U.S. corporate income tax rates, generally implementing a territorial tax system and imposing a one-time transition tax on the deemed repatriation of undistributed earnings of foreign subsidiaries (the “Transition Tax”). Our effective tax rate for the three and nine months ended December 31, 2017 was negative 1,062.5 percent and positive 37.3 percent , respectively, as compared to 83.3 percent and 18.8 percent , respectively for the same periods in fiscal year 2017. The effective tax rate for the three and nine months ended December 31, 2017 was negatively impacted by the provisional income tax effects of the U.S. Tax Act, offset by earnings realized in countries that have lower statutory tax rates and the recognition of excess tax benefits from stock-based compensation. Without the provisional tax charge of the U.S. Tax Act, our effective tax rate for the three and nine months ended December 31, 2017 would have been 37.5 percent and 11.9 percent , respectively. We have a March 31 fiscal year-end; therefore, the lower corporate tax rate enacted by the U.S. Tax Act will be phased in, resulting in a U.S. statutory federal rate of 31.6 percent for our fiscal year ending March 31, 2018, and 21.0 percent for subsequent fiscal years. When compared to the statutory rate of 31.6 percent , the effective tax rate for the three and nine months ended December 31, 2017 was higher primarily due to the income tax impacts of the U.S. Tax Act, offset by earnings realized in countries that have lower statutory tax rates and the recognition of excess tax benefits from stock-based compensation. We anticipate that the impact of excess tax benefits and tax deficiencies may result in significant fluctuations to our effective tax rate in the future. Excluding excess tax benefits, our effective tax rate would have been negative 1,075.0 percent and positive 43.6 percent , respectively, for the three and nine months ended December 31, 2017. We recorded a provision for income taxes of $170 million and $259 million for the three and nine months ended December 31, 2017, respectively, including $176 million which is a reasonable estimate of the impacts of the U.S. Tax Act. We recorded a reasonable estimate of $151 million related to the Transition Tax. The final calculations of the Transition Tax may differ from our estimates, potentially materially, due to, among other things, changes in interpretations of the U.S. Tax Act, our analysis of the U.S. Tax Act, or any updates or changes to estimates that we have utilized to calculate the transition impacts, including impacts from changes to current year earnings estimates and assertions. In addition, we provisionally recorded a tax charge related to the remeasurement of U.S. deferred tax assets and liabilities as a result of the reduction of the U.S. corporate tax rate and a tax benefit related to the deferred tax impacts of global intangible income. The impact of these, as well as certain other charges and benefits, were not material individually, or in the aggregate, and are provisional for the same reasons as stated above. Reasonable estimates of the impacts of the U.S. Tax Act are provided in accordance with SEC guidance that allows for a measurement period of up to one year after the enactment date of the U.S. Tax Act to finalize the recording of the related tax impacts. We expect to complete the accounting under the U.S. Tax Act as soon as practicable, but in no event later than one year from the enactment date of the U.S. Tax Act. We file income tax returns and are subject to income tax examinations in various jurisdictions with respect to fiscal years after 2008. The timing and potential resolution of income tax examinations is highly uncertain. While we continue to measure our uncertain tax positions, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued. It is reasonably possible that a reduction of up to $45 million of unrecognized tax benefits may occur within the next 12 months, a portion of which would impact our effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements. |
Financing Arrangement
Financing Arrangement | 9 Months Ended |
Dec. 31, 2017 | |
Debt Instruments [Abstract] | |
Financing Arrangement | (11) FINANCING ARRANGEMENTS 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 (6 ) (8 ) Net carrying value of Senior Notes $ 992 $ 990 Fair value of Senior Notes (Level 2) $ 1,059 $ 1,054 As of December 31, 2017 , the remaining life of the 2021 Notes and 2026 Notes is approximately 3.2 years and 8.2 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 December 31, 2017 , 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 the three and nine months ended December 31, 2017 and 2016 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amortization of debt discount $ — $ — $ — $ (2 ) Amortization of debt issuance costs — (1 ) (1 ) (2 ) Coupon interest expense (10 ) (10 ) (31 ) (31 ) Other interest expense — (1 ) — (1 ) Total interest expense $ (10 ) $ (12 ) $ (32 ) $ (36 ) |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | (12) COMMITMENTS AND CONTINGENCIES Lease Commitments As of December 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 E.V. (German Soccer League) (professional soccer); Dr. Ing. h.c. F. Porsche AG, Ferrari S.p.A. and Automobili Lamborghini S.p.A (Need For Speed and Real Racing games); National Basketball Association (professional basketball); National Hockey League and NHL Players’ Association (professional hockey); National Football League Properties and PLAYERS Inc. (professional football); William Morris Endeavor Entertainment LLC (professional mixed martial arts); ESPN (content in EA SPORTS games); Disney Interactive (Star Wars); and Fox Digital Entertainment, Inc. (The Simpsons). 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 December 31, 2017 (in millions): Fiscal Years Ending March 31, 2018 (Remaining Total three mos.) 2019 2020 2021 2022 2023 Thereafter Unrecognized commitments Developer/licensor commitments $ 987 $ 26 $ 224 $ 229 $ 205 $ 222 $ 80 $ 1 Marketing commitments 355 9 86 83 77 73 27 — Operating leases 249 8 43 39 39 32 25 63 Senior Notes interest 227 7 41 41 41 20 19 58 Other purchase obligations 109 9 30 27 14 9 6 14 Total unrecognized commitments 1,927 59 424 419 376 356 157 136 Recognized commitments Senior Notes principal and interest 1,013 13 — — 600 — — 400 Licensing obligations 107 6 23 25 26 27 — — Total recognized commitments 1,120 19 23 25 626 27 — 400 Total commitments $ 3,047 $ 78 $ 447 $ 444 $ 1,002 $ 383 $ 157 $ 536 The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Condensed Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of December 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 December 31, 2017 , we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $98 million , of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. Furthermore, we had a $104 million income tax payable recorded during the three months ended December 31, 2017 related to the provisional Transition Tax, which we expect to pay in installments over the next 8 years. Of the $104 million , $8 million is included in accrued and other current liabilities and the remaining $96 million is included in income tax obligations on our Condensed Consolidated Balance Sheet. In addition to what is included in the table above, as of December 31, 2017 , we may be required to pay up to $140 million of cash consideration in connection with the Respawn acquisition based on the achievement of certain performance milestones through the end of calendar year 2022 at the latest. As of December 31, 2017 , we have recorded $122 million of contingent consideration on our Condensed Consolidated Balance Sheet representing the estimated fair value. 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, where the case is pending. We are also subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Condensed Consolidated Financial Statements. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (13) STOCK-BASED COMPENSATION 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 and Performance-Based Restricted Stock Units . The fair value of restricted stock units and performance-based restricted stock units (other than market-based restricted stock units) is determined based on the quoted market price of our common stock on the date of grant. • 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 the three and nine months ended December 31, 2017 and 2016 . The estimated assumptions used in the Black-Scholes valuation model to value our ESPP purchase rights were as follows: ESPP Purchase Rights Three Months Ended 2017 2016 Risk-free interest rate 1.13 - 1.24% 0.5 - 0.6% Expected volatility 28 % 29 - 32% Weighted-average volatility 28 % 31 % Expected term 6 - 12 months 6 - 12 months Expected dividends None None There were no market-based restricted stock units granted during the three months ended December 31, 2017 and 2016 . Stock-Based Compensation Expense Employee stock-based compensation expense recognized during the three and nine months ended December 31, 2016 was calculated based on awards ultimately expected to vest and was reduced for estimated forfeitures. We adopted ASU 2016-09 at the beginning of fiscal year 2018 and elected to account for forfeitures as they occur. The adoption resulted in a cumulative-effect adjustment of $8 million , net of tax, decrease to retained earnings. The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Cost of revenue $ — $ — $ 2 $ 2 Research and development 38 27 102 81 Marketing and sales 8 8 24 23 General and administrative 17 13 45 38 Stock-based compensation expense $ 63 $ 48 $ 173 $ 144 During the three months ended December 31, 2017 , we recognized a $4 million deferred income tax benefit related to our stock-based compensation expense. During the three months ended December 31, 2016 , we recognized a $10 million deferred income tax benefit related to our stock-based compensation expense. During the nine months ended December 31, 2017 , we recognized a $26 million deferred income tax benefit related to our stock-based compensation expense. During the nine months ended December 31, 2016 , we recognized a $28 million deferred income tax benefit related to our stock-based compensation expense. As of December 31, 2017 , our total unrecognized compensation cost related to restricted stock units, market-based restricted stock units, performance-based restricted stock units, and stock options was $556 million and is expected to be recognized over a weighted-average service period of 2.3 years . Of the $556 million of unrecognized compensation cost, $459 million relates to restricted stock units, $58 million relates to market-based restricted stock units, and $39 million relates to performance-based restricted stock units at 103 percent average vesting target. Stock Options The following table summarizes our stock option activity for the nine months ended December 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, 2017 2,377 $ 33.35 Granted 3 108.88 Exercised (746 ) 40.58 Forfeited, cancelled or expired (2 ) 45.15 Outstanding as of December 31, 2017 1,632 $ 30.20 5.67 $ 122 Vested and expected to vest 1,632 $ 30.20 5.67 $ 122 Exercisable as of December 31, 2017 1,612 $ 30.24 5.66 $ 121 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of December 31, 2017 , which would have been received by the option holders had all the option holders exercised their options as of that date. We issue new common stock from our authorized shares upon the exercise of stock options. Restricted Stock Units The following table summarizes our restricted stock unit activity for the nine months ended December 31, 2017 : Restricted Stock Rights (in thousands) Weighted- Average Grant Date Fair Values Outstanding as of March 31, 2017 5,153 $ 65.03 Granted 3,661 109.33 Vested (2,370 ) 111.14 Forfeited or cancelled (330 ) 77.44 Outstanding as of December 31, 2017 6,114 $ 73.01 Performance-Based Restricted Stock Units Our performance-based restricted stock units cliff vest after a four-year performance period contingent upon the achievement of pre-determined performance-based milestones and service conditions. If these performance-based milestones are not met but service conditions are met, the performance-based restricted stock units will not vest, in which case any compensation expense we have recognized to date will be reversed. Each quarter, we update our assessment of the probability that the specified performance criteria will be achieved. We amortize the fair values of performance-based restricted stock units over the requisite service period. 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 performance-based restricted stock units attributable to each performance-based milestone. The following table summarizes our performance-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the nine months ended December 31, 2017 : Performance- Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2017 — $ — Granted 796 110.51 Forfeited or cancelled — — Outstanding as of December 31, 2017 796 $ 110.51 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 either a one-year, two-year cumulative and three-year cumulative period, or over a two-year and four-year cumulative period. The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the nine months ended December 31, 2017 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2017 1,282 $ 87.37 Granted 706 140.93 Vested (430 ) 76.27 Forfeited or cancelled (216 ) 91.88 Outstanding as of December 31, 2017 1,342 $ 118.35 Stock Repurchase Program In May 2015, our Board of Directors authorized a program to repurchase up to $1 billion of our common stock. We repurchased approximately 0.3 million shares for approximately $31 million under this program during the three months ended June 30, 2017. We completed repurchases under the May 2015 program in April 2017. In May 2017, a Special Committee of our Board of Directors, on behalf of the full Board of Directors, authorized a 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. During the three and nine months ended December 31, 2017 , we repurchased approximately 1.4 million and 3.8 million shares for approximately $150 million and $422 million , respectively, under this program. We are actively repurchasing shares under this program. The following table summarizes total shares repurchased during the three and nine months ended December 31, 2017 and 2016 : May 2015 Program May 2017 Program Total (in millions) Shares Amount Shares Amount Shares Amount Three months ended December 31, 2017 — $ — 1.4 $ 150 1.4 $ 150 Nine months ended December 31, 2017 0.3 $ 31 3.8 $ 422 4.1 $ 453 Three months ended December 31, 2016 1.5 $ 127 — $ — 1.5 $ 127 Nine months ended December 31, 2016 5.0 $ 383 — $ — 5.0 $ 383 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings (Loss) Per Share | (14) EARNINGS (LOSS) 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. Three Months Ended December 31, Nine Months Ended December 31, (In millions, except per share amounts) 2017 2016 2017 2016 Net income (loss) $ (186 ) $ (1 ) $ 436 $ 401 Shares used to compute earnings (loss) per share: Weighted-average common stock outstanding — basic 308 303 309 302 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options — — 3 3 Dilutive potential common shares related to the Convertible Notes (a) — — — 1 Dilutive potential common shares related to the Warrants (a) — — — 8 Weighted-average common stock outstanding — diluted 308 303 312 314 Earnings (loss) per share: Basic $ (0.60 ) $ ( 0.00) $ 1.41 $ 1.33 Diluted $ (0.60 ) $ ( 0.00) $ 1.40 $ 1.28 As a result of our net loss for the three months ended December 31, 2017, we have excluded all potentially dilutive common shares from the diluted loss per share calculation as their inclusion would have had an antidilutive effect. Had we reported net income for this period, an additional 3 million shares of common stock related to our outstanding equity-based instruments would have been included in the number of shares used to calculate Diluted EPS for the three months ended December 31, 2017. As a result of our net loss for the three months ended December 31, 2016, we have excluded all potentially dilutive common shares from the diluted loss per share calculation as their inclusion would have had an antidilutive effect. Had we reported net income for this period, an additional 3 million shares of common stock related to our outstanding equity-based instruments and an additional 7 million shares related to the Warrants would have been included in the number of shares used to calculate Diluted EPS for the three months ended December 31, 2016. For the nine months ended December 31, 2017 and 2016 , an immaterial amount of restricted stock units and market-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. Our performance-based restricted stock units, which are considered contingently issuable shares, are also excluded from the treasury stock method computation because the related performance-based milestones were not achieved as of the end of the reporting period. (a) See Note 10 - Financing Arrangements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , for additional information regarding the potential dilutive shares related to our Convertible Notes and Warrants. |
Description Of Business And B21
Description Of Business And Basis Of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Standards We adopted Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , at the beginning of fiscal year 2018. We reflected excess tax benefits of $40 million for the nine months ended December 31, 2017 in the Condensed Consolidated Statement of Income as a component of the provision for income taxes, whereas for the three and nine months ended December 31, 2016 they were recognized in additional paid-in-capital in the Condensed Consolidated Balance Sheets. The impact was immaterial for the three months ended December 31, 2017. The pronouncement also resulted in two changes to our cash flow presentation, which we applied retrospectively for comparability. Excess tax benefits are now 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 now presented as a financing activity instead of an operating activity. The net increase to our reported net cash provided by operating activities and corresponding increase to cash used in financing activities resulting from the adoption of ASU 2016-09 for the nine months ended December 31, 2017 and 2016 are as follows: Nine months ended December 31, (In millions): 2017 2016 Excess tax benefits from stock-based compensation $ 40 $ 53 Cash paid to taxing authorities for shares withheld from employees 112 112 Increase to net cash provided by operating activities and net cash used in financing activities $ 152 $ 165 |
Impact of recently issued accounting standards | Impact of Recently Issued Accounting Standards 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. We have reached conclusions on several key accounting assessments related to the New Revenue Standard and have identified certain impacts to our Condensed Consolidated Financial Statements. The New Revenue Standard will have a significant impact on our Condensed 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 from the entire sales price is 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 usually have multiple distinct performance obligations such as software, future update rights, and an online service. The software performance obligation represents the initial game delivered digitally or via physical disc. The future update rights 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 currently estimate that a significant portion of the sales price will be allocated to the software performance obligation and recognized upon delivery, and the remaining portion will be allocated to the future update rights and the online service performance obligations and recognized ratably over the estimated offering period. As a result, we expect a significant portion of our annual revenue, and thereby annual profit, will shift from the first and fourth fiscal quarters to the second and third fiscal quarters which is historically when a significant portion of our annual bookings and software deliveries have been made. Further, we expect the net cumulative effect adjustment upon adoption to result in a pre-tax increase to retained earnings in the range of $600 million to $800 million . The range is based on our actual results through the third quarter of fiscal 2018 and our forecast of sales activity during the fourth quarter of fiscal 2018. These initial estimates will continue to be refined as we approach the adoption of the New Revenue Standard. In addition, both portions of sales price allocated to future update rights and online services will be classified as service revenue under the New Revenue Standard (currently, future update rights are generally presented as product revenue). Therefore, upon adoption, an increased portion of our sales from online-enabled games will be presented as service revenue than is currently reported today. Also, upon adoption of the New Revenue Standard, a substantial majority of our sales returns and price protection reserves will be classified as liabilities (currently, these allowances are classified as contra-assets within receivables on our Condensed Consolidated Balance Sheets). We expect to further refine our estimate of the impact to our consolidated financial statements during the fourth quarter of fiscal year 2018. We will continue to monitor additional changes, modifications, clarifications or interpretations by the SEC, which may impact current expectations. It is possible that during the fourth quarter of fiscal year 2018, we could identify items that result in additional material changes to our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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 do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. 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. We anticipate adopting this standard beginning in the first quarter of fiscal year 2020, when the updated guidance is effective for us. We are currently evaluating the impact of this new standard on our Condensed Consolidated Financial Statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update is intended to make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. This update 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 Condensed 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 Condensed 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 anticipate early adopting ASU 2017-04 during the fourth quarter of fiscal year 2018. We do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. |
Description Of Business And B22
Description Of Business And Basis Of Presentation New Accounting Pronouncements or Change in Accounting Principle (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounting Standard Cash Flow Reclassification [Table Text Block] | Nine months ended December 31, (In millions): 2017 2016 Excess tax benefits from stock-based compensation $ 40 $ 53 Cash paid to taxing authorities for shares withheld from employees 112 112 Increase to net cash provided by operating activities and net cash used in financing activities $ 152 $ 165 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 299 $ 299 $ — $ — Cash equivalents Money market funds 563 563 — — Cash equivalents Available-for-sale securities: Corporate bonds 1,258 — 1,258 — Short-term investments and cash equivalents U.S. Treasury securities 446 446 — — Short-term investments U.S. agency securities 118 — 118 — Short-term investments and cash equivalents Commercial paper 341 — 341 — Short-term investments and cash equivalents Foreign government securities 100 — 100 — Short-term investments and cash equivalents Asset-backed securities 134 — 134 — Short-term investments Certificates of deposit 22 — 22 — Short-term investments Foreign currency derivatives 8 — 8 — Other current assets and other assets Deferred compensation plan assets (a) 10 10 — — Other assets Total assets at fair value $ 3,299 $ 1,318 $ 1,981 $ — Liabilities Contingent consideration (b) $ 122 $ — $ — $ 122 Other liabilities Foreign currency derivatives 41 — 41 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 11 11 — — Other liabilities Total liabilities at fair value $ 174 $ 11 $ 41 $ 122 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 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, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Consideration Balance as of March 31, 2017 $ — Additions 122 Balance as of December 31, 2017 $ 122 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Fair Value Of Short-Term Investments | Short-term investments consisted of the following as of December 31, 2017 and March 31, 2017 (in millions): As of December 31, 2017 As of March 31, 2017 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 1,212 $ — $ (3 ) $ 1,209 $ 944 $ — $ (1 ) $ 943 U.S. Treasury securities 448 — (2 ) 446 414 — (1 ) 413 U.S. agency securities 117 — (2 ) 115 152 — (1 ) 151 Commercial paper 294 — — 294 212 — — 212 Foreign government securities 98 — — 98 113 — — 113 Asset-backed securities 135 — (1 ) 134 135 — — 135 Certificates of deposit 22 — — 22 — — — — Short-term investments $ 2,326 $ — $ (8 ) $ 2,318 $ 1,970 $ — $ (3 ) $ 1,967 |
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 December 31, 2017 and March 31, 2017 (in millions): As of December 31, 2017 As of March 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 1,598 $ 1,596 $ 1,237 $ 1,236 Due 1 year through 5 years 725 719 721 719 Due after 5 years 3 3 12 12 Short-term investments $ 2,326 $ 2,318 $ 1,970 $ 1,967 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Derivative Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions): As of December 31, 2017 As of March 31, 2017 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 209 $ 5 $ 1 $ 185 $ — $ 5 Forward contracts to sell $ 985 $ 1 $ 33 $ 840 $ 19 $ 3 |
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 December 31, 2017 As of March 31, 2017 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 354 $ 1 $ — $ 87 $ — $ — Forward contracts to sell $ 785 $ 1 $ 7 $ 166 $ — $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2017 and 2016 , was as follows (in millions): Statement of Operations Classification Amount of Gain (Loss) Recognized in the Statement of Operations Three Months Ended Nine Months Ended 2017 2016 2017 2016 Foreign currency forward contracts not designated as hedging instruments Interest and other income (expense), net $ (4 ) $ 49 $ (13 ) $ 50 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended December 31, 2017 and 2016 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 September 30, 2017 $ (3 ) $ (58 ) $ (12 ) $ (73 ) Other comprehensive income (loss) before reclassifications (4 ) (14 ) (12 ) (30 ) Amounts reclassified from accumulated other comprehensive income (loss) — 8 — 8 Total other comprehensive income (loss), net of tax (4 ) (6 ) (12 ) (22 ) Balance as of December 31, 2017 $ (7 ) $ (64 ) $ (24 ) $ (95 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of September 30, 2016 $ 1 $ 31 $ (42 ) $ (10 ) Other comprehensive income (loss) before reclassifications (5 ) 39 (17 ) 17 Amounts reclassified from accumulated other comprehensive income (loss) — (8 ) — (8 ) Total other comprehensive income (loss), net of tax (5 ) 31 (17 ) 9 Balance as of December 31, 2016 $ (4 ) $ 62 $ (59 ) $ (1 ) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended December 31, 2017 and 2016 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, 2017 $ (3 ) $ 32 $ (48 ) $ (19 ) Other comprehensive income (loss) before reclassifications (4 ) (82 ) 34 (52 ) Amounts reclassified from accumulated other comprehensive income (loss) — (14 ) (10 ) (24 ) Total other comprehensive income (loss), net of tax (4 ) (96 ) 24 (76 ) Balance as of December 31, 2017 $ (7 ) $ (64 ) $ (24 ) $ (95 ) 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, 2016 $ 1 $ 14 $ (31 ) $ (16 ) Other comprehensive income (loss) before reclassifications (4 ) 66 (28 ) 34 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (18 ) — (19 ) Total other comprehensive income (loss), net of tax (5 ) 48 (28 ) 15 Balance as of December 31, 2016 $ (4 ) $ 62 $ (59 ) $ (1 ) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2017 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on cash flow hedges from forward contracts Net revenue $ 9 $ (13 ) Research and development (1 ) (1 ) Total, net of tax $ 8 $ (14 ) (Gains) losses on foreign currency translation Interest and other income (expense), net $ — $ (10 ) Total, net of tax $ — $ (10 ) Total net (gain) loss reclassified, net of tax $ 8 $ (24 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2016 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on available-for-sale securities Interest and other income (expense), net $ — $ (1 ) Total, net of tax $ — $ (1 ) (Gains) losses on cash flow hedges from forward contracts Net revenue $ (9 ) $ (18 ) Research and development 1 — Total, net of tax $ (8 ) $ (18 ) Total net (gain) loss reclassified, net of tax $ (8 ) $ (19 ) |
Goodwill And Acquisition-Rela27
Goodwill And Acquisition-Related Intangibles, Net (Tables) | 9 Months Ended |
Dec. 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 nine months ended December 31, 2017 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,075 $ 167 $ 5 $ 2,247 Accumulated impairment (368 ) — — (368 ) Total $ 1,707 $ 167 $ 5 $ 1,879 |
Schedule Of Acquisition-Related Intangibles | Acquisition-related intangibles consisted of the following (in millions): As of December 31, 2017 As of March 31, 2017 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 419 $ (412 ) $ 7 $ 412 $ (412 ) $ — Trade names and trademarks 153 (103 ) 50 106 (98 ) 8 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — In-process research and development 24 — 24 — — — Total $ 686 $ (605 ) $ 81 $ 608 $ (600 ) $ 8 |
Schedule Of Amoritization Of Intangibles | Amortization of intangibles for the three and nine months ended December 31, 2017 and 2016 are classified in the Condensed Consolidated Statement of Operations as follows (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Cost of service and other $ — $ — $ — $ 16 Cost of product 1 18 1 27 Operating expenses 1 2 4 5 Total $ 2 $ 20 $ 5 $ 48 |
Schedule Of Future Amortization Of Acquisition-Related Intangibles | As of December 31, 2017 , future amortization of acquisition-related intangibles that will be recorded in the Condensed Consolidated Statement of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2018 (remaining three months) $ 5 2019 13 2020 6 2021 6 2022 6 2023 6 Thereafter 15 Total $ 57 |
Royalties And Licenses (Tables)
Royalties And Licenses (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Royalties And Licenses [Abstract] | |
Schedule Of Royalty-Related Assets | The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of As of Other current assets $ 20 $ 79 Other assets 34 39 Royalty-related assets $ 54 $ 118 |
Schedule Of Royalty-Related Liabilities | The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of As of Accrued royalties $ 260 $ 165 Other liabilities 80 97 Royalty-related liabilities $ 340 $ 262 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Property And Equipment, Net Schedule | Property and equipment, net, as of December 31, 2017 and March 31, 2017 consisted of (in millions): As of As of Computer, equipment and software $ 724 $ 723 Buildings 336 316 Leasehold improvements 137 126 Equipment, furniture and fixtures, and other 81 82 Land 66 61 Construction in progress 7 7 1,351 1,315 Less: accumulated depreciation (904 ) (881 ) Property and equipment, net $ 447 $ 434 |
Accrued And Other Current Liabilities Schedule | Accrued and other current liabilities as of December 31, 2017 and March 31, 2017 consisted of (in millions): As of As of Other accrued expenses $ 346 $ 210 Accrued compensation and benefits 249 267 Accrued royalties 260 165 Deferred net revenue (other) 215 147 Accrued and other current liabilities $ 1,070 $ 789 |
Financing Arrangement (Tables)
Financing Arrangement (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Debt Instruments [Abstract] | |
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 (6 ) (8 ) Net carrying value of Senior Notes $ 992 $ 990 Fair value of Senior Notes (Level 2) $ 1,059 $ 1,054 |
Schedule Of Interest Expense | The following table summarizes our interest expense recognized for the three and nine months ended December 31, 2017 and 2016 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Amortization of debt discount $ — $ — $ — $ (2 ) Amortization of debt issuance costs — (1 ) (1 ) (2 ) Coupon interest expense (10 ) (10 ) (31 ) (31 ) Other interest expense — (1 ) — (1 ) Total interest expense $ (10 ) $ (12 ) $ (32 ) $ (36 ) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Contractual Obligations | The following table summarizes our minimum contractual obligations as of December 31, 2017 (in millions): Fiscal Years Ending March 31, 2018 (Remaining Total three mos.) 2019 2020 2021 2022 2023 Thereafter Unrecognized commitments Developer/licensor commitments $ 987 $ 26 $ 224 $ 229 $ 205 $ 222 $ 80 $ 1 Marketing commitments 355 9 86 83 77 73 27 — Operating leases 249 8 43 39 39 32 25 63 Senior Notes interest 227 7 41 41 41 20 19 58 Other purchase obligations 109 9 30 27 14 9 6 14 Total unrecognized commitments 1,927 59 424 419 376 356 157 136 Recognized commitments Senior Notes principal and interest 1,013 13 — — 600 — — 400 Licensing obligations 107 6 23 25 26 27 — — Total recognized commitments 1,120 19 23 25 626 27 — 400 Total commitments $ 3,047 $ 78 $ 447 $ 444 $ 1,002 $ 383 $ 157 $ 536 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used in the Black-Scholes valuation model | ESPP Purchase Rights Three Months Ended 2017 2016 Risk-free interest rate 1.13 - 1.24% 0.5 - 0.6% Expected volatility 28 % 29 - 32% Weighted-average volatility 28 % 31 % Expected term 6 - 12 months 6 - 12 months Expected dividends None None |
Schedule Of Stock-Based Compensation Expense By Statement Of Operations | Three Months Ended Nine Months Ended 2017 2016 2017 2016 Cost of revenue $ — $ — $ 2 $ 2 Research and development 38 27 102 81 Marketing and sales 8 8 24 23 General and administrative 17 13 45 38 Stock-based compensation expense $ 63 $ 48 $ 173 $ 144 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2017 2,377 $ 33.35 Granted 3 108.88 Exercised (746 ) 40.58 Forfeited, cancelled or expired (2 ) 45.15 Outstanding as of December 31, 2017 1,632 $ 30.20 5.67 $ 122 Vested and expected to vest 1,632 $ 30.20 5.67 $ 122 Exercisable as of December 31, 2017 1,612 $ 30.24 5.66 $ 121 |
Restricted Stock Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Restricted Stock Rights (in thousands) Weighted- Average Grant Date Fair Values Outstanding as of March 31, 2017 5,153 $ 65.03 Granted 3,661 109.33 Vested (2,370 ) 111.14 Forfeited or cancelled (330 ) 77.44 Outstanding as of December 31, 2017 6,114 $ 73.01 |
Performance 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 | Performance- Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2017 — $ — Granted 796 110.51 Forfeited or cancelled — — Outstanding as of December 31, 2017 796 $ 110.51 |
Market-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2017 1,282 $ 87.37 Granted 706 140.93 Vested (430 ) 76.27 Forfeited or cancelled (216 ) 91.88 Outstanding as of December 31, 2017 1,342 $ 118.35 |
Repurchase Program, Total [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | May 2015 Program May 2017 Program Total (in millions) Shares Amount Shares Amount Shares Amount Three months ended December 31, 2017 — $ — 1.4 $ 150 1.4 $ 150 Nine months ended December 31, 2017 0.3 $ 31 3.8 $ 422 4.1 $ 453 Three months ended December 31, 2016 1.5 $ 127 — $ — 1.5 $ 127 Nine months ended December 31, 2016 5.0 $ 383 — $ — 5.0 $ 383 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic Earnings (Loss) And Diluted Earnings (Loss) 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. Three Months Ended December 31, Nine Months Ended December 31, (In millions, except per share amounts) 2017 2016 2017 2016 Net income (loss) $ (186 ) $ (1 ) $ 436 $ 401 Shares used to compute earnings (loss) per share: Weighted-average common stock outstanding — basic 308 303 309 302 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options — — 3 3 Dilutive potential common shares related to the Convertible Notes (a) — — — 1 Dilutive potential common shares related to the Warrants (a) — — — 8 Weighted-average common stock outstanding — diluted 308 303 312 314 Earnings (loss) per share: Basic $ (0.60 ) $ ( 0.00) $ 1.41 $ 1.33 Diluted $ (0.60 ) $ ( 0.00) $ 1.40 $ 1.28 |
Description Of Business And B34
Description Of Business And Basis Of Presentation Fiscal Period (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fiscal Period | ||||
Current and Prior Years Fiscal Period (in weeks) | 52 | 52 | ||
Current and Prior Years Fiscal Quarter Period (in weeks) | 13 | 13 | 39 | 39 |
Minimum | ||||
Fiscal Period | ||||
Fiscal Year | 52 | |||
Maximum | ||||
Fiscal Period | ||||
Fiscal Year | 53 |
Description Of Business And B35
Description Of Business And Basis Of Presentation Description of Business and Basis of Presentation (Impact of Recently Adopted Accounting Standards) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2017 | Dec. 31, 2017 | |
Accounting Standards Update 2016-09 [Member] | ||
Change in Accounting Estimate [Line Items] | ||
Cumulative Effect on Retained Earnings, Net of Tax | $ 8 | |
Minimum | ||
Change in Accounting Estimate [Line Items] | ||
Cumulative Effect on Retained Earnings, before Tax | $ 600 | |
Maximum | ||
Change in Accounting Estimate [Line Items] | ||
Cumulative Effect on Retained Earnings, before Tax | $ 800 |
Description Of Business And B36
Description Of Business And Basis Of Presentation Accounting Standard Cash Flow Reclassification (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash paid to taxing authorities for shares withheld from employees | $ 112 | $ 112 |
Increase to net cash provided by Operating Activities and net cash used in Financing Activities | 152 | 165 |
Increase to net cash provided by Operating Activities [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 53 | |
Increase to net cash used in Financing Activities [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash paid to taxing authorities for shares withheld from employees | 112 | $ 112 |
Provision for income taxes [Member] | Increase to net cash provided by Operating Activities [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 40 |
(Fair Value Of Assets And Liabi
(Fair Value Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | $ 3,299 | $ 2,778 | |
Total liabilities at fair value | 174 | 17 | |
Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | 1,318 | 1,106 | |
Total liabilities at fair value | 11 | 9 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | 1,981 | 1,672 | |
Total liabilities at fair value | 41 | 8 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Total assets at fair value | 0 | 0 | |
Total liabilities at fair value | 122 | 0 | |
Short-term investments | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 446 | ||
Short-term investments | Significant Other Observable Inputs (Level 2) | Foreign Government Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 113 | ||
Short-term investments | Significant Other Observable Inputs (Level 2) | Asset-backed Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Asset-backed securities | 134 | 135 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Certificates of Deposit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 22 | ||
Short-Term Investments And Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 460 | ||
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 1,258 | 963 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | U.S. agency securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 118 | 172 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Commercial paper | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 341 | 270 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Foreign Government Debt Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Available-for-sale of securities | 100 | ||
Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Bank Time Deposits [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Cash equivalents | 299 | 233 | |
Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Cash equivalents | 563 | 405 | |
Other Current Assets and Other Assets [Domain] | Significant Other Observable Inputs (Level 2) | Foreign currency derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Foreign currency derivatives, assets | 8 | 19 | |
Other assets | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred compensation plan assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Deferred compensation plan assets | [1] | 10 | 8 |
Accrued and Other Current Liabilities and Other Liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency derivatives | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Foreign currency derivatives, liabilities | 41 | 8 | |
Other liabilities | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred Compensation Plan Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Fair value, Deferred compensation plan assets | [1] | 11 | 9 |
Other liabilities | Fair Value, Inputs, Level 3 [Member] | Contingent consideration | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Accrued Liabilities, Fair Value Disclosure | $ 122 | $ 0 | |
[1] | The Deferred Compensation Plan assets consist of various mutual funds. See Note 13 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017, for additional information regarding our Deferred Compensation Plan. |
(Fair Value Measurements Using
(Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 |
Other liabilities | Fair Value, Inputs, Level 3 [Member] | Contingent consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Accrued Liabilities, Fair Value Disclosure | $ 122 | $ 0 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | |
Financial Instruments | |||||
Cash and Cash Equivalents, at Carrying Value | $ 2,566 | $ 2,565 | [1] | $ 2,483 | $ 2,493 |
[1] | Derived from audited Consolidated Financial Statements. |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Of Short-Term Investments) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2017 | ||
Financial Instruments | |||
Fair Value | $ 2,318 | $ 1,967 | [1] |
Short-term investments | |||
Financial Instruments | |||
Cost or Amortized Cost | 2,326 | 1,970 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (8) | (3) | |
Fair Value | 2,318 | 1,967 | |
Short-term investments | Corporate bonds | |||
Financial Instruments | |||
Cost or Amortized Cost | 1,212 | 944 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (3) | (1) | |
Fair Value | 1,209 | 943 | |
Short-term investments | U.S. Treasury securities | |||
Financial Instruments | |||
Cost or Amortized Cost | 448 | 414 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (2) | (1) | |
Fair Value | 446 | 413 | |
Short-term investments | U.S. agency securities | |||
Financial Instruments | |||
Cost or Amortized Cost | 117 | 152 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (2) | (1) | |
Fair Value | 115 | 151 | |
Short-term investments | Commercial paper | |||
Financial Instruments | |||
Cost or Amortized Cost | 294 | 212 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 294 | 212 | |
Short-term investments | Foreign Government Debt Securities [Member] | |||
Financial Instruments | |||
Cost or Amortized Cost | 98 | 113 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 98 | 113 | |
Short-term investments | Asset-backed Securities [Member] | |||
Financial Instruments | |||
Cost or Amortized Cost | 135 | 135 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1) | 0 | |
Fair Value | 134 | 135 | |
Short-term investments | Certificates of Deposit [Member] | |||
Financial Instruments | |||
Cost or Amortized Cost | 22 | 0 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | $ 22 | $ 0 | |
[1] | Derived from audited Consolidated Financial Statements. |
Financial Instruments (Fair V41
Financial Instruments (Fair Value Of Short-Term Investments By Stated Maturity Date Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | |
Financial Instruments | |||
Short-term investments, Fair Value | $ 2,318 | $ 1,967 | [1] |
Short-term investments | |||
Financial Instruments | |||
Due in 1 year or less, Amortized Cost | 1,598 | 1,237 | |
Due in 1 year or less, Fair Value | 1,596 | 1,236 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 725 | 721 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 719 | 719 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 3 | 12 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 3 | 12 | |
Short-term investments, Amortized Cost | 2,326 | 1,970 | |
Short-term investments, Fair Value | $ 2,318 | $ 1,967 | |
[1] | Derived from audited Consolidated Financial Statements. |
Derivative Financial Instrume42
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flow Hedging [Member] | ||||
Derivative | ||||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ (8) | $ 8 | $ 14 | $ 18 |
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | $ 7 | |||
Designated as Hedging Instrument [Member] | ||||
Derivative | ||||
Maximum Remaining Maturity of Foreign Currency Derivatives | 18 months | |||
Not Designated as Hedging Instrument [Member] | ||||
Derivative | ||||
Maximum Remaining Maturity of Foreign Currency Derivatives | 3 months |
Derivative Financial Instrume43
Derivative Financial Instruments Gross Notional Amounts and Fair Values for Currency Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 |
Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | $ 5 | $ 0 |
Fair value of foreign currency contracts outstanding, Liabilities | 1 | 5 |
Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | 1 | 19 |
Fair value of foreign currency contracts outstanding, Liabilities | 33 | 3 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 209 | 185 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 985 | 840 |
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 | 354 | 87 |
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 | 785 | 166 |
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 | 1 | 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 | 1 | 0 |
Derivative Liability, Current | $ 7 | $ 0 |
Location of Income (Expense) Re
Location of Income (Expense) Recognized in Income on Derivative, Non-Designated Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and Other Income (Expense), net | ||||
Derivative | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (4) | $ 49 | $ (13) | $ 50 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (73) | $ (10) | $ (19) | [1] | $ (16) |
Other comprehensive income (loss) before reclassifications | (30) | 17 | (52) | 34 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 8 | (8) | (24) | (19) | |
Total other comprehensive income (loss), net of tax | (22) | 9 | (76) | 15 | |
Ending balance | (95) | (1) | (95) | (1) | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (3) | 1 | (3) | 1 | |
Other comprehensive income (loss) before reclassifications | (4) | (5) | (4) | (4) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | (1) | |
Total other comprehensive income (loss), net of tax | (4) | (5) | (4) | (5) | |
Ending balance | (7) | (4) | (7) | (4) | |
Unrealized Gains (Losses) on Derivative Instruments [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (58) | 31 | 32 | 14 | |
Other comprehensive income (loss) before reclassifications | (14) | 39 | (82) | 66 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 8 | (8) | (14) | (18) | |
Total other comprehensive income (loss), net of tax | (6) | 31 | (96) | 48 | |
Ending balance | (64) | 62 | (64) | 62 | |
Foreign Currency Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (12) | (42) | (48) | (31) | |
Other comprehensive income (loss) before reclassifications | (12) | (17) | 34 | (28) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | (10) | 0 | |
Total other comprehensive income (loss), net of tax | (12) | (17) | 24 | (28) | |
Ending balance | $ (24) | $ (59) | $ (24) | $ (59) | |
[1] | Derived from audited Consolidated Financial Statements. |
Effects on net income of amount
Effects on net income of amounts reclassified from accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 8 | $ (8) | $ (24) | $ (19) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | (1) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Interest Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (1) | ||
Unrealized Gains (Losses) on Derivative Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 8 | (8) | (14) | (18) |
Unrealized Gains (Losses) on Derivative Instruments [Member] | Sales Revenue, Net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 9 | (9) | (13) | (18) |
Unrealized Gains (Losses) on Derivative Instruments [Member] | Research And Development [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1) | 1 | (1) | 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | $ 0 | (10) | $ 0 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Interest Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 0 | $ (10) |
Business Combinations (Details)
Business Combinations (Details) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |||
Business Acquisition, Date of Acquisition Agreement | Dec. 1, 2017 | ||
Total Purchase Price | $ 273,000,000 | ||
Payments to Acquire Businesses, Gross | 151,000,000 | ||
Business Combination, Contingent Consideration, Liability | 122,000,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 167,000,000 | ||
Intangible Assets Acquired | 78,000,000 | ||
Net Tangible Assets Acquired | 28,000,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 140,000,000 | ||
Number of Businesses Acquired | 0 | 0 | |
Restricted Stock Units (RSUs) [Member] | |||
Business Acquisition [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 459,000,000 | ||
Restricted Stock Units (RSUs) [Member] | Respawn Entertainment, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 167,000,000 |
Goodwill And Acquisition-Rela48
Goodwill And Acquisition-Related Intangibles, Net (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 78 | |
Minimum | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 14 years | |
Weighted Average | ||
Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 8 months | 1 year 5 months |
Trademarks [Member] | ||
Finite-Lived Intangible Assets | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 47 | |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 24 | |
Developed Technology Rights | ||
Finite-Lived Intangible Assets | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 7 | |
Respawn Entertainment, LLC [Member] | Weighted Average | ||
Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 1 month |
Goodwill And Acquisition-Rela49
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Changes In The Carrying Amount Of Goodwill) (Details) $ in Millions | 9 Months Ended | |
Dec. 31, 2017USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning balance | $ 2,075 | |
Accumulated impairment, beginning balance | (368) | |
Goodwill, Net, Beginning balance | 1,707 | [1] |
Goodwill acquired | 167 | |
Effects of foreign currency translation | 5 | |
Goodwill, Gross, Ending balance | 2,247 | |
Accumulated impairment, ending balance | (368) | |
Goodwill, Net, Ending balance | $ 1,879 | |
[1] | Derived from audited Consolidated Financial Statements. |
Goodwill And Acquisition-Rela50
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets | |||
Gross carrying amount | $ 686 | $ 608 | |
Accumulated amortization | (605) | (600) | |
Acquisition-related intangibles, net | 81 | 8 | [1] |
Developed And Core Technology | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 419 | 412 | |
Accumulated amortization | (412) | (412) | |
Acquisition-related intangibles, net | 7 | 0 | |
Trade Names And Trademarks | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 153 | 106 | |
Accumulated amortization | (103) | (98) | |
Acquisition-related intangibles, net | 50 | 8 | |
Registered User Base And Other Intangibles | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 5 | 5 | |
Accumulated amortization | (5) | (5) | |
Acquisition-related intangibles, net | 0 | 0 | |
Carrier Contracts And Related | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 85 | 85 | |
Accumulated amortization | (85) | (85) | |
Acquisition-related intangibles, net | 0 | 0 | |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 24 | 0 | |
Accumulated amortization | 0 | 0 | |
Acquisition-related intangibles, net | $ 24 | $ 0 | |
[1] | Derived from audited Consolidated Financial Statements. |
Goodwill And Acquisition-Rela51
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 1 | $ 2 | $ 4 | $ 5 |
Cost of service and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 0 | 0 | 0 | 16 |
Cost of product | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 1 | 18 | 1 | 27 |
Operating expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 1 | 2 | 4 | 5 |
Total amortization | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 2 | $ 20 | $ 5 | $ 48 |
Goodwill And Acquisition-Rela52
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Future Amortization Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | [1] |
Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 13 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 6 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 6 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 6 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 6 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 15 | ||
Finite-Lived Intangible Assets, Net | 81 | $ 8 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year through after Year Five [Member] | |||
Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Net | $ 57 | ||
[1] | Derived from audited Consolidated Financial Statements. |
Royalties And Licenses (Narrati
Royalties And Licenses (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | |
Royalties And Licenses | |||
Royalty-Based Asset Impairment Charge and Loss On Previously Minimum Unrecognized Royalty-Based Commitment | $ 22 | $ 22 | |
Developer/Licensor Commitments - Royalty Bearing Only | |||
Royalties And Licenses | |||
Unrecorded Unconditional Purchase Obligation | $ 987 | ||
Research And Development [Member] | |||
Royalties And Licenses | |||
Asset Impairment Charges | 12 | 12 | |
Cost of service revenue [Member] | |||
Royalties And Licenses | |||
Business Exit Costs | $ 10 | $ 10 |
Royalties And Licenses (Schedul
Royalties And Licenses (Schedule Of Royalty-Related Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 |
Royalties and Licenses | ||
Royalty-related assets | $ 54 | $ 118 |
Other Current Assets | ||
Royalties and Licenses | ||
Royalty-related assets | 20 | 79 |
Other assets | ||
Royalties and Licenses | ||
Royalty-related assets | $ 34 | $ 39 |
Royalties And Licenses (Sched55
Royalties And Licenses (Schedule Of Royalty-Related Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 |
Royalty Related Liabilities | ||
Royalty-related liabilities | $ 340 | $ 262 |
Accrued royalties | ||
Royalty Related Liabilities | ||
Royalty-related liabilities | 260 | 165 |
Other liabilities | ||
Royalty Related Liabilities | ||
Royalty-related liabilities | $ 80 | $ 97 |
Balance Sheet Details (Narrativ
Balance Sheet Details (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | [1] | |
Balance Sheet Related Disclosures [Abstract] | ||||||
Depreciation expense | $ 30 | $ 29 | $ 89 | $ 86 | ||
Deferred Revenue, Current | $ 1,946 | $ 1,946 | $ 1,539 | |||
[1] | Derived from audited Consolidated Financial Statements. |
Balance Sheet Details (Property
Balance Sheet Details (Property And Equipment, Net Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | |
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | $ 1,351 | $ 1,315 | |
Less: accumulated depreciation | (904) | (881) | |
Property and equipment, net | 447 | 434 | [1] |
Computer, equipment and software | |||
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 724 | 723 | |
Buildings | |||
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 336 | 316 | |
Leasehold improvements | |||
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 137 | 126 | |
Equipment, furniture and fixtures, and other | |||
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 81 | 82 | |
Land | |||
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | 66 | 61 | |
Construction in progress | |||
Property and Equipment, Net [Line Items] | |||
Property and equipment, gross | $ 7 | $ 7 | |
[1] | Derived from audited Consolidated Financial Statements. |
Balance Sheet Details (Accrued
Balance Sheet Details (Accrued And Other Current Liabilities Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |||
Other accrued expenses | $ 346 | $ 210 | |
Accrued compensation and benefits | 249 | 267 | |
Accrued royalties | 260 | 165 | |
Deferred net revenue (other) | 215 | 147 | |
Accrued and other current liabilities | $ 1,070 | $ 789 | [1] |
[1] | Derived from audited Consolidated Financial Statements. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Footnote Disclosure [Line Items] | ||||||
Effective tax rates | (1062.50%) | 83.30% | 37.30% | 18.80% | ||
Income Tax Expense (Benefit) | $ 170 | $ (5) | $ 259 | $ 93 | ||
Maximum | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Amount of unrecognized tax benefits for which it is reasonably possible that there will be a reduction within the next 12 months | $ 45 | $ 45 | ||||
Increase to net cash provided by Operating Activities [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 53 | |||||
Excluding excess tax benefit [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Effective tax rates | (1075.00%) | 43.60% | ||||
Provision for income taxes [Member] | Increase to net cash provided by Operating Activities [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 40 | |||||
Excluding U.S. Tax Cuts and Jobs Act impact [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Effective tax rates | 37.50% | 11.90% | ||||
Total U.S. Tax Cuts and Jobs Act impact [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Income Tax Expense (Benefit) | $ 176 | $ 176 | ||||
Transition tax [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Income Tax Expense (Benefit) | $ 151 | $ 151 | ||||
Subsequent Event [Member] | Including U.S. Tax Cuts and Jobs Act impact [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
United States statutory tax rate | 21.00% | 31.55% |
Financing Arrangement (Senior N
Financing Arrangement (Senior Notes) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Feb. 29, 2016 | Dec. 31, 2017 | Mar. 31, 2017 | Feb. 24, 2016 | ||
Debt Instrument [Line Items] | |||||
Senior Notes, Noncurrent | $ 992 | $ 990 | [1] | ||
Proceeds from Issuance of Senior Long-term Debt | $ 989 | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 3.94% | ||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 3 years 2 months | ||||
Long-term Debt | $ 600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||||
Debt Instrument, Maturity Date | Mar. 1, 2021 | ||||
2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 4.97% | ||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 8 years 2 months | ||||
Long-term Debt | $ 400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | ||||
Debt Instrument, Maturity Date | Mar. 1, 2026 | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 1,000 | ||||
Debt Instrument, Unamortized Discount (Premium), Net | $ (2) | (2) | (2) | ||
Debt Issuance Costs, Noncurrent, Net | (6) | (8) | $ (9) | ||
Debt Instrument, Fair Value Disclosure | $ 1,059 | $ 1,054 | |||
Senior Notes, Frequency of Periodic Payment | semiannually | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Change of control repurchase event | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||
[1] | Derived from audited Consolidated Financial Statements. |
Financing Arrangement (Line of
Financing Arrangement (Line of Credit Facility) (Details) - Revolving Credit Facility [Member] $ in Millions | 9 Months Ended |
Dec. 31, 2017USD ($) | |
Line of Credit Facility [Line Items] | |
Credit Facility, Maximum Borrowing Capacity | $ 500 |
Option To Request Additional Commitments On Credit Facility | 250 |
Debt issuance costs | $ 2 |
Credit Facility, Initiation Date | Mar. 19, 2015 |
Credit Facility, Expiration Date | Mar. 19, 2020 |
Line of Credit Facility Term | 5 years |
Financing Arrangement (Schedule
Financing Arrangement (Schedule Of Interest Expense Related To Notes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Debt Instruments [Abstract] | |||||
Amortization of debt discount | $ 0 | $ 0 | $ 0 | $ (2) | |
Amortization of debt issuance costs | 0 | (1) | (1) | (2) | |
Coupon interest expense | (10) | (10) | (31) | (31) | |
Interest Expense, Other | 0 | (1) | (1) | $ 0 | |
Total interest expense | $ (10) | $ (12) | $ (32) | $ (36) |
Commitments And Contingencies63
Commitments And Contingencies (Narrative) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | |
Liability for Uncertainty in Income Taxes, Noncurrent | $ 98 |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 140 |
Business Combination, Contingent Consideration, Liability | 122 |
Unrecorded Unconditional Purchase Obligation Payable in Common Stock Per Year | Maximum | |
Loss Contingencies [Line Items] | |
Unrecorded Unconditional Purchase Obligation | 10 |
Unrecorded Unconditional Purchase Obligation Payable in Common Stock | Maximum | |
Loss Contingencies [Line Items] | |
Unrecorded Unconditional Purchase Obligation | 32 |
Transitional impacts of the U.S. Tax Cuts and Jobs Act [Member] | |
Loss Contingencies [Line Items] | |
Accrued Income Taxes, Noncurrent | 96 |
Accrued Income Taxes | 104 |
Accrued Income Taxes, Current | $ 8 |
Commitments And Contingencies64
Commitments And Contingencies (Minimum Contractual Obligations) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Long Term Purchase Commitments | |
TotalUnconditionalPurchaseObligationBalanceSheetAmount | $ 3,047 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountRemainingForCurrentFiscalYear | 78 |
Total Unconditional PurchaseObligationBalanceSheetAmountOneYearAfterFiscalYearEnd | 447 |
Total Unconditional Purchase Obligation Balance Sheet Amount Two Years After Fiscal Year End | 444 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThreeYearsAfterFiscalYearEnd | 1,002 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountFourYearsAfterFiscalYearEnd | 383 |
Total Unconditional Purchase Obligation Balance Sheet Amount Five Years After Fiscal Year End | 157 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 536 |
Developer/Licensor Commitments - Royalty and Non-Royalty Bearing | |
Long Term Purchase Commitments | |
Unrecorded Total | 987 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 26 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 224 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 229 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 205 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 222 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 80 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 1 |
Marketing | |
Long Term Purchase Commitments | |
Unrecorded Total | 355 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 9 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 86 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 83 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 77 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 73 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 27 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 |
Operating leases | |
Long Term Purchase Commitments | |
Unrecorded Total | 249 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 8 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 43 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 39 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 39 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 32 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 25 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 63 |
Senior Notes Interest | |
Long Term Purchase Commitments | |
Unrecorded Total | 227 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 7 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 41 |
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 | 20 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 58 |
Other unrecorded purchase obligations | |
Long Term Purchase Commitments | |
Unrecorded Total | 109 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 9 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 30 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 27 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 14 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 9 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 6 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 14 |
Total Unrecorded Unconditional Purchase Obligation [Domain] | |
Long Term Purchase Commitments | |
Unrecorded Total | 1,927 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 59 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 424 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 419 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 376 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 356 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 157 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 136 |
Total Recorded Unconditional Purchase Obligation [Domain] | |
Long Term Purchase Commitments | |
Recorded Total | 1,120 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 19 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 626 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 27 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 400 |
Senior Notes and Interest | |
Long Term Purchase Commitments | |
Recorded Total | 1,013 |
Senior Notes Interest | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 13 |
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 Total | 107 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 6 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 26 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 27 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | May 08, 2017 | May 04, 2015 | |
Market-Based Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 58 | $ 58 | |||||
Market-Based Restricted Stock Units [Member] | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 0.00% | 0.00% | |||||
Market-Based Restricted Stock Units [Member] | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 200.00% | 200.00% | |||||
Performance Based Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 39 | $ 39 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 103.00% | ||||||
Performance Based Restricted Stock Units [Member] | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 0.00% | 0.00% | |||||
Performance Based Restricted Stock Units [Member] | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 200.00% | 200.00% | |||||
Restricted Stock Rights [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 556 | $ 556 | |||||
Weighted-average service period | 2 years 3 months | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 459 | $ 459 | |||||
May 2015 Repurchase Program [Member] [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amount of common stock authorized for repurchase | $ 1,000 | ||||||
Stock Repurchased and Retired During Period, Shares | 0 | 0.3 | 1.5 | 0.3 | 5 | ||
Repurchase and retirement of common stock | $ 0 | $ 31 | $ 127 | $ 31 | $ 383 | ||
May 2017 Repurchase Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Amount of common stock authorized for repurchase | $ 1,200 | ||||||
Stock Repurchased and Retired During Period, Shares | 1.4 | 3.8 | |||||
Repurchase and retirement of common stock | $ 150 | $ 422 | |||||
Repurchase Program, Total [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Repurchased and Retired During Period, Shares | 1.4 | 1.5 | 4.1 | 5 | |||
Repurchase and retirement of common stock | $ 150 | $ 127 | $ 453 | $ 383 | |||
Stock-based compensation expense [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Deferred Income Tax Expense (Benefit) | $ 4 | $ 10 | $ 26 | $ 28 | |||
Accounting Standards Update 2016-09 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 8 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Assumptions Used In Black-Scholes Model) (Details) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends | 0.00% | 0.00% |
Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Volatility Rate | 28.00% | 31.00% |
Minimum | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 1.13% | 0.50% |
Expected volatility, minimum | 28.00% | 29.00% |
Expected Term | 6 months | 6 months |
Maximum | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate, maximum | 1.24% | 0.60% |
Expected volatility, maximum | 28.00% | 32.00% |
Expected Term | 12 months | 12 months |
Stock-Based Compensation (Sch67
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 63 | $ 48 | $ 173 | $ 144 |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 0 | 0 | 2 | 2 |
Research And Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 38 | 27 | 102 | 81 |
Marketing and Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 8 | 8 | 24 | 23 |
General And Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 17 | $ 13 | $ 45 | $ 38 |
Stock-Based Compensation (Sch68
Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options, Outstanding, Beginning Balance | shares | 2,377 |
Options, Granted | shares | 3 |
Options, Exercised | shares | (746) |
Options, Forfeited, cancelled or expired | shares | (2) |
Options, Outstanding, Ending Balance | shares | 1,632 |
Options, Vested and expected to vest | shares | 1,632 |
Options, Exercisable | shares | 1,612 |
Weighted-average exercise price of options outstanding, beginning balance | $ / shares | $ 33.35 |
Weighted-average exercise price of options granted during period | $ / shares | 108.88 |
Weighted-average exercise price of options exercised during the period | $ / shares | 40.58 |
Weighted-average exercise price of options forfeited, cancelled or expired during the period | $ / shares | 45.15 |
Weighted-average exercise price of options outstanding, ending balance | $ / shares | 30.20 |
Weighted-average exercise price of options vested and expected to vest | $ / shares | 30.20 |
Weighted-average exercise price of options exercisable | $ / shares | $ 30.24 |
Weighted-average remaining contractual term of options outstanding | 5 years 8 months 1 day |
Weighted-average remaining contractual term of options vested and expected to vest | 5 years 8 months 1 day |
Weighted-average remaining contractual term of options exercisable | 5 years 7 months 28 days |
Aggregate intrinsic value of options outstanding | $ | $ 122 |
Aggregate intrinsic value of options vested and expected to vest | $ | 122 |
Aggregate intrinsic value of options exercisable | $ | $ 121 |
Stock-Based Compensation (Sch69
Stock-Based Compensation (Schedule Of Restricted Stock Rights Activity, Excluding Performance-Based Activity) (Details) - Restricted Stock Rights [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding balance | shares | 5,153 |
Granted | shares | 3,661 |
Vested | shares | (2,370) |
Forfeited or cancelled | shares | (330) |
Outstanding balance | shares | 6,114 |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 65.03 |
Weighted-average grant date fair value, vested during period | $ / shares | 109.33 |
Weighted-average grant date fair value, vested during period | $ / shares | 111.14 |
Weighted-average grant date fair value, forfeited or cancelled during period | $ / shares | 77.44 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 73.01 |
Stock-Based Compensation (Sch70
Stock-Based Compensation (Schedule Of Performance-Based Restricted Stock Unit Activity) (Details) - Restricted Stock Rights [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 796 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding balance | shares | 0 |
Forfeited or cancelled | shares | 0 |
Outstanding balance | shares | 796 |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 0 |
Weighted-average grant date fair value, vested during period | $ / shares | 110.51 |
Weighted-average grant date fair value, forfeited or cancelled during period | $ / shares | 0 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 110.51 |
Stock-Based Compensation (Sch71
Stock-Based Compensation (Schedule Of Market-Based Restricted Stock Unit Activity) (Details) - Market-Based Restricted Stock Units [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding balance | shares | 1,282 |
Granted | shares | 706 |
Vested | shares | (430) |
Forfeited or cancelled | shares | (216) |
Outstanding balance | shares | 1,342 |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 87.37 |
Weighted-average grant date fair values of market-based restricted stock rights granted | $ / shares | 140.93 |
Weighted-average grant date fair value, vested during period | $ / shares | 76.27 |
Weighted-average grant date fair value, forfeited or cancelled during period | $ / shares | 91.88 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 118.35 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | May 08, 2017 | May 04, 2015 | |
May 2015 Repurchase Program [Member] [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 31 | $ 127 | $ 31 | $ 383 | ||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||||
Stock Repurchased and Retired During Period, Shares | 0 | 0.3 | 1.5 | 0.3 | 5 | ||
May 2017 Repurchase Program [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 150 | $ 422 | |||||
Stock Repurchase Program, Authorized Amount | $ 1,200 | ||||||
Stock Repurchased and Retired During Period, Shares | 1.4 | 3.8 | |||||
Repurchase Program, Total | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ 150 | $ 127 | $ 453 | $ 383 | |||
Stock Repurchased and Retired During Period, Shares | 1.4 | 1.5 | 4.1 | 5 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share, Amount | 3 | 3 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share, Amount | 7 |
Earnings (Loss) Per Share Earni
Earnings (Loss) Per Share Earnings (Loss) Per Share (Computation Of Basic Earnings And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share | ||||
Net income (loss) | $ (186) | $ (1) | $ 436 | $ 401 |
Weighted Average Number of Shares Outstanding, Basic | 308 | 303 | 309 | 302 |
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options | 0 | 0 | 3 | 3 |
Weighted Average Number of Shares Outstanding, Diluted | 308 | 303 | 312 | 314 |
Basic | $ (0.60) | $ 0 | $ 1.41 | $ 1.33 |
Diluted | $ (0.60) | $ 0 | $ 1.40 | $ 1.28 |
Convertible Debt | ||||
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share | ||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 0 | 0 | 0 | 1 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share | ||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 0 | 0 | 0 | 8 |