Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2012

Fair Value Assets And Liabilities Measured On Recurring Basis


(a)	The deferred compensation plan assets consist of various mutual funds.

(b)

The contingent consideration as of September 30, 2012 and March 31, 2012 represents the estimated fair value of the additional variable cash consideration payable primarily in connection with our acquisitions of PopCap Games, Inc. (“PopCap”), KlickNation Corporation (“KlickNation”), and Chillingo Limited (“Chillingo”) that is contingent upon the achievement of certain performance milestones. We estimated the fair value of the acquisition-related contingent consideration payable using probability-weighted discounted cash flow models, and applied a discount rate that appropriately captures a market participant’s view of the risk associated with the obligation. The weighted average of the discount rates used during the six months ended September 30, 2012 was 13 percent. The weighted average of the discount rates used during fiscal year 2012, was 12 percent. The significant unobservable input used in the fair value measurement of the acquisition-related contingent consideration payable are forecasted earnings. Significant changes in forecasted earnings would result in a significantly higher or lower fair value measurement. At September 30, 2012 and March 31, 2012, the fair market value of acquisition-related contingent consideration totaled $88 million and $112 million, respectively, compared to a maximum potential payout of $568 million and $572 million, respectively.



			Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Financial Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
	As of March 31, 2012		(Level 1)		(Level 2)		(Level 3)		Balance Sheet Classification
Assets
Money market funds	$	490	$	490	$	—	$	—	Cash equivalents
Available-for-sale securities:
U.S. Treasury securities	170		170		—		—		Short-term investments and cash equivalents
Corporate bonds	150		—		150		—		Short-term investments
Marketable equity securities	119		119		—		—		Marketable equity securities
U.S. agency securities	116		—		116		—		Short-term investments
Commercial paper	16		—		16		—		Short-term investments and cash equivalents
Deferred compensation plan assets ^(a)	11		11		—		—		Other assets
Foreign currency derivatives	2		—		2		—		Other current assets
Total assets at fair value	$	1,074	$	790	$	284	$	—
Liabilities
Contingent consideration ^(b)	$	112	$	—	$	—	$	112	Accrued and other current liabilities and other liabilities
Total liabilities at fair value	$	112	$	—	$	—	$	112

As of September 30, 2012 and March 31, 2012, 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
			Quoted Prices in Active Markets for Identical Financial Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
	As of September 30, 2012		(Level 1)		(Level 2)		(Level 3)		Balance Sheet Classification
Assets
Money market funds	$	200	$	200	$	—	$	—	Cash equivalents
Available-for-sale securities:
Corporate bonds	180		—		180		—		Short-term investments
U.S. Treasury securities	95		95		—		—		Short-term investments
U.S. agency securities	74		—		74		—		Short-term investments and cash equivalents
Marketable equity securities	93		93		—		—		Marketable equity securities
Commercial paper	5		—		5		—		Short-term investments and cash equivalents
Deferred compensation plan assets ^(a)	11		11		—		—		Other assets
Foreign currency derivatives	1		—		1		—		Other current assets
Total assets at fair value	$	659	$	399	$	260	$	—
Liabilities
Contingent consideration ^(b)	$	88	$	—	$	—	$	88	Accrued and other current liabilities and other liabilities
Total liabilities at fair value	$	88	$	—	$	—	$	88

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Contingent Consideration
Balance as of March 31, 2011		$	51
Additions		100
Change in fair value ^(c)		11
Payment ^(d)		(25		)
Reclassification ^(e)		(25		)
Balance as of March 31, 2012		$	112



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Contingent Consideration
Balance as of March 31, 2012		$	112
Change in fair value ^(c)		(20		)
Payments ^(d)		(4		)
Balance as of September 30, 2012		$	88

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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