COVER
COVER - USD ($) | 12 Months Ended | ||
Mar. 31, 2024 | May 06, 2024 | Sep. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Mar. 31, 2024 | ||
Current Fiscal Year End Date | --03-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 23,342,656,391 | ||
Entity Common Stock, Shares Outstanding | 171,385,386 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III herein. | ||
Entity Central Index Key | 0000946581 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Mar. 31, 2024 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 754 | $ 827.4 |
Short-term investments | 22 | 187 |
Restricted cash and cash equivalents | 252.1 | 307.6 |
Accounts receivable, net of allowances of $1.2 and $1.3 at March 31, 2024 and 2023, respectively | 679.7 | 763.2 |
Software development costs and licenses | 88.3 | 65.9 |
Contract assets | 85 | 79.9 |
Prepaid expenses and other | 378.6 | 277.1 |
Total current assets | 2,259.7 | 2,508.1 |
Fixed assets, net | 411.1 | 402.8 |
Right-of-use assets | 325.7 | 282.7 |
Software development costs and licenses, net of current portion | 1,446.5 | 1,072.2 |
Goodwill | 4,426.4 | 6,767.1 |
Other intangibles, net | 3,060.6 | 4,453.2 |
Deferred tax assets | 1.9 | 44.8 |
Long-term restricted cash and cash equivalents | 95.9 | 99.6 |
Other assets | 189.1 | 231.6 |
Total assets | 12,216.9 | 15,862.1 |
Current liabilities: | ||
Accounts payable | 195.9 | 140.1 |
Accrued expenses and other current liabilities | 1,062.6 | 1,225.7 |
Deferred revenue | 1,059.5 | 1,078.8 |
Lease liabilities | 63.8 | 60.2 |
Short-term debt, net | 24.6 | 1,346.8 |
Total current liabilities | 2,406.4 | 3,851.6 |
Long-term debt, net | 3,058.3 | 1,733 |
Non-current deferred revenue | 42.9 | 35.5 |
Non-current lease liabilities | 387.3 | 347 |
Non-current software development royalties | 102.1 | 110.2 |
Deferred tax liabilities, net | 340.9 | 534 |
Other long-term liabilities | 211.1 | 208.3 |
Total liabilities | 6,549 | 6,819.6 |
Commitments and contingencies (See Note 14) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5.0 shares authorized: no shares issued and outstanding at March 31, 2024 and 2023 | 0 | 0 |
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 194.5 and 192.6 shares issued and 170.8 and 168.9 outstanding at March 31, 2024 and 2023, respectively | 1.9 | 1.9 |
Additional paid-in capital | 9,371.6 | 9,010.2 |
Treasury stock, at cost; 23.7 and 23.7 common shares at March 31, 2024 and 2023, respectively | (1,020.6) | (1,020.6) |
(Accumulated Deficit) / Retained earnings | (2,579.9) | 1,164.3 |
Accumulated other comprehensive loss | (105.1) | (113.3) |
Total stockholders' equity | 5,667.9 | 9,042.5 |
Total liabilities and stockholders' equity | $ 12,216.9 | $ 15,862.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances | $ 1.2 | $ 1.3 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5 | 5 |
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) | 300 | 300 |
Common stock, shares issued (in shares) | 194.5 | 192.6 |
Common stock, shares outstanding (in shares) | 170.8 | 168.9 |
Treasury stock, shares (in shares) | 23.7 | 23.7 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Total net revenue | $ 5,349.6 | $ 5,349.9 | $ 3,504.8 |
Cost of revenue | 3,107.8 | 3,064.6 | 1,535.4 |
Gross profit | 2,241.8 | 2,285.3 | 1,969.4 |
Selling and marketing | 1,550.2 | 1,586.5 | 516.4 |
Research and development | 948.2 | 887.6 | 406.6 |
General and administrative | 716.1 | 839.5 | 510.9 |
Depreciation and amortization | 171.2 | 122.3 | 61.1 |
Goodwill impairment | 2,342.1 | 0 | 0 |
Business reorganization | 104.6 | 14.6 | 0.8 |
Total operating expenses | 5,832.4 | 3,450.5 | 1,495.8 |
(Loss) income from operations | (3,590.6) | (1,165.2) | 473.6 |
Interest and other, net | (103.6) | (141.9) | (14.2) |
(Loss) gain on fair value adjustments, net | (8.6) | (31) | 6 |
(Loss) income before income taxes | (3,702.8) | (1,338.1) | 465.4 |
Provision for (benefit from) income taxes | 41.4 | (213.4) | 47.4 |
Net (loss) income | $ (3,744.2) | $ (1,124.7) | $ 418 |
(Loss) earnings per share: | |||
Basic (loss) earnings per share (in dollars per share) | $ (22.01) | $ (7.03) | $ 3.62 |
Diluted (loss) earnings per share (in dollars per share) | $ (22.01) | $ (7.03) | $ 3.58 |
Game | |||
Total net revenue | $ 4,693.5 | $ 4,735.6 | $ 3,423.2 |
Advertising | |||
Total net revenue | $ 656.1 | $ 614.3 | $ 81.6 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (3,744.2) | $ (1,124.7) | $ 418 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | 6.7 | (58.9) | (43.6) |
Change in fair value of available-for-sale securities | 1.5 | 2.9 | (5.1) |
Other comprehensive income (loss) | 8.2 | (56) | (48.7) |
Comprehensive (loss) income | $ (3,736) | $ (1,180.7) | $ 369.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Operating activities: | ||||
Net (loss) income | $ (3,744.2) | $ (1,124.7) | $ 418 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Amortization and impairment of software development costs and licenses | 292.7 | 268.3 | 153.3 | |
Stock-based compensation | 335.6 | 317.8 | 183 | |
Noncash lease expense | 61.1 | 81.7 | 34.5 | |
Amortization and impairment of intangibles | 1,418.9 | 1,506.7 | 64.8 | |
Depreciation | 135.5 | 90.3 | 61.2 | |
Goodwill impairment | 2,342.1 | 0 | 0 | |
Interest expense | 140.6 | 122.7 | 6.5 | |
Deferred income taxes | (150.4) | (410.8) | 8.1 | |
Fair value adjustments | 8.6 | 31.5 | (6) | |
Other, net | 30.5 | (26.6) | 16.2 | |
Changes in assets and liabilities, net of effect from purchases of businesses: | ||||
Accounts receivable | 83.7 | 106.8 | (17.9) | |
Software development costs and licenses | (603.4) | (492.8) | (387) | |
Prepaid expenses, other current and other non-current assets | (154.7) | 77.2 | (200.2) | |
Deferred revenue | (11.8) | (141.9) | (30.9) | |
Accounts payable, accrued expenses and other liabilities | (200.9) | (405.1) | (45.6) | |
Net cash (used in) provided by operating activities | (16.1) | 1.1 | 258 | |
Investing activities: | ||||
Change in bank time deposits | 19.8 | 100 | 447 | |
Sale and maturities of available-for-sale securities | 146.9 | 542 | 779.9 | |
Purchases of available-for-sale securities | 0 | 0 | (756.3) | |
Purchases of fixed assets | (141.7) | (204.2) | (158.6) | |
Proceeds from sale of long-term investments | 0 | 20.6 | 0 | |
Purchase of long-term investments | (18.5) | (15.7) | (12.3) | |
Business acquisitions | (18.1) | (3,310.9) | (161.3) | |
Other | (16.6) | (8.1) | 0.8 | |
Net cash (used in) provided by investing activities | (28.2) | (2,876.3) | 139.2 | |
Financing activities: | ||||
Tax payment related to net share settlements on restricted stock awards | (94.1) | (108.1) | (64.1) | |
Repurchase of common stock | 0 | 0 | (200) | |
Issuance of common stock | 39.4 | 65.4 | 19.7 | |
Cost of debt | (10.3) | (22.4) | (12.2) | |
Repayment of debt | (1,339.6) | (200) | (0.2) | |
Settlement of capped calls | 0 | 140.1 | 0 | |
Payment for settlement of convertible notes | 0 | (1,166.8) | 0 | |
Proceeds from issuance of debt | 1,348.9 | 3,248.9 | 0 | |
Payment of contingent earn-out consideration | (35.7) | (26.8) | 0 | |
Net cash (used in) provided by financing activities | (91.4) | 1,930.3 | (256.8) | |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents | 3.1 | (15.9) | (5.2) | |
Net change in cash, cash equivalents, and restricted cash and cash equivalents | (132.6) | (960.8) | 135.2 | |
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year | [1] | 1,234.6 | 2,195.4 | 2,060.2 |
Cash, cash equivalents, and restricted cash equivalents, end of year | [1] | 1,102 | 1,234.6 | 2,195.4 |
Supplemental data: | ||||
Interest paid | 137 | 79 | 0 | |
Income taxes paid | $ 150.2 | $ 176.8 | $ 31 | |
[1] Cash, cash equivalents and restricted cash and cash equivalents shown on our Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Consolidated Balance Sheet. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Zynga Inc | Popcore Limited | Common Stock | Common Stock Zynga Inc | Common Stock Popcore Limited | Additional Paid-in Capital | Additional Paid-in Capital Zynga Inc | Additional Paid-in Capital Popcore Limited | Treasury Stock | Retained Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income |
Beginning balance (in shares) at Mar. 31, 2021 | 137.6 | |||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | (22.4) | |||||||||||
Beginning balance at Mar. 31, 2021 | $ 3,332 | $ 1.4 | $ 2,288.8 | $ (820.6) | $ 1,871 | $ (8.6) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | 418 | 418 | ||||||||||
Change in cumulative foreign currency translation adjustment | (43.6) | (43.6) | ||||||||||
Net unrealized gain on available-for-sale securities, net of taxes | (5.1) | (5.1) | ||||||||||
Repurchased common stock (in shares) | (1.3) | |||||||||||
Repurchased common stock | (200) | $ (200) | ||||||||||
Stock-based compensation | 258.7 | 258.7 | ||||||||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 1.2 | |||||||||||
Net share settlement of restricted stock awards (in shares) | (0.4) | |||||||||||
Net share settlement of restricted stock awards | (64.1) | (64.1) | ||||||||||
Employee share purchase plan settlement (in shares) | 0.1 | |||||||||||
Employee share purchase plan settlement | 19.7 | 19.7 | ||||||||||
Issuance of shares (in shares) | 0.5 | |||||||||||
Issuance of shares related to acquisition | 94.1 | 94.1 | ||||||||||
Ending balance (in shares) at Mar. 31, 2022 | 139 | |||||||||||
Ending balance (in shares) at Mar. 31, 2022 | (23.7) | |||||||||||
Ending balance at Mar. 31, 2022 | 3,809.7 | $ 1.4 | 2,597.2 | $ (1,020.6) | 2,289 | (57.3) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (1,124.7) | (1,124.7) | ||||||||||
Change in cumulative foreign currency translation adjustment | (58.9) | (58.9) | ||||||||||
Net unrealized gain on available-for-sale securities, net of taxes | 2.9 | 2.9 | ||||||||||
Stock-based compensation | 389.3 | 389.3 | ||||||||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 2.7 | |||||||||||
Exercise of stock options (in shares) | 1 | |||||||||||
Exercise of stock options | 43.1 | 43.1 | ||||||||||
Net share settlement of restricted stock awards (in shares) | (0.9) | |||||||||||
Net share settlement of restricted stock awards | (108.1) | (108.1) | ||||||||||
Employee share purchase plan settlement (in shares) | 0.2 | |||||||||||
Employee share purchase plan settlement | 22.3 | 22.3 | ||||||||||
Issuance of shares (in shares) | 46.3 | 0.6 | ||||||||||
Issuance of shares related to acquisition | $ 5,377.7 | $ 57.8 | $ 0.5 | $ 5,377.2 | $ 57.8 | |||||||
Stock-based compensation assumed in Zynga acquisition | $ 151.7 | $ 151.7 | ||||||||||
Issuance of shares related to Zynga convertible notes (in shares) | 3.7 | |||||||||||
Issuance of shares related to Zynga convertible notes | $ 479.7 | 479.7 | ||||||||||
Ending balance (in shares) at Mar. 31, 2023 | 168.9 | 192.6 | ||||||||||
Ending balance (in shares) at Mar. 31, 2023 | (23.7) | (23.7) | ||||||||||
Ending balance at Mar. 31, 2023 | $ 9,042.5 | $ 1.9 | 9,010.2 | $ (1,020.6) | 1,164.3 | (113.3) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net (loss) income | (3,744.2) | (3,744.2) | ||||||||||
Change in cumulative foreign currency translation adjustment | 6.7 | 6.7 | ||||||||||
Net unrealized gain on available-for-sale securities, net of taxes | 1.5 | 1.5 | ||||||||||
Stock-based compensation | 416.1 | 416.1 | ||||||||||
Issuance of restricted stock, net of forfeitures and cancellations (in shares) | 2.1 | |||||||||||
Exercise of stock options | 1.5 | 1.5 | ||||||||||
Net share settlement of restricted stock awards (in shares) | (0.6) | |||||||||||
Net share settlement of restricted stock awards | (94.1) | (94.1) | ||||||||||
Employee share purchase plan settlement (in shares) | 0.4 | |||||||||||
Employee share purchase plan settlement | $ 37.9 | 37.9 | ||||||||||
Ending balance (in shares) at Mar. 31, 2024 | 170.8 | 194.5 | ||||||||||
Ending balance (in shares) at Mar. 31, 2024 | (23.7) | (23.7) | ||||||||||
Ending balance at Mar. 31, 2024 | $ 5,667.9 | $ 1.9 | $ 9,371.6 | $ (1,020.6) | $ (2,579.9) | $ (105.1) |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2024 | |
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, operate, and publish products principally through Rockstar Games, 2K, Private Division, and Zynga. Our products are designed for console gaming systems, PC, and mobile, including smartphones and tablets. We deliver our products through physical retail, digital download, online platforms, and cloud streaming services. Principles of Consolidation The Consolidated Financial Statements include the financial statements of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain immaterial amounts in the financial statements of the prior years have been reclassified to conform to the current year presentation for comparative purposes. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenue, and expense, as well as the disclosure of contingent assets and liabilities at the dates of the financial statements during the reporting periods. Our most significant estimates relate to revenue recognition (see Note 2 - Revenue from Contracts with Customers ); the recoverability and amortization of software development costs, licenses, and intangible assets; assets acquired and liabilities assumed in business combinations, including the valuation of contingent earn-out consideration; the realization of deferred income taxes; the valuation of stock-based compensation; and assumptions used in our goodwill impairment tests. These estimates generally involve complex issues and require us to make judgments, involve analysis of historical and the prediction of future trends, and are subject to change from period to period. Actual amounts could differ significantly from these estimates, which may affect economic conditions in a number of different ways and result in uncertainty and risk. We consider transactions or events that occur after the balance sheet date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. Segments We have one operating and reportable segment. Our operations involve similar products and customers worldwide. Revenue earned is primarily derived from the sale of software titles, which are internally developed and developed by third parties. Our Chief Executive Officer, who is our Chief Operating Decision Maker ("CODM"), manages our operations on a consolidated basis—supplemented by sales information by product category, major product title, and platform—for the purpose of evaluating performance and allocating resources. Financial information about our one segment and geographic areas is included in Note 2 - Revenue from Contracts with Customers and Note 8 - Fixed Assets, Net . Concentration of Credit Risk and Accounts Receivable We maintain cash balances at several major financial institutions. While we attempt to limit credit exposure with any single institution, balances often exceed insurable amounts. Accounts receivable are recorded at the original invoiced amount less an allowance for credit losses. In evaluating our ability to collect outstanding receivable balances and related allowance for credit losses, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness, as well as current and forecasted economic conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have been exhausted. We do not require collateral from our customers. If the financial condition and operations of our customers deteriorate, our risk of collection could increase substantially. A majority of our trade receivables are derived from sales to major retailers, including digital storefronts and platform partners, and distributors. Our five largest customers accounted for 79.8%, 79.6% and 79.0% of net revenue during the fiscal years ended March 31, 2024, 2023 and 2022, respectively. One customer accounted for 23.2%, 23.5% and 38.0% of net revenue during the fiscal years ended March 31, 2024, 2023, and 2022, respectively. A second customer accounted for 21.1%, 20.7%, and 22.0% of net revenue during the fiscal years ended March 31, 2024, 2023, and 2022, respectively. As of March 31, 2024 and 2023, five customers accounted for 69.9% and 61.1% of our gross accounts receivable, respectively. Customers that individually accounted for more than 10% of our gross accounts receivable balance comprised 57.7% and 50.3% of such balances at March 31, 2024 and 2023, respectively. We had three customers who accounted for 21.8%, 18.1%, and 16.9% of our gross accounts receivable as of March 31, 2024 and three customers who accounted for 21.6%, 14.5%, and 14.2% of our gross accounts receivable as of March 31, 2023. We did not have any additional customers that exceeded 10% of our gross accounts receivable as of March 31, 2024 and 2023. Based upon performing ongoing credit evaluations, maintaining trade credit insurance on a majority of our customers who sell our physical products, and our past collection experience, we believe that the receivable balances from these largest customers do not represent a significant credit risk. Cash and Cash Equivalents We consider all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Our restricted cash and cash equivalents balances are primarily related to dedicated accounts limited to the payment of certain internal royalty obligations. Balances that are restricted from use for more than one year are classified as non-current. Short-term Investments Short-term investments designated as available-for-sale securities are carried at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Investments with original maturities greater than 90 days and remaining maturities of less than one year are normally classified within Short-term investments on our Consolidated Balance Sheets. In addition, investments with maturities beyond one year at the time of purchase that are highly liquid in nature and represent the investment of cash that is available for current operations are classified as short-term investments. Unrealized gains and losses of available-for-sale securities are excluded from earnings and are reported as a component of Other comprehensive income (loss), net of tax, until the security is sold, the security has matured, or we determine that the fair value of the security has declined below its adjusted cost basis and the decline is not due to a credit loss. Realized gains and losses on short-term investments are calculated based on the specific identification method and would be reclassified from Accumulated other comprehensive loss to Interest and other, net. Short-term investments are evaluated for impairment quarterly. We consider various factors in determining whether we should recognize an impairment charge, including the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, the severity of the impairment, the reason for the decline in value, and our intent to sell and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. If we conclude that an investment is impaired or a portion of the unrealized loss is a result of a credit loss, we recognize the charge at that time in our Consolidated Statements of Operations. Determining whether the decline in fair value is due to a credit loss requires management judgment based on the specific facts and circumstances of each security. The ultimate value realized on these securities is subject to market price volatility until they are sold. Software Development Costs and Licenses Capitalized software development costs include direct costs incurred for internally developed titles and payments made to third-party software developers under development agreements. We capitalize internal software development costs (including specifically identifiable payroll expense, employee stock-based compensation, and incentive compensation costs related to the completion and release of titles, as well as third-party production and other content costs), subsequent to establishing technological feasibility of a software title. Technological feasibility of a product includes the completion of both technical design documentation and game design documentation. Significant management judgments are made in the assessment of when technological feasibility is established. For products where proven technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Prior to establishing technological feasibility of a product, we record any costs incurred by third-party developers as research and development expenses. We enter into agreements with third-party developers that require us to make payments for game development and production services. In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game title as well as, in some cases, the underlying intellectual property rights. Such agreements typically allow us to fully recover these payments to the developers at an agreed upon royalty rate earned on the subsequent sales of such software, net of any agreed upon costs. Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments to third-party developers as software development costs and licenses. We typically enter into agreements with third-party developers after completing the technical design documentation for our products and therefore record the design costs leading up to a signed development contract as research and development expense. When we contract with third-party developers, we generally select those that have proven technology and experience in the genre of the software being developed, which often allows for the establishment of technological feasibility early in the development cycle. In instances where the documentation of the design and technology are not in place prior to an executed contract, we monitor the software development process and require our third-party developers to adhere to the same technological feasibility standards that apply to our internally developed products. Licenses consist of payments and guarantees made to holders of intellectual property rights for use of their trademarks, copyrights or other intellectual property rights in the development of our products. Agreements with license holders generally provide for guaranteed minimum payments for use of their intellectual property. Certain licenses, especially those related to our sports products, extend over multi-year periods and encompass multiple game titles. In addition to guaranteed minimum payments, these licenses frequently contain provisions that could require us to pay royalties to the license holder based on pre-agreed unit sales thresholds. Amortization of capitalized software development costs and licenses commences when a product is available for general release and is recorded on a title-by-title basis in cost of revenue. For capitalized software development costs, annual amortization is calculated using (1) the proportion of current year revenue to the total revenue expected to be recorded over the life of the title or (2) the straight-line method over the remaining estimated life of the title, whichever is greater. For capitalized licenses, amortization is calculated as a ratio of (1) current year revenue to the total revenue expected to be recorded over the remaining estimated life of the title or (2) the contractual royalty rate based on actual net product sales as defined in the licensing agreement, whichever is greater. Amortization periods for our software products generally range from 12 to 30 months. Certain government grants earned on qualified production spend generally either reduce the cost basis of our capitalized software development costs, which therefore results in reduced expense over the amortization period, or reduce period development expense recognized for titles that do not meet the capitalization criteria. Such incentives are accounted for by analogizing under ASC 105-10-05-2 to the grant accounting model under IAS 20. We evaluate the future recoverability of capitalized software development costs and licenses on a quarterly basis. Recoverability is primarily assessed based on the title's actual performance. For products that are scheduled to be released in the future, recoverability is evaluated based on the expected performance of the specific products to which the cost or license relates. We use a number of criteria in evaluating expected product performance, including historical performance of comparable products developed with comparable technology, market performance of comparable titles, orders for the product prior to its release, general market conditions, and past performance of the franchise. When we determine that capitalized cost of the title is unlikely to be recovered by product sales, an impairment of software development and license costs capitalized is charged to cost of revenue in the period in which such determination is made. We have profit and unit sales based internal royalty programs that allow selected employees to participate in the success of software titles that they assist in developing. Royalties earned under these programs are recorded as a component of Cost of revenue in the period earned. Amounts earned and not yet paid are reflected within the software development royalties component of Accrued expenses and other current liabilities on our Consolidated Balance Sheets. Fixed Assets, net Office equipment, furniture and fixtures are depreciated using the straight-line method over their estimated useful life of five years. Computer equipment and software are generally depreciated using the straight-line method over three Leases We determine if an arrangement is a lease at contract inception. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred. The operating lease right-of-use (“ROU”) asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future lease payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset and is based on an unsecured borrowing rate and risk-adjusted to approximate a collateralized rate at the commencement date of the lease. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease modifications result in remeasurement of the lease liability. Leases with an initial term of twelve months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We do not separate non-lease components from the related lease components. Goodwill Goodwill is the excess of purchase price paid over identified intangible and tangible net assets of acquired companies. Intangible assets consist of intellectual property, developed game technology, analytics technology, user base, trade names, and in-process research and development. Certain intangible assets acquired in a business combination are recognized as assets apart from goodwill. We use either the income, cost, or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach, or combination of approaches, ultimately selected is based on the characteristics of the asset and the availability of information. We test our goodwill for impairment annually, or more frequently if events and circumstances indicate the fair value of a reporting unit may be below its carrying amount. A reporting unit is defined as an operating segment or one level below an operating segment. We have determined that we operate in two reporting units, which are components of our operating segment. In the evaluation of goodwill for impairment, we have the option to first perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50%) less than the carrying value before performing a quantitative impairment test. When a qualitative assessment is not used, or if the qualitative assessment is not conclusive, a quantitative impairment analysis for goodwill is performed at the reporting unit level. The quantitative goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value exceeds the fair value, an impairment charge is recognized equal to the difference between the carrying value of the reporting unit and its fair value, considering the related income tax effect of any goodwill deductible for tax purposes. In performing the quantitative assessment, we measure the fair value of the reporting unit using a combination of the income and market approaches. The assessment requires us to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include long-term growth rates and EBITDA margins used to calculate projected future cash flows, risk-adjusted discount rates based on our weighted average cost of capital, future economic and market conditions and the determination of appropriate, comparable market data. Our estimates for market growth are based on historical data, various internal estimates, and observable external sources when available. Those estimates are based on assumptions that are consistent with the plans and estimates we use to manage the underlying business. During the fiscal year ended March 31, 2024, we recognized goodwill impairment charges of $2,342.1, representing a partial impairment related to one of our reporting units. The impairment was primarily due to a reduction in the forecasted performance of the reporting unit due to industry conditions and changes in our strategies for games within the reporting unit in response to those conditions. There were no goodwill impairments recorded during the fiscal years ended March 31, 2023 or 2022. As of March 31, 2024, the goodwill balance of that reporting unit is $4,131.1. Unanticipated changes in business performance or the regulatory environment, market declines, and other events impacting the fair value of the reporting units with assigned goodwill, or increases in the level of equity required to support these businesses, could cause additional goodwill impairment charges in future periods. Refer to Note 9 - Goodwill and Intangible Assets, Net . Long-lived Assets We review all long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the related carrying amount of an asset or asset group may not be recoverable. We compare the carrying amount of the asset to the estimated undiscounted future cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, we record an impairment charge for the difference between the carrying amount of the asset and its fair value. The estimated fair value is generally measured by discounting expected future cash flows using an appropriate discount rate. Refer to Note 9 - Goodwill and Intangible Assets, Net for impairments that occurred in the fiscal year ended March 31, 2024. As of March 31, 2024, no indicators of impairment existed. Derivatives and Hedging We transact business in various foreign currencies and have significant sales and purchase transactions denominated in foreign currencies, subjecting us to foreign currency exchange rate risk. From time to time, we carry out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge our exposure in currency exchange rate movements. We recognize derivative instruments as either assets or liabilities on our Consolidated Balance Sheets and we measure those instruments at fair value. The changes in fair value of derivatives that are not designated as hedges are recognized currently in earnings as Interest and other, net in our Consolidated Statements of Operations. If a derivative meets the definition of a cash flow hedge and is so designated, the effective portion of changes in the fair value of the derivative are recognized, as a component of Other comprehensive income (loss) while the ineffective portion of the changes in fair value is recorded currently in earnings as Interest and other, net in our Consolidated Statements of Operations. Amounts included in Accumulated other comprehensive loss for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in Cost of revenue, Research and development expenses, or Interest and other, net, as appropriate. Income Taxes We record a tax provision for the anticipated tax consequences of the reported results of operations. Our provision for income taxes is computed using the asset and liability method, under which deferred income taxes are recognized for differences between the financial statement and tax bases of assets and liabilities at currently enacted statutory tax rates for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment. Valuation allowances are established when we determine that it is more likely than not that such deferred tax assets will not be realized. We do not record income tax expense related to foreign withholding taxes or United States income taxes that may become payable upon the repatriation of undistributed earnings of foreign subsidiaries, to the extent such earnings are expected to be reinvested indefinitely outside of the United States. We use estimates and assumptions to compute the provision for income taxes including allocations of certain transactions to different tax jurisdictions, amounts of permanent and temporary differences, the likelihood of deferred tax assets being recovered and the outcome of contingent tax risks. These estimates and assumptions are revised as new events occur, more experience is acquired and additional information is obtained. The effect of these revisions is recorded in income tax expense or benefit in the period in which they become known. Revenue Recognition We derive revenue primarily from the sale of our interactive entertainment content, principally for console gaming systems, personal computers, and mobile. We also generate revenue from advertising within our software products. Game . Our interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. We may also sell separate downloadable add-on content to supplement our full game software products. Certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. We determine revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sales of software products and game related services when control of the promised products and services is transferred to our customers and our performance obligations under the contract have been satisfied. Revenue is recorded net of transaction taxes assessed by governmental authorities such as sales, value-added and other similar taxes. Our software products are sold as full games, which typically provide access to the main game content, primarily for console and PC. Generally, our full game software products deliver a license of our intellectual property that provides a functional offline gaming experience (i.e., one that does not require an Internet connection to access the main game content or other significant game related services). We recognize revenue related to the license of our intellectual property that provides offline functionality at the time control of the products has been transferred to our customers (i.e. upon delivery of the software product). In addition, some of our full game software products that provide a functional offline gaming experience may also include significant game related services delivered over time, such as online functionality that is dependent upon online support services and/or additional free content updates. For full game sales that offer offline functionality and significant game related services we evaluate whether the license of our intellectual property and the game related services are distinct and separable. This evaluation is performed for each software product sold. If we determine that our software products contain a license of intellectual property separate from the game related services (i.e. multiple performance obligations), we estimate a standalone selling price for each identified performance obligation. We allocate the transaction price to each performance obligation using a relative standalone selling price method (the transaction price is allocated to a performance obligation based on the proportion of the standalone selling price of each performance obligation to the sum of the standalone selling prices for all performance obligations in the contract). For the portion of the transaction price allocable to the license, revenue is recognized when the customer takes control of the product. For the portion of the transaction price allocated to game related services, revenue is recognized ratably over an estimated service period for the related software product. We also defer related product costs and recognize the costs as the revenues are recognized. Certain of our full game software products are delivered primarily as an online gaming experience with substantially all gameplay requiring online access to our game related services. We recognize revenue for full game software products that are dependent on our game related services over an estimated service period. For our full game online software products, we also defer related product costs and recognize the costs as the revenue is recognized. In addition to sales of our full game software products, certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. Revenue from the sale of virtual currency and in-game purchases is deferred and recognized ratably over an estimated service period. We also sell separate downloadable add-on content to supplement our full game software products. Revenue from the sale of separate downloadable add-on content is evaluated for revenue recognition on the same basis as our full game software products. In addition to sales of our full game software products, we also offer free-to-play software products, both of which may provide customers with the option to acquire virtual currency or make in-game purchases. For virtual currency and in-game purchases the satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as follows: • Consumable: Consumable virtual items represent items that can be consumed by a specific player action. Consumable virtual items do not result in a direct benefit that the player keeps or provide the player any continuing benefit following consumption, and they often enable a player to perform an in-game action immediately. For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates less than one month. • Durable: Durable virtual items represent items that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual items ratably over the estimated service period for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item. Certain software products are sold to customers with a “street date” (the earliest date these products may be sold by these retailers). For the transaction price related to the license for these products that also provide a functional offline gaming experience, we recognize revenue on the later of the street date or the sale date as this is generally when we have transferred control of this performance obligation. For the sale of physical software products, recognition of revenue allocated to game related services does not begin until the product is sold-through by our customer to the end user. We currently estimate sell- through to the end user for all our titles to be approximately two months after we have sold-in the software products to retailers. Determining the estimated sell-through period requires management judgment and estimates. Our software products are sold as digital downloads. Revenue from digital downloads generally commences when the download is made available to the end user by a third-party digital storefront. In certain countries, we use third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to future updates. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee when we transfer control of the upfront license of intellectual property (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Royalty payme |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue Timing of recognition Net revenue recognized at a point in time 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). Net revenue recognized over time is primarily comprised of revenue from our software products that include game related services, separate virtual currency transactions, and in-game purchases, which are recognized over an estimated service period. Net revenue recognized over time also includes in-game advertising, which is recognized over a contractual term. Net revenue by timing of recognition was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Over time $ 4,312.2 $ 4,208.0 $ 2,214.8 Point in time 1,037.4 1,141.9 1,290.0 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Content Recurrent consumer spending ("RCS") is generated from ongoing consumer engagement and includes revenue from virtual currency, add-on content, in-game purchases, and in-game advertising. 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. Net revenue by content was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Recurrent consumer spending $ 4,213.5 $ 4,180.4 $ 2,271.2 Full game and other 1,136.1 1,169.5 1,233.6 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Geography We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: United States $ 3,279.2 $ 3,360.0 $ 2,100.2 International 2,070.4 1,989.9 1,404.6 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Platform Net revenue by platform was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Mobile $ 2,748.0 $ 2,538.6 $ 403.4 Console 2,167.3 2,303.8 2,528.9 PC and other 434.3 507.5 572.5 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 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: Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Digital online $ 5,112.2 $ 5,085.7 $ 3,149.0 Physical retail and other 237.4 264.2 355.8 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Deferred Revenue We record deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations. The balance of deferred revenue, including current and non-current balances as of March 31, 2024 and March 31, 2023 were $1,102.4 and $1,114.3, respectively. For the fiscal year ended March 31, 2024, 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 fiscal year ended March 31, 2024, $1,065.1 of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. As of March 31, 2024, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $1,238.7, which includes our deferred revenue balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1,152.0 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 March 31, 2024 and March 31, 2023, our contract asset balances were $85.0 and $79.9, respectively. |
MANAGEMENT AGREEMENT
MANAGEMENT AGREEMENT | 12 Months Ended |
Mar. 31, 2024 | |
MANAGEMENT AGREEMENT | |
MANAGEMENT AGREEMENT | MANAGEMENT AGREEMENT In November 2017, we entered into a management agreement (the "2017 Management Agreement") with ZelnickMedia Corporation ("ZelnickMedia"), which replaced our previous agreement with ZelnickMedia and pursuant to which ZelnickMedia provided financial and management consulting services to the Company 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, continued to serve as Executive Chairman and Chief Executive Officer of the Company, and Karl Slatoff, a partner of ZelnickMedia, continued to serve as President of the Company. The 2017 Management Agreement provided for an annual management fee of $3.1 over the term of the agreement and a maximum annual bonus opportunity of $7.4 over the term of the agreement, based on the Company achieving certain performance thresholds. In May 2022, we entered into a new management agreement (the "2022 Management Agreement") with ZelnickMedia that replaced the 2017 Management Agreement and pursuant to which ZelnickMedia will continue to provide financial and management consulting services to the Company through March 31, 2029. The 2022 Management Agreement became effective May 23, 2022, when our acquisition of Zynga closed (refer to Note 20 - Acquisitions ). On May 21, 2022, ZelnickMedia assigned substantially all of its rights and obligations and other liabilities under the 2022 Management Agreement to ZMC Advisors, L.P. ("ZMC Advisors"). References to "ZMC" herein shall mean either ZelnickMedia or ZMC Advisors, as appropriate. As part of the 2022 Management Agreement, Strauss Zelnick continues to serve as Executive Chairman and Chief Executive Officer of the Company, and Karl Slatoff continues to serve as President of the Company. The 2022 Management Agreement provides for an annual management fee of $3.3 over the term of the agreement and a maximum annual bonus opportunity of $13.2 over the term of the agreement, based on the Company achieving certain performance thresholds. In connection with the 2022 Management Agreement, we have and expect to grant time-based and performance-based restricted units to ZMC. In consideration for ZMC's services, we recorded consulting expense (a component of General and administrative expenses) of $6.5, $3.5, and $9.9 for the fiscal years ended March 31, 2024, 2023, and 2022, respectively. Pursuant to the 2022 Management Agreement and 2017 Management Agreement, we also issued stock-based awards to ZMC. During the fiscal years ended March 31, 2024, 2023, and 2022, we recorded $52.8, $47.1, and $29.2, respectively, of stock-based compensation expense for non-employee awards, which is included in General and administrative expenses. See Note 16 - Stock-Based Compensation for a discussion of such awards. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring 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. March 31, 2024 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Assets: Cash and cash equivalents: Money market funds $ 177.5 $ — $ — $ 177.5 Bank-time deposits 64.8 — — 64.8 Short-term investments: Bank-time deposits 22.0 — — 22.0 Restricted cash and cash equivalents: Money market funds 238.3 — — 238.3 Bank-time deposits 0.5 — — 0.5 Restricted cash and cash equivalents, long term: Money market funds 95.9 — — 95.9 Other assets: Private equity — — 26.8 26.8 Total financial assets $ 599.0 $ — $ 26.8 $ 625.8 Liabilities: Accrued expenses and other current liabilities: Contingent earn-out consideration $ — $ — $ 12.4 $ 12.4 Other-long term liabilities: Contingent earn-out consideration — — 0.7 0.7 Short-term debt, net: Convertible notes — 24.6 — 24.6 Long-term debt, net: Convertible notes — 25.9 — 25.9 Total financial liabilities $ — $ 50.5 $ 13.1 $ 63.6 March 31, 2023 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Assets Cash and cash equivalents: Bank-time deposits $ 368.0 $ — $ — $ 368.0 Money market funds 145.8 — — 145.8 Short-term investments: Corporate bonds — 145.2 — 145.2 Bank-time deposits 41.8 — — 41.8 Restricted cash and cash equivalents: Money market funds 306.1 — — 306.1 Bank-time deposits 0.5 — — 0.5 Restricted cash and cash equivalents, long term: Money market funds 99.6 — — 99.6 Other assets: Private equity — — 26.5 26.5 Total financial assets $ 961.8 $ 145.2 $ 26.5 $ 1,133.5 Liabilities Accrued expenses and other current liabilities: Foreign currency forward contracts $ — $ 2.5 $ — $ 2.5 Contingent earn-out consideration — — 66.6 66.6 Other long-term liabilities: Contingent earn-out consideration — — 27.3 27.3 Long-term debt, net: Convertible notes — 44.1 — 44.1 Total financial liabilities $ — $ 46.6 $ 93.9 $ 140.5 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 fiscal year ended March 31, 2024. In connection with the Nordeus acquisition we completed on June 1, 2021, our consideration included a contingent earn-out consideration arrangement that requires us to pay an aggregate of $153.0 in cash if Nordeus achieves certain performance measures over the 12- and 24-month periods following the closing. We recorded $61.1 as the initial fair value of contingent earn-out consideration. The fair value was estimated using a Monte-Carlo simulation model, which included significant unobservable Level 3 inputs, such as projected financial performance over the earn-out period along with estimates for market volatility and the discount rate applicable to potential cash payouts. During the fiscal years ended March 31, 2024, March 31, 2023, and March 31, 2022, we recognized General and administrative expense of $4.5, $26.5, and $48.0, respectively, within our Consolidated Statements of Operations for the increase in fair value of the contingent earn-out consideration liability associated with the Nordeus acquisition, which increased the fair value of the contingent consideration liability related to the second earn-out period to $69.5. During the fiscal year ended March 31, 2024, we paid $69.5 related to the second earn-out period. During the fiscal year ended March 31, 2023, we paid $70.1 related to the first earn-out period. In connection with our acquisition of Popcore on November 16, 2022, consideration included a contingent earn-out consideration arrangement that requires us to pay an aggregate of $105.0 in cash if Popcore achieves certain performance measures over each of the three unobservable Level 3 inputs, such as projected financial performance over the earn-out period along with estimates for market volatility and the discount rate applicable to potential cash payouts. During the fiscal years ended March 31, 2024 and March 31, 2023 we recognized General and administrative expense of $(12.9) and $26.5, respectively, within our Consolidated Statements of Operations for the change in fair value of the contingent earn-out consideration liability associated with the Popcore acquisition. The fair value of the contingent consideration liability related to the earn-out period is $12.7, with $12.0 and $0.7 being recorded within Accrued expenses and other current liabilities and Other long-term liabilities, respectively, in our Consolidated Balance Sheet as of March 31, 2024. The change resulted from a lower probability of Popcore achieving certain performance measures in the remaining two 12-month periods. The remaining contingent earn-out consideration liability of $0.4 recorded within Accrued expenses and other current liabilities in our Consolidated Balance Sheet as of March 31, 2024, relates to immaterial earn-out arrangements from Zynga's historical acquisitions. For these acquisitions, we estimated the acquisition date fair value of the contingent consideration obligations using a discounted cash flow model. Nonrecurring fair value measurements We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the privately-held affiliates, and we do not maintain significant influence over or control of the entities. We have elected the practical expedient in Topic 321, Investments-Equity Securities , to measure these investments at cost less any impairment, adjusted for observable price changes, if any. Based on these considerations, we estimate that the carrying value of the acquired shares represents the fair value of the investment. At March 31, 2024 and March 31, 2023, we held $8.0 and $8.0, respectively, of such investments in Other assets within our Consolidated Balance Sheet. See Note 9 - Goodwill and Intangible Assets, Net for goodwill and intangible related fair value measurements. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SHORT-TERM INVESTMENTS | SHORT-TERM INVESTMENTS Our short-term investments consisted of the following as of March 31, 2024: March 31, 2024 Cost or Gross Unrealized Gains Losses Fair Value Short-term investments Bank time deposits $ 22.0 $ — $ — $ 22.0 Total Short-term investments $ 22.0 $ — $ — $ 22.0 March 31, 2023 Cost or Gross Unrealized Gains Losses Fair Value Short-term investments Bank time deposits $ 41.8 $ — $ — $ 41.8 Available-for-sale securities: Corporate bonds 147.2 — (2.0) 145.2 Total Short-term investments $ 189.0 $ — $ (2.0) $ 187.0 The following table summarizes the contracted maturities of our short-term investments at March 31, 2024: March 31, 2024 Amortized Cost Fair Value Short-term investments Due in 1 year or less $ 22.0 $ 22.0 Total Short-term investments $ 22.0 $ 22.0 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Mar. 31, 2024 | |
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 associated with changes in foreign currency exchange rates on earnings, cash flows, and certain balance sheet amounts. 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: March 31, 2024 2023 Forward contracts to sell foreign currencies $ 243.0 $ 224.3 Forward contracts to purchase foreign currencies 72.2 51.2 |
SOFTWARE DEVELOPMENT COSTS AND
SOFTWARE DEVELOPMENT COSTS AND LICENSES | 12 Months Ended |
Mar. 31, 2024 | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | SOFTWARE DEVELOPMENT COSTS AND LICENSES Details of our capitalized software development costs and licenses are as follows: March 31, 2024 2023 Current Non-current Current Non-current Software development costs, internally developed $ 53.4 $ 1,237.0 $ 47.4 $ 882.0 Software development costs, externally developed 6.1 198.5 2.2 169.7 Licenses 28.8 11.0 16.3 20.5 Software development costs and licenses $ 88.3 $ 1,446.5 $ 65.9 $ 1,072.2 Software development costs and licenses, net of current portion as of March 31, 2024 and 2023 included $1,433.8 and $1,010.2, respectively, related to titles that have not been released. Amortization and impairment of software development costs and licenses are as follows: Fiscal Year Ended March 31, 2024 2023 2022 Amortization of software development costs and licenses $ 207.2 $ 179.7 $ 131.1 Impairment of software development costs and licenses 109.9 79.1 70.6 Portion representing stock-based compensation (24.4) 9.5 (48.4) Amortization and impairment, net of stock-based compensation $ 292.7 $ 268.3 $ 153.3 During the fiscal year ended March 31, 2024, $88.2 of the impairment charges relate to our cost reduction program (refer to Note 21 - Business Reorganization ), the remaining $21.7 related to (i) a decision not to proceed with further development of certain interactive entertainment software products, and (ii) recognizing unamortized capitalized costs for the development of a title that exceed the anticipated net realizable value of the asset at the time they were impaired. |
FIXED ASSETS, NET
FIXED ASSETS, NET | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS, NET | FIXED ASSETS, NET Fixed asset balances by category are as follows: March 31, 2024 2023 Computer equipment $ 298.2 $ 266.9 Leasehold improvements 270.6 235.1 Computer software 89.0 102.0 Buildings 63.7 62.1 Furniture and fixtures 35.5 35.2 Office equipment 20.6 16.4 Total $ 777.6 $ 717.7 Less: accumulated depreciation (366.5) (314.9) Fixed assets, net $ 411.1 $ 402.8 Depreciation expense related to fixed assets for the fiscal years ended March 31, 2024, 2023, and 2022 was $135.5, $88.8, and $59.1, respectively. The following represents our fixed assets, net by location: March 31, 2024 2023 United States $ 242.6 $ 234.1 International 168.5 168.7 Fixed assets, net $ 411.1 $ 402.8 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The change in our goodwill balance is as follows: Total Balance at March 31, 2022 $ 674.6 Acquisition of Zynga ( see Note 20 ) 5,994.4 Acquisition of Popcore ( see Note 20 ) 72.1 Additions from immaterial acquisitions 26.5 Currency translation adjustment (0.5) Balance at March 31, 2023 $ 6,767.1 Impairment (2,342.1) Additions from immaterial acquisitions 9.7 Currency translation adjustment (8.3) Balance at March 31, 2024 $ 4,426.4 During the fiscal year ended March 31, 2024, we recognized goodwill impairment charges of $2,342.1, representing a partial impairment related to one of our reporting units. We identified various qualitative factors that, collectively, indicated that the fair value of one of our reporting units was more likely than not less than its carrying amount, including a reduction in the forecasted performance of the reporting unit due to industry conditions and changes in our strategies for games within the reporting unit in response to those conditions. As a result of this qualitative analysis, we performed a valuation of the reporting unit using discounted cash flow and guideline public company methodologies. Key assumptions and estimates used in deriving the fair value are forecasted revenue, EBITDA margins, long-term growth rate, and discount rate. There were no goodwill impairment charges for the fiscal years ended March 31, 2023 and March 31, 2022. Intangibles The following table sets forth the intangible assets that are subject to amortization: March 31, 2024 2023 Gross Accumulated Net Book Gross Accumulated Net Book Weighted average useful life Developed Game Technology $ 3,788.8 $ (1,301.4) $ 2,487.4 $ 4,434.5 $ (744.0) $ 3,690.5 7 years Branding and Trade Names 395.1 (68.5) 326.6 395.2 (33.1) 362.1 12 years Game Engine Technology 322.5 (147.3) 175.2 323.2 (73.5) 249.7 4 years User Base 319.2 (319.2) — 319.2 (274.4) 44.8 0 years Developer Relationships 57.0 (26.5) 30.5 57.0 (12.2) 44.8 5 years Advertising Technology 43.0 (26.6) 16.4 43.0 (12.3) 30.7 3 years Customer Relationships 31.0 (11.5) 19.5 31.0 (5.3) 25.7 5 years Intellectual Property 27.5 (23.1) 4.4 22.3 (18.2) 4.1 6 years In Place Lease 2.0 (1.4) 0.6 1.9 (1.1) 0.8 4 years Analytics Technology 30.1 (30.1) — 30.1 (30.1) — 0 years Total intangible assets $ 5,016.2 $ (1,955.6) $ 3,060.6 $ 5,657.4 $ (1,204.2) $ 4,453.2 Amortization of intangible assets, including impairments, is included in our Consolidated Statements of Operations as follows: Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 1,303.5 $ 1,171.5 $ 52.0 Selling and marketing 51.0 277.1 5.3 Research and development 28.7 24.6 5.5 Depreciation and amortization 35.7 33.5 2.0 Total amortization of intangible assets $ 1,418.9 $ 1,506.7 $ 64.8 During the fiscal year ended March 31, 2024, we recorded impairment charges of $577.4 for acquisition-related Developed Game Technology intangible assets within Cost of revenue Estimated future amortization of intangible assets that will be recorded in Cost of revenue and operating expenses for the years ending March 31, are as follows: Fiscal Year Ended March 31, Amortization 2025 $ 706.4 2026 681.6 2027 620.1 2028 579.5 2029 234.7 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Mar. 31, 2024 | |
Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of: March 31, 2024 2023 Software development royalties $ 413.1 $ 510.7 Compensation and benefits 227.3 177.5 Marketing and promotions 94.5 132.7 Licenses 64.4 63.0 Refund liability 34.5 52.4 Tax payable 32.4 33.0 Interest payable 29.4 29.6 Sales tax liability 19.3 14.0 Deferred acquisition payments 17.6 82.7 Professional fees 16.7 9.5 Other 113.4 120.7 Accrued expenses and other current liabilities $ 1,062.6 $ 1,225.7 |
DEBT
DEBT | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The components of Long-term debt, net on our Consolidated Balance Sheet were as follows: Annual Interest Rate Maturity Date March 31, 2024 Fair Value (Level 2) 2025 Notes 3.55% April 14, 2025 $ 600.0 $ 588.9 2026 Notes 5.00% March 28, 2026 550.0 547.6 2027 Notes 3.70% April 14, 2027 600.0 576.5 2028 Notes 4.95% March 28, 2028 800.0 797.8 2032 Notes 4.00% April 14, 2032 500.0 462.9 2026 Convertible Notes 0.00% December 15, 2026 25.9 25.9 Total $ 3,075.9 $ 2,999.6 Unamortized discount and issuance costs (17.6) Long-term debt, net $ 3,058.3 Annual Interest Rate Maturity Date March 31, 2023 Fair Value (Level 2) 2025 Notes 3.55% April 14, 2025 $ 600.0 $ 583.8 2027 Notes 3.70% April 14, 2027 600.0 580.9 2032 Notes 4.00% April 14, 2032 500.0 460.6 2024 Convertible Notes 0.25% June 1, 2024 20.8 20.8 2026 Convertible Notes 0.00% December 15, 2026 23.3 23.3 Total $ 1,744.1 $ 1,669.4 Unamortized discount and issuance costs (11.1) Long-term debt, net $ 1,733.0 The components of Short-term debt, net on our Consolidated Balance Sheet were as follows: Annual Interest Rate Maturity Date March 31, 2024 Fair Value (Level 2) 2024 Convertible Notes 0.25% June 1, 2024 $ 24.6 $ 24.6 Total $ 24.6 $ 24.6 Unamortized discount and issuance costs — Short-term debt, net $ 24.6 Annual Interest Rate Maturity Date March 31, 2023 Fair Value (Level 2) 2024 Notes 3.30% March 28, 2024 $ 1,000.0 $ 978.2 Term Loan 3.60% June 21, 2023 350.0 350.0 Total $ 1,350.0 $ 1,328.2 Unamortized discount and issuance costs (3.2) Short-term debt, net $ 1,346.8 The interest expense as it relates to our debt is recorded within Interest and other, net in our Consolidated Statements of Operations for the fiscal year ended March 31, 2024, and 2023, respectively, and was as follows: Fiscal Year Ended March 31, Fiscal Year Ended 2024 2023 2024 Notes $ 15.1 $ 31.5 2025 Notes 21.3 20.5 2026 Notes 24.7 — 2027 Notes 22.2 21.4 2028 Notes 27.2 — 2032 Notes 20.0 19.2 Term Loan 1.5 11.9 2022 Credit Agreement — 4.1 Total $ 132.0 $ 108.6 The following table outlines the aggregate amount of maturities of our borrowings, as of March 31, 2024: Fiscal Year Ended March 31, Maturities 2025 21.4 2026 1,150.0 2027 29.4 2028 1,400.0 2029 — Thereafter 500.0 Total 3,100.8 Fair Value Adjustments (0.3) Total Face Value $ 3,100.5 Senior Notes On April 14, 2023, we completed our offering and sale of $1,000.0 aggregate principal amount of our senior notes, consisting of $500.0 principal amount of our 5.000% Senior Notes due 2026 (the "2026 Notes") and $500.0 principal amount of our 4.950% Senior Notes due 2028 ("the 2028 Notes"). On January 8, 2024, we completed our add-on offering and sale of $350.0 aggregate principal amount of our senior notes, consisting of $50.0 principal amount of additional 2026 Notes and $300.0 principal amount of additional 2028 Notes. The additional 2026 Notes and 2028 Notes (the “New Notes”) were issued as additional notes under the existing Indenture. On April 14, 2022, we completed our offering and sale of $2,700.0 aggregate principal amount of our senior notes, consisting of $1,000.0 principal amount of our 3.300% Senior Notes due 2024 (the “2024 Notes”), $600.0 principal amount of our 3.550% Senior Notes due 2025 (the “2025 Notes”), $600.0 principal amount of our 3.700% Senior Notes due 2027 (the “2027 Notes”), and $500.0 principal amount of our 4.000% Senior Notes due 2032 (the “2032 Notes” and together with the 2024 Notes, 2025 Notes, 2026 Notes, 2027 Notes, and 2028 Notes, the "Senior Notes"). The Senior Notes were issued under an indenture, dated as of April 14, 2022 (the “Base Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”) and (i) a first supplemental indenture, with respect to the 2024 Notes, (ii) a second supplemental indenture, with respect to the 2025 Notes, (iii) a third supplemental indenture, with respect to the 2027 Notes, (iv) a fourth supplemental indenture, with respect to the 2032 Notes, (v) a fifth supplemental indenture, with respect to the 2026 Notes, and (vi) a sixth supplemental indenture, with respect to the 2028 Notes (collectively, the “Supplemental Indentures” and together with the Base Indenture, the “Indenture”), between the Company and the Trustee. The Senior Notes are the Company’s senior unsecured obligations and rank equally with all of our other existing and future unsubordinated obligations. We will pay interest on the 2024 Notes, 2026 Notes, and 2028 Notes semi-annually on March 28 and September 28 of each year, commencing September 28, 2022 for the 2024 Notes and September 28, 2023 for the 2026 Notes and 2028 Notes. We will pay interest on each of the 2025 Notes, 2027 Notes, and 2032 Notes semi-annually on April 14 and October 14 of each year, commencing October 14, 2022. During the fiscal year ended March 31, 2024, we made interest payments of $135.2. The proceeds from the issuances of the Senior Notes were used to finance a portion of our acquisition of Zynga and repay certain of our debt. The Senior Notes are not entitled to any sinking fund payments. We may redeem each series of the Senior Notes at any time in whole or from time to time in part at the applicable redemption prices set forth in each Supplemental Indenture. Upon the occurrence of a Change of Control Repurchase Event (as defined in each of the Supplemental Indentures) with respect to a series of the Senior Notes, each holder of the Senior Notes of such series will have the right to require the Company to purchase that holder’s Notes of such series at a price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of repurchase, unless the Company has exercised its option to redeem all the Senior Notes. In the case of an event of default arising from certain events of bankruptcy or insolvency with respect to the Company, all outstanding Senior Notes will become due and payable immediately. If any other event of default specified in the Indenture occurs and is continuing with respect to any series of the Senior Notes, the Trustee or the holders of at least 25% in aggregate principal amount of that series of the outstanding Notes may declare the principal of such series of Senior Notes immediately due and payable. The Indenture contains certain limitations on the ability of the Company and its subsidiaries to grant liens without equally securing the Senior Notes, or to enter into certain sale and lease-back transactions. These covenants are subject to a number of important exceptions and limitations, as further provided in the Indenture. Debt issuance costs of $29.4 and original issuance discount of $2.4 were incurred in connection with the Senior Notes. These debt issuance costs and original issuance discount are included as a reduction of the debt within Long-term debt, net on our Consolidated Balance Sheet and will be amortized into Interest and other, net in our Consolidated Statements of Operations over the contractual term of the Senior Notes. During the fiscal year ended March 31, 2024 and 2023, we recognized $6.2 and $5.5, respectively, of amortization of debt issuance costs and $0.4 and $0.4, respectively, of amortization of the original issuance discount. On June 5, 2023, pursuant to a tender offer, we purchased and retired $650.0 in aggregate principal amount of our 2024 Notes, with proceeds received from the 2026 Notes and 2028 Notes. We repaid the remaining principal amount of $350.0 on its maturity date on March 28, 2024, with proceeds received from the New Notes. During the fiscal year ended March 31, 2024, we recognized a debt extinguishment gain of approximately $7.7, net of unamortized debt discount and debt issuance costs recorded within Interest and other, net in our Consolidated Statement of Operations. Credit Agreement On May 23, 2022, we entered into an unsecured Credit Agreement (as amended, the "2022 Credit Agreement"), which replaced in its entirety the Company's prior Credit Agreement, dated as of February 8, 2019, which was paid off in full and terminated. The 2022 Credit Agreement provides for an unsecured five-year revolving credit facility with commitments of $500.0, including sublimits for (i) the issuance of letters of credit in an aggregate face amount of up to $100.0 and (ii) borrowings and letters of credit denominated in Pounds Sterling, Euros, and Canadian Dollars in an aggregate principal amount of up to $100.0. In addition, the 2022 Credit Agreement contains uncommitted incremental capacity permitting the incurrence of up to an additional amount not to exceed the greater of $250.0 and 35.0% of the Company's Consolidated Adjusted EBITDA (as defined in the 2022 Credit Agreement). On May 16, 2024, we increased the total commitments under the facility to $750.0 pursuant to the 2022 Credit Agreement's incremental provisions, leaving no further uncommitted incremental capacity. Loans under the 2022 Credit Agreement will bear interest at a rate of (a) 0.000% to 0.625% above an alternate base rate (8.50% at March 31, 2024) or (b) 1.000% to 1.625% above Secured Overnight Financing Rate ("SOFR"), approximately 5.33% at March 31, 2024, which rates are determined by the Company's credit rating. The 2022 Credit Agreement also includes, among other terms and conditions, a maximum leverage ratio covenant, as well as customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur subsidiary indebtedness, grant liens, and dispose of all or substantially all assets, in each case subject to certain exceptions and baskets. In addition, the 2022 Credit Agreement provides for events of default customary for a credit facility of this size and type, including, among others, non-payment of principal and interest when due thereunder, breaches of representations and warranties, noncompliance with covenants, acts of insolvency, cross-defaults to material indebtedness, and material judgment defaults (subject to certain limitations and cure periods). Upon execution of the 2022 Credit Agreement, we incurred $3.5 of debt issuance costs that were capitalized within Other assets on our Consolidated Balance Sheet and will be amortized on a straight-line basis over the five-year term of the 2022 Credit Agreement, with the expense recorded within Interest and other, net in our Consolidated Statements of Operations. During the fiscal year ended March 31, 2024, and 2023, we amortized $0.7 and $0.6, respectively, of these debt issuance costs. As of March 31, 2024, there were no borrowings under the 2022 Credit Agreement, and we had approximately $497.7 available for additional borrowings. Information related to availability on our respective credit agreements for each period was as follows: March 31, 2024 March 31, 2023 Available borrowings $ 497.7 $ 499.5 Outstanding letters of credit 2.3 2.8 Term Loan On June 22, 2022, we entered into an unsecured 364-Day Term Loan Credit Agreement ("Term Loan"). The Term Loan provided for an unsecured 364-day term loan credit facility in the aggregate principal amount of $350.0, maturing on June 21, 2023. We fully drew down on the Term Loan on June 22, 2022 at approximately 3.60%. The proceeds were used to finance a portion of the repurchase of the Convertible Notes (see below). A portion of the proceeds from the April 14, 2023 issuance of the 2026 Notes and 2028 Notes were used to fully repay the Term Loan on April 27, 2023. During the fiscal year ended March 31, 2024, we made interest payments of $1.8. Convertible Notes In conjunction with the acquisition of Zynga on May 23, 2022 (refer to Note 20 - Acquisitions ), we entered into (a) the First Supplemental Indenture (the “2024 Supplemental Indenture”) to the Indenture, dated as of June 14, 2019 (the “2024 Indenture”), between Zynga and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association) (the “Convertible Notes Trustee”), relating to Zynga’s 0.25% Convertible Senior Notes due 2024 (the “2024 Convertible Notes”), and (b) the First Supplemental Indenture (the “2026 Supplemental Indenture” and, together with the 2024 Supplemental Indenture, the “Supplemental Indentures”) to the Indenture, dated as of December 17, 2020 (the “2026 Indenture” and, together with the 2024 Indenture, the “Indentures”), between Zynga and the Convertible Notes Trustee, relating to Zynga’s 0.00% Convertible Senior Notes due 2026 (the “2026 Convertible Notes” and, together with the 2024 Convertible Notes, the “Convertible Notes”). As of the closing date of the acquisition, approximately $690.0 aggregate principal amount of the 2024 Convertible Notes was outstanding and approximately $874.5 aggregate principal amount of the 2026 Convertible Notes was outstanding. Following the acquisition and according to the Supplemental Indentures, we assumed all of Zynga’s rights and obligations under the Indentures, and the Company guaranteed the payment and other obligations of Zynga under the Convertible Notes. As a result of our acquisition of Zynga, the right to convert each one thousand dollar principal amount of such Convertible Notes into shares of Zynga common stock was changed into a right to convert such principal amount of such Convertible Notes into the number of units of Reference Property equal to the conversion rate in effect immediately prior to the closing, in each case pursuant to the terms and procedures set forth in the applicable Indenture. A unit of Reference Property is defined in each Indenture as 0.0406 shares of Take-Two common stock and $3.50 in cash, without interest, plus cash in lieu of any fractional shares of Take-Two common stock. The 2024 Convertible Notes and 2026 Convertible Notes mature on June 1, 2024, and December 15, 2026, respectively, unless earlier converted, redeemed, or repurchased in accordance with their terms, respectively, prior to the maturity date. Interest is payable semiannually on the 2024 Convertible Notes in arrears on March 1 and September 1 of each year. The 2026 Convertible Notes do not bear regular interest, and the principal amount does not accrete. The acquisition of Zynga constituted a Fundamental Change, a Make-Whole Fundamental Change, and a Share Exchange Event (each as defined in the Indentures) under the Indentures. The effective date of the Fundamental Change, Make-Whole Fundamental Change and Share Exchange Event in respect of the Convertible Notes was May 23, 2022, and the related tender and conversion periods expired on June 22, 2022. As a result, each holder of Convertible Notes had the right to tender its Convertible Notes to the Company for cash or surrender its Convertible Notes for conversion into the Reference Property at the applicable conversion rate, in each case pursuant to the terms and procedures set forth in the applicable Indenture. As of the expiration of the Fundamental Change, Make-Whole Fundamental Change, and Share Exchange Event, (a) $0.3 aggregate principal amount of the 2024 Convertible Notes and (b) $845.1 aggregate principal amount of the 2026 Convertible Notes were tendered for cash. In addition, (a) $668.3 aggregate principal amount of the 2024 Convertible Notes, and (b) no 2026 Convertible Notes were surrendered for conversion into the applicable Reference Property. In total, we paid $321.6 for the tendered or converted 2024 Convertible Notes, including interest, and $845.1 for the tendered 2026 Convertible Notes in cash, and we issued 3.7 shares of our common stock upon the conversion of the 2024 Convertible Notes. After settlement of all Convertible Notes tendered or surrendered for conversion, $21.4 aggregate principal amount of the 2024 Convertible Notes remained outstanding and $29.4 aggregate principal amount of the 2026 Convertible Notes remained outstanding at March 31, 2024. The 2024 Convertible Notes and 2026 Convertible Notes constitute senior unsecured indebtedness of Zynga, ranking pari passu with all of our other existing and future senior unsecured unsubordinated obligations of Zynga. As a result, the 2024 Convertible Notes and 2026 Convertible Notes are structurally senior to the indebtedness of the Company as to Zynga, its subsidiaries, and their respective assets. As noted above, the Company also guaranteed the payment and other obligations of Zynga under the Convertible Notes. The Company's guarantees of the 2024 Convertible Notes and 2026 Convertible Notes are the Company's senior unsecured obligations and rank equally with all of the Company's other existing and future senior unsecured unsubordinated obligations. Under the terms of the applicable Indentures, prior to the close of business on the business day immediately preceding March 1, 2024 with respect to the 2024 Convertible Notes and September 15, 2026 with respect to the 2026 Convertible Notes, the Convertible Notes will be convertible only under the following circumstances: • during any calendar quarter, if the value of a unit of Reference Property (based on the last reported sales price of our common stock), for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the applicable series of the 2024 Convertible Notes or 2026 Convertible Notes, respectively, on each applicable trading day; • during the five business-day period after any five consecutive trading-day period in which the trading price per one thousand dollar principal amount of each applicable series of the 2024 Convertible Notes or 2026 Convertible Notes for such trading day was less than 98% of the product of the value of a unit of Reference Property (based on the last reported sale price of our common stock) and the conversion rate of the applicable series of the 2024 Convertible Notes or 2026 Convertible Notes, respectively, on each such trading day; • if we call the 2024 Convertible Notes or 2026 Convertible Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the respective redemption date; or • upon the occurrence of specified corporate events described in the respective Indentures. Upon any conversion, holders will receive either cash or a combination of cash and shares of Take-Two common stock, at our election. As of March 31, 2024, the conditions allowing holders of the Convertible Notes to convert their respective series of the Convertible Notes have not been met, and, therefore, both the Convertible Notes are not yet convertible. We have elected to account for these Convertible Notes, which are considered derivatives, using the fair value option (Level 2) under ASC 825, as the Convertible Notes were initially recognized at fair value under the acquisition method of accounting in connection with the Zynga Acquisition (refer to Note 20 - Acquisitions ) and we do not expect significant fluctuations in fair value through maturity. We initially recorded $778.6 as the acquisition date fair value for the 2024 Convertible Notes and $874.5 for the 2026 Convertible Notes. The fair value was determined as the expected cash payment and value of shares to be issued to settle the Convertible Notes. As of March 31, 2024, we recorded $24.6 as the fair value of the remaining outstanding 2024 Convertible Notes, within Short-term debt, net, and $25.9 as the fair value of the remaining outstanding 2026 Convertible Notes, within Long-term debt, net, in our Consolidated Balance Sheet. During the fiscal year |
(LOSS) EARNINGS PER SHARE ("EPS
(LOSS) EARNINGS PER SHARE ("EPS") | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
(LOSS) EARNINGS PER SHARE ("EPS") | (LOSS) EARNINGS PER SHARE ("EPS") The following table sets forth the computation of basic and diluted (loss) earnings per share: Fiscal Year Ended March 31, 2024 2023 2022 Computation of Basic (loss) earnings per share: Net (loss) income $ (3,744.2) $ (1,124.7) $ 418.0 Weighted average common shares outstanding—basic 170.1 159.9 115.5 Basic (loss) earnings per share (22.01) (7.03) 3.62 Computation of Diluted (loss) earnings per share: Net (loss) income $ (3,744.2) $ (1,124.7) $ 418.0 Weighted average common shares outstanding—basic 170.1 159.9 115.5 Add: dilutive effect of common stock equivalents — — 1.3 Weighted average common shares outstanding—diluted 170.1 159.9 116.8 Diluted (loss) earnings per share $ (22.01) $ (7.03) $ 3.58 |
LEASES
LEASES | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | LEASES Our lease arrangements are primarily for (1) corporate, administrative, and development studio offices and (2) data centers and server equipment. Our existing leases have remaining lease terms ranging from one one Information related to our operating leases are as follows: Fiscal Year Ended March 31, 2024 2023 2022 Lease costs Operating lease costs $ 80.5 $ 109.8 $ 46.3 Short-term lease costs 4.9 4.1 1.4 During the fiscal year ended March 31, 2023, we recognized a $30.0 impairment loss related to an ROU asset related to Zynga's office space lease in San Francisco, which is available for sublease and not currently used by us due to the continued deterioration of the sublease market, unsuccessful negotiations with a potential sub-tenant, and our decision to change our sublease marketing strategy. This impairment loss is included in General and administrative expense within our Consolidated Statement of Operations and in the Operating lease costs in the table above. The fair value of the San Francisco Office was estimated using a risk-adjusted, discounted cash flow model with Level 3 inputs. The significant assumptions used in estimating the fair value included the projected sublease income over the remaining lease term, expected downtime prior to the commencement of future subleases, expected rent concessions offered to future tenants and discount rates that reflected the level of risk associated with these future cash flows. Fiscal Year Ended March 31, 2024 2023 2022 Supplemental operating cash flow information Cash paid for amounts included in the measurement of lease liabilities $ 73.9 $ 55.9 $ 32.8 ROU assets obtained in exchange for lease obligations 89.5 145.3 74.0 Fiscal Year Ended March 31, 2024 2023 2022 Weighted average information Remaining lease term 8.40 years 8.93 years 10.09 years Discount rate 4.56 % 4.33 % 4.29 % Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at March 31, 2024, are as follows: For the years ending March 31, 2025 $ 83.9 2026 69.2 2027 67.2 2028 63.6 2029 60.4 Thereafter 199.6 Total future lease payments $ 543.9 Less imputed interest (92.8) Total lease liabilities $ 451.1 As of March 31, 2024, we have entered into facility leases that have not yet commenced with future lease payments of approximately $11.6. These leases are expected to commence within the next twelve months and will have lease terms ranging from three |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES A summary of annual minimum contractual obligations and commitments as of March 31, 2024 is as follows: Fiscal Year Ending March 31, Software Marketing Purchase Total 2025 $ 333.0 $ 32.4 $ 146.3 $ 511.7 2026 133.3 74.5 67.7 275.5 2027 33.3 28.2 12.6 74.1 2028 8.5 6.3 0.3 15.1 2029 13.8 6.5 — 20.3 Thereafter 1.0 6.5 — 7.5 Total $ 522.9 $ 154.4 $ 226.9 $ 904.2 Software Development and Licensing Agreements: We make payments to third-party software developers that include contractual payments to developers under several software development agreements that expire at various times through October 2030. Our aggregate outstanding software development commitments assume satisfactory performance by third-party software developers. We also have licensing commitments that primarily consist of obligations to holders of intellectual property rights for use of their trademarks, copyrights, technology or other intellectual property rights in the development of our products. Marketing Agreements: We have certain minimum marketing support commitments where we commit to spend specified amounts related to marketing our products. Marketing commitments expire at various times through March 2030 and primarily reflect our agreements with major sports leagues and players' associations. Purchase Obligations: These obligations are primarily related to agreements to purchase services that are enforceable and legally binding on us that specifies all significant terms, including fixed, minimum or variable pricing provisions; and the approximate timing of the transactions, expiring at various times through August 2028. Employee Savings Plans: For our United States employees we maintain a 401(k) retirement savings plan and trust. Our 401(k) plan is offered to all eligible employees and participants may make voluntary contributions. We also have various pension plans for our non-U.S. employees, some of which are required by local laws, and allow or require employer contributions. Employer contributions under all defined contribution and pension plans during the fiscal years ended March 31, 2024, 2023, and 2022 were $43.0, $36.1, and $22.4, respectively. 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. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Components of (Loss) income before income taxes are as follows: Fiscal Year Ended March 31, 2024 2023 2022 Domestic $ (2,081.8) $ (937.0) $ 357.5 Foreign (1,621.0) (401.1) 107.9 (Loss) income before income taxes $ (3,702.8) $ (1,338.1) $ 465.4 Provision for (benefit from) current and deferred income taxes consists of the following: Fiscal Year Ended March 31, 2024 2023 2022 Current: U.S. federal $ 23.0 $ 70.2 $ 12.0 U.S. state and local 12.4 3.3 (0.6) Foreign 107.5 98.0 24.1 Total current income taxes 142.9 171.5 35.5 Deferred: U.S. federal 24.6 (175.4) 34.8 U.S. state and local (22.6) (31.4) 2.9 Foreign (103.5) (178.1) (25.8) Total deferred income taxes (101.5) (384.9) 11.9 Provision for (benefit from) income taxes $ 41.4 $ (213.4) $ 47.4 A reconciliation of our effective tax rate to the U.S. statutory federal income tax rate is as follows: Fiscal Year Ended March 31, 2024 2023 2022 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State and local taxes, net of U.S. federal benefit 0.6 % 2.0 % 1.2 % Foreign tax rate differential (1) 0.2 % (0.3) % (1.8) % Foreign earnings (2) (1.5) % (1.3) % (2.3) % Tax credits (3) 1.7 % 5.7 % (6.6) % Excess tax benefits from stock-based compensation (0.1) % (0.5) % (3.1) % Earn-out adjustments 0.1 % (0.4) % 2.2 % Valuation allowance—domestic (4) (9.1) % (6.3) % (0.1) % Valuation allowance—foreign (4) (1.1) % (0.1) % 0.4 % Nondeductible compensation (0.1) % (0.9) % 0.4 % Global intangible low-taxed income (1.0) % (3.1) % 0.1 % Foreign-derived intangible income 0.5 % 1.8 % (0.9) % Change in reserves 0.9 % (0.1) % (0.9) % Goodwill impairment (12.8) % — % — % Other (5) (0.4) % (1.6) % 0.6 % Effective tax rate (1.1) % 15.9 % 10.2 % (1) The foreign rate differentials in relation to foreign earnings, for all periods presented, are primarily driven by changes in the mix of our foreign earnings and the difference between the foreign and U.S. income tax rates. (2) Fiscal year ended March 31, 2024 include tax expense of $29.2 from a decrease in the deferred tax assets related to Switzerland's Federal Act on Tax Reform and AVH Financing ("TRAF") enacted on January 1, 2020. Fiscal years ended March 31, 2023, and March 31, 2022, include tax benefit of $5.6 and $11.6, respectively, from the effects of an increase in the deferred tax asset. (3) Tax benefits were recorded for fiscal years ended March 31, 2024, 2023, and 2022 attributable to certain tax credits related to software development activities. (4) The change in domestic and foreign valuation allowance includes an increase in our valuation allowance on deferred tax assets as a result of a determination in the fiscal year ended March 31, 2024 that it was more likely than not that such deferred tax assets would not be realized. (5) For the fiscal year ended March 31, 2023, includes nondeductible expense of $8.2 relating to loss on the redemption of convertible debt The effects of temporary differences that gave rise to our deferred tax assets and liabilities were as follows: March 31, 2024 2023 Deferred tax assets: Capitalized development costs, software and depreciation $ 365.1 $ 157.8 Tax credit carryforward 174.4 159.5 Equity-based compensation 143.0 109.8 Tax basis step up related to TRAF 131.1 79.1 Operating lease liabilities 101.9 90.6 Accrued compensation expense 72.6 96.6 Net operating loss carryforward 63.2 50.3 Other 2.7 26.0 Total deferred tax assets 1,054.0 769.7 Less: Valuation allowance (799.1) (338.2) Net deferred tax assets $ 254.9 $ 431.5 Deferred tax liabilities: Intangible amortization $ (513.2) $ (841.0) Right-of-use assets (75.7) (64.7) Deferred revenue (5.0) (15.0) Total deferred tax liabilities (593.9) (920.7) Net deferred tax liability (1) $ (339.0) $ (489.2) (1) As of March 31, 2024, $1.9 is included in Deferred tax assets and $340.9 is included in Deferred tax liabilities, net. As of March 31, 2023 , $44.8 is included in Deferred tax assets and $534.0 is included in Deferred tax liabilities, net. We assess the realizability of the deferred tax assets based on the available positive and negative evidence in order to determine the amount which is more likely than not to be realized and record a valuation allowance as necessary. Due to our cumulative loss position, which provides significant negative evidence, we recognized a tax expense of $378.8 from an increase in our valuation allowance on U.S. and foreign deferred tax assets, as a result of a determination that it was more likely than not that such deferred tax assets would not be realized. The remaining net deferred tax liability is primarily related to a basis difference in intangibles as a result of the acquisition of Zynga in May 2022. At March 31, 2024, we had domestic net operating loss carryforwards totaling $367.5 of which $28.3 will expire from 2024 to 2029, $187.3 will expire from 2030 to 2040, $136.8 will expire from 2041 to 2043, and the remainder will be carried forward indefinitely. In addition, we had foreign net operating loss carryforwards of $201.7, of which $127.6 will expire from 2026 to 2030, $13.9 will expire from 2041 to 2044 and the remainder may be carried forward indefinitely. At March 31, 2024, we had domestic tax credit carryforwards totaling $300.5, of which $1.4 expire in 2031 to 2038, $2.6 expire from 2041 to 2044, and the remainder may be carried forward indefinitely. The total amount of undistributed earnings of foreign subsidiaries was approximately $492.5 at March 31, 2024 and $64.6 at March 31, 2023. The amount of undistributed earnings of foreign subsidiaries of $456.0 as of March 31, 2023 was offset by a deficit of $391.4 relating to Zynga, while the amount at March 31, 2024 does not include amounts relating to foreign subsidiaries with deficits. As of March 31, 2024, it is our intention to reinvest indefinitely undistributed earnings of our foreign subsidiaries. Accordingly, no provision has been made for foreign withholding taxes or U.S. income taxes which may become payable if undistributed earnings of foreign subsidiaries are repatriated. It is not practicable to estimate the tax liability that would arise if these earnings were remitted. We are regularly audited by domestic and foreign taxing authorities. Audits may result in tax assessments in excess of amounts claimed and the payment of additional taxes. We believe that our tax return positions comply with applicable tax law and that we have adequately provided for reasonably foreseeable assessments of additional taxes. Additionally, we believe that any assessments in excess of the amounts provided for will not have a material adverse effect on our Consolidated Financial Statements. 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. We recognize interest and penalties related to uncertain tax positions in the provision for income taxes in our Consolidated Statements of Operations. For the fiscal years ended March 31, 2024, 2023, and 2022, we recognized an increase of interest and penalties of $13.5, $8.9, and $1.9, respectively. The gross amount of interest and penalties accrued as of March 31, 2024 and 2023 was $33.6 and $20.2, respectively. As of March 31, 2024, we had gross unrecognized tax benefits, including interest and penalties, of $276.3, of which $167.9 would affect our effective tax rate if realized. For the fiscal year ended March 31, 2024, gross unrecognized tax benefits decreased by $18.5. We are no longer subject to audit for U.S. federal income tax returns for periods prior to our fiscal year ended March 31, 2021 and state income tax returns for periods prior to the fiscal year ended March 31, 2020. With few exceptions, we are no longer subject to income tax examinations in non-U.S. jurisdictions for years prior to fiscal year ended March 31, 2016. Certain U.S. state and foreign taxing authorities are currently examining our income tax returns for the fiscal years ended March 31, 2016 through March 31, 2022. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. Although potential resolution of uncertain tax positions involve multiple tax periods and jurisdictions, it is reasonably possible that a reduction of $38.6 of unrecognized tax benefits may occur within the next 12 months, some of which, depending on the nature of the settlement or expiration of statutes of limitations, may affect our income tax provision and therefore benefit the resulting effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements. The aggregate changes to the liability for gross uncertain tax positions, excluding interest and penalties, were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Balance, beginning of period $ 274.7 $ 164.8 $ 158.3 Additions: Current year tax positions 41.4 26.5 10.3 Prior year tax positions (1) 2.3 109.7 4.2 Reduction of prior year tax positions — (26.3) — Lapse of statute of limitations (76.2) — (8.0) Other 0.6 — — Balance, end of period $ 242.8 $ 274.7 $ 164.8 (1) For the fiscal year ended March 31, 2023, the increase in prior year tax positions of $109.7 related to purchase accounting for the Zynga acquisition. We believe that we have provided for any reasonably foreseeable outcomes related to our tax audits and that any settlement will not have a material adverse effect on our consolidated financial statements. However, there can be no assurances as to the possible outcomes. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Incentive Plan In September 2017, our stockholders approved our 2017 Stock Incentive Plan (the "2017 Plan"). The aggregate number of shares issuable under the 2017 Plan is 25.7, subject to adjustment as set forth in the 2017 Plan, and, as of March 31, 2024, there were approximately 10.5 shares available for issuance. The 2017 Plan is administered by the Compensation Committee of the Board of Directors and allows for awards of restricted stock units and other stock-based awards of our common stock to employees and non-employees, including to ZMC in connection with their contract to provide executive management service to us. Subject to the provisions of the plans, the Board of Directors, or any Committee appointed by the Board of Directors, has the authority to determine the individuals to whom the equity awards are to be granted, the number of shares to be covered by each equity award, the vesting period, restrictions, if any, on the equity award and the terms and conditions of the equity award. Upon the vesting of certain stock-based awards, employees have the option to have us withhold shares to satisfy the employee's federal and state tax withholding requirements. Stock-Based Compensation Expense The following table summarizes stock-based compensation expense included in our Consolidated Statements of Operations: Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 24.4 $ (9.5) $ 48.4 Selling and marketing 95.3 95.2 30.0 General and administrative 111.5 115.5 66.5 Research and development 104.4 116.6 38.1 Stock-based compensation expense before income taxes 335.6 317.8 183.0 Provision for (benefit from) income taxes (12.2) (45.8) (35.4) Stock-based compensation expense, net of income tax benefit 323.4 272.0 147.6 Capitalized stock-based compensation expense $ 85.4 $ 74.4 $ 82.1 During the fiscal year ended March 31, 2024, the forfeiture of awards resulted in the reversal of expense of $2.4 and amounts capitalized as software development costs of $7.4. During the fiscal year ended March 31, 2023, the forfeiture of awards resulted in the reversal of expense of $49.5 and amounts capitalized as software development costs of $11.9. During the fiscal year ended March 31, 2022, the forfeiture of awards resulted in the reversal of expense of $0.7 and amounts capitalized as software development costs of $3.2. As of March 31, 2024, the total future unrecognized compensation cost related to outstanding unvested restricted stock was $684.2 and will be either recognized as compensation expense over a weighted-average period of approximately 2.4 years or capitalized as software development costs. For the fiscal years ended March 31, 2024, 2023, and 2022, the total fair values of restricted stock units that vested were $309.3, $321.8, and $208.6, respectively. In connection with the Zynga Acquisition (see Note 20 - Acquisitions ), (i) the outstanding and unexercised options to purchase Zynga common stock were assumed by the Company and automatically converted into options exercisable for shares of Take-Two common stock (the “Converted Options”), (ii) the issued and outstanding restricted stock unit awards with respect to Zynga common stock were assumed by the Company and automatically converted into a Take-Two restricted stock unit award with respect to shares of Take-Two common stock (the “Converted RSUs”), and (iii) the issued and outstanding performance stock unit awards with respect to Zynga common stock were assumed by the Company and automatically converted into a Take-Two restricted stock unit award with respect to shares of Take-Two common stock (the “Converted PSUs” and together with the Converted Options and the Converted RSUs, the “Converted Awards”). As a result, we issued replacement equity options and PSU/RSU awards of 1.5 and 4.2, respectively. The portion of the fair value related to pre-combination services of $151.7 was included in the purchase price, and $28.6 was recognized as day-one post-combination expense for acceleration of awards, while the remaining fair value will be recognized over the remaining service periods. As of March 31, 2024, the future expense for the Converted RSUs and Converted PSUs was approximately $114.9, which will be recognized over a weighted average service period of approximately 1.0 years. As of March 31, 2024, the future expense for the Converted Options was approximately $0.1, which will be recognized over a weighted average service period of approximately 0.3 years. Restricted Stock Units Employee Awards Time-based restricted stock units granted to employees under our stock-based compensation plans generally vest either annually or quarterly over three years or four years from the date of grant. Certain restricted stock units granted to key officers, senior-level employees, or key employees vest based on market conditions, primarily related to the performance of the price of our common stock. Certain restricted stock units granted to key officers, senior-level employees, or key employees vest based on performance conditions, primarily related to performance metrics around certain of our titles. ZMC Non-Employee Awards In connection with the 2022 Management Agreement and the 2017 Management Agreement, we granted restricted stock units (in thousands) to ZMC (see Note 3 - Management Agreement ) as follows: Fiscal Year Ended March 31, 2024 2023 Time-based 97 192 Market-based (1) 295 510 Performance-based (1) IP — 18 Recurrent Consumer Spending ("RCS") 98 153 Total Performance-based 98 171 Total Restricted Stock Units 490 873 (1) Represents the maximum number of shares eligible to vest. Time-based restricted stock units granted in fiscal year 2024 pursuant to the 2022 Management Agreement will vest on May 31, 2024, May 30, 2025, and June 1, 2026, and those granted in fiscal year 2023 pursuant to the 2022 Management Agreement, vested in part on June 1, 2023 and will also vest in part on May 31, 2024, and May 30, 2025. Time-based restricted stock units granted in fiscal year 2023 pursuant to the 2017 Management Agreement vested on April 12, 2024. Market-based restricted stock units granted in fiscal year 2024 pursuant to the 2022 Management Agreement are eligible to vest on June 1, 2026, and those granted in fiscal year 2023 pursuant to the 2022 Management Agreement are eligible to vest on May 31, 2024 and May 30, 2025. Market-based restricted stock units granted in fiscal year 2023 pursuant to the 2017 Management Agreement vested on April 12, 2024. 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 either the NASDAQ Composite Index under the 2017 Management Agreement or the NASDAQ 100 index under the 2022 Management Agreement (as defined in the relevant grant agreement) as of the grant date measured over a two-year period or three-year period, as applicable. 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 2024 pursuant to the 2022 Management Agreement are eligible to vest on June 1, 2026, and those granted in fiscal year 2023 pursuant to the 2022 Management Agreement are eligible to vest on May 31, 2024 and May 30, 2025. Performance-based restricted stock units granted in fiscal year 2023 pursuant to the 2017 Management Agreement vested on April 12, 2024. The performance-based restricted stock units, of which certain are tied to "IP" and "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" measured over a two-year period or "RCS" measured over a two-year or three-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 ZMC as of March 31, 2024 and 2023 were 1.3 and 1.1, respectively. During the fiscal year ended March 31, 2024, 0.2 restricted stock units previously granted to ZMC vested, and 0.0 restricted stock units were forfeited by ZMC. Fair Value of Stock-Based Awards Time-Based Awards The estimated value, based on the closing price of our stock on the grant date, of time-based restricted stock units granted to employees during the fiscal years ended March 31, 2024, 2023, and 2022 was $138.25, $118.17, and $180.97 per share, respectively. For the fiscal years ended March 31, 2024, 2023, and 2022, the estimated value, based on the closing price of our stock on the grant date, of time-based restricted stock awards granted to ZMC was $137.59, $128.90, and $182.66 per share, respectively. The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with time-based restricted stock awards presented at 100% of target number of shares that may potentially vest: Shares Weighted Non-vested restricted stock units at March 31, 2023 5.1 $ 126.34 Granted 1.6 138.21 Vested (1.9) 130.24 Forfeited (0.4) 123.03 Non-vested restricted stock units at March 31, 2024 4.4 $ 129.33 Market-Based Awards The following table summarizes the weighted-average assumptions used in the Monte Carlo Simulation to estimate the fair value of market-based awards: Fiscal Year Ended March 31, 2024 2023 2022 Employee Non-Employee Employee Non-Employee Employee Non-Employee Risk-free interest rate 4.0% 4.0% 2.6-2.8% 2.4-2.8% 0.1 % 0.2 % Expected stock price volatility 36.6% 36.6% 35.9-37.6% 34.2-37.6% 37.3 % 36.3 % Expected service period (years) 2.8 2.8 1.8-2.8 1.8-2.8 1.5 1.0 Dividends None None None None None None The estimated value of market-based restricted stock awards granted to employees during the fiscal years ended March 31, 2024, 2023, and 2022 was $195.85, $179.93, and $292.76 per share, respectively. For the fiscal years ended March 31, 2024, 2023, and 2022, the estimated value of the market-based restricted stock awards granted to ZMC was $193.41, $175.12, and $293.32 per share, respectively. The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with market-based restricted stock awards presented at 100% of target number of shares that may potentially vest: Shares Weighted Non-vested restricted stock units at March 31, 2023 0.7 $ 183.72 Granted 0.5 195.03 Vested (0.2) 276.07 Forfeited (0.1) 218.49 Non-vested restricted stock units at March 31, 2024 0.9 $ 172.66 Performance-Based Awards The estimated value of performance-based restricted stock awards granted to employees during the fiscal year ended March 31, 2024, 2023, and 2022 was $139.21, $125.03, and $176.05, respectively. For the fiscal years ended March 31, 2024, 2023, and 2022, the estimated value of the performance-based restricted stock awards granted to ZMC was $148.42, $125.90, and $182.66 per share, respectively. The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with performance restricted stock awards presented at 100% of target number of shares that may potentially vest: Shares Weighted Non-vested restricted stock units at March 31, 2023 3.9 $ 113.28 Granted 0.2 141.90 Vested (0.1) 166.02 Forfeited (0.1) 151.67 Non-vested restricted stock units at March 31, 2024 3.9 $ 113.58 Fair Value of Stock Options All Converted Options generally vest over four The following table shows stock option activity for the fiscal year ended March 31, 2024: Shares Weighted Aggregate Intrinsic Value of Stock Options Outstanding Weighted Average Contractual Term (In Years) Balance as of March 31, 2023 0.7 $ 49.54 $ 46.51 4.53 Granted — — Vested (0.1) 38.68 Forfeited — 34.68 Balance as of March 31, 2024 0.6 $ 50.50 $ 61.85 3.45 As of March 31, 2024 Exercisable options 0.6 $ 50.02 $ 61.72 3.45 Vested and expected to vest — $ 44.59 $ 0.13 6.51 The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of our stock options converted during the fiscal year ended March 31, 2023. We had no stock options converted or granted in the fiscal year ended March 31, 2024: Fiscal Year Ended March 31, 2023 Risk-free interest rate 0.6-2.8% Expected stock price volatility 36.0-46.5% Expected service period (years) 0.1-5.1 Dividends None The aggregate intrinsic value of stock options exercised during the fiscal year ended March 31, 2024 was $4.6. For the fiscal year ended March 31, 2024, the amount of cash received from exercise of stock options was $1.5. The total fair value of options that vested during the fiscal year ended March 31, 2024 was $1.5. The total fair value of options that were exercised during the fiscal year ended March 31, 2024 was $6.1. During the fiscal year ended March 31, 2024, total unrecognized stock-based compensation expense of $0.1 related to unvested stock options is expected to be recognized over a weighted-average recognition period of approximately 0.28 years. Employee Stock Purchase Plans In September 2017, our stockholders approved our 2017 Global Employee Stock Purchase Plan as amended and restated ("ESPP"). The maximum aggregate number of shares of common stock that may be issued under the plan is 9.0, and as of March 31, 2024, there were approximately 7.9 shares available for issuance. The ESPP is administered by the Compensation Committee of the Board of Directors and allows for eligible employees an option to purchase shares of our common stock, which the employee may or may not exercise during an offering period. Eligible employees may authorize payroll deductions of between 1% and 15% of their compensation to purchase shares of common stock at 85% of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. The fair value is determined using the Black-Scholes valuation model. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term, and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on historical stock price volatility. Expected term is determined based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. The following table summarizes the assumptions used in the Black-Scholes valuation model to value our purchase rights: Fiscal Year Ended March 31, 2024 2023 Risk-free interest rate 5.14-5.51% 1.4-4.6% Expected stock price volatility 26.3-39.1% 27.7% Expected service period (years) 0.5 0.5 Dividends None None For the fiscal year ended March 31, 2024, our employees purchased 0.4 shares for $37.9 with a weighted-average fair value of $102.19. For the fiscal year ended March 31, 2023, our employees purchased 0.2 shares for $22.1 with a weighted-average fair value of $101.15. |
INTEREST AND OTHER, NET
INTEREST AND OTHER, NET | 12 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
INTEREST AND OTHER, NET | INTEREST AND OTHER, NET Fiscal Year Ended March 31, 2024 2023 2022 Interest income $ 62.3 $ 33.8 $ 17.6 Interest expense (140.6) (129.6) (18.6) Foreign currency exchange gain (loss) (28.6) (31.8) (7.3) Other 3.3 (14.3) (5.9) Interest and other, net $ (103.6) $ (141.9) $ (14.2) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | ACCUMULATED OTHER COMPREHENSIVE (LOSS) The following table provides the components of Accumulated other comprehensive loss: Foreign currency Unrealized gain Total Balance at March 31, 2022 $ (52.8) $ (4.5) $ (57.3) Other comprehensive income (loss) before reclassifications (58.9) 2.9 (56.0) Balance at March 31, 2023 $ (111.7) $ (1.6) $ (113.3) Other comprehensive income (loss) before reclassifications 6.7 1.5 8.2 Balance at March 31, 2024 $ (105.0) $ (0.1) $ (105.1) |
SUPPLEMENTARY FINANCIAL INFORMA
SUPPLEMENTARY FINANCIAL INFORMATION | 12 Months Ended |
Mar. 31, 2024 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SUPPLEMENTARY FINANCIAL INFORMATION | SUPPLEMENTARY FINANCIAL INFORMATION The following table provides details of our valuation and qualifying accounts: Beginning Additions Deductions Other Ending Fiscal Year Ended March 31, 2024 Valuation allowance for deferred income taxes $ 338.2 488.0 (27.1) — $ 799.1 Fiscal Year Ended March 31, 2023 Valuation allowance for deferred income taxes $ 121.9 218.5 (2.2) — $ 338.2 Fiscal Year Ended March 31, 2022 Valuation allowance for deferred income taxes $ 95.7 27.9 (1.7) — $ 121.9 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Zynga Acquisition On May 23, 2022, we completed the Zynga Acquisition. Under the terms and conditions of the merger agreement, each Zynga stockholder received $3.50 in cash and 0.0406 shares of our common stock and cash in lieu of fractional shares for each share of Zynga common stock outstanding at closing. Our consideration consisted of an aggregate of $3,992.4 in cash, 46.3 shares of our common stock, and $151.7 of replacement equity awards attributable to the pre-acquisition service period. In connection with the transaction, on April 14, 2022, we completed our offering and sale of $2,700.0 aggregate principal amount of our Senior Notes (refer to Note 11 - Debt ). The cash portion of the merger consideration was funded from our cash on hand, including the proceeds from our senior notes offering. We acquired Zynga 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 $9,521.8, which consisted of the following: Fair value of purchase consideration Cash $ 3,992.4 Common stock (46.3 shares) 5,377.7 Replacement equity awards 151.7 Total $ 9,521.8 We used the acquisition method of accounting and recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess recorded to goodwill. The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Zynga: Fair Value Weighted average useful life Cash acquired $ 864.9 N/A Accounts receivable 271.2 N/A Prepaid expenses and other 194.4 N/A Fixed assets 54.3 N/A Right-of-use assets 92.7 N/A Other tangible assets 67.1 N/A Accounts payable (78.5) N/A Accrued expenses and other current liabilities (352.8) N/A Deferred revenue (333.1) N/A Lease liabilities (15.7) N/A Long-term debt (1,653.1) N/A Non-current lease liabilities (131.6) N/A Deferred tax liabilities, net (922.9) N/A Other liabilities assumed (61.5) N/A Intangible assets Developed game technology 4,440.0 7 Branding and trade names 384.0 12 Game engine technology 261.0 4 User base 316.0 1 Developer relationships 57.0 4 Advertising technology 43.0 3 Customer relationships 31.0 5 Goodwill 5,994.4 N/A Total $ 9,521.8 Popcore Acquisition On November 16, 2022, we completed the acquisition of 100% of Popcore, a privately-held Germany-based free-to-play mobile game developer, for initial consideration of $116.9 in cash, 0.6 shares of our common stock, and a contingent earn-out consideration arrangement that requires us to pay up to an aggregate of $105.0 in cash if Popcore achieves certain performance measures over each of the three We acquired Popcore 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 $198.0, which consisted of the following: Fair value of purchase consideration Cash $ 116.9 Common stock (0.6 shares) 57.8 Contingent earn-out 23.3 Total $ 198.0 The fair value of the contingent earn-out consideration arrangement at the acquisition date was $23.3. We estimated the fair value of the contingent earn-out consideration using a Monte Carlo simulation model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820 (refer to Note 4 - Fair Value Measurements ). We used the acquisition method of accounting and recognized assets and liabilities at their fair value as of the date of acquisition, with the excess recorded to goodwill. The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Popcore: Fair Value Weighted average useful life Cash acquired $ 37.1 N/A Other tangible assets 22.4 N/A Other liabilities assumed (81.2) N/A Intangible assets Developed game technology 113.0 5 Game engine technology 27.7 7 Branding and trade names 3.4 4 Goodwill 75.6 N/A Total $ 198.0 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. Gearbox Acquisition On March 27, 2024, we entered into a Share Purchase Agreement to purchase 100% of the issued and outstanding capital stock of The Gearbox Entertainment Company, Inc. ("Gearbox"), from Embracer Group AB. The purchase price is $460.0, consisting of newly issued shares of Take-Two common stock, valued based on the volume weighted average closing price per share of our common stock on the Nasdaq Global Select Market for the five consecutive trading days ending on (and including) the trading day immediately preceding the closing date, subject to adjustments as defined in the Share Purchase Agreement. The transaction, which is currently anticipated to close during the first quarter in fiscal 2025, is subject to the satisfaction or waiver of customary closing conditions for both parties. |
BUSINESS REORGANIZATION
BUSINESS REORGANIZATION | 12 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
BUSINESS REORGANIZATION | BUSINESS REORGANIZATION We have implemented a cost reduction program to identify efficiencies across our business (the "2024 Plan"), which includes eliminating several projects in development and streamlining our organizational structure. The 2024 Plan is expected to be largely completed by December 31, 2024. We estimate that we will incur approximately $160.0 to $200.0 in total charges in connection with the 2024 Plan, which consists of approximately $120.0 to $140.0 related to title cancellations, $25.0 to $35.0 associated with employee severance and employee-related costs, and approximately $15.0 to $25.0 related to office space reductions. We incurred business reorganization expenses of $104.6, $14.6, and $0.8 during the fiscal year ended March 31, 2024, 2023, and 2022, respectively. Of these amounts, $93.3 was incurred in connection with the 2024 Plan during the fiscal year ended March 31, 2024, of which $88.2 related to title cancellations (refer to Note 7 - Software Development Costs and Licenses ), $3.2 was for employee-related costs, and the remaining $1.9 consisted of professional fees. Through March 31, 2024, we paid $1.9 related to these reorganization activities and $13.1 remained accrued for in Accrued expenses and other current liabilities. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net (loss) income | $ (3,744.2) | $ (1,124.7) | $ 418 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Mar. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the financial statements of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain immaterial amounts in the financial statements of the prior years have been reclassified to conform to the current year presentation for comparative purposes. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenue, and expense, as well as the disclosure of contingent assets and liabilities at the dates of the financial statements during the reporting periods. Our most significant estimates relate to revenue recognition (see Note 2 - Revenue from Contracts with Customers ); the recoverability and amortization of software development costs, licenses, and intangible assets; assets acquired and liabilities assumed in business combinations, including the valuation of contingent earn-out consideration; the realization of deferred income taxes; the valuation of stock-based compensation; and assumptions used in our goodwill impairment tests. These estimates generally involve complex issues and require us to make judgments, involve analysis of historical and the prediction of future trends, and are subject to change from period to period. Actual amounts could differ significantly from these estimates, which may affect economic conditions in a number of different ways and result in uncertainty and risk. We consider transactions or events that occur after the balance sheet date, but before the financial statements are issued, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosures. |
Segments | Segments |
Concentration of Credit Risk and Accounts Receivable | Concentration of Credit Risk and Accounts Receivable We maintain cash balances at several major financial institutions. While we attempt to limit credit exposure with any single institution, balances often exceed insurable amounts. Accounts receivable are recorded at the original invoiced amount less an allowance for credit losses. In evaluating our ability to collect outstanding receivable balances and related allowance for credit losses, we consider many factors, including the age of the balance, the customer’s payment history and current creditworthiness, as well as current and forecasted economic conditions that may affect our customers’ ability to pay. Bad debts are written off after all collection efforts have been exhausted. We do not require collateral from our customers. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Our restricted cash and cash equivalents balances are primarily related to dedicated accounts limited to the payment of certain internal royalty obligations. Balances that are restricted from use for more than one year are classified as non-current. |
Short-term Investments | Short-term Investments Short-term investments designated as available-for-sale securities are carried at fair value, which is based on quoted market prices for such securities, if available, or is estimated on the basis of quoted market prices of financial instruments with similar characteristics. Investments with original maturities greater than 90 days and remaining maturities of less than one year are normally classified within Short-term investments on our Consolidated Balance Sheets. In addition, investments with maturities beyond one year at the time of purchase that are highly liquid in nature and represent the investment of cash that is available for current operations are classified as short-term investments. Unrealized gains and losses of available-for-sale securities are excluded from earnings and are reported as a component of Other comprehensive income (loss), net of tax, until the security is sold, the security has matured, or we determine that the fair value of the security has declined below its adjusted cost basis and the decline is not due to a credit loss. Realized gains and losses on short-term investments are calculated based on the specific identification method and would be reclassified from Accumulated other comprehensive loss to Interest and other, net. Short-term investments are evaluated for impairment quarterly. We consider various factors in determining whether we should recognize an impairment charge, including the credit quality of the issuer, the duration that the fair value has been less than the adjusted cost basis, the severity of the impairment, the reason for the decline in value, and our intent to sell and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value. If we conclude that an investment is impaired or a portion of the unrealized loss is a result of a credit loss, we recognize the charge at that time in our Consolidated Statements of Operations. Determining whether the decline in fair value is due to a credit loss requires management judgment based on the specific facts and circumstances of each security. The ultimate value realized on these securities is subject to market price volatility until they are sold. |
Software Development Costs and Licenses | Software Development Costs and Licenses Capitalized software development costs include direct costs incurred for internally developed titles and payments made to third-party software developers under development agreements. We capitalize internal software development costs (including specifically identifiable payroll expense, employee stock-based compensation, and incentive compensation costs related to the completion and release of titles, as well as third-party production and other content costs), subsequent to establishing technological feasibility of a software title. Technological feasibility of a product includes the completion of both technical design documentation and game design documentation. Significant management judgments are made in the assessment of when technological feasibility is established. For products where proven technology exists, this may occur early in the development cycle. Technological feasibility is evaluated on a product-by-product basis. Prior to establishing technological feasibility of a product, we record any costs incurred by third-party developers as research and development expenses. We enter into agreements with third-party developers that require us to make payments for game development and production services. In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game title as well as, in some cases, the underlying intellectual property rights. Such agreements typically allow us to fully recover these payments to the developers at an agreed upon royalty rate earned on the subsequent sales of such software, net of any agreed upon costs. Subsequent to establishing technological feasibility of a product, we capitalize all development and production service payments to third-party developers as software development costs and licenses. We typically enter into agreements with third-party developers after completing the technical design documentation for our products and therefore record the design costs leading up to a signed development contract as research and development expense. When we contract with third-party developers, we generally select those that have proven technology and experience in the genre of the software being developed, which often allows for the establishment of technological feasibility early in the development cycle. In instances where the documentation of the design and technology are not in place prior to an executed contract, we monitor the software development process and require our third-party developers to adhere to the same technological feasibility standards that apply to our internally developed products. Licenses consist of payments and guarantees made to holders of intellectual property rights for use of their trademarks, copyrights or other intellectual property rights in the development of our products. Agreements with license holders generally provide for guaranteed minimum payments for use of their intellectual property. Certain licenses, especially those related to our sports products, extend over multi-year periods and encompass multiple game titles. In addition to guaranteed minimum payments, these licenses frequently contain provisions that could require us to pay royalties to the license holder based on pre-agreed unit sales thresholds. Amortization of capitalized software development costs and licenses commences when a product is available for general release and is recorded on a title-by-title basis in cost of revenue. For capitalized software development costs, annual amortization is calculated using (1) the proportion of current year revenue to the total revenue expected to be recorded over the life of the title or (2) the straight-line method over the remaining estimated life of the title, whichever is greater. For capitalized licenses, amortization is calculated as a ratio of (1) current year revenue to the total revenue expected to be recorded over the remaining estimated life of the title or (2) the contractual royalty rate based on actual net product sales as defined in the licensing agreement, whichever is greater. Amortization periods for our software products generally range from 12 to 30 months. Certain government grants earned on qualified production spend generally either reduce the cost basis of our capitalized software development costs, which therefore results in reduced expense over the amortization period, or reduce period development expense recognized for titles that do not meet the capitalization criteria. Such incentives are accounted for by analogizing under ASC 105-10-05-2 to the grant accounting model under IAS 20. We evaluate the future recoverability of capitalized software development costs and licenses on a quarterly basis. Recoverability is primarily assessed based on the title's actual performance. For products that are scheduled to be released in the future, recoverability is evaluated based on the expected performance of the specific products to which the cost or license relates. We use a number of criteria in evaluating expected product performance, including historical performance of comparable products developed with comparable technology, market performance of comparable titles, orders for the product prior to its release, general market conditions, and past performance of the franchise. When we determine that capitalized cost of the title is unlikely to be recovered by product sales, an impairment of software development and license costs capitalized is charged to cost of revenue in the period in which such determination is made. We have profit and unit sales based internal royalty programs that allow selected employees to participate in the success of software titles that they assist in developing. Royalties earned under these programs are recorded as a component of Cost of revenue in the period earned. Amounts earned and not yet paid are reflected within the software development royalties component of Accrued expenses and other current liabilities on our Consolidated Balance Sheets. |
Fixed Assets, net | Fixed Assets, net Office equipment, furniture and fixtures are depreciated using the straight-line method over their estimated useful life of five years. Computer equipment and software are generally depreciated using the straight-line method over three |
Leases | Leases We determine if an arrangement is a lease at contract inception. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. In certain of our lease arrangements, primarily those related to our data center arrangements, judgment is required in determining if a contract contains a lease. For these arrangements, there is judgment in evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred. The operating lease right-of-use (“ROU”) asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future lease payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset and is based on an unsecured borrowing rate and risk-adjusted to approximate a collateralized rate at the commencement date of the lease. In determining our lease liability, the lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such option. For operating leases, the lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease modifications result in remeasurement of the lease liability. Leases with an initial term of twelve months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. We do not separate non-lease components from the related lease components. |
Goodwill | Goodwill Goodwill is the excess of purchase price paid over identified intangible and tangible net assets of acquired companies. Intangible assets consist of intellectual property, developed game technology, analytics technology, user base, trade names, and in-process research and development. Certain intangible assets acquired in a business combination are recognized as assets apart from goodwill. We use either the income, cost, or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach, or combination of approaches, ultimately selected is based on the characteristics of the asset and the availability of information. We test our goodwill for impairment annually, or more frequently if events and circumstances indicate the fair value of a reporting unit may be below its carrying amount. A reporting unit is defined as an operating segment or one level below an operating segment. We have determined that we operate in two reporting units, which are components of our operating segment. In the evaluation of goodwill for impairment, we have the option to first perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50%) less than the carrying value before performing a quantitative impairment test. When a qualitative assessment is not used, or if the qualitative assessment is not conclusive, a quantitative impairment analysis for goodwill is performed at the reporting unit level. The quantitative goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value exceeds the fair value, an impairment charge is recognized equal to the difference between the carrying value of the reporting unit and its fair value, considering the related income tax effect of any goodwill deductible for tax purposes. |
Long-lived Assets | Long-lived Assets |
Derivatives and Hedging | Derivatives and Hedging We transact business in various foreign currencies and have significant sales and purchase transactions denominated in foreign currencies, subjecting us to foreign currency exchange rate risk. From time to time, we carry out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge our exposure in currency exchange rate movements. We recognize derivative instruments as either assets or liabilities on our Consolidated Balance Sheets and we measure those instruments at fair value. The changes in fair value of derivatives that are not designated as hedges are recognized currently in earnings as Interest and other, net in our Consolidated Statements of Operations. If a derivative meets the definition of a cash flow hedge and is so designated, the effective portion of changes in the fair value of the derivative are recognized, as a component of Other comprehensive income (loss) while the ineffective portion of the changes in fair value is recorded currently in earnings as Interest and other, net in our Consolidated Statements of Operations. Amounts included in Accumulated other comprehensive loss for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in Cost of revenue, Research and development expenses, or Interest and other, net, as appropriate. |
Income Taxes | Income Taxes We record a tax provision for the anticipated tax consequences of the reported results of operations. Our provision for income taxes is computed using the asset and liability method, under which deferred income taxes are recognized for differences between the financial statement and tax bases of assets and liabilities at currently enacted statutory tax rates for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment. Valuation allowances are established when we determine that it is more likely than not that such deferred tax assets will not be realized. We do not record income tax expense related to foreign withholding taxes or United States income taxes that may become payable upon the repatriation of undistributed earnings of foreign subsidiaries, to the extent such earnings are expected to be reinvested indefinitely outside of the United States. We use estimates and assumptions to compute the provision for income taxes including allocations of certain transactions to different tax jurisdictions, amounts of permanent and temporary differences, the likelihood of deferred tax assets being recovered and the outcome of contingent tax risks. These estimates and assumptions are revised as new events occur, more experience is acquired and additional information is obtained. The effect of these revisions is recorded in income tax expense or benefit in the period in which they become known. |
Revenue Recognition | Revenue Recognition We derive revenue primarily from the sale of our interactive entertainment content, principally for console gaming systems, personal computers, and mobile. We also generate revenue from advertising within our software products. Game . Our interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. We may also sell separate downloadable add-on content to supplement our full game software products. Certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. We determine revenue recognition by: • identifying the contract, or contracts, with the customer; • identifying the performance obligations in the contract; • determining the transaction price; • allocating the transaction price to performance obligations in the contract; and • recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sales of software products and game related services when control of the promised products and services is transferred to our customers and our performance obligations under the contract have been satisfied. Revenue is recorded net of transaction taxes assessed by governmental authorities such as sales, value-added and other similar taxes. Our software products are sold as full games, which typically provide access to the main game content, primarily for console and PC. Generally, our full game software products deliver a license of our intellectual property that provides a functional offline gaming experience (i.e., one that does not require an Internet connection to access the main game content or other significant game related services). We recognize revenue related to the license of our intellectual property that provides offline functionality at the time control of the products has been transferred to our customers (i.e. upon delivery of the software product). In addition, some of our full game software products that provide a functional offline gaming experience may also include significant game related services delivered over time, such as online functionality that is dependent upon online support services and/or additional free content updates. For full game sales that offer offline functionality and significant game related services we evaluate whether the license of our intellectual property and the game related services are distinct and separable. This evaluation is performed for each software product sold. If we determine that our software products contain a license of intellectual property separate from the game related services (i.e. multiple performance obligations), we estimate a standalone selling price for each identified performance obligation. We allocate the transaction price to each performance obligation using a relative standalone selling price method (the transaction price is allocated to a performance obligation based on the proportion of the standalone selling price of each performance obligation to the sum of the standalone selling prices for all performance obligations in the contract). For the portion of the transaction price allocable to the license, revenue is recognized when the customer takes control of the product. For the portion of the transaction price allocated to game related services, revenue is recognized ratably over an estimated service period for the related software product. We also defer related product costs and recognize the costs as the revenues are recognized. Certain of our full game software products are delivered primarily as an online gaming experience with substantially all gameplay requiring online access to our game related services. We recognize revenue for full game software products that are dependent on our game related services over an estimated service period. For our full game online software products, we also defer related product costs and recognize the costs as the revenue is recognized. In addition to sales of our full game software products, certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. Revenue from the sale of virtual currency and in-game purchases is deferred and recognized ratably over an estimated service period. We also sell separate downloadable add-on content to supplement our full game software products. Revenue from the sale of separate downloadable add-on content is evaluated for revenue recognition on the same basis as our full game software products. In addition to sales of our full game software products, we also offer free-to-play software products, both of which may provide customers with the option to acquire virtual currency or make in-game purchases. For virtual currency and in-game purchases the satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as follows: • Consumable: Consumable virtual items represent items that can be consumed by a specific player action. Consumable virtual items do not result in a direct benefit that the player keeps or provide the player any continuing benefit following consumption, and they often enable a player to perform an in-game action immediately. For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates less than one month. • Durable: Durable virtual items represent items that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual items ratably over the estimated service period for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item. Certain software products are sold to customers with a “street date” (the earliest date these products may be sold by these retailers). For the transaction price related to the license for these products that also provide a functional offline gaming experience, we recognize revenue on the later of the street date or the sale date as this is generally when we have transferred control of this performance obligation. For the sale of physical software products, recognition of revenue allocated to game related services does not begin until the product is sold-through by our customer to the end user. We currently estimate sell- through to the end user for all our titles to be approximately two months after we have sold-in the software products to retailers. Determining the estimated sell-through period requires management judgment and estimates. Our software products are sold as digital downloads. Revenue from digital downloads generally commences when the download is made available to the end user by a third-party digital storefront. In certain countries, we use third-party licensees to distribute and host our games in accordance with license agreements, for which the licensees typically pay us a fixed minimum guarantee and sales-based royalties. These arrangements typically include multiple performance obligations, such as an upfront license of intellectual property and rights to future updates. Based on the allocated transaction price, we recognize revenue associated with the minimum guarantee when we transfer control of the upfront license of intellectual property (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Royalty payments in excess of the minimum guarantee are generally recognized when the licensed product is sold by the licensee. Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers, and directly with advertisers to display advertisements in our games. For our in-game advertising arrangements, our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed. For in-game display advertisements, in-game offers, engagement advertisements, and other advertisements, our performance obligation is satisfied over the life of the contract, with revenue being recognized as advertising units are delivered. Contract Balances We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue when cash payments are received or due in advance of satisfying our performance obligations, even if amounts are refundable. Contract assets generally consist of arrangements for which we have recognized revenue to the extent it is probable that significant reversal will not occur but do not have a right to invoice as of the reporting date. Our allowances for doubtful accounts are typically immaterial and, if required, are based on our best estimate of expected credit losses inherent in our accounts receivable balance. Deferred revenue is comprised primarily of unsatisfied revenue related to the portion of the transaction price allocable to game related services of our full game software products, sales of virtual currency, and in-game purchases. These sales are typically invoiced at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue may also include amounts related to software products with future street dates. Refer to Note 2 - Revenue from Contracts with Customers for further information, including changes in deferred revenue during the period. Principal Agent Considerations We offer certain software products via third-party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve's Steam, Epic Games Store, Apple's App Store, and the Google Play Store. For sales of our software products via third-party digital storefronts, we determine whether or not we are acting as the principal in the sale to the end user, which we consider in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that we use in evaluating these sales transactions include, but are not limited to, the following: • the underlying contract terms and conditions between the various parties to the transaction; • which party is primarily responsible for fulfilling the promise to provide the specified good or service; and • which party has discretion in establishing the price for the specified good or service. Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve's Steam, and Epic Games Store we have determined we are not the principal in the sales transaction to the end user and therefore we report revenue based on the consideration received from the digital storefront. For sales arrangements via Apple's App Store and the Google Play Store, we have determined that we are the principal to the end user and thus report revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within Cost of revenue. Shipping and Handling Shipping and handling costs are incurred to move physical software products to customers. We recognize all shipping and handling costs as an expense in Cost of revenue because we are responsible for delivery of the product to our customers prior to transfer of control to the customer. Estimated Service Period For certain performance obligations satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which most faithfully depicts the timing of satisfying our performance obligation. We consider a variety of data points when determining and subsequently reassessing the estimated service period for players of our software products. Primarily, we review the weighted average number of days between players’ first day played online or first in-game purchase and last day played online. When a new game is launched and therefore no history of online player data is available, we consider other factors to determine the user life, such as the estimated service period of other games actively being sold with similar characteristics. We also consider known online trends, the service periods of our previously released software products, and, to the extent publicly available, the service periods of our competitors’ software products that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of our game related services to our customers, as it is the best representation of the period during which our customers play our software products. Determining the estimated service period is subjective and requires significant management judgment and estimates. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software products are generally between six Revenue Arrangements with Multiple Performance Obligations Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment. For software products in which the software license has offline functionality and benefits from meaningful game related services, which may include online functionality that is dependent on our online support services and/or additional free content updates, we believe we have separate performance obligations for the license of the intellectual property and the game related services. Additionally, because each of our product offerings has unique features and because we do not sell our game related services separately, we typically do not have observable standalone selling prices for each performance obligation. Significant judgment and estimates are also required to determine the standalone selling price for each distinct performance obligation and whether a discount needs to be allocated based on the relative standalone selling price of our products and services. To estimate the standalone selling price for each performance obligation, we consider, to the extent available, a variety of data points such as past selling prices of the product or other similar products, competitor pricing, and market data. If observable pricing is not available, we use an expected cost-plus margin approach taking into account relevant costs including product development, post-release support, marketing and licensing costs. This evaluation is performed on a product by product basis. Price Protection, Allowances for Returns, and Sales Incentives We grant price protection and accept returns in connection with our distribution arrangements. Following reductions in the price of our physical software products, we grant price protection to permit customers to take credits against amounts they owe us with respect to merchandise unsold by them. Our customers must satisfy certain conditions to entitle them to receive price protection or return products, including compliance with applicable payment terms and confirmation of field inventory levels. At contract inception and at each subsequent reporting period, we make estimates of price protection and product returns related to current period software product revenue. We estimate the amount of price protection and returns for software products based upon, among other factors, historical experience and performance of the titles in similar genres, historical performance of the hardware platform, customer inventory levels, analysis of sell-through rates, sales force and retail customer feedback, industry pricing, market conditions, and changes in demand and acceptance of our products by consumers. We enter into various sales incentive arrangements with our customers, such as rebates, discounts, and cooperative marketing. These incentives are considered adjustments to the transaction price of our software products and are reflected as reductions to revenue. Sales incentives incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are included in Selling and marketing expense if there is a separate identifiable benefit and the benefit’s fair value can be established. Otherwise, such sales incentives are reflected as a reduction to revenue. Revenue is recognized after deducting the estimated price protection, allowances for returns, and sales incentives, which are accounted for as variable consideration. Price protection, allowances for returns, and sales incentives are considered refund liabilities and are reported within Accrued expenses and other current liabilities on our Consolidated Balance Sheet. Significant Estimates Significant management judgment and estimates must be used in connection with certain of the determinations described above, such as estimating the fair value allocation to distinct and separable performance obligations, and the service period over which to defer recognition of revenue. We believe we can make reliable estimates. However, actual results may differ from initial estimates due to changes in circumstances, market conditions, and assumptions. Adjustments to estimates are recorded in the period in which they become known. Payment Terms Our payment terms and conditions vary by customer and typically provide net 30- to 60-day terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less. |
Marketing | Marketing |
Stock-based Compensation | Stock-based Compensation We have stock-based compensation plans that are broad-based long-term retention programs intended to attract and retain talented employees and align stockholder and employee interests, which allows for awards of restricted stock, restricted stock units and other stock-based awards of our common stock to employees and non-employees. Our plans include time-based, market-based, and performance-based awards of our common stock to employees and non-employees. In connection with the Zynga Acquisition, we assumed replacement equity awards, including restricted stock units and the outstanding and unexercised options to purchase Zynga common stock, and converted them into stock-based awards for shares of Take-Two common stock. Refer to Note 16 - Stock-Based Compensation . We account for stock-based awards under the fair value method of accounting. The fair value of all stock-based compensation is either capitalized and amortized in accordance with our software development cost accounting policy or recognized as expense on a straight-line basis over the full vesting period of the awards for time-based stock awards and on an accelerated attribution method for market-based and performance-based stock awards. We estimate the fair value of time-based and performance-based awards using our closing stock price on the date of grant. We estimate the fair value of market-based awards using a Monte Carlo Simulation method, which takes into account assumptions such as the expected volatility of our common stock, the risk-free interest rate based on the contractual term of the award, expected dividend yield, vesting schedule and the probability that the market conditions of the awards will be achieved. For performance-based shares, we do not record expense until the performance criteria are considered probable. We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: expected volatility of our common stock, which is based on our own calculated historical rate; expected life of the option award; expected dividend yield, which is 0%, as we have not paid and do not have any plans to pay dividends on our common stock; and the risk-free interest rate, which is based on the U.S. Treasury rate in effect at the time of grant with maturities commensurate to the stock option award’s expected life. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based compensation expense for future awards may differ materially compared to awards granted previously. We record stock-based compensation expense for stock options based on the grant date fair value on a straight-line basis over the requisite service period of the award. Stock-based compensation expense is recorded net of forfeitures as they occur. |
Earnings (loss) per Share ("EPS") | Earnings (loss) per Share ("EPS") Basic EPS is computed by dividing the net (loss) income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. Diluted EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents are measured using the treasury stock method and represent unvested stock-based awards. |
Foreign Currency | Foreign Currency The functional currency for our foreign operations is primarily the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using exchange rates for assets and liabilities at the balance sheet date and average prevailing exchange rates for the period for revenue and expense accounts. Adjustments resulting from translation are included in Accumulated other comprehensive loss. Realized and unrealized transaction gains and losses are included in our Consolidated Statements of Operations in the period in which they occur. |
Comprehensive (Loss) Income | Comprehensive (Loss) Income Comprehensive (loss) income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss includes foreign currency translation adjustments, which relate to investments that are permanent in nature and therefore do not require tax adjustments, and the amounts for unrealized gains (losses), net on derivative instruments designated as cash flow hedges, as well as any associated tax impact, and available for sale securities. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 (April 1, 2025 for the Company). The amendments in this ASU are required to be applied on a prospective basis and retrospective adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures. Segment Reporting Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 (April 1, 2024 for the Company). The amendments in this ASU must be applied on a retrospective basis to all prior periods presented in the financial statements. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Over time $ 4,312.2 $ 4,208.0 $ 2,214.8 Point in time 1,037.4 1,141.9 1,290.0 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Recurrent consumer spending $ 4,213.5 $ 4,180.4 $ 2,271.2 Full game and other 1,136.1 1,169.5 1,233.6 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Net revenue by platform was as follows: Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Mobile $ 2,748.0 $ 2,538.6 $ 403.4 Console 2,167.3 2,303.8 2,528.9 PC and other 434.3 507.5 572.5 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: Digital online $ 5,112.2 $ 5,085.7 $ 3,149.0 Physical retail and other 237.4 264.2 355.8 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 |
Schedule of Net Revenue by Geographic Region | Fiscal Year Ended March 31, 2024 2023 2022 Net revenue recognized: United States $ 3,279.2 $ 3,360.0 $ 2,100.2 International 2,070.4 1,989.9 1,404.6 Total net revenue $ 5,349.6 $ 5,349.9 $ 3,504.8 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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. March 31, 2024 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Assets: Cash and cash equivalents: Money market funds $ 177.5 $ — $ — $ 177.5 Bank-time deposits 64.8 — — 64.8 Short-term investments: Bank-time deposits 22.0 — — 22.0 Restricted cash and cash equivalents: Money market funds 238.3 — — 238.3 Bank-time deposits 0.5 — — 0.5 Restricted cash and cash equivalents, long term: Money market funds 95.9 — — 95.9 Other assets: Private equity — — 26.8 26.8 Total financial assets $ 599.0 $ — $ 26.8 $ 625.8 Liabilities: Accrued expenses and other current liabilities: Contingent earn-out consideration $ — $ — $ 12.4 $ 12.4 Other-long term liabilities: Contingent earn-out consideration — — 0.7 0.7 Short-term debt, net: Convertible notes — 24.6 — 24.6 Long-term debt, net: Convertible notes — 25.9 — 25.9 Total financial liabilities $ — $ 50.5 $ 13.1 $ 63.6 March 31, 2023 Quoted prices in active markets for identical assets (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Assets Cash and cash equivalents: Bank-time deposits $ 368.0 $ — $ — $ 368.0 Money market funds 145.8 — — 145.8 Short-term investments: Corporate bonds — 145.2 — 145.2 Bank-time deposits 41.8 — — 41.8 Restricted cash and cash equivalents: Money market funds 306.1 — — 306.1 Bank-time deposits 0.5 — — 0.5 Restricted cash and cash equivalents, long term: Money market funds 99.6 — — 99.6 Other assets: Private equity — — 26.5 26.5 Total financial assets $ 961.8 $ 145.2 $ 26.5 $ 1,133.5 Liabilities Accrued expenses and other current liabilities: Foreign currency forward contracts $ — $ 2.5 $ — $ 2.5 Contingent earn-out consideration — — 66.6 66.6 Other long-term liabilities: Contingent earn-out consideration — — 27.3 27.3 Long-term debt, net: Convertible notes — 44.1 — 44.1 Total financial liabilities $ — $ 46.6 $ 93.9 $ 140.5 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term Investments | Our short-term investments consisted of the following as of March 31, 2024: March 31, 2024 Cost or Gross Unrealized Gains Losses Fair Value Short-term investments Bank time deposits $ 22.0 $ — $ — $ 22.0 Total Short-term investments $ 22.0 $ — $ — $ 22.0 March 31, 2023 Cost or Gross Unrealized Gains Losses Fair Value Short-term investments Bank time deposits $ 41.8 $ — $ — $ 41.8 Available-for-sale securities: Corporate bonds 147.2 — (2.0) 145.2 Total Short-term investments $ 189.0 $ — $ (2.0) $ 187.0 |
Schedule of the Contracted Maturities of Short-Term Investments | The following table summarizes the contracted maturities of our short-term investments at March 31, 2024: March 31, 2024 Amortized Cost Fair Value Short-term investments Due in 1 year or less $ 22.0 $ 22.0 Total Short-term investments $ 22.0 $ 22.0 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gross Notional Amounts of Foreign Currency Forward Contracts | March 31, 2024 2023 Forward contracts to sell foreign currencies $ 243.0 $ 224.3 Forward contracts to purchase foreign currencies 72.2 51.2 |
SOFTWARE DEVELOPMENT COSTS AN_2
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
SOFTWARE DEVELOPMENT COSTS AND LICENSES | |
Schedule of Capitalized Software Development Costs and Licenses | Details of our capitalized software development costs and licenses are as follows: March 31, 2024 2023 Current Non-current Current Non-current Software development costs, internally developed $ 53.4 $ 1,237.0 $ 47.4 $ 882.0 Software development costs, externally developed 6.1 198.5 2.2 169.7 Licenses 28.8 11.0 16.3 20.5 Software development costs and licenses $ 88.3 $ 1,446.5 $ 65.9 $ 1,072.2 |
Schedule of Amortization and Impairment of Software Development Costs and Licenses | Amortization and impairment of software development costs and licenses are as follows: Fiscal Year Ended March 31, 2024 2023 2022 Amortization of software development costs and licenses $ 207.2 $ 179.7 $ 131.1 Impairment of software development costs and licenses 109.9 79.1 70.6 Portion representing stock-based compensation (24.4) 9.5 (48.4) Amortization and impairment, net of stock-based compensation $ 292.7 $ 268.3 $ 153.3 |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Asset Balances by Category | Fixed asset balances by category are as follows: March 31, 2024 2023 Computer equipment $ 298.2 $ 266.9 Leasehold improvements 270.6 235.1 Computer software 89.0 102.0 Buildings 63.7 62.1 Furniture and fixtures 35.5 35.2 Office equipment 20.6 16.4 Total $ 777.6 $ 717.7 Less: accumulated depreciation (366.5) (314.9) Fixed assets, net $ 411.1 $ 402.8 The following represents our fixed assets, net by location: March 31, 2024 2023 United States $ 242.6 $ 234.1 International 168.5 168.7 Fixed assets, net $ 411.1 $ 402.8 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Goodwill Balance | The change in our goodwill balance is as follows: Total Balance at March 31, 2022 $ 674.6 Acquisition of Zynga ( see Note 20 ) 5,994.4 Acquisition of Popcore ( see Note 20 ) 72.1 Additions from immaterial acquisitions 26.5 Currency translation adjustment (0.5) Balance at March 31, 2023 $ 6,767.1 Impairment (2,342.1) Additions from immaterial acquisitions 9.7 Currency translation adjustment (8.3) Balance at March 31, 2024 $ 4,426.4 |
Schedule of Intangible Assets Subject to Amortization | The following table sets forth the intangible assets that are subject to amortization: March 31, 2024 2023 Gross Accumulated Net Book Gross Accumulated Net Book Weighted average useful life Developed Game Technology $ 3,788.8 $ (1,301.4) $ 2,487.4 $ 4,434.5 $ (744.0) $ 3,690.5 7 years Branding and Trade Names 395.1 (68.5) 326.6 395.2 (33.1) 362.1 12 years Game Engine Technology 322.5 (147.3) 175.2 323.2 (73.5) 249.7 4 years User Base 319.2 (319.2) — 319.2 (274.4) 44.8 0 years Developer Relationships 57.0 (26.5) 30.5 57.0 (12.2) 44.8 5 years Advertising Technology 43.0 (26.6) 16.4 43.0 (12.3) 30.7 3 years Customer Relationships 31.0 (11.5) 19.5 31.0 (5.3) 25.7 5 years Intellectual Property 27.5 (23.1) 4.4 22.3 (18.2) 4.1 6 years In Place Lease 2.0 (1.4) 0.6 1.9 (1.1) 0.8 4 years Analytics Technology 30.1 (30.1) — 30.1 (30.1) — 0 years Total intangible assets $ 5,016.2 $ (1,955.6) $ 3,060.6 $ 5,657.4 $ (1,204.2) $ 4,453.2 |
Schedule of Amortization of Intangible Assets | Amortization of intangible assets, including impairments, is included in our Consolidated Statements of Operations as follows: Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 1,303.5 $ 1,171.5 $ 52.0 Selling and marketing 51.0 277.1 5.3 Research and development 28.7 24.6 5.5 Depreciation and amortization 35.7 33.5 2.0 Total amortization of intangible assets $ 1,418.9 $ 1,506.7 $ 64.8 |
Schedule of Estimated Future Amortization of Intangible Assets | Estimated future amortization of intangible assets that will be recorded in Cost of revenue and operating expenses for the years ending March 31, are as follows: Fiscal Year Ended March 31, Amortization 2025 $ 706.4 2026 681.6 2027 620.1 2028 579.5 2029 234.7 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Liabilities, Current [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of: March 31, 2024 2023 Software development royalties $ 413.1 $ 510.7 Compensation and benefits 227.3 177.5 Marketing and promotions 94.5 132.7 Licenses 64.4 63.0 Refund liability 34.5 52.4 Tax payable 32.4 33.0 Interest payable 29.4 29.6 Sales tax liability 19.3 14.0 Deferred acquisition payments 17.6 82.7 Professional fees 16.7 9.5 Other 113.4 120.7 Accrued expenses and other current liabilities $ 1,062.6 $ 1,225.7 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The components of Long-term debt, net on our Consolidated Balance Sheet were as follows: Annual Interest Rate Maturity Date March 31, 2024 Fair Value (Level 2) 2025 Notes 3.55% April 14, 2025 $ 600.0 $ 588.9 2026 Notes 5.00% March 28, 2026 550.0 547.6 2027 Notes 3.70% April 14, 2027 600.0 576.5 2028 Notes 4.95% March 28, 2028 800.0 797.8 2032 Notes 4.00% April 14, 2032 500.0 462.9 2026 Convertible Notes 0.00% December 15, 2026 25.9 25.9 Total $ 3,075.9 $ 2,999.6 Unamortized discount and issuance costs (17.6) Long-term debt, net $ 3,058.3 Annual Interest Rate Maturity Date March 31, 2023 Fair Value (Level 2) 2025 Notes 3.55% April 14, 2025 $ 600.0 $ 583.8 2027 Notes 3.70% April 14, 2027 600.0 580.9 2032 Notes 4.00% April 14, 2032 500.0 460.6 2024 Convertible Notes 0.25% June 1, 2024 20.8 20.8 2026 Convertible Notes 0.00% December 15, 2026 23.3 23.3 Total $ 1,744.1 $ 1,669.4 Unamortized discount and issuance costs (11.1) Long-term debt, net $ 1,733.0 |
Schedule of Short-Term Debt | The components of Short-term debt, net on our Consolidated Balance Sheet were as follows: Annual Interest Rate Maturity Date March 31, 2024 Fair Value (Level 2) 2024 Convertible Notes 0.25% June 1, 2024 $ 24.6 $ 24.6 Total $ 24.6 $ 24.6 Unamortized discount and issuance costs — Short-term debt, net $ 24.6 Annual Interest Rate Maturity Date March 31, 2023 Fair Value (Level 2) 2024 Notes 3.30% March 28, 2024 $ 1,000.0 $ 978.2 Term Loan 3.60% June 21, 2023 350.0 350.0 Total $ 1,350.0 $ 1,328.2 Unamortized discount and issuance costs (3.2) Short-term debt, net $ 1,346.8 |
Schedule of Debt | The interest expense as it relates to our debt is recorded within Interest and other, net in our Consolidated Statements of Operations for the fiscal year ended March 31, 2024, and 2023, respectively, and was as follows: Fiscal Year Ended March 31, Fiscal Year Ended 2024 2023 2024 Notes $ 15.1 $ 31.5 2025 Notes 21.3 20.5 2026 Notes 24.7 — 2027 Notes 22.2 21.4 2028 Notes 27.2 — 2032 Notes 20.0 19.2 Term Loan 1.5 11.9 2022 Credit Agreement — 4.1 Total $ 132.0 $ 108.6 |
Schedule Of Maturities Of Debt | The following table outlines the aggregate amount of maturities of our borrowings, as of March 31, 2024: Fiscal Year Ended March 31, Maturities 2025 21.4 2026 1,150.0 2027 29.4 2028 1,400.0 2029 — Thereafter 500.0 Total 3,100.8 Fair Value Adjustments (0.3) Total Face Value $ 3,100.5 |
Schedule of Information Related to Availability on Credit Agreement | Information related to availability on our respective credit agreements for each period was as follows: March 31, 2024 March 31, 2023 Available borrowings $ 497.7 $ 499.5 Outstanding letters of credit 2.3 2.8 |
(LOSS) EARNINGS PER SHARE ("E_2
(LOSS) EARNINGS PER SHARE ("EPS") (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS | The following table sets forth the computation of basic and diluted (loss) earnings per share: Fiscal Year Ended March 31, 2024 2023 2022 Computation of Basic (loss) earnings per share: Net (loss) income $ (3,744.2) $ (1,124.7) $ 418.0 Weighted average common shares outstanding—basic 170.1 159.9 115.5 Basic (loss) earnings per share (22.01) (7.03) 3.62 Computation of Diluted (loss) earnings per share: Net (loss) income $ (3,744.2) $ (1,124.7) $ 418.0 Weighted average common shares outstanding—basic 170.1 159.9 115.5 Add: dilutive effect of common stock equivalents — — 1.3 Weighted average common shares outstanding—diluted 170.1 159.9 116.8 Diluted (loss) earnings per share $ (22.01) $ (7.03) $ 3.58 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease Costs and Supplemental Information | Information related to our operating leases are as follows: Fiscal Year Ended March 31, 2024 2023 2022 Lease costs Operating lease costs $ 80.5 $ 109.8 $ 46.3 Short-term lease costs 4.9 4.1 1.4 Fiscal Year Ended March 31, 2024 2023 2022 Supplemental operating cash flow information Cash paid for amounts included in the measurement of lease liabilities $ 73.9 $ 55.9 $ 32.8 ROU assets obtained in exchange for lease obligations 89.5 145.3 74.0 Fiscal Year Ended March 31, 2024 2023 2022 Weighted average information Remaining lease term 8.40 years 8.93 years 10.09 years Discount rate 4.56 % 4.33 % 4.29 % |
Schedule of Operating Lease Liability Maturities | Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at March 31, 2024, are as follows: For the years ending March 31, 2025 $ 83.9 2026 69.2 2027 67.2 2028 63.6 2029 60.4 Thereafter 199.6 Total future lease payments $ 543.9 Less imputed interest (92.8) Total lease liabilities $ 451.1 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Annual Minimum Contractual Obligations | A summary of annual minimum contractual obligations and commitments as of March 31, 2024 is as follows: Fiscal Year Ending March 31, Software Marketing Purchase Total 2025 $ 333.0 $ 32.4 $ 146.3 $ 511.7 2026 133.3 74.5 67.7 275.5 2027 33.3 28.2 12.6 74.1 2028 8.5 6.3 0.3 15.1 2029 13.8 6.5 — 20.3 Thereafter 1.0 6.5 — 7.5 Total $ 522.9 $ 154.4 $ 226.9 $ 904.2 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of (Loss) Income from Continuing Operations Before Income Taxes | Components of (Loss) income before income taxes are as follows: Fiscal Year Ended March 31, 2024 2023 2022 Domestic $ (2,081.8) $ (937.0) $ 357.5 Foreign (1,621.0) (401.1) 107.9 (Loss) income before income taxes $ (3,702.8) $ (1,338.1) $ 465.4 |
Schedule of Provision for Current and Deferred Income Taxes | Provision for (benefit from) current and deferred income taxes consists of the following: Fiscal Year Ended March 31, 2024 2023 2022 Current: U.S. federal $ 23.0 $ 70.2 $ 12.0 U.S. state and local 12.4 3.3 (0.6) Foreign 107.5 98.0 24.1 Total current income taxes 142.9 171.5 35.5 Deferred: U.S. federal 24.6 (175.4) 34.8 U.S. state and local (22.6) (31.4) 2.9 Foreign (103.5) (178.1) (25.8) Total deferred income taxes (101.5) (384.9) 11.9 Provision for (benefit from) income taxes $ 41.4 $ (213.4) $ 47.4 |
Schedule of Reconciliation of Effective Tax Rate to the U.S. Statutory Federal Income Tax Rate | A reconciliation of our effective tax rate to the U.S. statutory federal income tax rate is as follows: Fiscal Year Ended March 31, 2024 2023 2022 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State and local taxes, net of U.S. federal benefit 0.6 % 2.0 % 1.2 % Foreign tax rate differential (1) 0.2 % (0.3) % (1.8) % Foreign earnings (2) (1.5) % (1.3) % (2.3) % Tax credits (3) 1.7 % 5.7 % (6.6) % Excess tax benefits from stock-based compensation (0.1) % (0.5) % (3.1) % Earn-out adjustments 0.1 % (0.4) % 2.2 % Valuation allowance—domestic (4) (9.1) % (6.3) % (0.1) % Valuation allowance—foreign (4) (1.1) % (0.1) % 0.4 % Nondeductible compensation (0.1) % (0.9) % 0.4 % Global intangible low-taxed income (1.0) % (3.1) % 0.1 % Foreign-derived intangible income 0.5 % 1.8 % (0.9) % Change in reserves 0.9 % (0.1) % (0.9) % Goodwill impairment (12.8) % — % — % Other (5) (0.4) % (1.6) % 0.6 % Effective tax rate (1.1) % 15.9 % 10.2 % (1) The foreign rate differentials in relation to foreign earnings, for all periods presented, are primarily driven by changes in the mix of our foreign earnings and the difference between the foreign and U.S. income tax rates. (2) Fiscal year ended March 31, 2024 include tax expense of $29.2 from a decrease in the deferred tax assets related to Switzerland's Federal Act on Tax Reform and AVH Financing ("TRAF") enacted on January 1, 2020. Fiscal years ended March 31, 2023, and March 31, 2022, include tax benefit of $5.6 and $11.6, respectively, from the effects of an increase in the deferred tax asset. (3) Tax benefits were recorded for fiscal years ended March 31, 2024, 2023, and 2022 attributable to certain tax credits related to software development activities. (4) The change in domestic and foreign valuation allowance includes an increase in our valuation allowance on deferred tax assets as a result of a determination in the fiscal year ended March 31, 2024 that it was more likely than not that such deferred tax assets would not be realized. (5) For the fiscal year ended March 31, 2023, includes nondeductible expense of $8.2 relating to loss on the redemption of convertible debt |
Schedule of Effects of Temporary Differences that Gave Rise to Deferred Tax Assets and Liabilities | The effects of temporary differences that gave rise to our deferred tax assets and liabilities were as follows: March 31, 2024 2023 Deferred tax assets: Capitalized development costs, software and depreciation $ 365.1 $ 157.8 Tax credit carryforward 174.4 159.5 Equity-based compensation 143.0 109.8 Tax basis step up related to TRAF 131.1 79.1 Operating lease liabilities 101.9 90.6 Accrued compensation expense 72.6 96.6 Net operating loss carryforward 63.2 50.3 Other 2.7 26.0 Total deferred tax assets 1,054.0 769.7 Less: Valuation allowance (799.1) (338.2) Net deferred tax assets $ 254.9 $ 431.5 Deferred tax liabilities: Intangible amortization $ (513.2) $ (841.0) Right-of-use assets (75.7) (64.7) Deferred revenue (5.0) (15.0) Total deferred tax liabilities (593.9) (920.7) Net deferred tax liability (1) $ (339.0) $ (489.2) (1) As of March 31, 2024, $1.9 is included in Deferred tax assets and $340.9 is included in Deferred tax liabilities, net. As of March 31, 2023 , $44.8 is included in Deferred tax assets and $534.0 is included in Deferred tax liabilities, net. |
Schedule of Aggregate Changes to the Liability for Gross Uncertain Tax Positions, Excluding Interest and Penalties | The aggregate changes to the liability for gross uncertain tax positions, excluding interest and penalties, were as follows: Fiscal Year Ended March 31, 2024 2023 2022 Balance, beginning of period $ 274.7 $ 164.8 $ 158.3 Additions: Current year tax positions 41.4 26.5 10.3 Prior year tax positions (1) 2.3 109.7 4.2 Reduction of prior year tax positions — (26.3) — Lapse of statute of limitations (76.2) — (8.0) Other 0.6 — — Balance, end of period $ 242.8 $ 274.7 $ 164.8 (1) For the fiscal year ended March 31, 2023, the increase in prior year tax positions of $109.7 related to purchase accounting for the Zynga acquisition. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expenses | The following table summarizes stock-based compensation expense included in our Consolidated Statements of Operations: Fiscal Year Ended March 31, 2024 2023 2022 Cost of revenue $ 24.4 $ (9.5) $ 48.4 Selling and marketing 95.3 95.2 30.0 General and administrative 111.5 115.5 66.5 Research and development 104.4 116.6 38.1 Stock-based compensation expense before income taxes 335.6 317.8 183.0 Provision for (benefit from) income taxes (12.2) (45.8) (35.4) Stock-based compensation expense, net of income tax benefit 323.4 272.0 147.6 Capitalized stock-based compensation expense $ 85.4 $ 74.4 $ 82.1 |
Schedule of Restricted Stock Awarded Activity to Zelnickmedia | In connection with the 2022 Management Agreement and the 2017 Management Agreement, we granted restricted stock units (in thousands) to ZMC (see Note 3 - Management Agreement ) as follows: Fiscal Year Ended March 31, 2024 2023 Time-based 97 192 Market-based (1) 295 510 Performance-based (1) IP — 18 Recurrent Consumer Spending ("RCS") 98 153 Total Performance-based 98 171 Total Restricted Stock Units 490 873 (1) Represents the maximum number of shares eligible to vest. |
Schedule of Activity in Non-Vested Restricted Stock Awards to Employees and Zelnickmedia | The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with time-based restricted stock awards presented at 100% of target number of shares that may potentially vest: Shares Weighted Non-vested restricted stock units at March 31, 2023 5.1 $ 126.34 Granted 1.6 138.21 Vested (1.9) 130.24 Forfeited (0.4) 123.03 Non-vested restricted stock units at March 31, 2024 4.4 $ 129.33 Shares Weighted Non-vested restricted stock units at March 31, 2023 0.7 $ 183.72 Granted 0.5 195.03 Vested (0.2) 276.07 Forfeited (0.1) 218.49 Non-vested restricted stock units at March 31, 2024 0.9 $ 172.66 The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with performance restricted stock awards presented at 100% of target number of shares that may potentially vest: Shares Weighted Non-vested restricted stock units at March 31, 2023 3.9 $ 113.28 Granted 0.2 141.90 Vested (0.1) 166.02 Forfeited (0.1) 151.67 Non-vested restricted stock units at March 31, 2024 3.9 $ 113.58 |
Schedule of Weighted-Average Assumptions Used to Value Outstanding Market-Based Restricted Shares | The following table summarizes the weighted-average assumptions used in the Monte Carlo Simulation to estimate the fair value of market-based awards: Fiscal Year Ended March 31, 2024 2023 2022 Employee Non-Employee Employee Non-Employee Employee Non-Employee Risk-free interest rate 4.0% 4.0% 2.6-2.8% 2.4-2.8% 0.1 % 0.2 % Expected stock price volatility 36.6% 36.6% 35.9-37.6% 34.2-37.6% 37.3 % 36.3 % Expected service period (years) 2.8 2.8 1.8-2.8 1.8-2.8 1.5 1.0 Dividends None None None None None None |
Schedule of Share-Based Payment Arrangement, Option, Activity | The following table shows stock option activity for the fiscal year ended March 31, 2024: Shares Weighted Aggregate Intrinsic Value of Stock Options Outstanding Weighted Average Contractual Term (In Years) Balance as of March 31, 2023 0.7 $ 49.54 $ 46.51 4.53 Granted — — Vested (0.1) 38.68 Forfeited — 34.68 Balance as of March 31, 2024 0.6 $ 50.50 $ 61.85 3.45 As of March 31, 2024 Exercisable options 0.6 $ 50.02 $ 61.72 3.45 Vested and expected to vest — $ 44.59 $ 0.13 6.51 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The following table presents the weighted-average grant date fair value and related assumptions used to estimate the fair value of our stock options converted during the fiscal year ended March 31, 2023. We had no stock options converted or granted in the fiscal year ended March 31, 2024: Fiscal Year Ended March 31, 2023 Risk-free interest rate 0.6-2.8% Expected stock price volatility 36.0-46.5% Expected service period (years) 0.1-5.1 Dividends None |
Schedule of Fair Value Measurement and Valuation Techniques | The following table summarizes the assumptions used in the Black-Scholes valuation model to value our purchase rights: Fiscal Year Ended March 31, 2024 2023 Risk-free interest rate 5.14-5.51% 1.4-4.6% Expected stock price volatility 26.3-39.1% 27.7% Expected service period (years) 0.5 0.5 Dividends None None |
INTEREST AND OTHER, NET (Tables
INTEREST AND OTHER, NET (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest and Other, Net | Fiscal Year Ended March 31, 2024 2023 2022 Interest income $ 62.3 $ 33.8 $ 17.6 Interest expense (140.6) (129.6) (18.6) Foreign currency exchange gain (loss) (28.6) (31.8) (7.3) Other 3.3 (14.3) (5.9) Interest and other, net $ (103.6) $ (141.9) $ (14.2) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive (Loss) Income | The following table provides the components of Accumulated other comprehensive loss: Foreign currency Unrealized gain Total Balance at March 31, 2022 $ (52.8) $ (4.5) $ (57.3) Other comprehensive income (loss) before reclassifications (58.9) 2.9 (56.0) Balance at March 31, 2023 $ (111.7) $ (1.6) $ (113.3) Other comprehensive income (loss) before reclassifications 6.7 1.5 8.2 Balance at March 31, 2024 $ (105.0) $ (0.1) $ (105.1) |
SUPPLEMENTARY FINANCIAL INFOR_2
SUPPLEMENTARY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Details of Valuation and Qualifying Accounts | The following table provides details of our valuation and qualifying accounts: Beginning Additions Deductions Other Ending Fiscal Year Ended March 31, 2024 Valuation allowance for deferred income taxes $ 338.2 488.0 (27.1) — $ 799.1 Fiscal Year Ended March 31, 2023 Valuation allowance for deferred income taxes $ 121.9 218.5 (2.2) — $ 338.2 Fiscal Year Ended March 31, 2022 Valuation allowance for deferred income taxes $ 95.7 27.9 (1.7) — $ 121.9 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The acquisition-date fair value of the consideration totaled $9,521.8, which consisted of the following: Fair value of purchase consideration Cash $ 3,992.4 Common stock (46.3 shares) 5,377.7 Replacement equity awards 151.7 Total $ 9,521.8 The acquisition-date fair value of the consideration totaled $198.0, which consisted of the following: Fair value of purchase consideration Cash $ 116.9 Common stock (0.6 shares) 57.8 Contingent earn-out 23.3 Total $ 198.0 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the acquisition date fair value of net tangible and intangible assets acquired, net of liabilities assumed from Zynga: Fair Value Weighted average useful life Cash acquired $ 864.9 N/A Accounts receivable 271.2 N/A Prepaid expenses and other 194.4 N/A Fixed assets 54.3 N/A Right-of-use assets 92.7 N/A Other tangible assets 67.1 N/A Accounts payable (78.5) N/A Accrued expenses and other current liabilities (352.8) N/A Deferred revenue (333.1) N/A Lease liabilities (15.7) N/A Long-term debt (1,653.1) N/A Non-current lease liabilities (131.6) N/A Deferred tax liabilities, net (922.9) N/A Other liabilities assumed (61.5) N/A Intangible assets Developed game technology 4,440.0 7 Branding and trade names 384.0 12 Game engine technology 261.0 4 User base 316.0 1 Developer relationships 57.0 4 Advertising technology 43.0 3 Customer relationships 31.0 5 Goodwill 5,994.4 N/A Total $ 9,521.8 Fair Value Weighted average useful life Cash acquired $ 37.1 N/A Other tangible assets 22.4 N/A Other liabilities assumed (81.2) N/A Intangible assets Developed game technology 113.0 5 Game engine technology 27.7 7 Branding and trade names 3.4 4 Goodwill 75.6 N/A Total $ 198.0 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 USD ($) segment unit | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Goodwill [Line Items] | |||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Number of reporting units | unit | 2 | ||
Goodwill impairment | $ 2,342.1 | $ 0 | $ 0 |
Estimated service period minimum | 6 months | ||
Estimated service period maximum | 15 months | ||
Advertising expense | $ 1,132.4 | $ 1,212.5 | $ 297.3 |
Expected dividend yield | 0% | ||
One Reporting Unit | |||
Goodwill [Line Items] | |||
Number of reporting units | unit | 1 | ||
Goodwill gross | $ 4,131.1 | ||
Office equipment | |||
Goodwill [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Leasehold improvements | |||
Goodwill [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Buildings | |||
Goodwill [Line Items] | |||
Property, plant and equipment, useful life | 30 years | ||
Minimum | Computer equipment | |||
Goodwill [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum | Software products | |||
Goodwill [Line Items] | |||
Weighted average useful life | 12 months | ||
Maximum | Computer equipment | |||
Goodwill [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Maximum | Software products | |||
Goodwill [Line Items] | |||
Weighted average useful life | 30 months | ||
Five largest customers | Net revenue | Customer concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 79.80% | 79.60% | 79% |
Five largest customers | Gross accounts receivable | Credit concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 69.90% | 61.10% | |
One Customer | Net revenue | Customer concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 23.20% | 23.50% | 38% |
One Customer | Gross accounts receivable | Credit concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 21.80% | 21.60% | |
Second Customer | Net revenue | Customer concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 21.10% | 20.70% | 22% |
Second Customer | Gross accounts receivable | Credit concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 18.10% | 14.50% | |
Customers individually accounting for more than 10% | Gross accounts receivable | Credit concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 57.70% | 50.30% | |
Third Customer | Gross accounts receivable | Credit concentration risk | |||
Goodwill [Line Items] | |||
Concentration risk rate | 16.90% | 14.20% |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregated Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from External Customer [Line Items] | |||
Total net revenue | $ 5,349.6 | $ 5,349.9 | $ 3,504.8 |
Recurrent consumer spending | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 4,213.5 | 4,180.4 | 2,271.2 |
Full game and other | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 1,136.1 | 1,169.5 | 1,233.6 |
Mobile | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 2,748 | 2,538.6 | 403.4 |
Console | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 2,167.3 | 2,303.8 | 2,528.9 |
PC and other | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 434.3 | 507.5 | 572.5 |
Digital online | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 5,112.2 | 5,085.7 | 3,149 |
Physical retail and other | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 237.4 | 264.2 | 355.8 |
Over time | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 4,312.2 | 4,208 | 2,214.8 |
Point in time | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | $ 1,037.4 | $ 1,141.9 | $ 1,290 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Geographical (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 5,349.6 | $ 5,349.9 | $ 3,504.8 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 3,279.2 | 3,360 | 2,100.2 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 2,070.4 | $ 1,989.9 | $ 1,404.6 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with liability | $ 1,102.4 | $ 1,114.3 |
Contract with liability recognized | 1,065.1 | |
Remaining obligation | 1,238.7 | |
Contract asset | 85 | $ 79.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining obligation | $ 1,152 | |
Remaining obligation period | 12 months |
MANAGEMENT AGREEMENT (Details)
MANAGEMENT AGREEMENT (Details) - Zelnick Media Corporation - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
May 31, 2022 | Nov. 30, 2017 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Consulting expense (benefit) | $ 6.5 | $ 3.5 | $ 9.9 | ||
2017 Management Agreement | |||||
Related Party Transaction [Line Items] | |||||
Annual management fee | $ 3.3 | $ 3.1 | |||
Stock-based compensation expense for non-employee awards | $ 52.8 | $ 47.1 | $ 29.2 | ||
2017 Management Agreement | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Annual management fee | $ 7.4 | ||||
Bonus per fiscal year based on the achievement of certain performance thresholds | $ 13.2 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Assets: | ||
Short-term investments | $ 22 | $ 187 |
Total financial assets | 625.8 | 1,133.5 |
Liabilities: | ||
Contingent earn-out consideration | 12.4 | 66.6 |
Contingent earn-out consideration | 0.7 | 27.3 |
Convertible notes | 24.6 | |
Convertible notes | 25.9 | 44.1 |
Total financial liabilities | 63.6 | 140.5 |
Money market funds | ||
Assets: | ||
Cash and cash equivalents | 177.5 | 145.8 |
Restricted cash and cash equivalents | 238.3 | 306.1 |
Restricted cash and cash equivalents, long term | 95.9 | 99.6 |
Bank-time deposits | ||
Assets: | ||
Cash and cash equivalents | 64.8 | 368 |
Short-term investments | 22 | 41.8 |
Restricted cash and cash equivalents | 0.5 | 0.5 |
Corporate bonds | ||
Assets: | ||
Short-term investments | 145.2 | |
Private equity | ||
Assets: | ||
Private equity | 26.8 | 26.5 |
Foreign currency forward contracts | ||
Liabilities: | ||
Foreign currency forward contracts | 2.5 | |
Quoted prices in active markets for identical assets (level 1) | ||
Assets: | ||
Total financial assets | 599 | 961.8 |
Liabilities: | ||
Contingent earn-out consideration | 0 | 0 |
Contingent earn-out consideration | 0 | 0 |
Convertible notes | 0 | |
Convertible notes | 0 | 0 |
Total financial liabilities | 0 | 0 |
Quoted prices in active markets for identical assets (level 1) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 177.5 | 145.8 |
Restricted cash and cash equivalents | 238.3 | 306.1 |
Restricted cash and cash equivalents, long term | 95.9 | 99.6 |
Quoted prices in active markets for identical assets (level 1) | Bank-time deposits | ||
Assets: | ||
Cash and cash equivalents | 64.8 | 368 |
Short-term investments | 22 | 41.8 |
Restricted cash and cash equivalents | 0.5 | 0.5 |
Quoted prices in active markets for identical assets (level 1) | Corporate bonds | ||
Assets: | ||
Short-term investments | 0 | |
Quoted prices in active markets for identical assets (level 1) | Private equity | ||
Assets: | ||
Private equity | 0 | 0 |
Quoted prices in active markets for identical assets (level 1) | Foreign currency forward contracts | ||
Liabilities: | ||
Foreign currency forward contracts | 0 | |
Significant other observable inputs (level 2) | ||
Assets: | ||
Total financial assets | 0 | 145.2 |
Liabilities: | ||
Contingent earn-out consideration | 0 | 0 |
Contingent earn-out consideration | 0 | 0 |
Convertible notes | 24.6 | |
Convertible notes | 25.9 | 44.1 |
Total financial liabilities | 50.5 | 46.6 |
Significant other observable inputs (level 2) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents, long term | 0 | 0 |
Significant other observable inputs (level 2) | Bank-time deposits | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Significant other observable inputs (level 2) | Corporate bonds | ||
Assets: | ||
Short-term investments | 145.2 | |
Significant other observable inputs (level 2) | Private equity | ||
Assets: | ||
Private equity | 0 | 0 |
Significant other observable inputs (level 2) | Foreign currency forward contracts | ||
Liabilities: | ||
Foreign currency forward contracts | 2.5 | |
Significant unobservable inputs (level 3) | ||
Assets: | ||
Total financial assets | 26.8 | 26.5 |
Liabilities: | ||
Contingent earn-out consideration | 12.4 | 66.6 |
Contingent earn-out consideration | 0.7 | 27.3 |
Convertible notes | 0 | |
Convertible notes | 0 | 0 |
Total financial liabilities | 13.1 | 93.9 |
Significant unobservable inputs (level 3) | Money market funds | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents, long term | 0 | 0 |
Significant unobservable inputs (level 3) | Bank-time deposits | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Significant unobservable inputs (level 3) | Corporate bonds | ||
Assets: | ||
Short-term investments | 0 | |
Significant unobservable inputs (level 3) | Private equity | ||
Assets: | ||
Private equity | $ 26.8 | 26.5 |
Significant unobservable inputs (level 3) | Foreign currency forward contracts | ||
Liabilities: | ||
Foreign currency forward contracts | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Nov. 16, 2022 | Jun. 01, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in other assets | $ 8 | $ 8 | |||
Nordeus Limited | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out required | $ 153 | ||||
Contingent earn-out | $ 61.1 | 69.5 | 70.1 | ||
Contingent consideration liability, increase | 4.5 | 26.5 | $ 48 | ||
Nordeus Limited | Performance Period One | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Performance period | 12 months | ||||
Nordeus Limited | Performance Period Two | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Performance period | 24 months | ||||
Popcore Limited | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out required | $ 105 | ||||
Performance period | 3 years | ||||
Contingent earn-out | $ 23.3 | 12.7 | |||
Contingent consideration liability, increase | (12.9) | $ 26.5 | |||
Popcore Limited | Accrued expenses and other current liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out | 12 | ||||
Popcore Limited | Other long-term liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out | $ 0.7 | ||||
Popcore Limited | Performance Period Two | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Performance period | 12 months | ||||
Zynga Inc | Accrued expenses and other current liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent earn-out | $ 0.4 |
SHORT-TERM INVESTMENTS - Schedu
SHORT-TERM INVESTMENTS - Schedule of Short-Term Investments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Cost or Amortized Cost | $ 22 | $ 189 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (2) |
Fair Value | 22 | 187 |
Bank-time deposits | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Cost or Amortized Cost | 22 | 41.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 22 | 41.8 |
Corporate bonds | ||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Cost or Amortized Cost | 147.2 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (2) | |
Fair Value | $ 145.2 |
SHORT-TERM INVESTMENTS - Short
SHORT-TERM INVESTMENTS - Short Term Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | ||
Amortized cost, Due in 1 year or less | $ 22 | |
Cost or Amortized Cost | 22 | $ 189 |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Fair value, Due in 1 year or less | 22 | |
Total Short-term investments | $ 22 | $ 187 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Forward contracts to sell foreign currencies | $ 243 | $ 224.3 | |
Forward contracts to purchase foreign currencies | 72.2 | 51.2 | |
Derivative instrument not designated as hedging instruments, gain (loss) net | $ 5.3 | $ (15.1) | $ 5.9 |
SOFTWARE DEVELOPMENT COSTS AN_3
SOFTWARE DEVELOPMENT COSTS AND LICENSES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Capitalized software development costs and licenses | |||
Current | $ 88.3 | $ 65.9 | |
Non-current | 1,446.5 | 1,072.2 | |
Software development costs and licenses related to titles not released | 1,433.8 | 1,010.2 | |
Amortization and impairment of software development costs and licenses | |||
Amortization of software development costs and licenses | 207.2 | 179.7 | $ 131.1 |
Impairment of software development costs and licenses | 109.9 | 79.1 | 70.6 |
Portion representing stock-based compensation | (24.4) | 9.5 | (48.4) |
Amortization and impairment, net of stock-based compensation | 292.7 | 268.3 | 153.3 |
Capitalized computer software, impairments | 21.7 | ||
2024 Plan | |||
Amortization and impairment of software development costs and licenses | |||
Impairment of software development costs and licenses | 88.2 | ||
Software Development Costs And Licenses | |||
Amortization and impairment of software development costs and licenses | |||
Amortization of software development costs and licenses | 45.3 | 41.2 | 46.8 |
Software development costs and licenses reduced | 108.3 | 108.1 | |
Research and development expense | 5.9 | 4.5 | $ 0 |
Software development costs, internally developed | |||
Capitalized software development costs and licenses | |||
Current | 53.4 | 47.4 | |
Non-current | 1,237 | 882 | |
Software development costs, externally developed | |||
Capitalized software development costs and licenses | |||
Current | 6.1 | 2.2 | |
Non-current | 198.5 | 169.7 | |
Licenses | |||
Capitalized software development costs and licenses | |||
Current | 28.8 | 16.3 | |
Non-current | 11 | 20.5 | |
Software Development Costs And Licenses, Government Grants | |||
Capitalized software development costs and licenses | |||
Current | 198.5 | 0 | |
Non-current | $ 109.3 | $ 256.8 |
FIXED ASSETS, NET (Details)
FIXED ASSETS, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Fixed assets | |||
Fixed assets, gross | $ 777.6 | $ 717.7 | |
Less: accumulated depreciation | (366.5) | (314.9) | |
Fixed assets, net | 411.1 | 402.8 | |
Depreciation expense | 135.5 | 90.3 | $ 61.2 |
United States | |||
Fixed assets | |||
Fixed assets, net | 242.6 | 234.1 | |
International | |||
Fixed assets | |||
Fixed assets, net | 168.5 | 168.7 | |
Computer equipment | |||
Fixed assets | |||
Fixed assets, gross | 298.2 | 266.9 | |
Leasehold improvements | |||
Fixed assets | |||
Fixed assets, gross | 270.6 | 235.1 | |
Computer software | |||
Fixed assets | |||
Fixed assets, gross | 89 | 102 | |
Buildings | |||
Fixed assets | |||
Fixed assets, gross | 63.7 | 62.1 | |
Furniture and fixtures | |||
Fixed assets | |||
Fixed assets, gross | 35.5 | 35.2 | |
Office equipment | |||
Fixed assets | |||
Fixed assets, gross | 20.6 | 16.4 | |
Fixed assets, net | |||
Fixed assets | |||
Depreciation expense | $ 135.5 | $ 88.8 | $ 59.1 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Change in the goodwill balance | |||
Balance at the beginning of the period | $ 6,767.1 | $ 674.6 | |
Impairment | (2,342.1) | 0 | $ 0 |
Additions from acquisitions | 9.7 | ||
Currency translation adjustment | (8.3) | (0.5) | |
Balance at the end of the period | $ 4,426.4 | 6,767.1 | $ 674.6 |
Zynga | |||
Change in the goodwill balance | |||
Additions from acquisitions | 5,994.4 | ||
Popcore Limited | |||
Change in the goodwill balance | |||
Additions from acquisitions | 72.1 | ||
Series of Individually Immaterial Business Acquisitions | |||
Change in the goodwill balance | |||
Additions from acquisitions | $ 26.5 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 2,342.1 | $ 0 | $ 0 |
Impairment charges | $ 577.4 | $ 465.3 | $ 0 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of revenue |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Intangibles (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 5,016.2 | $ 5,657.4 |
Accumulated Amortization | (1,955.6) | (1,204.2) |
Net Book Value | 3,060.6 | 4,453.2 |
Developed Game Technology | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | 3,788.8 | 4,434.5 |
Accumulated Amortization | (1,301.4) | (744) |
Net Book Value | $ 2,487.4 | 3,690.5 |
Weighted average useful life | 7 years | |
Developed game technology | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 395.1 | 395.2 |
Accumulated Amortization | (68.5) | (33.1) |
Net Book Value | $ 326.6 | 362.1 |
Weighted average useful life | 12 years | |
Game Engine Technology | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 322.5 | 323.2 |
Accumulated Amortization | (147.3) | (73.5) |
Net Book Value | $ 175.2 | 249.7 |
Weighted average useful life | 4 years | |
User Base | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 319.2 | 319.2 |
Accumulated Amortization | (319.2) | (274.4) |
Net Book Value | $ 0 | 44.8 |
Weighted average useful life | 0 years | |
Developer Relationships | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 57 | 57 |
Accumulated Amortization | (26.5) | (12.2) |
Net Book Value | $ 30.5 | 44.8 |
Weighted average useful life | 5 years | |
Advertising Technology | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 43 | 43 |
Accumulated Amortization | (26.6) | (12.3) |
Net Book Value | $ 16.4 | 30.7 |
Weighted average useful life | 3 years | |
Customer Relationships | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 31 | 31 |
Accumulated Amortization | (11.5) | (5.3) |
Net Book Value | $ 19.5 | 25.7 |
Weighted average useful life | 5 years | |
Intellectual Property | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 27.5 | 22.3 |
Accumulated Amortization | (23.1) | (18.2) |
Net Book Value | $ 4.4 | 4.1 |
Weighted average useful life | 6 years | |
In Place Lease | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 2 | 1.9 |
Accumulated Amortization | (1.4) | (1.1) |
Net Book Value | $ 0.6 | 0.8 |
Weighted average useful life | 4 years | |
User base | ||
Components of the intangible assets subject to amortization | ||
Gross Carrying Amount | $ 30.1 | 30.1 |
Accumulated Amortization | (30.1) | (30.1) |
Net Book Value | $ 0 | $ 0 |
Weighted average useful life | 0 years |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET - Amortization of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Capitalized software development costs and licenses | |||
Total amortization of intangible assets | $ 1,418.9 | $ 1,506.7 | $ 64.8 |
Cost of revenue | |||
Capitalized software development costs and licenses | |||
Total amortization of intangible assets | 1,303.5 | 1,171.5 | 52 |
Selling and marketing | |||
Capitalized software development costs and licenses | |||
Total amortization of intangible assets | 51 | 277.1 | 5.3 |
Research and development | |||
Capitalized software development costs and licenses | |||
Total amortization of intangible assets | 28.7 | 24.6 | 5.5 |
Depreciation and amortization | |||
Capitalized software development costs and licenses | |||
Total amortization of intangible assets | $ 35.7 | $ 33.5 | $ 2 |
GOODWILL AND INTANGIBLE ASSET_7
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2025 | $ 706.4 |
2026 | 681.6 |
2027 | 620.1 |
2028 | 579.5 |
2029 | $ 234.7 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Liabilities, Current [Abstract] | ||
Software development royalties | $ 413.1 | $ 510.7 |
Compensation and benefits | 227.3 | 177.5 |
Marketing and promotions | 94.5 | 132.7 |
Licenses | 64.4 | 63 |
Refund liability | 34.5 | 52.4 |
Tax payable | 32.4 | 33 |
Interest payable | 29.4 | 29.6 |
Sales tax liability | 19.3 | 14 |
Deferred acquisition payments | 17.6 | 82.7 |
Professional fees | 16.7 | 9.5 |
Other | 113.4 | 120.7 |
Accrued expenses and other current liabilities | $ 1,062.6 | $ 1,225.7 |
DEBT - Long-term Debt, Net (Det
DEBT - Long-term Debt, Net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Total | $ 3,075.9 | $ 1,744.1 |
Unamortized discount and issuance costs | (17.6) | (11.1) |
Long-term debt, net | 3,058.3 | 1,733 |
Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 2,999.6 | $ 1,669.4 |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 3.55% | 3.55% |
Total | $ 600 | $ 600 |
2025 Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 588.9 | $ 583.8 |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 5% | |
Total | $ 550 | |
2026 Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 547.6 | |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 3.70% | 3.70% |
Total | $ 600 | $ 600 |
2027 Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 576.5 | $ 580.9 |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 4.95% | |
Total | $ 800 | |
2028 Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 797.8 | |
2032 Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 4% | 4% |
Total | $ 500 | $ 500 |
2032 Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 462.9 | $ 460.6 |
2024 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 0.25% | 0.25% |
Total | $ 20.8 | |
2024 Convertible Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 20.8 | |
2026 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Annual Interest Rate | 0% | 0% |
Total | $ 25.9 | $ 23.3 |
2026 Convertible Notes | Significant other observable inputs (level 2) | ||
Debt Instrument [Line Items] | ||
Total | $ 25.9 | $ 23.3 |
DEBT - Short-term Debt (Details
DEBT - Short-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Jun. 05, 2023 | Mar. 31, 2023 |
Short-Term Debt [Line Items] | |||
Total | $ 24.6 | $ 1,350 | |
Unamortized discount and issuance costs | 0 | (3.2) | |
Short-term debt, net | 24.6 | 1,346.8 | |
Significant other observable inputs (level 2) | |||
Short-Term Debt [Line Items] | |||
Total | $ 24.6 | $ 1,328.2 | |
2024 Convertible Notes | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 0.25% | 0.25% | |
Short-term debt, net | $ 24.6 | ||
2024 Convertible Notes | Significant other observable inputs (level 2) | |||
Short-Term Debt [Line Items] | |||
Total | $ 24.6 | ||
2024 Notes | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 3.30% | ||
Total | $ 1,000 | ||
Short-term debt, net | $ 350 | ||
2024 Notes | Significant other observable inputs (level 2) | |||
Short-Term Debt [Line Items] | |||
Total | $ 978.2 | ||
Term Loan | |||
Short-Term Debt [Line Items] | |||
Annual Interest Rate | 3.60% | ||
Total | $ 350 | ||
Term Loan | Significant other observable inputs (level 2) | |||
Short-Term Debt [Line Items] | |||
Total | $ 350 |
DEBT - Interest and Other, Net
DEBT - Interest and Other, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Interest expense | $ 132 | $ 108.6 |
2024 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 15.1 | 31.5 |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 21.3 | 20.5 |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 24.7 | 0 |
2027 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 22.2 | 21.4 |
2028 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 27.2 | 0 |
2032 Notes | ||
Debt Instrument [Line Items] | ||
Interest expense | 20 | 19.2 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Interest expense | 1.5 | 11.9 |
2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Interest expense | $ 0 | $ 4.1 |
DEBT - Debt Maturities (Details
DEBT - Debt Maturities (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
2025 | $ 21.4 |
2026 | 1,150 |
2027 | 29.4 |
2028 | 1,400 |
2029 | 0 |
Thereafter | 500 |
Total | 3,100.8 |
Fair Value Adjustments | (0.3) |
Total | $ 3,100.5 |
DEBT - Senior Notes (Details)
DEBT - Senior Notes (Details) - USD ($) | 12 Months Ended | ||||||
Jun. 05, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | Jan. 08, 2024 | Apr. 14, 2023 | Apr. 14, 2022 | |
Debt Instrument [Line Items] | |||||||
Repayments of short-term debt | $ 1,339,600,000 | $ 200,000,000 | $ 200,000 | ||||
Short-term debt, net | 24,600,000 | $ 1,346,800,000 | |||||
Gain on debt extinguishment | $ 7,700,000 | ||||||
2026 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5% | ||||||
2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.95% | ||||||
2024 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.30% | ||||||
Repayments of short-term debt | $ 650,000,000 | ||||||
Short-term debt, net | $ 350,000,000 | ||||||
2025 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.55% | 3.55% | |||||
2027 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.70% | 3.70% | |||||
2032 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4% | 4% | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 350,000,000 | $ 2,700,000,000 | |||||
Purchase price, percent | 101% | ||||||
Percent of principal threshold | 25% | ||||||
Debt issuance cost | $ 29,400,000 | ||||||
Debt discount | 2,400,000 | ||||||
Amortization of debt issuance costs | 6,200,000 | $ 5,500,000 | |||||
Amortization of debt discount | 400,000 | $ 400,000 | |||||
Senior Notes | 2026 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | 50,000,000 | $ 500,000,000 | |||||
Interest rate | 5% | ||||||
Senior Notes | 2028 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 300,000,000 | $ 500,000,000 | |||||
Interest rate | 4.95% | ||||||
Senior Notes | 2024 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 1,000,000,000 | ||||||
Interest rate | 3.30% | ||||||
Senior Notes | 2025 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 600,000,000 | ||||||
Interest rate | 3.55% | ||||||
Senior Notes | 2027 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 600,000,000 | ||||||
Interest rate | 3.70% | ||||||
Senior Notes | 2032 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 500,000,000 | ||||||
Interest rate | 4% | ||||||
Senior Notes | 2024, 2025, 2027, And 2032 Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, periodic payment, interest | $ 135,200,000 | ||||||
Zynga Inc | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount at issuance | $ 1,000,000,000 |
DEBT - Credit Agreement (Detail
DEBT - Credit Agreement (Details) - USD ($) | 12 Months Ended | |||
May 23, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | May 16, 2024 | |
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 3,075,900,000 | $ 1,744,100,000 | ||
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Amount of additional borrowings by which maximum borrowing capacity may be increased | $ 250,000,000 | |||
Amount of additional borrowings by which maximum borrowing capacity may be increased, percent | 35% | |||
Debt issuance cost | $ 3,500,000 | |||
Amortization of debt issuance costs | 700,000 | 600,000 | ||
Available borrowings | 497,700,000 | $ 499,500,000 | ||
Credit Agreement | 2022 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings | $ 0 | |||
Credit Agreement | Base rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate at end of period | 8.50% | |||
Credit Agreement | SOFR | ||||
Debt Instrument [Line Items] | ||||
Interest rate at end of period | 5.33% | |||
Credit Agreement | Minimum | Base rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate added to base rate | 0% | |||
Credit Agreement | Minimum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Interest rate added to base rate | 1% | |||
Credit Agreement | Maximum | Base rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate added to base rate | 0.625% | |||
Credit Agreement | Maximum | SOFR | ||||
Debt Instrument [Line Items] | ||||
Interest rate added to base rate | 1.625% | |||
Revolving Credit Facility | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Maximum borrowing capacity | $ 500,000,000 | |||
Revolving Credit Facility | Credit Agreement | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 750,000,000 | |||
Letter of Credit | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 |
DEBT - Information Related to A
DEBT - Information Related to Availability on Credit Agreement (Details) - Credit Agreement - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Available borrowings | $ 497.7 | $ 499.5 |
Outstanding letters of credit | $ 2.3 | $ 2.8 |
DEBT - Term Loan (Details)
DEBT - Term Loan (Details) - Term Loan - USD ($) | 12 Months Ended | |
Jun. 22, 2022 | Mar. 31, 2024 | |
Short-Term Debt [Line Items] | ||
Debt term | 364 days | |
Principal amount at issuance | $ 350,000,000 | |
Interest rate | 3.60% | |
Debt instrument, periodic payment, interest | $ 1,800,000 |
DEBT - Convertibles Notes (Deta
DEBT - Convertibles Notes (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jun. 22, 2022 USD ($) day shares | May 23, 2022 USD ($) $ / shares shares | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Short-term debt, net | $ 24.6 | $ 1,346.8 | |||
Total | 3,075.9 | 1,744.1 | |||
Fair value adjustments | 8.6 | 31.5 | $ (6) | ||
Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Fair value adjustments | $ 6.4 | $ 37.6 | |||
Convertible Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Number of trading days | day | 20 | ||||
Number of consecutive trading days | day | 30 | ||||
Redemption price, percentage | 130% | ||||
Convertible Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Number of trading days | day | 5 | ||||
Number of consecutive trading days | day | 5 | ||||
Redemption price, percentage | 98% | ||||
0.25% Convertible Senior Notes due 2024 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Principal tendered for cash | $ 0.3 | ||||
Amount paid for tendered or conversion of notes | 321.6 | ||||
Principal surrendered for conversion | $ 668.3 | ||||
Shares issued (in shares) | shares | 3,700,000 | ||||
Long-term debt, net | $ 21.4 | $ 778.6 | |||
0% Convertible Senior Notes due 2026 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Amount paid for tendered or conversion of notes | 845.1 | ||||
Principal surrendered for conversion | 0 | ||||
Long-term debt, net | $ 29.4 | $ 874.5 | |||
2024 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.25% | 0.25% | |||
Short-term debt, net | $ 24.6 | ||||
Total | $ 20.8 | ||||
2026 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0% | 0% | |||
Total | $ 25.9 | $ 23.3 | |||
Zynga Inc | |||||
Debt Instrument [Line Items] | |||||
Exchange ratio (in shares) | shares | 0.0406 | ||||
Cash consideration, per share (in dollars per share) | $ / shares | $ 3.50 | ||||
Zynga Inc | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Exchange ratio (in shares) | shares | 0.0406 | ||||
Cash consideration, per share (in dollars per share) | $ / shares | $ 3.50 | ||||
Zynga Inc | 0.25% Convertible Senior Notes due 2024 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.25% | ||||
Principal amount at issuance | $ 690 | ||||
Zynga Inc | 0% Convertible Senior Notes due 2026 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0% | ||||
Principal amount at issuance | $ 874.5 |
(LOSS) EARNINGS PER SHARE ("E_3
(LOSS) EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Computation of Basic (loss) earnings per share: | |||
Net (loss) income | $ (3,744.2) | $ (1,124.7) | $ 418 |
Weighted average common shares outstanding - basic (in shares) | 170.1 | 159.9 | 115.5 |
Basic (loss) earnings per share (in dollars per share) | $ (22.01) | $ (7.03) | $ 3.62 |
Computation of Diluted (loss) earnings per share: | |||
Net (loss) income | $ (3,744.2) | $ (1,124.7) | $ 418 |
Weighted average common shares outstanding - basic (in shares) | 170.1 | 159.9 | 115.5 |
Add: dilutive effect of common stock equivalents (in shares) | 0 | 0 | 1.3 |
Weighted average common shares outstanding—diluted (in shares) | 170.1 | 159.9 | 116.8 |
Diluted (loss) earnings per share (in dollars per share) | $ (22.01) | $ (7.03) | $ 3.58 |
Share-Based Payment Arrangement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 2.4 | ||
Convertible Debt Securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 0.2 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) renewal_option | |
Lessee, Lease, Description [Line Items] | ||
Number of renewal options | renewal_option | 1 | |
Operating lease liability | $ 11.6 | |
General and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Impairment loss | $ 30 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Lease renewal terms | 1 year | |
Terms of operating leases | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 14 years | |
Lease renewal terms | 5 years | |
Terms of operating leases | 10 years |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Costs and Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | |||
Operating lease costs | $ 80.5 | $ 109.8 | $ 46.3 |
Short-term lease costs | 4.9 | 4.1 | 1.4 |
Cash paid for amounts included in the measurement of lease liabilities | 73.9 | 55.9 | 32.8 |
ROU assets obtained in exchange for lease obligations | $ 89.5 | $ 145.3 | $ 74 |
Remaining lease term | 8 years 4 months 24 days | 8 years 11 months 4 days | 10 years 1 month 2 days |
Discount rate | 4.56% | 4.33% | 4.29% |
LEASES - Operating Lease Maturi
LEASES - Operating Lease Maturities (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2025 | $ 83.9 |
2026 | 69.2 |
2027 | 67.2 |
2028 | 63.6 |
2029 | 60.4 |
Thereafter | 199.6 |
Total future lease payments | 543.9 |
Less imputed interest | (92.8) |
Total lease liabilities | $ 451.1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Annual Minimum Obligations (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Purchase Obligations | |
2025 | $ 146.3 |
2026 | 67.7 |
2027 | 12.6 |
2028 | 0.3 |
2029 | 0 |
Thereafter | 0 |
Total | 226.9 |
2025 | 511.7 |
2026 | 275.5 |
2027 | 74.1 |
2028 | 15.1 |
2029 | 20.3 |
Thereafter | 7.5 |
Total | 904.2 |
Software Development and Licensing | |
Unrecorded Unconditional Purchase Obligation | |
2025 | 333 |
2026 | 133.3 |
2027 | 33.3 |
2028 | 8.5 |
2029 | 13.8 |
Thereafter | 1 |
Total | 522.9 |
Marketing | |
Unrecorded Unconditional Purchase Obligation | |
2025 | 32.4 |
2026 | 74.5 |
2027 | 28.2 |
2028 | 6.3 |
2029 | 6.5 |
Thereafter | 6.5 |
Total | $ 154.4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Matching contribution expense incurred by the company | $ 43 | $ 36.1 | $ 22.4 |
INCOME TAXES - Current Income T
INCOME TAXES - Current Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Components of (loss) income before income taxes | |||
Domestic | $ (2,081.8) | $ (937) | $ 357.5 |
Foreign | (1,621) | (401.1) | 107.9 |
(Loss) income before income taxes | (3,702.8) | (1,338.1) | 465.4 |
Current: | |||
U.S. federal | 23 | 70.2 | 12 |
U.S. state and local | 12.4 | 3.3 | (0.6) |
Foreign | 107.5 | 98 | 24.1 |
Total current income taxes | 142.9 | 171.5 | 35.5 |
Deferred: | |||
U.S. federal | 24.6 | (175.4) | 34.8 |
U.S. state and local | (22.6) | (31.4) | 2.9 |
Foreign | (103.5) | (178.1) | (25.8) |
Total deferred income taxes | (101.5) | (384.9) | 11.9 |
Provision for (benefit from) income taxes | $ 41.4 | $ (213.4) | $ 47.4 |
Reconciliation of effective tax rate to the U.S. statutory federal income tax rate | |||
U.S. federal statutory rate | 21% | 21% | 21% |
State and local taxes, net of U.S. federal benefit | 0.60% | 2% | 1.20% |
Foreign tax rate differential | 0.20% | (0.30%) | (1.80%) |
Foreign earnings | (1.50%) | (1.30%) | (2.30%) |
Tax credits | 1.70% | 5.70% | (6.60%) |
Excess tax benefits from stock-based compensation | (0.10%) | (0.50%) | (3.10%) |
Earn-out adjustments | 0.10% | (0.40%) | 2.20% |
Valuation allowance—domestic | (9.10%) | (6.30%) | (0.10%) |
Valuation allowance—foreign | (1.10%) | (0.10%) | 0.40% |
Nondeductible compensation | (0.10%) | (0.90%) | 0.40% |
Global intangible low-taxed income | (1.00%) | (3.10%) | 0.10% |
Foreign-derived intangible net | 0.50% | 1.80% | (0.90%) |
Change in reserves | 0.90% | (0.10%) | (0.90%) |
Goodwill impairment | (0.128) | 0 | 0 |
Other | (0.40%) | (1.60%) | 0.60% |
Effective tax rate | (1.10%) | 15.90% | 10.20% |
Tax expense (benefit) from change in deferred tax assets | $ 29.2 | $ (5.6) | $ (11.6) |
Nondeductible expense | $ 8.2 |
INCOME TAXES - Deferred Taxes (
INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Deferred tax assets: | ||
Capitalized development costs, software and depreciation | $ 365.1 | $ 157.8 |
Tax credit carryforward | 174.4 | 159.5 |
Equity-based compensation | 143 | 109.8 |
Tax basis step up related to TRAF | 131.1 | 79.1 |
Operating lease liabilities | 101.9 | 90.6 |
Accrued compensation expense | 72.6 | 96.6 |
Net operating loss carryforward | 63.2 | 50.3 |
Other | 2.7 | 26 |
Total deferred tax assets | 1,054 | 769.7 |
Less: Valuation allowance | (799.1) | (338.2) |
Net deferred tax assets | 254.9 | 431.5 |
Deferred tax liabilities: | ||
Intangible amortization | (513.2) | (841) |
Right-of-use assets | (75.7) | (64.7) |
Deferred revenue | (5) | (15) |
Total deferred tax liabilities | (593.9) | (920.7) |
Deferred tax liabilities, net | (339) | (489.2) |
Deferred tax assets | 1.9 | 44.8 |
Deferred tax liabilities, net | 340.9 | 534 |
Deferred tax assets | ||
Deferred tax liabilities: | ||
Deferred tax assets | 1.9 | 44.8 |
Other long-term liabilities | ||
Deferred tax liabilities: | ||
Deferred tax liabilities, net | $ 340.9 | $ 534 |
INCOME TAXES - Loss Carryforwar
INCOME TAXES - Loss Carryforwards (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating loss carryforwards | ||
Valuation allowance | $ 378.8 | |
Total amount of undistributed earnings of foreign subsidiaries | 492.5 | $ 64.6 |
Total gross amount of undistributed earnings of foreign subsidiaries | 456 | |
Zynga Inc | ||
Operating loss carryforwards | ||
Total amount of undistributed earnings of foreign subsidiaries | $ 391.4 | |
Domestic | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 367.5 | |
Domestic | Expire from 2024 to 2029 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 28.3 | |
Domestic | Expire from 2030 to 2040 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 187.3 | |
Domestic | Expire from 2041 to 2043 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 136.8 | |
Foreign | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 201.7 | |
Foreign | Expire from 2026 to 2030 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 127.6 | |
Foreign | Expire from 2041 to 2044 | ||
Operating loss carryforwards | ||
Net operating loss carryforwards | 13.9 | |
Domestic Tax Authority | ||
Operating loss carryforwards | ||
Tax credit carryforward | 300.5 | |
Domestic Tax Authority | Expire from 2041 to 2044 | ||
Operating loss carryforwards | ||
Tax credit carryforward | 2.6 | |
Domestic Tax Authority | Expire from 2031 to 2038 | ||
Operating loss carryforwards | ||
Tax credit carryforward | $ 1.4 |
INCOME TAXES - Uncertain Tax Po
INCOME TAXES - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Contingency [Line Items] | |||
Increase in interest and penalties | $ 13.5 | $ 8.9 | $ 1.9 |
Gross amount of interest and penalties accrued | 33.6 | 20.2 | |
Gross unrecognized tax benefits including interest and penalties | 276.3 | ||
Gross unrealized tax benefits, which would affect effective tax rate, if realized | 167.9 | ||
Increase (decrease) in unrecognized tax benefits | 18.5 | ||
Possible reduction of unrecognized tax benefits within the next 12 months | 38.6 | ||
Aggregate changes to the liability for gross uncertain tax position, excluding interest and penalties | |||
Balance, beginning of period | 274.7 | 164.8 | 158.3 |
Additions: | |||
Current year tax positions | 41.4 | 26.5 | 10.3 |
Prior year tax positions | 2.3 | 109.7 | 4.2 |
Reduction of prior year tax positions | 0 | (26.3) | 0 |
Lapse of statute of limitations | (76.2) | 0 | (8) |
Other | 0.6 | 0 | 0 |
Balance, end of period | $ 242.8 | 274.7 | $ 164.8 |
Zynga Inc | |||
Additions: | |||
Prior year tax positions | $ 109.7 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Incentive Plan Narrative (Details) - 2017 Plan - shares shares in Millions | Mar. 31, 2024 | Sep. 30, 2017 |
Stock-based compensation | ||
Number of shares authorized (in shares) | 25.7 | |
Number of shares available for grant (in shares) | 10.5 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-based compensation expense | |||
Stock-based compensation expense before income taxes | $ 335.6 | $ 317.8 | $ 183 |
Provision for (benefit from) income taxes | (12.2) | (45.8) | (35.4) |
Stock-based compensation expense, net of income tax benefit | 323.4 | 272 | 147.6 |
Capitalized stock-based compensation expense | 85.4 | 74.4 | 82.1 |
Cost of revenue | |||
Stock-based compensation expense | |||
Stock-based compensation expense before income taxes | 24.4 | (9.5) | 48.4 |
Selling and marketing | |||
Stock-based compensation expense | |||
Stock-based compensation expense before income taxes | 95.3 | 95.2 | 30 |
General and administrative | |||
Stock-based compensation expense | |||
Stock-based compensation expense before income taxes | 111.5 | 115.5 | 66.5 |
Research and development | |||
Stock-based compensation expense | |||
Stock-based compensation expense before income taxes | $ 104.4 | $ 116.6 | $ 38.1 |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock-Based Compensation Expense Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
May 23, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-based compensation | ||||
Reversal of forfeiture awards | $ 2.4 | $ 49.5 | $ 0.7 | |
Reversal of capitalized costs | 7.4 | 11.9 | 3.2 | |
Zynga Inc | ||||
Stock-based compensation | ||||
Replacement equity awards | $ 151.7 | |||
Acceleration of awards, cost | 28.6 | |||
Performance and market-based restricted stock awards | ||||
Stock-based compensation | ||||
Fair values of restricted stock units vested | 309.3 | $ 321.8 | $ 208.6 | |
Restricted Stock Units And Performance Share Units | Zynga Inc | ||||
Stock-based compensation | ||||
Future unrecognized compensation cost, net of estimated forfeitures | $ 114.9 | |||
Number of awards issued (in shares) | 4.2 | |||
Unrecognized share-based compensation cost, period of recognition | 1 year | |||
Stock Options | Zynga Inc | ||||
Stock-based compensation | ||||
Future unrecognized compensation cost, net of estimated forfeitures | $ 0.1 | |||
Number of awards issued (in shares) | 1.5 | |||
Unrecognized share-based compensation cost, period of recognition | 3 months 18 days | |||
Restricted Stock | ||||
Stock-based compensation | ||||
Future unrecognized compensation cost, net of estimated forfeitures | $ 684.2 | |||
Weighted average remaining contractual terms | 2 years 4 months 24 days |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Units Narrative (Details) - shares shares in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Minimum | Zelnick Media Corporation | 2017 Management Agreement | ||
Stock-based compensation | ||
Award measurement period | 2 years | |
Maximum | Zelnick Media Corporation | 2017 Management Agreement | ||
Stock-based compensation | ||
Award measurement period | 3 years | |
Total Performance-based | Zelnick Media Corporation | 2017 Management Agreement | ||
Stock-based compensation | ||
Percentage of grants tied to performance measures | 50% | |
Market Based Restricted Stock | Zelnick Media Corporation | 2017 Management Agreement | ||
Stock-based compensation | ||
Vesting percentage | 50% | |
Market Based Restricted Stock | Maximum | 2017 Management Agreement | ||
Stock-based compensation | ||
Vesting percentage | 75% | |
Restricted Stock | Minimum | ||
Stock-based compensation | ||
Award vesting period | 3 years | |
Restricted Stock | Maximum | ||
Stock-based compensation | ||
Award vesting period | 4 years | |
Restricted Stock | 2017 Management Agreement | ||
Stock-based compensation | ||
Nonvested shares (in shares) | 1.3 | 1.1 |
Vested (in shares) | 0.2 | |
Forfeited (in shares) | 0 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value of Stock-Based Awards Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stock-based compensation | |||
Aggregate intrinsic value, options outstanding | $ 4,600 | ||
Proceeds from exercise of stock options | 1,500 | ||
Total grant date fair value of options vested | 1,500 | ||
Total grant date fair value of options exercised | $ 6,100 | ||
Performance Based Awards | |||
Stock-based compensation | |||
Options granted in period (in dollars per shares) | $ 139.21 | $ 125.03 | $ 176.05 |
Stock Options | |||
Stock-based compensation | |||
Contract term | 10 years | ||
Aggregate intrinsic value, options outstanding | $ 61,850 | $ 46,510 | |
Stock Options | Minimum | |||
Stock-based compensation | |||
Award vesting period | 4 years | ||
Stock Options | Maximum | |||
Stock-based compensation | |||
Award vesting period | 5 years | ||
Stock Options | Share-Based Payment Arrangement, Tranche One | |||
Stock-based compensation | |||
Award vesting period | 1 year | ||
Stock Options | Share-Based Payment Arrangement, Tranche One | Minimum | |||
Stock-based compensation | |||
Vesting percentage | 20% | ||
Stock Options | Share-Based Payment Arrangement, Tranche One | Maximum | |||
Stock-based compensation | |||
Vesting percentage | 25% | ||
Stock Options | Share-Based Payment Arrangement, Tranche Two | Minimum | |||
Stock-based compensation | |||
Award vesting period | 26 months | ||
Stock Options | Share-Based Payment Arrangement, Tranche Two | Maximum | |||
Stock-based compensation | |||
Award vesting period | 48 months | ||
Restricted Stock Units (RSUs) | |||
Stock-based compensation | |||
Unrecognized stock-based compensation expense | $ 100 | ||
Weighted-average recognition period | 3 months 10 days | ||
Zelnick Media Corporation | Performance Based Awards | |||
Stock-based compensation | |||
Options granted in period (in dollars per shares) | $ 148.42 | $ 125.90 | 182.66 |
Time Based | |||
Stock-based compensation | |||
Intrinsic value (in dollars per share) | 138.25 | 118.17 | 180.97 |
Time Based | Zelnick Media Corporation | |||
Stock-based compensation | |||
Intrinsic value (in dollars per share) | 137.59 | 128.90 | 182.66 |
Employee Market-Based | |||
Stock-based compensation | |||
Options granted in period (in dollars per shares) | 195.85 | 179.93 | 292.76 |
Market-based restricted shares | Zelnick Media Corporation | |||
Stock-based compensation | |||
Options granted in period (in dollars per shares) | $ 193.41 | $ 175.12 | $ 293.32 |
STOCK-BASED COMPENSATION - St_3
STOCK-BASED COMPENSATION - Stock Activity (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value, options outstanding | $ 4,600,000 | ||
Zelnick Media Corporation | 2017 Management Agreement | |||
Shares | |||
Granted (in shares) | 490 | 873 | |
Employee Market-Based | |||
Weighted-average assumptions | |||
Risk-free interest rate | 4% | 0.10% | |
Expected stock price volatility | 36.60% | 37.30% | |
Expected service period (years) | 2 years 9 months 18 days | 1 year 6 months | |
Dividends | $ 0 | $ 0 | $ 0 |
Employee Market-Based | Minimum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 2.60% | ||
Expected stock price volatility | 35.90% | ||
Expected service period (years) | 1 year 9 months 18 days | ||
Employee Market-Based | Maximum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 2.80% | ||
Expected stock price volatility | 37.60% | ||
Expected service period (years) | 2 years 9 months 18 days | ||
Non-Employee Market-Based | |||
Weighted-average assumptions | |||
Risk-free interest rate | 4% | 0.20% | |
Expected stock price volatility | 36.60% | 36.30% | |
Expected service period (years) | 2 years 9 months 18 days | 1 year | |
Dividends | $ 0 | $ 0 | $ 0 |
Non-Employee Market-Based | Minimum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 2.40% | ||
Expected stock price volatility | 34.20% | ||
Expected service period (years) | 1 year 9 months 18 days | ||
Non-Employee Market-Based | Maximum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 2.80% | ||
Expected stock price volatility | 37.60% | ||
Expected service period (years) | 2 years 9 months 18 days | ||
Time-based | |||
Shares | |||
Non-vested restricted stock units at the beginning of the year (in shares) | 5.1 | ||
Granted (in shares) | 1.6 | ||
Vested (in shares) | (1.9) | ||
Forfeited (in shares) | (0.4) | ||
Non-vested restricted stock units at the end of the year (in shares) | 4.4 | 5.1 | |
Weighted Average Fair Value on Grant Date | |||
Non-vested restricted stock at the beginning of the year (in dollars per share) | $ 126.34 | ||
Granted (in dollars per share) | 138.21 | ||
Vested (in dollars per share) | 130.24 | ||
Forfeited (in dollars per share) | 123.03 | ||
Non-vested restricted stock at the end of the year (in dollars per share) | $ 129.33 | $ 126.34 | |
Time-based | Zelnick Media Corporation | 2017 Management Agreement | |||
Shares | |||
Granted (in shares) | 97 | 192 | |
Market-based | Zelnick Media Corporation | 2017 Management Agreement | |||
Shares | |||
Granted (in shares) | 295 | 510 | |
IP | Zelnick Media Corporation | 2017 Management Agreement | |||
Shares | |||
Granted (in shares) | 0 | 18 | |
Recurrent consumer spending | Zelnick Media Corporation | 2017 Management Agreement | |||
Shares | |||
Granted (in shares) | 98 | 153 | |
Total Performance-based | Zelnick Media Corporation | 2017 Management Agreement | |||
Shares | |||
Granted (in shares) | 98 | 171 | |
Market-based restricted shares | |||
Shares | |||
Non-vested restricted stock units at the beginning of the year (in shares) | 0.7 | ||
Granted (in shares) | 0.5 | ||
Vested (in shares) | (0.2) | ||
Forfeited (in shares) | (0.1) | ||
Non-vested restricted stock units at the end of the year (in shares) | 0.9 | 0.7 | |
Weighted Average Fair Value on Grant Date | |||
Non-vested restricted stock at the beginning of the year (in dollars per share) | $ 183.72 | ||
Granted (in dollars per share) | 195.03 | ||
Vested (in dollars per share) | 276.07 | ||
Forfeited (in dollars per share) | 218.49 | ||
Non-vested restricted stock at the end of the year (in dollars per share) | $ 172.66 | $ 183.72 | |
Performance Based Awards | |||
Shares | |||
Non-vested restricted stock units at the beginning of the year (in shares) | 3.9 | ||
Granted (in shares) | 0.2 | ||
Vested (in shares) | (0.1) | ||
Forfeited (in shares) | (0.1) | ||
Non-vested restricted stock units at the end of the year (in shares) | 3.9 | 3.9 | |
Weighted Average Fair Value on Grant Date | |||
Non-vested restricted stock at the beginning of the year (in dollars per share) | $ 113.28 | ||
Granted (in dollars per share) | 141.90 | ||
Vested (in dollars per share) | 166.02 | ||
Forfeited (in dollars per share) | 151.67 | ||
Non-vested restricted stock at the end of the year (in dollars per share) | $ 113.58 | $ 113.28 | |
Stock Options | |||
Shares | |||
Non-vested restricted stock units at the beginning of the year (in shares) | 0.7 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (0.1) | ||
Forfeited (in shares) | 0 | ||
Non-vested restricted stock units at the end of the year (in shares) | 0.6 | 0.7 | |
Exercisable Option - (in shares) | 0.6 | ||
Vested and expected to vest (in shares) | 0 | ||
Weighted Average Fair Value on Grant Date | |||
Non-vested restricted stock at the beginning of the year (in dollars per share) | $ 49.54 | ||
Granted (in dollars per share) | 0 | ||
Vested (in dollars per share) | 38.68 | ||
Forfeited (in dollars per share) | 34.68 | ||
Non-vested restricted stock at the end of the year (in dollars per share) | 50.50 | $ 49.54 | |
Exercisable Option - (in dollars per share) | 50.02 | ||
Vested and expected to vest (in dollar per share) | $ 44.59 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value, options outstanding | $ 61,850,000 | $ 46,510,000 | |
Aggregate intrinsic value, exercisable options outstanding | 61,720,000 | ||
Aggregate intrinsic value, Vested and expected to vest outstanding | $ 130,000 | ||
Weighted average remaining contractual life, options outstanding | 3 years 5 months 12 days | 4 years 6 months 10 days | |
Weighted average remaining contractual life, exercisable options outstanding | 3 years 5 months 12 days | ||
Weighted average remaining contractual life, vested and expected to vest, options outstanding | 6 years 6 months 3 days | ||
Weighted-average assumptions | |||
Dividends | $ 0 | ||
Stock Options | Minimum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 0.60% | ||
Expected stock price volatility | 36% | ||
Expected service period (years) | 1 month 6 days | ||
Stock Options | Maximum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 2.80% | ||
Expected stock price volatility | 46.50% | ||
Expected service period (years) | 5 years 1 month 6 days | ||
Employee Stock Purchase Plan | 2017 Global Employee Stock Purchase Plan | |||
Weighted-average assumptions | |||
Expected stock price volatility | 27.70% | ||
Expected service period (years) | 6 months | 6 months | |
Dividends | $ 0 | $ 0 | |
Employee Stock Purchase Plan | 2017 Global Employee Stock Purchase Plan | Minimum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 5.14% | 1.40% | |
Expected stock price volatility | 26.30% | ||
Employee Stock Purchase Plan | 2017 Global Employee Stock Purchase Plan | Maximum | |||
Weighted-average assumptions | |||
Risk-free interest rate | 5.51% | 4.60% | |
Expected stock price volatility | 39.10% |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Stock-based compensation | ||
ESPP shares purchase period | 6 months | |
2017 Global Employee Stock Purchase Plan | Employee Stock Purchase Plan | ||
Stock-based compensation | ||
Shares reserved for future issuance (in shares) | 9 | |
Shares available for issuance (in shares) | 7.9 | |
Employee payroll deduction, minimum | 1% | |
Employee payroll deduction, maximum | 15% | |
Purchase shares of common stock | 85% | |
ESPP shares purchased by employees (in shares) | 0.4 | 0.2 |
ESPP shares purchased by employees | $ 37.9 | $ 22.1 |
Weighted-average fair value of shares purchased by employees (in dollars per share) | $ 102.19 | $ 101.15 |
INTEREST AND OTHER, NET (Detail
INTEREST AND OTHER, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 62.3 | $ 33.8 | $ 17.6 |
Interest expense | (140.6) | (129.6) | (18.6) |
Foreign currency exchange gain (loss) | (28.6) | (31.8) | (7.3) |
Other | 3.3 | (14.3) | (5.9) |
Interest and other, net | $ (103.6) | $ (141.9) | $ (14.2) |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 9,042.5 | |
Other comprehensive income (loss) before reclassifications | 8.2 | $ (56) |
Ending balance | 5,667.9 | 9,042.5 |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (111.7) | (52.8) |
Other comprehensive income (loss) before reclassifications | 6.7 | (58.9) |
Ending balance | (105) | (111.7) |
Unrealized gain (loss) on available- for-sales securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1.6) | (4.5) |
Other comprehensive income (loss) before reclassifications | 1.5 | 2.9 |
Ending balance | (0.1) | (1.6) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (113.3) | (57.3) |
Ending balance | $ (105.1) | $ (113.3) |
SUPPLEMENTARY FINANCIAL INFOR_3
SUPPLEMENTARY FINANCIAL INFORMATION (Details) - Valuation allowance for deferred income taxes - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Movement in valuation and qualifying accounts | |||
Beginning Balance | $ 338.2 | $ 121.9 | $ 95.7 |
Additions | 488 | 218.5 | 27.9 |
Deductions | (27.1) | (2.2) | (1.7) |
Other | 0 | 0 | 0 |
Ending Balance | $ 799.1 | $ 338.2 | $ 121.9 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||||||
Nov. 16, 2022 USD ($) shares | May 23, 2022 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) day | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jan. 08, 2024 USD ($) | Apr. 14, 2023 USD ($) | Apr. 14, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||||||
Cash | $ 18,100,000 | $ 3,310,900,000 | $ 161,300,000 | ||||||
Senior Notes | |||||||||
Business Acquisition [Line Items] | |||||||||
Principal amount at issuance | $ 350,000,000 | $ 2,700,000,000 | |||||||
Zynga Inc | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration, per share (in dollars per share) | $ / shares | $ 3.50 | ||||||||
Exchange ratio (in shares) | shares | 0.0406 | ||||||||
Cash | $ 3,992,400,000 | ||||||||
Replacement equity awards | 151,700,000 | ||||||||
Consideration | $ 9,521,800,000 | ||||||||
Zynga Inc | Senior Notes | |||||||||
Business Acquisition [Line Items] | |||||||||
Principal amount at issuance | $ 1,000,000,000 | ||||||||
Zynga Inc | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Issuance of common stock in connection with acquisition (in shares) | shares | 46,300,000 | ||||||||
Popcore Limited | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash | $ 116,900,000 | ||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||
Contingent earn-out required | $ 105,000,000 | ||||||||
Performance period | 3 years | ||||||||
Contingent earn-out | $ 23,300,000 | $ 12,700,000 | |||||||
Consideration | $ 198,000,000 | ||||||||
Popcore Limited | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Issuance of common stock in connection with acquisition (in shares) | shares | 600,000 | ||||||||
Gearbox Acquisition | Forecast | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, percentage of voting interests acquired | 100% | ||||||||
Gearbox Acquisition | Forecast | Subsequent Event | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration | $ 460,000,000 | ||||||||
Threshold consecutive trading days | day | 5 |
ACQUISITIONS - Schedule of Cons
ACQUISITIONS - Schedule of Consideration at Fair Value (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Nov. 16, 2022 | May 23, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Cash | $ 18.1 | $ 3,310.9 | $ 161.3 | ||
Zynga Inc | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 3,992.4 | ||||
Common stock | 5,377.7 | ||||
Replacement equity awards | 151.7 | ||||
Total | $ 9,521.8 | ||||
Zynga Inc | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Issuance of common stock in connection with acquisition (in shares) | 46.3 | ||||
Popcore Limited | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 116.9 | ||||
Common stock | 57.8 | ||||
Contingent earn-out | 23.3 | $ 12.7 | |||
Total | $ 198 | ||||
Popcore Limited | Common Stock | |||||
Business Acquisition [Line Items] | |||||
Issuance of common stock in connection with acquisition (in shares) | 0.6 |
ACQUISITIONS - Schedule of Asse
ACQUISITIONS - Schedule of Assets and Liabilities Assumed (Details) - USD ($) $ in Millions | Nov. 16, 2022 | May 23, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 4,426.4 | $ 6,767.1 | $ 674.6 | ||
Zynga Inc | |||||
Business Acquisition [Line Items] | |||||
Cash acquired | $ 864.9 | ||||
Accounts receivable | 271.2 | ||||
Prepaid expenses and other | 194.4 | ||||
Fixed assets | 54.3 | ||||
Right-of-use assets | 92.7 | ||||
Other tangible assets | 67.1 | ||||
Accounts payable | (78.5) | ||||
Accrued expenses and other current liabilities | (352.8) | ||||
Deferred revenue | (333.1) | ||||
Lease liabilities | (15.7) | ||||
Long-term debt | (1,653.1) | ||||
Non-current lease liabilities | (131.6) | ||||
Deferred tax liabilities, net | (922.9) | ||||
Other liabilities assumed | (61.5) | ||||
Goodwill | 5,994.4 | ||||
Total | 9,521.8 | ||||
Zynga Inc | Developed game technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 4,440 | ||||
Weighted average useful life | 7 years | ||||
Zynga Inc | Branding and trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 384 | ||||
Weighted average useful life | 12 years | ||||
Zynga Inc | Game engine technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 261 | ||||
Weighted average useful life | 4 years | ||||
Zynga Inc | User base | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 316 | ||||
Weighted average useful life | 1 year | ||||
Zynga Inc | Developer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 57 | ||||
Weighted average useful life | 4 years | ||||
Zynga Inc | Advertising technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 43 | ||||
Weighted average useful life | 3 years | ||||
Zynga Inc | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 31 | ||||
Weighted average useful life | 5 years | ||||
Popcore Limited | |||||
Business Acquisition [Line Items] | |||||
Cash acquired | $ 37.1 | ||||
Other tangible assets | 22.4 | ||||
Other liabilities assumed | (81.2) | ||||
Goodwill | 75.6 | ||||
Total | 198 | ||||
Popcore Limited | Developed game technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 113 | ||||
Weighted average useful life | 5 years | ||||
Popcore Limited | Branding and trade names | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 3.4 | ||||
Weighted average useful life | 4 years | ||||
Popcore Limited | Game engine technology | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, excluding goodwill | $ 27.7 | ||||
Weighted average useful life | 7 years |
BUSINESS REORGANIZATION (Detail
BUSINESS REORGANIZATION (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | $ 104.6 | $ 14.6 | $ 0.8 | |
Impairment of software development costs and licenses | 109.9 | $ 79.1 | $ 70.6 | |
Reorganizing amounts paid | 1.9 | |||
Employee-related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 3.2 | |||
Professional fees | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 1.9 | |||
Accrued liabilities | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Reorganization accrued expense | 13.1 | |||
2024 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 93.3 | |||
Impairment of software development costs and licenses | $ 88.2 | |||
2024 Plan | Minimum | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | $ 160 | |||
2024 Plan | Minimum | Title cancellations | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 120 | |||
2024 Plan | Minimum | Employee severance and employee-related costs | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 25 | |||
2024 Plan | Minimum | Office space reductions | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 15 | |||
2024 Plan | Maximum | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 200 | |||
2024 Plan | Maximum | Title cancellations | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 140 | |||
2024 Plan | Maximum | Employee severance and employee-related costs | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | 35 | |||
2024 Plan | Maximum | Office space reductions | Forecast | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business reorganization | $ 25 |