falsedesktopEA2020-09-30000071251520000075{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☑\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\nEmerging growth company\t☐\t\t☐\n", "q10k_tbl_1": "\t\tPage\nPart I - FINANCIAL INFORMATION\t\t\nItem 1.\tCondensed Consolidated Financial Statements (Unaudited)\t\n\tCondensed Consolidated Balance Sheets as of September 30 2020 and March 31 2020\t3\n\tCondensed Consolidated Statements of Operations for the Three and Six Months Ended September 30 2020 and 2019\t4\n\tCondensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended September 30 2020 and 2019\t5\n\tCondensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended September 30 2020 and 2019\t6\n\tCondensed Consolidated Statements of Cash Flows for the Six Months Ended September 30 2020 and 2019\t7\n\tNotes to Condensed Consolidated Financial Statements\t8\n\tReport of Independent Registered Public Accounting Firm\t28\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t29\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t44\nItem 4.\tControls and Procedures\t46\nPart II - OTHER INFORMATION\t\t\nItem 1.\tLegal Proceedings\t47\nItem 1A.\tRisk Factors\t47\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t59\nItem 3.\tDefaults Upon Senior Securities\t59\nItem 4.\tMine Safety Disclosures\t59\nItem 6.\tExhibits\t59\nExhibit Index\t\t60\nSignature\t\t61\n", "q10k_tbl_2": "(Unaudited) (In millions except par value data)\tSeptember 30 2020\tMarch 31 2020 (a)\nASSETS\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t4059\t3768\nShort-term investments\t1972\t1967\nReceivables net\t423\t461\nOther current assets\t376\t321\nTotal current assets\t6830\t6517\nProperty and equipment net\t458\t449\nGoodwill\t1891\t1885\nAcquisition-related intangibles net\t42\t53\nDeferred income taxes net\t1937\t1903\nOther assets\t312\t305\nTOTAL ASSETS\t11470\t11112\nLIABILITIES AND STOCKHOLDERS' EQUITY\t\t\nCurrent liabilities:\t\t\nAccounts payable\t164\t68\nAccrued and other current liabilities\t1083\t1052\nDeferred net revenue (online-enabled games)\t639\t945\nSenior notes current net\t599\t599\nTotal current liabilities\t2485\t2664\nSenior notes net\t397\t397\nIncome tax obligations\t301\t373\nDeferred income taxes net\t1\t1\nOther liabilities\t211\t216\nTotal liabilities\t3395\t3651\nCommitments and contingencies (See Note 11)\t\t\nStockholders' equity:\t\t\nCommon stock $0.01 par value. 1000 shares authorized; 290 and 288 shares issued and outstanding respectively\t3\t3\nAdditional paid-in capital\t145\t0\nRetained earnings\t8016\t7508\nAccumulated other comprehensive loss\t(89)\t(50)\nTotal stockholders' equity\t8075\t7461\nTOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\t11470\t11112\n", "q10k_tbl_3": "(Unaudited)\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n(In millions except per share data)\t2020\t2019\t2020\t2019\nNet revenue\t1151\t1348\t2610\t2557\nCost of revenue\t286\t405\t574\t592\nGross profit\t865\t943\t2036\t1965\nOperating expenses:\t\t\t\t\nResearch and development\t421\t387\t859\t768\nMarketing and sales\t156\t152\t277\t262\nGeneral and administrative\t133\t128\t269\t238\nAcquisition-related contingent consideration\t0\t2\t0\t3\nAmortization of intangibles\t6\t6\t11\t11\nTotal operating expenses\t716\t675\t1416\t1282\nOperating income\t149\t268\t620\t683\nInterest and other income (expense) net\t(10)\t16\t(13)\t37\nIncome before provision for (benefit from) income taxes\t139\t284\t607\t720\nProvision for (benefit from) income taxes\t(46)\t(570)\t57\t(1555)\nNet income\t185\t854\t550\t2275\nEarnings per share:\t\t\t\t\nBasic\t0.64\t2.89\t1.90\t7.69\nDiluted\t0.63\t2.89\t1.88\t7.66\nNumber of shares used in computation:\t\t\t\t\nBasic\t289\t295\t289\t296\nDiluted\t293\t296\t292\t297\n", "q10k_tbl_4": "(Unaudited)\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n(In millions)\t2020\t2019\t2020\t2019\nNet income\t185\t854\t550\t2275\nOther comprehensive income (loss) net of tax:\t\t\t\t\nNet gains (losses) on available-for-sale securities\t(3)\t0\t8\t3\nNet gains (losses) on derivative instruments\t(43)\t16\t(80)\t25\nForeign currency translation adjustments\t9\t(9)\t33\t(8)\nTotal other comprehensive income (loss) net of tax\t(37)\t7\t(39)\t20\nTotal comprehensive income\t148\t861\t511\t2295\n", "q10k_tbl_5": "(Unaudited)\t\tCommon Stock\t\t\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Income (loss)\tTotal Stockholders' Equity\n(In millions except per share data)\tShares\t\tAmount\t\nBalances as of March 31 2020\t\t288413\t\t3\t0\t7508\t(50)\t7461\nTotal comprehensive income\t\t0\t\t0\t0\t365\t(2)\t363\nStock-based compensation\t\t0\t\t0\t102\t0\t0\t102\nIssuance of common stock\t\t1088\t\t0\t(66)\t0\t0\t(66)\nRepurchase and retirement of common stock\t\t(747)\t\t0\t(36)\t(42)\t0\t(78)\nBalances as of June 30 2020\t\t288754\t\t3\t0\t7831\t(52)\t7782\nTotal comprehensive income\t\t0\t\t0\t0\t185\t(37)\t148\nStock-based compensation\t\t0\t\t0\t113\t0\t0\t113\nIssuance of common stock\t\t868\t\t0\t32\t0\t0\t32\nRepurchase and retirement of common stock\t\t0\t\t0\t0\t0\t0\t0\nBalances as of September 30 2020\t\t289622\t\t3\t145\t8016\t(89)\t8075\n(Unaudited)\t\tCommon Stock\t\t\tAdditional Paid-in Capital\tRetained Earnings\tAccumulated Other Comprehensive Income (loss)\tTotal Stockholders' Equity\n(In millions except per share data)\tShares\t\tAmount\t\nBalances as of March 31 2019\t\t298107\t\t3\t0\t5358\t(30)\t5331\nTotal comprehensive income\t\t0\t\t0\t0\t1421\t13\t1434\nStock-based compensation\t\t0\t\t0\t73\t0\t0\t73\nIssuance of common stock\t\t985\t\t0\t(48)\t0\t0\t(48)\nRepurchase and retirement of common stock\t\t(3205)\t\t0\t(25)\t(280)\t0\t(305)\nBalances as of June 30 2019\t\t295887\t\t3\t0\t6499\t(17)\t6485\nTotal comprehensive income\t\t0\t\t0\t0\t854\t7\t861\nStock-based compensation\t\t0\t\t0\t92\t0\t0\t92\nIssuance of common stock\t\t584\t\t0\t26\t0\t0\t26\nRepurchase and retirement of common stock\t\t(3253)\t\t0\t(118)\t(188)\t0\t(306)\nBalances as of September 30 2019\t\t293218\t\t3\t0\t7165\t(10)\t7158\n", "q10k_tbl_6": "(Unaudited)\tSix Months Ended September 30\t\n(In millions)\t2020\t2019\nOPERATING ACTIVITIES\t\t\nNet income\t550\t2275\nAdjustments to reconcile net income to net cash provided by operating activities:\t\t\nDepreciation amortization and accretion\t77\t72\nStock-based compensation\t215\t165\nChange in assets and liabilities:\t\t\nReceivables net\t39\t(235)\nOther assets\t(113)\t33\nAccounts payable\t106\t51\nAccrued and other liabilities\t(96)\t88\nDeferred income taxes net\t(32)\t(1800)\nDeferred net revenue (online-enabled games)\t(307)\t(454)\nNet cash provided by operating activities\t439\t195\nINVESTING ACTIVITIES\t\t\nCapital expenditures\t(63)\t(72)\nProceeds from maturities and sales of short-term investments\t1418\t793\nPurchase of short-term investments\t(1416)\t(1984)\nNet cash used in investing activities\t(61)\t(1263)\nFINANCING ACTIVITIES\t\t\nProceeds from issuance of common stock\t43\t33\nCash paid to taxing authorities for shares withheld from employees\t(77)\t(55)\nRepurchase and retirement of common stock\t(78)\t(611)\nAcquisition-related contingent consideration payment\t0\t(64)\nNet cash used in financing activities\t(112)\t(697)\nEffect of foreign exchange on cash and cash equivalents\t25\t(3)\nIncrease (decrease) in cash and cash equivalents\t291\t(1768)\nBeginning cash and cash equivalents\t3768\t4708\nEnding cash and cash equivalents\t4059\t2940\nSupplemental cash flow information:\t\t\nCash paid during the period for income taxes net\t173\t77\nCash paid during the period for interest\t21\t21\nNon-cash investing activities:\t\t\nChange in accrued capital expenditures\t(4)\t(16)\n", "q10k_tbl_7": "\t\t\tFair Value Measurements at Reporting Date Using\t\t\t\t\t\n\tAs of September 30 2020\t\tQuoted Prices in Active Markets for Identical Financial Instruments\t\tSignificant Other Observable Inputs\t\tSignificant Unobservable Inputs\tBalance Sheet Classification\n\t\t(Level 1)\t\t(Level 2)\t\t(Level 3)\t\nAssets\t\t\t\t\t\t\t\t\nBank and time deposits\t107\t\t107\t\t0\t\t0\tCash equivalents\nMoney market funds\t2004\t\t2004\t\t0\t\t0\tCash equivalents\nAvailable-for-sale securities:\t\t\t\t\t\t\t\t\nCorporate bonds\t526\t\t0\t\t526\t\t0\tShort-term investments and cash equivalents\nU.S. Treasury securities\t726\t\t726\t\t0\t\t0\tShort-term investments\nU.S. agency securities\t5\t\t0\t\t5\t\t0\tShort-term investments\nCommercial paper\t390\t\t0\t\t390\t\t0\tShort-term investments and cash equivalents\nForeign government securities\t82\t\t0\t\t82\t\t0\tShort-term investments and cash equivalents\nAsset-backed securities\t240\t\t0\t\t240\t\t0\tShort-term investments and cash equivalents\nCertificates of deposit\t55\t\t0\t\t55\t\t0\tShort-term investments\nForeign currency derivatives\t19\t\t0\t\t19\t\t0\tOther current assets and other assets\nDeferred compensation plan assets (a)\t16\t\t16\t\t0\t\t0\tOther assets\nTotal assets at fair value\t4170\t\t2853\t\t1317\t\t0\t\nLiabilities\t\t\t\t\t\t\t\t\nForeign currency derivatives\t44\t\t0\t\t44\t\t0\tAccrued and other current liabilities and other liabilities\nDeferred compensation plan liabilities (a)\t17\t\t17\t\t0\t\t0\tOther liabilities\nTotal liabilities at fair value\t61\t\t17\t\t44\t\t0\t\n", "q10k_tbl_8": "\t\tFair Value Measurements at Reporting Date Using\t\t\t\n\tAs of March 31 2020\tQuoted Prices in Active Markets for Identical Financial Instruments\tSignificant Other Observable Inputs\tSignificant Unobservable Inputs\tBalance Sheet Classification\n\t(Level 1)\t(Level 2)\t(Level 3)\nAssets\t\t\t\t\t\nBank and time deposits\t78\t78\t0\t0\tCash equivalents\nMoney market funds\t1599\t1599\t0\t0\tCash equivalents\nAvailable-for-sale securities:\t\t\t\t\t\nCorporate bonds\t687\t0\t687\t0\tShort-term investments and cash equivalents\nU.S. Treasury securities\t603\t603\t0\t0\tShort-term investments and cash equivalents\nU.S. agency securities\t8\t0\t8\t0\tShort-term investments\nCommercial paper\t414\t0\t414\t0\tShort-term investments and cash equivalents\nForeign government securities\t42\t0\t42\t0\tShort-term investments\nAsset-backed securities\t269\t0\t269\t0\tShort-term investments\nCertificates of deposit\t56\t0\t56\t0\tShort-term investments\nForeign currency derivatives\t76\t0\t76\t0\tOther current assets and other assets\nDeferred compensation plan assets (a)\t13\t13\t0\t0\tOther assets\nTotal assets at fair value\t3845\t2293\t1552\t0\t\nLiabilities\t\t\t\t\t\nForeign currency derivatives\t36\t0\t36\t0\tAccrued and other current liabilities and other liabilities\nDeferred compensation plan liabilities (a)\t14\t14\t0\t0\tOther liabilities\nTotal liabilities at fair value\t50\t14\t36\t0\t\n", "q10k_tbl_9": "\tAs of September 30 2020\t\t\t\tAs of March 31 2020\t\t\t\n\tCost or Amortized Cost\tGross Unrealized\t\tFair Value\tCost or Amortized Cost\tGross Unrealized\t\tFair Value\n\tGains\tLosses\tGains\tLosses\nCorporate bonds\t513\t1\t0\t514\t684\t1\t(4)\t681\nU.S. Treasury securities\t724\t2\t0\t726\t530\t4\t0\t534\nU.S. agency securities\t5\t0\t0\t5\t8\t0\t0\t8\nCommercial paper\t358\t0\t0\t358\t377\t0\t0\t377\nForeign government securities\t75\t0\t0\t75\t42\t0\t0\t42\nAsset-backed securities\t237\t2\t0\t239\t273\t0\t(4)\t269\nCertificates of deposit\t55\t0\t0\t55\t56\t0\t0\t56\nShort-term investments\t1967\t5\t0\t1972\t1970\t5\t(8)\t1967\n", "q10k_tbl_10": "\tAs of September 30 2020\t\tAs of March 31 2020\t\n\tAmortized Cost\tFair Value\tAmortized Cost\tFair Value\nShort-term investments\t\t\t\t\nDue within 1 year\t1600\t1603\t1568\t1567\nDue 1 year through 5 years\t360\t362\t395\t393\nDue after 5 years\t7\t7\t7\t7\nShort-term investments\t1967\t1972\t1970\t1967\n", "q10k_tbl_11": "\tAs of September 30 2020\t\t\t\t\tAs of March 31 2020\t\t\n\tNotional Amount\t\tFair Value\t\t\tNotional Amount\tFair Value\t\n\t\tAsset\t\tLiability\t\tAsset\tLiability\nForward contracts to purchase\t207\t\t8\t\t1\t316\t1\t19\nForward contracts to sell\t1177\t\t4\t\t34\t1371\t61\t1\n", "q10k_tbl_12": "\tThree Months Ended September 30\t\t\t\tSix Months Ended September 30\t\t\t\n\t2020\t\t2019\t\t2020\t\t2019\t\n\tNet revenue\tResearch and development\tNet revenue\tResearch and development\tNet revenue\tResearch and development\tNet revenue\tResearch and development\nTotal amounts presented in our Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded\t1151\t421\t1348\t387\t2610\t859\t2557\t768\nGains (losses) on foreign currency forward contracts designated as cash flow hedges\t1\t0\t25\t(1)\t12\t(6)\t41\t(7)\n", "q10k_tbl_13": "\tAs of September 30 2020\t\t\t\t\tAs of March 31 2020\t\t\n\tNotional Amount\t\tFair Value\t\t\tNotional Amount\tFair Value\t\n\t\tAsset\t\tLiability\t\tAsset\tLiability\nForward contracts to purchase\t608\t\t0\t\t8\t388\t1\t16\nForward contracts to sell\t1012\t\t7\t\t1\t292\t13\t0\n", "q10k_tbl_14": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\n\tInterest and other income (expense) net\t\t\t\nTotal amounts presented in our Condensed Consolidated Statements of Operations in which the effects of balance sheet hedges are recorded\t(10)\t16\t(13)\t37\nGain (losses) on foreign currency forward contracts not designated as hedging instruments\t(3)\t1\t(7)\t(3)\n", "q10k_tbl_15": "\tUnrealized Net Gains (Losses) on Available-for-Sale Securities\tUnrealized Net Gains (Losses) on Derivative Instruments\tForeign Currency Translation Adjustments\tTotal\nBalances as of June 30 2020\t7\t2\t(61)\t(52)\nOther comprehensive income (loss) before reclassifications\t(3)\t(42)\t9\t(36)\nAmounts reclassified from accumulated other comprehensive income (loss)\t0\t(1)\t0\t(1)\nTotal other comprehensive income (loss) net of tax\t(3)\t(43)\t9\t(37)\nBalances as of September 30 2020\t4\t(41)\t(52)\t(89)\n", "q10k_tbl_16": "\tUnrealized Net Gains (Losses) on Available-for-Sale Securities\tUnrealized Net Gains (Losses) on Derivative Instruments\tForeign Currency Translation Adjustments\tTotal\nBalances as of June 30 2019\t2\t31\t(50)\t(17)\nOther comprehensive income (loss) before reclassifications\t1\t40\t(9)\t32\nAmounts reclassified from accumulated other comprehensive income (loss)\t(1)\t(24)\t0\t(25)\nTotal other comprehensive income (loss) net of tax\t0\t16\t(9)\t7\nBalances as of September 30 2019\t2\t47\t(59)\t(10)\n", "q10k_tbl_17": "\tUnrealized Net Gains (Losses) on Available-for-Sale Securities\tUnrealized Net Gains (Losses) on Derivative Instruments\tForeign Currency Translation Adjustments\tTotal\nBalances as of March 31 2020\t(4)\t39\t(85)\t(50)\nOther comprehensive income (loss) before reclassifications\t8\t(74)\t33\t(33)\nAmounts reclassified from accumulated other comprehensive income (loss)\t0\t(6)\t0\t(6)\nTotal other comprehensive income (loss) net of tax\t8\t(80)\t33\t(39)\nBalances as of September 30 2020\t4\t(41)\t(52)\t(89)\n", "q10k_tbl_18": "\tUnrealized Net Gains (Losses) on Available-for-Sale Securities\tUnrealized Net Gains (Losses) on Derivative Instruments\tForeign Currency Translation Adjustments\tTotal\nBalances as of March 31 2019\t(1)\t22\t(51)\t(30)\nOther comprehensive income (loss) before reclassifications\t4\t59\t(8)\t55\nAmounts reclassified from accumulated other comprehensive income (loss)\t(1)\t(34)\t0\t(35)\nTotal other comprehensive income (loss) net of tax\t3\t25\t(8)\t20\nBalances as of September 30 2019\t2\t47\t(59)\t(10)\n", "q10k_tbl_19": "\tAmount Reclassified From Accumulated Other Comprehensive Income (Loss)\t\nStatement of Operations Classification\tThree Months Ended September 30 2019\tSix Months Ended September 30 2019\n(Gains) losses on foreign currency forward contracts designated as cash flow hedges\t\t\nNet revenue\t(25)\t(41)\nResearch and development\t1\t7\nTotal net (gain) loss reclassified net of tax\t(24)\t(34)\n", "q10k_tbl_20": "\tAs of March 31 2020\tActivity\tEffects of Foreign Currency Translation\tAs of September 30 2020\nGoodwill\t2253\t0\t6\t2259\nAccumulated impairment\t(368)\t0\t0\t(368)\nTotal\t1885\t0\t6\t1891\n", "q10k_tbl_21": "\tAs of September 30 2020\t\t\tAs of March 31 2020\t\t\n\tGross Carrying Amount\tAccumulated Amortization\tAcquisition- Related Intangibles Net\tGross Carrying Amount\tAccumulated Amortization\tAcquisition- Related Intangibles Net\nDeveloped and core technology\t474\t(456)\t18\t474\t(450)\t24\nTrade names and trademarks\t161\t(137)\t24\t161\t(132)\t29\nRegistered user base and other intangibles\t5\t(5)\t0\t5\t(5)\t0\nCarrier contracts and related\t85\t(85)\t0\t85\t(85)\t0\nTotal\t725\t(683)\t42\t725\t(672)\t53\n", "q10k_tbl_22": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nCost of revenue\t0\t2\t0\t4\nOperating expenses\t6\t6\t11\t11\nTotal\t6\t8\t11\t15\n", "q10k_tbl_23": "Fiscal Year Ending March 31\t\n2021 (remaining six months)\t11\n2022\t22\n2023\t9\n2024 and thereafter\t0\nTotal\t42\n", "q10k_tbl_24": "\tAs of September 30 2020\tAs of March 31 2020\nOther current assets\t92\t74\nOther assets\t22\t25\nRoyalty-related assets\t114\t99\n", "q10k_tbl_25": "\tAs of September 30 2020\tAs of March 31 2020\nAccrued royalties\t129\t171\nOther liabilities\t13\t26\nRoyalty-related liabilities\t142\t197\n", "q10k_tbl_26": "\tAs of September 30 2020\tAs of March 31 2020\nComputer equipment and software\t795\t722\nBuildings\t351\t340\nLeasehold improvements\t168\t161\nEquipment furniture and fixtures and other\t87\t83\nLand\t66\t65\nConstruction in progress\t6\t20\n\t1473\t1391\nLess: accumulated depreciation\t(1015)\t(942)\nProperty and equipment net\t458\t449\n", "q10k_tbl_27": "\tAs of September 30 2020\tAs of March 31 2020\nOther accrued expenses\t362\t273\nAccrued compensation and benefits\t285\t326\nAccrued royalties\t129\t171\nSales returns and price protection reserves\t72\t109\nDeferred net revenue (other)\t149\t104\nOperating lease liabilities\t86\t69\nAccrued and other current liabilities\t1083\t1052\n", "q10k_tbl_28": "\tAs of September 30 2020\tAs of March 31 2020\nDeferred net revenue (online-enabled games)\t639\t945\nDeferred net revenue (other)\t149\t104\nDeferred net revenue (noncurrent)\t11\t8\nTotal Deferred net revenue\t799\t1057\n", "q10k_tbl_29": "Balance as of March 31 2020\t983\nIncreases in unrecognized tax benefits related to prior year tax positions\t5\nDecreases in unrecognized tax benefits related to prior year tax positions\t(414)\nIncreases in unrecognized tax benefits related to current year tax positions\t27\nDecreases in unrecognized tax benefits related to settlements with taxing authorities\t0\nReductions in unrecognized tax benefits due to lapse of applicable statute of limitations\t(22)\nChanges in unrecognized tax benefits due to foreign currency translation\t5\nBalance as of September 30 2020\t584\n", "q10k_tbl_30": "\tAs of September 30 2020\tAs of March 31 2020\nSenior Notes:\t\t\n3.70% Senior Notes due 2021\t600\t600\n4.80% Senior Notes due 2026\t400\t400\nTotal principal amount\t1000\t1000\nUnaccreted discount\t(1)\t(1)\nUnamortized debt issuance costs\t(3)\t(3)\nNet carrying value of Senior Notes\t996\t996\nFair value of Senior Notes (Level 2)\t1082\t1030\n", "q10k_tbl_31": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nAmortization of debt issuance costs\t0\t0\t(1)\t(1)\nCoupon interest expense\t(11)\t(11)\t(21)\t(21)\nTotal interest expense\t(11)\t(11)\t(22)\t(22)\n", "q10k_tbl_32": "\t\tFiscal Years Ending March 31\t\t\t\t\t\t\n\t\t2021\t\t\t\t\t\t\n\t\t(Remaining\t\t\t\t\t\t\n\tTotal\tsix mos.)\t2022\t2023\t2024\t2025\t2026\tThereafter\nUnrecognized commitments\t\t\t\t\t\t\t\t\nDeveloper/licensor commitments\t1895\t86\t340\t358\t349\t359\t271\t132\nMarketing commitments\t668\t65\t145\t120\t118\t109\t78\t33\nSenior Notes interest\t112\t17\t20\t19\t19\t19\t18\t0\nOperating lease imputed interest\t19\t3\t5\t4\t3\t2\t1\t1\nOperating leases not yet commenced (a)\t180\t0\t0\t4\t13\t14\t14\t135\nOther purchase obligations\t130\t31\t65\t21\t5\t4\t4\t0\nTotal unrecognized commitments\t3004\t202\t575\t526\t507\t507\t386\t301\nRecognized commitments\t\t\t\t\t\t\t\t\nSenior Notes principal and interest\t1003\t603\t0\t0\t0\t0\t400\t0\nOperating leases\t243\t44\t70\t38\t32\t25\t18\t16\nTransition Tax and other taxes\t66\t22\t24\t3\t4\t6\t7\t0\nLicensing commitments\t39\t12\t27\t0\t0\t0\t0\t0\nTotal recognized commitments\t1351\t681\t121\t41\t36\t31\t425\t16\nTotal Commitments\t4355\t883\t696\t567\t543\t538\t811\t317\n", "q10k_tbl_33": "\tESPP Purchase Rights\t\n\tThree Months Ended September 30\t\n\t2020\t2019\nRisk-free interest rate\t0.1%\t1.7 - 1.9%\nExpected volatility\t34 - 39%\t34 - 37%\nWeighted-average volatility\t37%\t36%\nExpected term\t6 - 12 months\t6 - 12 months\nExpected dividends\tNone\tNone\n", "q10k_tbl_34": "\tOptions (in thousands)\tWeighted- Average Exercise Prices\tWeighted- Average Remaining Contractual Term (in years)\tAggregate Intrinsic Value (in millions)\nOutstanding as of March 31 2020\t1074\t30.85\t\t\nGranted\t2\t124.20\t\t\nExercised\t(351)\t28.27\t\t\nForfeited cancelled or expired\t0\t0\t\t\nOutstanding as of September 30 2020\t725\t32.31\t3.49\t70\nVested and expected to vest\t725\t32.31\t3.49\t70\nExercisable as of September 30 2020\t725\t32.31\t3.49\t70\n", "q10k_tbl_35": "\tRestricted Stock Rights (in thousands)\tWeighted- Average Grant Date Fair Values\nOutstanding as of March 31 2020\t6217\t100.42\nGranted\t2825\t126.20\nVested\t(1645)\t103.67\nForfeited or cancelled\t(204)\t106.79\nOutstanding as of September 30 2020\t7193\t109.62\n", "q10k_tbl_36": "\tPerformance- Based Restricted Stock Units (in thousands)\tWeighted- Average Grant Date Fair Value\nOutstanding as of March 31 2020\t579\t110.51\nGranted\t0\t0\nForfeited or cancelled\t0\t0\nOutstanding as of September 30 2020\t579\t110.51\n", "q10k_tbl_37": "\tMarket-Based Restricted Stock Units (in thousands)\tWeighted- Average Grant Date Fair Value\nOutstanding as of March 31 2020\t1898\t128.41\nGranted\t874\t145.78\nVested\t(157)\t113.72\nForfeited or cancelled\t(398)\t137.98\nOutstanding as of September 30 2020\t2217\t134.58\n", "q10k_tbl_38": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nCost of revenue\t2\t1\t3\t2\nResearch and development\t74\t61\t140\t110\nMarketing and sales\t12\t10\t23\t17\nGeneral and administrative\t25\t20\t49\t36\nStock-based compensation expense\t113\t92\t215\t165\n", "q10k_tbl_39": "(In millions)\tShares\tAmount\nThree months ended September 30 2020\t0\t0\nSix months ended September 30 2020\t0.7\t78\nThree months ended September 30 2019\t3.3\t306\nSix months ended September 30 2019\t6.5\t611\n", "q10k_tbl_40": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n(In millions except per share amounts)\t2020\t2019\t2020\t2019\nNet income\t185\t854\t550\t2275\nShares used to compute earnings per share:\t\t\t\t\nWeighted-average common stock outstanding - basic\t289\t295\t289\t296\nDilutive potential common shares related to stock award plans and from assumed exercise of stock options\t4\t1\t3\t1\nWeighted-average common stock outstanding - diluted\t293\t296\t292\t297\nEarnings per share:\t\t\t\t\nBasic\t0.64\t2.89\t1.90\t7.69\nDiluted\t0.63\t2.89\t1.88\t7.66\n", "q10k_tbl_41": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet revenue by timing of recognition\t\t\t\t\nRevenue recognized at a point in time\t337\t629\t779\t877\nRevenue recognized over time\t814\t719\t1831\t1680\nNet revenue\t1151\t1348\t2610\t2557\n", "q10k_tbl_42": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet revenue by composition\t\t\t\t\nFull game downloads\t163\t181\t386\t314\nPackaged goods\t119\t399\t255\t528\nFull game\t282\t580\t641\t842\nLive services and other\t869\t768\t1969\t1715\nNet revenue\t1151\t1348\t2610\t2557\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nPlatform net revenue\t\t\t\t\nConsole\t714\t923\t1646\t1683\nPC and other\t249\t248\t574\t501\nMobile\t188\t177\t390\t373\nNet revenue\t1151\t1348\t2610\t2557\n", "q10k_tbl_44": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet revenue from unaffiliated customers\t\t\t\t\nNorth America\t578\t531\t1205\t1021\nInternational\t573\t817\t1405\t1536\nNet revenue\t1151\t1348\t2610\t2557\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\tSix Months Ended September 30\t\n(In millions)\t2020\t2019\t2020\t2019\nTotal net revenue\t1151\t1348\t2610\t2557\nChange in deferred net revenue (online-enabled games)\t(241)\t(35)\t(310)\t(462)\nNet bookings (a)\t910\t1313\t2300\t2095\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\t\t\n\t2020\t2019\t Change\t% Change\nNet revenue:\t\t\t\t\nFull game downloads\t163\t181\t(18)\t(10)%\nPackaged goods\t119\t399\t(280)\t(70)%\nFull game\t282\t580\t(298)\t(51)%\nLive services and other\t869\t768\t101\t13%\nTotal net revenue\t1151\t1348\t(197)\t(15)%\n", "q10k_tbl_47": "\tSix Months Ended September 30\t\t\t\n\t2020\t2019\t Change\t% Change\nNet revenue:\t\t\t\t\nFull game downloads\t386\t314\t72\t23%\nPackaged goods\t255\t528\t(273)\t(52)%\nFull game\t641\t842\t(201)\t(24)%\nLive services and other\t1969\t1715\t254\t15%\nTotal net revenue\t2610\t2557\t53\t2%\n", "q10k_tbl_48": "September 30 2020\t% of Net Revenue\tSeptember 30 2019\t% of Net Revenue\t% Change\tChange as a % of Net Revenue\n286\t25%\t405\t30%\t(29)%\t(5)%\n", "q10k_tbl_49": "September 30 2020\t% of Net Revenue\tSeptember 30 2019\t% of Net Revenue\t% Change\tChange as a % of Net Revenue\n574\t22%\t592\t23%\t(3)%\t(1)%\n", "q10k_tbl_50": "\tSeptember 30 2020\t% of Net Revenue\tSeptember 30 2019\t% of Net Revenue\t Change\t% Change\nThree months ended\t421\t37%\t387\t29%\t34\t9%\nSix months ended\t859\t33%\t768\t30%\t91\t12%\n", "q10k_tbl_51": "\tSeptember 30 2020\t% of Net Revenue\tSeptember 30 2019\t% of Net Revenue\t Change\t% Change\nThree months ended\t156\t14%\t152\t11%\t4\t3%\nSix months ended\t277\t11%\t262\t10%\t15\t6%\n", "q10k_tbl_52": "\tSeptember 30 2020\t% of Net Revenue\tSeptember 30 2019\t% of Net Revenue\t Change\t% Change\nThree months ended\t133\t12%\t128\t9%\t5\t4%\nSix months ended\t269\t10%\t238\t9%\t31\t13%\n", "q10k_tbl_53": "\tSeptember 30 2020\tEffective Tax Rate\tSeptember 30 2019\tEffective Tax Rate\nThree months ended\t(46)\t(33)%\t(570)\t(201)%\nSix months ended\t57\t9%\t(1555)\t(216)%\n", "q10k_tbl_54": "(In millions)\tAs of September 30 2020\tAs of March 31 2020\tIncrease/(Decrease)\nCash and cash equivalents\t4059\t3768\t291\nShort-term investments\t1972\t1967\t5\nTotal\t6031\t5735\t296\nPercentage of total assets\t53%\t52%\t\n", "q10k_tbl_55": "\tSix Months Ended September 30\t\t\n(In millions)\t2020\t2019\tChange\nNet cash provided by operating activities\t439\t195\t244\nNet cash used in investing activities\t(61)\t(1263)\t1202\nNet cash used in financing activities\t(112)\t(697)\t585\nEffect of foreign exchange on cash and cash equivalents\t25\t(3)\t28\nNet increase (decrease) in cash and cash equivalents\t291\t(1768)\t2059\n", "q10k_tbl_56": "\t\tIncorporated by Reference\t\t\t\nNumber\tExhibit Title\tForm\tFile No.\tFiling Date\tFiled Herewith\n10.1*\tXbox Console Publisher License Agreement dated as of September 30 2020 between Microsoft Corporation Electronic Arts Inc. and EA Swiss Sàrl\t\t\t\tX\n10.2*\tPlayStation 5 Amendment to the PlayStation Global Developer and Publisher Agreement dated as of October 15 2020 by and among Electronic Arts Inc. EA Swiss Sàrl Sony Interactive Entertainment Inc. Sony Interactive Entertainment LLC and Sony Interactive Entertainment Europe Limited\t\t\t\tX\n15.1\tAwareness Letter of KPMG LLP Independent Registered Public Accounting Firm\t\t\t\tX\n31.1\tCertification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\t\t\t\tX\n31.2\tCertification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002\t\t\t\tX\nAdditional exhibits furnished with this report:\t\t\t\t\t\n32.1\tCertification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\t\t\t\tX\n32.2\tCertification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\t\t\t\tX\n101.INS†\tXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\t\t\t\tX\n101.SCH†\tInline XBRL Taxonomy Extension Schema Document\t\t\t\tX\n101.CAL†\tInline XBRL Taxonomy Extension Calculation Linkbase Document\t\t\t\tX\n101.DEF†\tInline XBRL Taxonomy Extension Definition Linkbase Document\t\t\t\tX\n101.LAB†\tInline XBRL Taxonomy Extension Label Linkbase Document\t\t\t\tX\n101.PRE†\tInline XBRL Taxonomy Extension Presentation Linkbase Document\t\t\t\tX\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_3", "cf": "q10k_tbl_6"}None
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)
Delaware
94-2838567
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
209 Redwood Shores Parkway
94065
Redwood City
California
(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 Symbol
Name of Each Exchange on Which Registered
Common Stock, $0.01 par value
EA
NASDAQ 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.
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.
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.
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 funds
2,004
2,004
—
—
Cash equivalents
Available-for-sale securities:
Corporate bonds
526
—
526
—
Short-term investments and cash equivalents
U.S. Treasury securities
726
726
—
—
Short-term investments
U.S. agency securities
5
—
5
—
Short-term investments
Commercial paper
390
—
390
—
Short-term investments and cash equivalents
Foreign government securities
82
—
82
—
Short-term investments and cash equivalents
Asset-backed securities
240
—
240
—
Short-term investments and cash equivalents
Certificates of deposit
55
—
55
—
Short-term investments
Foreign currency derivatives
19
—
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
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 funds
1,599
1,599
—
—
Cash equivalents
Available-for-sale securities:
Corporate bonds
687
—
687
—
Short-term investments and cash equivalents
U.S. Treasury securities
603
603
—
—
Short-term investments and cash equivalents
U.S. agency securities
8
—
8
—
Short-term investments
Commercial paper
414
—
414
—
Short-term investments and cash equivalents
Foreign government securities
42
—
42
—
Short-term investments
Asset-backed securities
269
—
269
—
Short-term investments
Certificates of deposit
56
—
56
—
Short-term investments
Foreign currency derivatives
76
—
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):
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):