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Business Combinations
12 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Business Combinations
(6) BUSINESS COMBINATIONS
Respawn Entertainment, LLC
On December 1, 2017, we completed our acquisition of Respawn Entertainment, LLC (“Respawn”), a leading game development studio and creators of games including the critically-acclaimed Titanfall franchise. The total purchase price was $273 million, which consisted of $151 million in cash and the acquisition date fair value of contingent consideration of $122 million. The purchase price was allocated to Respawn’s net tangible and intangible assets based upon their estimated fair values as of December 1, 2017, resulting in $171 million being allocated to goodwill that consists largely of workforce and synergies with our existing business, all of which is expected to be deductible for tax purposes; $74 million being allocated to intangible assets acquired; and $28 million being allocated to net tangible assets acquired. During the fourth quarter of fiscal 2018, we finalized the fair values assigned to the Respawn assets acquired and liabilities assumed. The difference between the preliminary estimates recognized during the third quarter of fiscal 2018 and the final amounts were not material.
The payment of the contingent consideration is based on the achievement of certain performance milestones through the end of calendar year 2022 at the latest. The maximum amount of contingent consideration we may be required to pay is $140 million. The fair value of the contingent consideration is included in other liabilities on our Consolidated Balance Sheet. As of March 31, 2018, there were no significant changes in the range of expected outcomes for the contingent consideration from the acquisition date.
Subsequent to the acquisition, we also granted an aggregate of $167 million of restricted stock unit awards of our common stock to Respawn employees that will be recognized over a four year period as stock-based compensation expense in research and development in our Consolidated Statements of Operations. The fair value of these equity awards was based on the quoted market price of our common stock on the date of grant.
The results of operations of Respawn and the fair value of the assets acquired and liabilities assumed have been included in our Consolidated Financial Statements since the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was not material to our Consolidated Statements of Operations.

During the fiscal years ended March 31, 2017 and 2016, there were no acquisitions.

Subsequent to the fiscal year ended March 31, 2018, we acquired cloud gaming technology assets and personnel from a wholly-owned subsidiary of Gamefly, Inc. based in Israel for total cash consideration of approximately $50 million and up to $4 million in long-term equity in the form of restricted stock units to certain employees.