Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2018 | Oct. 26, 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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 113,872,075 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 462,347 | $ 808,973 |
Short-term investments | 562,952 | 615,406 |
Restricted cash | 370,747 | 437,398 |
Accounts receivable, net of allowances of $350 and $54,290 at September 30, 2018 and March 31, 2018, respectively | 534,633 | 247,649 |
Inventory | 40,541 | 15,162 |
Software development costs and licenses | 36,912 | 33,284 |
Deferred cost of goods sold | 20,957 | 117,851 |
Prepaid expenses and other | 162,647 | 133,454 |
Total current assets | 2,191,736 | 2,409,177 |
Fixed assets, net | 110,900 | 102,478 |
Software development costs and licenses, net of current portion | 794,120 | 639,369 |
Deferred cost of goods sold, net of current portion | 489 | 26,719 |
Goodwill | 389,816 | 399,530 |
Other intangibles, net | 87,318 | 103,681 |
Other assets | 80,810 | 56,887 |
Total assets | 3,655,189 | 3,737,841 |
Current liabilities: | ||
Accounts payable | 77,298 | 35,029 |
Accrued expenses and other current liabilities | 853,467 | 914,748 |
Deferred revenue | 559,024 | 777,152 |
Total current liabilities | 1,489,789 | 1,726,929 |
Long-term debt | 0 | 8,068 |
Non-current deferred revenue | 15,407 | 355,589 |
Other long-term liabilities | 205,554 | 158,285 |
Total liabilities | 1,710,750 | 2,248,871 |
Commitments and Contingencies (See Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 5,000 shares authorized; no shares issued and outstanding at September 30, 2018 and March 31, 2018 | 0 | 0 |
Common stock, $.01 par value, 200,000 shares authorized; 134,106 and 132,743 shares issued and 113,804 and 114,038 outstanding at September 30, 2018 and March 31, 2018, respectively | 1,341 | 1,327 |
Additional paid-in capital | 1,951,128 | 1,888,039 |
Treasury stock, at cost; 20,302 and 18,705 common shares at September 30, 2018 and March 31, 2018, respectively | (611,680) | (458,180) |
Retained earnings | 640,849 | 73,516 |
Accumulated other comprehensive loss | (37,199) | (15,732) |
Total stockholders' equity | 1,944,439 | 1,488,970 |
Total stockholders' equity | $ 3,655,189 | $ 3,737,841 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances (in dollars) | $ 350 | $ 54,290 |
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 | 134,106,000 | 132,743,000 |
Common stock, shares outstanding | 113,804,000 | 114,038,000 |
Treasury stock, shares | 20,302,000 | 18,705,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Income Statement [Abstract] | |||||
Net revenue | $ 492,667 | $ 443,562 | $ 880,649 | $ 861,778 | |
Cost of goods sold | 234,880 | 246,548 | 366,245 | 441,117 | |
Gross profit | 257,787 | 197,014 | 514,404 | 420,661 | |
Selling and marketing | 94,165 | 76,914 | 152,471 | 129,128 | |
General and administrative | 67,320 | 60,824 | 135,055 | 121,427 | |
Research and development | 60,565 | 49,999 | 111,277 | 92,268 | |
Depreciation and amortization | 9,751 | 18,883 | 19,011 | 26,626 | |
Business reorganization | 0 | 1,713 | (242) | 12,312 | |
Total operating expenses | 231,801 | 208,333 | 417,572 | 381,761 | |
Income (loss) from operations | 25,986 | (11,319) | 96,832 | 38,900 | |
Interest and other, net | 4,975 | (2,969) | 11,576 | (5,777) | |
Income (loss) before income taxes | 30,961 | (14,288) | 108,408 | 33,123 | |
Provision for (benefit from) income taxes | 5,594 | (11,552) | 11,348 | (24,417) | |
Net income (loss) | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,540 | [1] |
Earnings per share: | |||||
Basic earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.03) | $ 0.86 | $ 0.54 | |
Diluted earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.03) | $ 0.84 | $ 0.53 | |
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,540 | [1] |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 2,482 | 14,297 | (24,335) | 23,776 | |
Cash flow hedges: | |||||
Change in unrealized gains (losses) | 878 | (5,217) | 1,869 | (5,217) | |
Tax effect on effective cash flow hedges | (24) | 0 | 109 | 0 | |
Change in fair value of effective cash flow hedge | 854 | (5,217) | 1,978 | (5,217) | |
Unrealized loss, net on available-for-sale securities, net of taxes | 481 | 27 | 890 | 111 | |
Change in fair value of available for sale securities | 481 | 27 | 890 | 111 | |
Other comprehensive income (loss) | 3,817 | 9,107 | (21,467) | 18,670 | |
Comprehensive income | $ 29,184 | $ 6,371 | $ 75,593 | $ 76,210 | |
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | [1] | Mar. 31, 2018 | |||
Operating activities: | ||||||||
Net income | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,540 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Amortization and impairment of software development costs and licenses | 20,269 | 38,862 | ||||||
Depreciation | 18,753 | 15,369 | ||||||
Amortization and impairment of intellectual property | 12,272 | 17,286 | ||||||
Impairment of in-process research and development | 0 | 11,257 | ||||||
Stock-based compensation | 54,941 | 83,083 | ||||||
Amortization of discount on Convertible Notes | 91 | 13,915 | ||||||
Gain on conversions of Convertible Notes | 0 | (4,141) | ||||||
Amortization of debt issuance costs | 32 | 482 | ||||||
Other, net | (1,737) | 1,194 | ||||||
Changes in assets and liabilities, net of impact of adoption of Topic 606: | ||||||||
Accounts receivable | (233,236) | (209,198) | ||||||
Inventory | (25,925) | (18,721) | ||||||
Software development costs and licenses | (133,008) | (146,009) | ||||||
Prepaid expenses and other assets | (6,681) | (45,089) | ||||||
Deferred revenue | 12,601 | 65,671 | ||||||
Deferred cost of goods sold | 6,867 | 4,379 | ||||||
Accounts payable, accrued expenses and other liabilities | (28,334) | 246,472 | ||||||
Net cash (used in) provided by operating activities | (206,035) | 132,352 | ||||||
Investing activities: | ||||||||
Change in bank time deposits | 33,604 | (40,000) | ||||||
Proceeds from available-for-sale securities | 114,266 | 111,480 | ||||||
Purchases of available-for-sale securities | (95,888) | (134,273) | ||||||
Purchases of fixed assets | (29,144) | (32,717) | ||||||
Asset acquisition | 0 | (25,965) | ||||||
Business acquisition | (3,149) | 0 | ||||||
Net cash provided by (used in) investing activities | 19,689 | (121,475) | ||||||
Financing activities: | ||||||||
Tax payment related to net share settlements on restricted stock awards | (63,967) | (86,125) | ||||||
Repurchase of common stock | (153,500) | 0 | ||||||
Net cash used in financing activities | (217,467) | (86,125) | ||||||
Effects of foreign currency exchange rates on cash and cash equivalents | (9,464) | 12,761 | ||||||
Net change in cash, cash equivalents, and restricted cash | (413,277) | (62,487) | ||||||
Cash, cash equivalents, and restricted cash, beginning of year | 1,246,371 | 1,281,214 | $ 1,281,214 | [1] | ||||
Cash, cash equivalents, and restricted cash, end of period | $ 833,094 | $ 1,218,727 | [1] | $ 833,094 | $ 1,218,727 | $ 1,246,371 | ||
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2018 | |
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 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 our opinion, 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 intercompany 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 ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under U.S. GAAP, 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 U.S. GAAP have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"), 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, 2018 . Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation. Recently Adopted Accounting Pronouncements Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15: Intangibles - Goodwill and Other - Internal-Use Software - (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning December 15, 2019 (April 1, 2020 for the Company), with early adoption permitted. ASU 2018-15 is required to be applied either retrospectively or prospectively to all implementation costs after the date of adoption. We early adopted this update effective July 1, 2018 as the standard aligns with how we are currently accounting for implementation costs incurred in a cloud computing arrangement. The adoption did not have an impact on our Condensed 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 by requiring that restricted cash and restricted cash equivalents be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. This standard is effective for fiscal years beginning after December 15, 2017 (April 1, 2018 for the Company), including interim periods within those fiscal years. We adopted the new standard during the first quarter of fiscal 2019 and applied the standard retrospectively for all periods presented. The application of this new standard resulted in a decrease of net cash from operating activities of $66,651 and an increase of net cash from operating activities of $131,283 on our Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2018 and 2017 , respectively. In our Annual Report on Form 10-K for the year ending March 31, 2018, the impact would have been an increase in net cash from operating activities of $99,580 and $76,649 for the fiscal years ended March 31, 2018 and 2017 , respectively. Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting . This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018 (April 1, 2019 for the Company), including interim periods within those fiscal years. Early adoption is permitted. We early adopted this update effective April 1, 2018 to simplify the accounting for non-employee stock-based awards so that it is better aligned with the current guidance for employee stock-based awards. The application of this new standard did not have a significant impact to our Condensed Consolidated Financial Statements for the three and six months ended September 30, 2018 , as our last re-measurement date for non-employee awards was March 31, 2018. The adoption of this ASU results in a change to our accounting policy for non-employee stock-based awards. 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 are applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this update effective April 1, 2018. The adoption did not have an impact on our Condensed Consolidated Financial Statements. 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. On April 1, 2018, we adopted the new accounting standard and related amendments (the “New Revenue Accounting Standard”) using the modified retrospective method. As a result, we have updated our significant accounting policy disclosure for revenue recognition herein. Impact of Adopting New Revenue Accounting Standard We elected to apply the New Revenue Accounting Standard only to contracts not completed as of the adoption date. For contracts that were modified before the date of adoption, we elected to reflect the aggregate effect of all modifications when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the New Revenue Accounting Standard as an adjustment to the opening balance of retained earnings, net of tax. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect adjustment recorded to our retained earnings was $470,273 , net of tax. The most significant impacts of adopting the New Revenue Accounting Standard are: • The elimination of the requirement for vendor-specific objective evidence (“VSOE”) of fair value for software products that offer offline gameplay functionality and benefit from meaningful game related services which may include online functionality that is dependent on our online support services and/or additional free content updates. Under the prior revenue accounting guidance, for software products with multiple deliverables for which we did not have VSOE for our game related service deliverables, we recognized revenue ratably over the estimated service period. Under the New Revenue Accounting Standard, we allocate the sales price and recognize revenue for the offline software upon delivery and the remainder over the estimated service period. This difference in accounting primarily affects revenue recognition from Grand Theft Auto V and our NBA 2K franchise, where the majority of the sales price will be allocated to the offline software and recognized upon transfer of control to our customers, and the remaining amounts allocated to the game related service performance obligation and recognized over the estimated service period. • For performance obligations that are satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. Previously, our estimated service period was based on the economic game life. • Under the New Revenue Accounting Standard, we are able to recognize revenue to the extent it is probable that a significant reversal will not occur even if we do not have a right to invoice as of the reporting date. Contract assets are classified within Prepaid expenses and other on the Condensed Consolidated Balance Sheet. • The classification of allowances for estimated price protection, reserves for returns and other allowances as refund liabilities. Such allowances were previously recorded as contra-Accounts receivable and now are classified within Accrued expenses and other current liabilities on the Consolidated Balance Sheet. As a result of adopting the New Revenue Accounting Standard the following adjustments were made to our Consolidated Balance Sheet at April 1, 2018, which also reflect the changes related to income tax accounts included in Prepaid expenses and other, Other assets, Accrued expenses and other current liabilities, and Other long-term liabilities: March 31, 2018 Adjustments April 1, 2018 ASSETS Accounts receivable, net $ 247,649 $ 53,940 $ 301,589 Software development costs and licenses 33,284 (11,096 ) 22,188 Deferred cost of goods sold 117,851 (89,867 ) 27,984 Prepaid expenses and other 133,454 33,620 167,074 Deferred cost of goods sold, net of current portion 26,719 (25,687 ) 1,032 Other assets 56,887 51,430 108,317 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 914,748 $ 69,678 $ 984,426 Deferred revenue 777,152 (230,144 ) 547,008 Non-current deferred revenue 355,589 (336,456 ) 19,133 Other long-term liabilities 158,285 34,336 192,621 Retained earnings 73,516 470,273 543,789 Accumulated other comprehensive loss (15,732 ) 4,653 (11,079 ) Recently Issued Accounting Pronouncements Accounting for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning December 15, 2019 (April 1, 2020 for the Company), with early adoption permitted. Certain disclosures in ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements. 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 Recognition Refer to Note 1 to our Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for our revenue recognition accounting policy as it relates to revenue transactions prior to April 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from April 1, 2018 and thereafter, which are accounted for in accordance with Topic 606 . We derive revenue primarily from the sale of our interactive entertainment content, principally for console gaming systems such as the Sony Computer Entertainment, Inc. ("Sony") PlayStation®4 ("PS4") and PlayStation®3 ("PS3"), Microsoft Corporation ("Microsoft") Xbox One® ("Xbox One") and Xbox 360® ("Xbox 360"), the Nintendo Switch, and personal computers ("PC"), including smartphones and tablets. Our interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. We may also sell separate downloadable add-on content to supplement our full game software products. Certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. We determine revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sales of software products and game related services when control of the promised products and services is transferred to our customers and our performance obligations under the contract have been satisfied. Revenue is recorded net of transaction taxes assessed by governmental authorities such as sales, value-added and other similar taxes. Our software products are sold as full games, which typically provide access to the main game content, primarily for console and PC. Generally our full game software products deliver a license of our intellectual property that provides a functional offline gaming experience (i.e., one that does not require an Internet connection to access the main game content or other significant game related services). We recognize revenue related to the license of our intellectual property that provides offline functionality at the time control of the products have been transferred to our customers. In addition, some of our full game software products that provide a functional offline gaming experience may also include significant game related services delivered over time, such as online functionality that is dependent upon online support services and/or additional free content updates. For full game sales that offer offline functionality and significant game related services we evaluate whether the license of our intellectual property and the game related services are distinct and separable. This evaluation is performed for each software product sold. If we determine that our software products contain a license of intellectual property separate from the game related services (i.e. multiple performance obligations), we estimate a standalone selling price for each identified performance obligation. We allocate the transaction price to each performance obligation using a relative standalone selling price method (the transaction price is allocated to a performance obligation based on the proportion of the standalone selling price of each performance obligation to the sum of the standalone selling prices for all performance obligations in the contract). For the portion of the transaction price allocable to the license, revenue is recognized when the customer takes control of the product. For the portion of the transaction price allocated to game related services, revenue is recognized ratably over the estimated service period for the related software product. We also defer related product costs and recognize the costs as the revenues are recognized. Certain of our full game software products are delivered primarily as an online gaming experience with substantially all gameplay requiring online access to our game related services. We recognize revenue for full game software products that are dependent on our game related services over an estimated service period. For our full game online software products we also defer related product costs and recognize the costs as the revenue is recognized. In addition to sales of our full game software products, certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. Revenue from the sale of virtual currency and in-game purchases is deferred and recognized ratably over the estimated service period, which is the user life. We also sell separate downloadable add-on content to supplement our full game software products. Revenue from the sale of separate downloadable add-on content is evaluated for revenue recognition on the same basis as our full game software products. Certain software products are sold to customers with a “street date” (the earliest date these products may be sold by retailers). For these products, we recognize revenue on the later of the street date or the sale date as this is generally when we have transferred control of our software products. In addition, some of our software products are sold as digital downloads. Revenue from digital downloads is generally recognized when the download is made available to the end user by a third-party digital storefront. For the sale of physical software products, the recognition of revenue allocated to game related services does not begin until the product is sold-through by our customer to the end user. We currently estimate sell-through to the end user for all our titles to be approximately two months after we have sold-in the software products to our retailers. Determining the estimated sell-through period is subjective and requires significant management judgment and estimates. Our payment terms and conditions vary by customer and typically provide net 30 to 60 day terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. In certain countries, we use third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to future updates. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee when we transfer control of the upfront license of intellectual property (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Royalty payments in excess of the minimum guarantee are generally recognized when the licensed product is sold by the licensee. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. Contract assets generally consist of arrangements for which we have recognized revenue to the extent it is probable that significant reversal will not occur but do not have a right to invoice as of the reporting date. Contract assets are recorded within Prepaid expenses and other on our Consolidated Balance Sheet. Our allowance for doubtful accounts are typically immaterial and, if required, are based on our best estimate of probable losses inherent in our accounts receivable balance. Deferred revenue is comprised primarily of unsatisfied revenue related to the portion of the transaction price allocable to game related services of our full game software products. These sales are typically invoiced at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue may also include amounts related to software products with future street dates. Refer to Note 2 - Revenue from Contracts with Customers for further information, including changes in deferred revenue during the period. Principal Agent Considerations We offer certain software products via third party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve's Steam, Apple's App Store, and the Google Play Store. For sales of our software products via third party digital storefronts, we determine whether or not we are acting as the principal in the sale to the end user, which we consider in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that we use in evaluating these sales transactions include, but are not limited to, the following: • the underlying contract terms and conditions between the various parties to the transaction; • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, and Valve's Steam, we have determined we are not the principal in the sales transaction to the end user and therefore we report revenue based on the consideration received from the digital storefront. For sales arrangements via Apple's App Store and the Google Play Store, we have determined that we are the principal to the end user and thus report revenue on a gross basis and mobile platform fees are reported within Cost of goods sold. Shipping and Handling Shipping and handling costs are incurred to move physical software products to customers. We recognize all shipping and handling costs as an expense in Cost of goods sold because we are responsible for delivery of the product to our customers prior to transfer of control to the customer. Estimated Service Period For performance obligations satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. We consider a variety of data points when determining and subsequently reassessing the estimated service period for players of our software products. Primarily, we review the weighted average number of days between players’ first and last days played online. We also consider known online trends, the service periods of our previously released software products, and, to the extent publicly available, the service periods of our competitors’ software products that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of our game related services to our customers, as it is the best representation of the period during which our customers play our software products. Determining the estimated service period is subjective and requires significant management judgment and estimates. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software products are generally between 9 and 15 months depending on the software product. Revenue Arrangements with Multiple Performance Obligations Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment as we typically do not have observable standalone selling prices for our game related service performance obligations. For software products in which the software license has offline functionality and benefits from meaningful game related services, which may include online functionality that is dependent on our online support services and/or additional free content updates, we believe we have separate performance obligations for the license of the intellectual property and the game related services. Significant judgment and estimates are also required to determine the standalone selling price for each distinct performance obligation and whether a discount needs to be allocated based on the relative standalone selling price of our products and services. To estimate the standalone selling price for each performance obligation, we consider, to the extent available, a variety of data points such as past selling prices of the product or other similar products, competitor pricing, and our market data. If observable pricing is not available, we use an expected cost plus margin approach taking into account relevant costs including product development, post-release support, marketing and licensing costs. This evaluation is performed on a product by product basis. Price Protection and Allowances for Returns We grant price protection and accept returns in connection with our distribution arrangements. Following reductions in the price of our physical software products, we grant price protection to permit customers to take credits against amounts they owe us with respect to merchandise unsold by them. Our customers must satisfy certain conditions to entitle them to receive price protection or return products, including compliance with applicable payment terms and confirmation of field inventory levels. At contract inception and at each subsequent reporting period, we make estimates of future price protection and product returns related to current period software product revenue. We estimate the amount of future price protection and returns for software products based upon, among other factors, historical experience and performance of the titles in similar genres, historical performance of the hardware platform, customer inventory levels, analysis of sell-through rates, sales force and retail customer feedback, industry pricing, market conditions, and changes in demand and acceptance of our products by consumers. Revenue is recognized after deducting the estimated price protection and allowances for returns, which are accounted for as variable consideration. Price protection and allowances for returns are considered refund liabilities and are reported within Accrued expenses and other current liabilities on our Consolidated Balance Sheet. Sales Incentives We enter into various sales incentive arrangements with our customers, such as rebates, discounts, and cooperative marketing. These incentives are considered adjustments to the transaction price of our software products and are reflected as reductions to revenue. Sales incentives incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are included in Selling and marketing expense if there is a separate identifiable benefit and the benefit’s fair value can be established. Otherwise, such sales incentives are reflected as a reduction to revenue and are considered refund liabilities, which are reported within Accrued expenses and other current liabilities in our Consolidated Balance Sheet. Significant Estimates Significant management judgment and estimates must be used in connection with many of the determinations described above, such as estimating the fair value allocation to distinct and separable performance obligations, the service period over which to defer recognition of revenue, the time it takes our physical products to sell-through to end users, and the amounts of future price protection and allowance for returns. We believe we can make reliable estimates. However, actual results may differ from initial estimates due to changes in circumstances, market conditions, and assumptions. Adjustments to estimates are recorded in the period in which they become known. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Impacts on financial statement line items Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the three months ended September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard Net revenue $ 492,667 $ 457,441 $ 35,226 Cost of goods sold 234,880 193,483 41,397 Gross profit 257,787 263,958 (6,171 ) Selling and marketing 94,165 94,165 — General and administrative 67,320 67,320 — Research and development 60,565 60,565 — Depreciation and amortization 9,751 9,751 — Total operating expenses 231,801 231,801 — Income from operations 25,986 32,157 (6,171 ) Interest and other, net 4,975 4,935 40 Income before income taxes 30,961 37,092 (6,131 ) Provision for (benefit from) income taxes 5,594 (29,670 ) 35,264 Net income $ 25,367 $ 66,762 $ (41,395 ) Earnings per share: Basic earnings per share $ 0.22 $ 0.59 $ (0.37 ) Diluted earnings per share $ 0.22 $ 0.58 $ (0.36 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the six months ended September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard Net revenue $ 880,649 $ 859,422 $ 21,227 Cost of goods sold 366,245 350,572 15,673 Gross profit 514,404 508,850 5,554 Selling and marketing 152,471 152,471 — General and administrative 135,055 135,055 — Research and development 111,277 111,277 — Business reorganization (242 ) (242 ) — Depreciation and amortization 19,011 19,011 — Total operating expenses 417,572 417,572 — Income from operations 96,832 91,278 5,554 Interest and other, net 11,576 10,948 628 Income before income taxes 108,408 102,226 6,182 Provision for (benefit from) income taxes 11,348 (31,640 ) 42,988 Net income $ 97,060 $ 133,866 $ (36,806 ) Earnings per share: Basic earnings per share $ 0.86 $ 1.18 $ (0.32 ) Diluted earnings per share $ 0.84 $ 1.16 $ (0.32 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Balance Sheet as of September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard ASSETS Accounts receivable, net $ 534,633 $ 488,622 $ 46,011 Software development costs and licenses 36,912 50,027 (13,115 ) Deferred cost of goods sold 20,957 116,211 (95,254 ) Prepaid expenses and other 162,647 98,421 64,226 Deferred cost of goods sold, net of current portion 489 10,837 (10,348 ) Other assets 80,810 64,931 15,879 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 853,467 $ 837,242 $ 16,225 Deferred revenue 559,024 924,793 (365,769 ) Non-current deferred revenue 15,407 213,397 (197,990 ) Other long-term liabilities 205,554 83,459 122,095 Retained earnings 640,849 207,382 433,467 Accumulated other comprehensive loss (37,199 ) (36,572 ) (627 ) Our adoption of the New Revenue Accounting Standard accelerated the revenue recognition of prior period game sales into retained earnings, which may result in increased cash taxes paid on our Consolidated Statement of Cash Flows for the fiscal year ending March 31, 2019. Disaggregation of revenue Product revenue Product revenue is primarily comprised of the portion of revenue from software products that is recognized when the customer takes control of the product (i.e. upon delivery of the software product). Service and other revenue Service and other revenue is primarily comprised of revenue from game related services, virtual currency transactions, and in-game purchases which are recognized over an estimated service period. Net revenue by product revenue and service and other was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Service and other $ 313,194 $ 622,381 Product 179,473 258,268 Total net revenue $ 492,667 $ 880,649 Full game and other revenue Full game and other revenue primarily includes the initial sale of full game software products, which may include offline and/or significant game related services. Recurrent consumer spending revenue Recurrent consumer spending revenue is generated from ongoing consumer engagement and includes revenue from virtual currency, add-on content, and in-game purchases. Net revenue by full game and other revenue and recurrent consumer spending was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Recurrent consumer spending $ 240,599 $ 481,629 Full game and other 252,068 399,020 Total net revenue $ 492,667 $ 880,649 Geography We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: United States $ 279,306 $ 500,717 International 213,361 379,932 Total net revenue $ 492,667 $ 880,649 Platform Net revenue by platform was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Console $ 372,240 $ 666,970 PC and other 120,427 213,679 Total net revenue $ 492,667 $ 880,649 Distribution channel Our products are delivered through digital online services (digital download, online platforms, and cloud streaming) and physical retail and other. Net revenue by distribution channel was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Digital online $ 358,371 $ 673,418 Physical retail and other 134,296 207,231 Total net revenue $ 492,667 $ 880,649 Deferred Revenue We record deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations. The opening balance and ending balance of deferred revenue, including current and non-current balances as of April 1, 2018 and September 30, 2018 were $566,141 and $574,431 , respectively. For the six months ended September 30, 2018 , the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the six months ended September 30, 2018 , $424,129 of revenue was recognized that was included in the deferred revenue balance at the beginning of the period. As of September 30, 2018 , the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $574,431 . We expect to recognize approximately $559,024 of this balance as revenue over the next 12 months, and the remainder thereafter. As of September 30, 2018 and April 1, 2018, our contract asset balances were $64,226 and $69,522 , respectively. |
MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT | 6 Months Ended |
Sep. 30, 2018 | |
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 of the Company, 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 $1,705 and $2,524 during the three months ended September 30, 2018 and 2017 , respectively, and $3,410 and $3,861 during the six months ended September 30, 2018 and 2017 , respectively. We recorded stock-based compensation expense for restricted stock units granted to ZelnickMedia, which is included in General and administrative expenses of $5,682 and $13,863 during the three months ended September 30, 2018 and 2017 , respectively, and $10,199 and $19,877 during the six months ended September 30, 2018 and 2017 , respectively. In connection with the 2017 Management Agreement and 2014 Management Agreement, we have granted restricted stock units as follows: Six Months Ended September 30, 2018 2017 Time-based 86 66 Market-based(1) 79 122 Performance-based(1) New IP — 21 Major IP — 20 IP 27 — Recurrent Consumer Spending ("RCS") 26 — Total—Performance-based 53 41 Total Restricted Stock Units 218 229 _______________________________________________________________________________ (1) Represents the maximum number of shares eligible to vest. Time-based restricted stock units granted in 2018 will vest on April 13, 2020, and those granted in 2017 will vest on April 4, 2019, 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 2018 are eligible to vest on April 13, 2020, and those granted in 2017 are eligible to vest on April 4, 2019, 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. Performance-based restricted stock units granted in 2018 are eligible to vest on April 13, 2020, and those granted in 2017 are eligible to vest on April 4, 2019, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. The 2017 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," respectively, measured over a two -year period. The 2018 performance-based restricted stock units, of which 50% are tied to "IP" and 50% to "RCS" (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 either individual product releases of "IP" or "RCS" 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). At the end of each reporting period, we assess the probability of each performance metric and upon determination that certain thresholds are probable, we record expense for the unvested portion of the shares of performance-based restricted stock units. The unvested portion of time-based, market-based and performance-based restricted stock units held by ZelnickMedia were 447 and 602 as of September 30, 2018 and March 31, 2018 , respectively. 340 restricted stock units previously granted to ZelnickMedia vested and 33 restricted stock units were forfeited by ZelnickMedia during the six months ended September 30, 2018 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Sep. 30, 2018 | |
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. September 30, 2018 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 $ 151,696 $ 151,696 $ — $ — Cash and cash equivalents Bank-time deposits 23,910 23,910 — — Cash and cash equivalents Commercial paper 29,061 — 29,061 — Cash and cash equivalents Money market funds 368,240 368,240 — — Restricted cash Corporate bonds 317,049 — 317,049 — Short-term investments Bank-time deposits 183,059 183,059 — — Short-term investments US Treasuries 53,305 53,305 — — Short-term investments Commercial paper 9,539 — 9,539 — Short-term investments Foreign currency forward contracts 311 — 311 — Prepaid expenses and other Private equity 1,823 — — 1,823 Other assets Foreign currency forward contracts (74 ) — (74 ) — Accrued expenses and other current liabilities Cross-currency swap (6,817 ) — (6,817 ) — Accrued expenses and other current liabilities Total recurring fair value measurements, net $ 1,131,102 $ 780,210 $ 349,069 $ 1,823 March 31, 2018 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 $ 516,626 $ 516,626 $ — $ — Cash and cash equivalents Bank-time deposits 21 21 — — Cash and cash equivalents Commercial paper 10,796 — 10,796 — Cash and cash equivalents Corporate bonds 308,716 — 308,716 — Short-term investments US Treasuries 59,725 59,725 — — Short-term investments Commercial paper 25,422 — 25,422 — Short-term investments Mutual funds 4,880 — 4,880 — Short-term investments Bank-time deposits 216,663 216,663 — — Short-term investments Foreign currency forward contracts 12 — 12 — Prepaid expenses and other Private equity 1,205 — — 1,205 Other assets Foreign currency forward contracts (43 ) (43 ) Accrued expenses and other current liabilities Cross-currency swap (15,659 ) (15,659 ) Accrued expenses and other current liabilities Total recurring fair value measurements, net $ 1,128,364 $ 793,035 $ 334,124 $ 1,205 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 six months ended September 30, 2018 . |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 6 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS Our Short-term investments consisted of the following: September 30, 2018 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 183,059 $ — $ — $ 183,059 Available-for-sale securities: Corporate bonds 317,795 36 (782 ) 317,049 US Treasuries 53,516 — (211 ) 53,305 Commercial paper 9,539 — — 9,539 Total Short-term investments $ 563,909 $ 36 $ (993 ) $ 562,952 March 31, 2018 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 216,663 $ — $ — $ 216,663 Available-for-sale securities: Corporate bonds 310,387 16 (1,687 ) 308,716 US Treasuries 59,970 — (245 ) 59,725 Commercial paper 25,422 — — 25,422 Mutual funds 4,876 16 (12 ) 4,880 Total Short-term investments $ 617,318 $ 32 $ (1,944 ) $ 615,406 Based on our review of investments with unrealized losses, we did not consider these investments to be other-than-temporarily impaired as of September 30, 2018 or March 31, 2018 . We do not intend to sell any of our investments with unrealized losses, nor is it more likely than not that we will be required to sell those investments. The following table summarizes the contracted maturities of our short-term investments at September 30, 2018 : September 30, 2018 Amortized Fair Short-term investments Due in 1 year or less $ 488,070 $ 487,300 Due in 1 - 2 years 75,839 75,652 Total short-term investments $ 563,909 $ 562,952 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Sep. 30, 2018 | |
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 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 Consolidated Statements of Cash Flows. Foreign currency forward contracts The following table shows the gross notional amounts of foreign currency forward contracts: September 30, 2018 March 31, 2018 Forward contracts to sell foreign currencies $ 345,710 $ 67,580 Forward contracts to purchase foreign currencies 10,329 4,359 For the three months ended September 30, 2018 and 2017 , we recorded a loss of $247 and $6,102 , respectively, and for the six months ended September 30, 2018 and 2017 , we recorded a gain of $2,157 and a loss of $14,705 , 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 September 30, 2018 , 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 Consolidated Statement of Operations. There are no credit-risk related contingent features associated with these swaps. |
INVENTORY
INVENTORY | 6 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory balances by category were as follows: September 30, 2018 March 31, 2018 Finished products $ 33,022 $ 13,940 Parts and supplies 7,519 1,222 Inventory $ 40,541 $ 15,162 Estimated product returns included in inventory at September 30, 2018 and March 31, 2018 were $259 and $373 , respectively. |
SOFTWARE DEVELOPMENT COSTS AND
SOFTWARE DEVELOPMENT COSTS AND LICENSES | 6 Months Ended |
Sep. 30, 2018 | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | SOFTWARE DEVELOPMENT COSTS AND LICENSES Details of our capitalized software development costs and licenses were as follows: September 30, 2018 March 31, 2018 Current Non-current Current Non-current Software development costs, internally developed $ 27,123 $ 631,357 $ 19,338 $ 515,761 Software development costs, externally developed 2,416 162,178 4,275 122,270 Licenses 7,373 585 9,671 1,338 Software development costs and licenses $ 36,912 $ 794,120 $ 33,284 $ 639,369 During the three months ended September 30, 2018 and 2017 , we recorded $0 and $276 , respectively, and during the six months ended September 30, 2018 and 2017 , we recorded $0 and $960 , respectively, of software development impairment charges (a component of Cost of goods sold). |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Sep. 30, 2018 | |
Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: September 30, 2018 March 31, 2018 Software development royalties $ 525,979 $ 600,512 Business reorganization (see Notes 13 and 14) 66,533 72,074 Licenses 64,044 43,261 Compensation and benefits 49,947 57,499 Refund liability 46,012 — Marketing and promotions 21,475 19,731 Deferred acquisition payments — 25,000 Other 79,477 96,671 Accrued expenses and other current liabilities $ 853,467 $ 914,748 |
DEBT
DEBT | 6 Months Ended |
Sep. 30, 2018 | |
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 ( 5.25% at September 30, 2018 ) or (b) 1.25% to 1.75% above the LIBOR Rate (approximately 2.24% at September 30, 2018 ), 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 September 30, 2018 and March 31, 2018 . 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 was as follows: September 30, 2018 March 31, 2018 Available borrowings $ 98,335 $ 98,335 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 September 30, 2018 and 2017 and $221 and $221 for the six months ended September 30, 2018 and 2017 , respectively. The Credit Agreement contains covenants that substantially limit our, 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"). 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 was payable semi-annually in arrears on July 1st and January 1st of each year, commencing on January 1, 2014. The 1.00% Convertible Notes matured on July 1, 2018, unless earlier repurchased by the Company or converted. 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 were 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 underlying conversion shares) subject to adjustment in certain circumstances. During the three months ended September 30, 2018 , 1.00% Convertible Notes with an aggregate principal amount of $5,183 were settled. The following table provides the components of interest expense related to our 1.00% Convertible Notes: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Cash interest expense (coupon interest expense) $ — $ 130 $ 1 $ 579 Non-cash amortization of discount on 1.00% Convertible Notes — 8,678 91 13,915 Amortization of debt issuance costs — 263 3 423 Total interest expense related to 1.00% Convertible Notes $ — $ 9,071 $ 95 $ 14,917 |
EARNINGS (LOSS) PER SHARE ("EPS
EARNINGS (LOSS) PER SHARE ("EPS") | 6 Months Ended |
Sep. 30, 2018 | |
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 per share: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Computation of Basic earnings (loss) per share: Net income (loss) $ 25,367 $ (2,736 ) $ 97,060 $ 57,540 Less: net income allocated to participating securities — — — (487 ) Net income (loss) for basic earnings per share calculation $ 25,367 $ (2,736 ) $ 97,060 $ 57,053 Total weighted average shares outstanding—basic 113,735 109,430 113,339 107,232 Less: weighted average participating shares outstanding — — — (908 ) Weighted average common shares outstanding—basic 113,735 109,430 113,339 106,324 Basic earnings (loss) per share $ 0.22 $ (0.03 ) $ 0.86 $ 0.54 Computation of Diluted earnings (loss) per share: Net income (loss) $ 25,367 $ (2,736 ) $ 97,060 $ 57,540 Less: net income allocated to participating securities — — — (478 ) Net income (loss) for diluted earnings per share calculation $ 25,367 $ (2,736 ) $ 97,060 $ 57,062 Weighted average common shares outstanding—basic 113,735 109,430 113,339 106,324 Add: dilutive effect of common stock equivalents 2,360 — 2,462 3,032 Weighted average common shares outstanding—diluted 116,095 109,430 115,801 109,356 Less: weighted average participating shares outstanding — — — (908 ) Weighted average common shares outstanding- diluted 116,095 109,430 115,801 $ 108,448 Diluted earnings (loss) per share $ 0.22 $ (0.03 ) $ 0.84 $ 0.53 Certain of our unvested stock-based awards (including restricted stock units and 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 requires the two-class method of computing EPS. As of September 30, 2018 , we have no material participating securities. The calculation of EPS for common stock under the two-class method shown above 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 months ended September 30, 2017 ; therefore, the basic and diluted weighted average shares for that period 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 months ended September 30, 2017 we had 2,145 of unvested share-based awards that were excluded from the EPS calculation due to the net loss for the period. We define common stock equivalents as stock-based awards and common stock related to the 1.00% Convertible Notes (see Note 10) outstanding during the period. Common stock equivalents are measured using the treasury stock method, except for the Convertible Notes, which were 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 1.00% 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 six months ended September 30, 2018 , 1,628 restricted stock awards vested, we granted 1,047 unvested restricted stock awards, and 46 unvested restricted stock awards were forfeited. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Sep. 30, 2018 | |
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: Six Months Ended September 30, 2018 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2018 $ (4,287 ) $ 600 $ (10,191 ) $ (1,854 ) $ (15,732 ) Other comprehensive (loss) income before reclassifications (24,335 ) — 9,054 890 (14,391 ) Amounts reclassified from accumulated other comprehensive loss — — (7,076 ) — (7,076 ) Balance at September 30, 2018 $ (28,622 ) $ 600 $ (8,213 ) $ (964 ) $ (37,199 ) Six Months Ended September 30, 2017 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2017 $ (47,666 ) $ 600 $ — $ (76 ) $ (47,142 ) Other comprehensive income before reclassifications 23,776 — (5,781 ) 111 18,106 Amounts reclassified from accumulated other comprehensive loss — — 564 — 564 Balance at September 30, 2017 $ (23,890 ) $ 600 $ (5,217 ) $ 35 $ (28,472 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2018 | |
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, 2018 , we did not have any significant changes to our commitments since March 31, 2018 . 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 condition or results of operations. 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. We have asserted counterclaims for breach of contract, theft of trade secrets, and misappropriation. As a result of amended pleadings, motion practice and appeals to date, twelve of Mr. Benzies’ claims have been dismissed. His remaining claims include breach of various contracts, constructive discharge, breach of implied duty of good faith and fair dealing, and tortious interference with contract. Our federal court action has been stayed pending the conclusion of the state court action. We believe that we have meritorious defenses to the remaining claims, and we intend to vigorously defend against them and to pursue our counterclaims. We have accrued what we believe to be an adequate amount for this matter, which amounts are classified as Business reorganization within Accrued expenses and other current liabilities in our Condensed Consolidated Balance Sheets (see Note 9). 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 | 6 Months Ended |
Sep. 30, 2018 | |
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 recognized a credit to business reorganization expense of $242 during the six months ended September 30, 2018 due to a true-up of estimates for employee separation costs. Through September 30, 2018 , we paid $5,299 related to these reorganization activities. As of September 30, 2018 , $598 remained accrued for in Accrued expenses and other current liabilities and $4,708 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 | 6 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the United States (“U.S.”) enacted comprehensive tax legislation commonly referred to 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 reduced 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. 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. We continue to evaluate the potential impact of the Act, and the amounts recorded in the fiscal year ended March 31, 2018 represented provisional estimates for certain identified income tax effects, for which the accounting is incomplete but a reasonable estimate was 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 the fiscal year ending March 31, 2019. We continue to review 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. The Act subjects a U.S. shareholder to current tax on GILTI earned by foreign subsidiaries. The FASB Staff Q&A Topic No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election either to recognize deferred taxes for temporary differences that are expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. We have estimated the effect in our estimated annual effective rate based on current tax guidance. The actual tax expense we record for GILTI may differ from this estimate. The provision for income taxes for the three months ended September 30, 2018 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 provision for income taxes was $5,594 for the three months ended September 30, 2018 as compared to a benefit from income taxes of $11,552 for the prior year period. When compared to the statutory rate of 21% , the effective tax rate of 18.1% for the three months ended September 30, 2018 was primarily due to a tax benefit of $ 5,075 as a result of changes in our valuation allowance relating to temporary items and tax carryforwards anticipated to be utilized, a tax benefit of $ 2,230 as a result of tax credits anticipated to be utilized, and a net tax benefit of $ 1,375 for excess tax benefits from employee stock compensation, partially offset by tax provision of $ 6,143 due to the geographic mix of earnings. To a lesser extent, our rate was also affected by the Act due to a net tax provision of $1,000 . The provision for income taxes for the six months ended September 30, 2018 is based on our projected annual effective tax rate for fiscal year 2019, adjusted for specific items that are required to be recognized in the period in which they are incurred. The provision for income taxes was $11,348 for the six months ended September 30, 2018 as compared to a benefit from income taxes of $24,417 for the prior year period. When compared to the statutory rate of 21% , the effective tax rate of 10.5% for the six months ended September 30, 2018 was primarily due to a tax benefit of $10,575 as a result of changes in our valuation allowance relating to temporary items and tax carryforwards anticipated to be utilized, a tax benefit of $8,848 as a result of tax credits anticipated to be utilized, and a net tax benefit of $6,918 for excess tax benefits from employee stock compensation, partially offset by tax provision of $10,638 due to the geographic mix of earnings. To a lesser extent, our rate was also affected by the Act due to a net tax provision of $3,391 . We anticipate that additional excess tax benefits from employee stock compensation, tax credits, changes in valuation allowance, and changes as a result of the Act may arise in future periods, which could have a significant impact on our effective tax rate. The accounting for share-based compensation will increase or decrease our effective tax rate based upon the difference between our share-based compensation expense and the deductions taken on our tax return, which depends upon the stock price at the time of the employee award vesting. Because we recognize excess tax benefits on a discrete basis, we anticipate that our effective tax rate will vary from quarter to quarter depending on our stock price in each period. On June 21, 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, which overturned previous case law that precluded states from requiring retailers to collect and remit sales tax on sales made to in-state customers unless the retailer had physical presence in the state. Although this case is limited to sales tax collection obligations, we continue to monitor the potential impact of this decision on our state income tax footprint. The ultimate amount of tax payable in a given financial statement period may be materially affected by sudden or unforeseen changes in tax laws, changes in the mix and level of earnings by taxing jurisdictions, or changes to existing accounting rules or regulations. For example, on July 24, 2018, the Ninth Circuit Court of Appeals issued an opinion in Altera Corp. v. Commissioner requiring related parties in an intercompany cost-sharing arrangement to share expenses related to stock compensation. On August 7, 2018, the opinion was withdrawn to allow time for a reconstituted panel to confer. We are monitoring this case and any impact the final opinion could have on our financial statements. 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 | 6 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
SHARE REPURCHASE | SHARE REPURCHASE Our Board of Directors has authorized the repurchase of up to 14,218 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 does not require us to repurchase shares and may be suspended or discontinued at any time for any reason. During the six months ended September 30, 2018 , we repurchased 1,597 shares of our common stock in the open market for $153,515 , including commissions of $16 , as part of the program. We have repurchased a total of 8,281 shares of our common stock under the program, and, as of September 30, 2018 , 5,937 shares of our common stock remain available for repurchase under the share repurchase program. All of the repurchased shares are classified as Treasury stock in our Condensed Consolidated Balance Sheets. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2018 | |
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 our opinion, 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 intercompany 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 ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under U.S. GAAP, 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 U.S. GAAP have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"), 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, 2018 . Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15: Intangibles - Goodwill and Other - Internal-Use Software - (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning December 15, 2019 (April 1, 2020 for the Company), with early adoption permitted. ASU 2018-15 is required to be applied either retrospectively or prospectively to all implementation costs after the date of adoption. We early adopted this update effective July 1, 2018 as the standard aligns with how we are currently accounting for implementation costs incurred in a cloud computing arrangement. The adoption did not have an impact on our Condensed 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 by requiring that restricted cash and restricted cash equivalents be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. This standard is effective for fiscal years beginning after December 15, 2017 (April 1, 2018 for the Company), including interim periods within those fiscal years. We adopted the new standard during the first quarter of fiscal 2019 and applied the standard retrospectively for all periods presented. The application of this new standard resulted in a decrease of net cash from operating activities of $66,651 and an increase of net cash from operating activities of $131,283 on our Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2018 and 2017 , respectively. In our Annual Report on Form 10-K for the year ending March 31, 2018, the impact would have been an increase in net cash from operating activities of $99,580 and $76,649 for the fiscal years ended March 31, 2018 and 2017 , respectively. Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting . This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018 (April 1, 2019 for the Company), including interim periods within those fiscal years. Early adoption is permitted. We early adopted this update effective April 1, 2018 to simplify the accounting for non-employee stock-based awards so that it is better aligned with the current guidance for employee stock-based awards. The application of this new standard did not have a significant impact to our Condensed Consolidated Financial Statements for the three and six months ended September 30, 2018 , as our last re-measurement date for non-employee awards was March 31, 2018. The adoption of this ASU results in a change to our accounting policy for non-employee stock-based awards. 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 are applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this update effective April 1, 2018. The adoption did not have an impact on our Condensed Consolidated Financial Statements. 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. On April 1, 2018, we adopted the new accounting standard and related amendments (the “New Revenue Accounting Standard”) using the modified retrospective method. As a result, we have updated our significant accounting policy disclosure for revenue recognition herein. Impact of Adopting New Revenue Accounting Standard We elected to apply the New Revenue Accounting Standard only to contracts not completed as of the adoption date. For contracts that were modified before the date of adoption, we elected to reflect the aggregate effect of all modifications when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the New Revenue Accounting Standard as an adjustment to the opening balance of retained earnings, net of tax. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect adjustment recorded to our retained earnings was $470,273 , net of tax. The most significant impacts of adopting the New Revenue Accounting Standard are: • The elimination of the requirement for vendor-specific objective evidence (“VSOE”) of fair value for software products that offer offline gameplay functionality and benefit from meaningful game related services which may include online functionality that is dependent on our online support services and/or additional free content updates. Under the prior revenue accounting guidance, for software products with multiple deliverables for which we did not have VSOE for our game related service deliverables, we recognized revenue ratably over the estimated service period. Under the New Revenue Accounting Standard, we allocate the sales price and recognize revenue for the offline software upon delivery and the remainder over the estimated service period. This difference in accounting primarily affects revenue recognition from Grand Theft Auto V and our NBA 2K franchise, where the majority of the sales price will be allocated to the offline software and recognized upon transfer of control to our customers, and the remaining amounts allocated to the game related service performance obligation and recognized over the estimated service period. • For performance obligations that are satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. Previously, our estimated service period was based on the economic game life. • Under the New Revenue Accounting Standard, we are able to recognize revenue to the extent it is probable that a significant reversal will not occur even if we do not have a right to invoice as of the reporting date. Contract assets are classified within Prepaid expenses and other on the Condensed Consolidated Balance Sheet. • The classification of allowances for estimated price protection, reserves for returns and other allowances as refund liabilities. Such allowances were previously recorded as contra-Accounts receivable and now are classified within Accrued expenses and other current liabilities on the Consolidated Balance Sheet. As a result of adopting the New Revenue Accounting Standard the following adjustments were made to our Consolidated Balance Sheet at April 1, 2018, which also reflect the changes related to income tax accounts included in Prepaid expenses and other, Other assets, Accrued expenses and other current liabilities, and Other long-term liabilities: March 31, 2018 Adjustments April 1, 2018 ASSETS Accounts receivable, net $ 247,649 $ 53,940 $ 301,589 Software development costs and licenses 33,284 (11,096 ) 22,188 Deferred cost of goods sold 117,851 (89,867 ) 27,984 Prepaid expenses and other 133,454 33,620 167,074 Deferred cost of goods sold, net of current portion 26,719 (25,687 ) 1,032 Other assets 56,887 51,430 108,317 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 914,748 $ 69,678 $ 984,426 Deferred revenue 777,152 (230,144 ) 547,008 Non-current deferred revenue 355,589 (336,456 ) 19,133 Other long-term liabilities 158,285 34,336 192,621 Retained earnings 73,516 470,273 543,789 Accumulated other comprehensive loss (15,732 ) 4,653 (11,079 ) Recently Issued Accounting Pronouncements Accounting for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning December 15, 2019 (April 1, 2020 for the Company), with early adoption permitted. Certain disclosures in ASU 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements. 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. ecently Adopted Accounting Pronouncements Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15: Intangibles - Goodwill and Other - Internal-Use Software - (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning December 15, 2019 (April 1, 2020 for the Company), with early adoption permitted. ASU 2018-15 is required to be applied either retrospectively or prospectively to all implementation costs after the date of adoption. We early adopted this update effective July 1, 2018 as the standard aligns with how we are currently accounting for implementation costs incurred in a cloud computing arrangement. The adoption did not have an impact on our Condensed 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 by requiring that restricted cash and restricted cash equivalents be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. This standard is effective for fiscal years beginning after December 15, 2017 (April 1, 2018 for the Company), including interim periods within those fiscal years. We adopted the new standard during the first quarter of fiscal 2019 and applied the standard retrospectively for all periods presented. The application of this new standard resulted in a decrease of net cash from operating activities of $66,651 and an increase of net cash from operating activities of $131,283 on our Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2018 and 2017 , respectively. In our Annual Report on Form 10-K for the year ending March 31, 2018, the impact would have been an increase in net cash from operating activities of $99,580 and $76,649 for the fiscal years ended March 31, 2018 and 2017 , respectively. Accounting for Stock Compensation In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting . This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018 (April 1, 2019 for the Company), including interim periods within those fiscal years. Early adoption is permitted. We early adopted this update effective April 1, 2018 to simplify the accounting for non-employee stock-based awards so that it is better aligned with the current guidance for employee stock-based awards. The application of this new standard did not have a significant impact to our Condensed Consolidated Financial Statements for the three and six months ended September 30, 2018 , as our last re-measurement date for non-employee awards was March 31, 2018. The adoption of this ASU results in a change to our accounting policy for non-employee stock-based awards. 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 are applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this update effective April 1, 2018. The adoption did not have an impact on our Condensed Consolidated Financial Statements. 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. On April 1, 2018, we adopted the new accounting standard and related amendments (the “New Revenue Accounting Standard”) using the modified retrospective method. As a result, we have updated our significant accounting policy disclosure for revenue recognition herein. Impact of Adopting New Revenue Accounting Standard We elected to apply the New Revenue Accounting Standard only to contracts not completed as of the adoption date. For contracts that were modified before the date of adoption, we elected to reflect the aggregate effect of all modifications when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the New Revenue Accounting Standard as an adjustment to the opening balance of retained earnings, net of tax. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect adjustment recorded to our retained earnings was $470,273 , net of tax. The most significant impacts of adopting the New Revenue Accounting Standard are: • The elimination of the requirement for vendor-specific objective evidence (“VSOE”) of fair value for software products that offer offline gameplay functionality and benefit from meaningful game related services which may include online functionality that is dependent on our online support services and/or additional free content updates. Under the prior revenue accounting guidance, for software products with multiple deliverables for which we did not have VSOE for our game related service deliverables, we recognized revenue ratably over the estimated service period. Under the New Revenue Accounting Standard, we allocate the sales price and recognize revenue for the offline software upon delivery and the remainder over the estimated service period. This difference in accounting primarily affects revenue recognition from Grand Theft Auto V and our NBA 2K franchise, where the majority of the sales price will be allocated to the offline software and recognized upon transfer of control to our customers, and the remaining amounts allocated to the game related service performance obligation and recognized over the estimated service period. • For performance obligations that are satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. Previously, our estimated service period was based on the economic game life. • Under the New Revenue Accounting Standard, we are able to recognize revenue to the extent it is probable that a significant reversal will not occur even if we do not have a right to invoice as of the reporting date. Contract assets are classified within Prepaid expenses and other on the Condensed Consolidated Balance Sheet. • The classification of allowances for estimated price protection, reserves for returns and other allowances as refund liabilities. Such allowances were previously recorded as contra-Accounts receivable and now are classified within Accrued expenses and other current liabil |
Revenue Recognition | Revenue Recognition Refer to Note 1 to our Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for our revenue recognition accounting policy as it relates to revenue transactions prior to April 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from April 1, 2018 and thereafter, which are accounted for in accordance with Topic 606 . We derive revenue primarily from the sale of our interactive entertainment content, principally for console gaming systems such as the Sony Computer Entertainment, Inc. ("Sony") PlayStation®4 ("PS4") and PlayStation®3 ("PS3"), Microsoft Corporation ("Microsoft") Xbox One® ("Xbox One") and Xbox 360® ("Xbox 360"), the Nintendo Switch, and personal computers ("PC"), including smartphones and tablets. Our interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. We may also sell separate downloadable add-on content to supplement our full game software products. Certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. We determine revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sales of software products and game related services when control of the promised products and services is transferred to our customers and our performance obligations under the contract have been satisfied. Revenue is recorded net of transaction taxes assessed by governmental authorities such as sales, value-added and other similar taxes. Our software products are sold as full games, which typically provide access to the main game content, primarily for console and PC. Generally our full game software products deliver a license of our intellectual property that provides a functional offline gaming experience (i.e., one that does not require an Internet connection to access the main game content or other significant game related services). We recognize revenue related to the license of our intellectual property that provides offline functionality at the time control of the products have been transferred to our customers. In addition, some of our full game software products that provide a functional offline gaming experience may also include significant game related services delivered over time, such as online functionality that is dependent upon online support services and/or additional free content updates. For full game sales that offer offline functionality and significant game related services we evaluate whether the license of our intellectual property and the game related services are distinct and separable. This evaluation is performed for each software product sold. If we determine that our software products contain a license of intellectual property separate from the game related services (i.e. multiple performance obligations), we estimate a standalone selling price for each identified performance obligation. We allocate the transaction price to each performance obligation using a relative standalone selling price method (the transaction price is allocated to a performance obligation based on the proportion of the standalone selling price of each performance obligation to the sum of the standalone selling prices for all performance obligations in the contract). For the portion of the transaction price allocable to the license, revenue is recognized when the customer takes control of the product. For the portion of the transaction price allocated to game related services, revenue is recognized ratably over the estimated service period for the related software product. We also defer related product costs and recognize the costs as the revenues are recognized. Certain of our full game software products are delivered primarily as an online gaming experience with substantially all gameplay requiring online access to our game related services. We recognize revenue for full game software products that are dependent on our game related services over an estimated service period. For our full game online software products we also defer related product costs and recognize the costs as the revenue is recognized. In addition to sales of our full game software products, certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. Revenue from the sale of virtual currency and in-game purchases is deferred and recognized ratably over the estimated service period, which is the user life. We also sell separate downloadable add-on content to supplement our full game software products. Revenue from the sale of separate downloadable add-on content is evaluated for revenue recognition on the same basis as our full game software products. Certain software products are sold to customers with a “street date” (the earliest date these products may be sold by retailers). For these products, we recognize revenue on the later of the street date or the sale date as this is generally when we have transferred control of our software products. In addition, some of our software products are sold as digital downloads. Revenue from digital downloads is generally recognized when the download is made available to the end user by a third-party digital storefront. For the sale of physical software products, the recognition of revenue allocated to game related services does not begin until the product is sold-through by our customer to the end user. We currently estimate sell-through to the end user for all our titles to be approximately two months after we have sold-in the software products to our retailers. Determining the estimated sell-through period is subjective and requires significant management judgment and estimates. Our payment terms and conditions vary by customer and typically provide net 30 to 60 day terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. In certain countries, we use third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to future updates. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee when we transfer control of the upfront license of intellectual property (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Royalty payments in excess of the minimum guarantee are generally recognized when the licensed product is sold by the licensee. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. Contract assets generally consist of arrangements for which we have recognized revenue to the extent it is probable that significant reversal will not occur but do not have a right to invoice as of the reporting date. Contract assets are recorded within Prepaid expenses and other on our Consolidated Balance Sheet. Our allowance for doubtful accounts are typically immaterial and, if required, are based on our best estimate of probable losses inherent in our accounts receivable balance. Deferred revenue is comprised primarily of unsatisfied revenue related to the portion of the transaction price allocable to game related services of our full game software products. These sales are typically invoiced at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue may also include amounts related to software products with future street dates. Refer to Note 2 - Revenue from Contracts with Customers for further information, including changes in deferred revenue during the period. Principal Agent Considerations We offer certain software products via third party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve's Steam, Apple's App Store, and the Google Play Store. For sales of our software products via third party digital storefronts, we determine whether or not we are acting as the principal in the sale to the end user, which we consider in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that we use in evaluating these sales transactions include, but are not limited to, the following: • the underlying contract terms and conditions between the various parties to the transaction; • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, and Valve's Steam, we have determined we are not the principal in the sales transaction to the end user and therefore we report revenue based on the consideration received from the digital storefront. For sales arrangements via Apple's App Store and the Google Play Store, we have determined that we are the principal to the end user and thus report revenue on a gross basis and mobile platform fees are reported within Cost of goods sold. Shipping and Handling Shipping and handling costs are incurred to move physical software products to customers. We recognize all shipping and handling costs as an expense in Cost of goods sold because we are responsible for delivery of the product to our customers prior to transfer of control to the customer. Estimated Service Period For performance obligations satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. We consider a variety of data points when determining and subsequently reassessing the estimated service period for players of our software products. Primarily, we review the weighted average number of days between players’ first and last days played online. We also consider known online trends, the service periods of our previously released software products, and, to the extent publicly available, the service periods of our competitors’ software products that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of our game related services to our customers, as it is the best representation of the period during which our customers play our software products. Determining the estimated service period is subjective and requires significant management judgment and estimates. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software products are generally between 9 and 15 months depending on the software product. Revenue Arrangements with Multiple Performance Obligations Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment as we typically do not have observable standalone selling prices for our game related service performance obligations. For software products in which the software license has offline functionality and benefits from meaningful game related services, which may include online functionality that is dependent on our online support services and/or additional free content updates, we believe we have separate performance obligations for the license of the intellectual property and the game related services. Significant judgment and estimates are also required to determine the standalone selling price for each distinct performance obligation and whether a discount needs to be allocated based on the relative standalone selling price of our products and services. To estimate the standalone selling price for each performance obligation, we consider, to the extent available, a variety of data points such as past selling prices of the product or other similar products, competitor pricing, and our market data. If observable pricing is not available, we use an expected cost plus margin approach taking into account relevant costs including product development, post-release support, marketing and licensing costs. This evaluation is performed on a product by product basis. Price Protection and Allowances for Returns We grant price protection and accept returns in connection with our distribution arrangements. Following reductions in the price of our physical software products, we grant price protection to permit customers to take credits against amounts they owe us with respect to merchandise unsold by them. Our customers must satisfy certain conditions to entitle them to receive price protection or return products, including compliance with applicable payment terms and confirmation of field inventory levels. At contract inception and at each subsequent reporting period, we make estimates of future price protection and product returns related to current period software product revenue. We estimate the amount of future price protection and returns for software products based upon, among other factors, historical experience and performance of the titles in similar genres, historical performance of the hardware platform, customer inventory levels, analysis of sell-through rates, sales force and retail customer feedback, industry pricing, market conditions, and changes in demand and acceptance of our products by consumers. Revenue is recognized after deducting the estimated price protection and allowances for returns, which are accounted for as variable consideration. Price protection and allowances for returns are considered refund liabilities and are reported within Accrued expenses and other current liabilities on our Consolidated Balance Sheet. Sales Incentives We enter into various sales incentive arrangements with our customers, such as rebates, discounts, and cooperative marketing. These incentives are considered adjustments to the transaction price of our software products and are reflected as reductions to revenue. Sales incentives incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are included in Selling and marketing expense if there is a separate identifiable benefit and the benefit’s fair value can be established. Otherwise, such sales incentives are reflected as a reduction to revenue and are considered refund liabilities, which are reported within Accrued expenses and other current liabilities in our Consolidated Balance Sheet. Significant Estimates Significant management judgment and estimates must be used in connection with many of the determinations described above, such as estimating the fair value allocation to distinct and separable performance obligations, the service period over which to defer recognition of revenue, the time it takes our physical products to sell-through to end users, and the amounts of future price protection and allowance for returns. We believe we can make reliable estimates. However, actual results may differ from initial estimates due to changes in circumstances, market conditions, and assumptions. Adjustments to estimates are recorded in the period in which they become known. |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of adopting the New Revenue Accounting Standard the following adjustments were made to our Consolidated Balance Sheet at April 1, 2018, which also reflect the changes related to income tax accounts included in Prepaid expenses and other, Other assets, Accrued expenses and other current liabilities, and Other long-term liabilities: March 31, 2018 Adjustments April 1, 2018 ASSETS Accounts receivable, net $ 247,649 $ 53,940 $ 301,589 Software development costs and licenses 33,284 (11,096 ) 22,188 Deferred cost of goods sold 117,851 (89,867 ) 27,984 Prepaid expenses and other 133,454 33,620 167,074 Deferred cost of goods sold, net of current portion 26,719 (25,687 ) 1,032 Other assets 56,887 51,430 108,317 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 914,748 $ 69,678 $ 984,426 Deferred revenue 777,152 (230,144 ) 547,008 Non-current deferred revenue 355,589 (336,456 ) 19,133 Other long-term liabilities 158,285 34,336 192,621 Retained earnings 73,516 470,273 543,789 Accumulated other comprehensive loss (15,732 ) 4,653 (11,079 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the three months ended September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard Net revenue $ 492,667 $ 457,441 $ 35,226 Cost of goods sold 234,880 193,483 41,397 Gross profit 257,787 263,958 (6,171 ) Selling and marketing 94,165 94,165 — General and administrative 67,320 67,320 — Research and development 60,565 60,565 — Depreciation and amortization 9,751 9,751 — Total operating expenses 231,801 231,801 — Income from operations 25,986 32,157 (6,171 ) Interest and other, net 4,975 4,935 40 Income before income taxes 30,961 37,092 (6,131 ) Provision for (benefit from) income taxes 5,594 (29,670 ) 35,264 Net income $ 25,367 $ 66,762 $ (41,395 ) Earnings per share: Basic earnings per share $ 0.22 $ 0.59 $ (0.37 ) Diluted earnings per share $ 0.22 $ 0.58 $ (0.36 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the six months ended September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard Net revenue $ 880,649 $ 859,422 $ 21,227 Cost of goods sold 366,245 350,572 15,673 Gross profit 514,404 508,850 5,554 Selling and marketing 152,471 152,471 — General and administrative 135,055 135,055 — Research and development 111,277 111,277 — Business reorganization (242 ) (242 ) — Depreciation and amortization 19,011 19,011 — Total operating expenses 417,572 417,572 — Income from operations 96,832 91,278 5,554 Interest and other, net 11,576 10,948 628 Income before income taxes 108,408 102,226 6,182 Provision for (benefit from) income taxes 11,348 (31,640 ) 42,988 Net income $ 97,060 $ 133,866 $ (36,806 ) Earnings per share: Basic earnings per share $ 0.86 $ 1.18 $ (0.32 ) Diluted earnings per share $ 0.84 $ 1.16 $ (0.32 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Balance Sheet as of September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard ASSETS Accounts receivable, net $ 534,633 $ 488,622 $ 46,011 Software development costs and licenses 36,912 50,027 (13,115 ) Deferred cost of goods sold 20,957 116,211 (95,254 ) Prepaid expenses and other 162,647 98,421 64,226 Deferred cost of goods sold, net of current portion 489 10,837 (10,348 ) Other assets 80,810 64,931 15,879 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 853,467 $ 837,242 $ 16,225 Deferred revenue 559,024 924,793 (365,769 ) Non-current deferred revenue 15,407 213,397 (197,990 ) Other long-term liabilities 205,554 83,459 122,095 Retained earnings 640,849 207,382 433,467 Accumulated other comprehensive loss (37,199 ) (36,572 ) (627 ) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As a result of adopting the New Revenue Accounting Standard the following adjustments were made to our Consolidated Balance Sheet at April 1, 2018, which also reflect the changes related to income tax accounts included in Prepaid expenses and other, Other assets, Accrued expenses and other current liabilities, and Other long-term liabilities: March 31, 2018 Adjustments April 1, 2018 ASSETS Accounts receivable, net $ 247,649 $ 53,940 $ 301,589 Software development costs and licenses 33,284 (11,096 ) 22,188 Deferred cost of goods sold 117,851 (89,867 ) 27,984 Prepaid expenses and other 133,454 33,620 167,074 Deferred cost of goods sold, net of current portion 26,719 (25,687 ) 1,032 Other assets 56,887 51,430 108,317 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 914,748 $ 69,678 $ 984,426 Deferred revenue 777,152 (230,144 ) 547,008 Non-current deferred revenue 355,589 (336,456 ) 19,133 Other long-term liabilities 158,285 34,336 192,621 Retained earnings 73,516 470,273 543,789 Accumulated other comprehensive loss (15,732 ) 4,653 (11,079 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the three months ended September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard Net revenue $ 492,667 $ 457,441 $ 35,226 Cost of goods sold 234,880 193,483 41,397 Gross profit 257,787 263,958 (6,171 ) Selling and marketing 94,165 94,165 — General and administrative 67,320 67,320 — Research and development 60,565 60,565 — Depreciation and amortization 9,751 9,751 — Total operating expenses 231,801 231,801 — Income from operations 25,986 32,157 (6,171 ) Interest and other, net 4,975 4,935 40 Income before income taxes 30,961 37,092 (6,131 ) Provision for (benefit from) income taxes 5,594 (29,670 ) 35,264 Net income $ 25,367 $ 66,762 $ (41,395 ) Earnings per share: Basic earnings per share $ 0.22 $ 0.59 $ (0.37 ) Diluted earnings per share $ 0.22 $ 0.58 $ (0.36 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the six months ended September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard Net revenue $ 880,649 $ 859,422 $ 21,227 Cost of goods sold 366,245 350,572 15,673 Gross profit 514,404 508,850 5,554 Selling and marketing 152,471 152,471 — General and administrative 135,055 135,055 — Research and development 111,277 111,277 — Business reorganization (242 ) (242 ) — Depreciation and amortization 19,011 19,011 — Total operating expenses 417,572 417,572 — Income from operations 96,832 91,278 5,554 Interest and other, net 11,576 10,948 628 Income before income taxes 108,408 102,226 6,182 Provision for (benefit from) income taxes 11,348 (31,640 ) 42,988 Net income $ 97,060 $ 133,866 $ (36,806 ) Earnings per share: Basic earnings per share $ 0.86 $ 1.18 $ (0.32 ) Diluted earnings per share $ 0.84 $ 1.16 $ (0.32 ) Our adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Balance Sheet as of September 30, 2018 : Amounts as reported Amounts without adoption of New Revenue Accounting Standard Increase (decrease) due to adoption of New Revenue Accounting Standard ASSETS Accounts receivable, net $ 534,633 $ 488,622 $ 46,011 Software development costs and licenses 36,912 50,027 (13,115 ) Deferred cost of goods sold 20,957 116,211 (95,254 ) Prepaid expenses and other 162,647 98,421 64,226 Deferred cost of goods sold, net of current portion 489 10,837 (10,348 ) Other assets 80,810 64,931 15,879 LIABILITIES AND STOCKHOLDERS' EQUITY Accrued expenses and other current liabilities $ 853,467 $ 837,242 $ 16,225 Deferred revenue 559,024 924,793 (365,769 ) Non-current deferred revenue 15,407 213,397 (197,990 ) Other long-term liabilities 205,554 83,459 122,095 Retained earnings 640,849 207,382 433,467 Accumulated other comprehensive loss (37,199 ) (36,572 ) (627 ) |
Net revenue by product platform | Net revenue by distribution channel was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Digital online $ 358,371 $ 673,418 Physical retail and other 134,296 207,231 Total net revenue $ 492,667 $ 880,649 Net revenue by full game and other revenue and recurrent consumer spending was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Recurrent consumer spending $ 240,599 $ 481,629 Full game and other 252,068 399,020 Total net revenue $ 492,667 $ 880,649 Net revenue by product revenue and service and other was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Service and other $ 313,194 $ 622,381 Product 179,473 258,268 Total net revenue $ 492,667 $ 880,649 Net revenue by platform was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: Console $ 372,240 $ 666,970 PC and other 120,427 213,679 Total net revenue $ 492,667 $ 880,649 |
Net revenue by geographic region | We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows: Three Months Ended September 30, Six Months Ended September 30, 2018 2018 Net revenue recognized: United States $ 279,306 $ 500,717 International 213,361 379,932 Total net revenue $ 492,667 $ 880,649 |
MANAGEMENT AGREEMENT (Tables)
MANAGEMENT AGREEMENT (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
MANAGEMENT AGREEMENT | |
Schedule of restricted stock units granted | In connection with the 2017 Management Agreement and 2014 Management Agreement, we have granted restricted stock units as follows: Six Months Ended September 30, 2018 2017 Time-based 86 66 Market-based(1) 79 122 Performance-based(1) New IP — 21 Major IP — 20 IP 27 — Recurrent Consumer Spending ("RCS") 26 — Total—Performance-based 53 41 Total Restricted Stock Units 218 229 _______________________________________________________________________________ (1) Represents the maximum number of shares eligible to vest. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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. September 30, 2018 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 $ 151,696 $ 151,696 $ — $ — Cash and cash equivalents Bank-time deposits 23,910 23,910 — — Cash and cash equivalents Commercial paper 29,061 — 29,061 — Cash and cash equivalents Money market funds 368,240 368,240 — — Restricted cash Corporate bonds 317,049 — 317,049 — Short-term investments Bank-time deposits 183,059 183,059 — — Short-term investments US Treasuries 53,305 53,305 — — Short-term investments Commercial paper 9,539 — 9,539 — Short-term investments Foreign currency forward contracts 311 — 311 — Prepaid expenses and other Private equity 1,823 — — 1,823 Other assets Foreign currency forward contracts (74 ) — (74 ) — Accrued expenses and other current liabilities Cross-currency swap (6,817 ) — (6,817 ) — Accrued expenses and other current liabilities Total recurring fair value measurements, net $ 1,131,102 $ 780,210 $ 349,069 $ 1,823 March 31, 2018 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 $ 516,626 $ 516,626 $ — $ — Cash and cash equivalents Bank-time deposits 21 21 — — Cash and cash equivalents Commercial paper 10,796 — 10,796 — Cash and cash equivalents Corporate bonds 308,716 — 308,716 — Short-term investments US Treasuries 59,725 59,725 — — Short-term investments Commercial paper 25,422 — 25,422 — Short-term investments Mutual funds 4,880 — 4,880 — Short-term investments Bank-time deposits 216,663 216,663 — — Short-term investments Foreign currency forward contracts 12 — 12 — Prepaid expenses and other Private equity 1,205 — — 1,205 Other assets Foreign currency forward contracts (43 ) (43 ) Accrued expenses and other current liabilities Cross-currency swap (15,659 ) (15,659 ) Accrued expenses and other current liabilities Total recurring fair value measurements, net $ 1,128,364 $ 793,035 $ 334,124 $ 1,205 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of short-term investments | Our Short-term investments consisted of the following: September 30, 2018 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 183,059 $ — $ — $ 183,059 Available-for-sale securities: Corporate bonds 317,795 36 (782 ) 317,049 US Treasuries 53,516 — (211 ) 53,305 Commercial paper 9,539 — — 9,539 Total Short-term investments $ 563,909 $ 36 $ (993 ) $ 562,952 March 31, 2018 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 216,663 $ — $ — $ 216,663 Available-for-sale securities: Corporate bonds 310,387 16 (1,687 ) 308,716 US Treasuries 59,970 — (245 ) 59,725 Commercial paper 25,422 — — 25,422 Mutual funds 4,876 16 (12 ) 4,880 Total Short-term investments $ 617,318 $ 32 $ (1,944 ) $ 615,406 |
Summary of the contracted maturities of short-term investments | The following table summarizes the contracted maturities of our short-term investments at September 30, 2018 : September 30, 2018 Amortized Fair Short-term investments Due in 1 year or less $ 488,070 $ 487,300 Due in 1 - 2 years 75,839 75,652 Total short-term investments $ 563,909 $ 562,952 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 March 31, 2018 Forward contracts to sell foreign currencies $ 345,710 $ 67,580 Forward contracts to purchase foreign currencies 10,329 4,359 |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory balances by category | Inventory balances by category were as follows: September 30, 2018 March 31, 2018 Finished products $ 33,022 $ 13,940 Parts and supplies 7,519 1,222 Inventory $ 40,541 $ 15,162 |
SOFTWARE DEVELOPMENT COSTS AN_2
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | |
Schedule of capitalized software development costs and licenses | Details of our capitalized software development costs and licenses were as follows: September 30, 2018 March 31, 2018 Current Non-current Current Non-current Software development costs, internally developed $ 27,123 $ 631,357 $ 19,338 $ 515,761 Software development costs, externally developed 2,416 162,178 4,275 122,270 Licenses 7,373 585 9,671 1,338 Software development costs and licenses $ 36,912 $ 794,120 $ 33,284 $ 639,369 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Liabilities, Current [Abstract] | |
Schedule of components of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: September 30, 2018 March 31, 2018 Software development royalties $ 525,979 $ 600,512 Business reorganization (see Notes 13 and 14) 66,533 72,074 Licenses 64,044 43,261 Compensation and benefits 49,947 57,499 Refund liability 46,012 — Marketing and promotions 21,475 19,731 Deferred acquisition payments — 25,000 Other 79,477 96,671 Accrued expenses and other current liabilities $ 853,467 $ 914,748 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Information related to availability on Credit Agreement | Information related to availability on our Credit Agreement was as follows: September 30, 2018 March 31, 2018 Available borrowings $ 98,335 $ 98,335 Outstanding letters of credit 1,664 1,664 |
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 September 30, Six Months Ended September 30, 2018 2017 2018 2017 Cash interest expense (coupon interest expense) $ — $ 130 $ 1 $ 579 Non-cash amortization of discount on 1.00% Convertible Notes — 8,678 91 13,915 Amortization of debt issuance costs — 263 3 423 Total interest expense related to 1.00% Convertible Notes $ — $ 9,071 $ 95 $ 14,917 |
EARNINGS (LOSS) PER SHARE ("E_2
EARNINGS (LOSS) PER SHARE ("EPS") (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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 per share: Three Months Ended September 30, Six Months Ended September 30, 2018 2017 2018 2017 Computation of Basic earnings (loss) per share: Net income (loss) $ 25,367 $ (2,736 ) $ 97,060 $ 57,540 Less: net income allocated to participating securities — — — (487 ) Net income (loss) for basic earnings per share calculation $ 25,367 $ (2,736 ) $ 97,060 $ 57,053 Total weighted average shares outstanding—basic 113,735 109,430 113,339 107,232 Less: weighted average participating shares outstanding — — — (908 ) Weighted average common shares outstanding—basic 113,735 109,430 113,339 106,324 Basic earnings (loss) per share $ 0.22 $ (0.03 ) $ 0.86 $ 0.54 Computation of Diluted earnings (loss) per share: Net income (loss) $ 25,367 $ (2,736 ) $ 97,060 $ 57,540 Less: net income allocated to participating securities — — — (478 ) Net income (loss) for diluted earnings per share calculation $ 25,367 $ (2,736 ) $ 97,060 $ 57,062 Weighted average common shares outstanding—basic 113,735 109,430 113,339 106,324 Add: dilutive effect of common stock equivalents 2,360 — 2,462 3,032 Weighted average common shares outstanding—diluted 116,095 109,430 115,801 109,356 Less: weighted average participating shares outstanding — — — (908 ) Weighted average common shares outstanding- diluted 116,095 109,430 115,801 $ 108,448 Diluted earnings (loss) per share $ 0.22 $ (0.03 ) $ 0.84 $ 0.53 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Sep. 30, 2018 | |
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: Six Months Ended September 30, 2018 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2018 $ (4,287 ) $ 600 $ (10,191 ) $ (1,854 ) $ (15,732 ) Other comprehensive (loss) income before reclassifications (24,335 ) — 9,054 890 (14,391 ) Amounts reclassified from accumulated other comprehensive loss — — (7,076 ) — (7,076 ) Balance at September 30, 2018 $ (28,622 ) $ 600 $ (8,213 ) $ (964 ) $ (37,199 ) Six Months Ended September 30, 2017 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2017 $ (47,666 ) $ 600 $ — $ (76 ) $ (47,142 ) Other comprehensive income before reclassifications 23,776 — (5,781 ) 111 18,106 Amounts reclassified from accumulated other comprehensive loss — — 564 — 564 Balance at September 30, 2017 $ (23,890 ) $ 600 $ (5,217 ) $ 35 $ (28,472 ) |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)label | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Wholly-owned labels | label | 2 | ||||||
Net cash provided by operating activities increase | $ (206,035) | $ 132,352 | [1] | ||||
Accounting Standards Update 2016-18 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net cash provided by operating activities increase | $ (66,651) | $ 131,283 | $ 99,580 | $ 76,649 | |||
Accounting Standards Update 2014-09 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect | $ 470,273 | $ 470,273 | |||||
Minimum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Estimated service period | 9 months | ||||||
Maximum | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Estimated service period | 15 months | ||||||
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 534,633 | $ 301,589 | $ 247,649 |
Software development costs and licenses | 36,912 | 22,188 | 33,284 |
Deferred cost of goods sold | 20,957 | 27,984 | 117,851 |
Prepaid expenses and other | 162,647 | 167,074 | 133,454 |
Deferred cost of goods sold, net of current portion | 489 | 1,032 | 26,719 |
Other assets | 80,810 | 108,317 | 56,887 |
Accrued expenses and other current liabilities | 853,467 | 984,426 | 914,748 |
Deferred revenue | 559,024 | 547,008 | 777,152 |
Non-current deferred revenue | 15,407 | 19,133 | 355,589 |
Other long-term liabilities | 205,554 | 192,621 | 158,285 |
Retained earnings | 640,849 | 543,789 | 73,516 |
Accumulated other comprehensive loss | $ (37,199) | $ (11,079) | (15,732) |
Previously Reported | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 247,649 | ||
Software development costs and licenses | 33,284 | ||
Deferred cost of goods sold | 117,851 | ||
Prepaid expenses and other | 133,454 | ||
Deferred cost of goods sold, net of current portion | 26,719 | ||
Other assets | 56,887 | ||
Accrued expenses and other current liabilities | 914,748 | ||
Deferred revenue | 777,152 | ||
Non-current deferred revenue | 355,589 | ||
Other long-term liabilities | 158,285 | ||
Retained earnings | 73,516 | ||
Accumulated other comprehensive loss | (15,732) | ||
Accounting Standards Update 2014-09 | Restatement Adjustment | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 53,940 | ||
Software development costs and licenses | (11,096) | ||
Deferred cost of goods sold | (89,867) | ||
Prepaid expenses and other | 33,620 | ||
Deferred cost of goods sold, net of current portion | (25,687) | ||
Other assets | 51,430 | ||
Accrued expenses and other current liabilities | 69,678 | ||
Deferred revenue | (230,144) | ||
Non-current deferred revenue | (336,456) | ||
Other long-term liabilities | 34,336 | ||
Retained earnings | 470,273 | ||
Accumulated other comprehensive loss | $ 4,653 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Income Statement) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net revenue | $ 492,667 | $ 443,562 | $ 880,649 | $ 861,778 | |
Cost of goods sold | 234,880 | 246,548 | 366,245 | 441,117 | |
Gross profit | 257,787 | 197,014 | 514,404 | 420,661 | |
Selling and marketing | 94,165 | 76,914 | 152,471 | 129,128 | |
General and administrative | 67,320 | 60,824 | 135,055 | 121,427 | |
Research and development | 60,565 | 49,999 | 111,277 | 92,268 | |
Business reorganization | 0 | 1,713 | (242) | 12,312 | |
Depreciation and amortization | 9,751 | 18,883 | 19,011 | 26,626 | |
Total operating expenses | 231,801 | 208,333 | 417,572 | 381,761 | |
Income (loss) from operations | 25,986 | (11,319) | 96,832 | 38,900 | |
Interest and other, net | 4,975 | (2,969) | 11,576 | (5,777) | |
Income (loss) before income taxes | 30,961 | (14,288) | 108,408 | 33,123 | |
Provision for (benefit from) income taxes | 5,594 | (11,552) | 11,348 | (24,417) | |
Net income (loss) | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,540 | [1] |
Basic earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.03) | $ 0.86 | $ 0.54 | |
Diluted earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.03) | $ 0.84 | $ 0.53 | |
Amounts without adoption of New Revenue Accounting Standard | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net revenue | $ 457,441 | $ 859,422 | |||
Cost of goods sold | 193,483 | 350,572 | |||
Gross profit | 263,958 | 508,850 | |||
Selling and marketing | 94,165 | 152,471 | |||
General and administrative | 67,320 | 135,055 | |||
Research and development | 60,565 | 111,277 | |||
Business reorganization | (242) | ||||
Depreciation and amortization | 9,751 | 19,011 | |||
Total operating expenses | 231,801 | 417,572 | |||
Income (loss) from operations | 32,157 | 91,278 | |||
Interest and other, net | 4,935 | 10,948 | |||
Income (loss) before income taxes | 37,092 | 102,226 | |||
Provision for (benefit from) income taxes | (29,670) | (31,640) | |||
Net income (loss) | $ 66,762 | $ 133,866 | |||
Basic earnings (loss) per share (in dollars per share) | $ 0.59 | ||||
Diluted earnings (loss) per share (in dollars per share) | 0.58 | ||||
Increase (decrease) due to adoption of New Revenue Accounting Standard | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Diluted earnings (loss) per share (in dollars per share) | $ (0.36) | $ (0.32) | |||
Increase (decrease) due to adoption of New Revenue Accounting Standard | Accounting Standards Update 2014-09 | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Net revenue | $ 35,226 | $ 21,227 | |||
Cost of goods sold | 41,397 | 15,673 | |||
Gross profit | (6,171) | 5,554 | |||
Selling and marketing | 0 | 0 | |||
General and administrative | 0 | 0 | |||
Research and development | 0 | 0 | |||
Business reorganization | 0 | ||||
Depreciation and amortization | 0 | 0 | |||
Total operating expenses | 0 | 0 | |||
Income (loss) from operations | (6,171) | 5,554 | |||
Interest and other, net | 40 | 628 | |||
Income (loss) before income taxes | (6,131) | 6,182 | |||
Provision for (benefit from) income taxes | 35,264 | 42,988 | |||
Net income (loss) | $ (41,395) | $ (36,806) | |||
Basic earnings (loss) per share (in dollars per share) | $ (0.37) | $ (0.32) | |||
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 534,633 | $ 301,589 | $ 247,649 |
Software development costs and licenses | 36,912 | 22,188 | 33,284 |
Deferred cost of goods sold | 20,957 | 27,984 | 117,851 |
Prepaid expenses and other | 162,647 | 167,074 | 133,454 |
Deferred cost of goods sold, net of current portion | 489 | 1,032 | 26,719 |
Other assets | 80,810 | 108,317 | 56,887 |
Accrued expenses and other current liabilities | 853,467 | 984,426 | 914,748 |
Deferred revenue | 559,024 | 547,008 | 777,152 |
Non-current deferred revenue | 15,407 | 19,133 | 355,589 |
Other long-term liabilities | 205,554 | 192,621 | 158,285 |
Retained earnings | 640,849 | 543,789 | 73,516 |
Accumulated other comprehensive loss | (37,199) | $ (11,079) | $ (15,732) |
Amounts without adoption of New Revenue Accounting Standard | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 488,622 | ||
Software development costs and licenses | 50,027 | ||
Deferred cost of goods sold | 116,211 | ||
Prepaid expenses and other | 98,421 | ||
Deferred cost of goods sold, net of current portion | 10,837 | ||
Other assets | 64,931 | ||
Accrued expenses and other current liabilities | 837,242 | ||
Deferred revenue | 924,793 | ||
Non-current deferred revenue | 213,397 | ||
Other long-term liabilities | 83,459 | ||
Retained earnings | 207,382 | ||
Accumulated other comprehensive loss | (36,572) | ||
Increase (decrease) due to adoption of New Revenue Accounting Standard | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 46,011 | ||
Software development costs and licenses | (13,115) | ||
Deferred cost of goods sold | (95,254) | ||
Prepaid expenses and other | 64,226 | ||
Deferred cost of goods sold, net of current portion | (10,348) | ||
Other assets | 15,879 | ||
Accrued expenses and other current liabilities | 16,225 | ||
Deferred revenue | (365,769) | ||
Non-current deferred revenue | (197,990) | ||
Other long-term liabilities | 122,095 | ||
Retained earnings | 433,467 | ||
Accumulated other comprehensive loss | $ (627) |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from External Customer [Line Items] | ||||
Total net revenue | $ 492,667 | $ 443,562 | $ 880,649 | $ 861,778 |
Service and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 313,194 | 622,381 | ||
Product | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 179,473 | 258,268 | ||
Recurrent consumer spending | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 240,599 | 481,629 | ||
Full game and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 252,068 | 399,020 | ||
Console | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 372,240 | 666,970 | ||
PC and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 120,427 | 213,679 | ||
Digital online | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 358,371 | 673,418 | ||
Physical retail and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | $ 134,296 | $ 207,231 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS (Geographical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 492,667 | $ 443,562 | $ 880,649 | $ 861,778 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 279,306 | 500,717 | ||
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 213,361 | $ 379,932 |
REVENUE FROM CONTRACTS WITH C_7
REVENUE FROM CONTRACTS WITH CUSTOMERS (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Apr. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with liability | $ 574,431 | $ 566,141 |
Contract with liability recognized | 424,129 | |
Contract asset | 69,522 | $ 64,226 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining obligation | $ 574,431 | |
Remaining obligation period | 1 year |
MANAGEMENT AGREEMENT (Details)
MANAGEMENT AGREEMENT (Details) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2017 | Mar. 31, 2014 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Restricted stock units | |||||||
Management Agreement | |||||||
Stock-based compensation expense for non-employee awards | $ 5,682 | $ 13,863 | $ 10,199 | $ 19,877 | |||
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) | 340 | ||||||
Forfeited (in shares) | 33 | ||||||
Zelnick Media Corporation | |||||||
Management Agreement | |||||||
Consulting expense benefit | $ 1,705 | $ 2,524 | $ 3,410 | $ 3,861 | |||
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) | 86 | 66 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Market-based restricted units | |||||||
Management Agreement | |||||||
Granted (in shares) | 79 | 122 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Performance-based restricted units | |||||||
Management Agreement | |||||||
Granted (in shares) | 53 | 41 | |||||
Zelnick Media Corporation | 2014 Management Agreement | New IP | |||||||
Management Agreement | |||||||
Granted (in shares) | 0 | 21 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Major IP | |||||||
Management Agreement | |||||||
Granted (in shares) | 0 | 20 | |||||
Zelnick Media Corporation | 2014 Management Agreement | IP | |||||||
Management Agreement | |||||||
Granted (in shares) | 27 | 0 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Recurrent Consumer Spending (RCS) | |||||||
Management Agreement | |||||||
Granted (in shares) | 26 | 0 | |||||
Zelnick Media Corporation | 2014 Management Agreement | Restricted stock units | |||||||
Management Agreement | |||||||
Granted (in shares) | 218 | 229 | |||||
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 | 447 | 447 | 602 |
FAIR VALUE MEASUREMENTS - ASSET
FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Assets measured at fair value on a recurring basis | ||
Short-term investments | $ 562,952 | $ 615,406 |
Total recurring fair value measurements, net | 1,131,102 | 1,128,364 |
Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 311 | 12 |
Foreign currency forward contracts | (74) | (43) |
Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | (6,817) | (15,659) |
Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 317,049 | 308,716 |
US Treasuries | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 53,305 | 59,725 |
Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 9,539 | 25,422 |
Mutual funds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 4,880 | |
Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 183,059 | 216,663 |
Money market funds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 151,696 | 516,626 |
Restricted cash | 368,240 | |
Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 23,910 | 21 |
Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 29,061 | 10,796 |
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 | 780,210 | 793,035 |
Quoted prices in active markets for identical assets (level 1) | Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 0 | 0 |
Foreign currency forward contracts | 0 | |
Quoted prices in active markets for identical assets (level 1) | Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | 0 | |
Quoted prices in active markets for identical assets (level 1) | Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | |
Quoted prices in active markets for identical assets (level 1) | US Treasuries | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 53,305 | 59,725 |
Quoted prices in active markets for identical assets (level 1) | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Quoted prices in active markets for identical assets (level 1) | Mutual funds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | |
Quoted prices in active markets for identical assets (level 1) | Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 183,059 | 216,663 |
Quoted prices in active markets for identical assets (level 1) | Money market funds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 151,696 | 516,626 |
Restricted cash | 368,240 | |
Quoted prices in active markets for identical assets (level 1) | Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 23,910 | 21 |
Quoted prices in active markets for identical assets (level 1) | Commercial paper | ||
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 | 349,069 | 334,124 |
Significant other observable inputs (level 2) | Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 311 | 12 |
Foreign currency forward contracts | (74) | (43) |
Significant other observable inputs (level 2) | Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | (6,817) | (15,659) |
Significant other observable inputs (level 2) | Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 317,049 | 308,716 |
Significant other observable inputs (level 2) | US Treasuries | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Significant other observable inputs (level 2) | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 9,539 | 25,422 |
Significant other observable inputs (level 2) | Mutual funds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 4,880 | |
Significant other observable inputs (level 2) | Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Significant other observable inputs (level 2) | Money market funds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Significant other observable inputs (level 2) | Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | |
Significant other observable inputs (level 2) | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 29,061 | 10,796 |
Significant unobservable inputs (level 3) | ||
Assets measured at fair value on a recurring basis | ||
Total recurring fair value measurements, net | 1,823 | 1,205 |
Significant unobservable inputs (level 3) | Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 0 | 0 |
Foreign currency forward contracts | 0 | |
Significant unobservable inputs (level 3) | Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | 0 | |
Significant unobservable inputs (level 3) | Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Significant unobservable inputs (level 3) | US Treasuries | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Significant unobservable inputs (level 3) | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Significant unobservable inputs (level 3) | Mutual funds | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | |
Significant unobservable inputs (level 3) | Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | 0 |
Significant unobservable inputs (level 3) | Money market funds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | |
Significant unobservable inputs (level 3) | Bank-time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Significant unobservable inputs (level 3) | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Other assets | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 1,823 | 1,205 |
Other assets | Quoted prices in active markets for identical assets (level 1) | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 0 | 0 |
Other assets | Significant other observable inputs (level 2) | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 0 | 0 |
Other assets | Significant unobservable inputs (level 3) | ||
Assets measured at fair value on a recurring basis | ||
Private equity | $ 1,823 | $ 1,205 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 563,909 | $ 617,318 |
Gross Unrealized Gain | 36 | 32 |
Gross Unrealized Loss | (993) | (1,944) |
Fair Value | 562,952 | 615,406 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized cost, Due in 1 year or less | 488,070 | |
Amortized cost, Due in 1-2 years | 75,839 | |
Total amortized cost | 563,909 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair value, Due in 1 year or less | 487,300 | |
Fair value, Due in 1-2 years | 75,652 | |
Total fair value | 562,952 | |
Bank-time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 183,059 | 216,663 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 183,059 | 216,663 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 317,795 | 310,387 |
Gross Unrealized Gain | 36 | 16 |
Gross Unrealized Loss | (782) | (1,687) |
Fair Value | 317,049 | 308,716 |
US Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 53,516 | 59,970 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (211) | (245) |
Fair Value | 53,305 | 59,725 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 9,539 | 25,422 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 9,539 | 25,422 |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 4,876 | |
Gross Unrealized Gain | 16 | |
Gross Unrealized Loss | (12) | |
Fair Value | $ 4,880 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | |
Derivative [Line Items] | |||||
Forward contracts to sell foreign currencies | $ 345,710 | $ 345,710 | $ 67,580 | ||
Forward contracts to purchase foreign currencies | 10,329 | 10,329 | $ 4,359 | ||
Derivative instrument not designated as hedging instruments, gain (loss), net | (247) | $ (6,102) | 2,157 | $ (14,705) | |
Cash Flow Hedging | Foreign currency forward contracts | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 129,000 | $ 129,000 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 33,022 | $ 13,940 |
Parts and supplies | 7,519 | 1,222 |
Inventory | 40,541 | 15,162 |
Estimated product returns included in inventory | $ 259 | $ 373 |
SOFTWARE DEVELOPMENT COSTS AN_3
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Apr. 01, 2018 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | $ 36,912 | $ 36,912 | $ 22,188 | $ 33,284 | ||
Software development costs and licenses, Non-current | 794,120 | 794,120 | 639,369 | |||
Software development impairment charges | 0 | $ 276 | 0 | $ 960 | ||
Software development costs, internally developed | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | 27,123 | 27,123 | 19,338 | |||
Software development costs and licenses, Non-current | 631,357 | 631,357 | 515,761 | |||
Software development costs, externally developed | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | 2,416 | 2,416 | 4,275 | |||
Software development costs and licenses, Non-current | 162,178 | 162,178 | 122,270 | |||
Licenses | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Software development costs and licenses, Current | 7,373 | 7,373 | 9,671 | |||
Software development costs and licenses, Non-current | $ 585 | $ 585 | $ 1,338 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Liabilities, Current [Abstract] | |||
Software development royalties | $ 525,979 | $ 600,512 | |
Business reorganization (see Notes 13 and 14) | 66,533 | 72,074 | |
Licenses | 64,044 | 43,261 | |
Compensation and benefits | 49,947 | 57,499 | |
Refund liability | 46,012 | 0 | |
Marketing and promotions | 21,475 | 19,731 | |
Deferred acquisition payments | 0 | 25,000 | |
Other | 79,477 | 96,671 | |
Accrued expenses and other current liabilities | $ 853,467 | $ 984,426 | $ 914,748 |
DEBT - CREDIT AGREEMENT (Detail
DEBT - CREDIT AGREEMENT (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2017USD ($) | Apr. 30, 2016USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2018USD ($) | |
Credit Agreement | |||||||
Credit Agreement | |||||||
Maximum borrowing capacity | $ 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 | ||||
Credit Agreement Availability | |||||||
Minimum liquidity level allowing unrestricted access to the Credit Agreement | $ 300,000,000 | ||||||
Available borrowings | 98,335,000 | 98,335,000 | 98,335,000 | ||||
Outstanding letters of credit | 1,664,000 | 1,664,000 | $ 1,664,000 | ||||
Interest expense and fees | $ 111,000 | $ 111,000 | $ 221,000 | $ 221,000 | |||
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 | 5.25% | 5.25% | |||||
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 | 2.24% | 2.24% | |||||
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 |
DEBT - 1.00 CONVERTIBLE NOTES (
DEBT - 1.00 CONVERTIBLE NOTES (Details) $ / shares in Units, label in Thousands | Jul. 17, 2013USD ($) | Jun. 18, 2013USD ($)label$ / shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Convertible Notes | ||||||
Interest and other, net | $ 4,975,000 | $ (2,969,000) | $ 11,576,000 | $ (5,777,000) | ||
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 | |||||
Converted instrument amount | $ 5,183,000 | |||||
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 |
DEBT - INTEREST EXPENSE COMPONE
DEBT - INTEREST EXPENSE COMPONENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 18, 2013 | ||
Debt Instrument [Line Items] | ||||||
Non-cash amortization of discount on Convertible Notes | $ 91 | $ 13,915 | [1] | |||
Amortization of debt issuance costs | 32 | 482 | [1] | |||
Convertible Debt | 1.00% Convertible Notes due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.00% | |||||
Cash interest expense (coupon interest expense) | $ 0 | $ 130 | 1 | 579 | ||
Non-cash amortization of discount on Convertible Notes | 0 | 8,678 | 91 | 13,915 | ||
Amortization of debt issuance costs | 0 | 263 | 3 | 423 | ||
Total interest expense related to Convertible Notes | $ 0 | $ 9,071 | $ 95 | $ 14,917 | ||
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
EARNINGS (LOSS) PER SHARE ("E_3
EARNINGS (LOSS) PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Computation of Basic earnings (loss) per share: | |||||
Net income (loss) | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,540 | [1] |
Less: net income allocated to participating securities | 0 | 0 | 0 | (487) | |
Net income (loss) for basic earnings per share calculation | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,053 | |
Total weighted average shares outstanding—basic (in shares) | 113,735 | 109,430 | 113,339 | 107,232 | |
Less: weighted average participating shares outstanding (in shares) | 0 | 0 | 0 | (908) | |
Weighted average common shares outstanding—basic (in shares) | 113,735 | 109,430 | 113,339 | 106,324 | |
Basic earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.03) | $ 0.86 | $ 0.54 | |
Earnings Per Share, Diluted [Abstract] | |||||
Net income (loss) | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,540 | [1] |
Less: net income allocated to participating securities | 0 | 0 | 0 | (478) | |
Net income (loss) for diluted earnings (loss) per share calculation | $ 25,367 | $ (2,736) | $ 97,060 | $ 57,062 | |
Weighted average common shares outstanding—basic (in shares) | 113,735 | 109,430 | 113,339 | 106,324 | |
Add: dilutive effect of common stock equivalents (in shares) | 2,360 | 0 | 2,462 | 3,032 | |
Weighted average common shares outstanding—diluted (in shares) | 116,095 | 109,430 | 115,801 | 109,356 | |
Less: weighted average participating shares outstanding (in shares) | 0 | 0 | 0 | (908) | |
Weighted average common shares outstanding- diluted (in shares) | 116,095 | 109,430 | 115,801 | 108,448 | |
Diluted earnings (loss) per share (in dollars per share) | $ 0.22 | $ (0.03) | $ 0.84 | $ 0.53 | |
[1] | Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion. |
EARNINGS (LOSS) PER SHARE ("E_4
EARNINGS (LOSS) PER SHARE ("EPS") (Narrative) (Details) - Restricted stock - shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2017 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,145 | |
Restricted stock awards, granted (in shares) | 1,047 | |
Restricted stock awards, vested (in shares) | 1,628 | |
Restricted stock awards, canceled (in shares) | 46 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in accumulated other comprehensive loss | ||
Balance | $ (15,732) | $ (47,142) |
Other comprehensive (loss) income before reclassifications | (14,391) | 18,106 |
Amounts reclassified from accumulated other comprehensive loss | (7,076) | 564 |
Balance | (37,199) | (28,472) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss | ||
Balance | (4,287) | (47,666) |
Other comprehensive (loss) income before reclassifications | (24,335) | 23,776 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance | (28,622) | (23,890) |
Unrealized gain (loss) on forward contracts | ||
Changes in accumulated other comprehensive loss | ||
Balance | 600 | 600 |
Other comprehensive (loss) income 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 | (10,191) | 0 |
Other comprehensive (loss) income before reclassifications | 9,054 | (5,781) |
Amounts reclassified from accumulated other comprehensive loss | (7,076) | 564 |
Balance | (8,213) | (5,217) |
Unrealized gain (loss) on available-for- sales securities | ||
Changes in accumulated other comprehensive loss | ||
Balance | (1,854) | (76) |
Other comprehensive (loss) income before reclassifications | 890 | 111 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance | $ (964) | $ 35 |
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 | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 1,713 | $ (242) | $ 12,312 |
Fiscal 2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | (242) | |||
Fiscal 2018 Plan | Accrued Expenses and Other Current Liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | 598 | 598 | ||
Fiscal 2018 Plan | Other long-term liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring reserve | $ 4,708 | 4,708 | ||
Reorganization Activities | Fiscal 2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 5,299 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 5,594 | $ (11,552) | $ 11,348 | $ (24,417) |
Effective rate | 18.10% | |||
Valuation allowance, increase (decrease) | $ 5,075 | 10,575 | ||
Increase in tax benefit, tax credits | 2,230 | 8,848 | ||
Excess tax benefits | 1,375 | 6,918 | ||
Tax benefits, geographic mix of earnings | 6,143 | 10,638 | ||
Net tax provision related to Tax Act | $ 1,000 | $ 3,391 |
SHARE REPURCHASE (Details)
SHARE REPURCHASE (Details) $ in Thousands | 6 Months Ended |
Sep. 30, 2018USD ($)shares | |
Equity [Abstract] | |
Authorized repurchase amount (in shares) | 14,218,000 |
Shares repurchased (in shares) | 1,597,216 |
Shares repurchased | $ | $ 153,515 |
Payments for commissions | $ | $ 16 |
Shares repurchased under program (in shares) | 8,281,103 |
Remaining number of shares authorized to be repurchased (in shares) | 5,936,580 |