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Share Name | Share Symbol | Market | Type |
---|---|---|---|
TakeTwo Interactive Software Inc | NASDAQ:TTWO | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.09 | -0.06% | 148.25 | 148.22 | 148.28 | 148.7221 | 147.5115 | 148.00 | 324,091 | 18:24:19 |
|
ý
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
For the fiscal year ended March 31, 2019
|
OR
|
|
o
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
For the transition period from to .
|
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
51-0350842
(I.R.S. Employer
Identification No.)
|
110 West 44th Street
New York, New York
(Address of principal executive offices)
|
|
10036
(Zip Code)
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
Common Stock, $.01 par value
|
TTWO
|
NASDAQ Global Select Market
|
Large accelerated filer
ý
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
|
PAGE
|
Item 1
.
|
||
|
||
|
•
|
Implementing public relations campaigns, using print and online advertising, television, radio spots and outdoor advertising. We believe that we label and market our products in accordance with the applicable principles and
|
•
|
Satisfying certain shelf life and sales requirements under our agreements with hardware manufacturers in order to qualify for Sony's Greatest Hits Programs and Microsoft's Platinum Hits Program. In connection with these programs, we receive manufacturing discounts from Sony and Microsoft.
|
•
|
Stimulating continued sales by reducing the wholesale prices of our products to retailers at various times during the life of a product. Price protection may occur at any time in a product's life cycle, but typically occurs three to nine months after a product's initial launch. In certain international markets, we also provide volume rebates to stimulate continued product sales. Price protection, sales returns and other allowances amounted to
$81.7 million
,
$59.7 million
and
$127.7 million
during the fiscal years ended
March 31, 2019
,
2018
and
2017
, respectively.
|
•
|
Employing various other marketing methods designed to promote consumer awareness, including social media, in-store promotions and point-of-purchase displays, direct mail, co-operative advertising, attendance at trade shows as well as product sampling through demonstration software distributed via the Internet or the digital online services.
|
•
|
Companies that range in size and cost structure from very small with limited resources to very large with greater financial, marketing and technical personnel and other resources than ours, including Activision Blizzard, Inc., Electronic Arts Inc., and Ubisoft Entertainment S.A.
|
•
|
Sony and Microsoft for the sale of interactive entertainment software. Each of these competitors is a large developer and marketer of software for their own platforms and has the financial resources to withstand significant price competition and to implement extensive advertising campaigns.
|
•
|
Other software, hardware, entertainment and media for limited retail shelf space and promotional resources. The competition is intense among an increasing number of newly introduced entertainment software titles and hardware for adequate levels of shelf space and promotional support.
|
•
|
Other forms of entertainment such as motion pictures, television and audio, social networking, online computer programs, mobile games, and other forms of entertainment, which may be less expensive or provide other advantages to consumers.
|
•
|
retaining key employees and maintaining the key business and customer relationships of the businesses we acquire;
|
•
|
cultural challenges associated with integrating employees from an acquired company or business into our organization;
|
•
|
the possibility that the combined company would not achieve the expected benefits, including any anticipated operating and product synergies, of the acquisition as quickly as anticipated or that the costs of, or operational difficulties arising from, an acquisition would be greater than anticipated;
|
•
|
significant acquisition-related accounting adjustments, particularly relating to an acquired company's deferred revenue, that may cause reported revenue and profits of the combined company to be lower than the sum of their stand-alone revenue and profits;
|
•
|
significant accounting charges resulting from the completion and integration of a sizable acquisition and increased capital expenditures, including potential impairment charges incurred to write down the carrying amount of intangible assets generated as a result of an acquisition;
|
•
|
the possibility that significant acquisitions, when not managed cautiously, may result in the over-extension of our existing operating infrastructures, internal controls and information technology systems;
|
•
|
the possibility that we will not discover important facts during due diligence that could have a material adverse effect on the value of the businesses we acquire, including the possibility that a change of control of a company we acquire triggers a termination of contractual or intellectual property rights important to the operation of its business;
|
•
|
the need to integrate an acquired company's accounting, management information, human resource and other administrative systems to permit effective management and timely reporting, and the need to implement or remediate controls, procedures and policies appropriate for a public company in an acquired company that, prior to the acquisition, lacked these controls, procedures and policies;
|
•
|
litigation or other claims in connection with, or inheritance of claims or litigation risks as a result of, an acquisition, including claims from terminated employees, customers or other third-parties; and
|
•
|
to the extent that we engage in strategic transactions outside of the U.S., we face additional risks, including risks related to integration of operations across different cultures and languages, currency risks and the particular economic, political and regulatory risks associated with specific countries.
|
|
March 31,
|
||||||||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||
Take-Two Interactive Software, Inc.
|
$
|
100.00
|
|
|
$
|
116.10
|
|
|
$
|
171.77
|
|
|
$
|
270.27
|
|
|
$
|
445.87
|
|
|
$
|
430.32
|
|
NASDAQ Composite Index
|
100.00
|
|
|
118.12
|
|
|
118.77
|
|
|
145.94
|
|
|
176.24
|
|
|
194.97
|
|
||||||
Peer Group
|
100.00
|
|
|
146.81
|
|
|
191.27
|
|
|
272.47
|
|
|
369.88
|
|
|
276.19
|
|
Period
|
|
Shares
purchased
|
|
Average price
per share
|
|
Total number of shares
purchased as part of publicly
announced plans or programs
|
|
Maximum number of shares that
may yet be purchased under the
repurchase program
|
|||||
January 1 - 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,937
|
|
|
February 1 - 28, 2019
|
|
1,119
|
|
|
$
|
89.53
|
|
|
1,119
|
|
|
3,818
|
|
March 1 - 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
3,818
|
|
|
Fiscal Year Ended March 31,
|
||||||||||||||||||
STATEMENT OF OPERATIONS DATA:
|
2019
(1)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Net revenue
|
$
|
2,668,394
|
|
|
$
|
1,792,892
|
|
|
$
|
1,779,748
|
|
|
$
|
1,413,698
|
|
|
$
|
1,082,938
|
|
Gross profit
|
1,144,750
|
|
|
894,581
|
|
|
756,789
|
|
|
599,825
|
|
|
288,071
|
|
|||||
Net income (loss)
|
$
|
333,837
|
|
|
$
|
173,533
|
|
|
$
|
67,303
|
|
|
$
|
(8,302
|
)
|
|
$
|
(279,470
|
)
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share:
|
$
|
2.95
|
|
|
$
|
1.57
|
|
|
$
|
0.73
|
|
|
$
|
(0.10
|
)
|
|
$
|
(3.48
|
)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) per share:
|
$
|
2.90
|
|
|
$
|
1.54
|
|
|
$
|
0.72
|
|
|
$
|
(0.10
|
)
|
|
$
|
(3.48
|
)
|
|
As of March 31,
|
||||||||||||||||||
BALANCE SHEET DATA:
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
(2)
|
||||||||||
Total assets
|
$
|
4,243,065
|
|
|
$
|
3,737,841
|
|
|
$
|
3,149,154
|
|
|
$
|
2,590,277
|
|
|
$
|
2,228,073
|
|
Long-term debt
|
—
|
|
|
8,068
|
|
|
251,929
|
|
|
497,935
|
|
|
473,030
|
|
|
Title
|
|
Publishing Label
|
|
Internal or
External Development |
|
Platform(s)
|
|
Date Released
|
Grand Theft Auto V Premium Online Edition
|
|
Rockstar Games
|
|
Internal
|
|
PS4, Xbox One, PC
|
|
April 20, 2018
|
The Golf Club 2019 Featuring PGA TOUR
(Digital) |
|
2K
|
|
External
|
|
PS4, Xbox One, PC
|
|
August 27, 2018
|
NBA 2K Online 2
|
|
2K
|
|
External
|
|
Tencent (China only)
|
|
August 2, 2018
|
NBA 2K19 20th Anniversary Edition
|
|
2K
|
|
Internal
|
|
PS4, Xbox One, Nintendo Switch, PC
|
|
September 7, 2018
|
NBA 2K19 Standard Edition
|
|
2K
|
|
Internal
|
|
PS4, Xbox One, Nintendo Switch, PC
|
|
September 11, 2018
|
WWE 2K19 Woooo! Deluxe Edition
|
|
2K
|
|
Internal/External
|
|
PS4, Xbox One, PC
|
|
October 5, 2018
|
WWE 2K19
|
|
2K
|
|
Internal/External
|
|
PS4, Xbox One, PC
|
|
October 9, 2018
|
NBA 2K Playgrounds 2
|
|
2K
|
|
External
|
|
PS4, Xbox One, Nintendo Switch, PC
|
|
October 16, 2018
|
Red Dead Redemption 2
|
|
Rockstar Games
|
|
Internal
|
|
PS4, Xbox One
|
|
October 26, 2018
|
Carnival Games
|
|
2K
|
|
Internal
|
|
PS4, Xbox One,
Nintendo Switch |
|
November 6, 2018
|
The Golf Club 2019 Featuring PGA TOUR
(Physical) |
|
2K
|
|
External
|
|
PS4, Xbox One, PC
|
|
November 13, 2018
(North America) November 16, 2018 (International) |
Sid Meier's Civilization VI
|
|
2K
|
|
External
|
|
Nintendo Switch
|
|
November 16, 2018
|
Red Dead Online Beta
|
|
Rockstar Games
|
|
Internal
|
|
PS4, Xbox One
|
|
November 27, 2018
|
Sid Meier's Civilization VI: Gathering Storm
|
|
2K
|
|
Internal
|
|
PC
|
|
February 14, 2019
|
Borderlands: Game of the Year Edition
|
|
2K
|
|
Internal/External
|
|
PS4, Xbox One, PC
|
|
April 3, 2019
|
Title
|
|
Publishing Label
|
|
Internal or
External Development |
|
Platform(s)
|
|
Expected Release Date
|
Borderlands 3
|
|
2K/Gearbox Software
|
|
Internal/External
|
|
PS4, Xbox One, PC
|
|
September 13, 2019
|
NBA 2K20
|
|
2K
|
|
Internal
|
|
TBA
|
|
TBA
|
WWE 2K20
|
|
2K
|
|
Internal
|
|
TBA
|
|
TBA
|
Ancestors: The Humankind Odyssey
|
|
Private Division
|
|
External
|
|
PS4, Xbox One,
PC (digital only) |
|
2019 (fiscal 2020)
|
The Outer Worlds
|
|
Private Division
|
|
External
|
|
PS4, Xbox One, PC
|
|
2019 (fiscal 2020)
|
|
Fiscal Year Ended March 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
Increase/(decrease)
|
|
Increase/(decrease) %
|
|||||||
Net Bookings
|
$
|
2,928,724
|
|
|
$
|
1,990,602
|
|
|
$
|
938,122
|
|
|
47.1
|
%
|
|
|
Fiscal Year Ended March 31,
|
|||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Net revenue by geographic region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
United States
|
|
$
|
1,426,906
|
|
|
53.5
|
%
|
|
$
|
1,052,313
|
|
|
58.7
|
%
|
|
$
|
999,128
|
|
|
56.1
|
%
|
International
|
|
1,241,488
|
|
|
46.5
|
%
|
|
740,579
|
|
|
41.3
|
%
|
|
780,620
|
|
|
43.9
|
%
|
|||
Net revenue by platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Console
|
|
$
|
2,233,861
|
|
|
83.7
|
%
|
|
$
|
1,463,306
|
|
|
81.6
|
%
|
|
1,440,724
|
|
|
81.0
|
%
|
|
PC and other
|
|
434,533
|
|
|
16.3
|
%
|
|
329,586
|
|
|
18.4
|
%
|
|
339,024
|
|
|
19.0
|
%
|
|||
Net revenue by distribution channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Digital online
|
|
$
|
1,681,609
|
|
|
63.0
|
%
|
|
$
|
1,130,946
|
|
|
63.1
|
%
|
|
921,734
|
|
|
51.8
|
%
|
|
Physical retail and other
|
|
986,785
|
|
|
37.0
|
%
|
|
661,946
|
|
|
36.9
|
%
|
|
858,014
|
|
|
48.2
|
%
|
|||
Net revenue by content:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Full game and other
|
|
$
|
1,597,478
|
|
|
59.9
|
%
|
|
$
|
1,046,176
|
|
|
58.4
|
%
|
|
$
|
1,320,890
|
|
|
74.2
|
%
|
Recurrent consumer spending
|
|
1,070,916
|
|
|
40.1
|
%
|
|
746,716
|
|
|
41.6
|
%
|
|
458,858
|
|
|
25.8
|
%
|
(thousands of dollars)
|
|
2019
|
|
% of net revenue
|
|
2018
|
|
% of net revenue
|
|
Increase/(decrease)
|
|
% Increase/(decrease)
|
|||||||||
Net revenue
|
|
$
|
2,668,394
|
|
|
100.0
|
%
|
|
$
|
1,792,892
|
|
|
100.0
|
%
|
|
$
|
875,502
|
|
|
48.8
|
%
|
Internal royalties
|
|
610,804
|
|
|
22.9
|
%
|
|
383,020
|
|
|
21.4
|
%
|
|
227,784
|
|
|
59.5
|
%
|
|||
Product costs
|
|
322,148
|
|
|
12.1
|
%
|
|
203,301
|
|
|
11.3
|
%
|
|
118,847
|
|
|
58.5
|
%
|
|||
Software development costs and royalties
(1)
|
|
449,198
|
|
|
16.8
|
%
|
|
191,400
|
|
|
10.7
|
%
|
|
257,798
|
|
|
134.7
|
%
|
|||
Licenses
|
|
141,494
|
|
|
5.3
|
%
|
|
120,590
|
|
|
6.7
|
%
|
|
20,904
|
|
|
17.3
|
%
|
|||
Cost of goods sold
|
|
1,523,644
|
|
|
57.1
|
%
|
|
898,311
|
|
|
50.1
|
%
|
|
625,333
|
|
|
69.6
|
%
|
|||
Gross profit
|
|
$
|
1,144,750
|
|
|
42.9
|
%
|
|
$
|
894,581
|
|
|
49.9
|
%
|
|
$
|
250,169
|
|
|
28.0
|
%
|
(thousands of dollars)
|
|
2019
|
|
% of net revenue
|
|
2018
|
|
% of net revenue
|
|
Increase/(decrease)
|
|
% Increase/(decrease)
|
|||||||||
Selling and marketing
|
|
$
|
391,400
|
|
|
14.7
|
%
|
|
$
|
256,092
|
|
|
14.3
|
%
|
|
$
|
135,308
|
|
|
52.8
|
%
|
General and administrative
|
|
281,234
|
|
|
10.5
|
%
|
|
247,828
|
|
|
13.8
|
%
|
|
33,406
|
|
|
13.5
|
%
|
|||
Research and development
|
|
230,170
|
|
|
8.6
|
%
|
|
196,373
|
|
|
11.0
|
%
|
|
33,797
|
|
|
17.2
|
%
|
|||
Depreciation and amortization
|
|
40,232
|
|
|
1.5
|
%
|
|
43,969
|
|
|
2.5
|
%
|
|
(3,737
|
)
|
|
(8.5
|
)%
|
|||
Business reorganization
|
|
(4,958
|
)
|
|
(0.2
|
)%
|
|
14,742
|
|
|
0.8
|
%
|
|
(19,700
|
)
|
|
(133.6
|
)%
|
|||
Total operating expenses
|
|
$
|
938,078
|
|
|
35.2
|
%
|
|
$
|
759,004
|
|
|
42.3
|
%
|
|
$
|
179,074
|
|
|
23.6
|
%
|
|
|
2019
|
|
2018
|
||||
Selling and marketing
|
|
$
|
23,685
|
|
|
$
|
13,258
|
|
General and administrative
|
|
$
|
51,903
|
|
|
$
|
58,037
|
|
Research and development
|
|
$
|
23,037
|
|
|
$
|
18,020
|
|
Business reorganization
|
|
—
|
|
|
2,424
|
|
(thousands of dollars)
|
|
2019
|
|
% of net revenue
|
|
2018
|
|
% of net revenue
|
|
Increase/(decrease)
|
|
% Increase/(decrease)
|
|||||||||
Interest income
|
|
$
|
38,019
|
|
|
1.4
|
%
|
|
$
|
21,264
|
|
|
1.2
|
%
|
|
$
|
16,755
|
|
|
78.8
|
%
|
Interest expense
|
|
(8,032
|
)
|
|
(0.3
|
)%
|
|
(22,269
|
)
|
|
(1.2
|
)%
|
|
14,237
|
|
|
(63.9
|
)%
|
|||
Foreign currency exchange (loss) gain
|
|
(505
|
)
|
|
—
|
%
|
|
(3,038
|
)
|
|
(0.2
|
)%
|
|
2,533
|
|
|
(83.4
|
)%
|
|||
Other
|
|
(3,369
|
)
|
|
(0.1
|
)%
|
|
5,091
|
|
|
0.3
|
%
|
|
(8,460
|
)
|
|
(166.2
|
)%
|
|||
Interest and other, net
|
|
$
|
26,113
|
|
|
1.0
|
%
|
|
$
|
1,048
|
|
|
0.1
|
%
|
|
$
|
25,065
|
|
|
2,391.7
|
%
|
(thousands of dollars)
|
|
2018
|
|
% of net revenue
|
|
2017
|
|
% of net revenue
|
|
Increase/(decrease)
|
|
% Increase/(decrease)
|
|||||||||
Net revenue
|
|
$
|
1,792,892
|
|
|
100.0
|
%
|
|
$
|
1,779,748
|
|
|
100.0
|
%
|
|
$
|
13,144
|
|
|
0.7
|
%
|
Internal royalties
|
|
383,020
|
|
|
21.4
|
%
|
|
330,782
|
|
|
18.6
|
%
|
|
52,238
|
|
|
15.8
|
%
|
|||
Product costs
|
|
203,301
|
|
|
11.3
|
%
|
|
255,914
|
|
|
14.4
|
%
|
|
(52,613
|
)
|
|
(20.6
|
)%
|
|||
Software development costs and royalties
(1)
|
|
191,400
|
|
|
10.7
|
%
|
|
335,675
|
|
|
18.9
|
%
|
|
(144,275
|
)
|
|
(43.0
|
)%
|
|||
Licenses
|
|
120,590
|
|
|
6.7
|
%
|
|
100,588
|
|
|
5.6
|
%
|
|
20,002
|
|
|
19.9
|
%
|
|||
Cost of goods sold
|
|
898,311
|
|
|
50.1
|
%
|
|
1,022,959
|
|
|
57.5
|
%
|
|
(124,648
|
)
|
|
(12.2
|
)%
|
|||
Gross profit
|
|
$
|
894,581
|
|
|
49.9
|
%
|
|
$
|
756,789
|
|
|
42.5
|
%
|
|
$
|
137,792
|
|
|
18.2
|
%
|
(thousands of dollars)
|
|
2018
|
|
% of net revenue
|
|
2017
|
|
% of net revenue
|
|
Increase/(decrease)
|
|
% Increase/(decrease)
|
|||||||||
Selling and marketing
|
|
$
|
256,092
|
|
|
14.3
|
%
|
|
$
|
285,453
|
|
|
16.0
|
%
|
|
$
|
(29,361
|
)
|
|
(10.3
|
)%
|
General and administrative
|
|
247,828
|
|
|
13.8
|
%
|
|
211,409
|
|
|
11.9
|
%
|
|
36,419
|
|
|
17.2
|
%
|
|||
Research and development
|
|
196,373
|
|
|
11.0
|
%
|
|
137,915
|
|
|
7.8
|
%
|
|
58,458
|
|
|
42.4
|
%
|
|||
Depreciation and amortization
|
|
43,969
|
|
|
2.5
|
%
|
|
30,707
|
|
|
1.7
|
%
|
|
13,262
|
|
|
43.2
|
%
|
|||
Business reorganization
|
|
14,742
|
|
|
0.8
|
%
|
|
—
|
|
|
—
|
%
|
|
14,742
|
|
|
100.0
|
%
|
|||
Total operating expenses
|
|
$
|
759,004
|
|
|
42.3
|
%
|
|
$
|
665,484
|
|
|
37.4
|
%
|
|
$
|
93,520
|
|
|
14.1
|
%
|
|
2018
|
|
2017
|
||||
Selling and marketing
|
$
|
13,258
|
|
|
$
|
9,963
|
|
General and administrative
|
$
|
58,037
|
|
|
$
|
42,908
|
|
Research and development
|
$
|
18,020
|
|
|
$
|
7,952
|
|
Business reorganization
|
$
|
2,424
|
|
|
$
|
—
|
|
(thousands of dollars)
|
|
2018
|
|
% of net
revenue |
|
2017
|
|
% of net
revenue |
|
(Increase)/
decrease |
|
% Increase/
(decrease) |
|||||||||
Interest expense, net
|
|
$
|
(1,005
|
)
|
|
(0.1
|
)%
|
|
$
|
(21,700
|
)
|
|
(1.2
|
)%
|
|
$
|
20,695
|
|
|
(95.4
|
)%
|
Foreign currency exchange (loss) gain
|
|
(3,038
|
)
|
|
(0.2
|
)%
|
|
4,990
|
|
|
0.3
|
%
|
|
(8,028
|
)
|
|
(160.9
|
)%
|
|||
Other
|
|
5,091
|
|
|
0.3
|
%
|
|
1,020
|
|
|
0.1
|
%
|
|
4,071
|
|
|
399.1
|
%
|
|||
Interest and other, net
|
|
$
|
1,048
|
|
|
0.1
|
%
|
|
$
|
(15,690
|
)
|
|
(0.9
|
)%
|
|
$
|
16,738
|
|
|
(106.7
|
)%
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
(thousands of dollars)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net cash provided by operating activities
|
|
$
|
843,515
|
|
|
$
|
493,527
|
|
|
$
|
407,903
|
|
Net cash used in investing activities
|
|
(223,576
|
)
|
|
(271,827
|
)
|
|
(129,030
|
)
|
|||
Net cash used in financing activities
|
|
(463,685
|
)
|
|
(281,467
|
)
|
|
(49,772
|
)
|
|||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash
|
|
(10,639
|
)
|
|
24,924
|
|
|
(7,798
|
)
|
|||
Net change in cash, cash equivalents, and restricted cash
|
|
$
|
145,615
|
|
|
$
|
(34,843
|
)
|
|
$
|
221,303
|
|
Fiscal Year Ending March 31,
|
|
Software
Development and Licensing |
|
Marketing
|
|
Operating
Leases |
|
Purchase
Obligations |
|
|
Total
|
||||||||||
2020
|
|
$
|
183,309
|
|
|
$
|
52,953
|
|
|
$
|
28,365
|
|
|
$
|
23,707
|
|
|
|
$
|
288,334
|
|
2021
|
|
120,008
|
|
|
28,830
|
|
|
27,882
|
|
|
9,559
|
|
|
|
186,279
|
|
|||||
2022
|
|
114,734
|
|
|
28,661
|
|
|
26,272
|
|
|
5,063
|
|
|
|
174,730
|
|
|||||
2023
|
|
56,884
|
|
|
78,100
|
|
|
23,787
|
|
|
623
|
|
|
|
159,394
|
|
|||||
2024
|
|
51,792
|
|
|
24,600
|
|
|
16,474
|
|
|
484
|
|
|
|
93,350
|
|
|||||
Thereafter
|
|
55,792
|
|
|
49,200
|
|
|
82,570
|
|
|
—
|
|
|
|
187,562
|
|
|||||
Total
|
|
$
|
582,519
|
|
|
$
|
262,344
|
|
|
$
|
205,350
|
|
|
$
|
39,436
|
|
|
|
$
|
1,089,649
|
|
(a)
|
The following documents are filed as part of this Report:
|
(i)
|
Financial Statements. See Index to Financial Statements on page 53 of this Report.
|
(ii)
|
Financial Statement Schedule. See Note 21 to the Consolidated Financial Statements.
|
(iii)
|
Index to Exhibits:
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit
|
|
Filed
Herewith
|
2.1
|
|
|
|
8-K
|
|
2/3/2017
|
|
2.1
|
|
|
3.1
|
|
|
10-K
|
|
2/12/2004
|
|
3.1
|
|
|
|
3.1.1
|
|
|
10-K
|
|
2/12/2004
|
|
3.1.2
|
|
|
|
3.1.2
|
|
|
10-K
|
|
2/12/2004
|
|
3.1.3
|
|
|
|
3.1.3
|
|
|
8-K
|
|
4/23/2009
|
|
3.1
|
|
|
|
3.1.4
|
|
|
8-K
|
|
9/24/2012
|
|
3.1
|
|
|
|
3.2
|
|
|
10-K
|
|
2/12/2004
|
|
3.1.1
|
|
|
|
3.3
|
|
|
8-A12B
|
|
3/26/2008
|
|
4.2
|
|
|
|
3.4
|
|
|
8-K
|
|
9/18/2017
|
|
3.1
|
|
|
|
10.1
|
|
|
8-K
|
|
3/7/2008
|
|
10.1
|
|
|
|
10.2
|
|
|
14A
|
|
7/28/2016
|
|
Annex A
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit
|
|
Filed
Herewith
|
10.3
|
|
|
10-Q
|
|
6/5/2009
|
|
10.2
|
|
|
|
10.4
|
|
|
10-Q
|
|
6/5/2009
|
|
10.3
|
|
|
|
10.5
|
|
|
10-Q
|
|
8/1/2012
|
|
10.1
|
|
|
|
10.6
|
|
|
10-Q
|
|
10/30/2013
|
|
10.1
|
|
|
|
10.7
|
|
|
10-Q
|
|
10/30/2013
|
|
10.2
|
|
|
|
10.8
|
|
|
10-Q
|
|
10/30/2013
|
|
10.3
|
|
|
|
10.9
|
|
|
10-Q
|
|
10/30/2013
|
|
10.4
|
|
|
|
10.10
|
|
|
10-Q
|
|
10/30/2013
|
|
10.5
|
|
|
|
10.11
|
|
|
14A
|
|
7/27/2017
|
|
Annex B
|
|
|
|
10.12
|
|
|
14A
|
|
7/27/2017
|
|
Annex C
|
|
|
|
10.13
|
|
|
|
|
|
|
|
|
X
|
|
10.14
|
|
|
10-Q
|
|
11/8/2017
|
|
10.4
|
|
|
|
10.15
|
|
|
10-Q
|
|
11/8/2017
|
|
10.5
|
|
|
|
10.16
|
|
|
10-Q
|
|
11/8/2017
|
|
10.6
|
|
|
|
10.17
|
|
|
10-Q
|
|
11/8/2017
|
|
10.7
|
|
|
|
10.18
|
|
|
8-K
|
|
5/14/2010
|
|
10.1
|
|
|
|
10.19
|
|
|
8-K
|
|
10/25/2010
|
|
10.1
|
|
|
|
10.20
|
|
|
10-Q
|
|
10/31/2012
|
|
10.6
|
|
|
|
10.21
|
|
|
10-Q
|
|
8/3/2018
|
|
10.2
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit
|
|
Filed
Herewith
|
10.22
|
|
|
8-K
|
|
2/15/2008
|
|
10.3
|
|
|
|
10.23
|
|
|
10-Q
|
|
2/6/2015
|
|
10.1
|
|
|
|
10.24
|
|
|
8-K
|
|
3/10/2014
|
|
10.1
|
|
|
|
10.25
|
|
|
S-3 ASR
|
|
5/20/2015
|
|
10.2
|
|
|
|
10.26
|
|
|
10-Q
|
|
8/10/2015
|
|
10.1
|
|
|
|
10.27
|
|
|
10-K
|
|
5/19/2016
|
|
10.50
|
|
|
|
10.28
|
|
|
S-3 ASR
|
|
5/20/2016
|
|
10.2
|
|
|
|
10.29
|
|
|
10-Q
|
|
2/8/2017
|
|
10.3
|
|
|
|
10.30
|
|
|
S-3 ASR
|
|
5/25/2017
|
|
10.2
|
|
|
|
10.31
|
|
|
10-Q
|
|
2/8/2018
|
|
10.4
|
|
|
|
10.32
|
|
|
8-K
|
|
11/22/2017
|
|
10.1
|
|
|
|
10.33
|
|
|
S-3 ASR
|
|
4/13/2018
|
|
10.2
|
|
|
|
10.34
|
|
|
S-3 ASR
|
|
4/15/2019
|
|
10.2
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit
|
|
Filed
Herewith
|
10.35
|
|
|
|
|
|
|
|
|
X
|
|
10.36
|
|
|
10-Q
|
|
11/8/2011
|
|
10.3
|
|
|
|
10.37
|
|
|
10-Q
|
|
6/5/2009
|
|
10.1
|
|
|
|
10.38
|
|
|
10-Q
|
|
2/3/2012
|
|
10.1
|
|
|
|
10.39
|
|
|
10-Q
|
|
2/6/2013
|
|
10.2
|
|
|
|
10.40
|
|
|
10-Q
|
|
2/4/2014
|
|
10.2
|
|
|
|
10.41
|
|
|
10-Q
|
|
10/30/2014
|
|
10.1
|
|
|
|
10.42
|
|
|
10-Q
|
|
2/8/2018
|
|
10.2
|
|
|
|
10.43
|
|
|
10-Q
|
|
2/4/2014
|
|
10.1
|
|
|
|
10.44
|
|
|
10-Q
|
|
8/6/2014
|
|
10.1
|
|
|
|
10.45
|
|
|
10-K
|
|
5/19/2016
|
|
10.48
|
|
|
|
10.46
|
|
|
10-K
|
|
5/19/2016
|
|
10.49
|
|
|
|
10.47
|
|
|
10-Q/A
|
|
5/23/2017
|
|
10.2
|
|
|
|
10.48
|
|
|
10-K
|
|
5/17/2018
|
|
10.55
|
|
|
|
|
|
|
Incorporated by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit
|
|
Filed
Herewith
|
10.49
|
|
|
10-K
|
|
5/24/2017
|
|
10.48
|
|
|
|
10.50
|
|
|
10-Q
|
|
9/16/2002
|
|
10.2
|
|
|
|
10.51
|
|
|
10-K
|
|
5/23/2012
|
|
10.45
|
|
|
|
10.52
|
|
|
10-K
|
|
5/14/2014
|
|
10.39
|
|
|
|
10.53
|
|
|
10-K
|
|
5/19/2016
|
|
10.47
|
|
|
|
10.54
|
|
|
10-Q
|
|
2/4/2016
|
|
10.1
|
|
|
|
10.55
|
|
|
10-Q
|
|
2/8/2017
|
|
10.1
|
|
|
|
10.56
|
|
|
10-Q
|
|
11/8/2018
|
|
10.1
|
|
|
|
10.57
|
|
|
8-K
|
|
2/3/2017
|
|
10.1
|
|
|
|
|
|
|
Importance by Reference
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
Filing Date
|
|
Exhibit
|
|
Filed
Herewith
|
21.1
|
|
|
|
|
|
|
|
|
X
|
|
23.1
|
|
|
|
|
|
|
|
|
X
|
|
31.1
|
|
|
|
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
|
|
|
|
X
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document.
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Label Linkbase Document.
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document.
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Document.
|
|
|
|
|
|
|
|
X
|
†
|
Schedules omitted pursuant to item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted schedule to the SEC upon its request.
|
*
|
Portions thereof were omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment that was granted in accordance with Exchange Act Rule 24b-2.
|
**
|
Portions hereof have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment in accordance with Exchange Act Rule 24b-2.
|
|
Page
|
Consolidated Balance Sheets
—At March 31, 2019 and 2018
|
|
Consolidated Statements of Operations
—For the fiscal years ended March 31, 2019, 2018 and 2017
|
|
Consolidated Statements of Comprehensive Income
—For the fiscal years ended March 31, 2019, 2018 and 2017
|
|
Consolidated Statements of Cash Flows
—For the fiscal years ended March 31, 2019, 2018 and 2017
|
|
Consolidated Statements of Stockholders' Equity
—For the fiscal years ended March 31, 2019, 2018 and 2017
|
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
826,525
|
|
|
$
|
808,973
|
|
Short-term investments
|
|
744,485
|
|
|
615,406
|
|
||
Restricted cash
|
|
565,461
|
|
|
437,398
|
|
||
Accounts receivable, net of allowances of $995 and $54,290 at March 31, 2019 and 2018, respectively
|
|
395,729
|
|
|
247,649
|
|
||
Inventory
|
|
28,200
|
|
|
15,162
|
|
||
Software development costs and licenses
|
|
28,880
|
|
|
33,284
|
|
||
Deferred cost of goods sold
|
|
51,867
|
|
|
117,851
|
|
||
Prepaid expenses and other
|
|
186,688
|
|
|
133,454
|
|
||
Total current assets
|
|
2,827,835
|
|
|
2,409,177
|
|
||
Fixed assets, net
|
|
127,882
|
|
|
102,478
|
|
||
Software development costs and licenses, net of current portion
|
|
603,436
|
|
|
639,369
|
|
||
Deferred cost of goods sold, net of current portion
|
|
1,028
|
|
|
26,719
|
|
||
Goodwill
|
|
381,717
|
|
|
399,530
|
|
||
Other intangibles, net
|
|
73,115
|
|
|
103,681
|
|
||
Deferred tax assets
|
|
134,732
|
|
|
4,930
|
|
||
Other assets
|
|
93,320
|
|
|
51,957
|
|
||
Total assets
|
|
$
|
4,243,065
|
|
|
$
|
3,737,841
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
72,797
|
|
|
$
|
35,029
|
|
Accrued expenses and other current liabilities
|
|
1,035,695
|
|
|
914,748
|
|
||
Deferred revenue
|
|
843,302
|
|
|
777,152
|
|
||
Total current liabilities
|
|
1,951,794
|
|
|
1,726,929
|
|
||
Long-term debt
|
|
—
|
|
|
8,068
|
|
||
Non-current deferred revenue
|
|
21,058
|
|
|
355,589
|
|
||
Other long-term liabilities
|
|
229,633
|
|
|
158,285
|
|
||
Total liabilities
|
|
2,202,485
|
|
|
2,248,871
|
|
||
Commitments and contingencies
|
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
|
|
|
||
Preferred stock, $.01 par value, 5,000 shares authorized: no shares issued and outstanding at March 31, 2019 and 2018
|
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, 200,000 shares authorized; 134,602 and 132,743 shares issued and 112,181 and 114,038 outstanding at March 31, 2019 and 2018, respectively
|
|
1,346
|
|
|
1,327
|
|
||
Additional paid-in capital
|
|
2,019,369
|
|
|
1,888,039
|
|
||
Treasury stock, at cost; 22,421 and 18,705 common shares at March 31, 2019 and 2018, respectively
|
|
(820,572
|
)
|
|
(458,180
|
)
|
||
Retained earnings
|
|
877,626
|
|
|
73,516
|
|
||
Accumulated other comprehensive loss
|
|
(37,189
|
)
|
|
(15,732
|
)
|
||
Total stockholders' equity
|
|
2,040,580
|
|
|
1,488,970
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
4,243,065
|
|
|
$
|
3,737,841
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net revenue
|
|
$
|
2,668,394
|
|
|
$
|
1,792,892
|
|
|
$
|
1,779,748
|
|
Cost of goods sold
|
|
1,523,644
|
|
|
898,311
|
|
|
1,022,959
|
|
|||
Gross profit
|
|
1,144,750
|
|
|
894,581
|
|
|
756,789
|
|
|||
Selling and marketing
|
|
391,400
|
|
|
256,092
|
|
|
285,453
|
|
|||
General and administrative
|
|
281,234
|
|
|
247,828
|
|
|
211,409
|
|
|||
Research and development
|
|
230,170
|
|
|
196,373
|
|
|
137,915
|
|
|||
Depreciation and amortization
|
|
40,232
|
|
|
43,969
|
|
|
30,707
|
|
|||
Business reorganization
|
|
(4,958
|
)
|
|
14,742
|
|
|
—
|
|
|||
Total operating expenses
|
|
938,078
|
|
|
759,004
|
|
|
665,484
|
|
|||
Income from operations
|
|
206,672
|
|
|
135,577
|
|
|
91,305
|
|
|||
Interest and other, net
|
|
26,113
|
|
|
1,048
|
|
|
(15,690
|
)
|
|||
Gain on long-term investments, net
|
|
—
|
|
|
—
|
|
|
1,350
|
|
|||
Income before income taxes
|
|
232,785
|
|
|
136,625
|
|
|
76,965
|
|
|||
(Benefit from) provision for income taxes
|
|
(101,052
|
)
|
|
(36,908
|
)
|
|
9,662
|
|
|||
Net income
|
|
$
|
333,837
|
|
|
$
|
173,533
|
|
|
$
|
67,303
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|||
Basic earnings per share
|
|
$
|
2.95
|
|
|
$
|
1.57
|
|
|
$
|
0.73
|
|
Diluted earnings per share
|
|
$
|
2.90
|
|
|
$
|
1.54
|
|
|
$
|
0.72
|
|
|
|
March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
333,837
|
|
|
$
|
173,533
|
|
|
$
|
67,303
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment
|
|
(28,803
|
)
|
|
43,379
|
|
|
(9,086
|
)
|
|||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|||
Change in unrealized gains
|
|
763
|
|
|
(8,153
|
)
|
|
—
|
|
|||
Reclassification to earnings
|
|
3,726
|
|
|
—
|
|
|
—
|
|
|||
Tax effect on effective cash flow hedges
|
|
417
|
|
|
(2,038
|
)
|
|
—
|
|
|||
Change in fair value of cash flow hedges
|
|
4,906
|
|
|
(10,191
|
)
|
|
—
|
|
|||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized gain (loss), net of taxes
|
|
2,440
|
|
|
(1,778
|
)
|
|
(169
|
)
|
|||
Reclassification to earnings for realized net loss, net of taxes
|
|
—
|
|
|
—
|
|
|
9
|
|
|||
Change in fair value of available-for-sale securities
|
|
2,440
|
|
|
(1,778
|
)
|
|
(160
|
)
|
|||
Other comprehensive income (loss)
|
|
(21,457
|
)
|
|
31,410
|
|
|
(9,246
|
)
|
|||
Comprehensive income
|
|
$
|
312,380
|
|
|
$
|
204,943
|
|
|
$
|
58,057
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
(as Adjusted) (1)
|
|
2017
(as Adjusted) (1)
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
333,837
|
|
|
$
|
173,533
|
|
|
$
|
67,303
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Amortization and impairment of software development costs and licenses
|
|
201,221
|
|
|
77,887
|
|
|
221,911
|
|
|||
Stock-based compensation
|
|
247,700
|
|
|
116,349
|
|
|
81,879
|
|
|||
Amortization of intellectual property
|
|
23,879
|
|
|
34,830
|
|
|
6,738
|
|
|||
Depreciation
|
|
39,726
|
|
|
32,202
|
|
|
30,707
|
|
|||
Amortization of discount on Convertible Notes
|
|
91
|
|
|
15,662
|
|
|
21,222
|
|
|||
Impairment of in-process research and development
|
|
—
|
|
|
11,257
|
|
|
—
|
|
|||
Amortization of debt issuance costs
|
|
809
|
|
|
578
|
|
|
1,227
|
|
|||
Deferred income taxes
|
|
110,603
|
|
|
(32,523
|
)
|
|
3,020
|
|
|||
Gain on long-term investments, net
|
|
—
|
|
|
—
|
|
|
(1,350
|
)
|
|||
Gain on redemption of Convertible Notes
|
|
—
|
|
|
(4,900
|
)
|
|
—
|
|
|||
Other, net
|
|
(225
|
)
|
|
6,375
|
|
|
(3,410
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(98,075
|
)
|
|
(26,998
|
)
|
|
(41,956
|
)
|
|||
Inventory
|
|
(14,403
|
)
|
|
3,917
|
|
|
(4,942
|
)
|
|||
Software development costs and licenses
|
|
(206,831
|
)
|
|
(225,269
|
)
|
|
(252,951
|
)
|
|||
Prepaid expenses, other current and other non-current assets
|
|
(275,800
|
)
|
|
(74,544
|
)
|
|
(22,155
|
)
|
|||
Deferred revenue
|
|
304,713
|
|
|
198,397
|
|
|
126,285
|
|
|||
Deferred cost of goods sold
|
|
(24,882
|
)
|
|
(11,959
|
)
|
|
(14,969
|
)
|
|||
Accounts payable, accrued expenses and other liabilities
|
|
201,152
|
|
|
198,733
|
|
|
189,344
|
|
|||
Net cash provided by operating activities
|
|
843,515
|
|
|
493,527
|
|
|
407,903
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Change in bank time deposits
|
|
(171,057
|
)
|
|
(40,918
|
)
|
|
89,076
|
|
|||
Proceeds from available-for-sale securities
|
|
325,133
|
|
|
241,012
|
|
|
155,936
|
|
|||
Purchases of available-for-sale securities
|
|
(282,534
|
)
|
|
(369,998
|
)
|
|
(221,671
|
)
|
|||
Purchases of fixed assets
|
|
(66,969
|
)
|
|
(61,557
|
)
|
|
(21,167
|
)
|
|||
Proceeds from sale of long-term investment
|
|
—
|
|
|
—
|
|
|
1,350
|
|
|||
Purchase of long-term investments
|
|
—
|
|
|
(5,000
|
)
|
|
(1,885
|
)
|
|||
Business acquisitions, net of cash acquired
|
|
(28,149
|
)
|
|
(9,401
|
)
|
|
(130,669
|
)
|
|||
Asset acquisition
|
|
—
|
|
|
(25,965
|
)
|
|
—
|
|
|||
Net cash used in investing activities
|
|
(223,576
|
)
|
|
(271,827
|
)
|
|
(129,030
|
)
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Tax payment related to net share settlements on restricted stock awards
|
|
(101,293
|
)
|
|
(112,884
|
)
|
|
(51,762
|
)
|
|||
Repurchase of common stock
|
|
(362,392
|
)
|
|
(154,792
|
)
|
|
—
|
|
|||
Excess tax benefit from stock-based compensation
|
|
—
|
|
|
—
|
|
|
1,990
|
|
|||
Other
|
|
—
|
|
|
(13,791
|
)
|
|
—
|
|
|||
Net cash used in financing activities
|
|
(463,685
|
)
|
|
(281,467
|
)
|
|
(49,772
|
)
|
|||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash
|
|
(10,639
|
)
|
|
24,924
|
|
|
(7,798
|
)
|
|||
Net change in cash, cash equivalents, and restricted cash
|
|
145,615
|
|
|
(34,843
|
)
|
|
221,303
|
|
|||
Cash, cash equivalents, and restricted cash, beginning of year
|
|
1,246,371
|
|
|
1,281,214
|
|
|
1,059,911
|
|
|||
Cash, cash equivalents, and restricted cash, end of year
|
|
$
|
1,391,986
|
|
|
$
|
1,246,371
|
|
|
$
|
1,281,214
|
|
Supplemental data:
|
|
|
|
|
|
|
|
|
|
|||
Interest paid
|
|
$
|
5,265
|
|
|
$
|
4,121
|
|
|
$
|
7,628
|
|
Income taxes paid (refunded)
|
|
$
|
19,280
|
|
|
$
|
8,790
|
|
|
$
|
6,648
|
|
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Treasury Stock
|
|
Retained
Earnings/(Accumulated Deficit) |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders' Equity |
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance, March 31, 2016
|
|
103,765
|
|
|
$
|
1,038
|
|
|
$
|
1,088,628
|
|
|
(17,192
|
)
|
|
$
|
(303,388
|
)
|
|
$
|
(166,997
|
)
|
|
$
|
(37,896
|
)
|
|
$
|
581,385
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,303
|
|
|
—
|
|
|
67,303
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,086
|
)
|
|
(9,086
|
)
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(160
|
)
|
|
(160
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
88,378
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88,378
|
|
||||||
Tax benefit associated with stock awards
|
|
—
|
|
|
—
|
|
|
1,990
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,990
|
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
1,738
|
|
|
17
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Settlement of 1.75% Convertible Notes Due 2016
|
|
13,094
|
|
|
131
|
|
|
249,866
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
249,997
|
|
||||||
Conversion of 1.00% Convertible Notes Due 2018
|
|
899
|
|
|
9
|
|
|
18,332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,341
|
|
||||||
Issuance of shares related to Social Point acquisition
|
|
1,480
|
|
|
15
|
|
|
57,327
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,342
|
|
||||||
Net share settlement of restricted stock awards
|
|
(1,163
|
)
|
|
(12
|
)
|
|
(51,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,762
|
)
|
||||||
Balance, March 31, 2017
|
|
119,813
|
|
|
1,198
|
|
|
1,452,754
|
|
|
(17,192
|
)
|
|
(303,388
|
)
|
|
(99,694
|
)
|
|
(47,142
|
)
|
|
1,003,728
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173,533
|
|
|
—
|
|
|
173,533
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,379
|
|
|
43,379
|
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,778
|
)
|
|
(1,778
|
)
|
||||||
Change in unrealized gains on cash flow hedge, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,191
|
)
|
|
(10,191
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
293,214
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
293,214
|
|
||||||
Repurchased common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,513
|
)
|
|
(154,792
|
)
|
|
—
|
|
|
|
|
|
(154,792
|
)
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
2,151
|
|
|
21
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Conversion of 1.00% Convertible Notes Due 2018
|
|
12,082
|
|
|
121
|
|
|
254,963
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
255,084
|
|
||||||
Net share settlement of restricted stock awards
|
|
(1,303
|
)
|
|
(13
|
)
|
|
(112,871
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112,884
|
)
|
||||||
Adoption of ASU 2016-09
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(323
|
)
|
|
—
|
|
|
(323
|
)
|
||||||
Balance, March 31, 2018
|
|
132,743
|
|
|
1,327
|
|
|
1,888,039
|
|
|
(18,705
|
)
|
|
(458,180
|
)
|
|
73,516
|
|
|
(15,732
|
)
|
|
1,488,970
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
333,837
|
|
|
—
|
|
|
333,837
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(33,456
|
)
|
|
(33,456
|
)
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,440
|
|
|
2,440
|
|
||||||
Change in unrealized gains on cash flow hedge, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,906
|
|
|
4,906
|
|
||||||
Stock-based compensation
|
|
|
|
|
|
|
|
219,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
219,460
|
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
2,345
|
|
|
23
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||
Repurchased common stock
|
|
|
|
|
|
|
|
|
|
|
(3,716
|
)
|
|
(362,392
|
)
|
|
|
|
|
|
|
|
(362,392
|
)
|
||||||
Conversion of 1.00% Convertible Notes Due 2018
|
|
377
|
|
|
4
|
|
|
8,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,112
|
|
||||||
Net share settlement of restricted stock awards
|
|
(920
|
)
|
|
(9
|
)
|
|
(101,284
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(101,293
|
)
|
||||||
Impact from adoption of New Revenue Accounting Standard (Note 2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
470,273
|
|
|
4,653
|
|
|
474,926
|
|
||||||
Employee share purchase plan settlement
|
|
57
|
|
|
1
|
|
|
5,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,070
|
|
||||||
Balance, March 31, 2019
|
|
134,602
|
|
|
$
|
1,346
|
|
|
$
|
2,019,369
|
|
|
(22,421
|
)
|
|
$
|
(820,572
|
)
|
|
$
|
877,626
|
|
|
$
|
(37,189
|
)
|
|
$
|
2,040,580
|
|
•
|
identifying the contract, or contracts, with the customer;
|
•
|
identifying the performance obligations in the contract;
|
•
|
determining the transaction price;
|
•
|
allocating the transaction price to performance obligations in the contract; and
|
•
|
recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.
|
•
|
the underlying contract terms and conditions between the various parties to the transaction;
|
•
|
which party is primarily responsible for fulfilling the promise to provide the specified good or service; and
|
•
|
which party has discretion in establishing the price for the specified good or service.
|
•
|
The elimination of the requirement for vendor-specific objective evidence (“VSOE”) of fair value for software products that offer offline gameplay functionality and benefit from meaningful game related services which may include online functionality that is dependent on our online support services and/or additional free content updates. Under the prior revenue accounting guidance, for software products with multiple deliverables for which we did not have VSOE for our game related service deliverables, we recognized revenue ratably over an estimated service period that was based on game life. Under the New Revenue Accounting Standard, we allocate the sales price and recognize revenue for the offline software upon delivery and the remainder over an estimated service period, which represents a player's typical user life (see below). Upon adoption, this difference in accounting primarily affected revenue recognition from
Grand Theft Auto V
and our
NBA 2K
franchise, where the majority of the sales price was allocated to the offline software and recognized upon transfer of control to our customers, and the remaining amounts allocated to the game related service performance obligation and recognized over the estimated service period.
|
•
|
For performance obligations that are satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. Previously, our estimated service period was based on the economic game life.
|
•
|
Under the New Revenue Accounting Standard, we are able to recognize revenue to the extent it is probable that a significant reversal will not occur even if we do not have a right to invoice as of the reporting date. Contract assets are classified within Prepaid expenses and other on the Consolidated Balance Sheet.
|
•
|
The classification of allowances for estimated price protection, reserves for returns and other allowances as refund liabilities. Such allowances were previously recorded as contra-Accounts receivable and now are classified within Accrued expenses and other current liabilities on the Consolidated Balance Sheet.
|
|
|
March 31, 2018
|
|
Adjustments
|
|
April 1, 2018
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
$
|
247,649
|
|
|
$
|
53,940
|
|
|
$
|
301,589
|
|
Software development costs and licenses
|
|
33,284
|
|
|
(11,096
|
)
|
|
22,188
|
|
|||
Deferred cost of goods sold
|
|
117,851
|
|
|
(89,867
|
)
|
|
27,984
|
|
|||
Prepaid expenses and other
|
|
133,454
|
|
|
33,620
|
|
|
167,074
|
|
|||
Deferred cost of goods sold, net of current portion
|
|
26,719
|
|
|
(25,687
|
)
|
|
1,032
|
|
|||
Deferred tax assets
|
|
4,930
|
|
|
51,430
|
|
|
56,360
|
|
|||
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||||||
Accrued expenses and other current liabilities
|
|
$
|
914,748
|
|
|
$
|
69,678
|
|
|
$
|
984,426
|
|
Deferred revenue
|
|
777,152
|
|
|
(230,144
|
)
|
|
547,008
|
|
|||
Non-current deferred revenue
|
|
355,589
|
|
|
(336,456
|
)
|
|
19,133
|
|
|||
Other long-term liabilities
|
|
158,285
|
|
|
34,336
|
|
|
192,621
|
|
|||
Retained earnings
|
|
73,516
|
|
|
470,273
|
|
|
543,789
|
|
|||
Accumulated other comprehensive loss
|
|
(15,732
|
)
|
|
4,653
|
|
|
(11,079
|
)
|
|
|
Amounts as reported
|
|
Amounts without adoption of New Revenue Accounting Standard
|
|
Increase (decrease) due to adoption of New Revenue Accounting Standard
|
||||||
Net revenue
|
|
$
|
2,668,394
|
|
|
$
|
1,927,148
|
|
|
$
|
741,246
|
|
Cost of goods sold
|
|
1,523,644
|
|
|
1,218,056
|
|
|
305,588
|
|
|||
Gross profit
|
|
1,144,750
|
|
|
709,092
|
|
|
435,658
|
|
|||
Selling and marketing
|
|
391,400
|
|
|
391,400
|
|
|
—
|
|
|||
General and administrative
|
|
281,234
|
|
|
281,234
|
|
|
—
|
|
|||
Research and development
|
|
230,170
|
|
|
230,170
|
|
|
—
|
|
|||
Depreciation and amortization
|
|
40,232
|
|
|
40,232
|
|
|
—
|
|
|||
Business reorganization
|
|
(4,958
|
)
|
|
(4,958
|
)
|
|
—
|
|
|||
Total operating expenses
|
|
938,078
|
|
|
938,078
|
|
|
—
|
|
|||
Income (loss) from operations
|
|
206,672
|
|
|
(228,986
|
)
|
|
435,658
|
|
|||
Interest and other, net
|
|
26,113
|
|
|
28,296
|
|
|
(2,183
|
)
|
|||
Income (loss) before income taxes
|
|
232,785
|
|
|
(200,690
|
)
|
|
433,475
|
|
|||
(Benefit from) provision for income taxes
|
|
(101,052
|
)
|
|
(204,782
|
)
|
|
103,730
|
|
|||
Net income
|
|
$
|
333,837
|
|
|
$
|
4,092
|
|
|
$
|
329,745
|
|
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
|
$
|
2.95
|
|
|
$
|
0.04
|
|
|
$
|
2.91
|
|
Diluted earnings per share
|
|
$
|
2.90
|
|
|
$
|
0.04
|
|
|
$
|
2.86
|
|
|
|
Amounts as reported
|
|
Amounts without adoption of New Revenue Accounting Standard
|
|
Increase (decrease) due to adoption of New Revenue Accounting Standard
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Accounts receivable, net
|
|
$
|
395,729
|
|
|
$
|
330,448
|
|
|
$
|
65,281
|
|
Software development costs and licenses
|
|
28,880
|
|
|
39,191
|
|
|
(10,311
|
)
|
|||
Deferred cost of goods sold
|
|
51,867
|
|
|
176,802
|
|
|
(124,935
|
)
|
|||
Prepaid expenses and other
|
|
186,688
|
|
|
195,744
|
|
|
(9,056
|
)
|
|||
Software development costs and licenses, net of current portion
|
|
603,436
|
|
|
777,238
|
|
|
(173,802
|
)
|
|||
Deferred cost of goods sold, net of current portion
|
|
1,028
|
|
|
75,919
|
|
|
(74,891
|
)
|
|||
Deferred tax assets
|
|
134,732
|
|
|
157,741
|
|
|
(23,009
|
)
|
|||
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||||||
Accrued expenses and other current liabilities
|
|
$
|
1,035,695
|
|
|
$
|
949,347
|
|
|
$
|
86,348
|
|
Deferred revenue
|
|
843,302
|
|
|
1,445,936
|
|
|
(602,634
|
)
|
|||
Non-current deferred revenue
|
|
21,058
|
|
|
677,148
|
|
|
(656,090
|
)
|
|||
Other long-term liabilities
|
|
229,633
|
|
|
202,721
|
|
|
26,912
|
|
|||
Retained earnings
|
|
877,626
|
|
|
77,608
|
|
|
800,018
|
|
|||
Accumulated other comprehensive loss
|
|
(37,189
|
)
|
|
(31,912
|
)
|
|
(5,277
|
)
|
|
|
Twelve Months Ended March 31,
|
||
|
|
2019
|
||
Net revenue recognized
(1)
:
|
|
|
||
Full game and other
|
|
$
|
1,597,478
|
|
Recurrent consumer spending
|
|
1,070,916
|
|
|
Total net revenue
|
|
$
|
2,668,394
|
|
|
|
Twelve Months Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
(1)
|
|
2017
(1)
|
||||||
Net revenue recognized:
|
|
|
|
|
|
|
||||||
United States
|
|
$
|
1,426,906
|
|
|
$
|
1,052,313
|
|
|
$
|
999,128
|
|
International
|
|
1,241,488
|
|
|
740,579
|
|
|
780,620
|
|
|||
Total net revenue
|
|
$
|
2,668,394
|
|
|
$
|
1,792,892
|
|
|
$
|
1,779,748
|
|
|
|
Twelve Months Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
(1)
|
|
2017
(1)
|
||||||
Net revenue recognized:
|
|
|
|
|
|
|
||||||
Console
|
|
$
|
2,233,861
|
|
|
$
|
1,463,306
|
|
|
$
|
1,440,724
|
|
PC and other
|
|
434,533
|
|
|
329,586
|
|
|
339,024
|
|
|||
Total net revenue
|
|
$
|
2,668,394
|
|
|
$
|
1,792,892
|
|
|
$
|
1,779,748
|
|
|
|
Twelve Months Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
(1)
|
|
2017
(1)
|
||||||
Net revenue recognized:
|
|
|
|
|
|
|
||||||
Digital online
|
|
$
|
1,681,609
|
|
|
$
|
1,130,946
|
|
|
$
|
921,734
|
|
Physical retail and other
|
|
986,785
|
|
|
661,946
|
|
|
858,014
|
|
|||
Total net revenue
|
|
$
|
2,668,394
|
|
|
$
|
1,792,892
|
|
|
$
|
1,779,748
|
|
•
|
Level 1—Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.
|
|
|
March 31,
2019 |
|
Quoted prices
in active markets for identical assets (level 1) |
|
Significant other
observable inputs (level 2) |
|
Significant
unobservable inputs (level 3) |
|
Balance Sheet Classification
|
||||||||
Money market funds
|
|
$
|
389,936
|
|
|
$
|
389,936
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash and cash equivalents
|
Commercial paper
|
|
39,246
|
|
|
—
|
|
|
39,246
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
US Treasuries
|
|
25,449
|
|
|
25,449
|
|
|
—
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Money market funds
|
|
565,461
|
|
|
565,461
|
|
|
—
|
|
|
—
|
|
|
Restricted cash
|
||||
Bank-time deposits
|
|
387,720
|
|
|
387,720
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Corporate bonds
|
|
296,141
|
|
|
—
|
|
|
296,141
|
|
|
—
|
|
|
Short-term investments
|
||||
US Treasuries
|
|
55,634
|
|
|
55,634
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Commercial paper
|
|
4,990
|
|
|
—
|
|
|
4,990
|
|
|
—
|
|
|
Short-term investments
|
||||
Cross-currency swap
|
|
791
|
|
|
—
|
|
|
791
|
|
|
—
|
|
|
Prepaid expenses and other
|
||||
Private equity
|
|
1,823
|
|
|
—
|
|
|
—
|
|
|
1,823
|
|
|
Other assets
|
||||
Foreign currency forward contracts
|
|
(423
|
)
|
|
—
|
|
|
(423
|
)
|
|
—
|
|
|
Accrued and other current liabilities
|
||||
Total recurring fair value measurements, net
|
|
$
|
1,766,768
|
|
|
$
|
1,424,200
|
|
|
$
|
340,745
|
|
|
$
|
1,823
|
|
|
|
|
|
March 31,
2018 |
|
Quoted prices
in active markets for identical assets (level 1) |
|
Significant other
observable inputs (level 2) |
|
Significant
unobservable inputs (level 3) |
|
Balance Sheet Classification
|
||||||||
Money market funds
|
|
$
|
516,626
|
|
|
$
|
516,626
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash and cash equivalents
|
Bank-time deposits
|
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Commercial paper
|
|
10,796
|
|
|
—
|
|
|
10,796
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Corporate bonds
|
|
308,716
|
|
|
—
|
|
|
308,716
|
|
|
—
|
|
|
Short-term investments
|
||||
US Treasuries
|
|
59,725
|
|
|
59,725
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Commercial paper
|
|
25,422
|
|
|
—
|
|
|
25,422
|
|
|
—
|
|
|
Short-term investments
|
||||
Mutual funds
|
|
4,880
|
|
|
—
|
|
|
4,880
|
|
|
—
|
|
|
Short-term investments
|
||||
Bank-time deposits
|
|
216,663
|
|
|
216,663
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Foreign currency forward contracts
|
|
12
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
Prepaid expenses and other
|
||||
Foreign currency forward contracts
|
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
Accrued and other current liabilities
|
||||
Cross-currency swap
|
|
(15,659
|
)
|
|
—
|
|
|
(15,659
|
)
|
|
—
|
|
|
Accrued and other current liabilities
|
||||
Private equity
|
|
$
|
1,205
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,205
|
|
|
Other assets
|
Total recurring fair value measurements, net
|
|
$
|
1,128,364
|
|
|
$
|
793,035
|
|
|
$
|
334,124
|
|
|
$
|
1,205
|
|
|
|
|
|
March 31, 2019
|
||||||||||||||
|
|
Cost or
Amortized Cost |
|
Gross Unrealized
|
|
|
||||||||||
|
|
|
Gains
|
|
Losses
|
|
Fair Value
|
|||||||||
Short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank time deposits
|
|
$
|
387,720
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
387,720
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
|
295,526
|
|
|
742
|
|
|
(127
|
)
|
|
296,141
|
|
||||
US Treasuries
|
|
55,656
|
|
|
27
|
|
|
(49
|
)
|
|
55,634
|
|
||||
Commercial paper
|
|
4,990
|
|
|
|
|
|
|
|
|
4,990
|
|
||||
Total short-term investments
|
|
$
|
743,892
|
|
|
$
|
769
|
|
|
$
|
(176
|
)
|
|
$
|
744,485
|
|
|
|
March 31, 2018
|
||||||||||||||
|
|
Cost or
Amortized Cost |
|
Gross Unrealized
|
|
|
||||||||||
|
|
|
Gains
|
|
Losses
|
|
Fair Value
|
|||||||||
Short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Bank time deposits
|
|
$
|
216,663
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
216,663
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
|
310,387
|
|
|
16
|
|
|
(1,687
|
)
|
|
308,716
|
|
||||
US Treasuries
|
|
59,970
|
|
|
—
|
|
|
(245
|
)
|
|
59,725
|
|
||||
Commercial paper
|
|
25,422
|
|
|
—
|
|
|
—
|
|
|
25,422
|
|
||||
Mutual funds
|
|
4,876
|
|
|
16
|
|
|
(12
|
)
|
|
4,880
|
|
||||
Total short-term investments
|
|
$
|
617,318
|
|
|
$
|
32
|
|
|
$
|
(1,944
|
)
|
|
$
|
615,406
|
|
|
|
March 31, 2019
|
||||||
|
|
Amortized Cost
|
|
Fair Value
|
||||
Short-term investments
|
|
|
|
|
|
|
||
Due in 1 year or less
|
|
$
|
629,474
|
|
|
$
|
629,496
|
|
Due in 1-2 years
|
|
114,418
|
|
|
114,989
|
|
||
Total short-term investments
|
|
$
|
743,892
|
|
|
$
|
744,485
|
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Forward contracts to purchase foreign currencies
|
|
$
|
116,590
|
|
|
$
|
4,359
|
|
Forward contracts to sell foreign currencies
|
|
$
|
87,793
|
|
|
$
|
67,580
|
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Finished products
|
|
$
|
24,847
|
|
|
$
|
13,940
|
|
Parts and supplies
|
|
3,353
|
|
|
1,222
|
|
||
Inventory
|
|
$
|
28,200
|
|
|
$
|
15,162
|
|
|
|
March 31,
|
||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||
|
|
Current
|
|
Non-current
|
|
Current
|
|
Non-current
|
||||||||
Software development costs, internally developed
|
|
$
|
14,809
|
|
|
$
|
434,712
|
|
|
$
|
19,338
|
|
|
$
|
515,761
|
|
Software development costs, externally developed
|
|
3,655
|
|
|
168,381
|
|
|
4,275
|
|
|
122,270
|
|
||||
Licenses
|
|
10,416
|
|
|
343
|
|
|
9,671
|
|
|
1,338
|
|
||||
Software development costs and licenses
|
|
$
|
28,880
|
|
|
$
|
603,436
|
|
|
$
|
33,284
|
|
|
$
|
639,369
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Amortization of software development costs and licenses
|
|
$
|
342,870
|
|
|
$
|
101,437
|
|
|
$
|
222,801
|
|
Impairment of software development costs and licenses
|
|
7,426
|
|
|
1,060
|
|
|
20,166
|
|
|||
Less: Portion representing stock-based compensation
|
|
(149,075
|
)
|
|
(24,610
|
)
|
|
(21,056
|
)
|
|||
Amortization and impairment, net of stock-based compensation
|
|
$
|
201,221
|
|
|
$
|
77,887
|
|
|
$
|
221,911
|
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Computer equipment
|
|
$
|
118,841
|
|
|
$
|
87,926
|
|
Leasehold improvements
|
|
99,093
|
|
|
88,762
|
|
||
Computer software
|
|
52,641
|
|
|
47,702
|
|
||
Furniture and fixtures
|
|
16,179
|
|
|
13,933
|
|
||
Office equipment
|
|
10,758
|
|
|
8,139
|
|
||
|
|
297,512
|
|
|
246,462
|
|
||
Less: accumulated depreciation
|
|
(169,630
|
)
|
|
(143,984
|
)
|
||
Fixed assets, net
|
|
$
|
127,882
|
|
|
$
|
102,478
|
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
United States
|
|
$
|
78,197
|
|
|
$
|
65,476
|
|
International
|
|
49,685
|
|
|
37,002
|
|
||
Fixed assets, net
|
|
$
|
127,882
|
|
|
$
|
102,478
|
|
|
|
Total
|
||
Balance at March 31, 2017
|
|
$
|
359,115
|
|
Additions from immaterial acquisition
|
|
6,236
|
|
|
Adjustments (see Note 23)
|
|
4,245
|
|
|
Currency translation adjustment
|
|
$
|
29,934
|
|
Balance at March 31, 2018
|
|
$
|
399,530
|
|
Additions from immaterial acquisition
|
|
3,149
|
|
|
Currency translation adjustment
|
|
$
|
(20,962
|
)
|
Balance at March 31, 2019
|
|
$
|
381,717
|
|
|
March 31,
|
|
|
||||||||||||||||||||||
|
2019
|
|
2018
|
|
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
|
Weighted average useful life
|
||||||||||||
Developed game technology
|
65,428
|
|
|
(32,975
|
)
|
|
32,453
|
|
|
67,133
|
|
|
(23,189
|
)
|
|
43,944
|
|
|
4 years
|
||||||
Intellectual property
|
$
|
26,109
|
|
|
$
|
(6,524
|
)
|
|
$
|
19,585
|
|
|
$
|
37,431
|
|
|
$
|
(13,616
|
)
|
|
$
|
23,815
|
|
|
6 years
|
Analytics technology
|
31,271
|
|
|
(13,551
|
)
|
|
17,720
|
|
|
34,499
|
|
|
(8,050
|
)
|
|
26,449
|
|
|
5 years
|
||||||
Branding and trade names
|
4,422
|
|
|
(1,065
|
)
|
|
3,357
|
|
|
4,879
|
|
|
(632
|
)
|
|
4,247
|
|
|
9 years
|
||||||
User base
|
—
|
|
|
—
|
|
|
—
|
|
|
10,454
|
|
|
(10,454
|
)
|
|
—
|
|
|
1 year
|
||||||
Total definite-lived intangible assets
|
$
|
127,230
|
|
|
$
|
(54,115
|
)
|
|
$
|
73,115
|
|
|
$
|
154,396
|
|
|
$
|
(55,941
|
)
|
|
$
|
98,455
|
|
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cost of goods sold
|
|
$
|
16,937
|
|
|
$
|
19,719
|
|
|
$
|
4,252
|
|
Selling and marketing
|
|
—
|
|
|
8,107
|
|
|
1,497
|
|
|||
Research and development
|
|
6,436
|
|
|
6,494
|
|
|
989
|
|
|||
Depreciation and amortization
|
|
506
|
|
|
510
|
|
|
78
|
|
|||
Total amortization of intangible assets
|
|
$
|
23,879
|
|
|
$
|
34,830
|
|
|
$
|
6,816
|
|
Fiscal Year Ended March 31,
|
|
Amortization
|
|
|
2020
|
|
$
|
21,469
|
|
2021
|
|
20,669
|
|
|
2022
|
|
19,371
|
|
|
2023
|
|
7,084
|
|
|
2024
|
|
3,844
|
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Software development royalties
|
|
$
|
713,201
|
|
|
$
|
600,512
|
|
Compensation and benefits
|
|
73,695
|
|
|
57,499
|
|
||
Refund Liability
|
|
65,853
|
|
|
—
|
|
||
Licenses
|
|
56,221
|
|
|
43,261
|
|
||
Marketing and promotions
|
|
42,390
|
|
|
19,731
|
|
||
Business reorganization (see Note 20)
|
|
—
|
|
|
72,074
|
|
||
Deferred acquisition payments
|
|
—
|
|
|
25,000
|
|
||
Other
|
|
84,335
|
|
|
96,671
|
|
||
Accrued expenses and other current liabilities
|
|
$
|
1,035,695
|
|
|
$
|
914,748
|
|
|
|
March 31,
|
||
|
|
2019
|
||
Available borrowings
|
|
$
|
198,336
|
|
Outstanding letters of credit
|
|
$
|
1,664
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash interest expense (coupon interest expense)
|
|
$
|
1
|
|
|
$
|
539
|
|
|
$
|
2,784
|
|
Non-cash amortization of discount on 1.00% Convertible Notes
|
|
91
|
|
|
15,662
|
|
|
14,221
|
|
|||
Amortization of debt issuance costs
|
|
3
|
|
|
466
|
|
|
453
|
|
|||
Total interest expense related to 1.00% Convertible Notes
|
|
$
|
95
|
|
|
$
|
16,667
|
|
|
$
|
17,458
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Computation of Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
333,837
|
|
|
$
|
173,533
|
|
|
$
|
67,303
|
|
Less: net income allocated to participating securities
|
|
—
|
|
|
(159
|
)
|
|
(1,275
|
)
|
|||
Net income for basic earnings per share calculation
|
|
$
|
333,837
|
|
|
$
|
173,374
|
|
|
$
|
66,028
|
|
Total weighted average shares outstanding—basic
|
|
113,176
|
|
|
110,210
|
|
|
91,921
|
|
|||
Less: weighted average participating shares outstanding
|
|
—
|
|
|
(101
|
)
|
|
(1,741
|
)
|
|||
Weighted average common shares outstanding—basic
|
|
113,176
|
|
|
110,109
|
|
|
90,180
|
|
|||
Basic earnings per share
|
|
$
|
2.95
|
|
|
$
|
1.57
|
|
|
$
|
0.73
|
|
Computation of Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
333,837
|
|
|
$
|
173,533
|
|
|
$
|
67,303
|
|
Less: net income allocated to participating securities
|
|
—
|
|
|
(155
|
)
|
|
(1,246
|
)
|
|||
Net income for diluted earnings per share calculation
|
|
$
|
333,837
|
|
|
$
|
173,378
|
|
|
$
|
66,057
|
|
Weighted average common shares outstanding—basic
|
|
113,176
|
|
|
110,109
|
|
|
91,921
|
|
|||
Add: dilutive effect of common stock equivalents
|
|
2,022
|
|
|
2,755
|
|
|
2,152
|
|
|||
Weighted average common shares outstanding—diluted
|
|
115,198
|
|
|
112,864
|
|
|
94,073
|
|
|||
Less: weighted average participating shares outstanding
|
|
—
|
|
|
(101
|
)
|
|
(1,741
|
)
|
|||
Weighted average common shares outstanding- diluted
|
|
115,198
|
|
|
112,763
|
|
|
92,332
|
|
|||
Diluted earnings per share
|
|
$
|
2.90
|
|
|
$
|
1.54
|
|
|
$
|
0.72
|
|
Fiscal Year Ending March 31,
|
|
Software
Development and Licensing |
|
Marketing
|
|
Operating
Leases |
|
Purchase
Obligations |
|
Total
|
||||||||||
2020
|
|
$
|
183,309
|
|
|
$
|
52,953
|
|
|
$
|
28,365
|
|
|
$
|
23,707
|
|
|
$
|
288,334
|
|
2021
|
|
120,008
|
|
|
28,830
|
|
|
27,882
|
|
|
9,559
|
|
|
186,279
|
|
|||||
2022
|
|
114,734
|
|
|
28,661
|
|
|
26,272
|
|
|
5,063
|
|
|
174,730
|
|
|||||
2023
|
|
56,884
|
|
|
78,100
|
|
|
23,787
|
|
|
623
|
|
|
159,394
|
|
|||||
2024
|
|
51,792
|
|
|
24,600
|
|
|
16,474
|
|
|
484
|
|
|
93,350
|
|
|||||
Thereafter
|
|
55,792
|
|
|
49,200
|
|
|
82,570
|
|
|
—
|
|
|
187,562
|
|
|||||
Total
|
|
$
|
582,519
|
|
|
$
|
262,344
|
|
|
$
|
205,350
|
|
|
$
|
39,436
|
|
|
$
|
1,089,649
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic
|
|
$
|
134,265
|
|
|
$
|
136,239
|
|
|
$
|
86,050
|
|
Foreign
|
|
98,520
|
|
|
386
|
|
|
(9,085
|
)
|
|||
Income before income taxes
|
|
$
|
232,785
|
|
|
$
|
136,625
|
|
|
$
|
76,965
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
|
|
|
|||
U.S. federal
|
|
$
|
8,240
|
|
|
$
|
(7,327
|
)
|
|
$
|
19,271
|
|
U.S. state and local
|
|
2,857
|
|
|
(1,266
|
)
|
|
2,521
|
|
|||
Foreign
|
|
22,274
|
|
|
4,208
|
|
|
(13,012
|
)
|
|||
Total current income taxes
|
|
33,371
|
|
|
(4,385
|
)
|
|
8,780
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|
|||
U.S. federal
|
|
(128,317
|
)
|
|
(13,530
|
)
|
|
969
|
|
|||
U.S. state and local
|
|
(9,157
|
)
|
|
195
|
|
|
2,395
|
|
|||
Foreign
|
|
3,051
|
|
|
(19,188
|
)
|
|
(2,482
|
)
|
|||
Total deferred income taxes
|
|
(134,423
|
)
|
|
(32,523
|
)
|
|
882
|
|
|||
(Benefit from) Provision for income taxes
|
|
$
|
(101,052
|
)
|
|
$
|
(36,908
|
)
|
|
$
|
9,662
|
|
|
|
Fiscal Year Ended
March 31, |
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
U.S. federal statutory rate
|
|
21.0
|
%
|
|
31.6
|
%
|
|
35.0
|
%
|
State and local taxes, net of U.S. federal benefit
|
|
2.9
|
%
|
|
0.5
|
%
|
|
4.9
|
%
|
Foreign tax rate differential
(1)
|
|
(9.0
|
)%
|
|
(6.9
|
)%
|
|
(1.4
|
)%
|
Foreign earnings
|
|
5.1
|
%
|
|
1.2
|
%
|
|
5.5
|
%
|
Tax credits
(2)
|
|
(15.0
|
)%
|
|
(16.5
|
)%
|
|
(45.8
|
)%
|
Excess tax benefits from stock-based compensation
(3)
|
|
(5.7
|
)%
|
|
(38.9
|
)%
|
|
—
|
|
One-time transition tax
(4)
|
|
(2.0
|
)%
|
|
19.5
|
%
|
|
—
|
|
Domestic production deduction
|
|
—
|
%
|
|
(2.8
|
)%
|
|
(2.5
|
)%
|
Valuation allowance—domestic
(5)
|
|
(46.0
|
)%
|
|
(0.5
|
)%
|
|
10.1
|
%
|
Valuation allowance—foreign
|
|
—
|
%
|
|
(2.5
|
)%
|
|
0.1
|
%
|
Change in reserves
|
|
1.3
|
%
|
|
(11.0
|
)%
|
|
2.9
|
%
|
Other
(6)
|
|
4.0
|
%
|
|
(0.7
|
)%
|
|
3.7
|
%
|
Effective tax rate
|
|
(43.4
|
)%
|
|
(27.0
|
)%
|
|
12.5
|
%
|
|
|
March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
|
|
|
||
Accrued compensation expense
|
|
$
|
113,517
|
|
|
$
|
94,919
|
|
Equity-based compensation
|
|
82,720
|
|
|
78,293
|
|
||
Tax credit carryforward
|
|
72,408
|
|
|
64,175
|
|
||
Net operating loss carryforward
|
|
27,498
|
|
|
35,378
|
|
||
Deferred rent
|
|
5,965
|
|
|
5,729
|
|
||
Business reorganization
|
|
158
|
|
|
16,369
|
|
||
Deferred Revenue
|
|
—
|
|
|
42,426
|
|
||
Sales returns and allowances (including bad debt)
|
|
—
|
|
|
575
|
|
||
Other
|
|
411
|
|
|
1,145
|
|
||
Total deferred tax assets
|
|
302,677
|
|
|
339,009
|
|
||
Less: Valuation allowance
|
|
(49,413
|
)
|
|
(195,640
|
)
|
||
Net deferred tax assets
|
|
253,264
|
|
|
143,369
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
|
||
Capitalized software and depreciation
|
|
(101,168
|
)
|
|
(118,119
|
)
|
||
Intangible amortization
|
|
(22,486
|
)
|
|
(24,651
|
)
|
||
Deferred revenue
|
|
(17,100
|
)
|
|
—
|
|
||
Convertible debt
|
|
—
|
|
|
(13
|
)
|
||
Other
|
|
(4,690
|
)
|
|
(4,534
|
)
|
||
Total deferred tax liabilities
|
|
(145,444
|
)
|
|
(147,317
|
)
|
||
Net deferred tax asset / (liability)
(1)
|
|
107,820
|
|
|
(3,948
|
)
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of period
|
|
$
|
122,056
|
|
|
$
|
116,085
|
|
|
$
|
52,799
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|||
Current year tax positions
|
|
13,281
|
|
|
23,007
|
|
|
65,669
|
|
|||
Prior year tax positions
|
|
288
|
|
|
7,406
|
|
|
5,086
|
|
|||
Reduction of prior year tax positions
|
|
(1,700
|
)
|
|
(436
|
)
|
|
—
|
|
|||
Lapse of statute of limitations
|
|
(1,605
|
)
|
|
(24,006
|
)
|
|
(7,469
|
)
|
|||
Balance, end of period
|
|
$
|
132,320
|
|
|
$
|
122,056
|
|
|
$
|
116,085
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cost of goods sold
|
|
$
|
149,075
|
|
|
$
|
24,610
|
|
|
$
|
21,056
|
|
Selling and marketing
|
|
23,685
|
|
|
13,258
|
|
|
9,963
|
|
|||
General and administrative
|
|
51,903
|
|
|
58,037
|
|
|
42,908
|
|
|||
Research and development
|
|
23,037
|
|
|
18,020
|
|
|
7,952
|
|
|||
Business reorganization
|
|
—
|
|
|
2,424
|
|
|
—
|
|
|||
Stock-based compensation expense before income taxes
|
|
$
|
247,700
|
|
|
$
|
116,349
|
|
|
$
|
81,879
|
|
Income tax benefit
|
|
$
|
(48,383
|
)
|
|
$
|
(3,561
|
)
|
|
$
|
(1,552
|
)
|
Stock-based compensation expense, net of income tax benefit
|
|
$
|
199,317
|
|
|
$
|
112,788
|
|
|
$
|
80,327
|
|
Capitalized stock-based compensation expense
|
|
$
|
75,725
|
|
|
$
|
90,914
|
|
|
$
|
74,717
|
|
|
|
Fiscal Year Ended March 31,
|
||||
|
|
2019
|
|
2018
|
||
Time-based
|
|
86
|
|
|
66
|
|
Market-based
(1)
|
|
158
|
|
|
122
|
|
Performance-based
(1)
|
|
|
|
|
|
|
New IP
|
|
—
|
|
|
21
|
|
Major IP
|
|
—
|
|
|
20
|
|
IP
|
|
27
|
|
|
—
|
|
Recurrent Consumer Spending ("RCS")
|
|
26
|
|
|
—
|
|
Total-Performance-based
|
|
53
|
|
|
41
|
|
Total Restricted Stock Units
|
|
297
|
|
|
229
|
|
|
|
Shares
(in thousands)
|
|
Weighted
Average Fair
Value on
Grant Date
|
|||
Non-vested restricted stock units at March 31, 2016
|
|
4,444
|
|
|
$
|
22.74
|
|
Granted
|
|
800
|
|
|
$
|
42.78
|
|
Vested
|
|
(2,167
|
)
|
|
$
|
21.71
|
|
Forfeited
|
|
(54
|
)
|
|
$
|
29.87
|
|
Non-vested restricted stock units at March 31, 2017
|
|
3,023
|
|
|
$
|
28.65
|
|
Granted
|
|
3,480
|
|
|
$
|
102.37
|
|
Vested
|
|
(2,124
|
)
|
|
$
|
25.94
|
|
Forfeited
|
|
(1,053
|
)
|
|
$
|
109.73
|
|
Non-vested restricted stock units at March 31, 2018
|
|
3,326
|
|
|
$
|
81.85
|
|
Granted
|
|
995
|
|
|
$
|
103.22
|
|
Vested
|
|
(1,293
|
)
|
|
$
|
65.99
|
|
Forfeited
|
|
(425
|
)
|
|
$
|
101.38
|
|
Non-vested restricted stock units at March 31, 2019
|
|
2,603
|
|
|
$
|
95.35
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
|
|
Employee
Market-Based
|
|
Non-Employee
Market-Based
|
|
Employee
Market-Based
|
|
Non-Employee
Market-Based
|
|
Employee
Market-Based
|
|
Non-Employee
Market-Based
|
||||||
Risk-free interest rate
|
|
2.6
|
%
|
|
2.4
|
%
|
|
1.4
|
%
|
|
2.1
|
%
|
|
0.9
|
%
|
|
0.7
|
%
|
Expected stock price volatility
|
|
34.9
|
%
|
|
31.4
|
%
|
|
28.4
|
%
|
|
35.5
|
%
|
|
31.2
|
%
|
|
30.1
|
%
|
Expected service period (years)
|
|
1.5
|
|
|
1.0
|
|
|
1.5
|
|
|
1.0
|
|
|
1.5
|
|
|
1.0
|
|
Dividends
|
|
None
|
|
|
None
|
|
|
None
|
|
|
None
|
|
|
None
|
|
|
None
|
|
|
|
Shares
(in thousands)
|
|
Weighted
Average Fair
Value on
Grant Date
|
|||
Non-vested restricted stock units at March 31, 2016
|
|
1,782
|
|
|
$
|
23.19
|
|
Granted
|
|
328
|
|
|
$
|
60.06
|
|
Vested
|
|
(970
|
)
|
|
$
|
27.76
|
|
Forfeited
|
|
(5
|
)
|
|
$
|
38.38
|
|
Non-vested restricted stock units at March 31, 2017
|
|
1,135
|
|
|
$
|
45.05
|
|
Granted
|
|
614
|
|
|
$
|
81.20
|
|
Vested
|
|
(1,100
|
)
|
|
$
|
33.97
|
|
Forfeited
|
|
(3
|
)
|
|
$
|
55.91
|
|
Non-vested restricted stock units at March 31, 2018
|
|
646
|
|
|
$
|
79.80
|
|
Granted
|
|
521
|
|
|
$
|
90.73
|
|
Vested
|
|
(695
|
)
|
|
$
|
52.67
|
|
Forfeited
|
|
(6
|
)
|
|
$
|
101.72
|
|
Non-vested restricted stock units at March 31, 2019
|
|
466
|
|
|
$
|
123.72
|
|
|
|
Shares
(in thousands)
|
|
Weighted
Average Fair
Value on
Grant Date
|
|||
Non-vested restricted stock units at March 31, 2016
|
|
179
|
|
|
$
|
14.45
|
|
Granted
|
|
33
|
|
|
$
|
36.37
|
|
Vested
|
|
(83
|
)
|
|
$
|
21.92
|
|
Forfeited
|
|
(28
|
)
|
|
$
|
22.35
|
|
Non-vested restricted stock units at March 31, 2017
|
|
101
|
|
|
$
|
24.64
|
|
Granted
|
|
3,945
|
|
|
$
|
101.30
|
|
Vested
|
|
(47
|
)
|
|
$
|
27.65
|
|
Forfeited
|
|
(573
|
)
|
|
$
|
104.37
|
|
Non-vested restricted stock units at March 31, 2018
|
|
3,426
|
|
|
$
|
100.15
|
|
Granted
|
|
101
|
|
|
$
|
62.99
|
|
Vested
|
|
(455
|
)
|
|
$
|
103.95
|
|
Forfeited
|
|
(72
|
)
|
|
$
|
61.88
|
|
Non-vested restricted stock units at March 31, 2019
|
|
3,000
|
|
|
$
|
99.37
|
|
|
|
Fiscal Year Ended March 31,
|
|
|
|
2019
|
|
Risk-free interest rate
|
|
2.1% - 2.5%
|
|
Expected stock price volatility
|
|
39.1% - 40.0%
|
|
Expected service period (years)
|
|
0.5
|
|
Dividends
|
|
None
|
|
|
|
Fiscal Year Ended March 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income
|
|
$
|
38,019
|
|
|
$
|
21,264
|
|
|
$
|
7,869
|
|
Interest expense
|
|
(8,032
|
)
|
|
(22,269
|
)
|
|
(29,569
|
)
|
|||
Foreign currency exchange (loss) gain
|
|
(505
|
)
|
|
(3,038
|
)
|
|
4,990
|
|
|||
Other
|
|
(3,369
|
)
|
|
5,091
|
|
|
1,020
|
|
|||
Interest and other, net
|
|
$
|
26,113
|
|
|
$
|
1,048
|
|
|
$
|
(15,690
|
)
|
|
|
Foreign currency
translation
adjustments
|
|
Unrealized gain
(loss) on
derivative
instruments
|
|
Unrealized gain (loss) on cross-currency swap
|
|
Unrealized gain
(loss) on
available-
for-sales
securities
|
|
Total
|
||||||||||
Balance at March 31, 2017
|
|
$
|
(47,666
|
)
|
|
$
|
600
|
|
|
$
|
—
|
|
|
$
|
(76
|
)
|
|
$
|
(47,142
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
43,379
|
|
|
—
|
|
|
(15,659
|
)
|
|
(1,778
|
)
|
|
25,942
|
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
7,506
|
|
|
—
|
|
|
7,506
|
|
|||||
Tax effect on cross-currency swap
|
|
—
|
|
|
—
|
|
|
(2,038
|
)
|
|
—
|
|
|
(2,038
|
)
|
|||||
Balance at March 31, 2018
|
|
$
|
(4,287
|
)
|
|
$
|
600
|
|
|
$
|
(10,191
|
)
|
|
$
|
(1,854
|
)
|
|
$
|
(15,732
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(28,803
|
)
|
|
—
|
|
|
763
|
|
|
2,440
|
|
|
(25,600
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
3,726
|
|
|
—
|
|
|
3,726
|
|
|||||
Tax effect on cross-currency swap
|
|
—
|
|
|
—
|
|
|
417
|
|
|
—
|
|
|
417
|
|
|||||
Balance at March 31, 2019
|
|
$
|
(33,090
|
)
|
|
$
|
600
|
|
|
$
|
(5,285
|
)
|
|
$
|
586
|
|
|
$
|
(37,189
|
)
|
|
|
Beginning
Balance
|
|
Additions
|
|
Deductions
|
|
Other
|
|
Ending
Balance
|
||||||||||
Fiscal Year Ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Valuation allowance for deferred income taxes
(1)
|
|
$
|
195,640
|
|
|
11,850
|
|
|
(107,133
|
)
|
|
(50,944
|
)
|
|
$
|
49,413
|
|
|||
Allowance for doubtful accounts
(2)
|
|
1,247
|
|
|
651
|
|
|
—
|
|
|
(903
|
)
|
|
995
|
|
|||||
Fiscal Year Ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Valuation allowance for deferred income taxes
|
|
$
|
184,085
|
|
|
11,555
|
|
|
—
|
|
|
—
|
|
|
$
|
195,640
|
|
|||
Price protection, sales returns and other allowances
|
|
$
|
65,114
|
|
|
59,674
|
|
|
(74,936
|
)
|
|
3,191
|
|
|
$
|
53,043
|
|
|||
Allowance for doubtful accounts
|
|
1,369
|
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
1,247
|
|
|||||
Total accounts receivable allowances
|
|
$
|
66,483
|
|
|
$
|
59,674
|
|
|
$
|
(75,058
|
)
|
|
$
|
3,191
|
|
|
$
|
54,290
|
|
Fiscal Year Ended March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Valuation allowance for deferred income taxes
|
|
$
|
170,574
|
|
|
13,511
|
|
|
—
|
|
|
—
|
|
|
$
|
184,085
|
|
|||
Price protection, sales returns and other allowances
|
|
$
|
45,153
|
|
|
127,744
|
|
|
(100,934
|
)
|
|
(6,849
|
)
|
|
$
|
65,114
|
|
|||
Allowance for doubtful accounts
|
|
399
|
|
|
974
|
|
|
(4
|
)
|
|
—
|
|
|
1,369
|
|
|||||
Total accounts receivable allowances
|
|
$
|
45,552
|
|
|
$
|
128,718
|
|
|
$
|
(100,938
|
)
|
|
$
|
(6,849
|
)
|
|
$
|
66,483
|
|
|
|
Quarter
|
||||||||||||||
Fiscal Year Ended March 31, 2019
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
Net revenue
|
|
$
|
387,982
|
|
|
$
|
492,667
|
|
|
$
|
1,248,738
|
|
|
$
|
539,007
|
|
Gross profit
|
|
256,617
|
|
|
257,787
|
|
|
350,254
|
|
|
280,092
|
|
||||
Income from operations
|
|
70,846
|
|
|
25,986
|
|
|
51,779
|
|
|
58,061
|
|
||||
Net income
|
|
$
|
71,693
|
|
|
$
|
25,367
|
|
|
$
|
179,948
|
|
|
$
|
56,829
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share
|
|
$
|
0.63
|
|
|
$
|
0.22
|
|
|
$
|
1.59
|
|
|
$
|
0.50
|
|
Diluted earnings per share
|
|
$
|
0.62
|
|
|
$
|
0.22
|
|
|
$
|
1.57
|
|
|
$
|
0.50
|
|
|
|
Quarter
|
||||||||||||||
Fiscal Year Ended March 31, 2018
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
Net revenue
|
|
$
|
418,216
|
|
|
$
|
443,562
|
|
|
$
|
480,840
|
|
|
$
|
450,274
|
|
Gross profit
|
|
223,647
|
|
|
197,014
|
|
|
212,857
|
|
|
261,063
|
|
||||
Income (loss) from operations
|
|
50,219
|
|
|
(11,319
|
)
|
|
8,852
|
|
|
87,825
|
|
||||
Net (loss) income
|
|
$
|
60,276
|
|
|
$
|
(2,736
|
)
|
|
$
|
25,140
|
|
|
$
|
90,853
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings (loss) per share
|
|
$
|
0.57
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.22
|
|
|
$
|
0.80
|
|
Diluted earnings (loss) per share
|
|
$
|
0.56
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.21
|
|
|
$
|
0.77
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC.
|
|
|
By:
|
/s/ STRAUSS ZELNICK
|
|
|
Strauss Zelnick
Chairman and Chief Executive Officer
|
May 13, 2019
|
|
|
Signature
|
|
Title
|
|
Date
|
/s/ STRAUSS ZELNICK
|
|
Chairman and Chief Executive Officer (Principal Executive Officer)
|
|
|
Strauss Zelnick
|
|
|
May 13, 2019
|
|
/s/ LAINIE GOLDSTEIN
|
|
Chief Financial Officer (Principal Financial and Accounting Officer)
|
|
|
Lainie Goldstein
|
|
|
May 13, 2019
|
|
/s/ MICHAEL DORNEMANN
|
|
|
|
|
Michael Dornemann
|
|
Lead Independent Director
|
|
May 13, 2019
|
/s/ J MOSES
|
|
|
|
|
J Moses
|
|
Director
|
|
May 13, 2019
|
/s/ MICHAEL SHERESKY
|
|
|
|
|
Michael Sheresky
|
|
Director
|
|
May 13, 2019
|
/s/ LAVERNE SRINIVASAN
|
|
|
|
|
LaVerne Srinivasan
|
|
Director
|
|
May 13, 2019
|
/s/ SUSAN TOLSON
|
|
|
|
|
Susan Tolson
|
|
Director
|
|
May 13, 2019
|
/s/ PAUL VIERA
|
|
|
|
|
Paul Viera
|
|
Director
|
|
May 13, 2019
|
1 Year TakeTwo Interactive Soft... Chart |
1 Month TakeTwo Interactive Soft... Chart |
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