Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Jan. 31, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | TAKE TWO INTERACTIVE SOFTWARE INC | |
Entity Central Index Key | 946,581 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 114,398,287 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 774,455 | $ 943,396 |
Short-term investments | 547,329 | 448,932 |
Restricted cash | 374,806 | 337,818 |
Accounts receivable, net of allowances of $67,685 and $66,483 at December 31, 2017 and March 31, 2017, respectively | 425,931 | 219,558 |
Inventory | 30,857 | 16,323 |
Software development costs and licenses | 39,369 | 41,721 |
Deferred cost of goods sold | 164,112 | 127,901 |
Prepaid expenses and other | 90,865 | 59,593 |
Total current assets | 2,447,724 | 2,195,242 |
Fixed assets, net | 96,570 | 67,300 |
Software development costs and licenses, net of current portion | 586,866 | 381,910 |
Goodwill | 389,728 | 359,115 |
Other intangibles, net | 108,112 | 110,262 |
Other assets | 53,610 | 35,325 |
Total assets | 3,682,610 | 3,149,154 |
Current liabilities: | ||
Accounts payable | 45,998 | 31,892 |
Accrued expenses and other current liabilities | 907,345 | 750,875 |
Deferred revenue | 1,118,774 | 903,125 |
Total current liabilities | 2,072,117 | 1,685,892 |
Long-term debt | 13,838 | 251,929 |
Non-current deferred revenue | 44,501 | 10,406 |
Other long-term liabilities | 151,334 | 197,199 |
Total liabilities | 2,281,790 | 2,145,426 |
Commitments and Contingencies (See Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 5,000 shares authorized; no shares issued and outstanding at December 31, 2017 and March 31, 2017 | 0 | 0 |
Common stock, $.01 par value, 200,000 shares authorized; 132,581 and 119,813 shares issued and 114,325 and 102,621 outstanding at December 31, 2017 and March 31, 2017, respectively | 1,326 | 1,198 |
Additional paid-in capital | 1,861,424 | 1,452,754 |
Treasury stock, at cost; 18,256 common shares at December 31, 2017 and 17,192 at March 31, 2017 | (413,524) | (303,388) |
Accumulated deficit | (17,311) | (99,694) |
Accumulated other comprehensive loss | (31,095) | (47,142) |
Total stockholders' equity | 1,400,820 | 1,003,728 |
Total stockholders' equity | $ 3,682,610 | $ 3,149,154 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances (in dollars) | $ 67,685 | $ 66,483 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 132,581,000 | 119,813,000 |
Common stock, shares outstanding | 114,325,000 | 102,621,000 |
Treasury stock, shares | 18,256,000 | 17,192,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||||
Net revenue | $ 480,840 | $ 476,473 | $ 1,342,618 | $ 1,208,192 |
Cost of goods sold | 267,983 | 311,074 | 709,100 | 708,059 |
Gross profit | 212,857 | 165,399 | 633,518 | 500,133 |
Selling and marketing | 79,513 | 95,820 | 208,641 | 247,141 |
General and administrative | 65,951 | 52,939 | 187,378 | 149,367 |
Research and development | 49,977 | 37,589 | 142,245 | 101,494 |
Depreciation and amortization | 7,864 | 7,460 | 34,490 | 22,329 |
Business reorganization | 700 | 0 | 13,012 | 0 |
Total operating expenses | 204,005 | 193,808 | 585,766 | 520,331 |
Income (loss) from operations | 8,852 | (28,409) | 47,752 | (20,198) |
Interest and other, net | 3,374 | (3,715) | (2,403) | (15,298) |
Gain on long-term investments, net | 0 | 0 | 0 | 1,350 |
Income (loss) before income taxes | 12,226 | (32,124) | 45,349 | (34,146) |
Benefit from income taxes | (12,914) | (2,282) | (37,331) | (2,169) |
Net income (loss) | $ 25,140 | $ (29,842) | $ 82,680 | $ (31,977) |
Earnings (loss) per share: | ||||
Basic earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.33) | $ 0.76 | $ (0.37) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.21 | $ (0.33) | $ 0.74 | $ (0.37) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 25,140 | $ (29,842) | $ 82,680 | $ (31,977) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (385) | (5,040) | 23,391 | (10,067) |
Cash flow hedges: | ||||
Change in fair value of effective cash flow hedge | (1,423) | 0 | (6,639) | 0 |
Unrealized loss, net on available-for-sale securities, net of taxes | (816) | (264) | (705) | (221) |
Reclassification to earnings for realized losses, net on available for sale securities, net of taxes | 0 | 0 | 0 | 9 |
Change in fair value of available for sale securities | (816) | (264) | (705) | (212) |
Other comprehensive (loss) income | (2,624) | (5,304) | 16,047 | (10,279) |
Comprehensive income (loss) | $ 22,516 | $ (35,146) | $ 98,727 | $ (42,256) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net income (loss) | $ 82,680 | $ (31,977) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization and impairment of software development costs and licenses | 62,235 | 130,019 |
Depreciation | 23,233 | 22,329 |
Amortization and impairment of intellectual property | 26,470 | 1,398 |
Impairment of in-process research and development | 11,257 | 0 |
Stock-based compensation | 96,111 | 55,421 |
Amortization of discount on Convertible Notes | 15,424 | 17,870 |
Gain on conversions of Convertible Notes | (4,855) | 0 |
Amortization of debt issuance costs | 554 | 1,078 |
Other, net | 3,432 | (3,604) |
Changes in assets and liabilities: | ||
Restricted cash | (36,988) | (17,372) |
Accounts receivable | (206,084) | (160,095) |
Inventory | (12,976) | (15,876) |
Software development costs and licenses | (186,373) | (194,422) |
Prepaid expenses and other assets | (39,133) | (31,460) |
Deferred revenue | 238,590 | 302,728 |
Deferred cost of goods sold | (33,578) | (66,502) |
Accounts payable, accrued expenses and other liabilities | 164,086 | 230,067 |
Net cash provided by operating activities | 204,085 | 239,602 |
Investing activities: | ||
Change in bank time deposits | 10,000 | 66,841 |
Proceeds from available-for-sale securities | 172,925 | 101,357 |
Purchases of available-for-sale securities | (282,596) | (104,357) |
Purchases of fixed assets | (47,478) | (14,369) |
Asset acquisition | (25,965) | 0 |
Proceeds from sale of long-term investment | 0 | 1,350 |
Proceeds from sale of long-term investment | 0 | (1,885) |
Business acquisition | (9,401) | (750) |
Net cash (used in) provided by investing activities | (182,515) | 48,187 |
Financing activities: | ||
Excess tax benefit from stock-based compensation | 0 | 1,499 |
Tax payment related to net share settlements on restricted stock awards | (94,930) | (36,734) |
Repurchase of Common Stock | (110,136) | 0 |
Net cash used in financing activities | (205,066) | (35,235) |
Effects of foreign currency exchange rates on cash and cash equivalents | 14,555 | (11,866) |
Net change in cash and cash equivalents | (168,941) | 240,688 |
Cash and cash equivalents, beginning of year | 943,396 | 798,742 |
Cash and cash equivalents, end of period | $ 774,455 | $ 1,039,430 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Take-Two Interactive Software, Inc. (the "Company," "we," "us," or similar pronouns) was incorporated in the state of Delaware in 1993. We are a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through our two wholly-owned labels Rockstar Games and 2K, as well as our new Private Division label and Social Point, a leading developer of mobile games. Our products are designed for console systems and personal computers, including smart phones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services. Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries and, in the opinion of management, reflect all normal and recurring adjustments necessary for the fair presentation of our financial position, results of operations and cash flows. Interim results may not be indicative of the results that may be expected for the full fiscal year. All inter-company accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under generally accepted accounting principles in the United States, interim accounting for certain expenses, including income taxes, are based on full year assumptions when appropriate. Actual results could differ materially from those estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation. Revenue Recognition As part of our on-going assessment of estimated service periods, in June 2017, we extended Grand Theft Auto V's estimated service period from 41 through 50 months, or through December 2018. We expect this change in estimated service period to have a material impact on our Consolidated Financial Statements for fiscal 2018. The impact of this change is shown in the table below. Three Months Ended December 31, Nine Months Ended December 31, 2017 2017 Change in net revenue $ (78,761 ) $ (183,206 ) Change in income from operations (72,633 ) (168,997 ) Change in net income (57,150 ) (145,303 ) Change in earnings per share, basic $ (0.50 ) $ (1.33 ) Change in earnings per share, diluted $ (0.49 ) $ (1.30 ) Impairment of In-process Research & Development ("IPR&D") During our second fiscal quarter, as a result of our decision not to proceed with further development of certain IPR&D from the Social Point, S.L. ("Social Point") acquisition, we recognized an impairment charge of $11,257 in Depreciation and amortization expense in our Condensed Consolidated Statements of Operations. Recently Adopted Accounting Pronouncements Accounting for Stock Compensation In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation—Stock Compensation . This new guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted this update effective April 1, 2017. Upon adoption, using the modified retrospective transition method, we recognized previously unrecognized excess tax benefits as a deferred tax asset, which was fully offset by a valuation allowance, resulting in no net impact to retained earnings. Without the valuation allowance, our deferred tax asset would have increased by $24,594 . We elected to apply the change in presentation of excess tax benefits as an operating activity in the Consolidated Statement of Cash Flows prospectively and thus no prior periods were adjusted. We also elected to account for forfeitures as they occur using the modified retrospective transition method, which resulted in a cumulative effect adjustment of $323 to retained earnings (an increase in the accumulated deficit). The other aspects of the new guidance did not have a material effect on our Consolidated Financial Statements. Accounting for Acquisitions or Disposals In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , with the objective of providing additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update provide new guidance to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The new guidance requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new guidance is expected to reduce the number of transactions that need to be further evaluated. The new standard, as amended, will be effective prospectively for interim and annual reporting periods beginning on January 1, 2018 (April 1, 2018 for the Company), with early adoption permitted. We adopted this update as of April 1, 2017. Recently Issued Accounting Pronouncements Accounting for Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) . This ASU eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, this ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 (April 1, 2020 for the Company), including interim periods within those fiscal years, and is applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. While we are currently evaluating the impact of the adoption of this ASU, we do not believe that the adoption of this guidance will have a material impact on our Consolidated Financial Statements. Accounting for Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This ASU amends the presentation of restricted cash within the statement of cash flows. The new guidance requires that changes in restricted cash and cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2017 (April 1, 2018 for the Company), including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, Leases . This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting. This update is effective for annual periods, and interim periods within those years, beginning after December 15, 2018 (April 1, 2019 for the Company). This new guidance must be adopted using a modified retrospective approach whereby lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases, mostly for office space. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017 (April 1, 2018 for the Company), with early adoption permitted for annual reporting periods beginning after December 15, 2016 (April 1, 2017 for the Company). We will adopt the new standard effective April 1, 2018 using the cumulative catch-up transition method. We anticipate this standard will have a material impact on our Consolidated Financial Statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for on-line enabled games that benefit from meaningful post-contract customer support ("PCS") such as unspecified content updates for which we do not have vendor-specific objective evidence of fair value ("VSOE"). Under the current accounting standards, for titles that do not have VSOE, we recognize the entire sales price ratably over the title's estimated service period. The VSOE requirement will be eliminated under the new standard. Accordingly, we may be required to recognize as revenue a portion of the sales price upon delivery of the software, as compared to the current requirement of recognizing the entire sales price ratably over an estimated offering period. It is possible that our evaluation of the expected impact of the new standard on certain transactions could change if there are additional interpretations of the new revenue guidance that are different from our preliminary conclusions. |
MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT | 9 Months Ended |
Dec. 31, 2017 | |
MANAGEMENT AGREEMENT | |
MANAGEMENT AGREEMENT | MANAGEMENT AGREEMENT In March 2014, we entered into an amended management services agreement, (the "2014 Management Agreement"), with ZelnickMedia Corporation ("ZelnickMedia") pursuant to which ZelnickMedia provided us with certain management, consulting and executive level services. The 2014 Management Agreement became effective April 1, 2014. The 2014 Management Agreement provided for an annual management fee of $2,970 over the term of the agreement and a maximum annual bonus opportunity of $4,752 over the term of the agreement, based on the Company achieving certain performance thresholds. In November 2017, we entered into a new management agreement, (the "2017 Management Agreement"), with ZelnickMedia pursuant to which ZelnickMedia continues to provide financial and management consulting services to the Company through March 31, 2024. The 2017 Management Agreement became effective January 1, 2018 and supersedes and replaces the 2014 Management Agreement, except as otherwise contemplated by the 2017 Management Agreement. As part of the 2017 Management Agreement, Strauss Zelnick, the President of ZelnickMedia, continues to serve as Executive Chairman and Chief Executive Officer, and Karl Slatoff, a partner of ZelnickMedia, continues to serve as President of the Company. The 2017 Management Agreement provides for an annual management fee of $3,100 over the term of the agreement and a maximum annual bonus opportunity of $7,440 over the term of the agreement, based on the Company achieving certain performance thresholds. In consideration for ZelnickMedia's services, we recorded consulting expense (a component of general and administrative expenses) of $2,435 and $2,440 during the three months ended December 31, 2017 and 2016 , respectively, and $6,296 and $5,113 during the nine months ended December 31, 2017 and 2016 , respectively. We recorded stock-based compensation expense for non-employee restricted stock units granted to ZelnickMedia, which is included in general and administrative expenses of $10,351 and $7,066 during the three months ended December 31, 2017 and 2016 , respectively, and $30,228 and $17,862 during the nine months ended December 31, 2017 and 2016 , respectively. In connection with the 2014 Management Agreement, we have granted restricted stock units as follows: Nine Months Ended December 31, 2017 2016 Time-based 66,122 107,551 Market-based(1) 122,370 199,038 Performance-based(1) New IP 20,396 33,174 Major IP 20,394 33,172 Total—Performance-based 40,790 66,346 Total Restricted Stock Units 229,282 372,935 _______________________________________________________________________________ (1) Represents the maximum number of shares eligible to vest. Time-based restricted stock units granted in 2017 will vest on April 4, 2019, and those granted in 2016 will vest on April 2, 2018, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. Market-based restricted stock units granted in 2017 are eligible to vest on April 4, 2019, and those granted in 2016 are eligible to vest on April 2, 2018, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. Market-based restricted stock units are eligible to vest based on the Company's Total Shareholder Return (as defined in the relevant grant agreement) relative to the Total Shareholder Return (as defined in the relevant grant agreement) of the companies that constitute the NASDAQ Composite Index as of the grant date measured over a two -year period. To earn the target number of market-based restricted stock units (which represents 50% of the number of the market-based restricted stock units set forth in the table above), the Company must perform at the 50th percentile, with the maximum number of market-based restricted stock units earned if the Company performs at the 75th percentile. Each reporting period we re-measure the fair value of the unvested shares of market-based restricted stock units granted to ZelnickMedia. Performance-based restricted stock units granted in 2017 are eligible to vest on April 4, 2019, and those granted in 2016 are eligible to vest on April 2, 2018, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. Performance-based restricted stock units, of which 50% are tied to "New IP" and 50% to "Major IP" (as defined in the relevant grant agreement), are eligible to vest based on the Company's achievement of certain performance metrics (as defined in the relevant grant agreement) of individual product releases of "New IP" or "Major IP" measured over a two -year period. The target number of performance-based restricted stock units that may be earned pursuant to these grants is equal to 50% of the grant amounts set forth in the above table (the numbers in the table represent the maximum number of performance-based restricted stock units that may be earned). Each reporting period we assess the performance metric and upon achievement of certain thresholds record an expense for the unvested portion of the shares of performance-based restricted stock units. Certain performance metrics, based on unit sales, have been achieved as of December 31, 2017 for the "Major IP" performance-based restricted stock units granted in 2017 and 2016 . The unvested portion of time-based, market-based and performance-based restricted stock units held by ZelnickMedia were 602,217 and 898,526 as of December 31, 2017 and March 31, 2017 , respectively. 478,839 restricted stock units previously granted to ZelnickMedia, vested and 46,752 restricted stock units were forfeited by ZelnickMedia during the nine months ended December 31, 2017 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other current liabilities, approximate fair value because of their short maturities. We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs 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 in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The table below segregates all assets and liabilities that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. December 31, 2017 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Balance Sheet Classification Money market funds $ 419,642 $ 419,642 $ — Cash and cash equivalents Bank-time deposits 53,598 53,598 — Cash and cash equivalents Commercial paper 17,294 17,294 — Cash and cash equivalents Corporate bonds 10,246 10,246 — Cash and cash equivalents Bank-time deposits 166,321 166,321 — Short-term investments Corporate bonds 362,416 362,416 — Short-term investments Commercial paper 13,921 13,921 — Short-term investments Mutual funds 4,671 4,671 — Short-term investments Foreign currency forward contracts 134 — 134 — Prepaid expenses and other Foreign currency forward contracts (18 ) — (18 ) — Accrued expense and other current liabilities Cross-currency swap (8,626 ) — (8,626 ) — Accrued expense and other current liabilities Private equity 917 — — 917 Other assets Contingent consideration (136 ) — — (136 ) Other long-term liabilities Total recurring fair value measurements, net $ 1,040,380 $ 639,561 $ 400,038 $ 781 March 31, 2017 Quoted prices Significant Significant Balance Sheet Classification Money market funds $ 646,386 $ 646,386 $ — $ — Cash and cash equivalents Bank-time deposits 46,605 46,605 — — Cash and cash equivalents Commercial paper 38,268 — 38,268 — Cash and cash equivalents Corporate bonds 243,019 — 243,019 — Short-term investments Bank-time deposits 175,745 175,745 — — Short-term investments Commercial paper 25,936 — 25,936 — Short-term investments Mutual funds 4,232 — 4,232 — Short-term investments Foreign currency forward contracts 2 — 2 — Prepaid expenses and other Foreign currency forward contracts (352 ) — (352 ) — Accrued and other current liabilities Private equity 570 — — 570 Other assets Contingent consideration (6,465 ) — — (6,465 ) Other long-term liabilities Total recurring fair value measurements, net $ 1,173,946 $ 868,736 $ 311,105 $ (5,895 ) In September 2017, we recognized a reduction to general and administrative expense of $7,012 for the decrease in fair value of the contingent consideration liability associated with the Social Point acquisition, which reduced the fair value of the contingent consideration liability to $136 after the impact of foreign exchange. The reduction resulted from the lower probability of Social Point achieving certain performance measures in the 12 and 24 -month periods following the acquisition. The fair value of contingent consideration was estimated using a Monte-Carlo simulation model, which included significant unobservable Level 3 inputs, such as projected financial performance over the earn-out period along with estimates for market volatility and the discount rate applicable to potential cash payouts. We did not have any transfers between Level 1 and Level 2 fair value measurements, nor did we have any transfers into or out of Level 3 during the nine months ended December 31, 2017 . Debt As of December 31, 2017 , the estimated fair value of our 1.00% Convertible Notes due 2018 (the " 1.00% Convertible Notes") was $72,227 . The fair value was determined using Level 2 inputs, observable market data, for the 1.00% Convertible Notes and their embedded option feature. See Note 9 for additional information regarding our 1.00% Convertible Notes. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 9 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS Our short-term investments consisted of the following: December 31, 2017 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 166,321 $ — $ — $ 166,321 Available-for-sale securities: Corporate bonds 363,127 18 (729 ) 362,416 Commercial paper 13,921 — — 13,921 Mutual funds 4,665 15 (9 ) 4,671 Total short-term investments $ 548,034 $ 33 $ (738 ) $ 547,329 March 31, 2017 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 175,745 $ — $ — $ 175,745 Available-for-sale securities: Corporate bonds 243,140 98 (219 ) 243,019 Commercial paper 25,938 5 (7 ) 25,936 Mutual funds 4,118 123 (9 ) 4,232 Total short-term investments $ 448,941 $ 226 $ (235 ) $ 448,932 Based on our review of investments with unrealized losses, we did not consider these investments to be other-than-temporarily impaired as of December 31, 2017 or March 31, 2017 . The following table summarizes the contracted maturities of our short-term investments at December 31, 2017 : December 31, 2017 Amortized Fair Short-term investments Due in 1 year or less $ 371,567 $ 371,489 Due in 1 - 2 years 176,467 175,840 Total short-term investments $ 548,034 $ 547,329 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Our risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not enter into derivative financial contracts for speculative or trading purposes. We recognize derivative instruments as either assets or liabilities on our Condensed Consolidated Balance Sheets, and we measure those instruments at fair value. We classify cash flows from derivative transactions as cash flows from operating activities in our Condensed Consolidated Statements of Cash Flows. Foreign currency forward contracts The following table shows the gross notional amounts of foreign currency forward contracts: December 31, 2017 March 31, 2017 Forward contracts to sell foreign currencies $ 130,763 $ 177,549 Forward contracts to purchase foreign currencies 3,883 9,170 For the three months ended December 31, 2017 and 2016 , we recorded a loss of $620 and a gain of $11,158 , respectively, and for the nine months ended December 31, 2017 and 2016 , we recorded a loss of $15,325 and a gain of $11,731 , respectively, related to foreign currency forward contracts in Interest and other, net in our Condensed Consolidated Statements of Operations. Our foreign currency exchange forward contracts are not designated as hedging instruments under hedge accounting and are used to reduce the impact of foreign currency on certain balance sheet exposures and certain revenue and expense. These instruments are generally short term in nature, with typical maturities of less than one year, and are subject to fluctuations in foreign exchange rates. Cross-currency swaps We entered into a cross-currency swap agreement in August 2017 related to an intercompany loan that has been designated and accounted for as a cash flow hedge of foreign currency exchange risk. The intercompany loan is related to the acquisition of Social Point. As of December 31, 2017 , the notional amount of the cross-currency swap is $129,000 . This cross-currency swap mitigates the exposure to fluctuations in the U.S. dollar-euro exchange rate related to the intercompany loan. The critical terms of the cross-currency swap agreement correspond to the intercompany loan and both mature at the same time in 2027; as such, there was no ineffectiveness during the period. Changes in the fair value of this cross-currency swap are recorded in Accumulated other comprehensive income (loss) and offset the change in value of interest and principal payment as a result of changes in foreign exchange rates. Resulting gains or losses from the cross-currency swap are reclassified from Accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. We recognize the difference between the U.S. dollar interest payments received from the swap counterparty and the U.S. dollar equivalent of the euro interest payments made to the swap counterparty in interest and other, net on our Condensed Consolidated Statement of Operations. There are no credit-risk related contingent features associated with these swaps. |
INVENTORY
INVENTORY | 9 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory balances by category are as follows: December 31, 2017 March 31, 2017 Finished products $ 27,717 $ 15,530 Parts and supplies 3,140 793 Inventory $ 30,857 $ 16,323 Estimated product returns included in inventory at December 31, 2017 and March 31, 2017 were $423 and $529 , respectively. |
SOFTWARE DEVELOPMENT COSTS AND
SOFTWARE DEVELOPMENT COSTS AND LICENSES | 9 Months Ended |
Dec. 31, 2017 | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | SOFTWARE DEVELOPMENT COSTS AND LICENSES Details of our capitalized software development costs and licenses are as follows: December 31, 2017 March 31, 2017 Current Non-current Current Non-current Software development costs, internally developed $ 30,420 $ 477,883 $ 28,959 $ 310,229 Software development costs, externally developed 6,611 108,858 5,455 71,407 Licenses 2,338 125 7,307 274 Software development costs and licenses $ 39,369 $ 586,866 $ 41,721 $ 381,910 During the three months ended December 31, 2017 and 2016 , we recorded $0 and $7,731 , respectively, and during the nine months ended December 31, 2017 and 2016 , we recorded $960 and $19,325 , respectively, of software development impairment charges (a component of cost of goods sold). Liability Awards In September 2017, we reclassified 5,550,000 time and performance based restricted stock units as equity awards. These awards were granted in prior periods and historically accounted for as liability awards as they previously could be settled only in cash and based on a contractually stipulated cash settlement value. However, in September 2017, at our Annual Meeting of Stockholders, we received stockholder approval to increase the number of shares of Common Stock for which awards may be granted and therefore now have the ability and intent to settle these awards in stock. As a result, we reclassified $74,707 from Other long-term liabilities to Additional paid-in capital within Stockholders' equity. Additionally, we recognized incremental cost of $112,789 to reflect the difference between the share price at the time of the modification and the contractually stipulated cash settlement value. Of these incremental costs, $84,176 was capitalized within Software development costs and licenses, net of current porti on; $23,251 was recorded within Software development costs and royalties (a component of cost of goods sold); and $5,361 was recorded within Research and development costs . |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Dec. 31, 2017 | |
Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: December 31, 2017 March 31, 2017 Software development royalties $ 532,665 $ 492,133 Compensation and benefits 82,703 44,843 Business reorganization 71,105 65,935 Licenses 66,113 37,019 Marketing and promotions 56,189 21,030 Deferred acquisition payments 25,000 25,000 Other 73,570 64,915 Accrued expenses and other current liabilities $ 907,345 $ 750,875 |
DEBT
DEBT | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Agreement In December 2017, we entered into a Seventh Amendment to our Second Amended and Restated Credit Agreement (as amended, the "Credit Agreement"). The Credit Agreement provides for borrowings of up to $100,000 which may be increased by up to $100,000 pursuant to the terms of the Credit Agreement and which is secured by substantially all of our assets and the equity of our subsidiaries. The Credit Agreement expires on August 18, 2019. Revolving loans under the Credit Agreement bear interest at our election of (a) 0.25% to 0.75% above a certain base rate ( 4.50% at December 31, 2017 ) or (b) 1.25% to 1.75% above the LIBOR Rate (approximately 1.57% at December 31, 2017 ), with the margin rate subject to the achievement of certain average liquidity levels. We are also required to pay a monthly fee on the unused available balance, ranging from 0.25% to 0.375% based on availability. We had no outstanding borrowings at December 31, 2017 and March 31, 2017 . Availability under the Credit Agreement is unrestricted when liquidity, as defined in the Credit Agreement, is at least $300,000 . When liquidity is below $300,000 availability under the Credit Agreement is restricted by our United States and United Kingdom based accounts receivable and inventory balances. The Credit Agreement also allows for the issuance of letters of credit in an aggregate amount of up to $5,000 . Information related to availability on our Credit Agreement is as follows: December 31, 2017 March 31, 2017 Available borrowings $ 98,325 $ 98,320 Outstanding letters of credit 1,664 1,664 We recorded interest expense and fees related to the Credit Agreement of $111 and $111 , respectively for the three months ended December 31, 2017 and 2016 and $332 and $332 for the nine months ended December 31, 2017 and 2016 , respectively. The Credit Agreement contains covenants that substantially limit us and our subsidiaries' ability to create, incur, assume or be liable for indebtedness; dispose of assets outside the ordinary course of business; acquire, merge or consolidate with or into another person or entity; create, incur or allow any lien on any of their respective properties; make investments; or pay dividends or make distributions (each subject to certain limitations); or optionally prepay any indebtedness (subject to certain exceptions, including an exception permitting the redemption of our unsecured convertible senior notes upon the meeting of certain minimum liquidity requirements). In addition, the Credit Agreement provides for certain events of default such as nonpayment of principal and interest, breaches of representations and warranties, noncompliance with covenants, acts of insolvency, default on indebtedness held by third parties and default on certain material contracts (subject to certain limitations and cure periods). The Credit Agreement also contains a requirement that we maintain an interest coverage ratio of more than one to one for the trailing twelve -month period, if certain average liquidity levels fall below $30,000 . 1.00% Convertible Notes Due 2018 On June 18, 2013, we issued $250,000 aggregate principal amount of 1.00% Convertible Notes due 2018. The 1.00% Convertible Notes were issued at 98.5% of par value for proceeds of $246,250 . Interest on the 1.00% Convertible Notes is payable semi-annually in arrears on July 1st and January 1st of each year, commencing on January 1, 2014. The 1.00% Convertible Notes mature on July 1, 2018, unless earlier repurchased by the Company or converted. We do not have the right to redeem the 1.00% Convertible Notes prior to maturity. We also granted the underwriters a 30 -day option to purchase up to an additional $37,500 principal amount of 1.00% Convertible Notes to cover overallotments, if any. On July 17, 2013, we closed our public offering of $37,500 principal amount of our 1.00% Convertible Notes as a result of the underwriters exercising their overallotment option in full on July 12, 2013, bringing the total proceeds to $283,188 . The 1.00% Convertible Notes are convertible at an initial conversion rate of 46.4727 shares of our common stock per $1 principal amount of 1.00% Convertible Notes (representing an initial conversion price of approximately $21.52 per share of common stock for a total of approximately 13,361,000 underlying conversion shares) subject to adjustment in certain circumstances. Holders were able to convert the 1.00% Convertible Notes at their option prior to the close of business on the business day immediately preceding January 1, 2018 only under the following circumstances: (1) during any fiscal quarter commencing after September 30, 2013, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the "measurement period") in which the trading price per $1 principal amount of 1.00% Convertible Notes for each day of that measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate on each such day; or (3) upon the occurrence of specified corporate events. On and after January 1, 2018 until the close of business on the business day immediately preceding the maturity date, holders may convert their 1.00% Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the 1.00% Convertible Notes may be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. Accordingly, as of January 1, 2018, the 1.00% Convertible Notes may be converted at the holder's option through June 30, 2018. During the three and nine months ended December 31, 2017, 1.00% Convertible Notes with an aggregate principal amount of $40,088 and $253,986 , respectively, were settled, and an additional $2 were tendered for conversion with January 2018 settlement dates. As a result of early conversions of the 1.00% Convertible Notes, we recorded a gain within Interest and other, net on our Consolidated Statement of Operations of $0.7 million and $4.9 million for the three and nine month period ended December 31, 2017. We elected to settle in shares of our common stock. Our intent and ability, given our option, would be to settle future conversions in shares of our common stock. As such, we have continued to classify these 1.00% Convertible Notes as long-term debt. Upon the occurrence of certain fundamental changes involving the Company, holders of the 1.00% Convertible Notes may require us to purchase all or a portion of their 1.00% Convertible Notes for cash at a price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest (including additional interest, if any) to, but excluding, the fundamental change purchase date. The indenture governing the 1.00% Convertible Notes contains customary terms and covenants and events of default. If an event of default (as defined therein) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in aggregate principal amount of the 1.00% Convertible Notes then outstanding by notice to the Company and the Trustee, may, and the Trustee at the request of such holders shall, declare 100% of the principal of and accrued and unpaid interest (including additional interest, if any) on all the 1.00% Convertible Notes to be due and payable. In the case of an event of default arising out of certain bankruptcy events, 100% of the principal of and accrued and unpaid interest (including additional interest, if any), on the 1.00% Convertible Notes will automatically become due and payable immediately. The 1.00% Convertible Notes are senior unsecured obligations and rank senior in right of payment to our existing and future indebtedness that is expressly subordinated in right of payment to the 1.00% Convertible Notes; equal in right of payment to our existing and future indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness incurred by our subsidiaries. We separately account for the liability and equity components of the 1.00% Convertible Notes in a manner that reflects our nonconvertible debt borrowing rate. We estimated the fair value of the 1.00% Convertible Notes to be $225,567 upon issuance of our 1.00% Convertible Notes, assuming a 6.15% non-convertible borrowing rate. The carrying amount of the equity component was determined to be approximately $57,621 by deducting the fair value of the liability component from the net proceeds of the 1.00% Convertible Notes. The excess of the principal amount of the liability component over its carrying amount is amortized to interest and other, net over the term of the 1.00% Convertible Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the $2,815 of banking, legal and accounting fees related to the issuance of the 1.00% Convertible Notes, we allocated $2,209 to the liability component and $606 to the equity component. Debt issuance costs attributable to the liability component are being amortized to interest and other, net over the term of the 1.00% Convertible Notes, and issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital. As of December 31, 2017 and March 31, 2017 , the if-converted value of our 1.00% Convertible Notes exceeded the principal amount of $14,163 and $268,149 , respectively by $58,064 and $470,456 , respectively. The following table provides additional information related to our 1.00% Convertible Notes: December 31, 2017 March 31, 2017 Additional paid-in capital $ 35,784 $ 35,784 Principal amount of 1.00% Convertible Notes $ 14,163 $ 268,149 Unamortized discount of the liability component 311 15,751 Carrying amount of debt issuance costs 14 469 Net carrying amount of 1.00% Convertible Notes $ 13,838 $ 251,929 The following table provides the components of interest expense related to our 1.00% Convertible Notes: Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Cash interest expense (coupon interest expense) $ (60 ) $ 698 $ 519 $ 2,115 Non-cash amortization of discount on 1.00% Convertible Notes 1,509 3,285 15,424 10,289 Amortization of debt issuance costs 48 99 471 333 Total interest expense related to 1.00% Convertible Notes $ 1,497 $ 4,082 $ 16,414 $ 12,737 |
EARNINGS (LOSS) PER SHARE ("EPS
EARNINGS (LOSS) PER SHARE ("EPS") | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE (EPS) | EARNINGS (LOSS) PER SHARE ("EPS") The following table sets forth the computation of basic and diluted earnings (loss) per share (shares in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Computation of Basic earnings (loss) per share: Net income (loss) $ 25,140 $ (29,842 ) $ 82,680 $ (31,977 ) Less: net income allocated to participating securities (62 ) — (211 ) — Net income (loss) for basic earnings (loss) per share calculation $ 25,078 $ (29,842 ) $ 82,469 $ (31,977 ) Total weighted average shares outstanding—basic 113,991 90,428 109,010 86,796 Less: weighted average participating shares outstanding (279 ) — (278 ) — Weighted average common shares outstanding—basic 113,712 90,428 108,732 86,796 Basic earnings (loss) per share $ 0.22 $ (0.33 ) $ 0.76 $ (0.37 ) Computation of Diluted earnings (loss) per share: Net income (loss) $ 25,140 $ (29,842 ) $ 82,680 $ (31,977 ) Less: net income allocated to participating securities (59 ) — (206 ) — Net income (loss) for diluted earnings (loss) per share calculation $ 25,081 $ (29,842 ) $ 82,474 $ (31,977 ) Weighted average common shares outstanding—basic 113,712 90,428 108,732 86,796 Add: dilutive effect of common stock equivalents 4,206 — 2,708 — Weighted average common shares outstanding—diluted 117,918 90,428 111,440 86,796 Less: weighted average participating shares outstanding (279 ) — (278 ) — Weighted average common shares outstanding- diluted 117,639 90,428 111,162 $ 86,796 Diluted earnings (loss) per share $ 0.21 $ (0.33 ) $ 0.74 $ (0.37 ) Certain of our unvested restricted stock awards (including restricted stock units and time-based and market-based restricted stock awards) are considered participating securities since these securities have non-forfeitable rights to dividends or dividend equivalents during the contractual period of the award, and thus require the two-class method of computing EPS. The calculation of EPS for common stock under the two-class method shown above for the three and nine months ended December 31, 2017 excludes income attributable to the participating securities from the numerator and excludes the dilutive effect of those awards from the denominator. We incurred a net loss for the three and nine months ended December 31, 2016; therefore, the basic and diluted weighted average shares outstanding for those periods exclude the effect of the unvested share-based awards that are considered participating securities and all common stock equivalents because their effect would be antidilutive. For the three and nine months ended December 31, 2016, we had 4,912,000 of unvested share-based awards that are excluded from the EPS calculation due to the net loss for those periods. We define common stock equivalents as restricted stock awards and common stock related to the Convertible Notes (see Note 9) outstanding during the period. Common stock equivalents are measured using the treasury stock method, except for the Convertible Notes, which are assessed for their effect on diluted EPS using the more dilutive of the treasury stock method or the if-converted method. Under the provisions of the if-converted method, the Convertible Notes are assumed to be converted and included in the denominator of the EPS calculation and the interest expense, net of tax, recorded in connection with the Convertible Notes is added back to the numerator. During the nine months ended December 31, 2017 , 2,877,000 restricted stock awards vested, we granted 2,303,000 unvested restricted stock awards, and 1,575,000 unvested restricted stock awards were forfeited. The forfeiture of awards resulted in the reversal of expense of $17,214 and amounts capitalized as software development costs of $53,569 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Dec. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table provides the components of accumulated other comprehensive loss: Nine Months Ended December 31, 2017 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2017 $ (47,666 ) $ 600 $ — $ (76 ) $ (47,142 ) Other comprehensive income (loss) before reclassifications 23,391 — (8,626 ) (705 ) 14,060 Amounts reclassified from accumulated other comprehensive loss — — 1,987 — 1,987 Balance at December , 2017 $ (24,275 ) $ 600 $ (6,639 ) $ (781 ) $ (31,095 ) Nine Months Ended December 31, 2016 Foreign Unrealized Unrealized Total Balance at March 31, 2016 $ (38,580 ) $ 600 $ 84 $ (37,896 ) Other comprehensive (loss) income before reclassifications (10,067 ) — (221 ) (10,288 ) Amounts reclassified from accumulated other comprehensive loss — — 9 9 Balance at December 31, 2016 $ (48,647 ) $ 600 $ (128 ) $ (48,175 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We have entered into various agreements in the ordinary course of business that require substantial cash commitments over the next several years. Other than agreements entered into in the ordinary course of business and in addition to the agreements requiring known cash commitments as reported in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 , we did not have any significant changes to our commitments since March 31, 2017 . Legal and Other Proceedings We are, or may become, subject to demands and claims (including intellectual property claims) and are involved in routine litigation in the ordinary course of business, which we do not believe to be material to our business or financial statements. We have appropriately accrued amounts related to certain of these claims and legal and other proceedings. While it is reasonably possible that a loss may be incurred in excess of the amounts accrued in our financial statements, we believe that such losses, unless otherwise disclosed, would not be material. On April 11, 2016, we filed a declaratory judgment action in the United States District Court for the Southern District of New York seeking, among other things, a judicial declaration that Leslie Benzies, the former president of one of our subsidiaries with whom we had been in ongoing discussions regarding his separation of employment, is not entitled to any minimum allocation or financial parity with any other person under the applicable royalty plan. We believe we will prevail in this matter, although there can be no assurance of the outcome. On April 12, 2016, Mr. Benzies filed a complaint in the Supreme Court of the State of New York, New York County against us, and certain of our subsidiaries and employees. We removed this case to the United States District Court for the Southern District of New York, but the case was subsequently remanded to state court. The complaint claims damages of at least $150,000 and contains allegations of breach of fiduciary duty; fraudulent inducement and fraudulent concealment; aiding and abetting breach of fiduciary duty; breach of various contracts; breach of implied duty of good faith and fair dealing; tortious interference with contract; unjust enrichment; reformation; constructive trust; declaration of rights; constructive discharge; defamation and fraud. Motion practice in both the federal and state actions is ongoing. While we believe that we have meritorious defenses to these claims, and we intend to vigorously defend against them and to pursue any counterclaims, we have accrued what we believe to be an adequate amount for this matter, which amounts are classified in Business reorganization within Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheet (see Note 8). We do not believe that the ultimate outcome of such litigation, even if in excess of our current accrual, will have a material adverse effect on our business, financial condition or results of operations. |
BUSINESS REORGANIZATION
BUSINESS REORGANIZATION | 9 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
BUSINESS REORGANIZATION | BUSINESS REORGANIZATION In the first quarter of fiscal 2018, we announced and initiated actions to implement a strategic reorganization at one of our labels (the "2018 Plan"). In connection with this initiative, we incurred business reorganization expenses of $700 during the three months ended December 31, 2017 due to true-up of estimates for employee separation costs and $13,012 during the nine months ended December 31, 2017 due primarily to employee separation costs. Through December 31, 2017 , we paid $3,029 related to these reorganization activities. As of December 31, 2017 , $5,170 remained accrued for in Accrued expenses and other current liabilities and $4,813 in Other non-current liabilities. Although we may record additional expense or benefit in future periods to true-up estimates, we do not expect to incur additional reorganization costs in connection with the 2018 Plan. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the United States (“U.S.”) enacted comprehensive tax legislation commonly referred as the "Tax Cuts and Jobs Act” (herein referred to as the "Act”). The Act makes broad and complex changes to the U.S. tax code, which could materially affect us. The Act reduces the U.S. federal corporate tax rate from 35% to 21% , effective January 1, 2018 and requires companies to pay a one-time transition tax on the previously untaxed earnings of certain foreign subsidiaries. In addition, the Act makes other changes that may affect us, beginning April 1, 2018. These changes include but are not limited to (1) a Base Erosion Anti-abuse Tax (BEAT), which is a new minimum tax, (2) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries, (3) a new provision that taxes global intangible low-taxed income (GILTI), (4) the repeal of the domestic production activity deduction, and (5) other base broadening provisions. The SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides guidance on accounting for the Act’s impact. SAB 118 provides a measurement period, which should not extend beyond one year from the Act enactment date, during which a company acting in good faith may complete the accounting for the impact of the Act under ASC 740. In accordance with SAB 118, the income tax effects of the Act must be reflected in the reporting period in which the accounting under ASC Topic 740 is complete. To the extent the accounting for certain income tax effects of the Act is incomplete, we can determine a reasonable estimate for those effects and record a provisional estimate. During the three months ended December 31, 2017 , we recorded discrete income tax expense of $18,078 related to the one-time transition tax on the previously untaxed earnings of certain foreign subsidiaries. In addition, as a result of the decrease in the U.S. federal corporate income tax rate from 35% to 21% , we estimated a decrease to net deferred tax assets of $47,677 and corresponding decrease to valuation allowance of $47,677 , resulting in no impact to our tax provision. The re-measurement of a deferred tax liability relating to indefinite lived intangibles, which cannot be used to offset deferred tax assets, resulted in a discrete tax benefit of $6,202 . We are currently evaluating the potential impact of the Act, and the amounts recorded represent provisional estimates for certain identified income tax effects, for which the accounting is incomplete but a reasonable estimate can be determined. Additional information and further analysis is required to determine the untaxed earnings of certain foreign subsidiaries and to evaluate the complexities of the new tax law along with additional interpretative guidance that may be issued. The impact of the Act may differ from these estimates, possibly materially, due to changes in interpretations and assumptions we have made, guidance that may be issued and actions we may take as a result of the Act. We expect to continue to analyze the Act and its impacts and record any adjustments to provisional estimates no later than the third quarter of fiscal 2019. We are also reviewing whether the Act will affect our existing intention to indefinitely reinvest earnings of our foreign subsidiaries and therefore have not recorded any tax liabilities associated with the repatriation of foreign earnings. We are also currently analyzing other provisions of the Act that are effective for us April 1, 2018. These provisions include BEAT, the elimination of U.S. federal income taxes on dividends from foreign subsidiaries, GILTI, and other base broadening provisions. The benefit from income taxes for the three 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. The benefit from income taxes was $12,914 for the three months ended December 31, 2017 as compared to $2,282 for the prior year period. As a result of phasing in the reduction in U.S. corporate income tax rate, which was effective January 1, 2018, for our fiscal fourth quarter, our blended statutory rate is 31.6% . When compared to the statutory rate of 31.6% , the effective tax rate of (105.6)% for the three months ended December 31, 2017 , was primarily due to provisional amounts recorded as a result of the Act as described above, a tax benefit of $9,773 as a result of changes in our valuation allowance relating to temporary items and tax carryforwards anticipated to be utilized, as well as $12,555 of discrete tax benefits recorded during the three months ended December 31, 2017 from changes in unrecognized tax benefits primarily due to expiration of the statute of limitations and $4,131 of excess tax benefits from employee stock compensation as a component of the benefit from income taxes (previously excess tax benefit and tax deficiencies were recognized in additional paid-in-capital). To a lesser extent, our rate was also impacted by tax credits and geographic mix of earnings. The benefit from income taxes reported for the 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. The benefit from income taxes was $37,331 for the nine months ended December 31, 2017 , as compared to $2,169 for the prior year period. When compared to the statutory rate of 31.6% , the effective tax rate of (82.3)% for the nine months ended December 31, 2017 was primarily due to provisional amounts recorded as a result of the Act as described above, a tax benefit of $14,437 as a result of changes in our valuation allowance relating to temporary items and tax carryforwards anticipated to be utilized, a tax benefit of $8,891 as result of tax credits anticipated to be utilized, as well as $11,174 of discrete tax benefits recorded during the nine months ended December 31, 2017 from changes in unrecognized tax benefits primarily due to expiration of the statute of limitations and $28,624 for excess tax benefits from employee stock compensation as a component of the benefit from income taxes (previously excess tax benefit and tax deficiencies were recognized in additional paid-in-capital). To a lesser extent, our rate was also impacted by geographic mix of earnings. We are regularly examined by domestic and foreign taxing authorities. Examinations may result in tax assessments in excess of amounts claimed and the payment of additional taxes. We believe our tax positions comply with applicable tax law, and that we have adequately provided for reasonably foreseeable tax assessments. It is possible that settlement of audits or the expiration of the statute of limitations may have an impact on our effective tax rate in future periods. |
SHARE REPURCHASE
SHARE REPURCHASE | 9 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
SHARE REPURCHASE | SHARE REPURCHASE Our Board of Directors has authorized the repurchase of up to 14,217,683 shares of our common stock. Under this program, we may purchase shares from time to time through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. Repurchases are subject to the availability of stock, prevailing market conditions, the trading price of the stock, the Company's financial performance and other conditions. The program may be suspended or discontinued at any time for any reason. During the three and nine months ended December 31, 2017 we repurchased 1,063,750 shares of our common stock in the open market for $110,147 , including commissions of $10 , as part of the program. We have repurchased a total of 6,235,080 shares of our common stock under the program and as of December 31, 2017 . 7,982,603 shares of our common stock remain available for repurchase under the share repurchase program. |
BASIS OF PRESENTATION AND SIG22
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries and, in the opinion of management, reflect all normal and recurring adjustments necessary for the fair presentation of our financial position, results of operations and cash flows. Interim results may not be indicative of the results that may be expected for the full fiscal year. All inter-company accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under generally accepted accounting principles in the United States, interim accounting for certain expenses, including income taxes, are based on full year assumptions when appropriate. Actual results could differ materially from those estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017 . Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation. |
Revenue Recognition | Revenue Recognition As part of our on-going assessment of estimated service periods, in June 2017, we extended Grand Theft Auto V's estimated service period from 41 through 50 months, or through December 2018. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Accounting for Stock Compensation In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation—Stock Compensation . This new guidance identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. We adopted this update effective April 1, 2017. Upon adoption, using the modified retrospective transition method, we recognized previously unrecognized excess tax benefits as a deferred tax asset, which was fully offset by a valuation allowance, resulting in no net impact to retained earnings. Without the valuation allowance, our deferred tax asset would have increased by $24,594 . We elected to apply the change in presentation of excess tax benefits as an operating activity in the Consolidated Statement of Cash Flows prospectively and thus no prior periods were adjusted. We also elected to account for forfeitures as they occur using the modified retrospective transition method, which resulted in a cumulative effect adjustment of $323 to retained earnings (an increase in the accumulated deficit). The other aspects of the new guidance did not have a material effect on our Consolidated Financial Statements. Accounting for Acquisitions or Disposals In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , with the objective of providing additional guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update provide new guidance to determine when an integrated set of assets and activities (collectively referred to as a “set”) is not a business. The new guidance requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The new guidance is expected to reduce the number of transactions that need to be further evaluated. The new standard, as amended, will be effective prospectively for interim and annual reporting periods beginning on January 1, 2018 (April 1, 2018 for the Company), with early adoption permitted. We adopted this update as of April 1, 2017. Recently Issued Accounting Pronouncements Accounting for Goodwill In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) . This ASU eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, this ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 (April 1, 2020 for the Company), including interim periods within those fiscal years, and is applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. While we are currently evaluating the impact of the adoption of this ASU, we do not believe that the adoption of this guidance will have a material impact on our Consolidated Financial Statements. Accounting for Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This ASU amends the presentation of restricted cash within the statement of cash flows. The new guidance requires that changes in restricted cash and cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2017 (April 1, 2018 for the Company), including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, Leases . This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting. This update is effective for annual periods, and interim periods within those years, beginning after December 15, 2018 (April 1, 2019 for the Company). This new guidance must be adopted using a modified retrospective approach whereby lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases, mostly for office space. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB recently issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The new standard is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2017 (April 1, 2018 for the Company), with early adoption permitted for annual reporting periods beginning after December 15, 2016 (April 1, 2017 for the Company). We will adopt the new standard effective April 1, 2018 using the cumulative catch-up transition method. We anticipate this standard will have a material impact on our Consolidated Financial Statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for on-line enabled games that benefit from meaningful post-contract customer support ("PCS") such as unspecified content updates for which we do not have vendor-specific objective evidence of fair value ("VSOE"). Under the current accounting standards, for titles that do not have VSOE, we recognize the entire sales price ratably over the title's estimated service period. The VSOE requirement will be eliminated under the new standard. Accordingly, we may be required to recognize as revenue a portion of the sales price upon delivery of the software, as compared to the current requirement of recognizing the entire sales price ratably over an estimated offering period. It is possible that our evaluation of the expected impact of the new standard on certain transactions could change if there are additional interpretations of the new revenue guidance that are different from our preliminary conclusions. |
BASIS OF PRESENTATION AND SIG23
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Changes in Revenue Recognition | As part of our on-going assessment of estimated service periods, in June 2017, we extended Grand Theft Auto V's estimated service period from 41 through 50 months, or through December 2018. We expect this change in estimated service period to have a material impact on our Consolidated Financial Statements for fiscal 2018. The impact of this change is shown in the table below. Three Months Ended December 31, Nine Months Ended December 31, 2017 2017 Change in net revenue $ (78,761 ) $ (183,206 ) Change in income from operations (72,633 ) (168,997 ) Change in net income (57,150 ) (145,303 ) Change in earnings per share, basic $ (0.50 ) $ (1.33 ) Change in earnings per share, diluted $ (0.49 ) $ (1.30 ) |
MANAGEMENT AGREEMENT (Tables)
MANAGEMENT AGREEMENT (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
MANAGEMENT AGREEMENT | |
Schedule of restricted stock units granted | In connection with the 2014 Management Agreement, we have granted restricted stock units as follows: Nine Months Ended December 31, 2017 2016 Time-based 66,122 107,551 Market-based(1) 122,370 199,038 Performance-based(1) New IP 20,396 33,174 Major IP 20,394 33,172 Total—Performance-based 40,790 66,346 Total Restricted Stock Units 229,282 372,935 _______________________________________________________________________________ (1) Represents the maximum number of shares eligible to vest. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Segregation of all assets and liabilities measured at fair value on a recurring basis | The table below segregates all assets and liabilities that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. December 31, 2017 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Balance Sheet Classification Money market funds $ 419,642 $ 419,642 $ — Cash and cash equivalents Bank-time deposits 53,598 53,598 — Cash and cash equivalents Commercial paper 17,294 17,294 — Cash and cash equivalents Corporate bonds 10,246 10,246 — Cash and cash equivalents Bank-time deposits 166,321 166,321 — Short-term investments Corporate bonds 362,416 362,416 — Short-term investments Commercial paper 13,921 13,921 — Short-term investments Mutual funds 4,671 4,671 — Short-term investments Foreign currency forward contracts 134 — 134 — Prepaid expenses and other Foreign currency forward contracts (18 ) — (18 ) — Accrued expense and other current liabilities Cross-currency swap (8,626 ) — (8,626 ) — Accrued expense and other current liabilities Private equity 917 — — 917 Other assets Contingent consideration (136 ) — — (136 ) Other long-term liabilities Total recurring fair value measurements, net $ 1,040,380 $ 639,561 $ 400,038 $ 781 March 31, 2017 Quoted prices Significant Significant Balance Sheet Classification Money market funds $ 646,386 $ 646,386 $ — $ — Cash and cash equivalents Bank-time deposits 46,605 46,605 — — Cash and cash equivalents Commercial paper 38,268 — 38,268 — Cash and cash equivalents Corporate bonds 243,019 — 243,019 — Short-term investments Bank-time deposits 175,745 175,745 — — Short-term investments Commercial paper 25,936 — 25,936 — Short-term investments Mutual funds 4,232 — 4,232 — Short-term investments Foreign currency forward contracts 2 — 2 — Prepaid expenses and other Foreign currency forward contracts (352 ) — (352 ) — Accrued and other current liabilities Private equity 570 — — 570 Other assets Contingent consideration (6,465 ) — — (6,465 ) Other long-term liabilities Total recurring fair value measurements, net $ 1,173,946 $ 868,736 $ 311,105 $ (5,895 ) |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of short-term investments | Our short-term investments consisted of the following: December 31, 2017 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 166,321 $ — $ — $ 166,321 Available-for-sale securities: Corporate bonds 363,127 18 (729 ) 362,416 Commercial paper 13,921 — — 13,921 Mutual funds 4,665 15 (9 ) 4,671 Total short-term investments $ 548,034 $ 33 $ (738 ) $ 547,329 March 31, 2017 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 175,745 $ — $ — $ 175,745 Available-for-sale securities: Corporate bonds 243,140 98 (219 ) 243,019 Commercial paper 25,938 5 (7 ) 25,936 Mutual funds 4,118 123 (9 ) 4,232 Total short-term investments $ 448,941 $ 226 $ (235 ) $ 448,932 |
Summary of the contracted maturities of short-term investments | The following table summarizes the contracted maturities of our short-term investments at December 31, 2017 : December 31, 2017 Amortized Fair Short-term investments Due in 1 year or less $ 371,567 $ 371,489 Due in 1 - 2 years 176,467 175,840 Total short-term investments $ 548,034 $ 547,329 |
DERIVATIVE INSTRUMENTS AND HE27
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of gross notional amounts of foreign currency forward contracts | The following table shows the gross notional amounts of foreign currency forward contracts: December 31, 2017 March 31, 2017 Forward contracts to sell foreign currencies $ 130,763 $ 177,549 Forward contracts to purchase foreign currencies 3,883 9,170 |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory balances by category | Inventory balances by category are as follows: December 31, 2017 March 31, 2017 Finished products $ 27,717 $ 15,530 Parts and supplies 3,140 793 Inventory $ 30,857 $ 16,323 |
SOFTWARE DEVELOPMENT COSTS AN29
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | |
Schedule of capitalized software development costs and licenses | Details of our capitalized software development costs and licenses are as follows: December 31, 2017 March 31, 2017 Current Non-current Current Non-current Software development costs, internally developed $ 30,420 $ 477,883 $ 28,959 $ 310,229 Software development costs, externally developed 6,611 108,858 5,455 71,407 Licenses 2,338 125 7,307 274 Software development costs and licenses $ 39,369 $ 586,866 $ 41,721 $ 381,910 |
ACCRUED EXPENSES AND OTHER CU30
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Liabilities, Current [Abstract] | |
Schedule of components of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consist of the following: December 31, 2017 March 31, 2017 Software development royalties $ 532,665 $ 492,133 Compensation and benefits 82,703 44,843 Business reorganization 71,105 65,935 Licenses 66,113 37,019 Marketing and promotions 56,189 21,030 Deferred acquisition payments 25,000 25,000 Other 73,570 64,915 Accrued expenses and other current liabilities $ 907,345 $ 750,875 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Information related to availability on Credit Agreement | Information related to availability on our Credit Agreement is as follows: December 31, 2017 March 31, 2017 Available borrowings $ 98,325 $ 98,320 Outstanding letters of credit 1,664 1,664 |
Convertible Debt | The following table provides additional information related to our 1.00% Convertible Notes: December 31, 2017 March 31, 2017 Additional paid-in capital $ 35,784 $ 35,784 Principal amount of 1.00% Convertible Notes $ 14,163 $ 268,149 Unamortized discount of the liability component 311 15,751 Carrying amount of debt issuance costs 14 469 Net carrying amount of 1.00% Convertible Notes $ 13,838 $ 251,929 |
Schedule of Components of Interest Expense Related to Convertible Debt | The following table provides the components of interest expense related to our 1.00% Convertible Notes: Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Cash interest expense (coupon interest expense) $ (60 ) $ 698 $ 519 $ 2,115 Non-cash amortization of discount on 1.00% Convertible Notes 1,509 3,285 15,424 10,289 Amortization of debt issuance costs 48 99 471 333 Total interest expense related to 1.00% Convertible Notes $ 1,497 $ 4,082 $ 16,414 $ 12,737 |
EARNINGS (LOSS) PER SHARE ("E32
EARNINGS (LOSS) PER SHARE ("EPS") (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted loss per share | The following table sets forth the computation of basic and diluted earnings (loss) per share (shares in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Computation of Basic earnings (loss) per share: Net income (loss) $ 25,140 $ (29,842 ) $ 82,680 $ (31,977 ) Less: net income allocated to participating securities (62 ) — (211 ) — Net income (loss) for basic earnings (loss) per share calculation $ 25,078 $ (29,842 ) $ 82,469 $ (31,977 ) Total weighted average shares outstanding—basic 113,991 90,428 109,010 86,796 Less: weighted average participating shares outstanding (279 ) — (278 ) — Weighted average common shares outstanding—basic 113,712 90,428 108,732 86,796 Basic earnings (loss) per share $ 0.22 $ (0.33 ) $ 0.76 $ (0.37 ) Computation of Diluted earnings (loss) per share: Net income (loss) $ 25,140 $ (29,842 ) $ 82,680 $ (31,977 ) Less: net income allocated to participating securities (59 ) — (206 ) — Net income (loss) for diluted earnings (loss) per share calculation $ 25,081 $ (29,842 ) $ 82,474 $ (31,977 ) Weighted average common shares outstanding—basic 113,712 90,428 108,732 86,796 Add: dilutive effect of common stock equivalents 4,206 — 2,708 — Weighted average common shares outstanding—diluted 117,918 90,428 111,440 86,796 Less: weighted average participating shares outstanding (279 ) — (278 ) — Weighted average common shares outstanding- diluted 117,639 90,428 111,162 $ 86,796 Diluted earnings (loss) per share $ 0.21 $ (0.33 ) $ 0.74 $ (0.37 ) |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of components of accumulated other comprehensive loss | The following table provides the components of accumulated other comprehensive loss: Nine Months Ended December 31, 2017 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2017 $ (47,666 ) $ 600 $ — $ (76 ) $ (47,142 ) Other comprehensive income (loss) before reclassifications 23,391 — (8,626 ) (705 ) 14,060 Amounts reclassified from accumulated other comprehensive loss — — 1,987 — 1,987 Balance at December , 2017 $ (24,275 ) $ 600 $ (6,639 ) $ (781 ) $ (31,095 ) Nine Months Ended December 31, 2016 Foreign Unrealized Unrealized Total Balance at March 31, 2016 $ (38,580 ) $ 600 $ 84 $ (37,896 ) Other comprehensive (loss) income before reclassifications (10,067 ) — (221 ) (10,288 ) Amounts reclassified from accumulated other comprehensive loss — — 9 9 Balance at December 31, 2016 $ (48,647 ) $ 600 $ (128 ) $ (48,175 ) |
BASIS OF PRESENTATION AND SIG34
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)label | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Wholly-owned labels | label | 2 | |||
Impairment of in-process research and development | $ 11,257 | $ 0 | ||
Grand Theft Auto | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Estimated service period | 50 months | 41 months | ||
Accounting Standards Update 2016-09 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Deferred tax assets, net | $ 24,594 | |||
Retained Earnings | Accounting Standards Update 2016-09, Forfeiture Rate Component | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cumulative effect of new accounting principle | (323) | |||
Additional Paid-in Capital | Accounting Standards Update 2016-09, Forfeiture Rate Component | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cumulative effect of new accounting principle | $ 323 | |||
Social Point | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of in-process research and development | $ 11,257 |
BASIS OF PRESENTATION AND SIG35
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Adjustments) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Adjustments [Line Items] | ||||
Change in net income | $ 25,140 | $ (29,842) | $ 82,680 | $ (31,977) |
Change in earnings per share, basic (usd per share) | $ 0.22 | $ (0.33) | $ 0.76 | $ (0.37) |
Change in earnings per share, diluted (usd per share) | $ 0.21 | $ (0.33) | $ 0.74 | $ (0.37) |
Grand Theft Auto | Restatement Adjustment | ||||
Adjustments [Line Items] | ||||
Change in net revenue | $ (78,761) | $ (183,206) | ||
Change in income from operations | (72,633) | (168,997) | ||
Change in net income | $ (57,150) | $ (145,303) | ||
Change in earnings per share, basic (usd per share) | $ (0.50) | $ (1.33) | ||
Change in earnings per share, diluted (usd per share) | $ (0.49) | $ (1.30) |
MANAGEMENT AGREEMENT (Details)
MANAGEMENT AGREEMENT (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2017 | Mar. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Restricted stock units | |||||||
Management Agreement | |||||||
Stock-based compensation expense for non-employee awards | $ 10,351 | $ 7,066 | $ 30,228 | $ 17,862 | |||
2017 Management Agreement | Restricted stock units | Maximum | |||||||
Management Agreement | |||||||
Vesting requirement for market-based restricted stock | 75th | ||||||
2017 Management Agreement | Restricted stock awards | |||||||
Management Agreement | |||||||
Vested (in shares) | 478,839 | ||||||
Forfeited (in shares) | 46,752 | ||||||
Zelnick Media Corporation | |||||||
Management Agreement | |||||||
Consulting expense benefit | $ 2,435 | $ 2,440 | $ 6,296 | $ 5,113 | |||
Zelnick Media Corporation | 2014 Management Agreement | |||||||
Management Agreement | |||||||
Annual management fee | $ 2,970 | ||||||
Zelnick Media Corporation | 2014 Management Agreement | Maximum | |||||||
Management Agreement | |||||||
Bonus per fiscal year based on the achievement of certain performance thresholds | $ 4,752 | ||||||
Zelnick Media Corporation | 2014 Management Agreement | Time-based restricted units | |||||||
Management Agreement | |||||||
Granted (in shares) | 66,122 | 107,551 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Market-based restricted units | |||||||
Management Agreement | |||||||
Granted (in shares) | 122,370 | 199,038 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Performance-based restricted units | |||||||
Management Agreement | |||||||
Granted (in shares) | 40,790 | 66,346 | |||||
Zelnick Media Corporation | 2014 Management Agreement | New IP | |||||||
Management Agreement | |||||||
Granted (in shares) | 20,396 | 33,174 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Major IP | |||||||
Management Agreement | |||||||
Granted (in shares) | 20,394 | 33,172 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Restricted stock units | |||||||
Management Agreement | |||||||
Granted (in shares) | 229,282 | 372,935 | |||||
Zelnick Media Corporation | 2017 Management Agreement | |||||||
Management Agreement | |||||||
Annual management fee | $ 3,100 | ||||||
Zelnick Media Corporation | 2017 Management Agreement | Maximum | |||||||
Management Agreement | |||||||
Bonus per fiscal year based on the achievement of certain performance thresholds | $ 7,440 | ||||||
Zelnick Media Corporation | 2017 Management Agreement | Market-based restricted stock | |||||||
Management Agreement | |||||||
Measurement period | 2 years | ||||||
Percentage of grants earned | 50.00% | ||||||
Vesting requirement for market-based restricted stock | 50th | ||||||
Zelnick Media Corporation | 2017 Management Agreement | Performance-based restricted units | |||||||
Management Agreement | |||||||
Measurement period | 2 years | ||||||
Percentage of grants earned | 50.00% | ||||||
Zelnick Media Corporation | 2017 Management Agreement | New IP | |||||||
Management Agreement | |||||||
Percentage of grants earned | 50.00% | ||||||
Zelnick Media Corporation | 2017 Management Agreement | Major IP | |||||||
Management Agreement | |||||||
Percentage of grants earned | 50.00% | ||||||
Zelnick Media Corporation | 2017 Management Agreement | Restricted stock units | |||||||
Management Agreement | |||||||
Unvested portion of the shares of restricted stock granted | 602,217 | 602,217 | 898,526 |
FAIR VALUE MEASUREMENTS - ASSET
FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 |
Assets measured at fair value on a recurring basis | |||
Total recurring fair value measurements, net | $ 1,040,380 | $ 1,173,946 | |
Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Corporate bonds | 10,246 | ||
Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 166,321 | 175,745 | |
Corporate bonds | 362,416 | 243,019 | |
Prepaid expenses and other | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 134 | 2 | |
Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | (18) | (352) | |
Other assets | |||
Assets measured at fair value on a recurring basis | |||
Private equity | 917 | 570 | |
Other long-term liabilities | |||
Assets measured at fair value on a recurring basis | |||
Contingent consideration | $ (136) | (6,465) | |
Cross-currency swap | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | (8,626) | ||
Money market funds | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 419,642 | 646,386 | |
Bank-time deposits | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 53,598 | 46,605 | |
Commercial paper | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 17,294 | 38,268 | |
Commercial paper | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 13,921 | 25,936 | |
Mutual funds | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 4,671 | 4,232 | |
Quoted prices in active markets for identical assets (level 1) | |||
Assets measured at fair value on a recurring basis | |||
Total recurring fair value measurements, net | 639,561 | 868,736 | |
Quoted prices in active markets for identical assets (level 1) | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Corporate bonds | |||
Quoted prices in active markets for identical assets (level 1) | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 166,321 | 175,745 | |
Corporate bonds | 0 | ||
Quoted prices in active markets for identical assets (level 1) | Prepaid expenses and other | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 0 | 0 | |
Quoted prices in active markets for identical assets (level 1) | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 0 | 0 | |
Quoted prices in active markets for identical assets (level 1) | Other assets | |||
Assets measured at fair value on a recurring basis | |||
Private equity | 0 | 0 | |
Quoted prices in active markets for identical assets (level 1) | Other long-term liabilities | |||
Assets measured at fair value on a recurring basis | |||
Contingent consideration | 0 | 0 | |
Quoted prices in active markets for identical assets (level 1) | Cross-currency swap | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 0 | ||
Quoted prices in active markets for identical assets (level 1) | Money market funds | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 419,642 | 646,386 | |
Quoted prices in active markets for identical assets (level 1) | Bank-time deposits | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 53,598 | 46,605 | |
Quoted prices in active markets for identical assets (level 1) | Commercial paper | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | ||
Quoted prices in active markets for identical assets (level 1) | Commercial paper | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | ||
Quoted prices in active markets for identical assets (level 1) | Mutual funds | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | ||
Significant other observable inputs (level 2) | |||
Assets measured at fair value on a recurring basis | |||
Total recurring fair value measurements, net | 400,038 | 311,105 | |
Significant other observable inputs (level 2) | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Corporate bonds | 10,246 | ||
Significant other observable inputs (level 2) | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | ||
Corporate bonds | 362,416 | 243,019 | |
Significant other observable inputs (level 2) | Prepaid expenses and other | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 134 | 2 | |
Significant other observable inputs (level 2) | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | (18) | (352) | |
Significant other observable inputs (level 2) | Other assets | |||
Assets measured at fair value on a recurring basis | |||
Private equity | 0 | 0 | |
Significant other observable inputs (level 2) | Other long-term liabilities | |||
Assets measured at fair value on a recurring basis | |||
Contingent consideration | 0 | 0 | |
Significant other observable inputs (level 2) | Cross-currency swap | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | (8,626) | ||
Significant other observable inputs (level 2) | Money market funds | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | ||
Significant other observable inputs (level 2) | Bank-time deposits | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | ||
Significant other observable inputs (level 2) | Commercial paper | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 17,294 | 38,268 | |
Significant other observable inputs (level 2) | Commercial paper | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 13,921 | 25,936 | |
Significant other observable inputs (level 2) | Mutual funds | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 4,671 | 4,232 | |
Significant unobservable inputs (level 3) | |||
Assets measured at fair value on a recurring basis | |||
Total recurring fair value measurements, net | 781 | (5,895) | |
Significant unobservable inputs (level 3) | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Corporate bonds | 0 | ||
Significant unobservable inputs (level 3) | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | 0 | |
Corporate bonds | 0 | 0 | |
Significant unobservable inputs (level 3) | Prepaid expenses and other | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 0 | 0 | |
Significant unobservable inputs (level 3) | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 0 | 0 | |
Significant unobservable inputs (level 3) | Other assets | |||
Assets measured at fair value on a recurring basis | |||
Private equity | 917 | 570 | |
Significant unobservable inputs (level 3) | Other long-term liabilities | |||
Assets measured at fair value on a recurring basis | |||
Contingent consideration | (136) | (6,465) | |
Significant unobservable inputs (level 3) | Cross-currency swap | Accrued expense and other current liabilities | |||
Assets measured at fair value on a recurring basis | |||
Foreign currency forward contracts | 0 | ||
Significant unobservable inputs (level 3) | Money market funds | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | 0 | |
Significant unobservable inputs (level 3) | Bank-time deposits | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | 0 | |
Significant unobservable inputs (level 3) | Commercial paper | Cash and cash equivalents | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | 0 | |
Significant unobservable inputs (level 3) | Commercial paper | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | 0 | 0 | |
Significant unobservable inputs (level 3) | Mutual funds | Short-term investments | |||
Assets measured at fair value on a recurring basis | |||
Cash and cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - NARRA
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Reduction in general and administrative | $ 65,951 | $ 52,939 | $ 187,378 | $ 149,367 | |
1.00% Convertible Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.00% | 1.00% | |||
Estimated fair value of convertible notes | $ 72,227 | $ 72,227 | |||
Restatement Adjustment | |||||
Debt Instrument [Line Items] | |||||
Reduction in general and administrative | $ (7,012) | ||||
Performance Period, One | |||||
Debt Instrument [Line Items] | |||||
Performance Measurement Period | 12 months | ||||
Performance Period, Two | |||||
Debt Instrument [Line Items] | |||||
Performance Measurement Period | 24 months |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 548,034 | $ 448,941 |
Gross Unrealized Gain | 33 | 226 |
Gross Unrealized Loss | (738) | (235) |
Fair Value | 547,329 | 448,932 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Amortized cost, Due in 1 year or less | 371,567 | |
Amortized cost, Due in 1-2 years | 176,467 | |
Total amortized cost | 548,034 | |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Fair value, Due in 1 year or less | 371,489 | |
Fair value, Due in 1-2 years | 175,840 | |
Total fair value | 547,329 | |
Bank time deposits | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 166,321 | 175,745 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 166,321 | 175,745 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 363,127 | 243,140 |
Gross Unrealized Gain | 18 | 98 |
Gross Unrealized Loss | (729) | (219) |
Fair Value | 362,416 | 243,019 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 13,921 | 25,938 |
Gross Unrealized Gain | 0 | 5 |
Gross Unrealized Loss | 0 | (7) |
Fair Value | 13,921 | 25,936 |
Mutual funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 4,665 | 4,118 |
Gross Unrealized Gain | 15 | 123 |
Gross Unrealized Loss | (9) | (9) |
Fair Value | $ 4,671 | $ 4,232 |
DERIVATIVE INSTRUMENTS AND HE40
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Derivative [Line Items] | |||||
Forward contracts to sell foreign currencies | $ 130,763 | $ 130,763 | $ 177,549 | ||
Forward contracts to purchase foreign currencies | 3,883 | 3,883 | $ 9,170 | ||
Derivative instrument not designated as hedging instruments, gain (loss), net | (620) | $ 11,158 | (15,325) | $ 11,731 | |
Cash Flow Hedging | Cross-currency swap | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 129,000 | $ 129,000 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 27,717 | $ 15,530 |
Parts and supplies | 3,140 | 793 |
Inventory | 30,857 | 16,323 |
Estimated product returns included in inventory | $ 423 | $ 529 |
SOFTWARE DEVELOPMENT COSTS AN42
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | $ 39,369 | $ 39,369 | $ 41,721 | |||
Software development costs and licenses, Non-current | 586,866 | 586,866 | 381,910 | |||
Software development impairment charges | 0 | $ 7,731 | 960 | $ 19,325 | ||
Software development costs and royalties | $ 84,176 | |||||
Research and development | 23,251 | |||||
Capitalized costs, net | $ 5,361 | |||||
Software development costs, internally developed | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | 30,420 | 30,420 | 28,959 | |||
Software development costs and licenses, Non-current | 477,883 | 477,883 | 310,229 | |||
Software development costs, externally developed | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | 6,611 | 6,611 | 5,455 | |||
Software development costs and licenses, Non-current | 108,858 | 108,858 | 71,407 | |||
Licenses | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | 2,338 | 2,338 | 7,307 | |||
Software development costs and licenses, Non-current | 125 | 125 | $ 274 | |||
Restricted stock units | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Shares reclassified (in shares) | 5,550,000 | |||||
Additional Paid-in Capital | Restricted stock units | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Shares reclassified | $ 74,707 | $ 74,707 | ||||
Other long-term liabilities | Restricted stock units | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Shares reclassified | $ (74,707) | |||||
Incremental cost | $ 112,789 |
ACCRUED EXPENSES AND OTHER CU43
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Liabilities, Current [Abstract] | ||
Software development royalties | $ 532,665 | $ 492,133 |
Compensation and benefits | 82,703 | 44,843 |
Business reorganization | 71,105 | 65,935 |
Licenses | 66,113 | 37,019 |
Marketing and promotions | 56,189 | 21,030 |
Deferred acquisition payments | 25,000 | 25,000 |
Other | 73,570 | 64,915 |
Accrued expenses and other current liabilities | $ 907,345 | $ 750,875 |
DEBT - CREDIT AGREEMENT (Detail
DEBT - CREDIT AGREEMENT (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2017USD ($) | Apr. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | |
Credit Agreement | |||||||
Credit Agreement | |||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||
Amount of additional borrowings by which maximum borrowing capacity may be increased | 100,000,000 | ||||||
Outstanding borrowings | 0 | 0 | 0 | $ 0 | |||
Credit Agreement Availability | |||||||
Minimum liquidity level allowing unrestricted access to the Credit Agreement | 300,000,000 | ||||||
Available borrowings | 98,325,000 | 98,325,000 | 98,325,000 | 98,320,000 | |||
Outstanding letters of credit | $ 1,664,000 | 1,664,000 | 1,664,000 | $ 1,664,000 | |||
Interest expense and fees | $ 111,000 | $ 111,000 | $ 332,000 | $ 332,000 | |||
Trailing period for measurement of interest coverage ratio | 12 months | ||||||
Maximum liquidity level triggering the requirement to maintain an interest coverage ratio of one to one | $ 30,000,000 | ||||||
Credit Agreement | Minimum | |||||||
Credit Agreement | |||||||
Monthly fee on unused available balance (as a percent) | 0.25% | ||||||
Credit Agreement Availability | |||||||
Interest coverage ratio | 1 | ||||||
Credit Agreement | Maximum | |||||||
Credit Agreement | |||||||
Monthly fee on unused available balance (as a percent) | 0.375% | ||||||
Credit Agreement | Base rate | |||||||
Credit Agreement | |||||||
Interest rate, variable rate basis | base rate | ||||||
Interest rate at end of period | 4.50% | 4.50% | 4.50% | ||||
Credit Agreement | Base rate | Minimum | |||||||
Credit Agreement | |||||||
Interest rate added to base rate | 0.25% | ||||||
Credit Agreement | Base rate | Maximum | |||||||
Credit Agreement | |||||||
Interest rate added to base rate | 0.75% | ||||||
Credit Agreement | LIBOR | |||||||
Credit Agreement | |||||||
Interest rate, variable rate basis | LIBOR | ||||||
Interest rate at end of period | 1.57% | 1.57% | 1.57% | ||||
Credit Agreement | LIBOR | Minimum | |||||||
Credit Agreement | |||||||
Interest rate added to base rate | 1.25% | ||||||
Credit Agreement | LIBOR | Maximum | |||||||
Credit Agreement | |||||||
Interest rate added to base rate | 1.75% | ||||||
Letter of Credit | |||||||
Credit Agreement | |||||||
Maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 |
DEBT - 1.00 CONVERTIBLE NOTES (
DEBT - 1.00 CONVERTIBLE NOTES (Details) | Jul. 17, 2013USD ($) | Jun. 18, 2013USD ($)label$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Jul. 12, 2013USD ($) |
Convertible Notes | ||||||||
Interest and other, net | $ 3,374,000 | $ (3,715,000) | $ (2,403,000) | $ (15,298,000) | ||||
1.00% Convertible Notes due 2018 | ||||||||
Convertible Notes | ||||||||
Interest rate | 1.00% | 1.00% | ||||||
Estimated fair value of convertible notes | $ 72,227,000 | $ 72,227,000 | ||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | ||||||||
Convertible Notes | ||||||||
Principal amount at issuance | $ 250,000,000 | |||||||
Interest rate | 1.00% | |||||||
Percentage of par value at which debt was issued | 98.50% | |||||||
Proceeds from issuance of debt | $ 283,188,000 | $ 246,250,000 | ||||||
Period of overallotment option to purchase additional amount of debt granted to underwriters | 30 days | |||||||
Amount pertaining to exercise of over-allotment of debt by underwriters | $ 37,500,000 | |||||||
Initial conversion rate of common stock per $1000 of principal amount of Convertible Notes (in shares) | 46.4727 | |||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | |||||||
Initial conversion price of convertible notes into common stock (in dollars per share) | $ / shares | $ 21.52 | |||||||
Number of shares to be converted into common stock | label | 13,361,000 | |||||||
Converted instrument amount | 40,088,000 | 253,986,000 | ||||||
Interest and other, net | 700,000 | 4,900,000 | ||||||
Estimated fair value of convertible notes | $ 225,567,000 | |||||||
Non-convertible borrowing rate | 6.15% | |||||||
Carrying amount of the equity component of convertible notes | 57,621,000 | |||||||
Banking, legal and accounting fees related to issuance of convertible notes | $ 2,815,000 | |||||||
Banking, legal and accounting fees related to issuance of convertible notes allocated to the liability component | $ 2,209,000 | |||||||
Banking, legal and accounting fees related to issuance of convertible notes allocated to the equity component | $ 606,000 | |||||||
Principal amount of Convertible Notes | 14,163,000 | 14,163,000 | $ 268,149,000 | |||||
The value by which Convertible Notes exceed the principal value | $ 58,064,000 | $ 470,456,000 | ||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | Maximum | ||||||||
Convertible Notes | ||||||||
Additional amount of debt for purchase of which overallotment option is granted to underwriters | $ 37,500,000 | |||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | Conversion Terms at Holder's Option | ||||||||
Convertible Notes | ||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | |||||||
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent) | 130.00% | |||||||
Ratio of closing share price to conversion price as a condition for conversion of Convertible Notes (as a percent) | 98.00% | |||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | Conversion Terms at Holder's Option | Minimum | ||||||||
Convertible Notes | ||||||||
Number of trading days triggering conversion of redemption feature | 20 days | |||||||
Number of trading days in the measurement period that the entity's common stock closing price to conversion price must exceed a specified percentage of conversion price to trigger conversion feature of notes | label | 5 | |||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | Conversion Terms at Holder's Option | Maximum | ||||||||
Convertible Notes | ||||||||
Number of trading days triggering conversion of redemption feature | 30 days | |||||||
Number of trading days in the measurement period that the entity's common stock closing price to conversion price must exceed a specified percentage of conversion price to trigger conversion feature of notes | label | 10 | |||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | Conversion Terms upon Occurrence of Certain Fundamental Company Changes | ||||||||
Convertible Notes | ||||||||
Percentage of principal amount for computation of redemption price | 100.00% | |||||||
Convertible Debt | 1.00% Convertible Notes due 2018 | Conversion Terms, Event of Default | ||||||||
Convertible Notes | ||||||||
Minimum percentage of aggregate principal amount held by bondholders to declare notes due and payable | 25.00% | |||||||
In event of default arising out of certain bankruptcy events, the percentage of principal amount due and payable | 100.00% | |||||||
Convertible Debt | October 2017 Settlement Dates | ||||||||
Convertible Notes | ||||||||
Converted instrument amount | $ 2,000 |
DEBT - CONVERTIBLE DEBT INFORMA
DEBT - CONVERTIBLE DEBT INFORMATION (Details) - 1.00% Convertible Notes due 2018 - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | Jun. 18, 2013 |
Debt Instrument [Line Items] | |||
Interest rate | 1.00% | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.00% | ||
Additional paid-in capital | $ 35,784 | $ 35,784 | |
Principal amount of Convertible Notes | 14,163 | 268,149 | |
Unamortized discount of the liability component | 311 | 15,751 | |
Carrying amount of debt issuance costs | 14 | 469 | |
Net carrying amount of Convertible Notes | $ 13,838 | $ 251,929 |
DEBT - INTEREST EXPENSE COMPONE
DEBT - INTEREST EXPENSE COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 18, 2013 | |
Debt Instrument [Line Items] | |||||
Non-cash amortization of discount on Convertible Notes | $ 15,424 | $ 17,870 | |||
Amortization of debt issuance costs | $ 554 | 1,078 | |||
1.00% Convertible Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.00% | 1.00% | |||
Convertible Debt | 1.00% Convertible Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 1.00% | ||||
Cash interest expense (coupon interest expense) | $ (60) | $ 698 | $ 519 | 2,115 | |
Non-cash amortization of discount on Convertible Notes | 1,509 | 3,285 | 15,424 | 10,289 | |
Amortization of debt issuance costs | 48 | 99 | 471 | 333 | |
Total interest expense related to Convertible Notes | $ 1,497 | $ 4,082 | $ 16,414 | $ 12,737 |
EARNINGS (LOSS) PER SHARE ("E48
EARNINGS (LOSS) PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Computation of Basic earnings (loss) per share: | ||||
Net income (loss) | $ 25,140 | $ (29,842) | $ 82,680 | $ (31,977) |
Less: net income allocated to participating securities | (62) | 0 | (211) | 0 |
Net income (loss) for basic earnings (loss) per share calculation | $ 25,078 | $ (29,842) | $ 82,469 | $ (31,977) |
Total weighted average shares outstanding—basic (in shares) | 113,991 | 90,428 | 109,010 | 86,796 |
Less: weighted average participating shares outstanding (in shares) | (279) | 0 | (278) | 0 |
Weighted average common shares outstanding—basic (in shares) | 113,712 | 90,428 | 108,732 | 86,796 |
Basic earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.33) | $ 0.76 | $ (0.37) |
Earnings Per Share, Diluted [Abstract] | ||||
Net income (loss) | $ 25,140 | $ (29,842) | $ 82,680 | $ (31,977) |
Less: net income allocated to participating securities | (59) | 0 | (206) | 0 |
Net income (loss) for diluted earnings (loss) per share calculation | $ 25,081 | $ (29,842) | $ 82,474 | $ (31,977) |
Weighted average common shares outstanding—basic (in shares) | 113,712 | 90,428 | 108,732 | 86,796 |
Add: dilutive effect of common stock equivalents (in shares) | 4,206 | 0 | 2,708 | 0 |
Weighted average common shares outstanding—diluted (in shares) | 117,918 | 90,428 | 111,440 | 86,796 |
Less: weighted average participating shares outstanding (in shares) | (279) | 0 | (278) | 0 |
Weighted average common shares outstanding- diluted (in shares) | 117,639 | 90,428 | 111,162 | 86,796 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.21 | $ (0.33) | $ 0.74 | $ (0.37) |
EARNINGS (LOSS) PER SHARE ("E49
EARNINGS (LOSS) PER SHARE ("EPS") (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares excluded from calculation of EPS (in shares) | 4,912,000 | 4,912,000 | ||
Software development costs | $ 23,251 | |||
Restricted stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Restricted stock awards, vested (in shares) | 2,877,000 | |||
Restricted stock awards, granted (in shares) | 2,303,000 | |||
Restricted stock awards, canceled (in shares) | 1,575,000 | |||
Expenses reversed | $ 17,214 | |||
Software development costs | $ (53,569) |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in accumulated other comprehensive loss | ||
Balance | $ (47,142) | $ (37,896) |
Other comprehensive income (loss) before reclassifications | 14,060 | (10,288) |
Amounts reclassified from accumulated other comprehensive loss | 1,987 | 9 |
Balance | (31,095) | (48,175) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss | ||
Balance | (47,666) | (38,580) |
Other comprehensive income (loss) before reclassifications | 23,391 | (10,067) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance | (24,275) | (48,647) |
Unrealized gain (loss) on forward contracts | ||
Changes in accumulated other comprehensive loss | ||
Balance | 600 | 600 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance | 600 | 600 |
Unrealized gain (loss) on cross-currency swap | ||
Changes in accumulated other comprehensive loss | ||
Balance | 0 | |
Other comprehensive income (loss) before reclassifications | (8,626) | |
Amounts reclassified from accumulated other comprehensive loss | 1,987 | |
Balance | (6,639) | |
Unrealized gain (loss) on available-for- sales securities | ||
Changes in accumulated other comprehensive loss | ||
Balance | (76) | 84 |
Other comprehensive income (loss) before reclassifications | (705) | (221) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 9 |
Balance | $ (781) | $ (128) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - LEGAL AND OTHER PROCEEDINGS (Details) $ in Thousands | Apr. 12, 2016USD ($) |
Legal and Other Proceedings | |
Damages claimed (at least) | $ 150,000 |
BUSINESS REORGANIZATION (Detail
BUSINESS REORGANIZATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 700 | $ 0 | $ 13,012 | $ 0 |
Fiscal 2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 700 | 13,012 | ||
Fiscal 2018 Plan | Accrued Expenses and Other Current Liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 5,170 | 5,170 | ||
Fiscal 2018 Plan | Other long-term liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 4,813 | 4,813 | ||
Reorganization Activities | Fiscal 2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 3,029 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Transition tax on accumulated foreign earnings | $ 18,078 | |||
Increase to deferred income tax asset | 47,677 | |||
Decrease to valuation allowance | $ (47,677) | $ (47,677) | ||
Income tax (benefit) expenses related to TCJA | $ (6,202) | |||
Statutory rate | 31.55% | |||
Effective rate | (105.60%) | (82.30%) | ||
Valuation allowance, increase (decrease) | $ (9,773) | $ (14,437) | ||
Increase in tax benefit, tax credits | (8,891) | |||
Unrecognized tax benefits (decrease) | (12,555) | (11,174) | ||
Benefit from income taxes | (12,914) | $ (2,282) | (37,331) | $ (2,169) |
Accounting Standards Update 2016-09 | Additional Paid-in Capital | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Excess tax benefits | $ 4,131 | $ 28,624 |
SHARE REPURCHASE (Details)
SHARE REPURCHASE (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($)shares | |
Equity [Abstract] | |
Authorized repurchase amount (in shares) | 14,217,683 |
Shares repurchased (in shares) | 1,063,750 |
Shares repurchased | $ | $ 110,147 |
Payments for commissions | $ | $ 10 |
Shares repurchased under program (in shares) | 6,235,080 |
Remaining number of shares authorized to be repurchased (in shares) | 7,982,603 |