Company Quick10K Filing
⚲
Electronic Arts
Financials
Price95.67 EPS9
Shares297 P/E10
MCap28,414 P/FCF36
Net Debt-2,940 EBIT2,930
TEV25,474 TEV/EBIT9
TTM 2019-09-30, in MM, except price, ratios
Filings
10-Q 2020-09-30 Filed 2020-11-10
10-Q 2020-06-30 Filed 2020-08-10
10-K 2020-03-31 Filed 2020-05-20
10-Q 2019-12-31 Filed 2020-02-04
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-06
10-K 2019-03-31 Filed 2019-05-24
10-Q 2018-12-31 Filed 2019-02-06
10-Q 2018-09-30 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-08
10-K 2018-03-31 Filed 2018-05-23
10-Q 2017-12-31 Filed 2018-02-06
10-Q 2017-09-30 Filed 2017-11-07
10-Q 2017-06-30 Filed 2017-08-08
10-K 2017-03-31 Filed 2017-05-24
10-Q 2016-12-31 Filed 2017-02-07
10-Q 2016-09-30 Filed 2016-11-08
10-Q 2016-06-30 Filed 2016-08-09
10-K 2016-03-31 Filed 2016-05-27
10-Q 2015-12-31 Filed 2016-02-08
10-Q 2015-09-30 Filed 2015-11-10
10-Q 2015-06-30 Filed 2015-08-11
10-K 2015-03-31 Filed 2015-05-21
10-Q 2014-12-31 Filed 2015-02-04
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-08-05
10-K 2014-03-31 Filed 2014-05-21
10-Q 2013-12-31 Filed 2014-02-04
10-Q 2013-09-30 Filed 2013-11-05
10-Q 2013-06-30 Filed 2013-08-02
10-K 2013-03-31 Filed 2013-05-22
10-Q 2012-12-31 Filed 2013-02-05
10-Q 2012-09-30 Filed 2012-11-06
10-K 2012-03-31 Filed 2012-05-25
10-Q 2011-12-31 Filed 2012-02-07
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-09
10-K 2011-03-31 Filed 2011-05-24
10-Q 2010-12-31 Filed 2011-02-07
10-Q 2010-09-30 Filed 2010-11-08
10-Q 2010-06-30 Filed 2010-08-09
10-K 2010-03-31 Filed 2010-05-28
10-Q 2009-12-31 Filed 2010-02-09
Reports
8-K 2020-11-04
8-K 2020-08-05
8-K 2020-07-30
8-K 2020-05-28
8-K 2020-05-07
8-K 2020-05-05
8-K 2020-01-30
8-K 2019-11-05
8-K 2019-10-29
8-K 2019-08-29
8-K 2019-08-19
8-K 2019-08-08
8-K 2019-07-30
8-K 2019-05-28
8-K 2019-05-15
8-K 2019-05-09
8-K 2019-05-07
8-K 2019-02-07
8-K 2019-02-05
8-K 2019-01-28
8-K 2018-10-30
8-K 2018-08-31
8-K 2018-08-30
8-K 2018-08-09
8-K 2018-07-30
8-K 2018-07-26
8-K 2018-05-24
8-K 2018-05-21
8-K 2018-05-16
8-K 2018-05-07
8-K 2018-04-12
8-K 2018-01-30

EA 10Q Quarterly Report

Content
Part I - Financial Information
Item 1.Condensed Consolidated Financial Statements (Unaudited)
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Exhibits
Exhibits
EX-10.1 ex-101xboxconsolepubli.htm
EX-10.2 ex-102playstation5amen.htm
EX-15.1 ex-151awarenessletterofkpm.htm
EX-31.1 ex-311sec302ceocert93020.htm
EX-31.2 ex-312sec302cfocert93020.htm
EX-32.1 ex-321sec906ceocert93020.htm
EX-32.2 ex-322sec906cfocert93020.htm

Electronic Arts Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
151296302012201420172020
Assets, Equity
 1.61.20.80.40.0-0.42012201420172020
Rev, G Profit, Net Income
 1.30.80.4-0.1-0.5-1.02012201420172020
Ops, Inv, Fin
ea-20200930
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☑
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from   to
Commission File No. 000-17948
ELECTRONIC ARTS INC.
(Exact name of registrant as specified in its charter)
Delaware94-2838567
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
209 Redwood Shores Parkway
94065
Redwood CityCalifornia
(Address of principal executive offices)(Zip Code)
(650) 628-1500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class  Trading SymbolName of Each Exchange on Which Registered
Common Stock, $0.01 par value  EANASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☑    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☑    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☑
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange
Act. ☐  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐  No  ☑
As of November 6, 2020, there were 290,077,481 shares of the Registrant’s Common Stock, par value $0.01 per share, outstanding.
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ELECTRONIC ARTS INC.
FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 30, 2020
Table of Contents
 
  Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 6.

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Table of Contents
PART I – FINANCIAL INFORMATION

Item 1.Condensed Consolidated Financial Statements (Unaudited)

ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)
(In millions, except par value data)		September 30, 2020
March 31, 2020 (a)
ASSETS
Current assets:
Cash and cash equivalents$4,059 $3,768 
Short-term investments1,972 1,967 
Receivables, net 423 461 
Other current assets376 321 
Total current assets6,830 6,517 
Property and equipment, net458 449 
Goodwill1,891 1,885 
Acquisition-related intangibles, net42 53 
Deferred income taxes, net1,937 1,903 
Other assets312 305 
TOTAL ASSETS$11,470 $11,112 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$164 $68 
Accrued and other current liabilities1,083 1,052 
Deferred net revenue (online-enabled games)639 945 
Senior notes, current, net599 599 
Total current liabilities2,485 2,664 
Senior notes, net397 397 
Income tax obligations301 373 
Deferred income taxes, net1 1 
Other liabilities211 216 
Total liabilities3,395 3,651 
Commitments and contingencies (See Note 11)
Stockholders’ equity:
Common stock, $0.01 par value. 1,000 shares authorized; 290 and 288 shares issued and outstanding, respectively
3 3 
Additional paid-in capital145 — 
Retained earnings8,016 7,508 
Accumulated other comprehensive loss(89)(50)
Total stockholders’ equity8,075 7,461 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$11,470 $11,112 

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited).
(a) Derived from audited Consolidated Financial Statements.
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ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)Three Months Ended
September 30,		Six Months Ended
September 30,
(In millions, except per share data)2020201920202019
Net revenue$1,151 $1,348 $2,610 $2,557 
Cost of revenue286 405 574 592 
Gross profit865 943 2,036 1,965 
Operating expenses:
Research and development421 387 859 768 
Marketing and sales156 152 277 262 
General and administrative133 128 269 238 
Acquisition-related contingent consideration— 2 — 3 
Amortization of intangibles6 6 11 11 
Total operating expenses716 675 1,416 1,282 
Operating income149 268 620 683 
Interest and other income (expense), net(10)16 (13)37 
Income before provision for (benefit from) income taxes139 284 607 720 
Provision for (benefit from) income taxes(46)(570)57 (1,555)
Net income$185 $854 $550 $2,275 
Earnings per share:
Basic$0.64 $2.89 $1.90 $7.69 
Diluted$0.63 $2.89 $1.88 $7.66 
Number of shares used in computation:
Basic289 295 289 296 
Diluted293 296 292 297 

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited).

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Table of Contents
ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)Three Months Ended
September 30,		Six Months Ended
September 30,
(In millions)2020201920202019
Net income$185 $854 $550 $2,275 
Other comprehensive income (loss), net of tax:
Net gains (losses) on available-for-sale securities(3)— 8 3 
Net gains (losses) on derivative instruments(43)16 (80)25 
Foreign currency translation adjustments9 (9)33 (8)
Total other comprehensive income (loss), net of tax(37)7 (39)20 
Total comprehensive income$148 $861 $511 $2,295 

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited).
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ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)
 Common Stock
Additional Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (loss)		Total
Stockholders’
Equity
(In millions, except per share data)SharesAmount
Balances as of March 31, 2020
288,413 $3 $— $7,508 $(50)$7,461 
Total comprehensive income— — — 365 (2)363 
Stock-based compensation— — 102 — — 102 
Issuance of common stock1,088 — (66)— — (66)
Repurchase and retirement of common stock(747)— (36)(42)— (78)
Balances as of June 30, 2020288,754 $3 $— $7,831 $(52)$7,782 
Total comprehensive income— — — 185 (37)148 
Stock-based compensation— — 113 — — 113 
Issuance of common stock868 — 32 — — 32 
Repurchase and retirement of common stock— — — — — — 
Balances as of September 30, 2020289,622 $3 $145 $8,016 $(89)$8,075 
(Unaudited)
 Common Stock
Additional Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (loss)		Total
Stockholders’
Equity
(In millions, except per share data)SharesAmount
Balances as of March 31, 2019
298,107 $3 $— $5,358 $(30)$5,331 
Total comprehensive income— — — 1,421 13 1,434 
Stock-based compensation— — 73 — — 73 
Issuance of common stock985 — (48)— — (48)
Repurchase and retirement of common stock(3,205)— (25)(280)— (305)
Balances as of June 30, 2019295,887 $3 $— $6,499 $(17)$6,485 
Total comprehensive income— — — 854 7 861 
Stock-based compensation— — 92 — — 92 
Issuance of common stock584 — 26 — — 26 
Repurchase and retirement of common stock(3,253)— (118)(188)— (306)
Balances as of September 30, 2019293,218 $3 $— $7,165 $(10)$7,158 

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited).

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)Six Months Ended
September 30,
(In millions)20202019
OPERATING ACTIVITIES
Net income$550 $2,275 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion77 72 
Stock-based compensation215 165 
Change in assets and liabilities:
Receivables, net39 (235)
Other assets(113)33 
Accounts payable106 51 
Accrued and other liabilities(96)88 
Deferred income taxes, net(32)(1,800)
Deferred net revenue (online-enabled games)(307)(454)
Net cash provided by operating activities439 195 
INVESTING ACTIVITIES
Capital expenditures(63)(72)
Proceeds from maturities and sales of short-term investments1,418 793 
Purchase of short-term investments(1,416)(1,984)
Net cash used in investing activities(61)(1,263)
FINANCING ACTIVITIES
Proceeds from issuance of common stock43 33 
Cash paid to taxing authorities for shares withheld from employees(77)(55)
Repurchase and retirement of common stock(78)(611)
Acquisition-related contingent consideration payment— (64)
Net cash used in financing activities(112)(697)
Effect of foreign exchange on cash and cash equivalents25 (3)
Increase (decrease) in cash and cash equivalents291 (1,768)
Beginning cash and cash equivalents3,768 4,708 
Ending cash and cash equivalents$4,059 $2,940 
Supplemental cash flow information:
Cash paid during the period for income taxes, net$173 $77 
Cash paid during the period for interest21 21 
Non-cash investing activities:
Change in accrued capital expenditures$(4)$(16)

See accompanying Notes to Condensed Consolidated Financial Statements (unaudited).
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ELECTRONIC ARTS INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

(1) DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be played and watched on game consoles, PCs, mobile phones and tablets. We believe that the breadth and depth of our portfolio, live services offerings, and our use of multiple business models and distribution channels provide us with strategic advantages. Our foundation is a collection of intellectual property from which we create innovative games and content that enables us to build on-going and meaningful relationships with a community of players, creators and viewers. Our portfolio includes brands that we either wholly own (such as Battlefield, The Sims, Apex Legends, Need for Speed and Plants vs. Zombies) or license from others (such as FIFA, Madden NFL, UFC, NHL and Star Wars). We also offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated outside of the sale of our base games. And we are focused on reaching more players whenever and wherever they want to play. We believe that we can add value to our network by making it easier for players to connect to a world of play by offering choice of business model, distribution channel and device.
Our fiscal year is reported on a 52- or 53-week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ending March 31, 2021 contains 53 weeks and ends on April 3, 2021. Our results of operations for the fiscal year ended March 31, 2020 contained 52 weeks and ended on March 28, 2020. Our results of operations for the three and six months ended September 30, 2020 contained 13 weeks and 27 weeks, respectively, and ended on October 3, 2020. Our results of operations for the three and six months ended September 30, 2019 contained 13 weeks and 26 weeks, respectively, and ended on September 28, 2019. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end.
The Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting only of normal recurring accruals unless otherwise indicated) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. The results of operations for the current interim periods are not necessarily indicative of results to be expected for the current year or any other period.
These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, as filed with the United States Securities and Exchange Commission (“SEC”) on May 20, 2020.
Change in Estimated Offering Period
The offering period is the period in which we offer to provide the future update rights and/or online hosting for the game and extra content sold. Because the offering period is not an explicitly defined period, we must make an estimate of the offering period for the service related performance obligations (i.e., future update rights and online hosting). For sales prior to July 1, 2020, revenues for service related performance obligations were generally recognized over an estimated nine-month period beginning in the month after shipment for games and extra content sold through retail, and an estimated six-month period for digitally-distributed games and extra content beginning in the month of sale. During the three months ended September 30, 2020, we completed our annual evaluation of the Estimated Offering Period, and noted that generally, consumers were playing our games for longer periods of time as players engage with services we provide that are designed to enhance and extend gameplay. Based on this, we concluded that the Estimated Offering Period applied to sales made after June 30, 2020 should be lengthened. Revenues for service related performance obligations for games and extra content sold through retail are now recognized over an estimated ten-month period beginning in the month of sale, and revenues for service related performance obligations for digitally-distributed games and extra content are now recognized over an estimated eight-month period beginning in the month of sale, which results in revenue being recognized over a longer period of time. During the three months ended September 30, 2020, this change to our Estimated Offering Period resulted in an estimated decrease in net revenue of $26 million and net income of $20 million, and a decrease of $0.07 diluted earnings per share.

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Reclassifications
As our business has evolved and management focuses less on the differentiation between our packaged goods business and our digital business and more on our full game sales and live services that extend and enhance gameplay, we have updated our presentation of net revenue by composition to align with this management view. Certain prior year amounts were reclassified to conform to current year presentation.
Recently Adopted Accounting Standards
In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. We adopted ASU 2016-13 in the first quarter of fiscal year 2021. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This update eliminates, adds, and modifies certain fair value measurement disclosure requirements. We adopted ASU 2018-13 in the first quarter of fiscal year 2021. The adoption did not have an impact on our Condensed Consolidated Financial Statements.
In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance in order to determine which implementation costs to defer and recognize as an asset. We adopted ASU 2018-15 in the first quarter of fiscal year 2021. The adoption did not have a material impact on our Condensed Consolidated Financial Statements.
Other Recently Issued Accounting Standards
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for us beginning in the first quarter of fiscal year 2022. Early adoption is permitted. We are currently evaluating the impact of this new standard on our Condensed Consolidated Financial Statements and related disclosures.


(2) FAIR VALUE MEASUREMENTS
There are various valuation techniques used to estimate fair value, the primary one being the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. We measure certain financial and nonfinancial assets and liabilities at fair value on a recurring and nonrecurring basis.
Fair Value Hierarchy
The three levels of inputs that may be used to measure fair value are as follows:
•Level 1. Quoted prices in active markets for identical assets or liabilities.
•Level 2. Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities.
•Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities.
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Assets and Liabilities Measured at Fair Value on a Recurring Basis
As of September 30, 2020 and March 31, 2020, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions):
  Fair Value Measurements at Reporting Date Using
  
 
As of
September 30, 2020
Quoted Prices in
Active Markets 
for Identical
Financial
Instruments		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs		Balance Sheet 
Classification
 (Level 1)(Level 2)(Level 3)
Assets
Bank and time deposits$107 $107 $— $— Cash equivalents
Money market funds2,004 2,004 — — Cash equivalents
Available-for-sale securities:
Corporate bonds526 — 526 — Short-term investments and cash equivalents
U.S. Treasury securities726 726 — — Short-term investments
U.S. agency securities5 — 5 — Short-term investments
Commercial paper390 — 390 — Short-term investments and cash equivalents
Foreign government securities82 — 82 — Short-term investments and cash equivalents
Asset-backed securities240 — 240 — Short-term investments and cash equivalents
Certificates of deposit55 — 55 — Short-term investments
Foreign currency derivatives19 — 19 — Other current assets and other assets
Deferred compensation plan assets (a)
16 16 — — Other assets
Total assets at fair value$4,170 $2,853 $1,317 $— 
Liabilities
Foreign currency derivatives$44 $— $44 $— Accrued and other current liabilities and other liabilities
Deferred compensation plan liabilities (a)
17 17 — — Other liabilities
Total liabilities at fair value$61 $17 $44 $— 

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  Fair Value Measurements at Reporting Date Using 
 
As of
March 31, 2020
Quoted Prices in
Active Markets for Identical
Financial Instruments		Significant
Other
Observable
Inputs		Significant
Unobservable
Inputs		Balance Sheet 
Classification
 (Level 1)(Level 2)(Level 3)
Assets
Bank and time deposits$78 $78 $— $— Cash equivalents
Money market funds1,599 1,599 — — Cash equivalents
Available-for-sale securities:
Corporate bonds687 — 687 — Short-term investments and cash equivalents
U.S. Treasury securities603 603 — — Short-term investments and cash equivalents
U.S. agency securities8 — 8 — Short-term investments
Commercial paper414 — 414 — Short-term investments and cash equivalents
Foreign government securities42 — 42 — Short-term investments
Asset-backed securities269 — 269 — Short-term investments
Certificates of deposit 56 — 56 — Short-term investments
Foreign currency derivatives76 — 76 — Other current assets and other assets
Deferred compensation plan assets (a)
13 13 — — Other assets
Total assets at fair value$3,845 $2,293 $1,552 $— 
Liabilities
Foreign currency derivatives$36 $— $36 $— Accrued and other current liabilities and other liabilities
Deferred compensation plan liabilities (a)
14 14 — — Other liabilities
Total liabilities at fair value$50 $14 $36 $— 

(a)The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2020, for additional information regarding our Deferred Compensation Plan.


(3) FINANCIAL INSTRUMENTS
Cash and Cash Equivalents
As of September 30, 2020 and March 31, 2020, our cash and cash equivalents were $4,059 million and $3,768 million, respectively. Cash equivalents were valued using quoted market prices or other readily available market information.
Short-Term Investments
Short-term investments consisted of the following as of September 30, 2020 and March 31, 2020 (in millions):
 
As of September 30, 2020
As of March 31, 2020
 Cost or
Amortized
Cost		Gross UnrealizedFair
Value		Cost or
Amortized
Cost		Gross UnrealizedFair
Value
 GainsLossesGainsLosses
Corporate bonds$513 $1 $— $514 $684 $1 $(4)$681 
U.S. Treasury securities724 2 — 726 530 4 — 534 
U.S. agency securities5 — — 5 8 — — 8 
Commercial paper358 — — 358 377 — — 377 
Foreign government securities
75 — — 75 42 — — 42 
Asset-backed securities237 2 — 239 273 — (4)269 
Certificates of deposit55 — — 55 56 — — 56 
Short-term investments$1,967 $5 $— $1,972 $1,970 $5 $(8)$1,967 
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The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of September 30, 2020 and March 31, 2020 (in millions):
 
As of September 30, 2020
As of March 31, 2020
 Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Short-term investments
Due within 1 year$1,600 $1,603 $1,568 $1,567 
Due 1 year through 5 years360 362 395 393 
Due after 5 years