Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | May 20, 2019 | Sep. 28, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EA | ||
Entity Registrant Name | ELECTRONIC ARTS INC. | ||
Entity Central Index Key | 0000712515 | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 297,261,219 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 35,963 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 4,708 | $ 4,258 |
Short-term investments | 737 | 1,073 |
Receivables, net of allowances of $7 and $165, respectively | 623 | 385 |
Other current assets | 313 | 288 |
Total current assets | 6,381 | 6,004 |
Property and equipment, net | 448 | 453 |
Goodwill | 1,892 | 1,883 |
Acquisition-related intangibles, net | 87 | 71 |
Deferred income taxes, net | 35 | 84 |
Other assets | 114 | 89 |
TOTAL ASSETS | 8,957 | 8,584 |
LIABILITIES: | ||
Accounts payable | 113 | 48 |
Accrued and other current liabilities | 1,052 | 821 |
Deferred net revenue (online-enabled games) | 1,100 | 1,622 |
Total current liabilities | 2,265 | 2,491 |
Senior notes, net | 994 | 992 |
Income tax obligations | 233 | 250 |
Deferred income taxes, net | 2 | 1 |
Other liabilities | 132 | 255 |
Total liabilities | 3,626 | 3,989 |
Commitments and contingencies (See Note 13) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value. 10 shares authorized | 0 | 0 |
Common stock, $0.01 par value. 1,000 shares authorized; 298 and 306 shares issued and outstanding, respectively | 3 | 3 |
Additional paid-in capital | 0 | 657 |
Retained earnings | 5,358 | 4,062 |
Accumulated other comprehensive loss | (30) | (127) |
Total stockholders' equity | 5,331 | 4,595 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 8,957 | $ 8,584 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Receivables, allowances | $ 7 | $ 165 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10 | 10 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 298 | 306 |
Common stock, shares outstanding | 298 | 306 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Net revenue | ||||
Net revenue | $ 4,950 | [1] | $ 5,150 | $ 4,845 |
Cost of revenue | ||||
Total cost of revenue | 1,322 | 1,277 | 1,298 | |
Gross profit | 3,628 | 3,873 | 3,547 | |
Operating expenses: | ||||
Research and development | 1,433 | 1,320 | 1,205 | |
Marketing and sales | 702 | 641 | 673 | |
General and administrative | 460 | 469 | 439 | |
Acquisition-related contingent consideration | 14 | 0 | 0 | |
Amortization of intangibles | 23 | 9 | 6 | |
Total operating expenses | 2,632 | 2,439 | 2,323 | |
Operating income | 996 | 1,434 | 1,224 | |
Interest and other income (expense), net | 83 | 15 | (14) | |
Income before provision for (benefit from) income taxes | 1,079 | 1,449 | 1,210 | |
Provision for (benefit from) income taxes | 60 | 406 | 243 | |
Net income | $ 1,019 | $ 1,043 | $ 967 | |
Earnings per share: | ||||
Basic | $ 3.36 | $ 3.39 | $ 3.19 | |
Diluted | $ 3.33 | $ 3.34 | $ 3.08 | |
Number of shares used in computation: | ||||
Basic | 303 | 308 | 303 | |
Diluted | 306 | 312 | 314 | |
Product [Member] | ||||
Net revenue | ||||
Net revenue | $ 1,593 | $ 2,586 | $ 2,640 | |
Cost of revenue | ||||
Total cost of revenue | 517 | 822 | 893 | |
Service and other [Member] | ||||
Net revenue | ||||
Net revenue | 3,357 | 2,564 | 2,205 | |
Cost of revenue | ||||
Total cost of revenue | $ 805 | $ 455 | $ 405 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net income | $ 1,019 | $ 1,043 | $ 967 |
Other comprehensive income (loss), net of tax: | |||
Net gains (losses) on available-for-sale securities | 7 | (5) | (4) |
Net gains (losses) on derivative instruments | 88 | (121) | 18 |
Foreign currency translation adjustments | (21) | 18 | (17) |
Total other comprehensive income (loss), net of tax | 74 | (108) | (3) |
Total comprehensive income (loss) | $ 1,093 | $ 935 | $ 964 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional paid-in capital | Retained earnings (Accumulated deficit) | Accumulated other comprehensive income (loss) | Repurchase program, total | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]Retained earnings (Accumulated deficit) | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]Accumulated other comprehensive income (loss) | ASU 2018-02 [Member] | ASU 2018-02 [Member]Retained earnings (Accumulated deficit) | ASU 2018-02 [Member]Accumulated other comprehensive income (loss) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ 34 | |||||||||||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (37) | |||||||||||
Balance at Mar. 31, 2016 | 3,396 | $ 3 | $ 1,349 | $ 2,060 | $ (16) | |||||||
Balance (in shares) at Mar. 31, 2016 | 300,602 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Total comprehensive income (loss) | 964 | 967 | (3) | |||||||||
Issuance of common stock | (55) | (55) | ||||||||||
Issuance of common stock (in shares) | 4,626 | |||||||||||
Reclassification of equity component of convertible notes | 2 | 2 | ||||||||||
Settlement of convertible notes | 0 | 0 | ||||||||||
Settlement of Convertible Notes | (2,917) | |||||||||||
Exercise of convertible note hedge | 2,917 | |||||||||||
Repurchase and retirement of common stock | (508) | (508) | $ (508) | |||||||||
Stock repurchased and retired during period, Shares | (6,506) | 6,500 | ||||||||||
Settlement of warrants | 9,645 | |||||||||||
Stock-based compensation | 196 | 196 | ||||||||||
Tax benefit from stock-based compensation | 65 | 65 | ||||||||||
Balance at Mar. 31, 2017 | 4,060 | $ 3 | 1,049 | 3,027 | (19) | |||||||
Balance (in shares) at Mar. 31, 2017 | 308,367 | |||||||||||
Cumulative Effect on Retained Earnings, before Tax | 9 | |||||||||||
Cumulative Effect on Retained Earnings, Net of Tax | (8) | |||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (107) | |||||||||||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (1) | |||||||||||
Cumulative Effect on Retained Earnings, Tax | 1 | $ 612 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Total comprehensive income (loss) | 935 | 1,043 | (108) | |||||||||
Issuance of common stock | (42) | (42) | ||||||||||
Issuance of common stock (in shares) | 3,332 | |||||||||||
Repurchase and retirement of common stock | (601) | (601) | $ (601) | |||||||||
Stock repurchased and retired during period, Shares | (5,329) | 5,300 | ||||||||||
Stock-based compensation | 242 | 242 | ||||||||||
Balance at Mar. 31, 2018 | $ 4,595 | $ 3 | 657 | 4,062 | (127) | |||||||
Balance (in shares) at Mar. 31, 2018 | 306,000 | 306,370 | ||||||||||
Cumulative Effect on Retained Earnings, Net of Tax | $ 590 | $ (1) | ||||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ 81 | $ 22 | ||||||||||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (7) | $ 1 | ||||||||||
Cumulative Effect on Retained Earnings, Tax | $ 0 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Total comprehensive income (loss) | 1,093 | 1,019 | 74 | |||||||||
Issuance of common stock | (61) | (61) | ||||||||||
Issuance of common stock (in shares) | 2,722 | |||||||||||
Repurchase and retirement of common stock | 1,192 | 880 | 312 | $ (1,192) | ||||||||
Stock repurchased and retired during period, Shares | (10,985) | 11,000 | ||||||||||
Stock-based compensation | 284 | 284 | ||||||||||
Balance at Mar. 31, 2019 | $ 5,331 | $ 3 | $ 0 | $ 5,358 | $ (30) | |||||||
Balance (in shares) at Mar. 31, 2019 | 298,000 | 298,107 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 1,019 | $ 1,043 | $ 967 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion | 145 | 136 | 172 |
Acquisition-related contingent consideration | 14 | 0 | 0 |
Stock-based compensation | 284 | 242 | 196 |
Change in assets and liabilities: | |||
Receivables, net | (88) | (25) | (136) |
Other assets | (24) | 10 | 3 |
Accounts payable | 59 | (44) | 5 |
Accrued and other liabilities | 3 | 43 | 190 |
Deferred income taxes, net | (16) | 204 | 100 |
Deferred net revenue (online-enabled games) | 151 | 83 | 81 |
Net cash provided by operating activities | 1,547 | 1,692 | 1,578 |
INVESTING ACTIVITIES | |||
Capital expenditures | (119) | (107) | (123) |
Proceeds from maturities and sales of short-term investments | 1,688 | 3,166 | 1,281 |
Purchase of short-term investments | (1,342) | (2,287) | (1,917) |
Acquisition, net of cash acquired | (58) | (150) | 0 |
Net cash provided by (used in) investing activities | 169 | 622 | (759) |
FINANCING ACTIVITIES | |||
Payment of convertible notes | 0 | 0 | (163) |
Proceeds from issuance of common stock | 61 | 78 | 72 |
Cash paid to taxing authorities for shares withheld from employees | (122) | (120) | (130) |
Repurchase and retirement of common stock | (1,192) | (601) | (508) |
Net cash used in financing activities | (1,253) | (643) | (729) |
Effect of foreign exchange on cash and cash equivalents | (13) | 22 | (18) |
Increase in cash and cash equivalents | 450 | 1,693 | 72 |
Beginning cash and cash equivalents | 4,258 | 2,565 | 2,493 |
Ending cash and cash equivalents | 4,708 | 4,258 | 2,565 |
Supplemental cash flow information: | |||
Cash paid during the year for income taxes, net | 100 | 57 | 51 |
Cash paid during the year for interest | $ 42 | $ 42 | $ 43 |
Description Of Business And Bas
Description Of Business And Basis of Presentation | 12 Months Ended |
Mar. 31, 2019 | |
Description Of Business And Basis of Presentation [Abstract] | |
Description Of Business And Basis of Presentation | (1) DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION We are a global leader in digital interactive entertainment, with a mission to inspire the world to play. We develop, market, publish and deliver games and services that can be played and watched on a variety of platforms, including game consoles, PCs, mobile phones and tablets. In our games and services, we use brands that we either wholly own (such as Battlefield, The Sims, Apex Legends, Anthem, Need for Speed and Plants v. Zombies) or license from others (such as FIFA, Madden NFL and Star Wars). We develop and publish games and services across diverse genres, such as sports, first-person shooter, action, role-playing and simulation, and offer our games and services through diverse business models and distribution channels, such as retail, download, subscription and free-to-play. We believe that the breadth and depth of our portfolio and our flexibility in business models and distribution channels provide us with strategic advantages. A summary of our significant accounting policies applied in the preparation of our Consolidated Financial Statements follows: Consolidation The accompanying Consolidated Financial Statements include the accounts of Electronic Arts Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year is reported on a 52 - or 53 -week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ended March 31, 2019, 2018 and 2017 contained 52 weeks each and ended on March 30, 2019, March 31, 2018 and April 1, 2017 respectively. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. Such estimates include sales returns and allowances, provisions for doubtful accounts, accrued liabilities, offering periods for deferred net revenue, relative stand-alone selling price for identified performance obligations in our revenue transactions, income taxes, losses on royalty commitments, estimates regarding the recoverability of prepaid royalties, inventories, long-lived assets, assets acquired and liabilities assumed in business combinations, certain estimates related to the measurement and recognition of costs resulting from our stock-based payment awards, unrecognized tax benefits, deferred income tax assets and associated valuation allowances, as well as estimates used in our goodwill, intangibles and short-term investment impairment tests. These estimates generally involve complex issues and require us to make judgments, involve analysis of historical and future trends, can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from our estimates. Recently Adopted Accounting Standards On April 1, 2018, we adopted six new accounting standards which are discussed below. Other than Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers (the “New Revenue Standard” or “ASC 606”), these other accounting standards did not have a material impact to our Consolidated Financial Statements. In May 2014, the FASB issued the New Revenue Standard which replaced ASC Topic 605, Revenue Recognition (the “Old Revenue Standard” or “ASC 605”), including industry-specific requirements, and provided companies with a single principles-based revenue recognition model for recognizing revenue from contracts with customers. The core principle of the New Revenue Standard is that a company should recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. We adopted the New Revenue Standard on April 1, 2018 , the beginning of fiscal year 2019, using the modified retrospective method. We elected to apply the New Revenue Standard only to contracts that were not completed as of the adoption date. The comparative information for periods prior to April 1, 2018 has not been restated and continues to be reported under the accounting standards in effect for those periods. The net cumulative effect adjustment upon adoption resulted in an increase to retained earnings of $590 million , net of tax, and included the impact from the following adjustments to our Consolidated Balance Sheet at April 1, 2018: BALANCE SHEETS Balance at March 31, 2018 Adjustments due to New Revenue Standard Adoption Balance at April 1, 2018 Assets Receivables, net $ 385 $ 158 $ 543 Deferred income taxes, net 84 (64 ) 20 Liabilities Accrued and other current liabilities Sales return and price protection reserves $ — $ 158 $ 158 Deferred net revenue (other) 108 (3 ) 105 Deferred net revenue (online-enabled games) 1,622 (673 ) 949 Stockholders’ Equity Retained earnings $ 4,062 $ 590 $ 4,652 Accumulated other comprehensive income (loss) (127 ) 22 (105 ) The most significant impacts of the New Revenue Standard were: • The accounting for our transactions as multiple elements or “bundled” arrangements . Under prior software revenue recognition accounting standards, because we did not have vendor-specific objective evidence of fair value (“VSOE”) for unspecified future updates or online hosting, we were not able to account for performance obligations separately, and therefore, the entire sales price of most transactions that had multiple performance obligations was recognized ratably over the period we expected to provide the future updates and/or online hosting performance obligations (the “Estimated Offering Period”). Under the New Revenue Standard, this VSOE requirement was eliminated and was replaced with a requirement for us to determine our best estimate of the stand-alone selling price of each performance obligation and allocate the transaction price to each distinct performance obligation on a relative stand-alone selling price basis. Therefore, we are now able to account for performance obligations separately. For example, for an individual sale of a game with both online and offline functionality, we typically have three distinct performance obligations; (1) the software license; (2) a right to receive future updates; and (3) online hosting. The software license performance obligation represents the game that is delivered digitally or via physical disc at the time of sale and typically provides access to offline core game content. The future update rights performance obligation includes updates on a when-and-if-available basis such as software patches or updates, and/or additional free content to be delivered in the future. The online hosting performance obligation consists of providing the customer with a hosted connection for online playability. Since we do not sell the performance obligations on a stand-alone basis, we consider market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. For games with services under the New Revenue Standard, generally 75 percent of the sales price is allocated to the software license performance obligation and recognized at a point in time upon delivery (which is usually at or near the same time as the booking of the transaction), and the remaining 25 percent is allocated to the future update rights and the online hosting performance obligations and recognized ratably over the Estimated Offering Period. For sales prior to April 1, 2018, our deferred net revenue balances decreased by $740 million upon adoption of the New Revenue Standard because the software license performance obligation had been delivered in the prior fiscal year. • Mobile platform fees . The adoption of the New Revenue Standard also changed how we present mobile platform fees after March 31, 2018. Previously, mobile platform fees retained by third-party application storefronts such as the Apple App Store and Google Play, were reported on a net basis (i.e. as a reduction of net revenue) because we previously determined that generally, the third party was considered the primary obligor. Upon adoption of the New Revenue Standard, we concluded that we are the principal in the transactions, resulting in mobile platform fees now being reported within cost of revenue rather than as a reduction of net revenue. We recognized $64 million of mobile platform fees at April 1, 2018 as an increase to our deferred net revenue balances. Mobile platform fees for the fiscal year ended March 31, 2019 was $188 million and accordingly increased both service and other net revenue and cost of revenue by this amount relative to the same period a year ago. While this change also decreased our gross margin percentage, it does not have a material impact on our annual total gross profit or overall profitability. • Increased portion of our sales from games with services are presented as service revenue . The amount of the transaction price allocated to future update rights and the online hosting performance obligations are presented as service revenue under the New Revenue Standard (previously, revenue associated with future update rights were generally presented as product revenue). Therefore, for the fiscal year ended March 31, 2019, approximately $530 million of revenue for future update rights are now presented as service revenue under the New Revenue Standard as compared to product revenue under the Old Revenue Standard. • Sales returns and price protection reserves . Upon adoption, our sales returns and price protection reserves are now presented within accrued and other liabilities (previously, these allowances were presented as contra-assets within receivables on our Consolidated Balance Sheets). We reclassified $158 million of sales returns and price protection reserves on April 1, 2018. The adoption of the New Revenue Standard impacted our Consolidated Balance Sheet as of March 31, 2019 and our Consolidated Statements of Operations for the fiscal year ended March 31, 2019 as follows: As of March 31, 2019 BALANCE SHEETS (In millions) Under New Revenue Standard Under Old Revenue Standard $ Change Assets Receivables, net $ 623 $ 473 $ 150 Other current assets 313 311 2 Deferred income taxes, net 35 86 (51 ) Other assets 114 112 2 Liabilities Accrued and other current liabilities Sales return and price protection reserves $ 150 $ — $ 150 Deferred net revenue (other) 94 362 (268 ) Deferred net revenue (online-enabled games) 1,100 1,404 (304 ) Other liabilities 132 120 12 Stockholders’ Equity Retained earnings $ 5,358 $ 4,835 $ 523 Accumulated other comprehensive loss (30 ) (20 ) (10 ) Year Ended March 31, 2019 (In millions, except per share data) Under New Revenue Standard Under Old Revenue Standard $ Change % Change Net revenue: Product $ 1,593 $ 2,204 $ (611 ) (28 )% Service and other 3,357 2,639 718 27 % Total net revenue 4,950 4,843 107 2 % Cost of revenue: Product 517 637 (120 ) (19 )% Service and other 805 497 308 62 % Total cost of revenue 1,322 1,134 188 17 % Gross profit 3,628 3,709 (81 ) (2 )% Operating expenses: Total operating expenses 2,632 2,632 — — % Operating income 996 1,077 (81 ) (8 )% Interest and other income (expense), net 83 83 — — % Income before provision for income taxes 1,079 1,160 (81 ) (7 )% Provision for income taxes 60 74 (14 ) (19 )% Net income $ 1,019 $ 1,086 $ (67 ) (6 )% Earnings per share: Basic $ 3.36 $ 3.58 $ (0.22 ) (6 )% Diluted $ 3.33 $ 3.55 $ (0.22 ) (6 )% Refer to the following sections of our Consolidated Financial Statements for the additional disclosures required by the New Revenue Standard: • See Note 2 — Summary of Significant Accounting Policies , for our updated revenue accounting policy, including significant judgments, under ASC 606. For a discussion of our revenue recognition policy as it relates to revenue transactions accounted for prior to April 1, 2018, which were accounted for under ASC 605, refer to our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. • See Note 10 — Balance Sheet Details , for a discussion on our contract liabilities (“deferred net revenue”) and our remaining performance obligations. We had an immaterial amount of contract assets as of April 1, 2018 and March 31, 2019. • See Note 18 — Segment Information , for our disaggregations of revenue. In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Topic 825-10), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The adoption did not have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products . The amendments in the ASU are designed to provide guidance and eliminate diversity in the accounting for derecognition of prepaid stored-value product liabilities. Typically, a prepaid stored-value product liability is to be derecognized when it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. This is when the likelihood of the product holder exercising its remaining rights becomes remote. This estimate shall be updated at the end of each period. The adoption did not have a material impact on our Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update is intended to reduce the existing diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption did not have a material impact on our Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The adoption did not have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This update gives the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income that the FASB refers to as having been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act. The adoption did not have a material impact on our Consolidated Financial Statements. Other Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB issued this standard to increase transparency and comparability among organizations by recognizing right-of-use lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements , which provides entities with optional transition relief by allowing entities to use the effective date of the new lease standard as the date of initial application on transition, instead of at the beginning of the earliest comparative period presented. We will adopt this standard using this optional transition method beginning in the first quarter of fiscal year 2020, when the updated guidance is effective for us, and accordingly, we will not adjust prior periods for the effects of the new lease standard. Additionally, we will elect to apply the package of practical expedients, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our assessment of initial direct costs for any leases that exist prior to adoption of the new lease standard. While we are continuing to evaluate the impact of this new standard, we estimate approximately $200 million to $300 million would be recognized on our Consolidated Balance Sheet upon adoption as a result of establishing right-of-use lease assets and liabilities for our operating leases with terms of more than 12 months. We do not expect this new standard to have a material impact on our Consolidated Statements of Operations or Cash Flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update is intended to make more financial and nonfinancial hedging strategies eligible for hedge accounting. It eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The recognition of the amount historically excluded from the assessment of hedge effectiveness for our cash flow hedges under the new guidance will be recognized into the consolidated statement of operations at contract maturity rather than over the contract term, and will be recognized into net revenue or research and development expenses, as appropriate. ASU 2017-12 also amends the disclosure requirements by requiring revised tabular disclosures that focus on the effect of hedge accounting by income statement line. This update is effective for us beginning in the first quarter of fiscal year 2020. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. ASU 2016-13 is effective for us beginning in the first quarter of fiscal year 2021. We are currently evaluating the impact of this new standard on our Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This update changes the fair value measurement disclosure requirements. It summarizes the key provisions including the new, eliminated, and modified disclosure requirements. This update is effective for us beginning in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance in order to determine which implementation costs to defer and recognize as an asset. This update is effective for us beginning in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash, Cash Equivalents, and Short-Term Investments Cash equivalents consist of highly liquid investments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. Short-term investments consist of securities with original or remaining maturities of greater than three months at the time of purchase, and are accounted for as available-for-sale securities and are recorded at fair value. Cash, cash equivalents and short-term investments are available for use in current operations or other activities such as capital expenditures, business combinations and share repurchases. Unrealized gains and losses on our short-term investments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of tax, until either (1) the security is sold, (2) the security has matured, or (3) we determine that the fair value of the security has declined below its adjusted cost basis and the decline is other-than-temporary. Realized gains and losses on our short-term investments are calculated based on the specific identification method and are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net. Determining whether a decline in fair value is other-than-temporary 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. Our 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, severity of the impairment, reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, 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, and any contractual terms impacting the prepayment or settlement process. If we conclude that an investment is other-than-temporarily impaired, we recognize an impairment charge at that time in our Consolidated Statements of Operations. Based on our evaluation, we did not consider any of our investments to be other-than-temporarily impaired as of March 31, 2019 and 2018 . Property and Equipment, Net Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 years Computer equipment and software 3 to 6 years Equipment, furniture and fixtures, and other 3 to 5 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 10 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once the internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset’s estimated useful life, which is generally three years. The net book value of capitalized costs associated with internal-use software was $37 million and $35 million as of March 31, 2019 and 2018 , respectively. Acquisition-Related Intangibles and Other Long-Lived Assets We record acquisition-related intangible assets, such as developed and core technology, in connection with business combinations. We amortize the cost of acquisition-related intangible assets that have finite useful lives on a straight-line basis over the lesser of their estimated useful lives or the agreement terms, currently from one to nine years. We evaluate acquisition-related intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset group. This includes assumptions about future prospects for the business that the asset relates to and typically involves computations of the estimated future cash flows to be generated by these businesses. Based on these judgments and assumptions, we determine whether we need to take an impairment charge to reduce the value of the asset stated on our Consolidated Balance Sheets to reflect its estimated fair value. When we consider such assets to be impaired, the amount of impairment we recognize is measured by the amount by which the carrying amount of the asset exceeds its fair value. Goodwill Impairment In assessing impairment on our goodwill, we first analyze qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a goodwill impairment test. The qualitative factors we assess include long-term prospects of our performance, share price trends and market capitalization, and Company specific events. If we conclude it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not need to perform an impairment test. If based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value we will measure goodwill for impairment by applying fair value-based tests at the reporting unit level. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating results of that component, and (3) whether the component has dissimilar economic characteristics to other components. As of March 31, 2019, we have only one reportable segment, which represents our only operating segment. Revenue Recognition As discussed in Note 1 — Description of Business and Basis of Presentation , we adopted the New Revenue Standard on April 1, 2018. We derive revenue principally from sales of our games, and related extra-content and services that can be played by customers on a variety of platforms which include game consoles, PCs, mobile phones and tablets. Our product and service offerings include, but are not limited to, the following: • full games with both online and offline functionality (“Games with Services”), which generally includes (1) the initial game delivered digitally or via physical disc at the time of sale and typically provide access to offline core game content (“software license”); (2) updates on a when-and-if-available basis, such as software patches or updates, and/or additional free content to be delivered in the future (“future update rights”); and (3) a hosted connection for online playability (“online hosting”); • full games with online-only functionality which require an Internet connection to access all gameplay and functionality (“Online-Hosted Service Games”); • extra content related to Games with Services and Online-Hosted Service Games which provides access to additional in-game content; • subscriptions, such as Origin Access, Origin Access Premier and EA Access, that generally offers access to a selection of full games, in-game content, online services and other benefits typically for a recurring monthly or annual fee; and • licensing our games to third parties to distribute and host our games. Effective April 1, 2018, we evaluate revenue recognition based on the criteria set forth in ASC 606, Revenue from Contracts with Customers . We evaluate and recognize revenue by: • identifying the contract(s) 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 as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). Certain of our full game and/or extra content are sold to resellers with a contingency that the full game and/or extra content cannot be resold prior to a specific date (“Street Date Contingency”). We recognize revenue for transactions that have a Street Date Contingency when the Street Date Contingency is removed and the full game and/or extra content can be resold by the reseller. For digital full game and/or extra content downloads sold to customers, we recognize revenue when the full game and/or extra content is made available for download to the customer. Online-Enabled Games Games with Services. Our sales of Games with Services are evaluated to determine whether the software license, future update rights and the online hosting are distinct and separable. Sales of Games with Services are generally determined to have three distinct performance obligations: software license, future update rights, and the online hosting. Since we do not sell the performance obligations on a stand-alone basis, we consider market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. We recognize revenue from these arrangements upon transfer of control for each performance obligation. For the portion of the transaction price allocated to the software license, revenue is recognized when control of the license has been transferred to the customer. For the portion of the transaction price allocated to the future update rights and the online hosting, revenue is recognized as the services are provided. Online-Hosted Service Games. Sales of our Online-Hosted Service Games are determined to have one distinct performance obligation: the online hosting. We recognize revenue from these arrangements as the service is provided. Extra Content. Revenue received from sales of downloadable content are derived primarily from the sale of virtual currencies and digital in-game content to our customers to enhance their gameplay experience. Sales of extra content are accounted for in a manner consistent with the treatment for our Games with Services and Online-Hosted Service Games as discussed above, depending upon whether or not the extra content has offline functionality. Subscriptions Revenue from subscriptions is recognized over the subscription term as the service is provided. Licensing Revenue In certain countries, we utilize 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/or sales-based royalties. These arrangements typically include multiple performance obligations, such as a time-based license of software and future update rights. We recognize as revenue a portion of the minimum guarantee when we transfer control of the license of software (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Any sales-based royalties are generally recognized as the related sales occur by the licensee. Revenue Classification We classify our revenue as either product revenue or service and other revenue. Generally, performance obligations that are recognized upfront upon transfer of control are classified as product revenue, while performance obligations that are recognized over the Estimated Offering Period or subscription period as the services are provided are classified as service revenue. Product revenue . Our product revenue includes revenue allocated to the software license performance obligation. Product revenue also includes revenue from the licensing of software to third-parties. Service and other revenue . Our service revenue includes revenue allocated to the future update rights and the online hosting performance obligations. This also includes revenue allocated to the future update rights from the licensing of software to third-parties, software that offers an online-only service such as our Ultimate Team game mode, and subscription services. Significant Judgments around Revenue Arrangements Identifying performance obligations. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, (i.e., the customer can benefit from the goods or services either on its own or together with other resources that are readily available), and are distinct in the context of the contract (i.e., it is separately identifiable from other goods or services in the contract). To the extent a contract includes multiple promises, we must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. Determining the transaction price. The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our goods and services to the customer. Determining the transaction price often requires significant judgment, based on an assessment of contractual terms and business practices. It further includes review of variable consideration such as discounts, sales returns, price protection, and rebates, which is estimated at the time of the transaction. See below for additional information regarding our sales returns and price protection reserves. In addition, the transaction price does not include an estimate of the variable consideration related to sales-based royalties. Sales-based royalties are recognized as the sales occur. Allocating the transaction price. Allocating the transaction price requires that we determine an estimate of the relative stand-alone selling price for each distinct performance obligation. Determining the relative stand-alone selling price is inherently subjective, especially in situations where we do not sell the performance obligation on a stand-alone basis (which occurs in the majority of our transactions). In those situations, we determine the relative stand-alone selling price based on various observable inputs using all information that is reasonably available. Examples of observable inputs and information include: historical internal pricing data, cost plus margin analyses, third-party external pricing of similar or same products and services such as software licenses and maintenance support within the enterprise software industry. The results of our analysis resulted in a specific percentage of the transaction price being allocated to each performance obligation. Determining the Estimated Offering Period. The offering period is the period in which we offer to provide the future update rights and/or online hosting for the game and related extra content sold. Because the offering period is not an explicitly defined period, we must make an estimate of the offering period for the service related performance obligations (i.e., future update rights and online hosting). Determining the Estimated Offering Period is inherently subjective and is subject to regular revision. Generally, we consider the average period of time customers are online when estimating the offering period. We also consider the estimated period of time between the date a game unit is sold to a reseller and the date the reseller sells the game unit to the customer (i.e., time in channel). Based on these two factors, we then consider the method of distribution. For example, games sold at retail would have a composite offering period equal to the online gameplay period plus time in channel as opposed to digitally-distributed software licenses which are delivered immediately via digital download and therefore, the offering period is estimated to be only the online gameplay period. Additionally, we consider results from prior analyses, known and expected online gameplay trends, as well as disclosed service periods for competitors’ games in determining the Estimated Offering Period for future sales. We believe this provides a reasonable depiction of the transfer of future update rights and online hosting to our customers, as it is the best representation of the time period during which our games are played. We recognize revenue for future update rights and online hosting performance obligations ratably on a straight-line basis over this period as there is a consistent pattern of delivery for these performance obligations. These performance obligations are generally recognized over an estimated nine-month period beginning in the month after shipment for software licenses sold through retail and an estimated six-month period for digitally-distributed software licenses beginning in the month of sale. Deferred Net Revenue Because the majority of our sales transactions include future update rights and online hosting performance obligations, which are subject to a recognition period of generally six to nine months, our deferred net revenue balance is material. This balance increases from period to period by the revenue being deferred for current sales with these service obligations and is reduced by the recognition of revenue from prior sales that were deferred. Generally, revenue is recognized as the services are provided. Principal Agent Considerations We evaluate sales to end customers of our full games and related content via third-party storefronts, including digital storefronts such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple App Store, and Google Play Store, in order to determine whether or not we are acting as the principal in the sale to the end customer, which we consider in determining if revenue should be reported gross or net of fees retained by the third-party storefront. An entity is the principal if it controls a good or service before it is transferred to the end customer. Key indicators that we evaluate in determining gross versus net treatment 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 to the end customer; • which party has inventory risk before the specified good or service has been transferred to the end customer; and • which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, except as discussed below, we have determined that generally the third party is considered the principal to end customers for the sale of our full games and related content. We therefore report revenue related to these arrangements net of the fees retained by the storefront. However, for sales arrangements via Apple App Store and Google Play Store, EA is considered the principal to the end customer and thus, we report revenue on a gross basis and mobile platform fees are reported within cost of revenue. Payment Terms Substantially all of our transactions have payment terms, whether customary or on an extended basis, of less than one year; therefore, we generally do not adjust the transaction price for the effects of any potential financing components that may exist. Sales and Value-Added Taxes Revenue is recorded net of taxes assessed by governmental authorities that are imposed at the time of the specific revenue-producing transaction between us and our customer, such as sales and value-added taxes. Sales Returns and Price Protection Reserves Sales returns and price protection are considered variable consideration under ASC 606. We reduce revenue for estimated future returns and price protection which may occur with our distributors and retailers (“channel partners”). Price protection represents our practice to provide our channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the old wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. In certain countries we also have a practice for allowing channel partners to return older products in the channel in exchange for a credit allowance. When evaluating the adequacy of sales returns and price protection reserves, we analyze the following: historical credit allowances, current sell-through of our channel partners’ inventory of our products, current trends in retail and the video game industry, changes in customer demand, acceptance of our products, and other related factors. In addition, we monitor the volume of sales to our channel partners and their inventories, as substantial overstocking in the distribution channel could result in high returns or higher price protection in subsequent periods. Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our Consolidated Statements of Operations. Concentration of Credit Risk, Significant Customers, and Platform Partners We extend credit to various digital resellers, channel and platform partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. Although we generally do not require collateral, we perform ongoing credit evaluations of our customers and maintain reserves for potential credit losses. Invoices are aged based on contractual terms with our customers. The provision for doubtful accounts is recorded as a charge to general and administrative expense when a potential loss is identified. Losses are written off against the allowance when the receivable is determined to be uncollectible. At March 31, 2019 , we had two customers who accounted for approximately 34 percent and 33 percent of our consolidated gross receivables, respectively. At March 31, 2018 , we had three customers who accounted for 39 percent , 21 percent , and 10 percent of our consolidated gross receivables, respectively. A majority of our sales are made via digital resellers, channel and platform partners. During the fiscal years 2019, 2018, and 2017 , approximately 65 percent , 67 percent , and 64 percent , respectively, of our net revenue was derived from our top ten customers and/or platform partners. Though our products and services are available to consumers through a variety of retailers, digital resellers and directly through us, the concentration of our sales in one, or a few, large customers or platform partners could lead to a short-term disruption in our sales if one or more digital resellers, channel or platform partners significantly reduced their purchases or ceased to carry our products and services, and could make us more vulnerable to collection risk if one or more of these large customers or platform partners became unable to pay for our products or declared bankruptcy. Currently, a majority of our revenue is derived through sales of products and services playable on hardware consoles from Sony and Microsoft. For the fiscal years ended March 31, 2019, 2018 and 2017 , our net revenue for products and services on Sony’s PlayStation 3 and 4, and Microsoft’s Xbox 360 and One consoles (combined across all four platforms) was 66 percent , 70 percent , and 70 percent , respectively. These platform partners have significant influence over the products and services that we offer on their platforms. Our agreements with Sony and Microsoft typically give significant control to them over the approval, manufacturing and distribution of our products and services that are distributed through their platform, which could, in certain circumstances, leave us unable to get our products and services approved, manufactured or distributed to customers. Short-term investments are placed with high quality financial institutions or in short-duration, investment-grade securities. We limit the amount of credit exposure in any one financial institution or type of investment instrument. Royalties and Licenses Royalty-based obligations with content licensors and distribution affiliates are either paid in advance and capitalized as prepaid royalties or are accrued as incurred and subsequently paid. These royalty-based obligations are generally expensed to cost of revenue generally at the greater of the contractual rate or an effective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. Prepayments made to thinly capitalized independent software developers and co-publishing affiliates are generally made in connection with the development of a particular product, and therefore, we are generally subject to development risk prior to the release of the product. Accordingly, payments that are due prior to completion of a product are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of the product (primarily royalty-based in nature) are generally expensed as cost of revenue. Our contracts with some licensors include minimum guaranteed royalty payments, which are initially recorded as an asset and as a liability at the contractual amount when no performance remains with the licensor. When performance remains with the licensor, we record guarantee payments as an asset when actually paid and as a liability when incurred, rather than recording the asset and liability upon execution of the contract. Each quarter, we also evaluate the expected future realization of our royalty-based assets, as well as any unrecognized minimum commitments not yet paid to determine amounts we deem unlikely to be realized through product and service sales. Any impairments or losses determined before the launch of a product are generally charged to research and development expense. Impairments or losses determined post-launch are charged to cost of revenue. We evaluate long-lived royalty-based assets for impairment using undiscounted cash flows when impairment indicators exist. If impairment exists, then the assets are written down to fair value. Unrecognized minimum royalty-based commitments are accounted for as executory contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is abandoned ( i.e. , cease use) or the contractual rights to use the intellectual property are terminated. Advertising Costs We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. Cooperative advertising costs are recognized when incurred and are classified as marketing and sales expense if there is a separate identifiable benefit for which we can reasonably estimate the fair value of the benefit identified. Otherwise, they are classified as a reduction of revenue and are generally accrued when revenue is recognized. We then reimburse the channel partner when qualifying claims are submitted. We are also reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Otherwise, vendor reimbursements are recognized as a reduction of the cost incurred with the same vendor. Vendor reimbursements of advertising costs of $46 million , $45 million , and $53 million reduced marketing and sales expense for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. For the fiscal years ended March 31, 2019, 2018 and 2017 , advertising expense, net of vendor reimbursements, totaled approximately $271 million , $261 million , and $281 million , respectively. Software Development Costs Research and development costs, which consist primarily of software development costs, are expensed as incurred. We are required to capitalize software development costs incurred for computer software to be sold, leased or otherwise marketed after technological feasibility of the software is established or for development costs that have alternative future uses. Under our current practice of developing new games, the technological feasibility of the underlying software is not established until substantially all product development and testing is complete, which generally includes the development of a working model. Software development costs that have been capitalized to date have been insignificant. Foreign Currency Translation Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net foreign currency transaction gains (losses) of $(9) million , $18 million , and $(40) million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net foreign currency transaction gains (losses) are partially offset by net gains (losses) on our foreign currency forward contracts of $50 million , $(16) million , and $46 million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. See Note 5 for additional information on our foreign currency forward contracts. Income Taxes We recognize deferred tax assets and liabilities for both the expected impact of differences between the financial statement amount and the tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. We record a valuation allowance against deferred tax assets when it is considered more likely than not that all or a portion of our deferred tax assets will not be realized. In making this determination, we are required to give significant weight to evidence that can be objectively verified. It is generally difficult to conclude that a valuation allowance is not needed when there is significant negative evidence, such as cumulative losses in recent years. Forecasts of future taxable income are considered to be less objective than past results. Therefore, cumulative losses weigh heavily in the overall assessment. In addition to considering forecasts of future taxable income, we are also required to evaluate and quantify other possible sources of taxable income in order to assess the realization of our deferred tax assets, namely the reversal of existing deferred tax liabilities, the carry back of losses and credits as allowed under current tax law, and the implementation of tax planning strategies. Evaluating and quantifying these amounts involves significant judgments. Each source of income must be evaluated based on all positive and negative evidence; this evaluation involves assumptions about future activity. Certain taxable temporary differences that are not expected to reverse during the carry forward periods permitted by tax law cannot be considered as a source of future taxable income that may be available to realize the benefit of deferred tax assets. The U.S. Tax Act creates new U.S. taxes on foreign earnings. An accounting policy election is available to either recognize the deferred tax impacts of the U.S. taxes on foreign |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) FAIR VALUE MEASUREMENTS There are various valuation techniques used to estimate fair value, the primary one being the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. We measure certain financial and nonfinancial assets and liabilities at fair value on a recurring and nonrecurring basis. Fair Value Hierarchy The three levels of inputs that may be used to measure fair value are as follows: • Level 1 . Quoted prices in active markets for identical assets or liabilities. • Level 2 . Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3 . Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of March 31, 2019 and 2018 , our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2019 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 23 $ 23 $ — $ — Cash equivalents Money market funds 2,704 2,704 — — Cash equivalents Available-for-sale securities: Corporate bonds 327 — 327 — Short-term investments and cash equivalents U.S. Treasury securities 294 294 — — Short-term investments and cash equivalents U.S. agency securities 57 — 57 — Short-term investments and cash equivalents Commercial paper 233 — 233 — Short-term investments and cash equivalents Foreign government securities 58 — 58 — Short-term investments and cash equivalents Asset-backed securities 55 — 55 — Short-term investments and cash equivalents Certificates of deposit 2 — 2 — Short-term investments and cash equivalents Foreign currency derivatives 33 — 33 — Other current assets and other assets Deferred compensation plan assets (a) 11 11 — — Other assets Total assets at fair value $ 3,797 $ 3,032 $ 765 $ — Liabilities Contingent consideration (b) $ 136 $ — $ — $ 136 Accrued and other current liabilities Foreign currency derivatives 16 — 16 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 12 12 — — Other liabilities Total liabilities at fair value $ 164 $ 12 $ 16 $ 136 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Consideration Balance as of March 31, 2018 $ 122 Additions — Change in fair value 14 Balance as of March 31, 2019 $ 136 Fair Value Measurements at Reporting Date Using As of March 31, 2018 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 286 $ 286 $ — $ — Cash equivalents Money market funds 1,876 1,876 — — Cash equivalents Available-for-sale securities: Corporate bonds 624 — 624 — Short-term investments U.S. Treasury securities 210 210 — — Short-term investments U.S. agency securities 78 — 78 — Short-term investments Commercial paper 150 — 150 — Short-term investments and cash equivalents Foreign government securities 52 — 52 — Short-term investments Certificates of deposit 2 — 2 — Cash equivalents Foreign currency derivatives 4 — 4 — Other current assets and other assets Deferred compensation plan assets (a) 10 10 — — Other assets Total assets at fair value $ 3,292 $ 2,382 $ 910 $ — Liabilities Contingent consideration (b) $ 122 $ — $ — $ 122 Other liabilities Foreign currency derivatives 56 — 56 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 11 11 — Other liabilities Total liabilities at fair value $ 189 $ 11 $ 56 $ 122 (a) The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. (b) The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. We estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation. At March 31, 2019, the discount rates used ranged from 2.9 percent to 3.1 percent . See Note 7 for additional information regarding the Respawn acquisition. At March 31, 2018, the discount rates used ranged from 3.3 percent to 3.6 percent . |
Financial Instruments
Financial Instruments | 12 Months Ended |
Mar. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | (4) FINANCIAL INSTRUMENTS Cash and Cash Equivalents As of March 31, 2019 and 2018 , our cash and cash equivalents were $4,708 million and $4,258 million , respectively. Cash equivalents were valued using quoted market prices or other readily available market information. Short-Term Investments Short-term investments consisted of the following as of March 31, 2019 and 2018 (in millions): As of March 31, 2019 As of March 31, 2018 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 325 $ — $ (1 ) $ 324 $ 629 $ — $ (5 ) $ 624 U.S. Treasury securities 153 — — 153 212 — (2 ) 210 U.S. agency securities 44 — — 44 79 — (1 ) 78 Commercial paper 112 — — 112 109 — — 109 Foreign government securities 50 — — 50 53 — (1 ) 52 Asset-backed securities 53 — — 53 — — — — Certificates of deposit 1 — — 1 — — — — Short-term investments $ 738 $ — $ (1 ) $ 737 $ 1,082 $ — $ (9 ) $ 1,073 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2019 and 2018 (in millions): As of March 31, 2019 As of March 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 449 $ 448 $ 521 $ 520 Due 1 year through 5 years 287 287 561 553 Due after 5 years 2 2 — — Short-term investments $ 738 $ 737 $ 1,082 $ 1,073 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | (5) DERIVATIVE FINANCIAL INSTRUMENTS The assets or liabilities associated with our derivative instruments and hedging activities are recorded at fair value in other current assets/other assets, or accrued and other current liabilities/other liabilities, respectively, on our Consolidated Balance Sheets. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting. We transact business in various foreign currencies and have significant international sales and expenses denominated in foreign currencies, subjecting us to foreign currency risk. We purchase foreign currency forward contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in certain foreign currencies. Our cash flow risks are primarily related to fluctuations in the Euro, British pound sterling, Canadian dollar, Swedish krona, Australian dollar, Chinese yuan and South Korean won. In addition, we utilize foreign currency forward contracts to mitigate foreign currency exchange risk associated with foreign-currency-denominated monetary assets and liabilities, primarily intercompany receivables and payables. The foreign currency forward contracts not designated as hedging instruments generally have a contractual term of approximately three months or less and are transacted near month-end. We do not use foreign currency forward contracts for speculative trading purposes. Cash Flow Hedging Activities Certain of our forward contracts are designated and qualify as cash flow hedges. The effectiveness of the cash flow hedge contracts, including time value, is assessed monthly using regression analysis, as well as other timing and probability criteria. To qualify for hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows on hedged transactions. The derivative assets or liabilities associated with our hedging activities are recorded at fair value in other current assets/other assets, or accrued and other current liabilities/other liabilities, respectively, on our Consolidated Balance Sheets. The effective portion of gains or losses resulting from changes in the fair value of these hedges is initially reported, net of tax, as a component of accumulated other comprehensive income (loss) in stockholders’ equity. The gross amount of the effective portion of gains or losses resulting from changes in the fair value of these hedges is subsequently reclassified into net revenue or research and development expenses, as appropriate, in the period when the forecasted transaction is recognized in our Consolidated Statements of Operations. In the event that the gains or losses in accumulated other comprehensive income (loss) are deemed to be ineffective, the ineffective portion of gains or losses resulting from changes in fair value, if any, is reclassified to interest and other income (expense), net, in our Consolidated Statements of Operations. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur, within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions): As of March 31, 2019 As of March 31, 2018 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 295 $ — $ 10 $ 329 $ 2 $ 4 Forward contracts to sell $ 1,355 $ 31 $ 4 $ 1,575 $ 1 $ 48 The net impact of the effective portion of gains and losses from our cash flow hedging activities in our Consolidated Statements of Operations was a gain of $8 million and $36 million for the fiscal years ended March 31, 2019 and 2017, respectively, and a loss of $5 million for the fiscal year ended March 31, 2018. During fiscal years ended March 31, 2019, 2018 and 2017, we reclassified an immaterial amount of the ineffective portion of gains or losses resulting from changes in fair value into interest and other income (expense), net. The amount excluded from the assessment of hedge effectiveness and recognized in interest and other income (expense) was a gain of $25 million and $10 million during fiscal year ended March 31, 2019 and 2018. The amount excluded from the assessment of hedge effectiveness during the fiscal year ended March 31, 2017 was immaterial. Balance Sheet Hedging Activities Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives whereby the fair value of the contracts are reported as other current assets or accrued and other current liabilities on our Consolidated Balance Sheets, and gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Consolidated Statements of Operations. The gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-denominated monetary assets and liabilities, which are also reported in interest and other income (expense), net, in our Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions): As of March 31, 2019 As of March 31, 2018 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 449 $ — $ 2 $ 210 $ 1 $ 1 Forward contracts to sell $ 394 $ 2 $ — $ 257 $ — $ 3 The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2019, 2018 and 2017 , was as follows (in millions): Statement of Operations Classification Amount of Gain (Loss) Recognized in the Statement of Operations Year Ended March 31, 2019 2018 2017 Foreign currency forward contracts not designated as hedging instruments Interest and other income (expense), net $ 25 $ (26 ) $ 43 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | (6) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2016 $ 1 $ 14 $ (31 ) $ (16 ) Other comprehensive income (loss) before reclassifications (3 ) 54 (17 ) 34 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (36 ) — (37 ) Total other comprehensive income (loss), net of tax (4 ) 18 (17 ) (3 ) Balances as of March 31, 2017 $ (3 ) $ 32 $ (48 ) $ (19 ) Other comprehensive income (loss) before reclassifications (9 ) (126 ) 28 (107 ) Amounts reclassified from accumulated other comprehensive income (loss) 4 5 (10 ) (1 ) Total other comprehensive income (loss), net of tax (5 ) (121 ) 18 (108 ) Balances as of March 31, 2018 $ (8 ) $ (89 ) $ (30 ) $ (127 ) Cumulative-effect adjustment from the adoption of ASC 606 — 22 — 22 Cumulative-effect adjustment from the adoption of ASU 2018-02 — 1 — 1 Balances as of April 1, 2018 $ (8 ) $ (66 ) $ (30 ) $ (104 ) Other comprehensive income (loss) before reclassifications 6 96 (21 ) 81 Amounts reclassified from accumulated other comprehensive income (loss) 1 (8 ) — (7 ) Total other comprehensive income (loss), net of tax 7 88 (21 ) 74 Balances as of March 31, 2019 $ (1 ) $ 22 $ (51 ) $ (30 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the fiscal years ended March 31, 2019, 2018 and 2017 were as follows (in millions): Statement of Operations Classification Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Year Ended March 31, 2019 2018 2017 (Gains) losses on available-for-sale securities: Interest and other income (expense), net $ 1 $ 4 $ (1 ) Total, net of tax 1 4 (1 ) (Gains) losses on cash flow hedges from forward contracts: Net revenue (18 ) 10 (37 ) Research and development 10 (5 ) 1 Total, net of tax (8 ) 5 (36 ) (Gains) losses on foreign currency translation: Interest and other income (expense), net — (10 ) — Total, net of tax — (10 ) — Total net (gain) loss reclassified, net of tax $ (7 ) $ (1 ) $ (37 ) |
Business Combinations
Business Combinations | 12 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | (7) BUSINESS COMBINATIONS GameFly Cloud Gaming On May 3, 2018 , we acquired cloud gaming technology assets and personnel from a wholly-owned subsidiary of GameFly, Inc. based in Israel (“GameFly Cloud Gaming”) for total cash consideration of $50 million . The purchase price was allocated to the acquired net tangible and intangible assets based on their estimated fair values as of May 3, 2018 , resulting in $43 million allocated to specific intangible assets, and $7 million allocated to goodwill that consists largely of expected synergies and workforce. Substantially all of the $50 million is expected to be deductible for tax purposes. Subsequent to the acquisition, we also granted approximately $4 million in long-term equity in the form of restricted stock units to certain employees. The results of operations attributable to the assets and personnel acquired in the GameFly Cloud Gaming acquisition and the fair value of the assets acquired have been included in our Consolidated Financial Statements since the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our Consolidated Statements of Operations. During the fiscal year ended March 31, 2019, we completed one other acquisition that was not material to our Consolidated Financial Statements. Respawn Entertainment, LLC On December 1, 2017 , we completed our acquisition of Respawn Entertainment, LLC (“Respawn”), a leading game development studio and creators of games including the critically-acclaimed Titanfall franchise. The total purchase price was $273 million , which consisted of $151 million in cash and the acquisition date fair value of contingent consideration of $122 million . The purchase price was allocated to Respawn’s net tangible and intangible assets based upon their estimated fair values as of December 1, 2017 , resulting in $171 million being allocated to goodwill that consists largely of workforce and synergies with our existing business, all of which is expected to be deductible for tax purposes; $74 million being allocated to intangible assets acquired; and $28 million being allocated to net tangible assets acquired. The payment of the contingent consideration is based on the achievement of certain performance milestones through the end of calendar year 2022 at the latest. The maximum amount of contingent consideration we may be required to pay is $140 million . The fair value of the contingent consideration was included in other liabilities on our Consolidated Balance Sheet at March 31, 2018. During the fiscal year ended March 31, 2019, we recognized $14 million of contingent consideration expense in our Consolidated Statements of Operations as a performance milestone was met and the expected outcomes for other performance milestones became more positive. At March 31, 2019, the fair value of the contingent consideration of $136 million is included in accrued and other current liabilities. Subsequent to March 31, 2019, we paid $35 million of contingent consideration. Subsequent to the acquisition, in the fourth quarter of fiscal year 2018, we also granted an aggregate of $167 million of restricted stock unit awards of our common stock to Respawn employees that is being recognized over a four year period as stock-based compensation expense in research and development in our Consolidated Statements of Operations. The results of operations of Respawn and the fair value of the assets acquired and liabilities assumed have been included in our Consolidated Financial Statements since the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our Consolidated Statements of Operations. During the fiscal year ended March 31, 2017, there were no acquisitions. |
Goodwill And Acquisition-Relate
Goodwill And Acquisition-Related Intangibles, Net | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Acquisition-Related Intangibles, Net | (8) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2019 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,251 $ 14 $ (5 ) $ 2,260 Accumulated impairment (368 ) — — (368 ) Total $ 1,883 $ 14 $ (5 ) $ 1,892 The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2018 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,075 $ 171 $ 5 $ 2,251 Accumulated impairment (368 ) — — (368 ) Total $ 1,707 $ 171 $ 5 $ 1,883 Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Acquisition-related intangibles, consisted of the following (in millions): As of March 31, 2019 As of March 31, 2018 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 469 $ (427 ) $ 42 $ 417 $ (414 ) $ 3 Trade names and trademarks 161 (121 ) 40 161 (107 ) 54 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — In-process research and development 5 — 5 14 — 14 Total $ 725 $ (638 ) $ 87 $ 682 $ (611 ) $ 71 The fair value of acquisition-related intangible assets acquired in the GameFly Cloud Gaming acquisition during the three months ended June 30, 2018 was $43 million , all of which was allocated to developed and core technology, and has a useful life of approximately 4.0 years . Amortization of intangibles for the fiscal years ended March 31, 2019, 2018 and 2017 are classified in the Consolidated Statements of Operations as follows (in millions): Year Ended March 31, 2019 2018 2017 Cost of service and other $ 1 $ — $ 16 Cost of product 3 2 27 Operating expenses 23 9 6 Total $ 27 $ 11 $ 49 There were no impairment charges for acquisition-related intangible assets during fiscal years 2019 and 2018. During fiscal year 2017, we determined that the carrying value of one of our acquisition-related intangible assets was not recoverable. The acquisition-related intangible asset was measured using Level 3 inputs and was written down to a fair value of zero. We recognized an impairment charge of $15 million in cost of product revenue in our Consolidated Statements of Operations. Finite-lived acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, currently from 1 to 9 years . As of March 31, 2019 and 2018 , the weighted-average remaining useful life for acquisition-related intangible assets was approximately 3.2 years and 4.3 years , respectively. As of March 31, 2019 , future amortization of finite-lived acquisition-related intangibles that will be recorded in the Consolidated Statements of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2020 $ 30 2021 22 2022 22 2023 8 2024 — Thereafter — Total $ 82 |
Royalties And Licenses
Royalties And Licenses | 12 Months Ended |
Mar. 31, 2019 | |
Royalties And Licenses [Abstract] | |
Royalties And Licenses | (9) ROYALTIES AND LICENSES Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and distribution affiliates. License royalties consist of payments made to celebrities, professional sports organizations, movie studios and other organizations for our use of their trademarks, copyrights, personal publicity rights, content and/or other intellectual property. Royalty payments to independent software developers are payments for the development of intellectual property related to our games. Co-publishing and distribution royalties are payments made to third parties for the delivery of products. During fiscal years 2019 and 2018, we did not recognize any material losses or impairment charges on royalty-based commitments. During fiscal year 2017, we determined that the carrying value of certain of our royalty-based assets and certain previously unrecognized minimum royalty-based commitments were not recoverable. We recognized impairment charges of $23 million on the assets and a loss of $19 million on the commitments. Of the total $42 million loss, $10 million was included in cost of service revenue and $32 million was included in research and development expenses in our Consolidated Statements of Operations. The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of March 31, 2019 2018 Other current assets $ 53 $ 68 Other assets 30 34 Royalty-related assets $ 83 $ 102 At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates, content licensors, and/or independent software developers, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of March 31, 2019 2018 Accrued royalties $ 144 $ 171 Other liabilities 51 74 Royalty-related liabilities $ 195 $ 245 As of March 31, 2019 , we were committed to pay approximately $973 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty ( i.e. , delivery of the product or content or other factors) and such commitments were therefore not recorded in our Consolidated Financial Statements. See Note 13 for further information on our developer and licensor commitments. |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | (10) BALANCE SHEET DETAILS Property and Equipment, Net Property and equipment, net, as of March 31, 2019 and 2018 consisted of (in millions): As of March 31, 2019 2018 Computer, equipment and software $ 710 $ 744 Buildings 343 336 Leasehold improvements 139 139 Equipment, furniture and fixtures, and other 80 84 Land 66 66 Construction in progress 21 7 1,359 1,376 Less: accumulated depreciation (911 ) (923 ) Property and equipment, net $ 448 $ 453 Depreciation expense associated with property and equipment was $121 million , $120 million and $115 million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. Accrued and Other Current Liabilities Accrued and other current liabilities as of March 31, 2019 and 2018 consisted of (in millions): As of March 31, 2019 2018 Other accrued expenses $ 290 $ 260 Accrued compensation and benefits 238 282 Accrued royalties 144 171 Sales returns and price protection reserves 150 — Contingent consideration 136 — Deferred net revenue (other) 94 108 Accrued and other current liabilities $ 1,052 $ 821 Deferred net revenue (other) includes the deferral of subscription revenue, advertising revenue, licensing arrangements, and other revenue for which revenue recognition criteria has not been met. As a result of the adoption of the New Revenue Standard on April 1, 2018, our sales returns and price protection reserves are now classified within accrued and other liabilities (previously, these allowances were classified as a contra-asset within receivables on our Consolidated Balance Sheets). Deferred net revenue Deferred net revenue as of March 31, 2019 and April 1, 2018, as adjusted, consisted of (in millions): As of As of April 1, 2018 (as adjusted) Deferred net revenue (online-enabled games) $ 1,100 $ 949 Deferred net revenue (other) 94 105 Deferred net revenue (noncurrent) 23 5 Total Deferred net revenue $ 1,217 $ 1,059 During the fiscal year ended March 31, 2019 , $3,070 million of revenue was recognized, of which $1,054 million was included in the deferred revenue balance as of April 1, 2018, as adjusted. Remaining Performance Obligations As of March 31, 2019 , revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,217 million . These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. We expect to recognize substantially all of these balances as revenue over the next 12 months . |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) INCOME TAXES The components of our income before provision for income taxes for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows (in millions): Year Ended March 31, 2019 2018 2017 Domestic $ 170 $ 440 $ 382 Foreign 909 1,009 828 Income before provision for income taxes $ 1,079 $ 1,449 $ 1,210 Provision for income taxes for the fiscal years ended March 31, 2019, 2018 and 2017 consisted of (in millions): Current Deferred Total Year Ended March 31, 2019 Federal $ 29 $ (18 ) $ 11 State 5 — 5 Foreign 42 2 44 $ 76 $ (16 ) $ 60 Year Ended March 31, 2018 Federal $ 138 $ 197 $ 335 State 4 9 13 Foreign 61 (3 ) 58 $ 203 $ 203 $ 406 Year Ended March 31, 2017 Federal $ 86 $ 96 $ 182 State 3 9 12 Foreign 51 (2 ) 49 $ 140 $ 103 $ 243 Our effective tax rate and resulting provision for income taxes for the fiscal year ended March 31, 2018 were significantly impacted by the U.S. Tax Cuts and Jobs Act (the “U.S. Tax Act”), enacted on December 22, 2017. The U.S. Tax Act significantly revised the U.S. corporate income tax system by, among other things, lowering U.S. corporate income tax rate to 21 percent , generally implementing a territorial tax system and imposing a one-time transition tax on the deemed repatriation of undistributed earnings of foreign subsidiaries (the “Transition Tax”). We have concluded the accounting under the U.S. Tax Act within the time period set forth in SAB 118, the SEC guidance that allowed for a measurement period of up to one year after the enactment date of the U.S. Tax Act to finalize the recording of the related tax impacts, including the impacts of the Transition Tax, the remeasurement of U.S. deferred tax assets and liabilities as a result of the reduction of the U.S. corporate tax rate, and the accounting policy election related to U.S. taxes on foreign earnings. We recorded tax expense of $235 million related to the U.S. Tax Act for the fiscal year ended March 31, 2018, $192 million of which relates to the Transition Tax. During the fiscal year ended March 31, 2019 , we made no material adjustments to our provisional amounts recognized due to the U.S. Tax Act during the fiscal year ended March 31, 2018 . Upon adoption of ASU 2016-09 at the beginning of fiscal year 2018, we reflected excess tax benefits of $20 million and $43 million for the fiscal years ended March 31, 2019 and 2018 , respectively, in the Consolidated Statements of Operations as a component of the provision for income taxes. For fiscal year ended March 31, 2017 , excess tax benefits of $65 million was recognized in additional paid-in-capital in the Consolidated Balance Sheets. The differences between the statutory tax expense rate and our effective tax expense rate, expressed as a percentage of income before provision for income taxes, for the fiscal years ended March 31, 2019, 2018 and 2017 were as follows: Year Ended March 31, 2019 2018 2017 Statutory federal tax expense rate 21.0 % 31.5 % 35.0 % State taxes, net of federal benefit 0.7 % 0.8 % 1.0 % Differences between statutory rate and foreign effective tax rate (14.4 )% (19.1 )% (19.3 )% Tax reform (0.4 )% 16.2 % — % Excess tax benefit (1.9 )% (3.0 )% — % Research and development credits (2.4 )% (1.4 )% (0.7 )% Unremitted earnings of foreign subsidiaries — % — % 2.2 % Non-deductible stock-based compensation 2.3 % 2.7 % 2.3 % Other 0.7 % 0.3 % (0.4 )% Effective tax expense rate 5.6 % 28.0 % 20.1 % We generated income in lower tax jurisdictions primarily related to our European and Asia Pacific businesses that are headquartered in Switzerland. Prior to the U.S. Tax Act, a substantial majority of undistributed earnings of our foreign subsidiaries were considered to be indefinitely reinvested. As a result of the U.S. Tax Act, substantially all previously unremitted earnings for which no U.S. deferred tax liability had been accrued have now been subject to U.S. tax. Any future earnings of our foreign subsidiaries are generally available for repatriation without a material incremental U.S. tax cost. The components of net deferred tax assets, as of March 31, 2019 and 2018 consisted of (in millions): As of March 31, 2019 2018 Deferred tax assets: Accruals, reserves and other expenses $ 101 $ 81 Tax credit carryforwards 140 121 Stock-based compensation 33 24 Net operating loss & capital loss carryforwards 22 23 Total 296 249 Valuation allowance (162 ) (138 ) Deferred tax assets, net of valuation allowance 134 111 Deferred tax liabilities: Amortization and depreciation (28 ) (27 ) Change in tax accounting method (66 ) — Other (7 ) (2 ) Total (101 ) (29 ) Deferred tax assets, net of valuation allowance and deferred tax liabilities $ 33 $ 82 As of March 31, 2019, we maintained a valuation allowance of $162 million , primarily related to certain U.S. state deferred tax assets and foreign capital loss carryovers, due to uncertainty about the future realization of these assets. In determining the amount of deferred tax assets that are more likely than not to be realized, we evaluated the potential to realize the assets through the utilization of tax loss and credit carrybacks, the reversal of existing taxable temporary differences, future taxable income exclusive of the reversal of existing taxable temporary differences, and certain tax planning strategies. As of March 31, 2019, we have state net operating loss carry forwards of approximately $598 million of which approximately $7 million is attributable to various acquired companies. These carryforwards, if not fully realized, will begin to expire in 2029. We also have California and Canada tax credit carryforwards of $132 million and $5 million , respectively. The California and Canada tax credit carryforwards can be carried forward indefinitely. The total unrecognized tax benefits as of March 31, 2019, 2018 and 2017 were $417 million , $457 million and $389 million , respectively. A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Balance as of March 31, 2016 $ 331 Increases in unrecognized tax benefits related to prior year tax positions 3 Decreases in unrecognized tax benefits related to prior year tax positions (3 ) Increases in unrecognized tax benefits related to current year tax positions 64 Decreases in unrecognized tax benefits related to settlements with taxing authorities — Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (3 ) Changes in unrecognized tax benefits due to foreign currency translation (3 ) Balance as of March 31, 2017 389 Increases in unrecognized tax benefits related to prior year tax positions 10 Decreases in unrecognized tax benefits related to prior year tax positions (12 ) Increases in unrecognized tax benefits related to current year tax positions 75 Decreases in unrecognized tax benefits related to settlements with taxing authorities (7 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (2 ) Changes in unrecognized tax benefits due to foreign currency translation 4 Balance as of March 31, 2018 457 Increases in unrecognized tax benefits related to prior year tax positions — Decreases in unrecognized tax benefits related to prior year tax positions (41 ) Increases in unrecognized tax benefits related to current year tax positions 43 Decreases in unrecognized tax benefits related to settlements with taxing authorities (16 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (21 ) Changes in unrecognized tax benefits due to foreign currency translation (5 ) Balance as of March 31, 2019 $ 417 As of March 31, 2019 , approximately $236 million of the unrecognized tax benefits would affect our effective tax rate. Interest and penalties related to estimated obligations for tax positions taken in our tax returns are recognized in income tax expense in our Consolidated Statements of Operations. The combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current other liabilities was approximately $17 million as of March 31, 2019 and $18 million as of March 31, 2018 . We file income tax returns in the United States, including various state and local jurisdictions. Our subsidiaries file tax returns in various foreign jurisdictions, including Canada, France, Germany, Switzerland and the United Kingdom. We remain subject to income tax examination by the IRS for fiscal years after 2015. In addition, we remain subject to income tax examination for several other jurisdictions including in Germany for fiscal years after 2016, France for fiscal years after 2016, the United Kingdom for fiscal years after 2017, Canada for fiscal years after 2010, and Switzerland for fiscal years after 2009. We are also currently under income tax examination in the United States for fiscal year 2017, Germany for fiscal years 2013 through 2016, Spain for fiscal years 2014 through 2015, Sweden for fiscal years 2016 through 2017, and India for fiscal years 2009 through 2013. 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 involves multiple tax periods and jurisdictions, it is reasonably possible that a reduction of up to $10 million 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 the Company’s 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. Subsequent to the fiscal year ended March 31, 2019, we completed an intra-entity sale of some of our intellectual property rights to our Swiss subsidiary, where our international business is headquartered. The transaction did not result in a taxable gain. Under U.S. GAAP, any profit resulting from this intercompany transaction will be eliminated upon consolidation. However, the transaction resulted in a step-up of the Swiss tax deductible basis in the transferred intellectual property rights and, accordingly, created a temporary difference between the book basis and the tax basis of such intellectual property rights. As a result, this transaction will result in the recognition of a deferred tax asset, which we estimate at approximately $2.3 billion , subject to a realizability analysis. The deferred tax asset will be recognized as a one-time tax benefit in our consolidated financial statements during the three months ending June 30, 2019. This deferred tax asset will reverse over a 20-year period and is subject to a periodic realizability analysis. The deferred tax asset and the one-time tax benefit will be measured based on the Swiss tax rate expected to apply in the years the asset will be recovered. We will not recognize any deferred taxes related to the U.S. taxes on foreign earnings associated with this transfer due to our policy election to recognize these taxes as a period cost. We do not expect the transaction to impact our cash taxes or our operating cash flow in fiscal year 2020. |
Financing Arrangement
Financing Arrangement | 12 Months Ended |
Mar. 31, 2019 | |
Debt Instruments [Abstract] | |
Financing Arrangement | (12) FINANCING ARRANGEMENTS Senior Notes In February 2016 , we issued $600 million aggregate principal amount of 3.70% Senior Notes due March 1, 2021 (the “2021 Notes”) and $400 million aggregate principal amount of 4.80% Senior Notes due March 1, 2026 (the “2026 Notes,” and together with the 2021 Notes, the “Senior Notes”). Our proceeds were $989 million , net of discount of $2 million and issuance costs of $9 million . Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2021 Notes and the 2026 Notes using the effective interest rate method. The effective interest rate is 3.94% for the 2021 Notes and 4.97% for the 2026 Notes. Interest is payable semiannually in arrears, on March 1 and September 1 of each year. The carrying and fair values of the Senior Notes are as follows (in millions): As of As of Senior Notes: 3.70% Senior Notes due 2021 $ 600 $ 600 4.80% Senior Notes due 2026 400 400 Total principal amount $ 1,000 $ 1,000 Unaccreted discount (1 ) (2 ) Unamortized debt issuance costs (5 ) (6 ) Net carrying value of Senior Notes $ 994 $ 992 Fair value of Senior Notes (Level 2) $ 1,039 $ 1,038 As of March 31, 2019 , the remaining life of the 2021 Notes and 2026 Notes is approximately 1.9 years and 6.9 years , respectively. The Senior Notes are senior unsecured obligations and rank equally with all our other existing and future unsubordinated obligations and any indebtedness that we may incur from time to time under our Credit Facility. The 2021 Notes and the 2026 Notes are redeemable at our option at any time prior to February 1, 2021 or December 1, 2025, respectively, subject to a make-whole premium. Within one and three months of maturity, we may redeem the 2021 Notes or the 2026 Notes, respectively, at a redemption price equal to 100% of the aggregate principal amount plus accrued and unpaid interest. In addition, upon the occurrence of a change of control repurchase event, the holders of the Senior Notes may require us to repurchase all or a portion of the Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The Senior Notes also include covenants that limit our ability to incur liens on assets and to enter into sale and leaseback transactions, subject to certain allowances. Credit Facility In March 2015 , we entered into a $500 million senior unsecured revolving credit facility (“Credit Facility”) with a syndicate of banks. The Credit Facility terminates on March 19, 2020 . The Credit Facility contains an option to arrange with existing lenders and/or new lenders to provide up to an aggregate of $250 million in additional commitments for revolving loans. Proceeds of loans made under the Credit Facility may be used for general corporate purposes. The loans bear interest, at our option, at the base rate plus an applicable spread or an adjusted LIBOR rate plus an applicable spread, in each case with such spread being determined based on our consolidated leverage ratio for the preceding fiscal quarter. We are also obligated to pay other customary fees for a credit facility of this size and type. Interest is due and payable in arrears quarterly for loans bearing interest at the base rate and at the end of an interest period (or at each three month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the adjusted LIBOR rate. Principal, together with all accrued and unpaid interest, is due and payable on March 19, 2020 . The credit agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability to, among other things, incur subsidiary indebtedness, grant liens, dispose of all or substantially all assets and pay dividends or make distributions, in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with a capitalization ratio and maintain a minimum level of total liquidity. The credit agreement contains customary events of default, including among others, non-payment defaults, covenant defaults, cross-defaults to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults and a change of control default, in each case, subject to customary exceptions for a credit facility of this size and type. The occurrence of an event of default could result in the acceleration of the obligations under the credit facility, an obligation by any guarantors to repay the obligations in full and an increase in the applicable interest rate. As of March 31, 2019 and 2018 , no amounts were outstanding under the Credit Facility. $2 million of debt issuance costs that were paid in connection with obtaining this credit facility are being amortized to interest expense over the 5 -year term of the Credit Facility. Interest Expense The following table summarizes our interest expense recognized for fiscal years 2019, 2018, and 2017 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31, 2019 2018 2017 Amortization of debt discount (1 ) — (2 ) Amortization of debt issuance costs (2 ) (2 ) (2 ) Coupon interest expense (41 ) (42 ) (42 ) Other interest expense (1 ) — (1 ) Total interest expense $ (45 ) $ (44 ) $ (47 ) |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | (13) COMMITMENTS AND CONTINGENCIES Lease Commitments As of March 31, 2019 , we leased certain facilities, furniture and equipment under non-cancelable operating lease agreements. We were required to pay property taxes, insurance and normal maintenance costs for certain of these facilities and any increases over the base year of these expenses on the remainder of our facilities. Development, Celebrity, League and Content Licenses: Payments and Commitments The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers (“independent artists” or “third-party developers”). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain celebrity, league and content license contracts that contain minimum guarantee payments and marketing commitments that may not be dependent on any deliverables. Celebrities and organizations with whom we have contracts include, but are not limited to: FIFA (Fédération Internationale de Football Association), FIFPRO Foundation, FAPL (Football Association Premier League Limited), and DFL Deutsche Fußball Liga E.V. (German Soccer League) (professional soccer); Liga Nacional De Futbol Profesional (professional soccer); National Basketball Association and National Basketball Players Association (professional basketball); National Hockey League and NHL Players’ Association (professional hockey); National Football League Properties and PLAYERS Inc. (professional football); William Morris Endeavor Entertainment LLC (professional mixed martial arts); ESPN (content in EA SPORTS games); Disney Interactive (Star Wars); and Fox Digital Entertainment, Inc. (The Simpsons). These developer and content license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the minimum guaranteed payments and advances against royalties due under royalty-bearing licenses and services agreements, the majority of which are conditional upon performance by the counterparty. These minimum guarantee payments and any related marketing commitments are included in the table below. The following table summarizes our minimum contractual obligations as of March 31, 2019 (in millions): Fiscal Year Ending March 31, Total 2020 2021 2022 2023 2024 Thereafter Unrecognized commitments Developer/licensor commitments $ 973 $ 214 $ 292 $ 240 $ 93 $ 75 $ 59 Marketing commitments 377 94 97 85 37 37 27 Operating leases 264 52 54 44 36 28 50 Senior Notes interest 175 38 41 19 19 19 39 Other purchase obligations 92 40 30 19 3 — — Total unrecognized commitments 1,881 438 514 407 188 159 175 Recognized commitments Senior Notes principal and interest 1,003 3 600 — — — 400 Transition and other taxes 90 22 23 24 3 5 13 Licensing commitments 78 25 26 27 — — — Total recognized commitments 1,171 50 649 51 3 5 413 Total Commitments $ 3,052 $ 488 $ 1,163 $ 458 $ 191 $ 164 $ 588 The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of March 31, 2019 ; however, certain payment obligations may be accelerated depending on the performance of our operating results. Furthermore, up to $30 million of the unrecognized amounts in the table above may be payable, at the licensor’s election, in shares of our common stock, subject to a $10 million maximum during any fiscal year. The number of shares to be issued will be based on their fair market value at the time of issuance. In addition to what is included in the table above, as of March 31, 2019 , we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $209 million , of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. In addition to what is included in the table above, as of March 31, 2019 , we may be required to pay up to $140 million of cash consideration in connection with the December 1, 2017 acquisition of Respawn based on the achievement of certain performance milestones through the end of calendar year 2022. As of March 31, 2019 , we have recorded $136 million of contingent consideration on our Consolidated Balance Sheet representing the estimated fair value. Subsequent to March 31, 2019, we paid $35 million of contingent consideration as a performance milestone was met. As of the date of this filing, the remaining maximum amount that we may be required to pay is $105 million . Total rent expense for our operating leases was $100 million , $92 million and $91 million for the fiscal years ended March 31, 2019, 2018 and 2017, respectively. Legal Proceedings On July 29, 2010, Michael Davis, a former NFL running back, filed a putative class action in the United States District Court for the Northern District of California against the Company, alleging that certain past versions of Madden NFL included the images of certain retired NFL players without their permission. The parties reached a settlement in this matter in March 2019 that was not material to the Company’s financial results and on May 7, 2019, the United States District Court for the Northern District of California dismissed the case. Governmental authorities in Belgium have sought to limit or discontinue the use of in-game mechanics involving a randomized selection of virtual items. On August 10, 2018, we were notified that the Belgian Gambling Commission made a referral to the Belgian Public Prosecutor’s Office regarding the use such mechanics in the FIFA Ultimate Team service included in FIFA 18 . On February 1, 2019, we discontinued the sale of FIFA Points in Belgium after discussions with Belgian authorities. We do not expect Belgian authorities to pursue the matter further. The Company does not believe that its products and services violate applicable gambling laws and continues to engage with appropriate governmental authorities in Belgium. We are also subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Consolidated Financial Statements. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Mar. 31, 2019 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Preferred Stock | (14) PREFERRED STOCK As of March 31, 2019 and 2018 , we had 10 million shares of preferred stock authorized but unissued. The rights, preferences, and restrictions of the preferred stock may be designated by our Board of Directors without further action by our stockholders. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation And Employee Benefit Plans | (15) STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS Valuation Assumptions We recognize compensation cost for stock-based awards to employees based on the awards’ estimated grant-date fair value using a straight-line approach over the service period for which such awards are expected to vest. We account for forfeitures as they occur. The estimation of the fair value of market-based restricted stock units, stock options and ESPP purchase rights is affected by assumptions regarding subjective and complex variables. Generally, our assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. We estimate the fair value of our stock-based awards as follows: • Restricted Stock Units and Performance-Based Restricted Stock Units . The fair value of restricted stock units and performance-based restricted stock units (other than market-based restricted stock units) is determined based on the quoted market price of our common stock on the date of grant. • Market-Based Restricted Stock Units . Market-based restricted stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “market-based restricted stock units”). The fair value of our market-based restricted stock units is estimated using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. • Stock Options and Employee Stock Purchase Plan . The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2000 Employee Stock Purchase Plan, as amended (“ESPP”), respectively, is estimated using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility and implied volatility of publicly-traded options on our common stock. An expected term is estimated based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. There were an insignificant number of stock options granted during fiscal years 2019, 2018, and 2017 . The estimated assumptions used in the Black-Scholes valuation model to value our ESPP purchase rights were as follows: ESPP Purchase Rights Year Ended March 31, 2019 2018 2017 Risk-free interest rate 2.2 - 2.5% 1.1 - 2.0% 0.5 - 0.8% Expected volatility 29 - 33% 28 - 30% 25 - 32% Weighted-average volatility 33 % 29 % 27 % Expected term 6 - 12 months 6 - 12 months 6 - 12 months Expected dividends None None None The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Year Ended March 31, 2019 2018 2017 Risk-free interest rate 2.6 % 1.5 - 1.6% 0.8 % Expected volatility 16 - 47% 17 - 46% 16 - 57% Weighted-average volatility 28 % 28 % 29 % Expected dividends None None None Summary of Plans and Plan Activity Equity Incentive Plans Our 2000 Equity Incentive Plan, as amended, (the “Equity Plan”) allows us to grant options to purchase our common stock and to grant restricted stock, restricted stock units and stock appreciation rights to our employees, officers, and directors. Pursuant to the Equity Plan, incentive stock options may be granted to employees and officers and non-qualified options may be granted to employees, officers, and directors, at not less than 100 percent of the fair market value on the date of grant. Approximately 15.7 million options or 11.0 million restricted stock units were available for grant under our Equity Plan as of March 31, 2019 . Stock Options Options granted under the Equity Plan generally expire ten years from the date of grant. All outstanding options are fully vested and exercisable. The following table summarizes our stock option activity for the fiscal year ended March 31, 2019 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2018 1,615 $ 30.28 Granted 5 106.55 Exercised (245 ) 30.00 Forfeited, cancelled or expired — — Outstanding as of March 31, 2019 1,375 $ 30.63 4.71 $ 98 Vested and expected to vest 1,375 $ 30.63 4.71 $ 98 Exercisable as of March 31, 2019 1,375 $ 30.63 4.71 $ 98 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2019 , which would have been received by the option holders had all the option holders exercised their options as of that date. The total intrinsic values of stock options exercised during fiscal years 2019, 2018, and 2017 were $24 million , $43 million and $39 million , respectively. We issue new common stock from our authorized shares upon the exercise of stock options. The following table summarizes outstanding and exercisable stock options as of March 31, 2019 : Options Outstanding and Exercisable Range of Exercise Prices Number of Shares (in thousands) Weighted- Average Remaining Contractual Term (in years) Weighted- Average Exercise Prices Potential Dilution $11.53 - $22.42 52 0.62 $ 19.99 — % 26.25 - 26.25 670 4.59 26.25 0.3 % 33.60 - 37.12 653 5.16 35.97 0.2 % $11.53 - $37.12 1,375 4.71 $ 30.63 0.5 % Potential dilution is computed by dividing the options in the related range of exercise prices by 298 million shares of common stock, which were issued and outstanding as of March 31, 2019 . Restricted Stock Units We grant restricted stock units under our Equity Plan to employees worldwide. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units is typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Vesting for restricted stock units is based on the holders’ continued employment with us through each applicable vest date. If the vesting conditions are not met, unvested restricted stock units will be forfeited. Our restricted stock units generally vest over three to four years. Each restricted stock unit granted reduces the number of shares available for grant by 1.43 shares under our Equity Plan. The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2019 : Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Values Outstanding as of March 31, 2018 5,948 $ 94.57 Granted 2,169 128.76 Vested (2,541 ) 88.09 Forfeited or cancelled (616 ) 109.09 Outstanding as of March 31, 2019 4,960 $ 111.03 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant. The weighted-average grant date fair values of restricted stock units granted during fiscal years 2019, 2018, and 2017 were $128.76 , $110.05 and $76.60 respectively. The fair values of restricted stock units that vested during fiscal years 2019, 2018, and 2017 were $300 million , $289 million and $320 million , respectively. Performance-Based Restricted Stock Units Our performance-based restricted stock units cliff vest after a four-year performance period contingent upon the achievement of pre-determined performance-based milestones based on our non-GAAP net revenue and free cash flow as well as service conditions. If these performance-based milestones are not met but service conditions are met, the performance-based restricted stock units will not vest, in which case any compensation expense we have recognized to date will be reversed. Each quarter, we update our assessment of the probability that the non-GAAP net revenue and free cash flow performance milestones will be achieved. We amortize the fair values of performance-based restricted stock units over the requisite service period. The performance-based restricted stock units contain threshold, target and maximum milestones for each of non-GAAP net revenue and free cash flow. The number of shares of common stock to be issued at vesting will range from zero percent to 200 percent of the target number of performance-based restricted stock units attributable to each performance-based milestone based on the company’s performance as compared to these threshold, target and maximum performance-based milestones. Each performance-based milestone is weighted evenly where 50 percent of the total performance-based restricted stock units that vest will be determined based on non-GAAP net revenue and the other 50 percent will be determined based on free cash flow. The number of shares that vest based on each performance-based milestone is independent from the other. The following table summarizes our performance-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the fiscal year ended March 31, 2019 : Performance- Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2018 796 $ 110.51 Granted — — Forfeited or cancelled (217 ) 110.51 Outstanding as of March 31, 2019 579 $ 110.51 Market-Based Restricted Stock Units Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and service conditions. If these market conditions are not met but service conditions are met, the market-based restricted stock units will not vest; however, any compensation expense we have recognized to date will not be reversed. The number of shares of common stock to be issued at vesting will range from zero percent to 200 percent of the target number of market-based restricted stock units based on our total stockholder return (“TSR”) relative to the performance of companies in the NASDAQ-100 Index for each measurement period, over either a one-year, two-year cumulative and three-year cumulative period. The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the year ended March 31, 2019 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2018 1,342 $ 118.35 Granted 573 185.24 Vested (415 ) 98.48 Forfeited or cancelled (542 ) 136.91 Outstanding as of March 31, 2019 958 $ 156.49 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2019, 2018, and 2017 were $185.24 , $140.93 , and $98.04 , respectively. The fair values of market-based restricted stock units that vested during fiscal years 2019, 2018, and 2017 were $54 million , $48 million , and $42 million , respectively. ESPP Pursuant to our ESPP, eligible employees may authorize payroll deductions of between 2 percent and 10 percent of their compensation to purchase shares of common stock at 85 percent 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 following table summarizes our ESPP activity for fiscal years ended March 31, 2019, 2018 and 2017 : Shares Issued Exercise Prices for Purchase Rights Weighted-Average Fair Values of Purchase Rights Fiscal Year 2017 0.7 $54.60 - $67.56 $ 17.93 Fiscal Year 2018 0.6 $67.56 - $99.82 $ 21.57 Fiscal Year 2019 0.5 $89.46 - $107.51 $ 31.88 The fair values were estimated on the date of grant using the Black-Scholes valuation model. We issue new common stock out of the ESPP’s pool of authorized shares. As of March 31, 2019 , 6.3 million shares were available for grant under our ESPP. Stock-Based Compensation Expense The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 2019 2018 2017 Cost of revenue $ 4 $ 3 $ 3 Research and development 184 146 109 Marketing and sales 33 32 31 General and administrative 63 61 53 Stock-based compensation expense $ 284 $ 242 $ 196 During the fiscal years ended March 31, 2019, 2018 and 2017 , we recognized $40 million , $29 million and $43 million , respectively, of deferred income tax benefit related to our stock-based compensation expense. As of March 31, 2019 , our total unrecognized compensation cost related to restricted stock units, market-based restricted stock units, and performance-based restricted stock units was $451 million and is expected to be recognized over a weighted-average service period of 1.8 years . Of the $451 million of unrecognized compensation cost, $394 million relates to restricted stock units, $45 million relates to market-based restricted stock units, and $12 million relates to performance-based restricted stock units at a 67 percent average payout. As of March 31, 2019 , there were no unrecognized compensation cost related to stock options as they were fully vested. Deferred Compensation Plan We have a Deferred Compensation Plan (“DCP”) for the benefit of a select group of management or highly compensated employees and directors, which is unfunded and intended to be a plan that is not qualified within the meaning of section 401(a) of the Internal Revenue Code. The DCP permits the deferral of the annual base salary and/or director cash compensation up to a maximum amount. The deferrals are held in a separate trust, which has been established by us to administer the DCP. The trust is a grantor trust and the specific terms of the trust agreement provide that the assets of the trust are available to satisfy the claims of general creditors in the event of our insolvency. The assets held by the trust are classified as trading securities and are held at fair value on our Consolidated Balance Sheets. The assets and liabilities of the DCP are presented in other assets and other liabilities on our Consolidated Balance Sheets, respectively, with changes in the fair value of the assets and in the deferred compensation liability recognized as compensation expense. The estimated fair value of the assets was $11 million and $10 million as of March 31, 2019 and 2018 , respectively. As of March 31, 2019 and 2018 , $12 million and $11 million were recorded, respectively, to recognize undistributed deferred compensation due to employees. 401(k) Plan, Registered Retirement Savings Plan and ITP Plan We have a 401(k) plan covering substantially all of our U.S. employees, a Registered Retirement Savings Plan covering substantially all of our Canadian employees, and an ITP pension plan covering substantially all our Swedish employees. These plans permit us to make discretionary contributions to employees’ accounts based on our financial performance. We contributed an aggregate of $43 million , $31 million and $28 million to these plans in fiscal years 2019, 2018, and 2017 , respectively. Stock Repurchase Program In May 2015, our Board of Directors authorized a two-year program to repurchase up to $1 billion of our common stock. We repurchased approximately 0.3 million and 6.5 million shares for approximately $31 million and $508 million under this program, respectively, during the fiscal years ended March 31, 2018 and 2017 . We completed repurchases under the May 2015 program in April 2017. In May 2017, a Special Committee of our Board of Directors, on behalf of the full Board of Directors, authorized a program to repurchase up to $1.2 billion of our common stock. We repurchased approximately 0.6 million and 5.0 million shares for approximately $76 million and $570 million under this program, respectively, during the fiscal years ended March 31, 2019 and 2018 . This program was superseded and replaced by a new stock repurchase program approved in May 2018. In May 2018, a Special Committee of our Board of Directors, on behalf of the full Board of Directors, authorized a program to repurchase up to $2.4 billion of our common stock. This stock repurchase program supersedes and replaces the May 2017 program, and expires on May 31, 2020. Under this program, we may purchase stock in the open market or through privately-negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares under this program and it may be modified, suspended or discontinued at any time. We repurchased approximately 10.4 million shares for approximately $1,116 million under this program during the fiscal year ended March 31, 2019 . We are actively repurchasing shares under this program. The following table summarizes total shares repurchased during fiscal years 2019, 2018, and 2017 : May 2015 Program May 2017 Program May 2018 Program Total (In millions) Shares Amount Shares Amount Shares Amount Shares Amount Fiscal Year 2017 6.5 $ 508 — $ — — $ — 6.5 $ 508 Fiscal Year 2018 0.3 $ 31 5.0 $ 570 — $ — 5.3 $ 601 Fiscal Year 2019 — $ — 0.6 $ 76 10.4 $ 1,116 11.0 $ 1,192 |
Interest And Other Income (Expe
Interest And Other Income (Expense), Net | 12 Months Ended |
Mar. 31, 2019 | |
Interest and Other Income [Abstract] | |
Interest And Other Income (Expense), Net | (16) INTEREST AND OTHER INCOME (EXPENSE), NET Interest and other income (expense), net, for the fiscal years ended March 31, 2019, 2018 and 2017 consisted of (in millions): Year Ended March 31, 2019 2018 2017 Interest expense (45 ) (44 ) (47 ) Interest income 88 50 25 Net gain (loss) on foreign currency transactions (9 ) 18 (40 ) Net gain (loss) on foreign currency forward contracts 50 (16 ) 46 Other income (expense), net (1 ) 7 2 Interest and other income (expense), net $ 83 $ 15 $ (14 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | (17) EARNINGS PER SHARE The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, ESPP purchase rights, warrants, and other convertible securities using the treasury stock method. Year Ended March 31, (In millions, except per share amounts) 2019 2018 2017 Net income $ 1,019 $ 1,043 $ 967 Shares used to compute earnings per share: Weighted-average common stock outstanding — basic 303 308 303 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 3 4 4 Dilutive potential common shares related to the Convertible Notes (a) — — 1 Dilutive potential common shares related to the Warrants (a) — — 6 Weighted-average common stock outstanding — diluted 306 312 314 Earnings per share: Basic $ 3.36 $ 3.39 $ 3.19 Diluted $ 3.33 $ 3.34 $ 3.08 (a) See Note 10 — Financing Arrangements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017, for additional information regarding the potential dilutive shares related to our Convertible Notes and Warrants. The Convertible Notes matured on July 15, 2016 and the Warrants expired on January 12, 2017. For the fiscal year ended March 31, 2019 , 2 million of restricted stock units and market-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. Our performance-based restricted stock units, which are considered contingently issuable shares, are also excluded from the treasury stock method computation because the related performance-based milestones were not achieved as of the end of the fiscal years ended March 31, 2019 and 2018 . For the fiscal years ended March 31, 2018 and 2017 , an immaterial amount of restricted stock units and market-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | (18) SEGMENT INFORMATION Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. Our CODM currently reviews total company operating results to assess overall performance and allocate resources. As of March 31, 2019 , we have only one reportable segment, which represents our only operating segment. Information about our total net revenue by composition and by platform for the fiscal years ended March 31, 2019, 2018 and 2017 is presented below (in millions): Year Ended March 31, 2019 2018 2017 Net revenue by composition Full game downloads $ 680 $ 707 $ 659 Live services 2,216 2,083 1,589 Mobile 814 660 626 Total Digital 3,710 3,450 2,874 Packaged goods and other 1,240 1,700 1,971 Net revenue $ 4,950 $ 5,150 $ 4,845 Digital net revenue includes full-game downloads, live services, and mobile revenue. Full game downloads includes revenue from digital sales of full games on console and PC. Live services includes revenue from sales of extra content for console, PC, browser games, game software licensed to our third-party publishing partners who distribute our games digitally, subscriptions, and advertising. Mobile includes revenue from the sale of full games and extra content on mobile phones and tablets. Packaged goods net revenue includes revenue from software that is sold physically. This includes (1) net revenue from game software sold physically through traditional channels such as brick and mortar retailers, and (2) our software licensing revenue from third parties (for example, makers of console platforms, personal computers or computer accessories) who include certain of our products for sale with their products (for example, OEM bundles). Other revenue includes our non-software licensing revenue. Year Ended March 31, 2019 2018 2017 Platform net revenue Console $ 3,333 $ 3,635 $ 3,390 PC / Browser 780 827 773 Mobile 824 672 627 Other 13 16 55 Net revenue $ 4,950 $ 5,150 $ 4,845 Information about our operations in North America and internationally as of and for the fiscal years ended March 31, 2019, 2018 and 2017 is presented below (in millions): Year Ended March 31, 2019 2018 2017 Net revenue from unaffiliated customers North America $ 1,906 $ 2,090 $ 2,119 International 3,044 3,060 2,726 Total $ 4,950 $ 5,150 $ 4,845 As of March 31, 2019 2018 Long-lived assets North America $ 371 $ 376 International 77 77 Total $ 448 $ 453 We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services. Note that revenue attributed to the legal entity that makes the sale is often not the country where the consumer resides. For example, revenue generated by our Swiss legal entity includes digital revenue from consumers who reside outside of Switzerland, including consumers who reside outside of Europe. Revenue generated by our Swiss legal entity during fiscal years 2019, 2018, and 2017 represents $2,303 million , $2,272 million and $1,886 million or 47 percent , 44 percent and 39 percent of our total net revenue, respectively. Revenue generated in the United States represents over 99 percent of our total North America net revenue. There were no other countries with net revenue greater than 10 percent . In fiscal year 2019, our direct sales to Sony and Microsoft represented approximately 29 percent and 16 percent of total net revenue, respectively. In fiscal year 2018, our direct sales to Sony and Microsoft represented approximately 27 percent and 16 percent of total net revenue, respectively. In fiscal year 2017, our direct sales to Sony and Microsoft represented approximately 19 percent and 17 percent of total net revenue, respectively. |
Quarterly Financial And Market
Quarterly Financial And Market Information | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial And Market Information | (19) QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarter Ended Year Ended (In millions, except per share data) June 30 September 30 December 31 March 31 Fiscal 2019 Consolidated (a) Net revenue $ 1,137 $ 1,286 $ 1,289 $ 1,238 $ 4,950 Gross profit 922 868 876 962 3,628 Operating income 300 258 242 196 996 Net income 293 255 262 209 1,019 Common Stock Earnings per share — Basic $ 0.96 $ 0.84 $ 0.87 $ 0.70 $ 3.36 Earnings per share — Diluted $ 0.95 $ 0.83 $ 0.86 $ 0.69 $ 3.33 Fiscal 2018 Consolidated Net revenue $ 1,449 $ 959 $ 1,160 $ 1,582 $ 5,150 Gross profit 1,295 570 659 1,349 3,873 Operating income (loss) 743 (41 ) (21 ) 753 1,434 Net income (loss) 644 (22 ) (186 ) (b) 607 (b) 1,043 Common Stock Earnings (loss) per share — Basic $ 2.08 $ (0.07 ) $ (0.60 ) $ 1.98 $ 3.39 Earnings (loss) per share — Diluted $ 2.06 $ (0.07 ) $ (0.60 ) $ 1.95 $ 3.34 (a) On April 1, 2018, at the beginning of fiscal year 2019, we adopted the New Revenue Standard, which significantly changes how we recognize and report net revenue. Financial data for periods prior to April 1, 2018 has not been restated. For more information on the New Revenue Standard, see Note 1 under the heading “ Recently Adopted Accounting Standards ”. (b) During the quarters ended December 31, 2017 and March 31, 2018, we recognized tax expense of $176 million and $59 million , respectively, due to the application of the U.S. Tax Act, enacted on December 22, 2017. |
(Policy)
(Policy) | 12 Months Ended |
Mar. 31, 2019 | |
Description Of Business And Basis of Presentation [Abstract] | |
Consolidation | Consolidation The accompanying Consolidated Financial Statements include the accounts of Electronic Arts Inc. and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year Our fiscal year is reported on a 52 - or 53 -week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ended March 31, 2019, 2018 and 2017 contained 52 weeks each and ended on March 30, 2019, March 31, 2018 and April 1, 2017 respectively. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. |
Use Of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires us to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes. Such estimates include sales returns and allowances, provisions for doubtful accounts, accrued liabilities, offering periods for deferred net revenue, relative stand-alone selling price for identified performance obligations in our revenue transactions, income taxes, losses on royalty commitments, estimates regarding the recoverability of prepaid royalties, inventories, long-lived assets, assets acquired and liabilities assumed in business combinations, certain estimates related to the measurement and recognition of costs resulting from our stock-based payment awards, unrecognized tax benefits, deferred income tax assets and associated valuation allowances, as well as estimates used in our goodwill, intangibles and short-term investment impairment tests. These estimates generally involve complex issues and require us to make judgments, involve analysis of historical and future trends, can require extended periods of time to resolve, and are subject to change from period to period. In all cases, actual results could differ materially from our estimates. |
Cash, Cash Equivalents, Short-Term Investments And Marketable Equity Securities | Cash, Cash Equivalents, and Short-Term Investments Cash equivalents consist of highly liquid investments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. Short-term investments consist of securities with original or remaining maturities of greater than three months at the time of purchase, and are accounted for as available-for-sale securities and are recorded at fair value. Cash, cash equivalents and short-term investments are available for use in current operations or other activities such as capital expenditures, business combinations and share repurchases. Unrealized gains and losses on our short-term investments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of tax, until either (1) the security is sold, (2) the security has matured, or (3) we determine that the fair value of the security has declined below its adjusted cost basis and the decline is other-than-temporary. Realized gains and losses on our short-term investments are calculated based on the specific identification method and are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net. Determining whether a decline in fair value is other-than-temporary 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. Our 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, severity of the impairment, reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, 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, and any contractual terms impacting the prepayment or settlement process. If we conclude that an investment is other-than-temporarily impaired, we recognize an impairment charge at that time in our Consolidated Statements of Operations. Based on our evaluation, we did not consider any of our investments to be other-than-temporarily impaired as of March 31, 2019 and 2018 . |
Inventories | . |
Property And Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 years Computer equipment and software 3 to 6 years Equipment, furniture and fixtures, and other 3 to 5 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 10 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once the internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset’s estimated useful life, which is generally three years. The net book value of capitalized costs associated with internal-use software was $37 million and $35 million as of March 31, 2019 and 2018 , respectively. |
Acquisition-Related Intangibles And Other Long-Lived Assets | Goodwill Impairment In assessing impairment on our goodwill, we first analyze qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a goodwill impairment test. The qualitative factors we assess include long-term prospects of our performance, share price trends and market capitalization, and Company specific events. If we conclude it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not need to perform an impairment test. If based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value we will measure goodwill for impairment by applying fair value-based tests at the reporting unit level. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating results of that component, and (3) whether the component has dissimilar economic characteristics to other components. As of March 31, 2019, we have only one reportable segment, which represents our only operating segment. |
Goodwill | Acquisition-Related Intangibles and Other Long-Lived Assets We record acquisition-related intangible assets, such as developed and core technology, in connection with business combinations. We amortize the cost of acquisition-related intangible assets that have finite useful lives on a straight-line basis over the lesser of their estimated useful lives or the agreement terms, currently from one to nine years. We evaluate acquisition-related intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset group. This includes assumptions about future prospects for the business that the asset relates to and typically involves computations of the estimated future cash flows to be generated by these businesses. Based on these judgments and assumptions, we determine whether we need to take an impairment charge to reduce the value of the asset stated on our Consolidated Balance Sheets to reflect its estimated fair value. When we consider such assets to be impaired, the amount of impairment we recognize is measured by the amount by which the carrying amount of the asset exceeds its fair value. |
Revenue Recognition | Revenue Recognition As discussed in Note 1 — Description of Business and Basis of Presentation , we adopted the New Revenue Standard on April 1, 2018. We derive revenue principally from sales of our games, and related extra-content and services that can be played by customers on a variety of platforms which include game consoles, PCs, mobile phones and tablets. Our product and service offerings include, but are not limited to, the following: • full games with both online and offline functionality (“Games with Services”), which generally includes (1) the initial game delivered digitally or via physical disc at the time of sale and typically provide access to offline core game content (“software license”); (2) updates on a when-and-if-available basis, such as software patches or updates, and/or additional free content to be delivered in the future (“future update rights”); and (3) a hosted connection for online playability (“online hosting”); • full games with online-only functionality which require an Internet connection to access all gameplay and functionality (“Online-Hosted Service Games”); • extra content related to Games with Services and Online-Hosted Service Games which provides access to additional in-game content; • subscriptions, such as Origin Access, Origin Access Premier and EA Access, that generally offers access to a selection of full games, in-game content, online services and other benefits typically for a recurring monthly or annual fee; and • licensing our games to third parties to distribute and host our games. Effective April 1, 2018, we evaluate revenue recognition based on the criteria set forth in ASC 606, Revenue from Contracts with Customers . We evaluate and recognize revenue by: • identifying the contract(s) 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 as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). Certain of our full game and/or extra content are sold to resellers with a contingency that the full game and/or extra content cannot be resold prior to a specific date (“Street Date Contingency”). We recognize revenue for transactions that have a Street Date Contingency when the Street Date Contingency is removed and the full game and/or extra content can be resold by the reseller. For digital full game and/or extra content downloads sold to customers, we recognize revenue when the full game and/or extra content is made available for download to the customer. Online-Enabled Games Games with Services. Our sales of Games with Services are evaluated to determine whether the software license, future update rights and the online hosting are distinct and separable. Sales of Games with Services are generally determined to have three distinct performance obligations: software license, future update rights, and the online hosting. Since we do not sell the performance obligations on a stand-alone basis, we consider market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. We recognize revenue from these arrangements upon transfer of control for each performance obligation. For the portion of the transaction price allocated to the software license, revenue is recognized when control of the license has been transferred to the customer. For the portion of the transaction price allocated to the future update rights and the online hosting, revenue is recognized as the services are provided. Online-Hosted Service Games. Sales of our Online-Hosted Service Games are determined to have one distinct performance obligation: the online hosting. We recognize revenue from these arrangements as the service is provided. Extra Content. Revenue received from sales of downloadable content are derived primarily from the sale of virtual currencies and digital in-game content to our customers to enhance their gameplay experience. Sales of extra content are accounted for in a manner consistent with the treatment for our Games with Services and Online-Hosted Service Games as discussed above, depending upon whether or not the extra content has offline functionality. Subscriptions Revenue from subscriptions is recognized over the subscription term as the service is provided. Licensing Revenue In certain countries, we utilize 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/or sales-based royalties. These arrangements typically include multiple performance obligations, such as a time-based license of software and future update rights. We recognize as revenue a portion of the minimum guarantee when we transfer control of the license of software (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Any sales-based royalties are generally recognized as the related sales occur by the licensee. Revenue Classification We classify our revenue as either product revenue or service and other revenue. Generally, performance obligations that are recognized upfront upon transfer of control are classified as product revenue, while performance obligations that are recognized over the Estimated Offering Period or subscription period as the services are provided are classified as service revenue. Product revenue . Our product revenue includes revenue allocated to the software license performance obligation. Product revenue also includes revenue from the licensing of software to third-parties. Service and other revenue . Our service revenue includes revenue allocated to the future update rights and the online hosting performance obligations. This also includes revenue allocated to the future update rights from the licensing of software to third-parties, software that offers an online-only service such as our Ultimate Team game mode, and subscription services. Significant Judgments around Revenue Arrangements Identifying performance obligations. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, (i.e., the customer can benefit from the goods or services either on its own or together with other resources that are readily available), and are distinct in the context of the contract (i.e., it is separately identifiable from other goods or services in the contract). To the extent a contract includes multiple promises, we must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. Determining the transaction price. The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our goods and services to the customer. Determining the transaction price often requires significant judgment, based on an assessment of contractual terms and business practices. It further includes review of variable consideration such as discounts, sales returns, price protection, and rebates, which is estimated at the time of the transaction. See below for additional information regarding our sales returns and price protection reserves. In addition, the transaction price does not include an estimate of the variable consideration related to sales-based royalties. Sales-based royalties are recognized as the sales occur. Allocating the transaction price. Allocating the transaction price requires that we determine an estimate of the relative stand-alone selling price for each distinct performance obligation. Determining the relative stand-alone selling price is inherently subjective, especially in situations where we do not sell the performance obligation on a stand-alone basis (which occurs in the majority of our transactions). In those situations, we determine the relative stand-alone selling price based on various observable inputs using all information that is reasonably available. Examples of observable inputs and information include: historical internal pricing data, cost plus margin analyses, third-party external pricing of similar or same products and services such as software licenses and maintenance support within the enterprise software industry. The results of our analysis resulted in a specific percentage of the transaction price being allocated to each performance obligation. Determining the Estimated Offering Period. The offering period is the period in which we offer to provide the future update rights and/or online hosting for the game and related extra content sold. Because the offering period is not an explicitly defined period, we must make an estimate of the offering period for the service related performance obligations (i.e., future update rights and online hosting). Determining the Estimated Offering Period is inherently subjective and is subject to regular revision. Generally, we consider the average period of time customers are online when estimating the offering period. We also consider the estimated period of time between the date a game unit is sold to a reseller and the date the reseller sells the game unit to the customer (i.e., time in channel). Based on these two factors, we then consider the method of distribution. For example, games sold at retail would have a composite offering period equal to the online gameplay period plus time in channel as opposed to digitally-distributed software licenses which are delivered immediately via digital download and therefore, the offering period is estimated to be only the online gameplay period. Additionally, we consider results from prior analyses, known and expected online gameplay trends, as well as disclosed service periods for competitors’ games in determining the Estimated Offering Period for future sales. We believe this provides a reasonable depiction of the transfer of future update rights and online hosting to our customers, as it is the best representation of the time period during which our games are played. We recognize revenue for future update rights and online hosting performance obligations ratably on a straight-line basis over this period as there is a consistent pattern of delivery for these performance obligations. These performance obligations are generally recognized over an estimated nine-month period beginning in the month after shipment for software licenses sold through retail and an estimated six-month period for digitally-distributed software licenses beginning in the month of sale. Deferred Net Revenue Because the majority of our sales transactions include future update rights and online hosting performance obligations, which are subject to a recognition period of generally six to nine months, our deferred net revenue balance is material. This balance increases from period to period by the revenue being deferred for current sales with these service obligations and is reduced by the recognition of revenue from prior sales that were deferred. Generally, revenue is recognized as the services are provided. Principal Agent Considerations We evaluate sales to end customers of our full games and related content via third-party storefronts, including digital storefronts such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple App Store, and Google Play Store, in order to determine whether or not we are acting as the principal in the sale to the end customer, which we consider in determining if revenue should be reported gross or net of fees retained by the third-party storefront. An entity is the principal if it controls a good or service before it is transferred to the end customer. Key indicators that we evaluate in determining gross versus net treatment 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 to the end customer; • which party has inventory risk before the specified good or service has been transferred to the end customer; and • which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, except as discussed below, we have determined that generally the third party is considered the principal to end customers for the sale of our full games and related content. We therefore report revenue related to these arrangements net of the fees retained by the storefront. However, for sales arrangements via Apple App Store and Google Play Store, EA is considered the principal to the end customer and thus, we report revenue on a gross basis and mobile platform fees are reported within cost of revenue. Payment Terms Substantially all of our transactions have payment terms, whether customary or on an extended basis, of less than one year; therefore, we generally do not adjust the transaction price for the effects of any potential financing components that may exist. Sales and Value-Added Taxes Revenue is recorded net of taxes assessed by governmental authorities that are imposed at the time of the specific revenue-producing transaction between us and our customer, such as sales and value-added taxes. Sales Returns and Price Protection Reserves Sales returns and price protection are considered variable consideration under ASC 606. We reduce revenue for estimated future returns and price protection which may occur with our distributors and retailers (“channel partners”). Price protection represents our practice to provide our channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the old wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. In certain countries we also have a practice for allowing channel partners to return older products in the channel in exchange for a credit allowance. When evaluating the adequacy of sales returns and price protection reserves, we analyze the following: historical credit allowances, current sell-through of our channel partners’ inventory of our products, current trends in retail and the video game industry, changes in customer demand, acceptance of our products, and other related factors. In addition, we monitor the volume of sales to our channel partners and their inventories, as substantial overstocking in the distribution channel could result in high returns or higher price protection in subsequent periods. |
Taxes Collected From Customers And Remitted To Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our Consolidated Statements of Operations. |
Concentration Of Credit Risk | Concentration of Credit Risk, Significant Customers, and Platform Partners We extend credit to various digital resellers, channel and platform partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. Although we generally do not require collateral, we perform ongoing credit evaluations of our customers and maintain reserves for potential credit losses. Invoices are aged based on contractual terms with our customers. The provision for doubtful accounts is recorded as a charge to general and administrative expense when a potential loss is identified. Losses are written off against the allowance when the receivable is determined to be uncollectible. At March 31, 2019 , we had two customers who accounted for approximately 34 percent and 33 percent of our consolidated gross receivables, respectively. At March 31, 2018 , we had three customers who accounted for 39 percent , 21 percent , and 10 percent of our consolidated gross receivables, respectively. A majority of our sales are made via digital resellers, channel and platform partners. During the fiscal years 2019, 2018, and 2017 , approximately 65 percent , 67 percent , and 64 percent , respectively, of our net revenue was derived from our top ten customers and/or platform partners. Though our products and services are available to consumers through a variety of retailers, digital resellers and directly through us, the concentration of our sales in one, or a few, large customers or platform partners could lead to a short-term disruption in our sales if one or more digital resellers, channel or platform partners significantly reduced their purchases or ceased to carry our products and services, and could make us more vulnerable to collection risk if one or more of these large customers or platform partners became unable to pay for our products or declared bankruptcy. Currently, a majority of our revenue is derived through sales of products and services playable on hardware consoles from Sony and Microsoft. For the fiscal years ended March 31, 2019, 2018 and 2017 , our net revenue for products and services on Sony’s PlayStation 3 and 4, and Microsoft’s Xbox 360 and One consoles (combined across all four platforms) was 66 percent , 70 percent , and 70 percent , respectively. These platform partners have significant influence over the products and services that we offer on their platforms. Our agreements with Sony and Microsoft typically give significant control to them over the approval, manufacturing and distribution of our products and services that are distributed through their platform, which could, in certain circumstances, leave us unable to get our products and services approved, manufactured or distributed to customers. Short-term investments are placed with high quality financial institutions or in short-duration, investment-grade securities. We limit the amount of credit exposure in any one financial institution or type of investment instrument. |
Royalties And Licenses | Royalties and Licenses Royalty-based obligations with content licensors and distribution affiliates are either paid in advance and capitalized as prepaid royalties or are accrued as incurred and subsequently paid. These royalty-based obligations are generally expensed to cost of revenue generally at the greater of the contractual rate or an effective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. Prepayments made to thinly capitalized independent software developers and co-publishing affiliates are generally made in connection with the development of a particular product, and therefore, we are generally subject to development risk prior to the release of the product. Accordingly, payments that are due prior to completion of a product are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of the product (primarily royalty-based in nature) are generally expensed as cost of revenue. Our contracts with some licensors include minimum guaranteed royalty payments, which are initially recorded as an asset and as a liability at the contractual amount when no performance remains with the licensor. When performance remains with the licensor, we record guarantee payments as an asset when actually paid and as a liability when incurred, rather than recording the asset and liability upon execution of the contract. Each quarter, we also evaluate the expected future realization of our royalty-based assets, as well as any unrecognized minimum commitments not yet paid to determine amounts we deem unlikely to be realized through product and service sales. Any impairments or losses determined before the launch of a product are generally charged to research and development expense. Impairments or losses determined post-launch are charged to cost of revenue. We evaluate long-lived royalty-based assets for impairment using undiscounted cash flows when impairment indicators exist. If impairment exists, then the assets are written down to fair value. Unrecognized minimum royalty-based commitments are accounted for as executory contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is abandoned ( i.e. , cease use) or the contractual rights to use the intellectual property are terminated. |
Advertising Costs | Advertising Costs We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. Cooperative advertising costs are recognized when incurred and are classified as marketing and sales expense if there is a separate identifiable benefit for which we can reasonably estimate the fair value of the benefit identified. Otherwise, they are classified as a reduction of revenue and are generally accrued when revenue is recognized. We then reimburse the channel partner when qualifying claims are submitted. We are also reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Otherwise, vendor reimbursements are recognized as a reduction of the cost incurred with the same vendor. Vendor reimbursements of advertising costs of $46 million , $45 million , and $53 million reduced marketing and sales expense for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. For the fiscal years ended March 31, 2019, 2018 and 2017 , advertising expense, net of vendor reimbursements, totaled approximately $271 million , $261 million , and $281 million , respectively. |
Software Development Costs | Software Development Costs Research and development costs, which consist primarily of software development costs, are expensed as incurred. We are required to capitalize software development costs incurred for computer software to be sold, leased or otherwise marketed after technological feasibility of the software is established or for development costs that have alternative future uses. Under our current practice of developing new games, the technological feasibility of the underlying software is not established until substantially all product development and testing is complete, which generally includes the development of a working model. Software development costs that have been capitalized to date have been insignificant. |
Foreign Currency Translation | Foreign Currency Translation Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net foreign currency transaction gains (losses) of $(9) million , $18 million , and $(40) million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net foreign currency transaction gains (losses) are partially offset by net gains (losses) on our foreign currency forward contracts of $50 million , $(16) million , and $46 million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. See Note 5 for additional information on our foreign currency forward contracts. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for both the expected impact of differences between the financial statement amount and the tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. We record a valuation allowance against deferred tax assets when it is considered more likely than not that all or a portion of our deferred tax assets will not be realized. In making this determination, we are required to give significant weight to evidence that can be objectively verified. It is generally difficult to conclude that a valuation allowance is not needed when there is significant negative evidence, such as cumulative losses in recent years. Forecasts of future taxable income are considered to be less objective than past results. Therefore, cumulative losses weigh heavily in the overall assessment. In addition to considering forecasts of future taxable income, we are also required to evaluate and quantify other possible sources of taxable income in order to assess the realization of our deferred tax assets, namely the reversal of existing deferred tax liabilities, the carry back of losses and credits as allowed under current tax law, and the implementation of tax planning strategies. Evaluating and quantifying these amounts involves significant judgments. Each source of income must be evaluated based on all positive and negative evidence; this evaluation involves assumptions about future activity. Certain taxable temporary differences that are not expected to reverse during the carry forward periods permitted by tax law cannot be considered as a source of future taxable income that may be available to realize the benefit of deferred tax assets. The U.S. Tax Act creates new U.S. taxes on foreign earnings. An accounting policy election is available to either recognize the deferred tax impacts of the U.S. taxes on foreign earnings or to account for them as a period cost. We have elected to account for the impacts of these new taxes as a period cost. Share Repurchases Shares of our common stock repurchased pursuant to our repurchase program are retired. The purchase price of such repurchased shares of common stock is recorded as a reduction to additional paid-in-capital. If the balance in additional paid-in-capital is exhausted, the excess is recorded as a reduction to retained earnings. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Adopted Accounting Standards On April 1, 2018, we adopted six new accounting standards which are discussed below. Other than Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers (the “New Revenue Standard” or “ASC 606”), these other accounting standards did not have a material impact to our Consolidated Financial Statements. In May 2014, the FASB issued the New Revenue Standard which replaced ASC Topic 605, Revenue Recognition (the “Old Revenue Standard” or “ASC 605”), including industry-specific requirements, and provided companies with a single principles-based revenue recognition model for recognizing revenue from contracts with customers. The core principle of the New Revenue Standard is that a company should recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. We adopted the New Revenue Standard on April 1, 2018 , the beginning of fiscal year 2019, using the modified retrospective method. We elected to apply the New Revenue Standard only to contracts that were not completed as of the adoption date. The comparative information for periods prior to April 1, 2018 has not been restated and continues to be reported under the accounting standards in effect for those periods. The net cumulative effect adjustment upon adoption resulted in an increase to retained earnings of $590 million , net of tax, and included the impact from the following adjustments to our Consolidated Balance Sheet at April 1, 2018: BALANCE SHEETS Balance at March 31, 2018 Adjustments due to New Revenue Standard Adoption Balance at April 1, 2018 Assets Receivables, net $ 385 $ 158 $ 543 Deferred income taxes, net 84 (64 ) 20 Liabilities Accrued and other current liabilities Sales return and price protection reserves $ — $ 158 $ 158 Deferred net revenue (other) 108 (3 ) 105 Deferred net revenue (online-enabled games) 1,622 (673 ) 949 Stockholders’ Equity Retained earnings $ 4,062 $ 590 $ 4,652 Accumulated other comprehensive income (loss) (127 ) 22 (105 ) The most significant impacts of the New Revenue Standard were: • The accounting for our transactions as multiple elements or “bundled” arrangements . Under prior software revenue recognition accounting standards, because we did not have vendor-specific objective evidence of fair value (“VSOE”) for unspecified future updates or online hosting, we were not able to account for performance obligations separately, and therefore, the entire sales price of most transactions that had multiple performance obligations was recognized ratably over the period we expected to provide the future updates and/or online hosting performance obligations (the “Estimated Offering Period”). Under the New Revenue Standard, this VSOE requirement was eliminated and was replaced with a requirement for us to determine our best estimate of the stand-alone selling price of each performance obligation and allocate the transaction price to each distinct performance obligation on a relative stand-alone selling price basis. Therefore, we are now able to account for performance obligations separately. For example, for an individual sale of a game with both online and offline functionality, we typically have three distinct performance obligations; (1) the software license; (2) a right to receive future updates; and (3) online hosting. The software license performance obligation represents the game that is delivered digitally or via physical disc at the time of sale and typically provides access to offline core game content. The future update rights performance obligation includes updates on a when-and-if-available basis such as software patches or updates, and/or additional free content to be delivered in the future. The online hosting performance obligation consists of providing the customer with a hosted connection for online playability. Since we do not sell the performance obligations on a stand-alone basis, we consider market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. For games with services under the New Revenue Standard, generally 75 percent of the sales price is allocated to the software license performance obligation and recognized at a point in time upon delivery (which is usually at or near the same time as the booking of the transaction), and the remaining 25 percent is allocated to the future update rights and the online hosting performance obligations and recognized ratably over the Estimated Offering Period. For sales prior to April 1, 2018, our deferred net revenue balances decreased by $740 million upon adoption of the New Revenue Standard because the software license performance obligation had been delivered in the prior fiscal year. • Mobile platform fees . The adoption of the New Revenue Standard also changed how we present mobile platform fees after March 31, 2018. Previously, mobile platform fees retained by third-party application storefronts such as the Apple App Store and Google Play, were reported on a net basis (i.e. as a reduction of net revenue) because we previously determined that generally, the third party was considered the primary obligor. Upon adoption of the New Revenue Standard, we concluded that we are the principal in the transactions, resulting in mobile platform fees now being reported within cost of revenue rather than as a reduction of net revenue. We recognized $64 million of mobile platform fees at April 1, 2018 as an increase to our deferred net revenue balances. Mobile platform fees for the fiscal year ended March 31, 2019 was $188 million and accordingly increased both service and other net revenue and cost of revenue by this amount relative to the same period a year ago. While this change also decreased our gross margin percentage, it does not have a material impact on our annual total gross profit or overall profitability. • Increased portion of our sales from games with services are presented as service revenue . The amount of the transaction price allocated to future update rights and the online hosting performance obligations are presented as service revenue under the New Revenue Standard (previously, revenue associated with future update rights were generally presented as product revenue). Therefore, for the fiscal year ended March 31, 2019, approximately $530 million of revenue for future update rights are now presented as service revenue under the New Revenue Standard as compared to product revenue under the Old Revenue Standard. • Sales returns and price protection reserves . Upon adoption, our sales returns and price protection reserves are now presented within accrued and other liabilities (previously, these allowances were presented as contra-assets within receivables on our Consolidated Balance Sheets). We reclassified $158 million of sales returns and price protection reserves on April 1, 2018. The adoption of the New Revenue Standard impacted our Consolidated Balance Sheet as of March 31, 2019 and our Consolidated Statements of Operations for the fiscal year ended March 31, 2019 as follows: As of March 31, 2019 BALANCE SHEETS (In millions) Under New Revenue Standard Under Old Revenue Standard $ Change Assets Receivables, net $ 623 $ 473 $ 150 Other current assets 313 311 2 Deferred income taxes, net 35 86 (51 ) Other assets 114 112 2 Liabilities Accrued and other current liabilities Sales return and price protection reserves $ 150 $ — $ 150 Deferred net revenue (other) 94 362 (268 ) Deferred net revenue (online-enabled games) 1,100 1,404 (304 ) Other liabilities 132 120 12 Stockholders’ Equity Retained earnings $ 5,358 $ 4,835 $ 523 Accumulated other comprehensive loss (30 ) (20 ) (10 ) Year Ended March 31, 2019 (In millions, except per share data) Under New Revenue Standard Under Old Revenue Standard $ Change % Change Net revenue: Product $ 1,593 $ 2,204 $ (611 ) (28 )% Service and other 3,357 2,639 718 27 % Total net revenue 4,950 4,843 107 2 % Cost of revenue: Product 517 637 (120 ) (19 )% Service and other 805 497 308 62 % Total cost of revenue 1,322 1,134 188 17 % Gross profit 3,628 3,709 (81 ) (2 )% Operating expenses: Total operating expenses 2,632 2,632 — — % Operating income 996 1,077 (81 ) (8 )% Interest and other income (expense), net 83 83 — — % Income before provision for income taxes 1,079 1,160 (81 ) (7 )% Provision for income taxes 60 74 (14 ) (19 )% Net income $ 1,019 $ 1,086 $ (67 ) (6 )% Earnings per share: Basic $ 3.36 $ 3.58 $ (0.22 ) (6 )% Diluted $ 3.33 $ 3.55 $ (0.22 ) (6 )% Refer to the following sections of our Consolidated Financial Statements for the additional disclosures required by the New Revenue Standard: • See Note 2 — Summary of Significant Accounting Policies , for our updated revenue accounting policy, including significant judgments, under ASC 606. For a discussion of our revenue recognition policy as it relates to revenue transactions accounted for prior to April 1, 2018, which were accounted for under ASC 605, refer to our Annual Report on Form 10-K for the fiscal year ended March 31, 2018. • See Note 10 — Balance Sheet Details , for a discussion on our contract liabilities (“deferred net revenue”) and our remaining performance obligations. We had an immaterial amount of contract assets as of April 1, 2018 and March 31, 2019. • See Note 18 — Segment Information , for our disaggregations of revenue. In January 2016, the FASB issued ASU 2016-01, Financial Instruments (Topic 825-10), which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income. The ASU also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The adoption did not have a material impact on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products . The amendments in the ASU are designed to provide guidance and eliminate diversity in the accounting for derecognition of prepaid stored-value product liabilities. Typically, a prepaid stored-value product liability is to be derecognized when it is probable that a significant reversal of the recognized breakage amount will not subsequently occur. This is when the likelihood of the product holder exercising its remaining rights becomes remote. This estimate shall be updated at the end of each period. The adoption did not have a material impact on our Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update is intended to reduce the existing diversity in practice in how certain transactions are classified in the statement of cash flows. The adoption did not have a material impact on our Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The adoption did not have a material impact on our Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This update gives the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income that the FASB refers to as having been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act. The adoption did not have a material impact on our Consolidated Financial Statements. |
Impact of recently issued accounting standards | Other Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB issued this standard to increase transparency and comparability among organizations by recognizing right-of-use lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. In July 2018, the FASB issued ASU 2018-11, Targeted Improvements , which provides entities with optional transition relief by allowing entities to use the effective date of the new lease standard as the date of initial application on transition, instead of at the beginning of the earliest comparative period presented. We will adopt this standard using this optional transition method beginning in the first quarter of fiscal year 2020, when the updated guidance is effective for us, and accordingly, we will not adjust prior periods for the effects of the new lease standard. Additionally, we will elect to apply the package of practical expedients, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our assessment of initial direct costs for any leases that exist prior to adoption of the new lease standard. While we are continuing to evaluate the impact of this new standard, we estimate approximately $200 million to $300 million would be recognized on our Consolidated Balance Sheet upon adoption as a result of establishing right-of-use lease assets and liabilities for our operating leases with terms of more than 12 months. We do not expect this new standard to have a material impact on our Consolidated Statements of Operations or Cash Flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update is intended to make more financial and nonfinancial hedging strategies eligible for hedge accounting. It eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The recognition of the amount historically excluded from the assessment of hedge effectiveness for our cash flow hedges under the new guidance will be recognized into the consolidated statement of operations at contract maturity rather than over the contract term, and will be recognized into net revenue or research and development expenses, as appropriate. ASU 2017-12 also amends the disclosure requirements by requiring revised tabular disclosures that focus on the effect of hedge accounting by income statement line. This update is effective for us beginning in the first quarter of fiscal year 2020. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. ASU 2016-13 is effective for us beginning in the first quarter of fiscal year 2021. We are currently evaluating the impact of this new standard on our Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This update changes the fair value measurement disclosure requirements. It summarizes the key provisions including the new, eliminated, and modified disclosure requirements. This update is effective for us beginning in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance in order to determine which implementation costs to defer and recognize as an asset. This update is effective for us beginning in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the timing of adoption and impact of this new standard on our Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Cash, Cash Equivalents, Short-Term Investments And Marketable Equity Securities | Cash, Cash Equivalents, and Short-Term Investments Cash equivalents consist of highly liquid investments with insignificant interest rate risk and original or remaining maturities of three months or less at the time of purchase. Short-term investments consist of securities with original or remaining maturities of greater than three months at the time of purchase, and are accounted for as available-for-sale securities and are recorded at fair value. Cash, cash equivalents and short-term investments are available for use in current operations or other activities such as capital expenditures, business combinations and share repurchases. Unrealized gains and losses on our short-term investments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of tax, until either (1) the security is sold, (2) the security has matured, or (3) we determine that the fair value of the security has declined below its adjusted cost basis and the decline is other-than-temporary. Realized gains and losses on our short-term investments are calculated based on the specific identification method and are reclassified from accumulated other comprehensive income (loss) to interest and other income (expense), net. Determining whether a decline in fair value is other-than-temporary 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. Our 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, severity of the impairment, reason for the decline in value and potential recovery period, the financial condition and near-term prospects of the investees, 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, and any contractual terms impacting the prepayment or settlement process. If we conclude that an investment is other-than-temporarily impaired, we recognize an impairment charge at that time in our Consolidated Statements of Operations. Based on our evaluation, we did not consider any of our investments to be other-than-temporarily impaired as of March 31, 2019 and 2018 . |
Inventories | . |
Property And Equipment, Net | Property and Equipment, Net Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 years Computer equipment and software 3 to 6 years Equipment, furniture and fixtures, and other 3 to 5 years Leasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 10 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once the internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset’s estimated useful life, which is generally three years. The net book value of capitalized costs associated with internal-use software was $37 million and $35 million as of March 31, 2019 and 2018 , respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Acquisition-Related Intangibles and Other Long-Lived Assets We record acquisition-related intangible assets, such as developed and core technology, in connection with business combinations. We amortize the cost of acquisition-related intangible assets that have finite useful lives on a straight-line basis over the lesser of their estimated useful lives or the agreement terms, currently from one to nine years. We evaluate acquisition-related intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset group. This includes assumptions about future prospects for the business that the asset relates to and typically involves computations of the estimated future cash flows to be generated by these businesses. Based on these judgments and assumptions, we determine whether we need to take an impairment charge to reduce the value of the asset stated on our Consolidated Balance Sheets to reflect its estimated fair value. When we consider such assets to be impaired, the amount of impairment we recognize is measured by the amount by which the carrying amount of the asset exceeds its fair value. |
Acquisition-Related Intangibles And Other Long-Lived Assets | Goodwill Impairment In assessing impairment on our goodwill, we first analyze qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform a goodwill impairment test. The qualitative factors we assess include long-term prospects of our performance, share price trends and market capitalization, and Company specific events. If we conclude it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, we do not need to perform an impairment test. If based on that assessment, we believe it is more likely than not that the fair value of the reporting unit is less than its carrying value we will measure goodwill for impairment by applying fair value-based tests at the reporting unit level. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating results of that component, and (3) whether the component has dissimilar economic characteristics to other components. As of March 31, 2019, we have only one reportable segment, which represents our only operating segment. |
Revenue Recognition | Revenue Recognition As discussed in Note 1 — Description of Business and Basis of Presentation , we adopted the New Revenue Standard on April 1, 2018. We derive revenue principally from sales of our games, and related extra-content and services that can be played by customers on a variety of platforms which include game consoles, PCs, mobile phones and tablets. Our product and service offerings include, but are not limited to, the following: • full games with both online and offline functionality (“Games with Services”), which generally includes (1) the initial game delivered digitally or via physical disc at the time of sale and typically provide access to offline core game content (“software license”); (2) updates on a when-and-if-available basis, such as software patches or updates, and/or additional free content to be delivered in the future (“future update rights”); and (3) a hosted connection for online playability (“online hosting”); • full games with online-only functionality which require an Internet connection to access all gameplay and functionality (“Online-Hosted Service Games”); • extra content related to Games with Services and Online-Hosted Service Games which provides access to additional in-game content; • subscriptions, such as Origin Access, Origin Access Premier and EA Access, that generally offers access to a selection of full games, in-game content, online services and other benefits typically for a recurring monthly or annual fee; and • licensing our games to third parties to distribute and host our games. Effective April 1, 2018, we evaluate revenue recognition based on the criteria set forth in ASC 606, Revenue from Contracts with Customers . We evaluate and recognize revenue by: • identifying the contract(s) 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 as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). Certain of our full game and/or extra content are sold to resellers with a contingency that the full game and/or extra content cannot be resold prior to a specific date (“Street Date Contingency”). We recognize revenue for transactions that have a Street Date Contingency when the Street Date Contingency is removed and the full game and/or extra content can be resold by the reseller. For digital full game and/or extra content downloads sold to customers, we recognize revenue when the full game and/or extra content is made available for download to the customer. Online-Enabled Games Games with Services. Our sales of Games with Services are evaluated to determine whether the software license, future update rights and the online hosting are distinct and separable. Sales of Games with Services are generally determined to have three distinct performance obligations: software license, future update rights, and the online hosting. Since we do not sell the performance obligations on a stand-alone basis, we consider market conditions and other observable inputs to estimate the stand-alone selling price for each performance obligation. We recognize revenue from these arrangements upon transfer of control for each performance obligation. For the portion of the transaction price allocated to the software license, revenue is recognized when control of the license has been transferred to the customer. For the portion of the transaction price allocated to the future update rights and the online hosting, revenue is recognized as the services are provided. Online-Hosted Service Games. Sales of our Online-Hosted Service Games are determined to have one distinct performance obligation: the online hosting. We recognize revenue from these arrangements as the service is provided. Extra Content. Revenue received from sales of downloadable content are derived primarily from the sale of virtual currencies and digital in-game content to our customers to enhance their gameplay experience. Sales of extra content are accounted for in a manner consistent with the treatment for our Games with Services and Online-Hosted Service Games as discussed above, depending upon whether or not the extra content has offline functionality. Subscriptions Revenue from subscriptions is recognized over the subscription term as the service is provided. Licensing Revenue In certain countries, we utilize 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/or sales-based royalties. These arrangements typically include multiple performance obligations, such as a time-based license of software and future update rights. We recognize as revenue a portion of the minimum guarantee when we transfer control of the license of software (generally upon commercial launch) and the remaining portion ratably over the contractual term in which we provide the licensee with future update rights. Any sales-based royalties are generally recognized as the related sales occur by the licensee. Revenue Classification We classify our revenue as either product revenue or service and other revenue. Generally, performance obligations that are recognized upfront upon transfer of control are classified as product revenue, while performance obligations that are recognized over the Estimated Offering Period or subscription period as the services are provided are classified as service revenue. Product revenue . Our product revenue includes revenue allocated to the software license performance obligation. Product revenue also includes revenue from the licensing of software to third-parties. Service and other revenue . Our service revenue includes revenue allocated to the future update rights and the online hosting performance obligations. This also includes revenue allocated to the future update rights from the licensing of software to third-parties, software that offers an online-only service such as our Ultimate Team game mode, and subscription services. Significant Judgments around Revenue Arrangements Identifying performance obligations. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, (i.e., the customer can benefit from the goods or services either on its own or together with other resources that are readily available), and are distinct in the context of the contract (i.e., it is separately identifiable from other goods or services in the contract). To the extent a contract includes multiple promises, we must apply judgment to determine whether those promises are separate and distinct performance obligations. If these criteria are not met, the promises are accounted for as a combined performance obligation. Determining the transaction price. The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our goods and services to the customer. Determining the transaction price often requires significant judgment, based on an assessment of contractual terms and business practices. It further includes review of variable consideration such as discounts, sales returns, price protection, and rebates, which is estimated at the time of the transaction. See below for additional information regarding our sales returns and price protection reserves. In addition, the transaction price does not include an estimate of the variable consideration related to sales-based royalties. Sales-based royalties are recognized as the sales occur. Allocating the transaction price. Allocating the transaction price requires that we determine an estimate of the relative stand-alone selling price for each distinct performance obligation. Determining the relative stand-alone selling price is inherently subjective, especially in situations where we do not sell the performance obligation on a stand-alone basis (which occurs in the majority of our transactions). In those situations, we determine the relative stand-alone selling price based on various observable inputs using all information that is reasonably available. Examples of observable inputs and information include: historical internal pricing data, cost plus margin analyses, third-party external pricing of similar or same products and services such as software licenses and maintenance support within the enterprise software industry. The results of our analysis resulted in a specific percentage of the transaction price being allocated to each performance obligation. Determining the Estimated Offering Period. The offering period is the period in which we offer to provide the future update rights and/or online hosting for the game and related extra content sold. Because the offering period is not an explicitly defined period, we must make an estimate of the offering period for the service related performance obligations (i.e., future update rights and online hosting). Determining the Estimated Offering Period is inherently subjective and is subject to regular revision. Generally, we consider the average period of time customers are online when estimating the offering period. We also consider the estimated period of time between the date a game unit is sold to a reseller and the date the reseller sells the game unit to the customer (i.e., time in channel). Based on these two factors, we then consider the method of distribution. For example, games sold at retail would have a composite offering period equal to the online gameplay period plus time in channel as opposed to digitally-distributed software licenses which are delivered immediately via digital download and therefore, the offering period is estimated to be only the online gameplay period. Additionally, we consider results from prior analyses, known and expected online gameplay trends, as well as disclosed service periods for competitors’ games in determining the Estimated Offering Period for future sales. We believe this provides a reasonable depiction of the transfer of future update rights and online hosting to our customers, as it is the best representation of the time period during which our games are played. We recognize revenue for future update rights and online hosting performance obligations ratably on a straight-line basis over this period as there is a consistent pattern of delivery for these performance obligations. These performance obligations are generally recognized over an estimated nine-month period beginning in the month after shipment for software licenses sold through retail and an estimated six-month period for digitally-distributed software licenses beginning in the month of sale. Deferred Net Revenue Because the majority of our sales transactions include future update rights and online hosting performance obligations, which are subject to a recognition period of generally six to nine months, our deferred net revenue balance is material. This balance increases from period to period by the revenue being deferred for current sales with these service obligations and is reduced by the recognition of revenue from prior sales that were deferred. Generally, revenue is recognized as the services are provided. Principal Agent Considerations We evaluate sales to end customers of our full games and related content via third-party storefronts, including digital storefronts such as Microsoft’s Xbox Store, Sony’s PlayStation Store, Apple App Store, and Google Play Store, in order to determine whether or not we are acting as the principal in the sale to the end customer, which we consider in determining if revenue should be reported gross or net of fees retained by the third-party storefront. An entity is the principal if it controls a good or service before it is transferred to the end customer. Key indicators that we evaluate in determining gross versus net treatment 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 to the end customer; • which party has inventory risk before the specified good or service has been transferred to the end customer; and • which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, except as discussed below, we have determined that generally the third party is considered the principal to end customers for the sale of our full games and related content. We therefore report revenue related to these arrangements net of the fees retained by the storefront. However, for sales arrangements via Apple App Store and Google Play Store, EA is considered the principal to the end customer and thus, we report revenue on a gross basis and mobile platform fees are reported within cost of revenue. Payment Terms Substantially all of our transactions have payment terms, whether customary or on an extended basis, of less than one year; therefore, we generally do not adjust the transaction price for the effects of any potential financing components that may exist. Sales and Value-Added Taxes Revenue is recorded net of taxes assessed by governmental authorities that are imposed at the time of the specific revenue-producing transaction between us and our customer, such as sales and value-added taxes. Sales Returns and Price Protection Reserves Sales returns and price protection are considered variable consideration under ASC 606. We reduce revenue for estimated future returns and price protection which may occur with our distributors and retailers (“channel partners”). Price protection represents our practice to provide our channel partners with a credit allowance to lower their wholesale price on a particular game unit that they have not resold to customers. The amount of the price protection for permanent markdowns is the difference between the old wholesale price and the new reduced wholesale price. Credits are also given for short-term promotions that temporarily reduce the wholesale price. In certain countries we also have a practice for allowing channel partners to return older products in the channel in exchange for a credit allowance. When evaluating the adequacy of sales returns and price protection reserves, we analyze the following: historical credit allowances, current sell-through of our channel partners’ inventory of our products, current trends in retail and the video game industry, changes in customer demand, acceptance of our products, and other related factors. In addition, we monitor the volume of sales to our channel partners and their inventories, as substantial overstocking in the distribution channel could result in high returns or higher price protection in subsequent periods. |
Taxes Collected From Customers And Remitted To Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a government authority that are both imposed on and concurrent with specific revenue transactions between us and our customers are presented on a net basis in our Consolidated Statements of Operations. |
Concentration Of Credit Risk Policy [Text Block] | Concentration of Credit Risk, Significant Customers, and Platform Partners We extend credit to various digital resellers, channel and platform partners. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact our overall credit risk. Although we generally do not require collateral, we perform ongoing credit evaluations of our customers and maintain reserves for potential credit losses. Invoices are aged based on contractual terms with our customers. The provision for doubtful accounts is recorded as a charge to general and administrative expense when a potential loss is identified. Losses are written off against the allowance when the receivable is determined to be uncollectible. At March 31, 2019 , we had two customers who accounted for approximately 34 percent and 33 percent of our consolidated gross receivables, respectively. At March 31, 2018 , we had three customers who accounted for 39 percent , 21 percent , and 10 percent of our consolidated gross receivables, respectively. A majority of our sales are made via digital resellers, channel and platform partners. During the fiscal years 2019, 2018, and 2017 , approximately 65 percent , 67 percent , and 64 percent , respectively, of our net revenue was derived from our top ten customers and/or platform partners. Though our products and services are available to consumers through a variety of retailers, digital resellers and directly through us, the concentration of our sales in one, or a few, large customers or platform partners could lead to a short-term disruption in our sales if one or more digital resellers, channel or platform partners significantly reduced their purchases or ceased to carry our products and services, and could make us more vulnerable to collection risk if one or more of these large customers or platform partners became unable to pay for our products or declared bankruptcy. Currently, a majority of our revenue is derived through sales of products and services playable on hardware consoles from Sony and Microsoft. For the fiscal years ended March 31, 2019, 2018 and 2017 , our net revenue for products and services on Sony’s PlayStation 3 and 4, and Microsoft’s Xbox 360 and One consoles (combined across all four platforms) was 66 percent , 70 percent , and 70 percent , respectively. These platform partners have significant influence over the products and services that we offer on their platforms. Our agreements with Sony and Microsoft typically give significant control to them over the approval, manufacturing and distribution of our products and services that are distributed through their platform, which could, in certain circumstances, leave us unable to get our products and services approved, manufactured or distributed to customers. Short-term investments are placed with high quality financial institutions or in short-duration, investment-grade securities. We limit the amount of credit exposure in any one financial institution or type of investment instrument. |
Royalties And Licenses | Royalties and Licenses Royalty-based obligations with content licensors and distribution affiliates are either paid in advance and capitalized as prepaid royalties or are accrued as incurred and subsequently paid. These royalty-based obligations are generally expensed to cost of revenue generally at the greater of the contractual rate or an effective royalty rate based on the total projected net revenue for contracts with guaranteed minimums. Prepayments made to thinly capitalized independent software developers and co-publishing affiliates are generally made in connection with the development of a particular product, and therefore, we are generally subject to development risk prior to the release of the product. Accordingly, payments that are due prior to completion of a product are generally expensed to research and development over the development period as the services are incurred. Payments due after completion of the product (primarily royalty-based in nature) are generally expensed as cost of revenue. Our contracts with some licensors include minimum guaranteed royalty payments, which are initially recorded as an asset and as a liability at the contractual amount when no performance remains with the licensor. When performance remains with the licensor, we record guarantee payments as an asset when actually paid and as a liability when incurred, rather than recording the asset and liability upon execution of the contract. Each quarter, we also evaluate the expected future realization of our royalty-based assets, as well as any unrecognized minimum commitments not yet paid to determine amounts we deem unlikely to be realized through product and service sales. Any impairments or losses determined before the launch of a product are generally charged to research and development expense. Impairments or losses determined post-launch are charged to cost of revenue. We evaluate long-lived royalty-based assets for impairment using undiscounted cash flows when impairment indicators exist. If impairment exists, then the assets are written down to fair value. Unrecognized minimum royalty-based commitments are accounted for as executory contracts, and therefore, any losses on these commitments are recognized when the underlying intellectual property is abandoned ( i.e. , cease use) or the contractual rights to use the intellectual property are terminated. |
Advertising Costs | Advertising Costs We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. Cooperative advertising costs are recognized when incurred and are classified as marketing and sales expense if there is a separate identifiable benefit for which we can reasonably estimate the fair value of the benefit identified. Otherwise, they are classified as a reduction of revenue and are generally accrued when revenue is recognized. We then reimburse the channel partner when qualifying claims are submitted. We are also reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Otherwise, vendor reimbursements are recognized as a reduction of the cost incurred with the same vendor. Vendor reimbursements of advertising costs of $46 million , $45 million , and $53 million reduced marketing and sales expense for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. For the fiscal years ended March 31, 2019, 2018 and 2017 , advertising expense, net of vendor reimbursements, totaled approximately $271 million , $261 million , and $281 million , respectively. |
Software Development Costs | Software Development Costs Research and development costs, which consist primarily of software development costs, are expensed as incurred. We are required to capitalize software development costs incurred for computer software to be sold, leased or otherwise marketed after technological feasibility of the software is established or for development costs that have alternative future uses. Under our current practice of developing new games, the technological feasibility of the underlying software is not established until substantially all product development and testing is complete, which generally includes the development of a working model. Software development costs that have been capitalized to date have been insignificant. |
Foreign Currency Translation | Foreign Currency Translation Generally, the functional currency for our foreign operating subsidiaries is its local currency. Assets and liabilities of foreign operations are translated into U.S. dollars using month-end exchange rates, and revenue and expenses are translated into U.S. dollars using average exchange rates. The effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Net foreign currency transaction gains (losses) of $(9) million , $18 million , and $(40) million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively, are included in interest and other income (expense), net, in our Consolidated Statements of Operations. These net foreign currency transaction gains (losses) are partially offset by net gains (losses) on our foreign currency forward contracts of $50 million , $(16) million , and $46 million for the fiscal years ended March 31, 2019, 2018 and 2017 , respectively. See Note 5 for additional information on our foreign currency forward contracts. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for both the expected impact of differences between the financial statement amount and the tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax losses and tax credit carryforwards. We record a valuation allowance against deferred tax assets when it is considered more likely than not that all or a portion of our deferred tax assets will not be realized. In making this determination, we are required to give significant weight to evidence that can be objectively verified. It is generally difficult to conclude that a valuation allowance is not needed when there is significant negative evidence, such as cumulative losses in recent years. Forecasts of future taxable income are considered to be less objective than past results. Therefore, cumulative losses weigh heavily in the overall assessment. In addition to considering forecasts of future taxable income, we are also required to evaluate and quantify other possible sources of taxable income in order to assess the realization of our deferred tax assets, namely the reversal of existing deferred tax liabilities, the carry back of losses and credits as allowed under current tax law, and the implementation of tax planning strategies. Evaluating and quantifying these amounts involves significant judgments. Each source of income must be evaluated based on all positive and negative evidence; this evaluation involves assumptions about future activity. Certain taxable temporary differences that are not expected to reverse during the carry forward periods permitted by tax law cannot be considered as a source of future taxable income that may be available to realize the benefit of deferred tax assets. The U.S. Tax Act creates new U.S. taxes on foreign earnings. An accounting policy election is available to either recognize the deferred tax impacts of the U.S. taxes on foreign earnings or to account for them as a period cost. We have elected to account for the impacts of these new taxes as a period cost. Share Repurchases Shares of our common stock repurchased pursuant to our repurchase program are retired. The purchase price of such repurchased shares of common stock is recorded as a reduction to additional paid-in-capital. If the balance in additional paid-in-capital is exhausted, the excess is recorded as a reduction to retained earnings. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets And Liabilities Measured On Recurring Basis | Fair Value Measurements at Reporting Date Using As of March 31, 2019 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 23 $ 23 $ — $ — Cash equivalents Money market funds 2,704 2,704 — — Cash equivalents Available-for-sale securities: Corporate bonds 327 — 327 — Short-term investments and cash equivalents U.S. Treasury securities 294 294 — — Short-term investments and cash equivalents U.S. agency securities 57 — 57 — Short-term investments and cash equivalents Commercial paper 233 — 233 — Short-term investments and cash equivalents Foreign government securities 58 — 58 — Short-term investments and cash equivalents Asset-backed securities 55 — 55 — Short-term investments and cash equivalents Certificates of deposit 2 — 2 — Short-term investments and cash equivalents Foreign currency derivatives 33 — 33 — Other current assets and other assets Deferred compensation plan assets (a) 11 11 — — Other assets Total assets at fair value $ 3,797 $ 3,032 $ 765 $ — Liabilities Contingent consideration (b) $ 136 $ — $ — $ 136 Accrued and other current liabilities Foreign currency derivatives 16 — 16 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 12 12 — — Other liabilities Total liabilities at fair value $ 164 $ 12 $ 16 $ 136 Fair Value Measurements at Reporting Date Using As of March 31, 2018 Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 286 $ 286 $ — $ — Cash equivalents Money market funds 1,876 1,876 — — Cash equivalents Available-for-sale securities: Corporate bonds 624 — 624 — Short-term investments U.S. Treasury securities 210 210 — — Short-term investments U.S. agency securities 78 — 78 — Short-term investments Commercial paper 150 — 150 — Short-term investments and cash equivalents Foreign government securities 52 — 52 — Short-term investments Certificates of deposit 2 — 2 — Cash equivalents Foreign currency derivatives 4 — 4 — Other current assets and other assets Deferred compensation plan assets (a) 10 10 — — Other assets Total assets at fair value $ 3,292 $ 2,382 $ 910 $ — Liabilities Contingent consideration (b) $ 122 $ — $ — $ 122 Other liabilities Foreign currency derivatives 56 — 56 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 11 11 — Other liabilities Total liabilities at fair value $ 189 $ 11 $ 56 $ 122 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent Consideration Balance as of March 31, 2018 $ 122 Additions — Change in fair value 14 Balance as of March 31, 2019 $ 136 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Financial Instruments [Abstract] | |
Fair Value Of Short-Term Investments | Short-term investments consisted of the following as of March 31, 2019 and 2018 (in millions): As of March 31, 2019 As of March 31, 2018 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 325 $ — $ (1 ) $ 324 $ 629 $ — $ (5 ) $ 624 U.S. Treasury securities 153 — — 153 212 — (2 ) 210 U.S. agency securities 44 — — 44 79 — (1 ) 78 Commercial paper 112 — — 112 109 — — 109 Foreign government securities 50 — — 50 53 — (1 ) 52 Asset-backed securities 53 — — 53 — — — — Certificates of deposit 1 — — 1 — — — — Short-term investments $ 738 $ — $ (1 ) $ 737 $ 1,082 $ — $ (9 ) $ 1,073 |
Fair Value Of Short-Term Investments By Stated Maturity Date Schedule | The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2019 and 2018 (in millions): As of March 31, 2019 As of March 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 449 $ 448 $ 521 $ 520 Due 1 year through 5 years 287 287 561 553 Due after 5 years 2 2 — — Short-term investments $ 738 $ 737 $ 1,082 $ 1,073 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Derivative Financial Instruments [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of March 31, 2019 As of March 31, 2018 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 295 $ — $ 10 $ 329 $ 2 $ 4 Forward contracts to sell $ 1,355 $ 31 $ 4 $ 1,575 $ 1 $ 48 |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions): As of March 31, 2019 As of March 31, 2018 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 449 $ — $ 2 $ 210 $ 1 $ 1 Forward contracts to sell $ 394 $ 2 $ — $ 257 $ — $ 3 The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2019, 2018 and 2017 , was as follows (in millions): Statement of Operations Classification Amount of Gain (Loss) Recognized in the Statement of Operations Year Ended March 31, 2019 2018 2017 Foreign currency forward contracts not designated as hedging instruments Interest and other income (expense), net $ 25 $ (26 ) $ 43 |
Accumulated other Comprehensi_2
Accumulated other Comprehensive Income (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | fiscal years ended March 31, 2019, 2018 and 2017 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2016 $ 1 $ 14 $ (31 ) $ (16 ) Other comprehensive income (loss) before reclassifications (3 ) 54 (17 ) 34 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (36 ) — (37 ) Total other comprehensive income (loss), net of tax (4 ) 18 (17 ) (3 ) Balances as of March 31, 2017 $ (3 ) $ 32 $ (48 ) $ (19 ) Other comprehensive income (loss) before reclassifications (9 ) (126 ) 28 (107 ) Amounts reclassified from accumulated other comprehensive income (loss) 4 5 (10 ) (1 ) Total other comprehensive income (loss), net of tax (5 ) (121 ) 18 (108 ) Balances as of March 31, 2018 $ (8 ) $ (89 ) $ (30 ) $ (127 ) Cumulative-effect adjustment from the adoption of ASC 606 — 22 — 22 Cumulative-effect adjustment from the adoption of ASU 2018-02 — 1 — 1 Balances as of April 1, 2018 $ (8 ) $ (66 ) $ (30 ) $ (104 ) Other comprehensive income (loss) before reclassifications 6 96 (21 ) 81 Amounts reclassified from accumulated other comprehensive income (loss) 1 (8 ) — (7 ) Total other comprehensive income (loss), net of tax 7 88 (21 ) 74 Balances as of March 31, 2019 $ (1 ) $ 22 $ (51 ) $ (30 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the fiscal years ended March 31, 2019, 2018 and 2017 were as follows (in millions): Statement of Operations Classification Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Year Ended March 31, 2019 2018 2017 (Gains) losses on available-for-sale securities: Interest and other income (expense), net $ 1 $ 4 $ (1 ) Total, net of tax 1 4 (1 ) (Gains) losses on cash flow hedges from forward contracts: Net revenue (18 ) 10 (37 ) Research and development 10 (5 ) 1 Total, net of tax (8 ) 5 (36 ) (Gains) losses on foreign currency translation: Interest and other income (expense), net — (10 ) — Total, net of tax — (10 ) — Total net (gain) loss reclassified, net of tax $ (7 ) $ (1 ) $ (37 ) |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In The Carrying Amount Of Goodwill | The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2019 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,251 $ 14 $ (5 ) $ 2,260 Accumulated impairment (368 ) — — (368 ) Total $ 1,883 $ 14 $ (5 ) $ 1,892 The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2018 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,075 $ 171 $ 5 $ 2,251 Accumulated impairment (368 ) — — (368 ) Total $ 1,707 $ 171 $ 5 $ 1,883 |
Schedule Of Acquisition-Related Intangibles | Acquisition-related intangibles, consisted of the following (in millions): As of March 31, 2019 As of March 31, 2018 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 469 $ (427 ) $ 42 $ 417 $ (414 ) $ 3 Trade names and trademarks 161 (121 ) 40 161 (107 ) 54 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — In-process research and development 5 — 5 14 — 14 Total $ 725 $ (638 ) $ 87 $ 682 $ (611 ) $ 71 The fair value of acquisition-related intangible assets acquired in the GameFly Cloud Gaming acquisition during the three months ended June 30, 2018 was $43 million , all of which was allocated to developed and core technology, and has a useful life of approximately 4.0 years . |
Schedule Of Amortization Of Intangible Assets | Amortization of intangibles for the fiscal years ended March 31, 2019, 2018 and 2017 are classified in the Consolidated Statements of Operations as follows (in millions): Year Ended March 31, 2019 2018 2017 Cost of service and other $ 1 $ — $ 16 Cost of product 3 2 27 Operating expenses 23 9 6 Total $ 27 $ 11 $ 49 |
Schedule Of Future Amortization Of Acquisition-Related Intangibles | As of March 31, 2019 , future amortization of finite-lived acquisition-related intangibles that will be recorded in the Consolidated Statements of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2020 $ 30 2021 22 2022 22 2023 8 2024 — Thereafter — Total $ 82 |
Royalties And Licenses (Tables)
Royalties And Licenses (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Royalties And Licenses [Abstract] | |
Schedule Of Royalty-Related Assets | As of March 31, 2019 2018 Other current assets $ 53 $ 68 Other assets 30 34 Royalty-related assets $ 83 $ 102 |
Schedule Of Royalty-Related Liabilities | As of March 31, 2019 2018 Accrued royalties $ 144 $ 171 Other liabilities 51 74 Royalty-related liabilities $ 195 $ 245 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Deferred net revenue as of March 31, 2019 and April 1, 2018, as adjusted, consisted of (in millions): As of As of April 1, 2018 (as adjusted) Deferred net revenue (online-enabled games) $ 1,100 $ 949 Deferred net revenue (other) 94 105 Deferred net revenue (noncurrent) 23 5 Total Deferred net revenue $ 1,217 $ 1,059 |
Property And Equipment, Net Schedule | Property and equipment, net, as of March 31, 2019 and 2018 consisted of (in millions): As of March 31, 2019 2018 Computer, equipment and software $ 710 $ 744 Buildings 343 336 Leasehold improvements 139 139 Equipment, furniture and fixtures, and other 80 84 Land 66 66 Construction in progress 21 7 1,359 1,376 Less: accumulated depreciation (911 ) (923 ) Property and equipment, net $ 448 $ 453 |
Accrued And Other Current Liabilities Schedule | Accrued and other current liabilities as of March 31, 2019 and 2018 consisted of (in millions): As of March 31, 2019 2018 Other accrued expenses $ 290 $ 260 Accrued compensation and benefits 238 282 Accrued royalties 144 171 Sales returns and price protection reserves 150 — Contingent consideration 136 — Deferred net revenue (other) 94 108 Accrued and other current liabilities $ 1,052 $ 821 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components Of Income Before Provision For (Benefit From) Income Taxes | The components of our income before provision for income taxes for the fiscal years ended March 31, 2019, 2018 and 2017 are as follows (in millions): Year Ended March 31, 2019 2018 2017 Domestic $ 170 $ 440 $ 382 Foreign 909 1,009 828 Income before provision for income taxes $ 1,079 $ 1,449 $ 1,210 |
Provision For (Benefit From) Income Taxes | Provision for income taxes for the fiscal years ended March 31, 2019, 2018 and 2017 consisted of (in millions): Current Deferred Total Year Ended March 31, 2019 Federal $ 29 $ (18 ) $ 11 State 5 — 5 Foreign 42 2 44 $ 76 $ (16 ) $ 60 Year Ended March 31, 2018 Federal $ 138 $ 197 $ 335 State 4 9 13 Foreign 61 (3 ) 58 $ 203 $ 203 $ 406 Year Ended March 31, 2017 Federal $ 86 $ 96 $ 182 State 3 9 12 Foreign 51 (2 ) 49 $ 140 $ 103 $ 243 |
Schedule Of Differences Between Statutory Tax Rate And Effective Tax Rate | The differences between the statutory tax expense rate and our effective tax expense rate, expressed as a percentage of income before provision for income taxes, for the fiscal years ended March 31, 2019, 2018 and 2017 were as follows: Year Ended March 31, 2019 2018 2017 Statutory federal tax expense rate 21.0 % 31.5 % 35.0 % State taxes, net of federal benefit 0.7 % 0.8 % 1.0 % Differences between statutory rate and foreign effective tax rate (14.4 )% (19.1 )% (19.3 )% Tax reform (0.4 )% 16.2 % — % Excess tax benefit (1.9 )% (3.0 )% — % Research and development credits (2.4 )% (1.4 )% (0.7 )% Unremitted earnings of foreign subsidiaries — % — % 2.2 % Non-deductible stock-based compensation 2.3 % 2.7 % 2.3 % Other 0.7 % 0.3 % (0.4 )% Effective tax expense rate 5.6 % 28.0 % 20.1 % |
Deferred Tax Assets And Liabilities | The components of net deferred tax assets, as of March 31, 2019 and 2018 consisted of (in millions): As of March 31, 2019 2018 Deferred tax assets: Accruals, reserves and other expenses $ 101 $ 81 Tax credit carryforwards 140 121 Stock-based compensation 33 24 Net operating loss & capital loss carryforwards 22 23 Total 296 249 Valuation allowance (162 ) (138 ) Deferred tax assets, net of valuation allowance 134 111 Deferred tax liabilities: Amortization and depreciation (28 ) (27 ) Change in tax accounting method (66 ) — Other (7 ) (2 ) Total (101 ) (29 ) Deferred tax assets, net of valuation allowance and deferred tax liabilities $ 33 $ 82 |
Schedule Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Balance as of March 31, 2016 $ 331 Increases in unrecognized tax benefits related to prior year tax positions 3 Decreases in unrecognized tax benefits related to prior year tax positions (3 ) Increases in unrecognized tax benefits related to current year tax positions 64 Decreases in unrecognized tax benefits related to settlements with taxing authorities — Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (3 ) Changes in unrecognized tax benefits due to foreign currency translation (3 ) Balance as of March 31, 2017 389 Increases in unrecognized tax benefits related to prior year tax positions 10 Decreases in unrecognized tax benefits related to prior year tax positions (12 ) Increases in unrecognized tax benefits related to current year tax positions 75 Decreases in unrecognized tax benefits related to settlements with taxing authorities (7 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (2 ) Changes in unrecognized tax benefits due to foreign currency translation 4 Balance as of March 31, 2018 457 Increases in unrecognized tax benefits related to prior year tax positions — Decreases in unrecognized tax benefits related to prior year tax positions (41 ) Increases in unrecognized tax benefits related to current year tax positions 43 Decreases in unrecognized tax benefits related to settlements with taxing authorities (16 ) Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations (21 ) Changes in unrecognized tax benefits due to foreign currency translation (5 ) Balance as of March 31, 2019 $ 417 |
Financing Arrangement (Tables)
Financing Arrangement (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Debt Instruments [Abstract] | |
Schedule of Carrying Values Of Liability and Equity Components of Senior Notes [Table Text Block] | The carrying and fair values of the Senior Notes are as follows (in millions): As of As of Senior Notes: 3.70% Senior Notes due 2021 $ 600 $ 600 4.80% Senior Notes due 2026 400 400 Total principal amount $ 1,000 $ 1,000 Unaccreted discount (1 ) (2 ) Unamortized debt issuance costs (5 ) (6 ) Net carrying value of Senior Notes $ 994 $ 992 Fair value of Senior Notes (Level 2) $ 1,039 $ 1,038 |
Schedule Of Interest Expense Related To Notes | The following table summarizes our interest expense recognized for fiscal years 2019, 2018, and 2017 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31, 2019 2018 2017 Amortization of debt discount (1 ) — (2 ) Amortization of debt issuance costs (2 ) (2 ) (2 ) Coupon interest expense (41 ) (42 ) (42 ) Other interest expense (1 ) — (1 ) Total interest expense $ (45 ) $ (44 ) $ (47 ) |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Contractual Obligations | The following table summarizes our minimum contractual obligations as of March 31, 2019 (in millions): Fiscal Year Ending March 31, Total 2020 2021 2022 2023 2024 Thereafter Unrecognized commitments Developer/licensor commitments $ 973 $ 214 $ 292 $ 240 $ 93 $ 75 $ 59 Marketing commitments 377 94 97 85 37 37 27 Operating leases 264 52 54 44 36 28 50 Senior Notes interest 175 38 41 19 19 19 39 Other purchase obligations 92 40 30 19 3 — — Total unrecognized commitments 1,881 438 514 407 188 159 175 Recognized commitments Senior Notes principal and interest 1,003 3 600 — — — 400 Transition and other taxes 90 22 23 24 3 5 13 Licensing commitments 78 25 26 27 — — — Total recognized commitments 1,171 50 649 51 3 5 413 Total Commitments $ 3,052 $ 488 $ 1,163 $ 458 $ 191 $ 164 $ 588 |
Stock-Based Compensation And Em
Stock-Based Compensation And Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Assumptions Used In The Black-Scholes Valuation Model | ESPP Purchase Rights Year Ended March 31, 2019 2018 2017 Risk-free interest rate 2.2 - 2.5% 1.1 - 2.0% 0.5 - 0.8% Expected volatility 29 - 33% 28 - 30% 25 - 32% Weighted-average volatility 33 % 29 % 27 % Expected term 6 - 12 months 6 - 12 months 6 - 12 months Expected dividends None None None |
Schedule Of Assumptions Used In Monte-Carlo Simulation Model | The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Year Ended March 31, 2019 2018 2017 Risk-free interest rate 2.6 % 1.5 - 1.6% 0.8 % Expected volatility 16 - 47% 17 - 46% 16 - 57% Weighted-average volatility 28 % 28 % 29 % Expected dividends None None None |
Schedule Of Stock-Based Compensation Expense By Statement Of Operations | Year Ended March 31, 2019 2018 2017 Cost of revenue $ 4 $ 3 $ 3 Research and development 184 146 109 Marketing and sales 33 32 31 General and administrative 63 61 53 Stock-based compensation expense $ 284 $ 242 $ 196 |
Summary Of Outstanding And Exercisable Stock Options | The following table summarizes outstanding and exercisable stock options as of March 31, 2019 : Options Outstanding and Exercisable Range of Exercise Prices Number of Shares (in thousands) Weighted- Average Remaining Contractual Term (in years) Weighted- Average Exercise Prices Potential Dilution $11.53 - $22.42 52 0.62 $ 19.99 — % 26.25 - 26.25 670 4.59 26.25 0.3 % 33.60 - 37.12 653 5.16 35.97 0.2 % $11.53 - $37.12 1,375 4.71 $ 30.63 0.5 % |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | The following table summarizes our ESPP activity for fiscal years ended March 31, 2019, 2018 and 2017 : Shares Issued Exercise Prices for Purchase Rights Weighted-Average Fair Values of Purchase Rights Fiscal Year 2017 0.7 $54.60 - $67.56 $ 17.93 Fiscal Year 2018 0.6 $67.56 - $99.82 $ 21.57 Fiscal Year 2019 0.5 $89.46 - $107.51 $ 31.88 |
Shares Repurchased and Retired | The following table summarizes total shares repurchased during fiscal years 2019, 2018, and 2017 : May 2015 Program May 2017 Program May 2018 Program Total (In millions) Shares Amount Shares Amount Shares Amount Shares Amount Fiscal Year 2017 6.5 $ 508 — $ — — $ — 6.5 $ 508 Fiscal Year 2018 0.3 $ 31 5.0 $ 570 — $ — 5.3 $ 601 Fiscal Year 2019 — $ — 0.6 $ 76 10.4 $ 1,116 11.0 $ 1,192 |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes our stock option activity for the fiscal year ended March 31, 2019 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2018 1,615 $ 30.28 Granted 5 106.55 Exercised (245 ) 30.00 Forfeited, cancelled or expired — — Outstanding as of March 31, 2019 1,375 $ 30.63 4.71 $ 98 Vested and expected to vest 1,375 $ 30.63 4.71 $ 98 Exercisable as of March 31, 2019 1,375 $ 30.63 4.71 $ 98 |
Restricted Stock Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Each restricted stock unit granted reduces the number of shares available for grant by 1.43 shares under our Equity Plan. The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2019 : Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Values Outstanding as of March 31, 2018 5,948 $ 94.57 Granted 2,169 128.76 Vested (2,541 ) 88.09 Forfeited or cancelled (616 ) 109.09 Outstanding as of March 31, 2019 4,960 $ 111.03 |
Performance Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | Performance- Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2018 796 $ 110.51 Granted — — Forfeited or cancelled (217 ) 110.51 Outstanding as of March 31, 2019 579 $ 110.51 |
Market Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2018 1,342 $ 118.35 Granted 573 185.24 Vested (415 ) 98.48 Forfeited or cancelled (542 ) 136.91 Outstanding as of March 31, 2019 958 $ 156.49 |
Interest And Other Income (Ex_2
Interest And Other Income (Expense), Net (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Interest and Other Income [Abstract] | |
Schedule Of Interest And Other Income (Expense), Net | Interest and other income (expense), net, for the fiscal years ended March 31, 2019, 2018 and 2017 consisted of (in millions): Year Ended March 31, 2019 2018 2017 Interest expense (45 ) (44 ) (47 ) Interest income 88 50 25 Net gain (loss) on foreign currency transactions (9 ) 18 (40 ) Net gain (loss) on foreign currency forward contracts 50 (16 ) 46 Other income (expense), net (1 ) 7 2 Interest and other income (expense), net $ 83 $ 15 $ (14 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic Earnings And Diluted Earnings Per Share | Year Ended March 31, (In millions, except per share amounts) 2019 2018 2017 Net income $ 1,019 $ 1,043 $ 967 Shares used to compute earnings per share: Weighted-average common stock outstanding — basic 303 308 303 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 3 4 4 Dilutive potential common shares related to the Convertible Notes (a) — — 1 Dilutive potential common shares related to the Warrants (a) — — 6 Weighted-average common stock outstanding — diluted 306 312 314 Earnings per share: Basic $ 3.36 $ 3.39 $ 3.19 Diluted $ 3.33 $ 3.34 $ 3.08 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Net Revenue By Revenue Composition | Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. Our CODM currently reviews total company operating results to assess overall performance and allocate resources. As of March 31, 2019 , we have only one reportable segment, which represents our only operating segment. Information about our total net revenue by composition and by platform for the fiscal years ended March 31, 2019, 2018 and 2017 is presented below (in millions): Year Ended March 31, 2019 2018 2017 Net revenue by composition Full game downloads $ 680 $ 707 $ 659 Live services 2,216 2,083 1,589 Mobile 814 660 626 Total Digital 3,710 3,450 2,874 Packaged goods and other 1,240 1,700 1,971 Net revenue $ 4,950 $ 5,150 $ 4,845 |
Schedule of Net Revenue by Platform [Table Text Block] | Year Ended March 31, 2019 2018 2017 Platform net revenue Console $ 3,333 $ 3,635 $ 3,390 PC / Browser 780 827 773 Mobile 824 672 627 Other 13 16 55 Net revenue $ 4,950 $ 5,150 $ 4,845 |
Net Revenue By Geographic Area | Information about our operations in North America and internationally as of and for the fiscal years ended March 31, 2019, 2018 and 2017 is presented below (in millions): Year Ended March 31, 2019 2018 2017 Net revenue from unaffiliated customers North America $ 1,906 $ 2,090 $ 2,119 International 3,044 3,060 2,726 Total $ 4,950 $ 5,150 $ 4,845 |
Long-Lived Assets By Geographic Area | As of March 31, 2019 2018 Long-lived assets North America $ 371 $ 376 International 77 77 Total $ 448 $ 453 |
Quarterly Financial And Marke_2
Quarterly Financial And Market Information (Tables) | 12 Months Ended |
Mar. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Summary Of Quarterly Financial And Market Information | Quarter Ended Year Ended (In millions, except per share data) June 30 September 30 December 31 March 31 Fiscal 2019 Consolidated (a) Net revenue $ 1,137 $ 1,286 $ 1,289 $ 1,238 $ 4,950 Gross profit 922 868 876 962 3,628 Operating income 300 258 242 196 996 Net income 293 255 262 209 1,019 Common Stock Earnings per share — Basic $ 0.96 $ 0.84 $ 0.87 $ 0.70 $ 3.36 Earnings per share — Diluted $ 0.95 $ 0.83 $ 0.86 $ 0.69 $ 3.33 Fiscal 2018 Consolidated Net revenue $ 1,449 $ 959 $ 1,160 $ 1,582 $ 5,150 Gross profit 1,295 570 659 1,349 3,873 Operating income (loss) 743 (41 ) (21 ) 753 1,434 Net income (loss) 644 (22 ) (186 ) (b) 607 (b) 1,043 Common Stock Earnings (loss) per share — Basic $ 2.08 $ (0.07 ) $ (0.60 ) $ 1.98 $ 3.39 Earnings (loss) per share — Diluted $ 2.06 $ (0.07 ) $ (0.60 ) $ 1.95 $ 3.34 |
Description Of Business And B_2
Description Of Business And Basis of Presentation (Fiscal Periods) (Details) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Description Of Business And Basis of Presentation [Line Items] | |||
Current and Prior Years Fiscal Period (in weeks) | 52 | 52 | 52 |
Minimum [Member] | |||
Description Of Business And Basis of Presentation [Line Items] | |||
Fiscal Year (in weeks) | 52 | ||
Maximum [Member] | |||
Description Of Business And Basis of Presentation [Line Items] | |||
Fiscal Year (in weeks) | 53 |
Description Of Business And B_3
Description Of Business And Basis of Presentation New revenue standard adoption (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Net revenue | $ 1,238 | [1] | $ 1,289 | $ 1,286 | $ 1,137 | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | $ 4,950 | [1] | $ 5,150 | $ 4,845 | ||||
Retained Earnings (Accumulated Deficit) | $ 5,358 | $ 4,062 | 5,358 | 4,062 | |||||||||||||
Service and other [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Net revenue | 3,357 | $ 2,564 | $ 2,205 | ||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Sales return and price protection reserves | $ 158 | ||||||||||||||||
Retained Earnings (Accumulated Deficit) | 590 | ||||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Service and other [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Net revenue | 530 | ||||||||||||||||
Cost of Sales [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Mobile platform fees | $ 64 | $ 188 | |||||||||||||||
Transferred at Point in Time [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Revenue, Information Used to Allocate Transaction Price | 0.75 | ||||||||||||||||
Transferred over Time [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Revenue, Information Used to Allocate Transaction Price | 0.25 | ||||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Increase (Decrease) in Deferred Revenue | $ 740 | ||||||||||||||||
Net revenue | 107 | ||||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Service and other [Member] | |||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||
Net revenue | $ 718 | ||||||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} |
Description Of Business And B_4
Description Of Business And Basis of Presentation New revenue standard adoption - Balance Sheet at Period Start (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Receivables, Net | $ 623 | $ 385 | |||
Deferred income taxes, net | 35 | 84 | |||
Deferred net revenue, other | 94 | 108 | |||
Deferred net revenue (online-enabled games) | 1,100 | 1,622 | |||
Retained Earnings (Accumulated Deficit) | 5,358 | 4,062 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (30) | (127) | $ (19) | $ (16) | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Receivables, Net | $ 158 | ||||
Deferred income taxes, net | (64) | ||||
Sales return and price protection reserves | 158 | ||||
Deferred net revenue, other | (3) | ||||
Deferred net revenue (online-enabled games) | (673) | ||||
Retained Earnings (Accumulated Deficit) | 590 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 22 | ||||
Accounting Standards Update 2014-09 [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Receivables, Net | 543 | ||||
Deferred income taxes, net | 20 | ||||
Sales return and price protection reserves | 158 | ||||
Deferred net revenue, other | 105 | ||||
Deferred net revenue (online-enabled games) | 949 | ||||
Retained Earnings (Accumulated Deficit) | 4,652 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (105) | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Receivables, Net | 385 | ||||
Deferred income taxes, net | 84 | ||||
Sales return and price protection reserves | 0 | ||||
Deferred net revenue, other | 108 | ||||
Deferred net revenue (online-enabled games) | 1,622 | ||||
Retained Earnings (Accumulated Deficit) | 4,062 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (127) |
Description Of Business And B_5
Description Of Business And Basis of Presentation New revenue standard adoption - Balance Sheet at Period End (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Receivables, Net | $ 623 | $ 385 | ||
Other current assets | 313 | 288 | ||
Deferred income taxes, net | 35 | 84 | ||
Other assets | 114 | 89 | ||
Deferred net revenue, other | 94 | 108 | ||
Deferred net revenue (online-enabled games) | 1,100 | 1,622 | ||
Other liabilities | 132 | 255 | ||
Retained Earnings (Accumulated Deficit) | 5,358 | 4,062 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (30) | $ (127) | $ (19) | $ (16) |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Receivables, Net | 150 | |||
Other current assets | 2 | |||
Deferred income taxes, net | (51) | |||
Other assets | 2 | |||
Sales return and price protection reserves | 150 | |||
Deferred net revenue, other | (268) | |||
Deferred net revenue (online-enabled games) | (304) | |||
Other liabilities | 12 | |||
Retained Earnings (Accumulated Deficit) | 523 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (10) | |||
Accounting Standards Update 2014-09 [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Receivables, Net | 623 | |||
Other current assets | 313 | |||
Deferred income taxes, net | 35 | |||
Other assets | 114 | |||
Sales return and price protection reserves | 150 | |||
Deferred net revenue, other | 94 | |||
Deferred net revenue (online-enabled games) | 1,100 | |||
Other liabilities | 132 | |||
Retained Earnings (Accumulated Deficit) | 5,358 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (30) | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Receivables, Net | 473 | |||
Other current assets | 311 | |||
Deferred income taxes, net | 86 | |||
Other assets | 112 | |||
Sales return and price protection reserves | 0 | |||
Deferred net revenue, other | 362 | |||
Deferred net revenue (online-enabled games) | 1,404 | |||
Other liabilities | 120 | |||
Retained Earnings (Accumulated Deficit) | 4,835 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (20) |
Description Of Business And B_6
Description Of Business And Basis of Presentation New revenue standard adoption - Income Statement at Period End (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 1,238 | [1] | $ 1,289 | [1] | $ 1,286 | [1] | $ 1,137 | [1] | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | $ 4,950 | [1] | $ 5,150 | $ 4,845 | ||
Cost of Revenue | 1,322 | 1,277 | 1,298 | |||||||||||||||
Gross profit | 962 | 876 | 868 | 922 | 1,349 | 659 | 570 | 1,295 | 3,628 | 3,873 | 3,547 | |||||||
Operating Expenses | 2,632 | 2,439 | 2,323 | |||||||||||||||
Operating Income (Loss) | 196 | 242 | 258 | 300 | 753 | (21) | (41) | 743 | 996 | 1,434 | 1,224 | |||||||
Other Nonoperating Income (Expense) | 83 | 15 | (14) | |||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,079 | 1,449 | 1,210 | |||||||||||||||
Income Tax Expense (Benefit) | 60 | 406 | 243 | |||||||||||||||
Net income (loss) | $ 209 | $ 262 | $ 255 | $ 293 | $ 607 | [2] | $ (186) | [2] | $ (22) | $ 644 | $ 1,019 | $ 1,043 | $ 967 | |||||
Earnings Per Share, Basic | $ 0.70 | $ 0.87 | $ 0.84 | $ 0.96 | $ 1.98 | $ (0.60) | $ (0.07) | $ 2.08 | $ 3.36 | $ 3.39 | $ 3.19 | |||||||
Earnings Per Share, Diluted | $ 0.69 | $ 0.86 | $ 0.83 | $ 0.95 | $ 1.95 | $ (0.60) | $ (0.07) | $ 2.06 | $ 3.33 | $ 3.34 | $ 3.08 | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 107 | |||||||||||||||||
Cost of Revenue | 188 | |||||||||||||||||
Gross profit | (81) | |||||||||||||||||
Operating Expenses | 0 | |||||||||||||||||
Operating Income (Loss) | (81) | |||||||||||||||||
Other Nonoperating Income (Expense) | 0 | |||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (81) | |||||||||||||||||
Income Tax Expense (Benefit) | (14) | |||||||||||||||||
Net income (loss) | $ (67) | |||||||||||||||||
Earnings Per Share, Basic | $ (0.22) | |||||||||||||||||
Earnings Per Share, Diluted | $ (0.22) | |||||||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606, Percentage [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Revenues, percent | 2.00% | |||||||||||||||||
Cost of revenue, percent | 17.00% | |||||||||||||||||
Gross profit, percent | (2.00%) | |||||||||||||||||
Operating expenses, percent | 0.00% | |||||||||||||||||
Operating income (loss), percent | (8.00%) | |||||||||||||||||
Other nonoperating income (expense), percent | 0.00% | |||||||||||||||||
Income before provision for income taxes, percent | (7.00%) | |||||||||||||||||
Income tax expense (benefit), percent | (19.00%) | |||||||||||||||||
Net income (loss), percent | (6.00%) | |||||||||||||||||
Earnings per share, basic, percent | (6.00%) | |||||||||||||||||
Earnings per share, diluted, percent | (6.00%) | |||||||||||||||||
Product [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 1,593 | $ 2,586 | $ 2,640 | |||||||||||||||
Cost of Revenue | 517 | 822 | 893 | |||||||||||||||
Product [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | (611) | |||||||||||||||||
Cost of Revenue | $ (120) | |||||||||||||||||
Product [Member] | Difference between Revenue Guidance in Effect before and after Topic 606, Percentage [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Revenues, percent | (28.00%) | |||||||||||||||||
Cost of revenue, percent | (19.00%) | |||||||||||||||||
Service and other [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 3,357 | 2,564 | 2,205 | |||||||||||||||
Cost of Revenue | 805 | $ 455 | $ 405 | |||||||||||||||
Service and other [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | 718 | |||||||||||||||||
Cost of Revenue | $ 308 | |||||||||||||||||
Service and other [Member] | Difference between Revenue Guidance in Effect before and after Topic 606, Percentage [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Revenues, percent | 27.00% | |||||||||||||||||
Cost of revenue, percent | 62.00% | |||||||||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 4,950 | |||||||||||||||||
Cost of Revenue | 1,322 | |||||||||||||||||
Gross profit | 3,628 | |||||||||||||||||
Operating Expenses | 2,632 | |||||||||||||||||
Operating Income (Loss) | 996 | |||||||||||||||||
Other Nonoperating Income (Expense) | 83 | |||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,079 | |||||||||||||||||
Income Tax Expense (Benefit) | 60 | |||||||||||||||||
Net income (loss) | $ 1,019 | |||||||||||||||||
Earnings Per Share, Basic | $ 3.36 | |||||||||||||||||
Earnings Per Share, Diluted | $ 3.33 | |||||||||||||||||
Accounting Standards Update 2014-09 [Member] | Product [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 1,593 | |||||||||||||||||
Cost of Revenue | 517 | |||||||||||||||||
Accounting Standards Update 2014-09 [Member] | Service and other [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | 3,357 | |||||||||||||||||
Cost of Revenue | 805 | |||||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | 4,843 | |||||||||||||||||
Cost of Revenue | 1,134 | |||||||||||||||||
Gross profit | 3,709 | |||||||||||||||||
Operating Expenses | 2,632 | |||||||||||||||||
Operating Income (Loss) | 1,077 | |||||||||||||||||
Other Nonoperating Income (Expense) | 83 | |||||||||||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,160 | |||||||||||||||||
Income Tax Expense (Benefit) | 74 | |||||||||||||||||
Net income (loss) | $ 1,086 | |||||||||||||||||
Earnings Per Share, Basic | $ 3.58 | |||||||||||||||||
Earnings Per Share, Diluted | $ 3.55 | |||||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Product [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | $ 2,204 | |||||||||||||||||
Cost of Revenue | 637 | |||||||||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Service and other [Member] | ||||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||||
Net revenue | 2,639 | |||||||||||||||||
Cost of Revenue | $ 497 | |||||||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} | |||||||||||||||||
[2] | During the quarters ended December 31, 2017 and March 31, 2018, we recognized tax expense of $176 million and $59 million, respectively, due to the application of the U.S. Tax Act, enacted on December 22, 2017. |
Description Of Business And B_7
Description Of Business And Basis of Presentation Other Recently Issued Accounting Standards (Details) - Accounting Standards Update 2016-02 [Member] $ in Millions | Apr. 01, 2019USD ($) |
Minimum [Member] | |
Description Of Business And Basis of Presentation [Line Items] | |
Operating Lease, Liability | $ 200 |
Maximum [Member] | |
Description Of Business And Basis of Presentation [Line Items] | |
Operating Lease, Liability | $ 300 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Property Plant and Equipment and Internal Use Software Policy) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Capitalized internal-use software | $ 37 | $ 35 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 9 years | |
Buildings | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Buildings | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 25 years | |
Computer equipment and software | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer equipment and software | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 6 years | |
Equipment, Furniture and Fixtures, and Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment, Furniture and Fixtures, and Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Computer Software, Intangible Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized Internal-use Software, Estimated Useful Life | 3 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Acquisition-Related Intangibles and Other Long-Lived Assets) (Details) | 12 Months Ended |
Mar. 31, 2019 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 9 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Concentration of Credit Risk, Significant Customers and Channel Partners) (Details) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts Receivable [Member] | Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 34.00% | 39.00% | |
Accounts Receivable [Member] | Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 33.00% | 21.00% | |
Accounts Receivable [Member] | Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 65.00% | 67.00% | 64.00% |
Product Concentration Risk [Member] | Sales Revenue, Product Line [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 66.00% | 70.00% | 70.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Expenses [Abstract] | |||
Advertising expense, net of vendor reimbursements | $ 271 | $ 261 | $ 281 |
Cooperative Advertising Amount | $ 46 | $ 45 | $ 53 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Foreign Currency Translation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative [Line Items] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (9) | $ 18 | $ (40) |
Net gain (loss) on foreign currency forward contracts | $ 50 | $ (16) | $ 46 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) $ in Millions | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total assets at fair value | $ 3,797 | $ 3,292 | ||
Total liabilities at fair value | 164 | 189 | ||
Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total assets at fair value | 3,032 | 2,382 | ||
Total liabilities at fair value | 12 | 11 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total assets at fair value | 765 | 910 | ||
Total liabilities at fair value | 16 | 56 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total assets at fair value | 0 | 0 | ||
Total liabilities at fair value | 136 | 122 | ||
Short-Term Investments [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 210 | |||
Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 624 | |||
Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Agencies Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 78 | |||
Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Security, Government, Non-US [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 52 | |||
Short-Term Investments And Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 294 | |||
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 327 | |||
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | US Agencies Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 57 | |||
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 233 | 150 | ||
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Debt Security, Government, Non-US [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 58 | |||
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 2 | |||
Short-Term Investments And Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Financial Instruments, Owned, Mortgages, Mortgage-backed and Asset-backed Securities, at Fair Value | 55 | |||
Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Bank Time Deposits [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Cash equivalents | 23 | 286 | ||
Cash Equivalents [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Cash equivalents | 2,704 | 1,876 | ||
Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of Deposit [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Available-for-sale of securities | 2 | |||
Other Current Assets and Other Assets [Domain] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Derivatives [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Foreign currency derivatives, assets | 33 | 4 | ||
Other Assets [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred compensation plan assets | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Deferred compensation plan assets and liabilities | [1] | 11 | 10 | |
Accrued And Other Current Liabilities And Other Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Contingent consideration | [2] | 136 | ||
Accrued and Other Current Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Derivatives [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Foreign currency derivatives, liabilities | 16 | 56 | ||
Other Liabilities [Members] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred Compensation Plan Liabilities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Deferred compensation plan assets and liabilities | [1] | 12 | 11 | |
Other Liabilities [Members] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value, Contingent consideration | $ 136 | $ 122 | [2] | |
Minimum [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0292 | 0.033 | ||
Maximum [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0308 | 0.036 | ||
[1] | The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. | |||
[2] | The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. We estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation. At March 31, 2019, the discount rates used ranged from 2.9 percent to 3.1 percent. See Note 7 for additional information regarding the Respawn acquisition. At March 31, 2018, the discount rates used ranged from 3.3 percent to 3.6 percent. |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value Measurements Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Change in fair value | $ 14 | ||
Other Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Contingent Consideration [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value, Contingent consideration | 136 | $ 122 | [1] |
Respawn Entertainment, LLC [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Change in fair value | 14 | ||
Respawn Entertainment, LLC [Member] | Contingent Consideration [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value, Contingent consideration | $ 136 | $ 0 | |
[1] | The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. We estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation. At March 31, 2019, the discount rates used ranged from 2.9 percent to 3.1 percent. See Note 7 for additional information regarding the Respawn acquisition. At March 31, 2018, the discount rates used ranged from 3.3 percent to 3.6 percent. |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value Measurments Narrative) (Details) | Mar. 31, 2019 | Mar. 31, 2018 |
Minimum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0292 | 0.033 |
Maximum [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0308 | 0.036 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Financial Instruments [Line Items] | ||||
Cash and cash equivalents | $ 4,708 | $ 4,258 | $ 2,565 | $ 2,493 |
(Fair Value Of Short-Term Inves
(Fair Value Of Short-Term Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financial Instruments [Line Items] | ||
Fair Value | $ 737 | $ 1,073 |
Short-Term Investments [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 738 | 1,082 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (9) |
Fair Value | 737 | 1,073 |
Short-Term Investments [Member] | Corporate Bonds [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 325 | 629 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (5) |
Fair Value | 324 | 624 |
Short-Term Investments [Member] | U.S. Treasury Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 153 | 212 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (2) |
Fair Value | 153 | 210 |
Short-Term Investments [Member] | U.S. Agency Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 44 | 79 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 44 | 78 |
Short-Term Investments [Member] | Commercial Paper [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 112 | 109 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 112 | 109 |
Short-Term Investments [Member] | Debt Security, Government, Non-US [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 50 | 53 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (1) |
Fair Value | 50 | 52 |
Short-Term Investments [Member] | Asset-backed Securities [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 53 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 53 | 0 |
Short-Term Investments [Member] | Certificates of Deposit [Member] | ||
Financial Instruments [Line Items] | ||
Cost or Amortized Cost | 1 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1 | $ 0 |
(Fair Value Of Short-Term Inv_2
(Fair Value Of Short-Term Investments By Stated Maturity Date Schedule) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Financial Instruments [Line Items] | ||
Short-term investments, Fair Value | $ 737 | $ 1,073 |
Short-Term Investments [Member] | ||
Financial Instruments [Line Items] | ||
Short-term investments, Amortized Cost | 738 | 1,082 |
Short-term investments, Fair Value | 737 | 1,073 |
Due in 1 year or less, Amortized Cost | 449 | 521 |
Due in 1 year or less, Fair Value | 448 | 520 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 287 | 561 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 287 | 553 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 2 | 0 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | $ 2 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ 8 | $ (5) | $ 36 |
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | $ 25 | $ 10 | |
Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Foreign Currency Forward And Option Contracts Maximum Maturity Period | 18 months | ||
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Foreign Currency Forward And Option Contracts Maximum Maturity Period | 3 months |
Derivative Financial Instrume_4
Derivative Financial Instruments Gross Notional Amounts and Fair Values for Currency Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | $ 0 | $ 2 |
Fair value of foreign currency contracts outstanding, Liabilities | 10 | 4 |
Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | 31 | 1 |
Fair value of foreign currency contracts outstanding, Liabilities | 4 | 48 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 295 | 329 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 1,355 | 1,575 |
United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 449 | 210 |
United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 394 | 257 |
Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Current | 0 | 1 |
Derivative Liability, Current | 2 | 1 |
Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Current | 2 | 0 |
Derivative Liability, Current | $ 0 | $ 3 |
Location of Gain (Loss) Recogni
Location of Gain (Loss) Recognized in Income on Derivative, Non-Designated Hedging Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Interest And Other Income (Expense), Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 25 | $ (26) | $ 43 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (30) | $ (127) | $ (19) | $ (16) | |
Other comprehensive income (loss) before reclassifications | 81 | (107) | 34 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (7) | (1) | (37) | ||
Net current-period other comprehensive income (loss) | 74 | (108) | (3) | ||
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1) | (8) | (3) | 1 | |
Other comprehensive income (loss) before reclassifications | 6 | (9) | (3) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | 4 | (1) | ||
Net current-period other comprehensive income (loss) | 7 | (5) | (4) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 22 | (89) | 32 | 14 | |
Other comprehensive income (loss) before reclassifications | 96 | (126) | 54 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (8) | 5 | (36) | ||
Net current-period other comprehensive income (loss) | 88 | (121) | 18 | ||
Foreign Currency Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (51) | (30) | (48) | $ (31) | |
Other comprehensive income (loss) before reclassifications | (21) | 28 | (17) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (10) | 0 | ||
Net current-period other comprehensive income (loss) | $ (21) | $ 18 | $ (17) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 22 | ||||
Other comprehensive income (loss) before reclassifications | 22 | ||||
ASU 2018-02 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | ||||
Adjustments for adopted accounting pronouncements on April 1, 2018 [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (104) | ||||
Adjustments for adopted accounting pronouncements on April 1, 2018 [Member] | Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (8) | ||||
Adjustments for adopted accounting pronouncements on April 1, 2018 [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (66) | ||||
Adjustments for adopted accounting pronouncements on April 1, 2018 [Member] | Foreign Currency Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (30) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Effects on net income of amounts reclassified from accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | $ (7) | $ (1) | $ (37) |
Unrealized Gains (Losses) on Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | 1 | 4 | (1) |
Unrealized Gains (Losses) on Available-for-Sale Securities | Interest Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | 1 | 4 | (1) |
Unrealized Gains (Losses) on Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (8) | 5 | (36) |
Unrealized Gains (Losses) on Derivative Instruments | Sales Revenue, Net [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | (18) | 10 | (37) |
Unrealized Gains (Losses) on Derivative Instruments | Research and Development | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | 10 | (5) | 1 |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | 0 | (10) | 0 |
Foreign Currency Translation Adjustment [Member] | Interest Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income (Loss), Current Period, Net of Tax | $ 0 | $ (10) | $ 0 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Millions | May 03, 2018USD ($) | Dec. 01, 2017USD ($) | Mar. 31, 2019USD ($) | May 22, 2019USD ($) | Mar. 31, 2018USD ($) | |
Business Acquisition [Line Items] | ||||||
Number of businesses acquired that were immaterial | 1 | |||||
Contingent consideration expense | $ 14 | |||||
GameFly, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | May 3, 2018 | |||||
Payments to Acquire Businesses, Gross | $ 50 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 7 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 43 | |||||
Stock Granted, Value, Share-based Compensation, Gross | $ 4 | |||||
Respawn Entertainment, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Dec. 1, 2017 | |||||
Business Combination, Consideration Transferred | $ 273 | |||||
Payments to Acquire Businesses, Gross | 151 | |||||
Business Combination, Contingent Consideration, Liability | 122 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 171 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 74 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 28 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 140 | 35 | $ 105 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 167 | |||||
Contingent consideration expense | 14 | |||||
Contingent Consideration [Member] | Respawn Entertainment, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Fair value, Contingent consideration | 136 | $ 0 | ||||
Other Liabilities [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Fair value, Contingent consideration | $ 136 | $ 122 | [1] | |||
[1] | The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. We estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation. At March 31, 2019, the discount rates used ranged from 2.9 percent to 3.1 percent. See Note 7 for additional information regarding the Respawn acquisition. At March 31, 2018, the discount rates used ranged from 3.3 percent to 3.6 percent. |
(Goodwill And Acquisition-Relat
(Goodwill And Acquisition-Related Intangibles, Net) (Details) - USD ($) $ in Millions | May 03, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 01, 2017 |
Minimum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 1 year | ||||
Maximum [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 9 years | ||||
Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years 2 months | 4 years 3 months | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of Intangible Assets, Finite-lived | $ 15 | ||||
Respawn Entertainment, LLC [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 74 | ||||
GameFly, Inc. [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 43 | ||||
GameFly, Inc. [Member] | Weighted Average | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
(Schedule Of Changes In The Car
(Schedule Of Changes In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning balance | $ 2,251 | $ 2,075 |
Accumulated impairment, beginning balance | (368) | (368) |
Goodwill, Net, Beginning balance | 1,883 | 1,707 |
Goodwill acquired | 14 | 171 |
Effects of foreign currency translation | (5) | 5 |
Goodwill, Gross, Ending balance | 2,260 | 2,251 |
Accumulated impairment, ending balance | (368) | (368) |
Goodwill, Net, Ending balance | $ 1,892 | $ 1,883 |
(Schedule Of Acquisition-Relate
(Schedule Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 725 | $ 682 |
Accumulated amortization | (638) | (611) |
Acquisition-related intangibles, net | 87 | 71 |
Developed And Core Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 469 | 417 |
Accumulated amortization | (427) | (414) |
Acquisition-related intangibles, net | 42 | 3 |
Trade Names And Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 161 | 161 |
Accumulated amortization | (121) | (107) |
Acquisition-related intangibles, net | 40 | 54 |
Registered User Base And Other Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5 | 5 |
Accumulated amortization | (5) | (5) |
Acquisition-related intangibles, net | 0 | 0 |
Carrier Contracts And Related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 85 | 85 |
Accumulated amortization | (85) | (85) |
Acquisition-related intangibles, net | 0 | 0 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 5 | 14 |
Accumulated amortization | 0 | 0 |
Acquisition-related intangibles, net | $ 5 | $ 14 |
(Schedule Of Amortization Of In
(Schedule Of Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 23 | $ 9 | $ 6 |
Cost of product | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 3 | 2 | 27 |
Cost of service and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 1 | 0 | 16 |
Operating expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | 23 | 9 | 6 |
Total amortization | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 27 | $ 11 | $ 49 |
(Schedule Of Future Amortizatio
(Schedule Of Future Amortization Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 30 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 22 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 22 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 8 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 0 | |
Acquisition-related intangibles, net | 87 | $ 71 |
Excluding In Process and Research Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition-related intangibles, net | $ 82 |
Royalties And Licenses (Narrati
Royalties And Licenses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2019 | |
Royalties And Licenses [Line Items] | ||
Asset Impairment Charges | $ 23 | |
Business Exit Costs | 19 | |
Royalty-Based Asset Impairment Charge and Loss On Previously Minimum Unrecognized Royalty-Based Commitment | 42 | |
Developer And Licensor - Royalty Bearing [Member] | ||
Royalties And Licenses [Line Items] | ||
Unrecorded unconditional purchase obligation | $ 973 | |
Research and Development Expense | ||
Royalties And Licenses [Line Items] | ||
Asset Impairment Charges | 32 | |
Cost of service revenue [Member] | ||
Royalties And Licenses [Line Items] | ||
Business Exit Costs | $ 10 |
(Schedule Of Royalty-Related As
(Schedule Of Royalty-Related Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Royalties And Licenses [Line Items] | ||
Royalty-related assets | $ 83 | $ 102 |
Other Current Assets [Member] | ||
Royalties And Licenses [Line Items] | ||
Royalty-related assets | 53 | 68 |
Other Assets [Member] | ||
Royalties And Licenses [Line Items] | ||
Royalty-related assets | $ 30 | $ 34 |
(Schedule Of Royalty-Related Li
(Schedule Of Royalty-Related Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Royalty-Related Liabilities [Line Items] | ||
Royalty-related liabilities | $ 195 | $ 245 |
Accrued royalties | ||
Royalty-Related Liabilities [Line Items] | ||
Royalty-related liabilities | 144 | 171 |
Other Liabilities [Member] | ||
Royalty-Related Liabilities [Line Items] | ||
Royalty-related liabilities | $ 51 | $ 74 |
Balance Sheet Details (Property
Balance Sheet Details (Property And Equipment, Net Schedule) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 121 | $ 120 | $ 115 |
Property and equipment, gross | 1,359 | 1,376 | |
Less accumulated depreciation | (911) | (923) | |
Property and equipment, net | 448 | 453 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 710 | 744 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 343 | 336 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 139 | 139 | |
Equipment, furniture and fixtures, and other | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 80 | 84 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 66 | 66 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 21 | $ 7 |
Balance Sheet Details (Accrued
Balance Sheet Details (Accrued And Other Current Liabilities Schedule) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Other accrued expenses | $ 290 | $ 260 |
Accrued compensation and benefits | 238 | 282 |
Accrued royalties | 144 | 171 |
Sales return and price protection reserves | 150 | 0 |
Deferred net revenue, other | 94 | 108 |
Accrued Liabilities, Current | 1,052 | 821 |
Contingent Consideration [Member] | Respawn Entertainment, LLC [Member] | ||
Fair value, Contingent consideration | $ 136 | $ 0 |
Balance Sheet Details Balance S
Balance Sheet Details Balance Sheet Details (Deferred Net Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Mar. 31, 2018 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Recognition of Deferred Revenue | $ 3,070 | ||
Deferred Revenue, Current | 1,100 | $ 1,622 | |
Deferred Revenue, Revenue Recognized | 1,054 | ||
Online enabled games [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Current | 1,100 | $ 949 | |
Other [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Current | 94 | 105 | |
Noncurrent [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue, Noncurrent | 23 | 5 | |
Total [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Deferred Revenue | $ 1,217 | $ 1,059 |
Balance Sheet Details Balance_2
Balance Sheet Details Balance Sheet Details (Remaining Performance Obligations) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Total deferred revenue [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,217 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2019 | Mar. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 31.50% | 35.00% | ||||
Income Tax Expense (Benefit) | $ 60 | $ 406 | $ 243 | ||||
Tax Benefits Allocated Directly to Contributed Capital | 65 | ||||||
Gross unrecognized tax benefits | $ 457 | 417 | 457 | $ 389 | $ 331 | ||
Amount of unrecognized tax benefits that would affect the effective tax rate | 236 | ||||||
Combined amount of accrued interest and penalties related to uncertain tax positions | 18 | 17 | 18 | ||||
Amount of unrecognized tax benefits for which it is reasonably possible that there will be a reduction within the next 12 months | 10 | ||||||
Deferred Tax Assets, Valuation Allowance | 138 | 162 | 138 | ||||
Deferred Tax Assets, Gross | 249 | 296 | 249 | ||||
Foreign Country [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Tax credit carry forwards | 5 | ||||||
State [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Net operating Loss Carryforwards | 598 | ||||||
Net operating loss attributable to various acquired companies | 7 | ||||||
Tax credit carry forwards | $ 132 | ||||||
Subsequent Event [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Deferred Tax Assets, Gross | $ 2,300 | ||||||
Including U.S. Tax Cuts and Jobs Act impact [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||||
Total U.S. Tax Cuts and Jobs Act impact [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Income Tax Expense (Benefit) | $ 59 | $ 176 | 235 | ||||
Transition tax [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Income Tax Expense (Benefit) | 192 | ||||||
Increase to net cash provided by Operating Activities [Member] | Provision for income taxes [Member] | |||||||
Income Tax Disclosure [Line Items] | |||||||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 20 | $ 43 |
Income Taxes (Components Of Los
Income Taxes (Components Of Loss Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 170 | $ 440 | $ 382 |
Foreign | 909 | 1,009 | 828 |
Income before provision for (benefit from) income taxes | $ 1,079 | $ 1,449 | $ 1,210 |
Income Taxes (Provision For (Be
Income Taxes (Provision For (Benefit From) Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ 29 | $ 138 | $ 86 |
State, Current | 5 | 4 | 3 |
Foreign, Current | 42 | 61 | 51 |
Total, Current | 76 | 203 | 140 |
Federal, Deferred | (18) | 197 | 96 |
State, Deferred | 0 | 9 | 9 |
Foreign, Deferred | 2 | (3) | (2) |
Total, Deferred | (16) | 203 | 103 |
Total, Federal | 11 | 335 | 182 |
Total, State | 5 | 13 | 12 |
Total, Foreign | 44 | 58 | 49 |
Total provision for (benefit from) income taxes | $ 60 | $ 406 | $ 243 |
Income Taxes (Schedule Of Diffe
Income Taxes (Schedule Of Differences Between Statutory Tax Rate And Effective Tax Rate) (Details) | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Expense Reconciliation [Line Items] | |||
Statutory federal tax expense (benefit) rate | 21.00% | 31.50% | 35.00% |
State taxes, net of federal benefit | 0.70% | 0.80% | 1.00% |
Differences between statutory rate and foreign effective tax rate | (14.40%) | (19.10%) | (19.30%) |
Effective Income Tax Rate Reconciliation US Tax Reform Act 2017 | (0.40%) | 16.20% | 0.00% |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (1.90%) | (3.00%) | 0.00% |
Research and development credits | (2.40%) | (1.40%) | (0.70%) |
Unremitted earnings of foreign subsidiaries | 2.20% | ||
Non-deductible stock-based compensation | 2.30% | 2.70% | 2.30% |
Other | 0.70% | 0.30% | (0.40%) |
Effective tax expense (benefit) rate | 5.60% | 28.00% | 20.10% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 101 | |
Accruals, reserves and other expenses | $ 81 | |
Tax credit carryforwards | 140 | 121 |
Stock-based compensation | 33 | 24 |
Net operating loss & capital loss carryforwards | 22 | 23 |
Total | 296 | 249 |
Valuation allowance | (162) | (138) |
Deferred tax assets, net of valuation allowance | 134 | 111 |
Amortization and Depreciation | (28) | (27) |
Deferred Tax Liabilities, Gross, Noncurrent | (66) | 0 |
Prepaids and other liabilities | (7) | (2) |
Total | (101) | (29) |
Deferred tax assets, net of valuation allowance and deferred tax liabilities | $ 33 | $ 82 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits, beginning balance | $ 457 | $ 389 | $ 331 |
Increases in unrecognized tax benefits related to prior year tax positions | 0 | 10 | 3 |
Decreases in unrecognized tax benefits related to prior year tax positions | (41) | (12) | (3) |
Increases in unrecognized tax benefits related to current year tax positions | 43 | 75 | 64 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (16) | (7) | 0 |
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (21) | (2) | (3) |
Changes in unrecognized tax benefits due to foreign currency translation | (5) | 4 | (3) |
Unrecognized tax benefits, ending balance | $ 417 | $ 457 | $ 389 |
Financing Arrangement (Converti
Financing Arrangement (Convertible Note Hedge and Warrants Issuance) (Details) - Common Stock shares in Thousands | 12 Months Ended |
Mar. 31, 2017shares | |
Financing Arrangement [Line Items] | |
Settlement of warrants | 9,645 |
Exercise of convertible note hedge | (2,917) |
Financing Arrangement (Senior N
Financing Arrangement (Senior Notes) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 24, 2016 | |
Financing Arrangement [Line Items] | ||||
Senior notes, net | $ 994 | $ 992 | ||
Proceeds from Issuance of Senior Long-term Debt | $ 989 | |||
2021 Notes | ||||
Financing Arrangement [Line Items] | ||||
Effective interest rate | 3.94% | |||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 1 year 11 months | |||
Long-term Debt | $ 600 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | |||
Debt Instrument, Maturity Date | Mar. 1, 2021 | |||
2026 Notes | ||||
Financing Arrangement [Line Items] | ||||
Effective interest rate | 4.97% | |||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 6 years 11 months | |||
Long-term Debt | $ 400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | |||
Debt Instrument, Maturity Date | Mar. 1, 2026 | |||
Senior Notes | ||||
Financing Arrangement [Line Items] | ||||
Debt Instrument, Issuance Date | Feb. 24, 2016 | |||
Long-term Debt | $ 1,000 | |||
Unaccreted discount | $ (1) | (2) | (2) | |
Debt Issuance Costs, Net | (5) | (6) | $ (9) | |
Debt Instrument, Fair Value Disclosure | $ 1,039 | $ 1,038 | ||
Senior Notes, Frequency of Periodic Payment | semiannually | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Change of control repurchase event [Member] | ||||
Financing Arrangement [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101.00% |
Financing Arrangement (Line of
Financing Arrangement (Line of Credit Facility) (Details) - Revolving Credit Facility [Member] $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Initiation Date | Mar. 19, 2015 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 |
Line of Credit Facility, Expiration Date | Mar. 19, 2020 |
Option To Request Additional Commitments On Credit Facility | $ 250 |
Debt Instrument, Fee Amount | $ 2 |
LineofCreditFacilityTerm1 | 5 years |
Financing Arrangement (Schedule
Financing Arrangement (Schedule Of Interest Expense Related To Notes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Arrangement [Line Items] | |||
Amortization of debt discount | $ (1) | $ 0 | $ (2) |
Amortization of debt issuance costs | (2) | (2) | (2) |
Coupon interest expense | (41) | (42) | (42) |
Interest Expense, Other | (1) | 0 | (1) |
Total interest expense | $ (45) | $ (44) | $ (47) |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | May 22, 2019 | Dec. 01, 2017 | |
Loss Contingencies [Line Items] | |||||
Income tax obligations | $ 209 | ||||
Operating Leases, Rent Expense | 100 | $ 92 | $ 91 | ||
Maximum [Member] | Unrecorded Unconditional Purchase Obligations Payable in Common Stock Per Year [Member] | |||||
Loss Contingencies [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation | 10 | ||||
Maximum [Member] | Unrecorded Unconditional Purchase Obligation Payable in Common Stock [Member] | |||||
Loss Contingencies [Line Items] | |||||
Unrecorded Unconditional Purchase Obligation | 30 | ||||
Respawn Entertainment, LLC [Member] | |||||
Loss Contingencies [Line Items] | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 35 | $ 105 | $ 140 | ||
Business Combination, Contingent Consideration, Liability | $ 122 | ||||
Contingent Consideration [Member] | Respawn Entertainment, LLC [Member] | |||||
Loss Contingencies [Line Items] | |||||
Fair value, Contingent consideration | $ 136 | $ 0 |
Commitments And Contingencies_3
Commitments And Contingencies (Minimum Contractual Obligations) (Details) $ in Millions | Mar. 31, 2019USD ($) |
Long Term Purchase Commitments | |
TotalUnconditionalPurchaseObligationBalanceSheetAmount | $ 3,052 |
Total Unconditional Purchase Obligation Balance Sheet Amount One Year After Fiscal Year End | 488 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThreeYearsAfterFiscalYearEnd | 1,163 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountFourYearsAfterFiscalYearEnd | 458 |
Total Unconditional Purchase Obligation Balance Sheet Amount Five Years After Fiscal Year End | 191 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 164 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 588 |
Developer And Licensor - Royalty and Non-Royalty Bearing [Member] | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 973 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 214 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 292 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 240 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 93 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 75 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 59 |
Marketing | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 377 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 94 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 97 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 85 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 37 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 37 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 27 |
Operating leases | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 264 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 52 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 54 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 44 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 36 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 28 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 50 |
Senior Notes Interest | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 175 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 38 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 41 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 39 |
Other Unrecorded Purchase Obligations [Member] | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 92 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 40 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 30 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 3 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 |
Total Unrecognized Commitments | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation | 1,881 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 438 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 514 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 407 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 188 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 159 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 175 |
Transition tax [Member] | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 90 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 22 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 24 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 3 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 5 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 13 |
License obligations [Member] | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 78 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 26 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 27 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 |
Senior Notes and Interest | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 1,003 |
Senior Notes Interest | |
Long Term Purchase Commitments | |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 3 |
Senior Notes | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 600 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 400 |
Total Recorded Unconditional Purchase Obligation [Domain] | |
Long Term Purchase Commitments | |
Recorded Unconditional Purchase Obligation | 1,171 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 50 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 649 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 51 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 3 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 5 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | $ 413 |
Preferred Stock (Details)
Preferred Stock (Details) - shares shares in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock authorized | 10 | 10 |
(Stock-Based Compensation And E
(Stock-Based Compensation And Employee Benefit Plans Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | May 08, 2017 | May 04, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred Income Tax Expense (Benefit) | $ (16) | $ 203 | $ 103 | ||
Common Stock, Shares, Outstanding | 298 | 306 | |||
Deferred Compensation Plan Assets | $ 11 | $ 10 | |||
Deferred Compensation Liability, Classified, Noncurrent | 12 | 11 | |||
Deferred Compensation Arrangement with Individual, Contributions by Employer | 43 | 31 | 28 | ||
Stock Repurchased and Retired During Period, Value | $ (1,192) | 601 | 508 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Employee Stock Option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 15.7 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 24 | $ 43 | $ 39 | ||
Equity Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage Allowed Of Exercise Price Of Stock Options Compared To Fair Market Value On Date Of Grant | 100.00% | ||||
Employee Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of Shares Available for Grant, Employee Stock Purchase Plans | 6.3 | ||||
Minimum Percentage That Employees Authorized For Payroll Deductions | 2.00% | ||||
Maximum Percentage That Employees Authorized For Payroll Deductions | 10.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% | ||||
Employee Stock [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
ESPP Exercise Price For Shares Issued | $ 89.46 | $ 67.56 | $ 54.60 | ||
Employee Stock [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
ESPP Exercise Price For Shares Issued | $ 107.51 | $ 99.82 | $ 67.56 | ||
Restricted Stock Rights [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 11 | ||||
Performance Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 67.00% | ||||
Performance Based Restricted Stock Units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 0.00% | ||||
Performance Based Restricted Stock Units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 200.00% | ||||
Market Based Restricted Stock Units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 0.00% | ||||
Market Based Restricted Stock Units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 200.00% | ||||
May 2015 Repurchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | ||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 31 | $ 508 | ||
Stock Repurchased and Retired During Period, Shares | 0 | 0.3 | 6.5 | ||
May 2017 Repurchase Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,200 | ||||
Stock Repurchased and Retired During Period, Value | $ 76 | $ 570 | |||
Stock Repurchased and Retired During Period, Shares | 0.6 | 5 | |||
Stock-based compensation expense [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred Income Tax Expense (Benefit) | $ 40 | $ 29 | $ 43 | ||
Free cash flow [Member] | Performance Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement Performance-based Milestone Percentage | 50.00% |
(Schedule Of Assumptions Used I
(Schedule Of Assumptions Used In The Black-Scholes Valuation Model) (Details) - Employee Stock [Member] | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.20% | 1.10% | 0.50% |
Risk-free interest rate, maximum | 2.50% | 2.00% | 0.80% |
Expected volatility, minimum | 29.00% | 28.00% | 25.00% |
Expected volatility, maximum | 33.00% | 30.00% | 32.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 33.00% | 29.00% | 27.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 6 months | 6 months | 6 months |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Term | 12 months | 12 months | 12 months |
(Schedule Of Assumptions Used_2
(Schedule Of Assumptions Used In Monte-Carlo Simulation Model) (Details) - Market Based Restricted Stock Units [Member] | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.60% | 1.50% | 0.80% |
Risk-free interest rate, maximum | 2.60% | 1.60% | 0.80% |
Expected volatility, minimum | 16.00% | 17.00% | 16.00% |
Expected volatility, maximum | 47.00% | 46.00% | 57.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 28.00% | 28.00% | 29.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
(Schedule Of Stock-Based Compen
(Schedule Of Stock-Based Compensation Expense By Statement Of Operations Line Item) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 284 | $ 242 | $ 196 |
Cost of revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 4 | 3 | 3 |
Research and Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 184 | 146 | 109 |
Marketing and sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 33 | 32 | 31 |
General And Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 63 | $ 61 | $ 53 |
(Schedule Of Stock Option Activ
(Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options, Outstanding, Beginning Balance | shares | 1,615 |
Options, Granted | shares | 5 |
Options, Exercised | shares | (245) |
Options, forfeited, cancelled or expired | shares | 0 |
Options, Outstanding, Ending Balance | shares | 1,375 |
Options, vested and expected to vest | shares | 1,375 |
Options, Exercisable | shares | 1,375 |
Weighted-average exercise price of options outstanding, beginning balance | $ / shares | $ 30.28 |
Weighted-average exercise price of options granted during period | $ / shares | 106.55 |
Weighted-Average Exercise Prices, Exercised during period | $ / shares | 30 |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired during period | $ / shares | 0 |
Weighted-average exercise price of options outstanding, ending balance | $ / shares | 30.63 |
Weighted-average exercise price of options vested and expected to vest | $ / shares | 30.63 |
Weighted-average exercise prices of options exercisable | $ / shares | $ 30.63 |
Weighted-average remaining contractual term of options outstanding | 4 years 8 months 15 days |
Weighted-average remaining contractual term of options vested and expected to vest | 4 years 8 months 15 days |
Weighted-average remaining contractual term of options exercisable | 4 years 8 months 15 days |
Aggregate intrinsic value of options outstanding | $ | $ 98 |
Aggregate intrinsic value of options vested and expected to vest | $ | 98 |
Aggregate intrinsic value of options exercisable | $ | $ 98 |
(Summary Of Outstanding And Exe
(Summary Of Outstanding And Exercisable Stock Options) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 1,375 | 1,615 |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 4 years 8 months 15 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 30.63 | $ 30.28 |
Options exercisable, number of shares | 1,375 | |
Options exercisable, weighted-average exercise prices | $ 30.63 | |
Eleven Point Five Three To Twenty Two Point Four Two [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 52 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 months 15 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 19.99 | |
Options Outstanding, Potential Dilution | 0.00% | |
Twenty Six Point Two Five To Twenty Six Point Two Five [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 670 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 4 years 6 months 32 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 26.25 | |
Options Outstanding, Potential Dilution | 0.30% | |
Thirty Three Point Six Zero To Thirty Seven Point One Two [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 653 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 5 years 1 month 28 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 35.97 | |
Options Outstanding, Potential Dilution | 0.20% | |
Eleven Point Five Three To Thirty Seven Point One Two [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options outstanding, number of shares | 1,375 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 4 years 8 months 14 days | |
Options Outstanding, Weighted-Average Exercise Prices | $ 30.63 | |
Options Outstanding, Potential Dilution | 0.50% |
Stock-Based Compensation And _2
Stock-Based Compensation And Employee Benefit Plans (Restricted Stock Units Vesting Description) (Details) | 12 Months Ended |
Mar. 31, 2019 | |
Vesting Year3 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | three |
Vesting Year4 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cliff Vesting Period | four |
(Restricted Stock Rights) (Narr
(Restricted Stock Rights) (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2019USD ($)$ / sharesshares | Mar. 31, 2018USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | |
Stock-based compensation expense [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 451 | ||
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 394 | ||
Restricted Stock Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 11 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 128.76 | $ 110.05 | $ 76.60 |
Reduction In Shares Available Per Grant Of Stock Right | 1.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 300 | $ 289 | $ 320 |
Market Based Restricted Stock Units [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 45 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 185.24 | $ 140.93 | $ 98.04 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 54 | $ 48 | $ 42 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares | 15.7 | ||
Performance Based Restricted Stock Units [Member] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 12 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 67.00% | ||
Minimum [Member] | Market Based Restricted Stock Units [Member] | |||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 0.00% | ||
Minimum [Member] | Performance Based Restricted Stock Units [Member] | |||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 0.00% | ||
Maximum [Member] | Market Based Restricted Stock Units [Member] | |||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 200.00% | ||
Maximum [Member] | Performance Based Restricted Stock Units [Member] | |||
Percentage Range Of Shares Received At Vesting Based On Total Stock Return Measurement | 200.00% |
(Schedule Of Restricted Stock R
(Schedule Of Restricted Stock Rights Activity, Excluding Performance-Based Activity) (Details) - Restricted Stock Rights [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Balance as of March 31, 2017 | 5,948 | ||
Granted | 2,169 | ||
Vested | (2,541) | ||
Forfeited or cancelled | (616) | ||
Balance as of March 31, 2018 | 4,960 | 5,948 | |
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2017 | $ 94.57 | ||
Weighted-Average Grant Date Fair Values, Granted | 128.76 | $ 110.05 | $ 76.60 |
Weighted-Average Grant Date Fair Values, Vested | 88.09 | ||
Weighted-Average Grant Date Fair Values, Forfeited or cancelled | 109.09 | ||
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2018 | $ 111.03 | $ 94.57 |
(Schedule Of Performance-Based
(Schedule Of Performance-Based Restricted Stock Unit Activity) (Details) - Performance Based Restricted Stock Units [Member] shares in Thousands | 12 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Balance as of March 31, 2017 | shares | 796 |
Forfeited or cancelled | shares | (217) |
Balance as of March 31, 2018 | shares | 579 |
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2017 | $ / shares | $ 110.51 |
Weighted-Average Grant Date Fair Values, Forfeited or cancelled | $ / shares | 110.51 |
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2018 | $ / shares | $ 110.51 |
(Schedule Of Market-Based Restr
(Schedule Of Market-Based Restricted Stock Unit Activity) (Details) - Market Based Restricted Stock Units [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Balance as of March 31, 2017 | 1,342 | ||
Granted | 573 | ||
Vested | (415) | ||
Forfeited or cancelled | (542) | ||
Balance as of March 31, 2018 | 958 | 1,342 | |
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2017 | $ 118.35 | ||
Weighted-Average Grant Date Fair Values, Granted | 185.24 | $ 140.93 | $ 98.04 |
Weighted-Average Grant Date Fair Values, Vested | 98.48 | ||
Weighted-Average Grant Date Fair Values, Forfeited or cancelled | 136.91 | ||
Weighted-Average Grant Date Fair Values, Balance as of March 31, 2018 | $ 156.49 | $ 118.35 |
Stock-Based Compensation And _3
Stock-Based Compensation And Employee Benefit Plans (Schedule of ESPP Activity) (Details) - Employee Stock [Member] - $ / shares shares in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0.5 | 0.6 | 0.7 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 31.88 | $ 21.57 | $ 17.93 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Espp Exercise Price For Shares Issued | 89.46 | 67.56 | 54.60 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Espp Exercise Price For Shares Issued | $ 107.51 | $ 99.82 | $ 67.56 |
Stock-Based Compensation And _4
Stock-Based Compensation And Employee Benefit Plans (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | May 11, 2018 | May 08, 2017 | May 04, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Value | $ (1,192) | $ 601 | $ 508 | |||
Repurchase program, total | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Value | $ 1,192 | $ 601 | $ 508 | |||
Stock repurchased and retired during period, Shares | 11 | 5.3 | 6.5 | |||
May 2015 Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,000 | |||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 31 | $ 508 | |||
Stock repurchased and retired during period, Shares | 0 | 0.3 | 6.5 | |||
May 2017 Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 1,200 | |||||
Stock Repurchased and Retired During Period, Value | $ 76 | $ 570 | ||||
Stock repurchased and retired during period, Shares | 0.6 | 5 | ||||
May 2018 Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 2,400 | |||||
Stock Repurchased and Retired During Period, Value | $ 1,116 | |||||
Stock repurchased and retired during period, Shares | 10.4 |
Interest And Other Income (Ex_3
Interest And Other Income (Expense), Net (Schedule Of Interest And Other Income (Expense), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | |
Interest and Other Income [Abstract] | |||
Interest expense | $ (45) | $ (44) | $ (47) |
Interest income | 88 | 50 | 25 |
Net gain (loss) on foreign currency transactions | (9) | 18 | (40) |
Net gain (loss) on foreign currency forward contracts | 50 | (16) | 46 |
Other income, net | (1) | 7 | 2 |
Interest and other income (expense), net | $ 83 | $ 15 | $ (14) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 12 Months Ended |
Mar. 31, 2019shares | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic Earnings And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Net income (loss) | $ 209 | $ 262 | $ 255 | $ 293 | $ 607 | [1] | $ (186) | [1] | $ (22) | $ 644 | $ 1,019 | $ 1,043 | $ 967 | |
Weighted-average common stock outstanding - basic | 303 | 308 | 303 | |||||||||||
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options | 3 | 4 | 4 | |||||||||||
Dilutive potential common shares related to the Convertible Notes | [2] | 0 | 0 | 1 | ||||||||||
Dilutive potential common shares related to the Warrants | [2] | 0 | 0 | 6 | ||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 306 | 312 | 314 | |||||||||||
Basic | $ 0.70 | $ 0.87 | $ 0.84 | $ 0.96 | $ 1.98 | $ (0.60) | $ (0.07) | $ 2.08 | $ 3.36 | $ 3.39 | $ 3.19 | |||
Diluted | $ 0.69 | $ 0.86 | $ 0.83 | $ 0.95 | $ 1.95 | $ (0.60) | $ (0.07) | $ 2.06 | $ 3.33 | $ 3.34 | $ 3.08 | |||
[1] | During the quarters ended December 31, 2017 and March 31, 2018, we recognized tax expense of $176 million and $59 million, respectively, due to the application of the U.S. Tax Act, enacted on December 22, 2017. | |||||||||||||
[2] | See Note 10 — Financing Arrangements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2017, for additional information regarding the potential dilutive shares related to our Convertible Notes and Warrants. The Convertible Notes matured on July 15, 2016 and the Warrants expired on January 12, 2017. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenue, Major Customer and Geographic Information [Line Items] | ||||||||||||||||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries | $ 1,238 | $ 1,289 | $ 1,286 | $ 1,137 | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | $ 4,950 | [1] | $ 5,150 | $ 4,845 | ||||
Entity Wide Revenue By Major Customer Percent Of Revenue Did Not Exceed Ten Percent | 10.00% | |||||||||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Sony [Member] | ||||||||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | ||||||||||||||||
Entity Wide Revenue By Major Customer Percent Of Revenue | 29.00% | 27.00% | 19.00% | |||||||||||||
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Microsoft [Member] | ||||||||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | ||||||||||||||||
Entity Wide Revenue By Major Customer Percent Of Revenue | 16.00% | 16.00% | 17.00% | |||||||||||||
Switzerland [Member] | ||||||||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | ||||||||||||||||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries | $ 2,303 | $ 2,272 | $ 1,886 | |||||||||||||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Foreign Countries, Percentage | 47.00% | 44.00% | 39.00% | |||||||||||||
United States [Member] | ||||||||||||||||
Revenue, Major Customer and Geographic Information [Line Items] | ||||||||||||||||
Disclosure on Geographic Areas, Revenue from External Customers Attributed to Entity's Country of Domicile | 99.00% | |||||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} |
Segment Information (Net Revenu
Segment Information (Net Revenue By Revenue Composition) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net revenue | $ 1,238 | $ 1,289 | $ 1,286 | $ 1,137 | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | $ 4,950 | [1] | $ 5,150 | $ 4,845 | ||||
Full game downloads, net revenue [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net revenue | 680 | 707 | 659 | |||||||||||||
Live services, net revenue [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net revenue | 2,216 | 2,083 | 1,589 | |||||||||||||
Mobile, net revenue [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net revenue | 814 | 660 | 626 | |||||||||||||
Total Digital, net revenue [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net revenue | 3,710 | 3,450 | 2,874 | |||||||||||||
Total Packaged goods and other, net revenue [Member] | ||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||||
Net revenue | $ 1,240 | $ 1,700 | $ 1,971 | |||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} |
Segment Information (Net Reve_2
Segment Information (Net Revenue By Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenue from External Customer [Line Items] | ||||||||||||||||
Net revenue | $ 1,238 | $ 1,289 | $ 1,286 | $ 1,137 | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | $ 4,950 | [1] | $ 5,150 | $ 4,845 | ||||
North America [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Net revenue | 1,906 | 2,090 | 2,119 | |||||||||||||
International [Member] | ||||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||||
Net revenue | $ 3,044 | $ 3,060 | $ 2,726 | |||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} |
Segment Information (Long-Lived
Segment Information (Long-Lived Assets By Geographic Area) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 448 | $ 453 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 371 | 376 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 77 | $ 77 |
Segment Information Net Revenue
Segment Information Net Revenue by Platform (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2019 | [1] | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | [1] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | $ 1,238 | $ 1,289 | $ 1,286 | $ 1,137 | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | $ 4,950 | [1] | $ 5,150 | $ 4,845 | ||||
Full game downloads, net revenue [Member] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 680 | 707 | 659 | |||||||||||||
Total consoles, net revenue [Domain] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 3,333 | 3,635 | 3,390 | |||||||||||||
PC and Browsers, net revenue [Domain] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 780 | 827 | 773 | |||||||||||||
Mobile, net revenue [Domain] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 824 | 672 | 627 | |||||||||||||
Other, net revenue [Domain] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 13 | 16 | 55 | |||||||||||||
Live services, net revenue [Member] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 2,216 | 2,083 | 1,589 | |||||||||||||
Mobile, net revenue [Member] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 814 | 660 | 626 | |||||||||||||
Total Digital, net revenue [Member] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | 3,710 | 3,450 | 2,874 | |||||||||||||
Total Packaged goods and other, net revenue [Member] | ||||||||||||||||
Schedule of Net Revenue by Platform [Line Items] | ||||||||||||||||
Net revenue | $ 1,240 | $ 1,700 | $ 1,971 | |||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} |
Quarterly Financial And Marke_3
Quarterly Financial And Market Information (Summary Of Quarterly Financial And Market Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2017 | ||||||||
Quarterly Financial And Market Information [Line Items] | ||||||||||||||||||
Income Tax Expense (Benefit) | $ 60 | $ 406 | $ 243 | |||||||||||||||
Net revenue | $ 1,238 | [1] | $ 1,289 | [1] | $ 1,286 | [1] | $ 1,137 | [1] | $ 1,582 | $ 1,160 | $ 959 | $ 1,449 | 4,950 | [1] | 5,150 | 4,845 | ||
Gross profit | 962 | 876 | 868 | 922 | 1,349 | 659 | 570 | 1,295 | 3,628 | 3,873 | 3,547 | |||||||
Operating income (loss) | 196 | 242 | 258 | 300 | 753 | (21) | (41) | 743 | 996 | 1,434 | 1,224 | |||||||
Net income (loss) | $ 209 | $ 262 | $ 255 | $ 293 | $ 607 | [2] | $ (186) | [2] | $ (22) | $ 644 | $ 1,019 | $ 1,043 | $ 967 | |||||
Earnings Per Share, Basic | $ 0.70 | $ 0.87 | $ 0.84 | $ 0.96 | $ 1.98 | $ (0.60) | $ (0.07) | $ 2.08 | $ 3.36 | $ 3.39 | $ 3.19 | |||||||
Earnings Per Share, Diluted | $ 0.69 | $ 0.86 | $ 0.83 | $ 0.95 | $ 1.95 | $ (0.60) | $ (0.07) | $ 2.06 | $ 3.33 | $ 3.34 | $ 3.08 | |||||||
Total U.S. Tax Cuts and Jobs Act impact [Member] | ||||||||||||||||||
Quarterly Financial And Market Information [Line Items] | ||||||||||||||||||
Income Tax Expense (Benefit) | $ 59 | $ 176 | $ 235 | |||||||||||||||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjI5NjBiOTQwMmRkNjQxNGFiYmUwMjhiM2Y5YmZiYzllfFRleHRTZWxlY3Rpb246MjBGRDJFMzhGM0YxNUE2QTA4QzA3QjU2M0ZERDRDOUUM} | |||||||||||||||||
[2] | During the quarters ended December 31, 2017 and March 31, 2018, we recognized tax expense of $176 million and $59 million, respectively, due to the application of the U.S. Tax Act, enacted on December 22, 2017. |