View Filing Data

$ 387,982

$ 418,216

131,365

194,569

256,617

223,647

67,735

60,603

58,306

52,214

50,712

42,269

9,260

7,743

(242)

10,599

185,771

173,428

70,846

50,219

6,601

(2,808)

77,447

47,411

5,754

(12,865)

Basic earnings (loss) per share (in dollars per share)

$ 71,693

$ 60,276

^[1]

Earnings per share:

$ 0.63

$ 0.57

Diluted earnings (loss) per share (in dollars per share)

$ 0.62

$ 0.56

[1]	Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-08, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands

3 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Statement of Comprehensive Income [Abstract]

Foreign currency translation adjustment

$ 71,693

$ 60,276

^[1]

Other comprehensive (loss) income:

(26,817)

9,476

Cash flow hedges:

Change in unrealized gains

991

Tax effect on effective cash flow hedges

133

Change in fair value of effective cash flow hedge

1,124

Unrealized loss, net on available-for-sale securities, net of taxes

409

Reclassification to earnings for realized losses, net on available for sale securities, net of taxes

Change in fair value of available for sale securities

409

Other comprehensive (loss) income

(25,284)

9,560

Comprehensive income (loss)

$ 46,409

$ 69,836

[1]	Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-08, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Jun. 30, 2018

Jun. 30, 2017

^[1]

Mar. 31, 2018

Operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

$ 71,693

$ 60,276

Amortization and impairment of software development costs and licenses

6,858

18,206

Depreciation

9,130

7,743

Amortization and impairment of intellectual property

6,861

8,181

Stock-based compensation

24,598

24,071

Amortization of discount on Convertible Notes

5,237

Gain on conversions of Convertible Notes

(1,103)

Amortization of debt issuance costs

188

Other, net

(3,103)

(9,669)

Changes in assets and liabilities, net of impact of adoption of Topic 606:

Accounts receivable

61,355

(9,294)

Inventory

3,692

5,451

Software development costs and licenses

(54,663)

(71,829)

Prepaid expenses and other assets

(21,464)

(23,199)

Deferred revenue

(95,075)

(67,883)

Deferred cost of goods sold

8,409

32,233

Accounts payable, accrued expenses and other liabilities

(29,597)

71,281

Net cash (used in) provided by operating activities

(11,183)

49,890

Investing activities:

Change in bank time deposits

(29,840)

(24,999)

Proceeds from available-for-sale securities

51,388

62,205

Purchases of available-for-sale securities

(44,108)

(41,148)

Purchases of fixed assets

(14,289)

(16,092)

Asset acquisition

(25,381)

Business acquisition

(3,149)

Net cash used in investing activities

(39,998)

(45,415)

Financing activities:

(58,403)

(57,689)

Repurchase of common stock

(153,500)

Net cash used in financing activities

(211,903)

(57,689)

Effects of foreign currency exchange rates on cash and cash equivalents

(9,103)

6,448

Net change in cash, cash equivalents, and restricted cash

(272,187)

(46,766)

Cash, cash equivalents, and restricted cash, beginning of year

1,246,371

1,281,214

$ 1,281,214

^[1]

Cash, cash equivalents, and restricted cash, end of period

$ 974,184

$ 1,234,448

$ 1,246,371

[1]	Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-08, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Take-Two Interactive Software, Inc. (the "Company," "we," "us," or similar pronouns) was incorporated in the state of Delaware in 1993. We are a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through our two wholly-owned labels Rockstar Games and 2K, as well as our Private Division label and Social Point, a leading developer of mobile games. Our products are designed for console systems and personal computers, including smart phones and tablets, and are delivered through physical retail, digital download, online platforms and cloud streaming services.

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries and, in the opinion of management, reflect all normal and recurring adjustments necessary for the fair presentation of our financial position, results of operations and cash flows. Interim results may not be indicative of the results that may be expected for the full fiscal year. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under generally accepted accounting principles in the United States, interim accounting for certain expenses, including income taxes, are based on full year assumptions when appropriate. Actual results could differ materially from those estimates.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.

Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation.

Recently Adopted Accounting Pronouncements

Accounting for Restricted Cash

In November 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU amends the presentation of restricted cash within the statement of cash flows by requiring that restricted cash and restricted cash equivalents be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts. This standard is effective for fiscal years beginning after December 15, 2017 (April 1, 2018 for the Company), including interim periods within those fiscal years.

We adopted the new standard during the first quarter of fiscal 2019 and applied the standard retrospectively for all periods presented. The application of this new standard resulted in an increase of net cash from operating activities of $71,982 and $68,518 on our Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2018 and 2017, respectively. In our Annual Report on Form 10-K for the year ending March 31, 2018, the impact would have been an increase in net cash from operating activities of $99,580 and $76,649 for the fiscal years ended March 31, 2018 and 2017, respectively.

Accounting for Stock Compensation

In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Accounting. This guidance aligns the accounting for share-based payment transactions with non-employees to accounting for share-based payment transactions with employees. Companies are required to record a cumulative-effect adjustment (net of tax) to retained earnings as of the beginning of the fiscal year of the adoption. Upon transition, non-employee awards are required to be measured at fair value as of the adoption date. This standard will be effective for fiscal years beginning December 15, 2018 (April 1, 2019 for the Company), including interim periods within those fiscal years. Early adoption is permitted.

We early adopted this update effective April 1, 2018 to simplify the accounting for non-employee stock-based awards so that it is better aligned with the current guidance for employee stock-based awards. The application of this new standard did not have a significant impact to our Condensed Consolidated Financial Statements for the three months ended June 30, 2018 and 2017 as our last re-measurement date for non-employee awards was March 31, 2018. The adoption of this ASU results in a change to our accounting policy for non-employee stock-based awards.

Accounting for Goodwill

In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This ASU eliminates Step 2 from the goodwill impairment test. Under the new guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, this ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019 (April 1, 2020 for the Company), including interim periods within those fiscal years, and are applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We early adopted this update effective April 1, 2018. The adoption did not have an impact on our Condensed Consolidated Financial Statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. On April 1, 2018, we adopted the new accounting standard and related amendments (the “New Revenue Accounting Standard”) using the modified retrospective method. As a result, we have updated our significant accounting policy disclosure for revenue recognition herein.

Impact of Adopting New Revenue Accounting Standard

We elected to apply the New Revenue Accounting Standard only to contracts not completed as of the adoption date. For contracts that were modified before the period of adoption, we elected to reflect the aggregate effect of all modifications when (i) identifying the satisfied and unsatisfied performance obligations, (ii) determining the transaction price, and (iii) allocating the transaction price to the satisfied and unsatisfied performance obligations. We recognized the cumulative effect of initially applying the New Revenue Accounting Standard as an adjustment to the opening balance of retained earnings, net of tax. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect adjustment recorded to our retained earnings was $470,273, net of tax.

The most significant impacts of adopting the New Revenue Accounting Standard are:

•

The elimination of the requirement for vendor-specific objective evidence (“VSOE”) of fair value for software products that offer offline gameplay functionality and benefit from meaningful game related services which may include online functionality that is dependent on our online support services and/or additional free content updates. Under the prior revenue accounting guidance, for software products with multiple deliverables for which we did not have VSOE for our game related service deliverables, we recognized revenue ratably over the estimated service period. Under the New Revenue Accounting Standard, we allocate the sales price and recognize revenue for the offline software upon delivery and the remainder over the estimated service period. This difference in accounting primarily affects revenue recognition from Grand Theft Auto V and our NBA 2K franchise, where the majority of the sales price will be allocated to the offline software and recognized upon transfer of control to our customers, and the remaining amounts allocated to the game related service performance obligation and recognized over the estimated service period.


•	For performance obligations that are satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. Previously, our estimated service period was based on the economic game life.


•	Under the New Revenue Standard, certain contracts with customers for which we have recognized revenue to the extent it is probable that a significant reversal will not occur but do not have a right to invoice as of the reporting date. Contract assets are classified within Prepaid expenses and other on the Condensed Consolidated Balance Sheet.


•	The classification of allowances for estimated price protection, reserves for returns and other allowances as refund liabilities. Such allowances were previously recorded as contra-Accounts receivable and now are classified within Accrued expenses and other current liabilities on the Consolidated Balance Sheet.

As a result of adopting the New Revenue Accounting Standard the following adjustments were made to our Consolidated Balance Sheet at April 1, 2018, which also reflect the changes related to income tax accounts included in Prepaid expenses and other, Other assets, Accrued expenses and other current liabilities and Other long-term liabilities:



	March 31, 2018			Adjustments			April 1, 2018
ASSETS
Accounts receivable, net	$	247,649		$	53,940		$	301,589
Software development costs and licenses	33,284			(11,096		)	22,188
Deferred cost of goods sold	117,851			(89,867		)	27,984
Prepaid expenses and other	133,454			33,620			167,074
Deferred cost of goods sold, net of current portion	26,719			(25,687		)	1,032
Other assets	56,887			51,430			108,317

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	914,748		$	69,678		$	984,426
Deferred revenue	777,152			(230,144		)	547,008
Non-current deferred revenue	355,589			(336,456		)	19,133
Other long-term liabilities	158,285			34,336			192,621
Retained earnings	73,516			470,273			543,789
Accumulated other comprehensive loss	(15,732		)	4,653			(11,079		)

Recently Issued Accounting Pronouncements

Accounting for Leases

In February 2016, the FASB issued ASU 2016-02, Leases. This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting. This update is effective for annual periods, and interim periods within those years, beginning after December 15, 2018 (April 1, 2019 for the Company). This new guidance must be adopted using a modified retrospective approach whereby lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of adopting this update on our Consolidated Financial Statements, which will consist primarily of a balance sheet gross up of our operating leases, mostly for office space.

Revenue Recognition

Refer to Note 1 to our Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018 for our revenue recognition accounting policy as it relates to revenue transactions prior to April 1, 2018. The revenue recognition accounting policy described below relates to revenue transactions from April 1, 2018 and thereafter, which are accounted for in accordance with Topic 606.

We derive revenue primarily from the sale of our interactive entertainment content, principally for console gaming systems such as the Sony Computer Entertainment, Inc. ("Sony") PlayStation®4 ("PS4") and PlayStation®3 ("PS3"), Microsoft Corporation ("Microsoft") Xbox One® ("Xbox One") and Xbox 360® ("Xbox 360"), the Nintendo Switch, and personal computers ("PC"), including smartphones and tablets. Our interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. We may also sell separate downloadable add-on content to supplement our full game software products. Certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases.

We determine revenue recognition by:


•	identifying the contract, or contracts, with the customer;


•	identifying the performance obligations in the contract;


•	determining the transaction price;


•	allocating the transaction price to performance obligations in the contract; and


•	recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.

We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sales of software products and game related services when control of the promised products and services is transferred to our customers and our performance obligations under the contract have been satisfied. Revenue is recorded net of transaction taxes assessed by governmental authorities such as sales value-added taxes and other similar taxes.

Our software products are sold as full games, which typically provide access to the main game content, primarily for console and PC. Generally our full game software products deliver a license of our intellectual property that provides a functional offline gaming experience (i.e., one that does not require an Internet connection to access the main game content or other significant game related services). We recognize revenue related to the license of our intellectual property that provides offline functionality at the time control of the products have been transferred to our customers.

In addition, some of our full game software products that provide a functional offline gaming experience may also include significant game related services delivered over time, such as online functionality that is dependent upon online support services and/or additional free content updates. For full game sales that offer offline functionality and significant game related services we evaluate whether the license of our intellectual property and the game related services are distinct and separable. This evaluation is performed for each software product sold. If we determine that our software products contain a license of intellectual property separate from the game related services (i.e. multiple performance obligations), we estimate a standalone selling price for each identified performance obligation. We allocate the transaction price to each performance obligation using a relative standalone selling price method (the transaction price is allocated to a performance obligation based on the proportion of the standalone selling price of each performance obligation to the sum of the standalone selling prices for all performance obligations in the contract). For the portion of the transaction price allocable to the license, revenue is recognized when the customer takes control of the product. For the portion of the transaction price allocated to game related services, revenue is recognized ratably over the estimated service period for the related software product. We also defer related product costs and recognize the costs as the revenues are recognized.

Certain of our full game software products are delivered primarily as an online gaming experience with substantially all gameplay requiring online access to our game related services. We recognize revenue for full game software products that are dependent on our game related services over an estimated service period. For our full game online software products we also defer related product costs and recognize the costs as the revenue is recognized.

In addition to sales of our full game software products, certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. Revenue from the sale of virtual currency and in-game purchases is deferred and recognized ratably over the estimated service period, which is the user life.

We also sell separate downloadable add-on content to supplement our full game software products. Revenue from the sale of separate downloadable add-on content is evaluated for revenue recognition on the same basis as our full game software products.

Certain software products are sold to customers with a “street date” (the earliest date these products may be sold by retailers). For these products, we recognize revenue on the later of the street date or the sale date as this is generally when we have transferred control of our software products. In addition, some of our software products are sold as digital downloads.

Revenue from digital downloads is generally recognized when the download is made available to the end user by a third-party digital storefront. For the sale of physical software products, the recognition of revenue allocated to game related services does not begin until the product is sold-through by our customer to the end user. We currently estimate sell-through to the end user for all our titles to be approximately two months after we have sold-in the software products to our retailers. Determining the estimated sell-through period is subjective and requires significant management judgment and estimates.

Our payment terms and conditions vary by customer and typically provide net 30 to 60 day terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less.

Contract Balances

We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue when cash payments are received or due in advance of our performance, even if amounts are refundable. Contract assets generally consist of arrangements for which we have recognized revenue to the extent it is probable that significant reversal will not occur but do not have a right to invoice as of the reporting date. Contract assets are recorded within Prepaid expenses and other on our Consolidated Balance Sheet.

Our allowance for doubtful accounts are typically immaterial and, if required, are based on our best estimate of probable losses inherent in our accounts receivable balance.

Deferred revenue is comprised primarily of unsatisfied revenue related to the portion of the transaction price allocable to game related services of our full game software products. These sales are typically invoiced at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue may also include amounts related to software products with future street dates.

Refer to Note 2 - Revenue from Contracts with Customers for further information, including changes in deferred revenue during the period.

Principal Agent Considerations

We offer certain software products via third party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve's Steam, Apple's App Store, and the Google Play Store. We determine whether revenue should be reported gross or net of fees retained by the storefront. Key indicators that we use in evaluating gross versus net treatment include, but are not limited to, the following:


•	which party is primarily responsible for fulfilling the promise to provide the specified good or service; and


•	which party has discretion in establishing the price for the specified good or service.

Based on our evaluation of the above indicators, we report revenue on a gross basis for sales arrangements via Apple's App Store and the Google Play Store, and we report revenue net of fees retained by the digital storefront for sales arrangements via Microsoft’s Xbox, Sony’s PlayStation, and Valve's Steam.

Shipping and Handling

Shipping and handling costs are incurred to move physical software products to customers. We recognize all shipping and handling costs as an expense in Cost of goods sold because we are responsible for delivery of the product to our customers prior to transfer of control to the customer.

Estimated Service Period

For performance obligations satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which faithfully depicts the timing of satisfying our performance obligation. We consider a variety of data points when determining and subsequently reassessing the estimated service period for players of our software products, primarily we review the weighted average number of days between players’ first and last days played online. We also consider known online trends, the service periods of our previously released software products, and, to the extent publicly available, the service periods of our competitors’ software products that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of our game related services to our customers, as it is the best representation of the period during which our customers play our software products. Determining the estimated service period is subjective and requires significant management judgment and estimates. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software products are generally between 9 and 15 months depending on the software product.

Revenue Arrangements with Multiple Performance Obligations

Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment as we typically do not have observable standalone selling prices for our game related service performance obligations. For software products in which the software license has offline functionality and 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, we believe we have separate performance obligations for the license of the intellectual property and the game related services. Significant judgment and estimates are also required to determine the standalone selling price for each distinct performance obligation and whether a discount needs to be allocated based on the relative standalone selling price of our products and services.

To estimate the standalone selling price for each performance obligation, we consider, to the extent available, a variety of data points such as past selling prices of the product or other similar products, competitor pricing and our market data. If observable pricing is not available, we use an expected cost plus margin approach taking into account relevant costs including product development, post-release support, marketing and licensing costs. This evaluation is performed on a product by product basis.

Price Protection and Allowances for Returns

We grant price protection and accept returns in connection with our distribution arrangements. Following reductions in the price of our physical software products, we grant price protection to permit customers to take credits against amounts they owe us with respect to merchandise unsold by them. Our customers must satisfy certain conditions to entitle them to receive price protection or return products, including compliance with applicable payment terms and confirmation of field inventory levels.

At contract inception and at each subsequent reporting period, we make estimates of future price protection and product returns related to current period software product revenue. We estimate the amount of future price protection and returns for software products based upon, among other factors, historical experience and performance of the titles in similar genres, historical performance of the hardware platform, customer inventory levels, analysis of sell-through rates, sales force and retail customer feedback, industry pricing, market conditions and changes in demand and acceptance of our products by consumers.

Revenue is recognized after deducting the estimated price protection and allowances for returns, which are accounted for as variable consideration. Price protection and allowances for returns are considered refund liabilities and are reported within Accrued expenses and other current liabilities on our Consolidated Balance Sheet.

Sales Incentives

We enter into various sales incentives arrangements with our customers, such as rebates, discounts, and cooperative marketing. These incentives are considered adjustments to the transaction price of our software products and are reflected as reductions to revenue. Sales incentives incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are included in Selling and marketing expense if there is a separate identifiable benefit and the benefit’s fair value can be established. Otherwise, such sales incentives are reflected as a reduction to revenue and are considered refund liabilities, which are reported within Accrued expenses and other current liabilities in our Consolidated Balance Sheet.

Significant Estimates

Significant management judgment and estimates must be used in connection with many of the determinations described above, such as estimating the fair value allocation to distinct and separable performance obligations, the service period over which to defer recognition of revenue, the time it takes our physical products to sell-through to end users, and the amounts of future price protection and allowance for returns. We believe we can make reliable estimates. However, actual results may differ from initial estimates due to changes in circumstances, market conditions and assumptions. Adjustments to estimates are recorded in the period in which they become known.

REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

Impacts on financial statement line items

Adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the three months ended June 30, 2018:



	Amounts as reported			Amounts without adoption of New Revenue Accounting Standard			Increase (decrease) due to adoption of New Revenue Accounting Standard
Net revenue	387,982			401,981			(13,999	)
Cost of goods sold	131,365			157,089			(25,724	)
Gross profit	256,617			244,892			11,725
General and administrative	67,735			67,735			—
Selling and marketing	58,306			58,306			—
Research and development	50,712			50,712			—
Business reorganization	(242		)	(242		)	—
Depreciation and amortization	9,260			9,260			—
Total operating expenses	185,771			185,771			—
Income from operations	70,846			59,121			11,725
Interest and other, net	6,601			6,013			588
Income before income taxes	77,447			65,134			12,313
Provision for (benefit from) income taxes	5,754			(1,970		)	7,724
Net income	71,693			67,104			4,589
Earnings per share:
Basic earnings per share	$	0.63		$	0.59
Diluted earnings per share	$	0.62		$	0.58

Adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Balance Sheet as of June 30, 2018:



	Amounts as reported			Amounts without adoption of New Revenue Accounting Standard			Increase (decrease) due to adoption of New Revenue Accounting Standard
ASSETS
Accounts receivable, net	$	239,736		$	197,465		$	42,271
Software development costs and licenses	12,676			17,571			(4,895		)
Deferred cost of goods sold	19,141			83,632			(64,491		)
Prepaid expenses and other	180,512			121,359			59,153
Deferred cost of goods sold, net of current portion	736			19,414			(18,678		)
Other assets	75,917			59,696			16,221

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	906,881		$	854,006		$	52,875
Deferred revenue	450,568			703,172			(252,604		)
Non-current deferred revenue	15,861			296,541			(280,680		)
Other long-term liabilities	191,490			155,111			36,379
Retained earnings	615,482			140,620			474,862
Accumulated other comprehensive loss	(41,015		)	(39,764		)	(1,251		)

The adoption of the New Revenue Standard had no impact on our cash flows.

Disaggregation of revenue

Product revenue

Product revenue is primarily comprised of the portion of revenue from software products that is recognized when the customer takes control of the product (i.e. upon delivery of the software product).

Service and other revenue

Service and other revenue is primarily comprised of revenue from game related services, virtual currency transactions and in-game purchases which are recognized over an estimated service period.

Net revenue by product revenue and service and other was as follows:



		Three Months Ended June 30,
		2018
Net revenue recognized:
Product		78,795
Service and other		309,187
Total net revenue		387,982

Full game and other revenue

Full game and other revenue primarily includes the initial sale of full game software products, which may include offline and/or significant game related services.

Recurrent consumer spending revenue

Recurrent consumer spending revenue is generated from ongoing consumer engagement and includes revenue from virtual currency, add-on content, and in-game purchases.

Net revenue by full game and other revenue and recurrent consumer spending was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
Recurrent consumer spending	241,030
Full game and other	$	146,952
Total net revenue	$	387,982

Geography

We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
United States	$	221,411
International	166,571
Total net revenue	$	387,982

Platform

Net revenue by platform was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
Console	$	294,730
PC and other	93,252
Total net revenue	$	387,982

Distribution channel

Our products are delivered through digital online services (digital download, online platforms and cloud streaming) and physical retail and other. Net revenue by distribution channel was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
Digital online	$	315,047
Physical retail and other	72,935
Total net revenue	$	387,982

Deferred Revenue

We record deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations. The opening balance and ending balance of deferred revenue, including current and non-current balances as of April 1, 2018 and June 30, 2018 was $566,141 and $466,429, respectively. For the three months ended June 30, 2018, the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business.

During the three months ended June 30, 2018, $240,485 of revenue was recognized that was included in the deferred revenue balance at the beginning of the period. As of June 30, 2018, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $466,429. We expect to recognize approximately $450,568 of this balance as revenue over the next 12 months, and the remainder thereafter.

As of April 1, 2018 and June 30, 2018 our contract asset balance was $69,522 and $66,668, respectively.

MANAGEMENT AGREEMENT

3 Months Ended

Jun. 30, 2018

MANAGEMENT AGREEMENT

MANAGEMENT AGREEMENT

In March 2014, we entered into an amended management services agreement, (the "2014 Management Agreement"), with ZelnickMedia Corporation ("ZelnickMedia") pursuant to which ZelnickMedia provided us with certain management, consulting and executive level services. The 2014 Management Agreement became effective April 1, 2014. The 2014 Management Agreement provided for an annual management fee of $2,970 over the term of the agreement and a maximum annual bonus opportunity of $4,752 over the term of the agreement, based on the Company achieving certain performance thresholds. In November 2017, we entered into a new management agreement, (the "2017 Management Agreement"), with ZelnickMedia pursuant to which ZelnickMedia continues to provide financial and management consulting services to the Company through March 31, 2024. The 2017 Management Agreement became effective January 1, 2018 and supersedes and replaces the 2014 Management Agreement, except as otherwise contemplated by the 2017 Management Agreement. As part of the 2017 Management Agreement, Strauss Zelnick, the President of ZelnickMedia, continues to serve as Executive Chairman and Chief Executive Officer, and Karl Slatoff, a partner of ZelnickMedia, continues to serve as President of the Company. The 2017 Management Agreement provides for an annual management fee of $3,100 over the term of the agreement and a maximum annual bonus opportunity of $7,440 over the term of the agreement, based on the Company achieving certain performance thresholds.

In consideration for ZelnickMedia's services, we recorded consulting expense (a component of general and administrative expenses) of $1,705 and $1,337 during the three months ended June 30, 2018 and 2017, respectively. We recorded stock-based compensation expense for non-employee restricted stock units granted to ZelnickMedia, which is included in General and administrative expenses of $4,517 and $6,014 during the three months ended June 30, 2018 and 2017, respectively.

In connection with the 2017 Management Agreement and 2014 Management Agreement, we have granted restricted stock units as follows:



	Three Months Ended June 30,
	2018	2017
Time-based	86	66
Market-based(1)	79	122
Performance-based(1)
New IP	—	21
Major IP	—	20
IP	27	—
Recurrent Consumer Spending ("RCS")	26	—
Total—Performance-based	53	41
Total Restricted Stock Units	218	229

_______________________________________________________________________________


(1)	Represents the maximum number of shares eligible to vest.

Time-based restricted stock units granted in 2018 will vest on April 13, 2020, and those granted in 2017 will vest on April 4, 2019, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date.

Market-based restricted stock units granted in 2018 are eligible to vest on April 13, 2020, and those granted in 2017 are eligible to vest on April 4, 2019, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. Market-based restricted stock units are eligible to vest based on the Company's Total Shareholder Return (as defined in the relevant grant agreement) relative to the Total Shareholder Return (as defined in the relevant grant agreement) of the companies that constitute the NASDAQ Composite Index as of the grant date measured over a two-year period. To earn the target number of market-based restricted stock units (which represents 50% of the number of the market-based restricted stock units set forth in the table above), the Company must perform at the 50th percentile, with the maximum number of market-based restricted stock units earned if the Company performs at the 75th percentile.

Performance-based restricted stock units granted in 2018 are eligible to vest on April 13, 2020, and those granted in 2017 are eligible to vest on April 4, 2019, in each case provided that the 2017 Management Agreement has not been terminated prior to such vesting date. The 2017 performance-based restricted stock units, of which 50% are tied to "New IP" and 50% to "Major IP" (as defined in the relevant grant agreement), are eligible to vest based on the Company's achievement of certain performance metrics (as defined in the relevant grant agreement) of individual product releases of "New IP" or "Major IP," respectively, measured over a two-year period. The 2018 performance-based restricted stock units, of which 50% are tied to "IP" and 50% to "RCS" (as defined in the relevant grant agreement), are eligible to vest based on the Company's achievement of certain performance metrics (as defined in the relevant grant agreement) of either individual product releases of "IP" or "RCS" measured over a two-year period. The target number of performance-based restricted stock units that may be earned pursuant to these grants is equal to 50% of the grant amounts set forth in the above table (the numbers in the table represent the maximum number of performance-based restricted stock units that may be earned). At the end of each reporting period, we assess the probability of each performance metric and upon determination that certain thresholds are probable, we record expense for the unvested portion of the shares of performance-based restricted stock units.

The unvested portion of time-based, market-based and performance-based restricted stock units held by ZelnickMedia were 434 and 602 as of June 30, 2018 and March 31, 2018, respectively. 340 restricted stock units previously granted to ZelnickMedia, vested and 33 restricted stock units were forfeited by ZelnickMedia during the three months ended June 30, 2018.

FAIR VALUE MEASUREMENTS

3 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses and other current liabilities, approximate fair value because of their short maturities.

We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows:


•	Level 1—Quoted prices in active markets for identical assets or liabilities.


•	Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.


•	Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The table below segregates all assets and liabilities that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.



	June 30, 2018			Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)			Significant unobservable inputs (level 3)		Balance Sheet Classification
Money market funds	$	275,025		$	275,025	$	—		$	—	Cash and cash equivalents
Bank-time deposits	20			20					—		Cash and cash equivalents
Commercial paper	25,338					25,338			—		Cash and cash equivalents
Money market funds	506,834			506,834		—			—		Restricted cash
Corporate bonds	320,643					320,643			—		Short-term investments
US Treasuries	59,799			59,799		—			—		Short-term investments
Commercial paper	5,990			—		5,990			—		Short-term investments
Mutual funds	4,521					4,521			—		Short-term investments
Bank-time deposits	246,503			246,503		—			—		Short-term investments
Foreign currency forward contracts	17			—		17			—		Prepaid expenses and other
Private equity	1,823			—		—			1,823		Other assets
Foreign currency forward contracts	(140		)	—		(140		)	—		Accrued expenses and other current liabilities
Cross-currency swap	(6,207		)	—		(6,207		)	—		Accrued expenses and other current liabilities
Total recurring fair value measurements, net	$	1,440,166		$	1,088,181	$	350,162		$	1,823



	March 31, 2018			Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)			Significant unobservable inputs (level 3)		Balance Sheet Classification
Money market funds	$	516,626		$	516,626	$	—		$	—	Cash and cash equivalents
Bank-time deposits	21			21		—			—		Cash and cash equivalents
Commercial paper	10,796			—		10,796			—		Cash and cash equivalents
Corporate bonds	308,716			—		308,716			—		Short-term investments
US Treasuries	59,725			59,725		—			—		Short-term investments
Commercial paper	25,422			—		25,422			—		Short-term investments
Mutual funds	4,880			—		4,880			—		Short-term investments
Bank-time deposits	216,663			216,663		—			—		Short-term investments
Foreign currency forward contracts	12			—		12			—		Prepaid expenses and other
Private equity	1,205			—		—			1,205		Other assets
Foreign currency forward contracts	(43		)			(43		)			Accrued expenses and other current liabilities
Cross-currency swap	(15,659		)			(15,659		)			Accrued expenses and other current liabilities
Total recurring fair value measurements, net	$	1,128,364		$	793,035	$	334,124		$	1,205

We did not have any transfers between Level 1 and Level 2 fair value measurements, nor did we have any transfers into or out of Level 3 during the three months ended June 30, 2018.

Debt

As of June 30, 2018, the estimated fair value of our 1.00% Convertible Notes due 2018 (the "1.00% Convertible Notes") was $27,225. The fair value was determined using Level 2 inputs, observable market data, for the 1.00% Convertible Notes and their embedded option feature. See Note 10 for additional information regarding our 1.00% Convertible Notes.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SHORT-TERM INVESTMENTS

3 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

SHORT-TERM INVESTMENTS

Our short-term investments consisted of the following:



	June 30, 2018
			Gross Unrealized
	Cost or Amortized Cost		Gains		Losses			Fair Value
Short-term investments
Bank time deposits	$	246,503	$	—	$	—		$	246,503
Available-for-sale securities:
Corporate bonds	321,860		28		(1,245		)	320,643
US Treasuries	60,044		—		(245		)	59,799
Commercial paper	5,990		—		—			5,990
Mutual funds	4,558		7		(44		)	4,521
Total short-term investments	$	638,955	$	35	$	(1,534	)	$	637,456



	March 31, 2018
			Gross Unrealized
	Cost or Amortized Cost		Gains		Losses			Fair Value
Short-term investments
Bank time deposits	$	216,663	$	—	$	—		$	216,663
Available-for-sale securities:
Corporate bonds	310,387		16		(1,687		)	308,716
US Treasuries	59,970		—		(245		)	59,725
Commercial paper	25,422		—		—			25,422
Mutual funds	4,876		16		(12		)	4,880
Total short-term investments	$	617,318	$	32	$	(1,944	)	$	615,406

Based on our review of investments with unrealized losses, we did not consider these investments to be other-than-temporarily impaired as of June 30, 2018 or March 31, 2018. We do not intend to sell any of our investments with unrealized losses, nor is it more likely than not that we will be required to sell those investments.

The following table summarizes the contracted maturities of our short-term investments at June 30, 2018:



	June 30, 2018
	Amortized Cost		Fair Value
Short-term investments
Due in 1 year or less	$	555,536	$	554,449
Due in 1 - 2 years	83,419		83,007
Total short-term investments	$	638,955	$	637,456

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Our risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. We do not enter into derivative financial contracts for speculative or trading purposes. We recognize derivative instruments as either assets or liabilities on our Consolidated Balance Sheets, and we measure those instruments at fair value. We classify cash flows from derivative transactions as cash flows from operating activities in our Consolidated Statements of Cash Flows.

Foreign currency forward contracts

The following table shows the gross notional amounts of foreign currency forward contracts:



	June 30, 2018		March 31, 2018
Forward contracts to sell foreign currencies	$	50,794	$	67,580
Forward contracts to purchase foreign currencies	42,822		4,359

For the three months ended June 30, 2018 and 2017, we recorded a gain of $2,404 and a loss of $8,603, respectively, related to foreign currency forward contracts in Interest and other, net in our Condensed Consolidated Statements of Operations. Our foreign currency exchange forward contracts are not designated as hedging instruments under hedge accounting and are used to reduce the impact of foreign currency on certain balance sheet exposures and certain revenue and expense. These instruments are generally short-term in nature, with typical maturities of less than one year, and are subject to fluctuations in foreign exchange rates.

Cross-currency swaps

We entered into a cross-currency swap agreement in August 2017 related to an intercompany loan that has been designated and accounted for as a cash flow hedge of foreign currency exchange risk. The intercompany loan is related to the acquisition of Social Point. As of June 30, 2018, the notional amount of the cross-currency swap is $129,000. This cross-currency swap mitigates the exposure to fluctuations in the U.S. dollar-euro exchange rate related to the intercompany loan. The critical terms of the cross-currency swap agreement correspond to the intercompany loan and both mature at the same time in 2027; as such, there was no ineffectiveness during the period.

Changes in the fair value of this cross-currency swap are recorded in Accumulated other comprehensive income (loss) and offset the change in value of interest and principal payment as a result of changes in foreign exchange rates. Resulting gains or losses from the cross-currency swap are reclassified from Accumulated other comprehensive income (loss) to earnings to completely offset foreign currency transaction gains and losses recognized on the intercompany loan. We recognize the difference between the U.S. dollar interest payments received from the swap counterparty and the U.S. dollar equivalent of the euro interest payments made to the swap counterparty in interest and other, net on our Condensed Consolidated Statement of Operations. There are no credit-risk related contingent features associated with these swaps.

INVENTORY

3 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

INVENTORY

Inventory balances by category were as follows:



	June 30, 2018		March 31, 2018
Finished products	$	9,362	$	13,940
Parts and supplies	1,280		1,222
Inventory	$	10,642	$	15,162

Estimated product returns included in inventory at June 30, 2018 and March 31, 2018 were $277 and $373, respectively.

SOFTWARE DEVELOPMENT COSTS AND LICENSES

3 Months Ended

Jun. 30, 2018

SOFTWARE DEVELOPMENT COSTS AND LICENSES

SOFTWARE DEVELOPMENT COSTS AND LICENSES

Details of our capitalized software development costs and licenses were as follows:



	June 30, 2018				March 31, 2018
	Current		Non-current		Current		Non-current
Software development costs, internally developed	$	5,219	$	581,872	$	19,338	$	515,761
Software development costs, externally developed	1,097		135,566		4,275		122,270
Licenses	6,360		2,432		9,671		1,338
Software development costs and licenses	$	12,676	$	719,870	$	33,284	$	639,369

During the three months ended June 30, 2018 and 2017, we recorded $0 and $684, respectively, of software development impairment charges (a component of Cost of goods sold).

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

3 Months Ended

Jun. 30, 2018

Liabilities, Current [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:



	June 30, 2018		March 31, 2018

Software development royalties	$	632,133	$	600,512
Business reorganization (see Notes 13 and 14)	66,928		72,074
Compensation and benefits	48,782		57,499
Refund liability	42,270		—
Licenses	31,032		43,261
Marketing and promotions	17,414		19,731
Deferred acquisition payments	—		25,000
Other	68,322		96,671
Accrued expenses and other current liabilities	$	906,881	$	914,748

DEBT

3 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

DEBT

Credit Agreement

In December 2017, we entered into a Seventh Amendment to our Second Amended and Restated Credit Agreement (as amended, the "Credit Agreement"). The Credit Agreement provides for borrowings of up to $100,000 which may be increased by up to $100,000 pursuant to the terms of the Credit Agreement and which is secured by substantially all of our assets and the equity of our subsidiaries. The Credit Agreement expires on August 18, 2019. Revolving loans under the Credit Agreement bear interest at our election of (a) 0.25% to 0.75% above a certain base rate (5.00% at June 30, 2018) or (b) 1.25% to 1.75% above the LIBOR Rate (approximately 2.09% at June 30, 2018), with the margin rate subject to the achievement of certain average liquidity levels. We are also required to pay a monthly fee on the unused available balance, ranging from 0.25% to 0.375% based on availability. We had no outstanding borrowings at June 30, 2018 and March 31, 2018.

Availability under the Credit Agreement is unrestricted when liquidity, as defined in the Credit Agreement, is at least $300,000. When liquidity is below $300,000 availability under the Credit Agreement is restricted by our United States and United Kingdom based accounts receivable and inventory balances. The Credit Agreement also allows for the issuance of letters of credit in an aggregate amount of up to $5,000.

Information related to availability on our Credit Agreement was as follows:



	June 30, 2018		March 31, 2018
Available borrowings	$	98,334	$	98,355
Outstanding letters of credit	1,664		1,664

We recorded interest expense and fees related to the Credit Agreement of $110 and $110, respectively for the three months ended June 30, 2018 and 2017. The Credit Agreement contains covenants that substantially limit us and our subsidiaries' ability to create, incur, assume or be liable for indebtedness; dispose of assets outside the ordinary course of business; acquire, merge or consolidate with or into another person or entity; create, incur or allow any lien on any of their respective properties; make investments; or pay dividends or make distributions (each subject to certain limitations); or optionally prepay any indebtedness (subject to certain exceptions, including an exception permitting the redemption of our unsecured convertible senior notes upon the meeting of certain minimum liquidity requirements). In addition, the Credit Agreement provides for certain events of default such as nonpayment of principal and interest, breaches of representations and warranties, noncompliance with covenants, acts of insolvency, default on indebtedness held by third parties and default on certain material contracts (subject to certain limitations and cure periods). The Credit Agreement also contains a requirement that we maintain an interest coverage ratio of more than one to one for the trailing twelve-month period, if certain average liquidity levels fall below $30,000.

1.00% Convertible Notes Due 2018

On June 18, 2013, we issued $250,000 aggregate principal amount of 1.00% Convertible Notes due 2018. The 1.00% Convertible Notes were issued at 98.5% of par value for proceeds of $246,250. Interest on the 1.00% Convertible Notes was payable semi-annually in arrears on July 1st and January 1st of each year, commencing on January 1, 2014. The 1.00% Convertible Notes matured on July 1, 2018, unless earlier repurchased by the Company or converted. We did not have the right to redeem the 1.00% Convertible Notes prior to maturity. We also granted the underwriters a 30-day option to purchase up to an additional $37,500 principal amount of 1.00% Convertible Notes to cover overallotments, if any. On July 17, 2013, we closed our public offering of $37,500 principal amount of our 1.00% Convertible Notes as a result of the underwriters exercising their overallotment option in full on July 12, 2013, bringing the total proceeds to $283,188.

The 1.00% Convertible Notes were convertible at an initial conversion rate of 46.4727 shares of our common stock per $1 principal amount of 1.00% Convertible Notes (representing an initial conversion price of approximately $21.52 per share of common stock for a total of approximately 13,361 underlying conversion shares) subject to adjustment in certain circumstances.

During the three months ended June 30, 2018, 1.00% Convertible Notes with an aggregate principal amount of $2,931 were settled, and an additional $5,183 were tendered for conversion with July 2018 settlement dates.

Effective April 26, 2018, we elected to settle our remaining conversion obligations in connection with the 1.00% Convertible Notes in shares of our common stock and accordingly notified the Trustee. As such, we have continued to classify these 1.00% Convertible Notes as long-term debt.

As of June 30, 2018 and March 31, 2018, the if-converted value of our 1.00% Convertible Notes exceeded the principal amount of $5,232 and $8,160, respectively by $21,993 and $28,639, respectively.

The following table provides additional information related to our 1.00% Convertible Notes:



	June 30, 2018		March 31, 2018
Additional paid-in capital	$	35,784	$	35,784
Principal amount of 1.00% Convertible Notes	$	5,232	$	8,160
Unamortized discount of the liability component	—		89
Carrying amount of debt issuance costs	—		3
Net carrying amount of 1.00% Convertible Notes	$	5,232	$	8,068

The following table provides the components of interest expense related to our 1.00% Convertible Notes:



	Three Months Ended June 30,
	2018		2017
Cash interest expense (coupon interest expense)	$	1	$	448
Non-cash amortization of discount on 1.00% Convertible Notes	91		5,237
Amortization of debt issuance costs	3		160
Total interest expense related to 1.00% Convertible Notes	$	95	$	5,845

EARNINGS PER SHARE ("EPS")

3 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE ("EPS")

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended June 30,
	2018		2017
Computation of Basic earnings per share:
Net income	$	71,693	$	60,276
Less: net income allocated to participating securities	—		(588		)
Net income for basic earnings per share calculation	$	71,693	$	59,688

Total weighted average shares outstanding—basic	112,941		105,494
Less: weighted average participating shares outstanding	—		(1,029		)
Weighted average common shares outstanding—basic	112,941		104,465

Basic earnings per share	$	0.63	$	0.57

Computation of Diluted earnings per share:
Net income	$	71,693	$	60,276
Less: net income allocated to participating securities	—		(522		)
Add: interest expense, net of tax, on Convertible Notes	95		5,750
Net income for diluted earnings per share calculation	$	71,788	$	65,504

Weighted average common shares outstanding—basic	112,941		105,494
Add: dilutive effect of common stock equivalents	3,044		13,288
Weighted average common shares outstanding—diluted	115,985		118,782
Less: weighted average participating shares outstanding	—		(1,029		)
Weighted average common shares outstanding- diluted	115,985		117,753

Diluted earnings per share	$	0.62	$	0.56

Certain of our unvested stock-based awards (including restricted stock units and time-based and market-based restricted stock awards) are considered participating securities since these securities had non-forfeitable rights to dividends or dividend equivalents during the contractual period of the award and thus requires the two-class method of computing EPS. As of June 30, 2018, we have no material remaining participating securities.

The calculation of EPS for common stock under the two-class method shown above excludes income attributable to the participating securities from the numerator and excludes the dilutive effect of those awards from the denominator.

We define common stock equivalents as stock-based awards and common stock related to the Convertible Notes (see Note 10) outstanding during the period. Common stock equivalents are measured using the treasury stock method, except for the Convertible Notes, which were assessed for their effect on diluted EPS using the more dilutive of the treasury stock method or the if-converted method. Under the provisions of the if-converted method, the Convertible Notes are assumed to be converted and included in the denominator of the EPS calculation and the interest expense, net of tax, recorded in connection with the Convertible Notes is added back to the numerator.

During the three months ended June 30, 2018, 1,537 restricted stock awards vested, we granted 2,080 unvested restricted stock awards, and 34 unvested restricted stock awards were forfeited.

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Jun. 30, 2018

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table provides the components of accumulated other comprehensive loss:



	Three Months Ended June 30, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on forward contracts		Unrealized gain (loss) on cross-currency swap			Unrealized gain (loss) on available-for- sales securities			Total
Balance at March 31, 2018	$	(4,287	)	$	600	$	(10,191	)	$	(1,854	)	$	(15,732	)
Other comprehensive (loss) income before reclassifications	(26,817		)	—		9,585			409			(16,823		)
Amounts reclassified from accumulated other comprehensive loss	—			—		(8,460		)	—			(8,460		)
Balance at June 30, 2018	$	(31,104	)	$	600	$	(9,066	)	$	(1,445	)	$	(41,015	)



	Three Months Ended June 30, 2017
	Foreign currency translation adjustments			Unrealized gain (loss) on derivative instruments		Unrealized gain (loss) on available-for- sales securities			Total
Balance at March 31, 2017	$	(47,666	)	$	600	$	(76	)	$	(47,142	)
Other comprehensive income before reclassifications	9,476			—		84			9,560
Amounts reclassified from accumulated other comprehensive loss	—			—		—			—
Balance at June 30, 2017	$	(38,190	)	$	600	$	8		$	(37,582	)

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES We have entered into various agreements in the ordinary course of business that require substantial cash commitments over the next several years. Other than agreements entered into in the ordinary course of business and in addition to the agreements requiring known cash commitments as reported in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended March 31, 2018, we did not have any significant changes to our commitments since March 31, 2018. Legal and Other Proceedings We are, or may become, subject to demands and claims (including intellectual property claims) and are involved in routine litigation in the ordinary course of business which we do not believe to be material to our business or financial condition or results of operations. We have appropriately accrued amounts related to certain of these claims and legal and other proceedings. While it is reasonably possible that a loss may be incurred in excess of the amounts accrued in our financial statements, we believe that such losses, unless otherwise disclosed, would not be material. On April 11, 2016, we filed a declaratory judgment action in the United States District Court for the Southern District of New York seeking, among other things, a judicial declaration that Leslie Benzies, the former president of one of our subsidiaries with whom we had been in ongoing discussions regarding his separation of employment, is not entitled to any minimum allocation or financial parity with any other person under the applicable royalty plan. We believe we will prevail in this matter, although there can be no assurance of the outcome. On April 12, 2016, Mr. Benzies filed a complaint in the Supreme Court of the State of New York, New York County against us, and certain of our subsidiaries and employees. We removed this case to the United States District Court for the Southern District of New York, but the case was subsequently remanded to state court. The complaint claims damages of at least $150,000 and contains allegations of breach of fiduciary duty; fraudulent inducement and fraudulent concealment; aiding and abetting breach of fiduciary duty; breach of various contracts; breach of implied duty of good faith and fair dealing; tortious interference with contract; unjust enrichment; reformation; constructive trust; declaration of rights; constructive discharge; defamation and fraud. We have asserted counterclaims for breach of contract, theft of trade secrets, and misappropriation. As a result of amended pleadings, motion practice and appeals to date, twelve of Mr. Benzies’ claims have been dismissed, leaving only six remaining claims: breach of various contracts, constructive discharge, breach of implied duty of good faith and fair dealing, and tortious interference with contract. Our federal court action has been stayed pending the conclusion of the state court action. We believe that we have meritorious defenses to the remaining claims, and we intend to vigorously defend against them and to pursue our counterclaims. We have accrued what we believe to be an adequate amount for this matter, which amounts are classified as Business reorganization within Accrued expenses and other current liabilities in our Consolidated Balance Sheets (see Note 9). We do not believe that the ultimate outcome of such litigation, even if in excess of our current accrual, will have a material adverse effect on our business, financial condition or results of operations.

BUSINESS REORGANIZATION	3 Months Ended
BUSINESS REORGANIZATION	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
BUSINESS REORGANIZATION	BUSINESS REORGANIZATION In the first quarter of fiscal 2018, we announced and initiated actions to implement a strategic reorganization at one of our labels (the "2018 Plan"). In connection with this initiative, we recognized a credit to business reorganization expense of $242 during the three months ended June 30, 2018 due to a true-up of estimates for employee separation costs. Through June 30, 2018, we paid $4,905 related to these reorganization activities. As of June 30, 2018, $993 remained accrued for in Accrued expenses and other current liabilities and $4,708 in Other non-current liabilities. Although we may record additional expense or benefit in future periods to true-up estimates, we do not expect to incur additional reorganization costs in connection with the 2018 Plan.

INCOME TAXES	3 Months Ended
INCOME TAXES	Jun. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES On December 22, 2017, the United States (“U.S.”) enacted comprehensive tax legislation commonly referred to as the "Tax Cuts and Jobs Act” (herein referred to as the "Act”). The Act makes broad and complex changes to the U.S. tax code, which could materially affect us. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, effective January 1, 2018 and requires companies to pay a one-time transition tax on the previously untaxed earnings of certain foreign subsidiaries. In addition, the Act makes other changes that may affect us. These changes include but are not limited to (1) a Base Erosion Anti-abuse Tax (BEAT), which is a new minimum tax, (2) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries, (3) a new provision that taxes global intangible low-taxed income (GILTI), (4) the repeal of the domestic production activity deduction, and (5) other base broadening provisions. The SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act ("SAB 118"), which provides guidance on accounting for the Act’s impact. SAB 118 provides a measurement period, which should not extend beyond one year from the Act enactment date, during which a company acting in good faith may complete the accounting for the impact of the Act under ASC 740. In accordance with SAB 118, the income tax effects of the Act must be reflected in the reporting period in which the accounting under ASC Topic 740 is complete. To the extent the accounting for certain income tax effects of the Act is incomplete, we can determine a reasonable estimate for those effects and record a provisional estimate. We continue to evaluate the potential impact of the Act, and the amounts recorded in the fiscal year ended March 31, 2018 represented provisional estimates for certain identified income tax effects, for which the accounting is incomplete but a reasonable estimate was determined. Additional information and further analysis is required to determine the untaxed earnings of certain foreign subsidiaries and to evaluate the complexities of the new tax law along with additional interpretative guidance that may be issued. The impact of the Act may differ from these estimates, possibly materially, due to changes in interpretations and assumptions we have made, guidance that may be issued and actions we may take as a result of the Act. We expect to continue to analyze the Act and its impacts and record any adjustments to provisional estimates no later than the third quarter of the fiscal year ending March 31, 2019. We continue to review whether the Act will affect our existing intention to indefinitely reinvest earnings of our foreign subsidiaries and therefore have not recorded any tax liabilities associated with the repatriation of foreign earnings. The Act subjects a U.S. shareholder to current tax on GILTI earned by foreign subsidiaries. The FASB Staff Q&A Topic No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election either to recognize deferred taxes for temporary differences that are expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. We have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. We have estimated the effect in our estimated annual effective rate based on current tax guidance. The actual tax expense we record for GILTI may differ from this estimate. The provision from income taxes for the three months ended June 30, 2018 is based on our projected annual effective tax rate for fiscal year 2018, adjusted for specific items that are required to be recognized in the period in which they are incurred. The provision for income taxes was $5,754 for the three months ended June 30, 2018 as compared to a benefit from income taxes of $12,865 for the prior year period. When compared to the statutory rate of 21%, the effective tax rate of 7.4% for the three months ended June 30, 2018 was primarily due to a tax benefit of $6,618 as a result of tax credits anticipated to be utilized, net tax benefit of $5,543 for excess tax benefits from employee stock compensation, and a tax benefit of $5,500 as a result of changes in our valuation allowance relating to temporary items and tax carryforwards anticipated to be utilized, partially offset by tax provision of $3,399 due to the geographic mix of earnings. To a lesser extent, our rate was also affected by the Act due to a net tax provision of $2,391. We anticipate that additional excess tax benefits from employee stock compensation, tax credits, changes in valuation allowance, and changes as a result of the Act may arise in future periods, which could have a significant impact on our effective tax rate. The accounting for share-based compensation will increase or decrease our effective tax rate based upon the difference between our share-based compensation expense and the deductions taken on our tax return, which depends upon the stock price at the time of the employee award vesting. Because we recognize excess tax benefits on a discrete basis, we anticipate that our effective tax rate will vary from quarter to quarter depending on our stock price in each period. On June 21, 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, which overturned previous case law that precluded states from requiring retailers to collect and remit sales and use tax collection on sales made to in-state customers unless the retailer had physical presence in the state. Although this case is limited to sales tax collection obligations, we continue to monitor the potential impact of this decision on our state income tax footprint. We are regularly examined by domestic and foreign taxing authorities. Examinations may result in tax assessments in excess of amounts claimed and the payment of additional taxes. We believe our tax positions comply with applicable tax law, and that we have adequately provided for reasonably foreseeable tax assessments. It is possible that settlement of audits or the expiration of the statute of limitations may have an impact on our effective tax rate in future periods.

SHARE REPURCHASE	3 Months Ended
SHARE REPURCHASE	Jun. 30, 2018
Equity [Abstract]
SHARE REPURCHASE	SHARE REPURCHASE Our Board of Directors has authorized the repurchase of up to 14,218 shares of our common stock. Under this program, we may purchase shares from time to time through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. Repurchases are subject to the availability of stock, prevailing market conditions, the trading price of the stock, the Company's financial performance and other conditions. The program does not require us to repurchase shares and may be suspended or discontinued at any time for any reason. During the three months ended June 30, 2018, we repurchased 1,597 shares of our common stock in the open market for $153,515, including commissions of $16, as part of the program. We have repurchased a total of 8,281 shares of our common stock under the program, and, as of June 30, 2018, 5,937 shares of our common stock remain available for repurchase under the share repurchase program. All of the repurchased shares are classified as Treasury stock in our Condensed Consolidated Balance Sheets.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Basis of Presentation

Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation.

Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Accounting for Restricted Cash

Accounting for Stock Compensation

Accounting for Goodwill

Revenue from Contracts with Customers

Impact of Adopting New Revenue Accounting Standard

The most significant impacts of adopting the New Revenue Accounting Standard are:

•


•	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 Standard, certain contracts with customers for which we have recognized revenue to the extent it is probable that a significant reversal will not occur but do not have a right to invoice as of the reporting date. Contract assets are classified within Prepaid expenses and other on the Condensed Consolidated Balance Sheet.


•	The classification of allowances for estimated price protection, reserves for returns and other allowances as refund liabilities. Such allowances were previously recorded as contra-Accounts receivable and now are classified within Accrued expenses and other current liabilities on the Consolidated Balance Sheet.



	March 31, 2018			Adjustments			April 1, 2018
ASSETS
Accounts receivable, net	$	247,649		$	53,940		$	301,589
Software development costs and licenses	33,284			(11,096		)	22,188
Deferred cost of goods sold	117,851			(89,867		)	27,984
Prepaid expenses and other	133,454			33,620			167,074
Deferred cost of goods sold, net of current portion	26,719			(25,687		)	1,032
Other assets	56,887			51,430			108,317

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	914,748		$	69,678		$	984,426
Deferred revenue	777,152			(230,144		)	547,008
Non-current deferred revenue	355,589			(336,456		)	19,133
Other long-term liabilities	158,285			34,336			192,621
Retained earnings	73,516			470,273			543,789
Accumulated other comprehensive loss	(15,732		)	4,653			(11,079		)

Recently Issued Accounting Pronouncements

Accounting for Leases

Revenue Recognition

We determine revenue recognition by:


•	identifying the contract, or contracts, with the customer;


•	identifying the performance obligations in the contract;


•	determining the transaction price;


•	allocating the transaction price to performance obligations in the contract; and


•	recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.

Contract Balances

Our allowance for doubtful accounts are typically immaterial and, if required, are based on our best estimate of probable losses inherent in our accounts receivable balance.

Refer to Note 2 - Revenue from Contracts with Customers for further information, including changes in deferred revenue during the period.

Principal Agent Considerations


•	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.

Shipping and Handling

Estimated Service Period

Revenue Arrangements with Multiple Performance Obligations

Price Protection and Allowances for Returns

Sales Incentives

Significant Estimates

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles



	March 31, 2018			Adjustments			April 1, 2018
ASSETS
Accounts receivable, net	$	247,649		$	53,940		$	301,589
Software development costs and licenses	33,284			(11,096		)	22,188
Deferred cost of goods sold	117,851			(89,867		)	27,984
Prepaid expenses and other	133,454			33,620			167,074
Deferred cost of goods sold, net of current portion	26,719			(25,687		)	1,032
Other assets	56,887			51,430			108,317

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	914,748		$	69,678		$	984,426
Deferred revenue	777,152			(230,144		)	547,008
Non-current deferred revenue	355,589			(336,456		)	19,133
Other long-term liabilities	158,285			34,336			192,621
Retained earnings	73,516			470,273			543,789
Accumulated other comprehensive loss	(15,732		)	4,653			(11,079		)

Adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the three months ended June 30, 2018:



	Amounts as reported			Amounts without adoption of New Revenue Accounting Standard			Increase (decrease) due to adoption of New Revenue Accounting Standard
Net revenue	387,982			401,981			(13,999	)
Cost of goods sold	131,365			157,089			(25,724	)
Gross profit	256,617			244,892			11,725
General and administrative	67,735			67,735			—
Selling and marketing	58,306			58,306			—
Research and development	50,712			50,712			—
Business reorganization	(242		)	(242		)	—
Depreciation and amortization	9,260			9,260			—
Total operating expenses	185,771			185,771			—
Income from operations	70,846			59,121			11,725
Interest and other, net	6,601			6,013			588
Income before income taxes	77,447			65,134			12,313
Provision for (benefit from) income taxes	5,754			(1,970		)	7,724
Net income	71,693			67,104			4,589
Earnings per share:
Basic earnings per share	$	0.63		$	0.59
Diluted earnings per share	$	0.62		$	0.58

Adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Balance Sheet as of June 30, 2018:



	Amounts as reported			Amounts without adoption of New Revenue Accounting Standard			Increase (decrease) due to adoption of New Revenue Accounting Standard
ASSETS
Accounts receivable, net	$	239,736		$	197,465		$	42,271
Software development costs and licenses	12,676			17,571			(4,895		)
Deferred cost of goods sold	19,141			83,632			(64,491		)
Prepaid expenses and other	180,512			121,359			59,153
Deferred cost of goods sold, net of current portion	736			19,414			(18,678		)
Other assets	75,917			59,696			16,221

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	906,881		$	854,006		$	52,875
Deferred revenue	450,568			703,172			(252,604		)
Non-current deferred revenue	15,861			296,541			(280,680		)
Other long-term liabilities	191,490			155,111			36,379
Retained earnings	615,482			140,620			474,862
Accumulated other comprehensive loss	(41,015		)	(39,764		)	(1,251		)

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

3 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles



	March 31, 2018			Adjustments			April 1, 2018
ASSETS
Accounts receivable, net	$	247,649		$	53,940		$	301,589
Software development costs and licenses	33,284			(11,096		)	22,188
Deferred cost of goods sold	117,851			(89,867		)	27,984
Prepaid expenses and other	133,454			33,620			167,074
Deferred cost of goods sold, net of current portion	26,719			(25,687		)	1,032
Other assets	56,887			51,430			108,317

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	914,748		$	69,678		$	984,426
Deferred revenue	777,152			(230,144		)	547,008
Non-current deferred revenue	355,589			(336,456		)	19,133
Other long-term liabilities	158,285			34,336			192,621
Retained earnings	73,516			470,273			543,789
Accumulated other comprehensive loss	(15,732		)	4,653			(11,079		)

Adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Statement of Operations for the three months ended June 30, 2018:



	Amounts as reported			Amounts without adoption of New Revenue Accounting Standard			Increase (decrease) due to adoption of New Revenue Accounting Standard
Net revenue	387,982			401,981			(13,999	)
Cost of goods sold	131,365			157,089			(25,724	)
Gross profit	256,617			244,892			11,725
General and administrative	67,735			67,735			—
Selling and marketing	58,306			58,306			—
Research and development	50,712			50,712			—
Business reorganization	(242		)	(242		)	—
Depreciation and amortization	9,260			9,260			—
Total operating expenses	185,771			185,771			—
Income from operations	70,846			59,121			11,725
Interest and other, net	6,601			6,013			588
Income before income taxes	77,447			65,134			12,313
Provision for (benefit from) income taxes	5,754			(1,970		)	7,724
Net income	71,693			67,104			4,589
Earnings per share:
Basic earnings per share	$	0.63		$	0.59
Diluted earnings per share	$	0.62		$	0.58

Adoption of the New Revenue Accounting Standard had the following impact on our Condensed Consolidated Balance Sheet as of June 30, 2018:



	Amounts as reported			Amounts without adoption of New Revenue Accounting Standard			Increase (decrease) due to adoption of New Revenue Accounting Standard
ASSETS
Accounts receivable, net	$	239,736		$	197,465		$	42,271
Software development costs and licenses	12,676			17,571			(4,895		)
Deferred cost of goods sold	19,141			83,632			(64,491		)
Prepaid expenses and other	180,512			121,359			59,153
Deferred cost of goods sold, net of current portion	736			19,414			(18,678		)
Other assets	75,917			59,696			16,221

LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities	$	906,881		$	854,006		$	52,875
Deferred revenue	450,568			703,172			(252,604		)
Non-current deferred revenue	15,861			296,541			(280,680		)
Other long-term liabilities	191,490			155,111			36,379
Retained earnings	615,482			140,620			474,862
Accumulated other comprehensive loss	(41,015		)	(39,764		)	(1,251		)

Net revenue by product platform

Net revenue by platform was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
Console	$	294,730
PC and other	93,252
Total net revenue	$	387,982

Net revenue by distribution channel was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
Digital online	$	315,047
Physical retail and other	72,935
Total net revenue	$	387,982

Net revenue by product revenue and service and other was as follows:



		Three Months Ended June 30,
		2018
Net revenue recognized:
Product		78,795
Service and other		309,187
Total net revenue		387,982

Net revenue by full game and other revenue and recurrent consumer spending was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
Recurrent consumer spending	241,030
Full game and other	$	146,952
Total net revenue	$	387,982

Net revenue by geographic region

We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows:



	Three Months Ended June 30,
	2018
Net revenue recognized:
United States	$	221,411
International	166,571
Total net revenue	$	387,982

MANAGEMENT AGREEMENT (Tables)

3 Months Ended

Jun. 30, 2018

MANAGEMENT AGREEMENT

Schedule of restricted stock units granted

In connection with the 2017 Management Agreement and 2014 Management Agreement, we have granted restricted stock units as follows:



	Three Months Ended June 30,
	2018	2017
Time-based	86	66
Market-based(1)	79	122
Performance-based(1)
New IP	—	21
Major IP	—	20
IP	27	—
Recurrent Consumer Spending ("RCS")	26	—
Total—Performance-based	53	41
Total Restricted Stock Units	218	229

_______________________________________________________________________________


(1)	Represents the maximum number of shares eligible to vest.

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Segregation of all assets and liabilities measured at fair value on a recurring basis



	June 30, 2018			Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)			Significant unobservable inputs (level 3)		Balance Sheet Classification
Money market funds	$	275,025		$	275,025	$	—		$	—	Cash and cash equivalents
Bank-time deposits	20			20					—		Cash and cash equivalents
Commercial paper	25,338					25,338			—		Cash and cash equivalents
Money market funds	506,834			506,834		—			—		Restricted cash
Corporate bonds	320,643					320,643			—		Short-term investments
US Treasuries	59,799			59,799		—			—		Short-term investments
Commercial paper	5,990			—		5,990			—		Short-term investments
Mutual funds	4,521					4,521			—		Short-term investments
Bank-time deposits	246,503			246,503		—			—		Short-term investments
Foreign currency forward contracts	17			—		17			—		Prepaid expenses and other
Private equity	1,823			—		—			1,823		Other assets
Foreign currency forward contracts	(140		)	—		(140		)	—		Accrued expenses and other current liabilities
Cross-currency swap	(6,207		)	—		(6,207		)	—		Accrued expenses and other current liabilities
Total recurring fair value measurements, net	$	1,440,166		$	1,088,181	$	350,162		$	1,823



	March 31, 2018			Quoted prices in active markets for identical assets (level 1)		Significant other observable inputs (level 2)			Significant unobservable inputs (level 3)		Balance Sheet Classification
Money market funds	$	516,626		$	516,626	$	—		$	—	Cash and cash equivalents
Bank-time deposits	21			21		—			—		Cash and cash equivalents
Commercial paper	10,796			—		10,796			—		Cash and cash equivalents
Corporate bonds	308,716			—		308,716			—		Short-term investments
US Treasuries	59,725			59,725		—			—		Short-term investments
Commercial paper	25,422			—		25,422			—		Short-term investments
Mutual funds	4,880			—		4,880			—		Short-term investments
Bank-time deposits	216,663			216,663		—			—		Short-term investments
Foreign currency forward contracts	12			—		12			—		Prepaid expenses and other
Private equity	1,205			—		—			1,205		Other assets
Foreign currency forward contracts	(43		)			(43		)			Accrued expenses and other current liabilities
Cross-currency swap	(15,659		)			(15,659		)			Accrued expenses and other current liabilities
Total recurring fair value measurements, net	$	1,128,364		$	793,035	$	334,124		$	1,205

SHORT-TERM INVESTMENTS (Tables)

3 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of short-term investments

Our short-term investments consisted of the following:



	June 30, 2018
			Gross Unrealized
	Cost or Amortized Cost		Gains		Losses			Fair Value
Short-term investments
Bank time deposits	$	246,503	$	—	$	—		$	246,503
Available-for-sale securities:
Corporate bonds	321,860		28		(1,245		)	320,643
US Treasuries	60,044		—		(245		)	59,799
Commercial paper	5,990		—		—			5,990
Mutual funds	4,558		7		(44		)	4,521
Total short-term investments	$	638,955	$	35	$	(1,534	)	$	637,456



	March 31, 2018
			Gross Unrealized
	Cost or Amortized Cost		Gains		Losses			Fair Value
Short-term investments
Bank time deposits	$	216,663	$	—	$	—		$	216,663
Available-for-sale securities:
Corporate bonds	310,387		16		(1,687		)	308,716
US Treasuries	59,970		—		(245		)	59,725
Commercial paper	25,422		—		—			25,422
Mutual funds	4,876		16		(12		)	4,880
Total short-term investments	$	617,318	$	32	$	(1,944	)	$	615,406

Summary of the contracted maturities of short-term investments

The following table summarizes the contracted maturities of our short-term investments at June 30, 2018:



	June 30, 2018
	Amortized Cost		Fair Value
Short-term investments
Due in 1 year or less	$	555,536	$	554,449
Due in 1 - 2 years	83,419		83,007
Total short-term investments	$	638,955	$	637,456

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of gross notional amounts of foreign currency forward contracts

The following table shows the gross notional amounts of foreign currency forward contracts:



	June 30, 2018		March 31, 2018
Forward contracts to sell foreign currencies	$	50,794	$	67,580
Forward contracts to purchase foreign currencies	42,822		4,359

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
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+ Details

INVENTORY (Tables)

3 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Inventory balances by category

Inventory balances by category were as follows:



	June 30, 2018		March 31, 2018
Finished products	$	9,362	$	13,940
Parts and supplies	1,280		1,222
Inventory	$	10,642	$	15,162

SOFTWARE DEVELOPMENT COSTS AND LICENSES (Tables)

3 Months Ended

Jun. 30, 2018

SOFTWARE DEVELOPMENT COSTS AND LICENSES

Schedule of capitalized software development costs and licenses

Details of our capitalized software development costs and licenses were as follows:



	June 30, 2018				March 31, 2018
	Current		Non-current		Current		Non-current
Software development costs, internally developed	$	5,219	$	581,872	$	19,338	$	515,761
Software development costs, externally developed	1,097		135,566		4,275		122,270
Licenses	6,360		2,432		9,671		1,338
Software development costs and licenses	$	12,676	$	719,870	$	33,284	$	639,369

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

3 Months Ended

Jun. 30, 2018

Liabilities, Current [Abstract]

Schedule of components of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:



	June 30, 2018		March 31, 2018

Software development royalties	$	632,133	$	600,512
Business reorganization (see Notes 13 and 14)	66,928		72,074
Compensation and benefits	48,782		57,499
Refund liability	42,270		—
Licenses	31,032		43,261
Marketing and promotions	17,414		19,731
Deferred acquisition payments	—		25,000
Other	68,322		96,671
Accrued expenses and other current liabilities	$	906,881	$	914,748

DEBT (Tables)

3 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Information related to availability on our Credit Agreement was as follows:



	June 30, 2018		March 31, 2018
Available borrowings	$	98,334	$	98,355
Outstanding letters of credit	1,664		1,664

Convertible Debt

The following table provides additional information related to our 1.00% Convertible Notes:



	June 30, 2018		March 31, 2018
Additional paid-in capital	$	35,784	$	35,784
Principal amount of 1.00% Convertible Notes	$	5,232	$	8,160
Unamortized discount of the liability component	—		89
Carrying amount of debt issuance costs	—		3
Net carrying amount of 1.00% Convertible Notes	$	5,232	$	8,068

Schedule of Components of Interest Expense Related to Convertible Debt

The following table provides the components of interest expense related to our 1.00% Convertible Notes:



	Three Months Ended June 30,
	2018		2017
Cash interest expense (coupon interest expense)	$	1	$	448
Non-cash amortization of discount on 1.00% Convertible Notes	91		5,237
Amortization of debt issuance costs	3		160
Total interest expense related to 1.00% Convertible Notes	$	95	$	5,845

EARNINGS PER SHARE ("EPS") (Tables)

3 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted loss per share

The following table sets forth the computation of basic and diluted earnings per share:



	Three Months Ended June 30,
	2018		2017
Computation of Basic earnings per share:
Net income	$	71,693	$	60,276
Less: net income allocated to participating securities	—		(588		)
Net income for basic earnings per share calculation	$	71,693	$	59,688

Total weighted average shares outstanding—basic	112,941		105,494
Less: weighted average participating shares outstanding	—		(1,029		)
Weighted average common shares outstanding—basic	112,941		104,465

Basic earnings per share	$	0.63	$	0.57

Computation of Diluted earnings per share:
Net income	$	71,693	$	60,276
Less: net income allocated to participating securities	—		(522		)
Add: interest expense, net of tax, on Convertible Notes	95		5,750
Net income for diluted earnings per share calculation	$	71,788	$	65,504

Weighted average common shares outstanding—basic	112,941		105,494
Add: dilutive effect of common stock equivalents	3,044		13,288
Weighted average common shares outstanding—diluted	115,985		118,782
Less: weighted average participating shares outstanding	—		(1,029		)
Weighted average common shares outstanding- diluted	115,985		117,753

Diluted earnings per share	$	0.62	$	0.56

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Jun. 30, 2018

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of components of accumulated other comprehensive loss

The following table provides the components of accumulated other comprehensive loss:



	Three Months Ended June 30, 2018
	Foreign currency translation adjustments			Unrealized gain (loss) on forward contracts		Unrealized gain (loss) on cross-currency swap			Unrealized gain (loss) on available-for- sales securities			Total
Balance at March 31, 2018	$	(4,287	)	$	600	$	(10,191	)	$	(1,854	)	$	(15,732	)
Other comprehensive (loss) income before reclassifications	(26,817		)	—		9,585			409			(16,823		)
Amounts reclassified from accumulated other comprehensive loss	—			—		(8,460		)	—			(8,460		)
Balance at June 30, 2018	$	(31,104	)	$	600	$	(9,066	)	$	(1,445	)	$	(41,015	)



	Three Months Ended June 30, 2017
	Foreign currency translation adjustments			Unrealized gain (loss) on derivative instruments		Unrealized gain (loss) on available-for- sales securities			Total
Balance at March 31, 2017	$	(47,666	)	$	600	$	(76	)	$	(47,142	)
Other comprehensive income before reclassifications	9,476			—		84			9,560
Amounts reclassified from accumulated other comprehensive loss	—			—		—			—
Balance at June 30, 2017	$	(38,190	)	$	600	$	8		$	(37,582	)

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Jun. 30, 2018

USD ($)

label

Jun. 30, 2017

USD ($)

Mar. 31, 2018

USD ($)

Mar. 31, 2017

USD ($)

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Wholly-owned labels | label

Net cash provided by operating activities increase

$ (11,183)

$ 49,890

^[1]

Accounting Standards Update 2016-18

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Net cash provided by operating activities increase

$ 71,982

(68,518)

$ 99,580

$ 76,649

Accounting Standards Update 2014-09

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative effect

$ 470,273

Minimum

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Estimated Service Period

9 months

Maximum

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Estimated Service Period

15 months

[1]	Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-08, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion.

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Balance Sheet) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Apr. 01, 2018	Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 239,736	$ 301,589	$ 247,649
Software development costs and licenses	12,676	22,188	33,284
Deferred cost of goods sold	19,141	27,984	117,851
Prepaid expenses and other	180,512	167,074	133,454
Deferred cost of goods sold, net of current portion	736	1,032	26,719
Other assets	75,917	108,317	56,887
Accrued expenses and other current liabilities	906,881	984,426	914,748
Deferred revenue	450,568	547,008	777,152
Non-current deferred revenue	15,861	19,133	355,589
Other long-term liabilities	191,490	192,621	158,285
Retained earnings	615,482	543,789	73,516
Accumulated other comprehensive loss	$ (41,015)	$ (11,079)	(15,732)
Previously Reported
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net			247,649
Software development costs and licenses			33,284
Deferred cost of goods sold			117,851
Prepaid expenses and other			133,454
Deferred cost of goods sold, net of current portion			26,719
Other assets			56,887
Accrued expenses and other current liabilities			914,748
Deferred revenue			777,152
Non-current deferred revenue			355,589
Other long-term liabilities			158,285
Retained earnings			73,516
Accumulated other comprehensive loss			(15,732)
Accounting Standards Update 2014-09 \| Restatement Adjustment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net			53,940
Software development costs and licenses			(11,096)
Deferred cost of goods sold			(89,867)
Prepaid expenses and other			33,620
Deferred cost of goods sold, net of current portion			(25,687)
Other assets			51,430
Accrued expenses and other current liabilities			69,678
Deferred revenue			(230,144)
Non-current deferred revenue			(336,456)
Other long-term liabilities			34,336
Retained earnings			470,273
Accumulated other comprehensive loss			$ 4,653

REVENUE FROM CONTRACTS WITH CUSTOMERS (Income Statement) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 387,982

$ 418,216

131,365

194,569

256,617

223,647

67,735

60,603

58,306

52,214

50,712

42,269

(242)

10,599

9,260

7,743

185,771

173,428

70,846

50,219

6,601

(2,808)

77,447

47,411

5,754

(12,865)

Basic earnings (loss) per share (in dollars per share)

$ 71,693

$ 60,276

^[1]

$ 0.63

$ 0.57

Diluted earnings (loss) per share (in dollars per share)

$ 0.62

$ 0.56

Amounts without adoption of New Revenue Accounting Standard

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ 401,981

157,089

244,892

67,735

58,306

50,712

(242)

9,260

185,771

59,121

6,013

65,134

(1,970)

Basic earnings (loss) per share (in dollars per share)

$ 67,104

$ 0.59

Diluted earnings (loss) per share (in dollars per share)

$ 0.58

Increase (decrease) due to adoption of New Revenue Accounting Standard | Accounting Standards Update 2014-09

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

$ (13,999)

(25,724)

11,725

11,725

588

12,313

7,724

Non-cash amortization of discount on Convertible Notes

$ 4,589

[1]	Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-08, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion.

REVENUE FROM CONTRACTS WITH CUSTOMERS (Balance Sheet) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Apr. 01, 2018	Mar. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 239,736	$ 301,589	$ 247,649
Software development costs and licenses	12,676	22,188	33,284
Deferred cost of goods sold	19,141	27,984	117,851
Prepaid expenses and other	180,512	167,074	133,454
Deferred cost of goods sold, net of current portion	736	1,032	26,719
Other assets	75,917	108,317	56,887
Accrued expenses and other current liabilities	906,881	984,426	914,748
Deferred revenue	450,568	547,008	777,152
Non-current deferred revenue	15,861	19,133	355,589
Other long-term liabilities	191,490	192,621	158,285
Retained earnings	615,482	543,789	73,516
Accumulated other comprehensive loss	(41,015)	$ (11,079)	$ (15,732)
Amounts without adoption of New Revenue Accounting Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	197,465
Software development costs and licenses	17,571
Deferred cost of goods sold	83,632
Prepaid expenses and other	121,359
Deferred cost of goods sold, net of current portion	19,414
Other assets	59,696
Accrued expenses and other current liabilities	854,006
Deferred revenue	703,172
Non-current deferred revenue	296,541
Other long-term liabilities	155,111
Retained earnings	140,620
Accumulated other comprehensive loss	(39,764)
Increase (decrease) due to adoption of New Revenue Accounting Standard \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	42,271
Software development costs and licenses	(4,895)
Deferred cost of goods sold	(64,491)
Prepaid expenses and other	59,153
Deferred cost of goods sold, net of current portion	(18,678)
Other assets	16,221
Accrued expenses and other current liabilities	52,875
Deferred revenue	(252,604)
Non-current deferred revenue	(280,680)
Other long-term liabilities	36,379
Retained earnings	474,862
Accumulated other comprehensive loss	$ (1,251)

REVENUE FROM CONTRACTS WITH CUSTOMERS (Disaggregated Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Revenue from External Customer [Line Items]
Total net revenue	$ 387,982	$ 418,216
Product
Revenue from External Customer [Line Items]
Total net revenue	78,795
Service and other
Revenue from External Customer [Line Items]
Total net revenue	309,187
Recurrent consumer spending
Revenue from External Customer [Line Items]
Total net revenue	241,030
Full game and other
Revenue from External Customer [Line Items]
Total net revenue	146,952
Console
Revenue from External Customer [Line Items]
Total net revenue	294,730
PC and other
Revenue from External Customer [Line Items]
Total net revenue	93,252
Digital online
Revenue from External Customer [Line Items]
Total net revenue	315,047
Physical retail and other
Revenue from External Customer [Line Items]
Total net revenue	$ 72,935

REVENUE FROM CONTRACTS WITH CUSTOMERS (Geographical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Total net revenue	$ 387,982	$ 418,216
United States
Disaggregation of Revenue [Line Items]
Total net revenue	221,411
International
Disaggregation of Revenue [Line Items]
Total net revenue	$ 166,571

REVENUE FROM CONTRACTS WITH CUSTOMERS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Apr. 01, 2018
Revenue from Contract with Customer [Abstract]
Contract with liability	$ 466,429	$ 566,141
Contract with liability recognized	240,485
Contract asset	66,668	$ 69,522
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining obligation	$ 466,429
Remaining obligation period	1 year

MANAGEMENT AGREEMENT (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended		3 Months Ended
	Nov. 30, 2017	Mar. 31, 2014	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018
Restricted stock units
Management Agreement
Stock-based compensation expense for non-employee awards			$ 4,517	$ 6,014
2017 Management Agreement \| Restricted stock units \| Maximum
Management Agreement
Vesting requirement for market-based restricted stock			75th
2017 Management Agreement \| Restricted stock awards
Management Agreement
Vested (in shares)			340
Forfeited (in shares)			33
Zelnick Media Corporation
Management Agreement
Consulting expense benefit			$ 1,705	$ 1,337
Zelnick Media Corporation \| 2014 Management Agreement
Management Agreement
Annual management fee		$ 2,970
Zelnick Media Corporation \| 2014 Management Agreement \| Maximum
Management Agreement
Bonus per fiscal year based on the achievement of certain performance thresholds		$ 4,752
Zelnick Media Corporation \| 2014 Management Agreement \| Time-based restricted units
Management Agreement
Granted (in shares)			86	66
Zelnick Media Corporation \| 2014 Management Agreement \| Market-based restricted units
Management Agreement
Granted (in shares)			79	122
Zelnick Media Corporation \| 2014 Management Agreement \| Performance-based restricted units
Management Agreement
Granted (in shares)			53	41
Zelnick Media Corporation \| 2014 Management Agreement \| New IP
Management Agreement
Granted (in shares)			0	21
Zelnick Media Corporation \| 2014 Management Agreement \| Major IP
Management Agreement
Granted (in shares)			0	20
Zelnick Media Corporation \| 2014 Management Agreement \| IP
Management Agreement
Granted (in shares)			27
Zelnick Media Corporation \| 2014 Management Agreement \| Recurrent Consumer Spending (RCS)
Management Agreement
Granted (in shares)			26
Zelnick Media Corporation \| 2014 Management Agreement \| Restricted stock units
Management Agreement
Granted (in shares)			218	229
Zelnick Media Corporation \| 2017 Management Agreement
Management Agreement
Annual management fee	$ 3,100
Zelnick Media Corporation \| 2017 Management Agreement \| Maximum
Management Agreement
Bonus per fiscal year based on the achievement of certain performance thresholds	$ 7,440
Zelnick Media Corporation \| 2017 Management Agreement \| Market-based restricted stock
Management Agreement
Measurement period			2 years
Percentage of grants earned			50.00%
Vesting requirement for market-based restricted stock			50th
Zelnick Media Corporation \| 2017 Management Agreement \| Performance-based restricted units
Management Agreement
Measurement period			2 years
Percentage of grants earned			50.00%
Zelnick Media Corporation \| 2017 Management Agreement \| New IP
Management Agreement
Percentage of grants earned			50.00%
Zelnick Media Corporation \| 2017 Management Agreement \| Major IP
Management Agreement
Percentage of grants earned			50.00%
Zelnick Media Corporation \| 2017 Management Agreement \| Restricted stock units
Management Agreement
Unvested portion of the shares of restricted stock granted			434		602

FAIR VALUE MEASUREMENTS - ASSETS MEASURED AT FAIR VALUE (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Assets measured at fair value on a recurring basis
Short-term investments	$ 637,456	$ 615,406
Total recurring fair value measurements, net	1,440,166	1,128,364
Foreign currency forward contracts
Assets measured at fair value on a recurring basis
Prepaid expenses and other	17	12
Foreign currency forward contracts	(140)	(43)
Cross-currency swap
Assets measured at fair value on a recurring basis
Foreign currency forward contracts	(6,207)	(15,659)
Corporate bonds
Assets measured at fair value on a recurring basis
Short-term investments	320,643	308,716
Mutual funds
Assets measured at fair value on a recurring basis
Short-term investments	4,521	4,880
US Treasuries
Assets measured at fair value on a recurring basis
Short-term investments	59,799	59,725
Commercial paper
Assets measured at fair value on a recurring basis
Short-term investments	5,990	25,422
Bank-time deposits
Assets measured at fair value on a recurring basis
Short-term investments	246,503	216,663
Money market funds
Assets measured at fair value on a recurring basis
Cash and cash equivalents	275,025	516,626
Restricted cash	506,834
Bank-time deposits
Assets measured at fair value on a recurring basis
Cash and cash equivalents	20	21
Commercial paper
Assets measured at fair value on a recurring basis
Cash and cash equivalents	25,338	10,796
Quoted prices in active markets for identical assets (level 1)
Assets measured at fair value on a recurring basis
Total recurring fair value measurements, net	1,088,181	793,035
Quoted prices in active markets for identical assets (level 1) \| Foreign currency forward contracts
Assets measured at fair value on a recurring basis
Prepaid expenses and other	0	0
Foreign currency forward contracts	0
Quoted prices in active markets for identical assets (level 1) \| Cross-currency swap
Assets measured at fair value on a recurring basis
Foreign currency forward contracts	0
Quoted prices in active markets for identical assets (level 1) \| Corporate bonds
Assets measured at fair value on a recurring basis
Short-term investments		0
Quoted prices in active markets for identical assets (level 1) \| Mutual funds
Assets measured at fair value on a recurring basis
Short-term investments		0
Quoted prices in active markets for identical assets (level 1) \| US Treasuries
Assets measured at fair value on a recurring basis
Short-term investments	59,799	59,725
Quoted prices in active markets for identical assets (level 1) \| Commercial paper
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Quoted prices in active markets for identical assets (level 1) \| Bank-time deposits
Assets measured at fair value on a recurring basis
Short-term investments	246,503	216,663
Quoted prices in active markets for identical assets (level 1) \| Money market funds
Assets measured at fair value on a recurring basis
Cash and cash equivalents	275,025	516,626
Restricted cash	506,834
Quoted prices in active markets for identical assets (level 1) \| Bank-time deposits
Assets measured at fair value on a recurring basis
Cash and cash equivalents	20	21
Quoted prices in active markets for identical assets (level 1) \| Commercial paper
Assets measured at fair value on a recurring basis
Cash and cash equivalents		0
Significant other observable inputs (level 2)
Assets measured at fair value on a recurring basis
Total recurring fair value measurements, net	350,162	334,124
Significant other observable inputs (level 2) \| Foreign currency forward contracts
Assets measured at fair value on a recurring basis
Prepaid expenses and other	17	12
Foreign currency forward contracts	(140)	(43)
Significant other observable inputs (level 2) \| Cross-currency swap
Assets measured at fair value on a recurring basis
Foreign currency forward contracts	(6,207)	(15,659)
Significant other observable inputs (level 2) \| Corporate bonds
Assets measured at fair value on a recurring basis
Short-term investments	320,643	308,716
Significant other observable inputs (level 2) \| Mutual funds
Assets measured at fair value on a recurring basis
Short-term investments	4,521	4,880
Significant other observable inputs (level 2) \| US Treasuries
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant other observable inputs (level 2) \| Commercial paper
Assets measured at fair value on a recurring basis
Short-term investments	5,990	25,422
Significant other observable inputs (level 2) \| Bank-time deposits
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant other observable inputs (level 2) \| Money market funds
Assets measured at fair value on a recurring basis
Cash and cash equivalents	0	0
Restricted cash	0
Significant other observable inputs (level 2) \| Bank-time deposits
Assets measured at fair value on a recurring basis
Cash and cash equivalents		0
Significant other observable inputs (level 2) \| Commercial paper
Assets measured at fair value on a recurring basis
Cash and cash equivalents	25,338	10,796
Significant unobservable inputs (level 3)
Assets measured at fair value on a recurring basis
Total recurring fair value measurements, net	1,823	1,205
Significant unobservable inputs (level 3) \| Foreign currency forward contracts
Assets measured at fair value on a recurring basis
Prepaid expenses and other	0	0
Foreign currency forward contracts	0
Significant unobservable inputs (level 3) \| Cross-currency swap
Assets measured at fair value on a recurring basis
Foreign currency forward contracts	0
Significant unobservable inputs (level 3) \| Corporate bonds
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant unobservable inputs (level 3) \| Mutual funds
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant unobservable inputs (level 3) \| US Treasuries
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant unobservable inputs (level 3) \| Commercial paper
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant unobservable inputs (level 3) \| Bank-time deposits
Assets measured at fair value on a recurring basis
Short-term investments	0	0
Significant unobservable inputs (level 3) \| Money market funds
Assets measured at fair value on a recurring basis
Cash and cash equivalents	0	0
Restricted cash	0
Significant unobservable inputs (level 3) \| Bank-time deposits
Assets measured at fair value on a recurring basis
Cash and cash equivalents	0	0
Significant unobservable inputs (level 3) \| Commercial paper
Assets measured at fair value on a recurring basis
Cash and cash equivalents	0	0
Other assets
Assets measured at fair value on a recurring basis
Private equity	1,823	1,205
Other assets \| Quoted prices in active markets for identical assets (level 1)
Assets measured at fair value on a recurring basis
Private equity	0	0
Other assets \| Significant other observable inputs (level 2)
Assets measured at fair value on a recurring basis
Private equity	0	0
Other assets \| Significant unobservable inputs (level 3)
Assets measured at fair value on a recurring basis
Private equity	$ 1,823	$ 1,205

FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - 1.00% Convertible Notes due 2018 $ in Thousands	Jun. 30, 2018 USD ($)
Debt Instrument [Line Items]
Interest rate	1.00%
Estimated fair value of convertible notes	$ 27,225

SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	$ 638,955	$ 617,318
Gross Unrealized Gain	35	32
Gross Unrealized Loss	(1,534)	(1,944)
Fair Value	637,456	615,406
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract]
Amortized cost, Due in 1 year or less	555,536
Amortized cost, Due in 1-2 years	83,419
Total amortized cost	638,955
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Fair value, Due in 1 year or less	554,449
Fair value, Due in 1-2 years	83,007
Total fair value	637,456
Bank-time deposits
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	246,503	216,663
Gross Unrealized Gain	0	0
Gross Unrealized Loss	0	0
Fair Value	246,503	216,663
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	321,860	310,387
Gross Unrealized Gain	28	16
Gross Unrealized Loss	(1,245)	(1,687)
Fair Value	320,643	308,716
US Treasuries
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	60,044	59,970
Gross Unrealized Gain	0	0
Gross Unrealized Loss	(245)	(245)
Fair Value	59,799	59,725
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	5,990	25,422
Gross Unrealized Gain	0	0
Gross Unrealized Loss	0	0
Fair Value	5,990	25,422
Mutual funds
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	4,558	4,876
Gross Unrealized Gain	7	16
Gross Unrealized Loss	(44)	(12)
Fair Value	$ 4,521	$ 4,880

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018
Derivative [Line Items]
Forward contracts to sell foreign currencies	$ 50,794		$ 67,580
Forward contracts to purchase foreign currencies	42,822		$ 4,359
Derivative instrument not designated as hedging instruments, gain (loss), net	(2,404)	$ (8,603)
Cash Flow Hedging \| Foreign currency forward contracts
Derivative [Line Items]
Derivative, notional amount	$ 129,000

INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018
Inventory Disclosure [Abstract]
Finished products	$ 9,362	$ 13,940
Parts and supplies	1,280	1,222
Inventory	10,642	15,162
Estimated product returns included in inventory	$ 277	$ 373

SOFTWARE DEVELOPMENT COSTS AND LICENSES (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Apr. 01, 2018	Mar. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Software development costs and licenses, Current	$ 12,676		$ 22,188	$ 33,284
Software development costs and licenses, Non-current	719,870			639,369
Software development impairment charges	0	$ 684
Software development costs, internally developed
Finite-Lived Intangible Assets [Line Items]
Software development costs and licenses, Current	5,219			19,338
Software development costs and licenses, Non-current	581,872			515,761
Software development costs, externally developed
Finite-Lived Intangible Assets [Line Items]
Software development costs and licenses, Current	1,097			4,275
Software development costs and licenses, Non-current	135,566			122,270
Licenses
Finite-Lived Intangible Assets [Line Items]
Software development costs and licenses, Current	6,360			9,671
Software development costs and licenses, Non-current	$ 2,432			$ 1,338

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Apr. 01, 2018	Mar. 31, 2018
Liabilities, Current [Abstract]
Software development royalties	$ 632,133		$ 600,512
Business reorganization (see Notes 13 and 14)	66,928		72,074
Compensation and benefits	48,782		57,499
Refund liability	42,270		0
Licenses	31,032		43,261
Marketing and promotions	17,414		19,731
Deferred acquisition payments	0		25,000
Other	68,322		96,671
Accrued expenses and other current liabilities	$ 906,881	$ 984,426	$ 914,748

DEBT - CREDIT AGREEMENT (Details)	1 Months Ended		3 Months Ended
DEBT - CREDIT AGREEMENT (Details)	Dec. 31, 2017 USD ($)	Apr. 30, 2016 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2018 USD ($)
Credit Agreement
Credit Agreement
Maximum borrowing capacity			$ 100,000,000
Amount of additional borrowings by which maximum borrowing capacity may be increased	$ 100,000,000
Outstanding borrowings			0		$ 0
Credit Agreement Availability
Minimum liquidity level allowing unrestricted access to the Credit Agreement	$ 300,000,000
Available borrowings			98,334,000		98,355,000
Outstanding letters of credit			1,664,000		$ 1,664,000
Interest expense and fees			$ 110,000	$ 110,000
Trailing period for measurement of interest coverage ratio		12 months
Maximum liquidity level triggering the requirement to maintain an interest coverage ratio of one to one		$ 30,000,000
Credit Agreement \| Minimum
Credit Agreement
Monthly fee on unused available balance (as a percent)	0.25%
Credit Agreement Availability
Interest coverage ratio		1
Credit Agreement \| Maximum
Credit Agreement
Monthly fee on unused available balance (as a percent)	0.375%
Credit Agreement \| Base rate
Credit Agreement
Interest rate, variable rate basis	base rate
Interest rate at end of period			5.00%
Credit Agreement \| Base rate \| Minimum
Credit Agreement
Interest rate added to base rate	0.25%
Credit Agreement \| Base rate \| Maximum
Credit Agreement
Interest rate added to base rate	0.75%
Credit Agreement \| LIBOR
Credit Agreement
Interest rate, variable rate basis	LIBOR
Interest rate at end of period			2.09%
Credit Agreement \| LIBOR \| Minimum
Credit Agreement
Interest rate added to base rate	1.25%
Credit Agreement \| LIBOR \| Maximum
Credit Agreement
Interest rate added to base rate	1.75%
Letter of Credit
Credit Agreement
Maximum borrowing capacity			$ 5,000,000

DEBT - 1.00 CONVERTIBLE NOTES (Details) $ / shares in Units, label in Thousands			3 Months Ended		12 Months Ended
	Jul. 17, 2013 USD ($)	Jun. 18, 2013 USD ($) label $ / shares	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)
Convertible Notes
Interest and other, net			$ 6,601,000	$ (2,808,000)
1.00% Convertible Notes due 2018
Convertible Notes
Interest rate			1.00%
Convertible Debt \| 1.00% Convertible Notes due 2018
Convertible Notes
Principal amount at issuance		$ 250,000,000
Interest rate		1.00%
Percentage of par value at which debt was issued		98.50%
Proceeds from issuance of debt	$ 283,188,000	$ 246,250,000
Period of overallotment option to purchase additional amount of debt granted to underwriters		30 days
Amount pertaining to exercise of over-allotment of debt by underwriters	$ 37,500,000
Initial conversion rate of common stock per $1000 of principal amount of Convertible Notes (in shares)		46.4727
Principal amount used for debt instrument conversion ratio		$ 1,000
Initial conversion price of convertible notes into common stock (in dollars per share) \| $ / shares		$ 21.52
Number of shares to be converted into common stock \| label		13,361
Converted instrument amount			$ 2,931,000
Principal amount of Convertible Notes			5,232,000			$ 8,160,000
The value by which Convertible Notes exceed the principal value			21,993,000		$ 28,639,000
Convertible Debt \| 1.00% Convertible Notes due 2018 \| Maximum
Convertible Notes
Additional amount of debt for purchase of which overallotment option is granted to underwriters		$ 37,500,000
Convertible Debt \| July 2018 Settlement
Convertible Notes
Converted instrument amount			$ 5,183,000

DEBT - CONVERTIBLE DEBT INFORMATION (Details) - 1.00% Convertible Notes due 2018 - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Jun. 18, 2013
Debt Instrument [Line Items]
Interest rate	1.00%
Convertible Debt
Debt Instrument [Line Items]
Interest rate			1.00%
Additional paid-in capital	$ 35,784	$ 35,784
Principal amount of Convertible Notes	5,232	8,160
Unamortized discount of the liability component	0	89
Carrying amount of debt issuance costs	0	3
Net carrying amount of Convertible Notes	$ 5,232	$ 8,068

DEBT - INTEREST EXPENSE COMPONENTS (Details) - USD ($)
$ in Thousands

3 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 18, 2013

Debt Instrument [Line Items]

$ 91

$ 5,237

^[1]

Amortization of debt issuance costs

$ 32

188

^[1]

1.00% Convertible Notes due 2018

Debt Instrument [Line Items]

Interest rate

1.00%

Convertible Debt | 1.00% Convertible Notes due 2018

Debt Instrument [Line Items]

Interest rate

1.00%

Cash interest expense (coupon interest expense)

$ 1

448

Non-cash amortization of discount on Convertible Notes

5,237

Amortization of debt issuance costs

160

Total interest expense related to Convertible Notes

$ 95

$ 5,845

[1]	Prior period amounts have been adjusted retrospectively to reflect the adoption of ASU 2016-08, Statement of Cash Flows (Topic 230): Restricted Cash. Refer to Note 1 for further discussion.

EARNINGS PER SHARE ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Computation of Basic earnings per share:

Less: net income allocated to participating securities

$ 71,693

$ 60,276

^[1]

(588)

Net income for basic earnings per share calculation

$ 71,693

$ 59,688

Total weighted average shares outstanding—basic (in shares)

112,941

105,494

Less: weighted average participating shares outstanding (in shares)

(1,029)

Weighted average common shares outstanding—basic (in shares)

112,941

104,465

Basic earnings (loss) per share (in dollars per share)

$ 0.63

$ 0.57

Earnings Per Share, Diluted [Abstract]