COVER
COVER - shares | 6 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34003 | |
Entity Registrant Name | TAKE-TWO INTERACTIVE SOFTWARE, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 51-0350842 | |
Entity Address, Address Line One | 110 West 44th Street | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 646 | |
Local Phone Number | 536-2842 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | TTWO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 115,021,621 | |
Entity Central Index Key | 0000946581 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --03-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,345,099 | $ 1,357,664 |
Short-term investments | 1,040,786 | 644,003 |
Restricted cash and cash equivalents | 450,145 | 546,604 |
Accounts receivable, net of allowances of $448 and $443 at September 30, 2020 and March 31, 2020, respectively | 787,818 | 592,555 |
Inventory | 26,934 | 19,108 |
Software development costs and licenses | 73,714 | 40,316 |
Deferred cost of goods sold | 15,410 | 19,598 |
Prepaid expenses and other | 192,192 | 273,503 |
Total current assets | 3,932,098 | 3,493,351 |
Fixed assets, net | 133,404 | 131,888 |
Right-of-use assets | 156,310 | 154,284 |
Software development costs and licenses, net of current portion | 403,390 | 401,778 |
Goodwill | 521,000 | 386,494 |
Other intangibles, net | 126,392 | 51,260 |
Deferred tax assets | 117,692 | 116,676 |
Long-term restricted cash and cash equivalents | 289,536 | 89,124 |
Other assets | 156,332 | 123,977 |
Total assets | 5,836,154 | 4,948,832 |
Current liabilities: | ||
Accounts payable | 85,103 | 65,684 |
Accrued expenses and other current liabilities | 1,148,617 | 1,169,884 |
Deferred revenue | 1,063,064 | 777,784 |
Lease liabilities | 29,051 | 25,187 |
Total current liabilities | 2,325,835 | 2,038,539 |
Non-current deferred revenue | 32,880 | 28,339 |
Non-current lease liabilities | 150,793 | 152,059 |
Non-current software development royalties | 302,435 | 104,417 |
Other long-term liabilities | 122,929 | 86,234 |
Total liabilities | 2,934,872 | 2,409,588 |
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, 2020 and March 31, 2020 | 0 | 0 |
Common stock, $.01 par value, 200,000 shares authorized; 137,349 and 135,927 shares issued and 114,928 and 113,506 outstanding at September 30, 2020 and March 31, 2020, respectively | 1,373 | 1,359 |
Additional paid-in capital | 2,285,394 | 2,134,748 |
Treasury stock, at cost; 22,421 common shares at September 30, 2020 and March 31, 2020 | (820,572) | (820,572) |
Retained earnings | 1,469,911 | 1,282,085 |
Accumulated other comprehensive loss | (34,824) | (58,376) |
Total stockholders' equity | 2,901,282 | 2,539,244 |
Total liabilities and stockholders' equity | $ 5,836,154 | $ 4,948,832 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 448 | $ 443 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 137,349,000 | 135,927,000 |
Common stock, shares outstanding (in shares) | 114,928,000 | 113,506,000 |
Treasury stock, shares (in shares) | 22,421,000 | 22,421,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net revenue | $ 841,142 | $ 857,841 | $ 1,672,452 | $ 1,398,300 |
Cost of goods sold | 432,505 | 468,248 | 909,194 | 709,717 |
Gross profit | 408,637 | 389,593 | 763,258 | 688,583 |
Selling and marketing | 113,691 | 149,566 | 198,470 | 241,387 |
General and administrative | 91,433 | 76,659 | 193,606 | 151,492 |
Research and development | 74,216 | 76,197 | 147,324 | 145,160 |
Depreciation and amortization | 13,691 | 12,024 | 26,109 | 23,281 |
Business reorganization | 239 | 327 | 239 | 713 |
Total operating expenses | 293,270 | 314,773 | 565,748 | 562,033 |
Income from operations | 115,367 | 74,820 | 197,510 | 126,550 |
Interest and other, net | 2,706 | 8,054 | 10,924 | 18,479 |
Loss on long-term investments | 655 | 0 | 655 | 0 |
Income before income taxes | 117,418 | 82,874 | 207,779 | 145,029 |
Provision for income taxes | 18,097 | 11,059 | 19,953 | 26,934 |
Net income | $ 99,321 | $ 71,815 | $ 187,826 | $ 118,095 |
Earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.87 | $ 0.63 | $ 1.65 | $ 1.05 |
Diluted earnings per share (in dollars per share) | $ 0.86 | $ 0.63 | $ 1.63 | $ 1.04 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 99,321 | $ 71,815 | $ 187,826 | $ 118,095 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 18,861 | (12,567) | 23,562 | (21,364) |
Cash flow hedges: | ||||
Change in unrealized gains | 0 | 5,889 | (3,817) | 6,092 |
Reclassification to earnings | 0 | (4,490) | (1,333) | (3,408) |
Tax effect on effective cash flow hedges | 0 | 696 | 845 | 687 |
Change in fair value of effective cash flow hedge | 0 | 2,095 | (4,305) | 3,371 |
Change in fair value of available for sale securities | (1,554) | (2) | 4,295 | 720 |
Other comprehensive income (loss) | 17,307 | (10,474) | 23,552 | (17,273) |
Comprehensive income | $ 116,628 | $ 61,341 | $ 211,378 | $ 100,822 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating activities: | ||
Net income | $ 187,826 | $ 118,095 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and impairment of software development costs and licenses | 92,664 | 72,505 |
Depreciation | 25,826 | 23,037 |
Amortization and impairment of intellectual property | 11,801 | 10,627 |
Stock-based compensation | 98,719 | 113,199 |
Other, net | (2,631) | 4,325 |
Changes in assets and liabilities: | ||
Accounts receivable | (189,477) | (463,019) |
Inventory | (7,266) | (12,064) |
Software development costs and licenses | (127,290) | (51,932) |
Prepaid expenses and other assets | 65,296 | (131,055) |
Deferred revenue | 284,441 | 66,148 |
Deferred cost of goods sold | 4,753 | 15,287 |
Accounts payable, accrued expenses and other liabilities | 182,083 | 379,005 |
Net cash provided by operating activities | 626,745 | 144,158 |
Investing activities: | ||
Change in bank time deposits | (218,239) | 6,720 |
Proceeds from available-for-sale securities | 260,729 | 137,071 |
Purchases of available-for-sale securities | (435,511) | (141,244) |
Purchases of fixed assets | (25,021) | (25,532) |
Purchases of long-term investments | (9,100) | (4,500) |
Business acquisitions | (75,482) | (8,715) |
Net cash used in investing activities | (502,624) | (36,200) |
Financing activities: | ||
Tax payment related to net share settlements on restricted stock awards | (48,202) | (61,478) |
Issuance of common stock | 6,503 | 0 |
Net cash used in financing activities | (41,699) | (61,478) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents | 8,966 | (8,063) |
Net change in cash, cash equivalents, and restricted cash and cash equivalents | 91,388 | 38,417 |
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year | 1,993,392 | 1,391,986 |
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | $ 2,084,780 | $ 1,430,403 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Mar. 31, 2019 | 134,602 | (22,421) | ||||
Beginning balance at Mar. 31, 2019 | $ 2,040,580 | $ 1,346 | $ 2,019,369 | $ (820,572) | $ 877,626 | $ (37,189) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 118,095 | 118,095 | ||||
Change in cumulative foreign currency translation adjustment | (21,364) | (21,364) | ||||
Change in unrealized gains on cash flow hedge, net | 3,371 | 3,371 | ||||
Net unrealized gain on available-for-sale securities, net of taxes | 720 | 720 | ||||
Stock-based compensation | 96,706 | 96,706 | ||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 1,503 | |||||
Issuance of restricted stock, net of forfeitures and cancellations | 0 | $ 15 | (15) | |||
Net share settlement of restricted stock awards (in shares) | (551) | |||||
Net share settlement of restricted stock awards | (61,478) | $ (6) | (61,472) | |||
Employee share purchase plan settlement (in shares) | 62 | |||||
Employee share purchase plan settlement | 5,133 | $ 1 | 5,132 | |||
Ending balance (in shares) at Sep. 30, 2019 | 135,616 | (22,421) | ||||
Ending balance at Sep. 30, 2019 | 2,181,763 | $ 1,356 | 2,059,720 | $ (820,572) | 995,721 | (54,462) |
Beginning balance (in shares) at Jun. 30, 2019 | 135,527 | (22,421) | ||||
Beginning balance at Jun. 30, 2019 | 2,086,327 | $ 1,355 | 2,025,626 | $ (820,572) | 923,906 | (43,988) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 71,815 | 71,815 | ||||
Change in cumulative foreign currency translation adjustment | (12,567) | (12,567) | ||||
Change in unrealized gains on cash flow hedge, net | 2,095 | 2,095 | ||||
Net unrealized gain on available-for-sale securities, net of taxes | (2) | (2) | ||||
Stock-based compensation | 43,455 | 43,455 | ||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 164 | |||||
Issuance of restricted stock, net of forfeitures and cancellations | 0 | $ 2 | (2) | |||
Net share settlement of restricted stock awards (in shares) | (75) | |||||
Net share settlement of restricted stock awards | (9,360) | $ (1) | (9,359) | |||
Employee share purchase plan settlement | 0 | |||||
Ending balance (in shares) at Sep. 30, 2019 | 135,616 | (22,421) | ||||
Ending balance at Sep. 30, 2019 | 2,181,763 | $ 1,356 | 2,059,720 | $ (820,572) | 995,721 | (54,462) |
Beginning balance (in shares) at Mar. 31, 2020 | 135,927 | (22,421) | ||||
Beginning balance at Mar. 31, 2020 | 2,539,244 | $ 1,359 | 2,134,748 | $ (820,572) | 1,282,085 | (58,376) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 187,826 | 187,826 | ||||
Change in cumulative foreign currency translation adjustment | 23,562 | 23,562 | ||||
Change in unrealized gains on cash flow hedge, net | (4,305) | (4,305) | ||||
Net unrealized gain on available-for-sale securities, net of taxes | 4,295 | 4,295 | ||||
Stock-based compensation | 94,712 | 94,712 | ||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 1,094 | |||||
Issuance of restricted stock, net of forfeitures and cancellations | 0 | $ 11 | (11) | |||
Net share settlement of restricted stock awards (in shares) | (341) | |||||
Net share settlement of restricted stock awards | (48,202) | $ (4) | (48,198) | |||
Employee share purchase plan settlement (in shares) | 65 | |||||
Employee share purchase plan settlement | 6,503 | $ 1 | 6,502 | |||
Issuance of shares related to Playdots, Inc. acquisition (in shares) | 604 | |||||
Issuance of shares related to Playdots, Inc. acquisition | 97,647 | $ 6 | 97,641 | |||
Ending balance (in shares) at Sep. 30, 2020 | 137,349 | (22,421) | ||||
Ending balance at Sep. 30, 2020 | 2,901,282 | $ 1,373 | 2,285,394 | $ (820,572) | 1,469,911 | (34,824) |
Beginning balance (in shares) at Jun. 30, 2020 | 136,689 | (22,421) | ||||
Beginning balance at Jun. 30, 2020 | 2,651,028 | $ 1,367 | 2,151,774 | $ (820,572) | 1,370,590 | (52,131) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 99,321 | 99,321 | ||||
Change in cumulative foreign currency translation adjustment | 18,861 | 18,861 | ||||
Net unrealized gain on available-for-sale securities, net of taxes | (1,554) | (1,554) | ||||
Stock-based compensation | 45,675 | 45,675 | ||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 115 | |||||
Issuance of restricted stock, net of forfeitures and cancellations | 0 | $ 1 | (1) | |||
Net share settlement of restricted stock awards (in shares) | (59) | |||||
Net share settlement of restricted stock awards | (9,696) | $ (1) | (9,695) | |||
Employee share purchase plan settlement | 0 | |||||
Issuance of shares related to Playdots, Inc. acquisition (in shares) | 604 | |||||
Issuance of shares related to Playdots, Inc. acquisition | 97,647 | $ 6 | 97,641 | |||
Ending balance (in shares) at Sep. 30, 2020 | 137,349 | (22,421) | ||||
Ending balance at Sep. 30, 2020 | $ 2,901,282 | $ 1,373 | $ 2,285,394 | $ (820,572) | $ 1,469,911 | $ (34,824) |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Sep. 30, 2020 | |
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 Rockstar Games, 2K, Private Division, Social Point, and Playdots. 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, including as a result of the COVID-19 pandemic, which may affect economic conditions in a number of different ways and result in uncertainty and risk. 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, 2020. Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation. Recently Adopted 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. We adopted this update effective April 1, 2020. The adoption of this standard did not have a material impact on our Condensed Consolidated Financial Statements. Accounting for Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses , which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that will require the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. For most financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which will generally result in the earlier recognition of credit losses on financial instruments. We adopted this update effective April 1, 2020 under a modified retrospective basis. No adjustment to retained earnings was recorded as a result of the adoption of this standard, which did not have a material impact on our Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Accounting for Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and LIBOR. The guidance includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This guidance is effective immediately and is only available through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements. Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning December 15, 2020 (April 1, 2021 for the Company), with early adoption permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS 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, 2020 2019 2020 2019 Net revenue recognized: Service and other $ 551,576 $ 421,747 $ 1,083,626 $ 846,132 Product 289,566 436,094 588,826 552,168 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 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, 2020 2019 2020 2019 Net revenue recognized: Recurrent consumer spending $ 495,724 $ 318,468 $ 975,129 $ 633,326 Full game and other 345,418 539,373 697,323 764,974 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 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, 2020 2019 2020 2019 Net revenue recognized: United States $ 503,583 $ 494,661 $ 974,073 $ 825,140 International 337,559 363,180 698,379 573,160 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 Platform Net revenue by platform was as follows: Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Net revenue recognized: Console $ 641,269 $ 651,818 $ 1,252,954 $ 1,086,632 PC and other 199,873 206,023 419,498 311,668 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 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, 2020 2019 2020 2019 Net revenue recognized: Digital online $ 711,299 $ 615,774 $ 1,437,525 $ 1,043,555 Physical retail and other 129,843 242,067 234,927 354,745 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 Deferred Revenue We record deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations. Deferred revenue, including current and non-current balances as of September 30, 2020 and March 31, 2020 were $1,095,944 and $806,123, respectively. For the three months ended September 30, 2020, the additions to our deferred revenue balance were due primarily to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were due primarily to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business. During the three months ended September 30, 2020 and 2019, $241,732 and $234,411, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. During the six months ended September 30, 2020 and 2019, $612,946 and $564,833, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. As of September 30, 2020, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $1,223,304, which includes our deferred revenue balances and amounts to be invoiced and recognized in future periods. We expect to recognize approximately $1,092,423 of this balance as revenue over the next 12 months, and the remainder thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee. As of September 30, 2020 and March 31, 2020, our contract asset balances were $98,053 and $81,625, respectively, which are recorded within Prepaid expenses and other in our Condensed Consolidated Balance Sheets. |
MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT | 6 Months Ended |
Sep. 30, 2020 | |
MANAGEMENT AGREEMENT | |
MANAGEMENT AGREEMENT | MANAGEMENT AGREEMENT In November 2017, we entered into a new management agreement (the "2017 Management Agreement"), with ZelnickMedia Corporation ("ZelnickMedia") that replaces our previous agreement with ZelnickMedia and pursuant to which ZelnickMedia provides financial and management consulting services through March 31, 2024. The 2017 Management Agreement became effective January 1, 2018. 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 $2,605 and $1,705 during the three months ended September 30, 2020 and 2019, respectively, and $5,270 and $3,375 during the six months ended September 30, 2020 and 2019, respectively. We recorded stock-based compensation expense for restricted stock units granted to ZelnickMedia, which is included in General and administrative expenses, of $6,887 and $5,956 during the three months ended September 30, 2020 and 2019, respectively, and $13,657 and $11,501 during the six months ended September 30, 2020 and 2019, respectively. In connection with the 2017 Management Agreement, we have granted restricted stock units as follows: Six Months Ended September 30, 2020 2019 Time-based 79 92 Market-based(1) 145 168 Performance-based(1) IP 24 28 Recurrent Consumer Spending ("RCS") 24 28 Total—Performance-based 48 56 Total Restricted Stock Units 272 316 _______________________________________________________________________________ (1) Represents the maximum number of shares eligible to vest. Time-based restricted stock units granted in fiscal year 2021 will vest on April 13, 2022, and those granted in fiscal year 2020 will vest on April 13, 2021, 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 fiscal year 2021 are eligible to vest on April 13, 2022, and those granted in fiscal year 2020 are eligible to vest on April 13, 2021, 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 fiscal year 2021 are eligible to vest on April 13, 2022, and those granted in fiscal year 2020 are eligible to vest on April 13, 2021, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. The 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 588 and 613 as of September 30, 2020 and March 31, 2020, respectively. During the three and six months ended September 30, 2020, 297 restricted stock units previously granted to ZelnickMedia vested, and no restricted stock units were forfeited by ZelnickMedia. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, prepaid expenses and other, 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, 2020 Quoted prices Significant Significant Balance Sheet Classification Money market funds $ 638,313 $ 638,313 $ — $ — Cash and cash equivalents Bank-time deposits 204,000 204,000 — — Cash and cash equivalents Commercial paper 33,229 — 33,229 — Cash and cash equivalents Corporate bonds 4,133 — 4,133 — Cash and cash equivalents Corporate bonds 519,645 — 519,645 — Short-term investments Bank-time deposits 409,239 409,239 — — Short-term investments US Treasuries 33,197 33,197 — — Short-term investments Asset-backed securities 950 — 950 — Short-term investments Commercial paper 77,755 — 77,755 — Short-term investments Money market funds 435,771 435,771 — — Restricted cash and cash equivalents Bank-time deposits 533 533 — — Restricted cash and cash equivalents Money market funds 289,536 289,536 — — Long-term restricted cash and cash equivalents Private equity 5,564 — — 5,564 Other assets Foreign currency forward contracts (204) — (204) — Accrued expenses and other current liabilities Total recurring fair value measurements, net $ 2,651,661 $ 2,010,589 $ 635,508 $ 5,564 March 31, 2020 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 $ 497,861 $ 497,861 $ — $ — Cash and cash equivalents Bank-time deposits 313,757 313,757 — — Cash and cash equivalents Commercial paper 97,544 — 97,544 — Cash and cash equivalents Corporate bonds 9,888 — 9,888 — Cash and cash equivalents Money market funds 546,604 546,604 — — Restricted cash and cash equialents Corporate bonds 334,631 — 334,631 — Short-term investments Bank-time deposits 191,000 191,000 — — Short-term investments US Treasuries 30,819 30,819 — — Short-term investments Commercial paper 87,553 — 87,553 — Short-term investments Cross-currency swap 11,275 — 11,275 — Prepaid expenses and other Money market funds 89,124 89,124 — — Long-term restricted cash and cash equivalents Private equity 2,759 — — 2,759 Other assets Foreign currency forward contracts (11) — (11) — Accrued and other current liabilities Total recurring fair value measurements, net $ 2,212,804 $ 1,669,165 $ 540,880 $ 2,759 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, 2020. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 6 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS Our Short-term investments consisted of the following: September 30, 2020 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 409,239 $ — $ — $ 409,239 Available-for-sale securities: Corporate bonds 517,663 2,193 (211) 519,645 US Treasuries 33,035 162 — 33,197 Asset-backed securities 945 5 — 950 Commercial paper 77,755 — — 77,755 Total Short-term investments $ 1,038,637 $ 2,360 $ (211) $ 1,040,786 March 31, 2020 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 191,000 $ — $ — $ 191,000 Available-for-sale securities: Corporate bonds 337,752 307 (3,428) 334,631 US Treasuries 30,481 338 — 30,819 Commercial paper 87,553 — — 87,553 Total short-term investments $ 646,786 $ 645 $ (3,428) $ 644,003 The following table summarizes the contracted maturities of our short-term investments at September 30, 2020: September 30, 2020 Amortized Fair Short-term investments Due in 1 year or less $ 828,987 $ 830,369 Due in 1 - 2 years 208,705 209,467 Due in 2 - 3 years 945 950 Total short-term investments $ 1,038,637 $ 1,040,786 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 March 31, 2020 Forward contracts to sell foreign currencies $ 193,693 $ 122,024 Forward contracts to purchase foreign currencies 71,783 52,596 For the three months ended September 30, 2020 and 2019, we recorded a loss of $1,029 and a gain of $2,210, respectively, and for the six months ended September 30, 2020 and 2019 we recorded a loss of $3,685 and a loss of $1,087, 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 swap In August 2017, we entered into a cross-currency swap agreement related to an intercompany loan that has been designated and accounted for as a cash flow hedge of foreign currency exchange risk. During the three months ended June 30, 2020, we settled the intercompany loan and cross-currency swap, thereby discontinuing the cash flow hedge. As a result, we reclassified $3,109 from Accumulated other comprehensive income (loss) to earnings as an increase to Interest and other, net on our Condensed Consolidated Statement of Operations. We also received $7,420 in cash to settle our corresponding derivative asset. |
INVENTORY
INVENTORY | 6 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory balances by category were as follows: September 30, 2020 March 31, 2020 Finished products $ 24,660 $ 17,984 Parts and supplies 2,274 1,124 Inventory $ 26,934 $ 19,108 Estimated product returns included in inventory at September 30, 2020 and March 31, 2020 were $425 and $506, respectively. |
SOFTWARE DEVELOPMENT COSTS AND
SOFTWARE DEVELOPMENT COSTS AND LICENSES | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 March 31, 2020 Current Non-current Current Non-current Software development costs, internally developed $ 51,998 $ 309,160 $ 17,367 $ 305,970 Software development costs, externally developed 12,087 91,205 10,971 92,908 Licenses 9,629 3,025 11,978 2,900 Software development costs and licenses $ 73,714 $ 403,390 $ 40,316 $ 401,778 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 March 31, 2020 Software development royalties $ 713,928 $ 822,416 Licenses 133,563 57,651 Compensation and benefits 95,379 81,791 Refund liability 63,435 77,829 Marketing and promotions 33,089 40,797 Other 109,223 89,400 Accrued expenses and other current liabilities $ 1,148,617 $ 1,169,884 |
DEBT
DEBT | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Credit Agreement On February 8, 2019, we entered into an unsecured Credit Agreement (the “Credit Agreement”) that runs through February 8, 2024. The Credit Agreement provides for an unsecured five-year revolving credit facility with commitments of $200,000, including sublimits for (i) the issuance of letters of credit in an aggregate face amount of up to $25,000 and (ii) borrowings and letters of credit denominated in Pounds Sterling, Euros, and Canadian Dollars in an aggregate principal amount of up to $25,000. In addition, the Credit Agreement contains uncommitted incremental capacity permitting the incurrence of up to an additional $250,000 in term loans or revolving credit facilities. Loans under the Credit Agreement will bear interest at a rate of (a) 0.250% to 0.750% above a certain base rate (3.25% at September 30, 2020) or (b) 1.125% to 1.750% above LIBOR (approximately 1.48% at September 30, 2020), which rates are determined by reference to our consolidated total net leverage ratio. We had no outstanding borrowings at September 30, 2020. Information related to availability on our Credit Agreement was as follows: September 30, 2020 March 31, 2020 Available borrowings $ 198,336 $ 198,336 Outstanding letters of credit 1,664 1,664 We recorded interest expense and fees related to the Credit Agreement of $82 and $84 for the three months ended September 30, 2020 and 2019, respectively, and $164 and $166 for the six months ended September 30, 2020 and 2019, respectively. The Credit Agreement also includes, among other terms and conditions, maximum leverage ratio, minimum cash reserves and, in certain circumstances, minimum interest coverage ratio financial covenants, as well as limitations on us and each of our subsidiaries’ ability to: create, incur, assume or be liable for indebtedness; dispose of assets outside the ordinary course; acquire, merge or consolidate with or into another person or entity; create, incur or allow any lien on any of its property; make investments; or pay dividends or make distributions, in each case subject to certain exceptions. In addition, the Credit Agreement provides for certain events of default such as nonpayment of principal and interest when due thereunder, breaches of representations and warranties, noncompliance with covenants, acts of insolvency and default on indebtedness held by third parties (subject to certain limitations and cure periods). |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 6 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (EPS) | EARNINGS 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, 2020 2019 2020 2019 Computation of Basic earnings per share: Net income $ 99,321 $ 71,815 $ 187,826 $ 118,095 Weighted average shares outstanding—basic 114,444 113,117 114,153 112,869 Basic earnings per share $ 0.87 $ 0.63 $ 1.65 $ 1.05 Computation of Diluted earnings per share: Net income $ 99,321 $ 71,815 $ 187,826 $ 118,095 Weighted average shares outstanding—basic 114,444 113,117 114,153 112,869 Add: dilutive effect of common stock equivalents 970 960 1,092 1,056 Weighted average common shares outstanding—diluted 115,414 114,077 115,245 113,925 Diluted earnings per share $ 0.86 $ 0.63 $ 1.63 $ 1.04 During the six months ended September 30, 2020, 1,112 restricted stock awards vested, we granted 729 unvested restricted stock awards, and 18 unvested restricted stock awards were forfeited. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2020 $ (60,535) $ 600 $ 4,305 $ (2,746) $ (58,376) Other comprehensive income (loss) before reclassifications 23,562 — (2,972) 4,295 24,885 Amounts reclassified from accumulated other comprehensive loss — — (1,333) — (1,333) Balance at September 30, 2020 $ (36,973) $ 600 $ — $ 1,549 $ (34,824) Six Months Ended September 30, 2019 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2019 $ (33,090) $ 600 $ (5,285) $ 586 $ (37,189) Other comprehensive income (loss) before reclassifications (21,364) — 6,779 720 (13,865) Amounts reclassified from accumulated other comprehensive loss — — (3,408) — (3,408) Balance at September 30, 2019 $ (54,454) $ 600 $ (1,914) $ 1,306 $ (54,462) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020, we did not have any significant changes to our commitments since March 31, 2020. Legal and Other Proceedings We are, or may become, subject to demands and claims (including intellectual property and employment related 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. |
BUSINESS REORGANIZATION
BUSINESS REORGANIZATION | 6 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
BUSINESS REORGANIZATION | BUSINESS REORGANIZATIONIn the first quarter of fiscal year 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 recorded expense of $239 and $327 for business reorganization during the three months ended September 30, 2020 and 2019, respectively, and $239 and $713 during the six months ended September 30, 2020 and 2019, respectively, due to updating estimates for employee separation costs. During the six months ended September 30, 2020, we made payments of $3,500 related to these reorganization activities. As of September 30, 2020, $3,096 remained accrued in Accrued expenses and other 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, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe provision for income taxes for the three months ended September 30, 2020 is based on our projected annual effective tax rate for fiscal year 2021, adjusted for specific items that are required to be recognized in the period in which they are incurred. The provision for income taxes was $18,097 for the three months ended September 30, 2020 as compared to $11,059 for the prior year period. When compared to the statutory rate of 21%, the effective tax rate of 15.4% for the three months ended September 30, 2020 was due primarily to a tax benefit of $5,730 due to tax credits, excess tax benefits of $2,321 from employee stock-based compensation, and the geographic mix of earnings. The provision for income taxes for the six months ended September 30, 2020 is based on our projected annual effective tax rate for fiscal year 2021, adjusted for specific items that are required to be recognized in the period in which they are incurred. The provision for income taxes was $19,953 for the six months ended September 30, 2020 as compared to $26,934 for the prior year period. When compared to the statutory rate of 21%, the effective tax rate of 9.6% for the six months ended September 30, 2020 was due primarily to a tax benefit of $10,662 due to tax credits and excess tax benefits of $10,188 from employee stock-based compensation. 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. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On September 4, 2020, we completed the acquisition of privately-held Playdots, Inc. ("Playdots"), a New York City based free-to-play mobile game developer, for consideration of $97,846 in cash and 603,843 shares of our common stock. The cash portion was funded from our cash on hand. Of the cash consideration, $13,440 was contractually deferred and accrued for within Accrued expenses and other current liabilities within our Condensed Consolidated Balance Sheet. We acquired Playdots as part of our ongoing strategy to expand selectively our portfolio of owned intellectual property and to diversify and strengthen further our mobile offerings. The acquisition-date fair value of the consideration totaled $195,493, which consisted of the following: Fair value of purchase consideration Cash $ 97,846 Common stock (603,843 shares) 97,647 Total $ 195,493 We used the acquisition method of accounting and recognized assets at their fair value as of the date of acquisition, with the excess recorded to goodwill. The preliminary fair values of net tangible and intangible assets are management’s estimates based on the information available at the acquisition date and may change over the measurement period, which will end no later than one year from the acquisition date, as additional information is received. The following table summarizes the preliminary acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Playdots: Fair Value Weighted average useful life Cash acquired $ 12,098 N/A Other tangible net assets 8,206 N/A Other liabilities assumed (24,680) N/A Intangible Assets Developed game technology 69,000 6 User base 6,200 1 Branding and trade names 3,400 8 Game engine technology 2,200 4 Goodwill 119,069 N/A Total $ 195,493 Goodwill, which is not deductible for U.S. income tax purposes, is primarily attributable to the assembled workforce of the acquired business and expected synergies at the time of the acquisition. The amounts of revenue and earnings of Playdots included in our Consolidated Statement of Operations from the acquisition date to the period ending September 30, 2020 are as follows: September 4, 2020 to September 30, 2020 Net revenue $ 1,234 Net income (loss) $ (6,049) The following table summarizes the pro-forma consolidated results of operations (unaudited) for the three and six months ended September 30, 2020 and 2019, as though the acquisition had occurred on April 1, 2019, the beginning of Fiscal 2020, and Playdots had been included in our consolidated results for the entire periods subsequent to that date. Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Pro-forma Net revenue $ 849,872 $ 862,096 $ 1,693,352 $ 863,431 Pro-forma Net income $ 95,147 $ 60,705 $ 177,250 $ 47,435 The unaudited pro-forma consolidated results above are based on the historical financial statements of the Company and Playdots and not necessarily indicative of the results of operations that would have been achieved if the acquisition was completed at the beginning of Fiscal 2020 and are not indicative of the future operating results of the combined company. The financial information for Playdots prior to the acquisition has been included in the pro-forma results of operations and includes certain adjustments to the historical consolidated financial statements of Playdots to align with the Company's accounting policies. The pro-forma consolidated results of operations also include the business combination accounting effects resulting from the acquisition, including amortization expense related to finite-lived intangible assets acquired and the related tax effects assuming that the business combination occurred on April 1, 2019. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Sep. 30, 2020 | |
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, including as a result of the COVID-19 pandemic, which may affect economic conditions in a number of different ways and result in uncertainty and risk. 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, 2020. 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 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. We adopted this update effective April 1, 2020. The adoption of this standard did not have a material impact on our Condensed Consolidated Financial Statements. Accounting for Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses , which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that will require the reflection of expected credit losses and will also require consideration of a broader range of reasonable and supportable information to determine credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. For most financial instruments, the standard will require the use of a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses, which will generally result in the earlier recognition of credit losses on financial instruments. We adopted this update effective April 1, 2020 under a modified retrospective basis. No adjustment to retained earnings was recorded as a result of the adoption of this standard, which did not have a material impact on our Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Accounting for Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional guidance to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and LIBOR. The guidance includes practical expedients for contract modifications due to reference rate reform. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. This guidance is effective immediately and is only available through December 31, 2022. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements. Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning December 15, 2020 (April 1, 2021 for the Company), with early adoption permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net Revenue by Product Platform | Net revenue by product revenue and service and other was as follows: Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Net revenue recognized: Service and other $ 551,576 $ 421,747 $ 1,083,626 $ 846,132 Product 289,566 436,094 588,826 552,168 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 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, 2020 2019 2020 2019 Net revenue recognized: Recurrent consumer spending $ 495,724 $ 318,468 $ 975,129 $ 633,326 Full game and other 345,418 539,373 697,323 764,974 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 Net revenue by platform was as follows: Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Net revenue recognized: Console $ 641,269 $ 651,818 $ 1,252,954 $ 1,086,632 PC and other 199,873 206,023 419,498 311,668 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Net revenue recognized: Digital online $ 711,299 $ 615,774 $ 1,437,525 $ 1,043,555 Physical retail and other 129,843 242,067 234,927 354,745 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 |
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, 2020 2019 2020 2019 Net revenue recognized: United States $ 503,583 $ 494,661 $ 974,073 $ 825,140 International 337,559 363,180 698,379 573,160 Total net revenue $ 841,142 $ 857,841 $ 1,672,452 $ 1,398,300 |
MANAGEMENT AGREEMENT (Tables)
MANAGEMENT AGREEMENT (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
MANAGEMENT AGREEMENT | |
Schedule of Restricted Stock Units Granted | In connection with the 2017 Management Agreement, we have granted restricted stock units as follows: Six Months Ended September 30, 2020 2019 Time-based 79 92 Market-based(1) 145 168 Performance-based(1) IP 24 28 Recurrent Consumer Spending ("RCS") 24 28 Total—Performance-based 48 56 Total Restricted Stock Units 272 316 _______________________________________________________________________________ (1) Represents the maximum number of shares eligible to vest. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 Quoted prices Significant Significant Balance Sheet Classification Money market funds $ 638,313 $ 638,313 $ — $ — Cash and cash equivalents Bank-time deposits 204,000 204,000 — — Cash and cash equivalents Commercial paper 33,229 — 33,229 — Cash and cash equivalents Corporate bonds 4,133 — 4,133 — Cash and cash equivalents Corporate bonds 519,645 — 519,645 — Short-term investments Bank-time deposits 409,239 409,239 — — Short-term investments US Treasuries 33,197 33,197 — — Short-term investments Asset-backed securities 950 — 950 — Short-term investments Commercial paper 77,755 — 77,755 — Short-term investments Money market funds 435,771 435,771 — — Restricted cash and cash equivalents Bank-time deposits 533 533 — — Restricted cash and cash equivalents Money market funds 289,536 289,536 — — Long-term restricted cash and cash equivalents Private equity 5,564 — — 5,564 Other assets Foreign currency forward contracts (204) — (204) — Accrued expenses and other current liabilities Total recurring fair value measurements, net $ 2,651,661 $ 2,010,589 $ 635,508 $ 5,564 March 31, 2020 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 $ 497,861 $ 497,861 $ — $ — Cash and cash equivalents Bank-time deposits 313,757 313,757 — — Cash and cash equivalents Commercial paper 97,544 — 97,544 — Cash and cash equivalents Corporate bonds 9,888 — 9,888 — Cash and cash equivalents Money market funds 546,604 546,604 — — Restricted cash and cash equialents Corporate bonds 334,631 — 334,631 — Short-term investments Bank-time deposits 191,000 191,000 — — Short-term investments US Treasuries 30,819 30,819 — — Short-term investments Commercial paper 87,553 — 87,553 — Short-term investments Cross-currency swap 11,275 — 11,275 — Prepaid expenses and other Money market funds 89,124 89,124 — — Long-term restricted cash and cash equivalents Private equity 2,759 — — 2,759 Other assets Foreign currency forward contracts (11) — (11) — Accrued and other current liabilities Total recurring fair value measurements, net $ 2,212,804 $ 1,669,165 $ 540,880 $ 2,759 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-term Investments | Our Short-term investments consisted of the following: September 30, 2020 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 409,239 $ — $ — $ 409,239 Available-for-sale securities: Corporate bonds 517,663 2,193 (211) 519,645 US Treasuries 33,035 162 — 33,197 Asset-backed securities 945 5 — 950 Commercial paper 77,755 — — 77,755 Total Short-term investments $ 1,038,637 $ 2,360 $ (211) $ 1,040,786 March 31, 2020 Gross Cost or Gains Losses Fair Value Short-term investments Bank time deposits $ 191,000 $ — $ — $ 191,000 Available-for-sale securities: Corporate bonds 337,752 307 (3,428) 334,631 US Treasuries 30,481 338 — 30,819 Commercial paper 87,553 — — 87,553 Total short-term investments $ 646,786 $ 645 $ (3,428) $ 644,003 |
Summary of the Contracted Maturities of Short-Term Investments | The following table summarizes the contracted maturities of our short-term investments at September 30, 2020: September 30, 2020 Amortized Fair Short-term investments Due in 1 year or less $ 828,987 $ 830,369 Due in 1 - 2 years 208,705 209,467 Due in 2 - 3 years 945 950 Total short-term investments $ 1,038,637 $ 1,040,786 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 March 31, 2020 Forward contracts to sell foreign currencies $ 193,693 $ 122,024 Forward contracts to purchase foreign currencies 71,783 52,596 |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory Balances by Category | Inventory balances by category were as follows: September 30, 2020 March 31, 2020 Finished products $ 24,660 $ 17,984 Parts and supplies 2,274 1,124 Inventory $ 26,934 $ 19,108 |
SOFTWARE DEVELOPMENT COSTS AN_2
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 March 31, 2020 Current Non-current Current Non-current Software development costs, internally developed $ 51,998 $ 309,160 $ 17,367 $ 305,970 Software development costs, externally developed 12,087 91,205 10,971 92,908 Licenses 9,629 3,025 11,978 2,900 Software development costs and licenses $ 73,714 $ 403,390 $ 40,316 $ 401,778 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 March 31, 2020 Software development royalties $ 713,928 $ 822,416 Licenses 133,563 57,651 Compensation and benefits 95,379 81,791 Refund liability 63,435 77,829 Marketing and promotions 33,089 40,797 Other 109,223 89,400 Accrued expenses and other current liabilities $ 1,148,617 $ 1,169,884 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Information Related to Availability on Credit Agreement | Information related to availability on our Credit Agreement was as follows: September 30, 2020 March 31, 2020 Available borrowings $ 198,336 $ 198,336 Outstanding letters of credit 1,664 1,664 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 2019 2020 2019 Computation of Basic earnings per share: Net income $ 99,321 $ 71,815 $ 187,826 $ 118,095 Weighted average shares outstanding—basic 114,444 113,117 114,153 112,869 Basic earnings per share $ 0.87 $ 0.63 $ 1.65 $ 1.05 Computation of Diluted earnings per share: Net income $ 99,321 $ 71,815 $ 187,826 $ 118,095 Weighted average shares outstanding—basic 114,444 113,117 114,153 112,869 Add: dilutive effect of common stock equivalents 970 960 1,092 1,056 Weighted average common shares outstanding—diluted 115,414 114,077 115,245 113,925 Diluted earnings per share $ 0.86 $ 0.63 $ 1.63 $ 1.04 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
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, 2020 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2020 $ (60,535) $ 600 $ 4,305 $ (2,746) $ (58,376) Other comprehensive income (loss) before reclassifications 23,562 — (2,972) 4,295 24,885 Amounts reclassified from accumulated other comprehensive loss — — (1,333) — (1,333) Balance at September 30, 2020 $ (36,973) $ 600 $ — $ 1,549 $ (34,824) Six Months Ended September 30, 2019 Foreign Unrealized Unrealized Unrealized Total Balance at March 31, 2019 $ (33,090) $ 600 $ (5,285) $ 586 $ (37,189) Other comprehensive income (loss) before reclassifications (21,364) — 6,779 720 (13,865) Amounts reclassified from accumulated other comprehensive loss — — (3,408) — (3,408) Balance at September 30, 2019 $ (54,454) $ 600 $ (1,914) $ 1,306 $ (54,462) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The acquisition-date fair value of the consideration totaled $195,493, which consisted of the following: Fair value of purchase consideration Cash $ 97,846 Common stock (603,843 shares) 97,647 Total $ 195,493 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Playdots: Fair Value Weighted average useful life Cash acquired $ 12,098 N/A Other tangible net assets 8,206 N/A Other liabilities assumed (24,680) N/A Intangible Assets Developed game technology 69,000 6 User base 6,200 1 Branding and trade names 3,400 8 Game engine technology 2,200 4 Goodwill 119,069 N/A Total $ 195,493 |
Business Acquisition, Pro Forma Information | The amounts of revenue and earnings of Playdots included in our Consolidated Statement of Operations from the acquisition date to the period ending September 30, 2020 are as follows: September 4, 2020 to September 30, 2020 Net revenue $ 1,234 Net income (loss) $ (6,049) The following table summarizes the pro-forma consolidated results of operations (unaudited) for the three and six months ended September 30, 2020 and 2019, as though the acquisition had occurred on April 1, 2019, the beginning of Fiscal 2020, and Playdots had been included in our consolidated results for the entire periods subsequent to that date. Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 Pro-forma Net revenue $ 849,872 $ 862,096 $ 1,693,352 $ 863,431 Pro-forma Net income $ 95,147 $ 60,705 $ 177,250 $ 47,435 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Total net revenue | $ 841,142 | $ 857,841 | $ 1,672,452 | $ 1,398,300 |
Service and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 551,576 | 421,747 | 1,083,626 | 846,132 |
Product | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 289,566 | 436,094 | 588,826 | 552,168 |
Recurrent consumer spending | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 495,724 | 318,468 | 697,323 | 764,974 |
Full game and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 345,418 | 539,373 | 975,129 | 633,326 |
Console | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 641,269 | 651,818 | 1,252,954 | 1,086,632 |
PC and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 199,873 | 206,023 | 419,498 | 311,668 |
Digital online | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | 711,299 | 615,774 | 1,437,525 | 1,043,555 |
Physical retail and other | ||||
Revenue from External Customer [Line Items] | ||||
Total net revenue | $ 129,843 | $ 242,067 | $ 234,927 | $ 354,745 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Geographical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 841,142 | $ 857,841 | $ 1,672,452 | $ 1,398,300 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | 503,583 | 494,661 | 974,073 | 825,140 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenue | $ 337,559 | $ 363,180 | $ 698,379 | $ 573,160 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract with liability | $ 1,095,944 | $ 1,095,944 | $ 806,123 | ||
Contract with liability recognized | 241,732 | $ 234,411 | 612,946 | $ 564,833 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining obligation | 1,223,304 | 1,223,304 | |||
Contract asset | 98,053 | 98,053 | $ 81,625 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining obligation | $ 1,092,423 | $ 1,092,423 | |||
Remaining obligation period | 12 months | 12 months |
MANAGEMENT AGREEMENT (Details)
MANAGEMENT AGREEMENT (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Restricted stock units | ||||||
Management Agreement | ||||||
Stock-based compensation expense for non-employee awards | $ 6,887 | $ 5,956 | $ 13,657 | $ 11,501 | ||
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) | 297,000 | |||||
Forfeited (in shares) | 0 | |||||
Zelnick Media Corporation | ||||||
Management Agreement | ||||||
Consulting expense benefit | $ 2,605 | $ 1,705 | $ 5,270 | $ 3,375 | ||
Zelnick Media Corporation | 2017 Management Agreement | ||||||
Management Agreement | ||||||
Annual management fee | $ 3,100 | |||||
Measurement period | 2 years | |||||
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 | Time-based | ||||||
Management Agreement | ||||||
Granted (in shares) | 79,000 | 92,000 | ||||
Zelnick Media Corporation | 2017 Management Agreement | Market-based | ||||||
Management Agreement | ||||||
Granted (in shares) | 145,000 | 168,000 | ||||
Zelnick Media Corporation | 2017 Management Agreement | Performance-based | ||||||
Management Agreement | ||||||
Granted (in shares) | 48,000 | 56,000 | ||||
Percentage of grants earned | 50.00% | |||||
Zelnick Media Corporation | 2017 Management Agreement | IP | ||||||
Management Agreement | ||||||
Granted (in shares) | 24,000 | 28,000 | ||||
Zelnick Media Corporation | 2017 Management Agreement | Recurrent Consumer Spending ("RCS") | ||||||
Management Agreement | ||||||
Granted (in shares) | 24,000 | 28,000 | ||||
Zelnick Media Corporation | 2017 Management Agreement | Restricted stock units | ||||||
Management Agreement | ||||||
Granted (in shares) | 272,000 | 316,000 | ||||
Unvested portion of the shares of restricted stock granted (in shares) | 588,000 | 588,000 | 613,000 | |||
Zelnick Media Corporation | 2017 Management Agreement | Market-based restricted stock | ||||||
Management Agreement | ||||||
Vesting requirement for market-based restricted stock | 50th |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Assets measured at fair value on a recurring basis | ||
Short-term investments | $ 1,040,786 | $ 644,003 |
Total recurring fair value measurements, net | 2,651,661 | 2,212,804 |
Money market funds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 638,313 | 497,861 |
Restricted cash and cash equivalents | 435,771 | 546,604 |
Long-term restricted cash and cash equivalents | 289,536 | 89,124 |
Bank time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 204,000 | 313,757 |
Short-term investments | 409,239 | 191,000 |
Restricted cash and cash equivalents | 533 | |
Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 33,229 | 97,544 |
Short-term investments | 77,755 | 87,553 |
Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 4,133 | 9,888 |
Short-term investments | 519,645 | 334,631 |
US Treasuries | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 33,197 | 30,819 |
Asset-backed securities | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 950 | |
Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 11,275 | |
Private equity | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 5,564 | 2,759 |
Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | (204) | (11) |
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 | 2,010,589 | 1,669,165 |
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 | 638,313 | 497,861 |
Restricted cash and cash equivalents | 435,771 | 546,604 |
Long-term restricted cash and cash equivalents | 289,536 | 89,124 |
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 | 204,000 | 313,757 |
Short-term investments | 409,239 | 191,000 |
Restricted cash and cash equivalents | 533 | |
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 | 0 |
Short-term investments | 0 | 0 |
Quoted prices in active markets for identical assets (level 1) | Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 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 | 33,197 | 30,819 |
Quoted prices in active markets for identical assets (level 1) | Asset-backed securities | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | |
Quoted prices in active markets for identical assets (level 1) | Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 0 | |
Quoted prices in active markets for identical assets (level 1) | Private equity | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 0 | 0 |
Quoted prices in active markets for identical assets (level 1) | Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | 0 | 0 |
Significant other observable inputs (level 2) | ||
Assets measured at fair value on a recurring basis | ||
Total recurring fair value measurements, net | 635,508 | 540,880 |
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 and cash equivalents | 0 | 0 |
Long-term restricted cash and cash equivalents | 0 | 0 |
Significant other observable inputs (level 2) | Bank time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted 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 | 33,229 | 97,544 |
Short-term investments | 77,755 | 87,553 |
Significant other observable inputs (level 2) | Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 4,133 | 9,888 |
Short-term investments | 519,645 | 334,631 |
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) | Asset-backed securities | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 950 | |
Significant other observable inputs (level 2) | Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 11,275 | |
Significant other observable inputs (level 2) | Private equity | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 0 | 0 |
Significant other observable inputs (level 2) | Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | (204) | (11) |
Significant unobservable inputs (level 3) | ||
Assets measured at fair value on a recurring basis | ||
Total recurring fair value measurements, net | 5,564 | 2,759 |
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 and cash equivalents | 0 | 0 |
Long-term restricted cash and cash equivalents | 0 | 0 |
Significant unobservable inputs (level 3) | Bank time deposits | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted cash and cash equivalents | 0 | |
Significant unobservable inputs (level 3) | Commercial paper | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Significant unobservable inputs (level 3) | Corporate bonds | ||
Assets measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
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) | Asset-backed securities | ||
Assets measured at fair value on a recurring basis | ||
Short-term investments | 0 | |
Significant unobservable inputs (level 3) | Cross-currency swap | ||
Assets measured at fair value on a recurring basis | ||
Prepaid expenses and other | 0 | |
Significant unobservable inputs (level 3) | Private equity | ||
Assets measured at fair value on a recurring basis | ||
Private equity | 5,564 | 2,759 |
Significant unobservable inputs (level 3) | Foreign currency forward contracts | ||
Assets measured at fair value on a recurring basis | ||
Foreign currency forward contracts | $ 0 | $ 0 |
SHORT-TERM INVESTMENTS (Schedul
SHORT-TERM INVESTMENTS (Schedule of Short-Term Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 1,038,637 | $ 646,786 |
Gross Unrealized Gain | 2,360 | 645 |
Gross Unrealized Losses | (211) | (3,428) |
Fair Value | 1,040,786 | 644,003 |
Bank time deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 409,239 | 191,000 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 409,239 | 191,000 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 517,663 | 337,752 |
Gross Unrealized Gain | 2,193 | 307 |
Gross Unrealized Losses | (211) | (3,428) |
Fair Value | 519,645 | 334,631 |
US Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 33,035 | 30,481 |
Gross Unrealized Gain | 162 | 338 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 33,197 | 30,819 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 945 | |
Gross Unrealized Gain | 5 | |
Gross Unrealized Losses | 0 | |
Fair Value | 950 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 77,755 | 87,553 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 77,755 | $ 87,553 |
SHORT-TERM INVESTMENTS (Contrac
SHORT-TERM INVESTMENTS (Contracted Maturities of Short-Term Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized cost, Due in 1 year or less | $ 828,987 | |
Amortized cost, Due in 1-2 years | 208,705 | |
Amortized cost, Due in 2 - 3 years | 945 | |
Cost or Amortized Cost | 1,038,637 | $ 646,786 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair value, Due in 1 year or less | 830,369 | |
Fair value, Due in 1-2 years | 209,467 | |
Fair value, Due in 2 - 3 years | 950 | |
Total fair value | $ 1,040,786 | $ 644,003 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Forward contracts to sell foreign currencies | $ 193,693 | $ 193,693 | $ 122,024 | ||
Forward contracts to purchase foreign currencies | 71,783 | 71,783 | $ 52,596 | ||
Derivative instrument not designated as hedging instruments, gain (loss), net | (1,029) | $ 2,210 | $ (3,685) | $ (1,087) | |
Amount reclassified from accumulated other comprehensive income (loss) to earnings | 3,109 | ||||
Proceeds from settled derivative asset | $ 7,420 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 24,660 | $ 17,984 |
Parts and supplies | 2,274 | 1,124 |
Inventory | 26,934 | 19,108 |
Estimated product returns included in inventory | $ 425 | $ 506 |
SOFTWARE DEVELOPMENT COSTS AN_3
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Software development costs and licenses, Current | $ 73,714,000 | $ 73,714,000 | $ 40,316,000 | ||
Software development costs and licenses, Non-current | 403,390,000 | 403,390,000 | 401,778,000 | ||
Impairment of software development | 0 | $ 0 | 19,695,000 | $ 0 | |
Software development costs, internally developed | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software development costs and licenses, Current | 51,998,000 | 51,998,000 | 17,367,000 | ||
Software development costs and licenses, Non-current | 309,160,000 | 309,160,000 | 305,970,000 | ||
Software development costs, externally developed | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software development costs and licenses, Current | 12,087,000 | 12,087,000 | 10,971,000 | ||
Software development costs and licenses, Non-current | 91,205,000 | 91,205,000 | 92,908,000 | ||
Licenses | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Software development costs and licenses, Current | 9,629,000 | 9,629,000 | 11,978,000 | ||
Software development costs and licenses, Non-current | $ 3,025,000 | $ 3,025,000 | $ 2,900,000 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Mar. 31, 2020 |
Liabilities, Current [Abstract] | ||
Software development royalties | $ 713,928 | $ 822,416 |
Licenses | 133,563 | 57,651 |
Compensation and benefits | 95,379 | 81,791 |
Refund liability | 63,435 | 77,829 |
Marketing and promotions | 33,089 | 40,797 |
Other | 109,223 | 89,400 |
Accrued expenses and other current liabilities | $ 1,148,617 | $ 1,169,884 |
DEBT (Details)
DEBT (Details) - USD ($) | Feb. 08, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 |
Credit Agreement | ||||||
Credit Agreement | ||||||
Debt term | 5 years | |||||
Maximum borrowing capacity | $ 200,000,000 | |||||
Amount of additional borrowings by which maximum borrowing capacity may be increased | 250,000,000 | |||||
Available borrowings | $ 198,336,000 | $ 198,336,000 | $ 198,336,000 | |||
Outstanding letters of credit | 1,664,000 | 1,664,000 | $ 1,664,000 | |||
Interest expense and fees | 82,000 | $ 84,000 | 164,000 | $ 166,000 | ||
Letter of Credit | ||||||
Credit Agreement | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
New Credit Agreement | ||||||
Credit Agreement | ||||||
Outstanding borrowings | $ 0 | $ 0 | ||||
New Credit Agreement | Base rate | ||||||
Credit Agreement | ||||||
Interest rate at end of period | 3.25% | 3.25% | ||||
New Credit Agreement | Base rate | Minimum | ||||||
Credit Agreement | ||||||
Interest rate added to base rate | 0.25% | |||||
New Credit Agreement | Base rate | Maximum | ||||||
Credit Agreement | ||||||
Interest rate added to base rate | 0.75% | |||||
New Credit Agreement | LIBOR | ||||||
Credit Agreement | ||||||
Interest rate at end of period | 1.48% | 1.48% | ||||
New Credit Agreement | LIBOR | Minimum | ||||||
Credit Agreement | ||||||
Interest rate added to base rate | 1.125% | |||||
New Credit Agreement | LIBOR | Maximum | ||||||
Credit Agreement | ||||||
Interest rate added to base rate | 1.75% |
EARNINGS PER SHARE ("EPS") (Sch
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Computation of Basic earnings per share: | ||||
Net income | $ 99,321 | $ 71,815 | $ 187,826 | $ 118,095 |
Weighted average shares outstanding—basic (in shares) | 114,444 | 113,117 | 114,153 | 112,869 |
Basic earnings per share (in dollars per share) | $ 0.87 | $ 0.63 | $ 1.65 | $ 1.05 |
Computation of Diluted earnings per share: | ||||
Net income | $ 99,321 | $ 71,815 | $ 187,826 | $ 118,095 |
Weighted average shares outstanding—basic (in shares) | 114,444 | 113,117 | 114,153 | 112,869 |
Add: dilutive effect of common stock equivalents (in shares) | 970 | 960 | 1,092 | 1,056 |
Weighted average common shares outstanding—diluted (in shares) | 115,414 | 114,077 | 115,245 | 113,925 |
Diluted earnings per share (in dollars per share) | $ 0.86 | $ 0.63 | $ 1.63 | $ 1.04 |
EARNINGS PER SHARE ("EPS") (Nar
EARNINGS PER SHARE ("EPS") (Narrative) (Details) - Restricted stock shares in Thousands | 6 Months Ended |
Sep. 30, 2020shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Restricted stock awards, vested (in shares) | 1,112 |
Restricted stock awards, granted (in shares) | 729 |
Restricted stock awards, canceled (in shares) | 18 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in accumulated other comprehensive loss | ||
Beginning balance | $ 2,539,244 | $ 2,040,580 |
Ending balance | 2,901,282 | 2,181,763 |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss | ||
Beginning balance | (60,535) | (33,090) |
Other comprehensive income (loss) before reclassifications | 23,562 | (21,364) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | (36,973) | (54,454) |
Unrealized gain (loss) on forward contracts | ||
Changes in accumulated other comprehensive loss | ||
Beginning balance | 600 | 600 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | 600 | 600 |
Unrealized gain (loss) on cross-currency swap | ||
Changes in accumulated other comprehensive loss | ||
Beginning balance | 4,305 | (5,285) |
Other comprehensive income (loss) before reclassifications | (2,972) | 6,779 |
Amounts reclassified from accumulated other comprehensive loss | (1,333) | (3,408) |
Ending balance | 0 | (1,914) |
Unrealized gain (loss) on available-for- sales securities | ||
Changes in accumulated other comprehensive loss | ||
Beginning balance | (2,746) | 586 |
Other comprehensive income (loss) before reclassifications | 4,295 | 720 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Ending balance | 1,549 | 1,306 |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in accumulated other comprehensive loss | ||
Beginning balance | (58,376) | (37,189) |
Other comprehensive income (loss) before reclassifications | 24,885 | (13,865) |
Amounts reclassified from accumulated other comprehensive loss | (1,333) | (3,408) |
Ending balance | $ (34,824) | $ (54,462) |
BUSINESS REORGANIZATION (Detail
BUSINESS REORGANIZATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization expense | $ 239 | $ 327 | $ 239 | $ 713 |
Fiscal 2018 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization expense | 239 | $ 327 | 239 | $ 713 |
Payments related to reorganization activities | 3,500 | |||
Restructuring reserve, current | $ 3,096 | $ 3,096 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 18,097 | $ 11,059 | $ 19,953 | $ 26,934 |
Effective rate | 15.40% | 9.60% | ||
Income tax rate reconciliation, tax credit | $ 5,730 | $ 10,662 | ||
Income tax rate reconciliation, employee stock-based compensation | $ 2,321 | $ 10,188 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Thousands | Sep. 04, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||||
Cash paid for business acquisition | $ 75,482 | $ 8,715 | ||
PlayDots | ||||
Business Acquisition [Line Items] | ||||
Cash paid for business acquisition | $ 97,846 | |||
Cash consideration | $ 13,440 | |||
Transaction Costs | $ 2,512 | $ 2,512 | ||
PlayDots | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Issuance of common stock in connection with acquisition (in shares) | 603,843 |
ACQUISITIONS (Schedule of Consi
ACQUISITIONS (Schedule of Consideration at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 04, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Business Acquisition [Line Items] | |||
Cash | $ 75,482 | $ 8,715 | |
PlayDots | |||
Business Acquisition [Line Items] | |||
Cash | $ 97,846 | ||
Common stock (603,843 shares) | 97,647 | ||
Total | $ 195,493 | ||
PlayDots | Common Stock | |||
Business Acquisition [Line Items] | |||
Issuance of common stock in connection with acquisition (in shares) | 603,843 |
ACQUISITIONS (Schedule of Asset
ACQUISITIONS (Schedule of Assets and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Sep. 04, 2020 | Sep. 30, 2020 | Mar. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 119,069 | $ 521,000 | $ 386,494 |
PlayDots | |||
Business Acquisition [Line Items] | |||
Cash acquired | 12,098 | ||
Other tangible net assets | 8,206 | ||
Other liabilities assumed | (24,680) | ||
Total | 195,493 | ||
PlayDots | Developed game technology | |||
Business Acquisition [Line Items] | |||
Intangible assets, excluding goodwill | $ 69,000 | ||
Weighted average useful life | 6 years | ||
PlayDots | User base | |||
Business Acquisition [Line Items] | |||
Intangible assets, excluding goodwill | $ 6,200 | ||
Weighted average useful life | 1 year | ||
PlayDots | Branding and trade names | |||
Business Acquisition [Line Items] | |||
Intangible assets, excluding goodwill | $ 3,400 | ||
Weighted average useful life | 8 years | ||
PlayDots | Game engine technology | |||
Business Acquisition [Line Items] | |||
Intangible assets, excluding goodwill | $ 2,200 | ||
Weighted average useful life | 4 years |
ACQUISITIONS (Schedule of Reven
ACQUISITIONS (Schedule of Revenue and Earnings Included in Statement of Operations) (Details) - PlayDots $ in Thousands | 1 Months Ended |
Sep. 30, 2020USD ($) | |
Business Acquisition [Line Items] | |
Net revenue | $ 1,234 |
Net income (loss) | $ (6,049) |
ACQUISITIONS (Schedule of Pro F
ACQUISITIONS (Schedule of Pro Forma Information) (Details) - PlayDots - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||||
Pro-forma Net revenue | $ 849,872 | $ 862,096 | $ 1,693,352 | $ 863,431 |
Pro-forma Net income | $ 95,147 | $ 60,705 | $ 177,250 | $ 47,435 |