Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2019

Fair Value, Assets Measured on Recurring Basis [Table Text Block]



			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, 2019		(Level 1)		(Level 2)		(Level 3)		Balance Sheet Classification
Assets
Bank and time deposits	$	23	$	23	$	—	$	—	Cash equivalents
Money market funds	2,704		2,704		—		—		Cash equivalents
Available-for-sale securities:
Corporate bonds	327		—		327		—		Short-term investments and cash equivalents
U.S. Treasury securities	294		294		—		—		Short-term investments and cash equivalents
U.S. agency securities	57		—		57		—		Short-term investments and cash equivalents
Commercial paper	233		—		233		—		Short-term investments and cash equivalents
Foreign government securities	58		—		58		—		Short-term investments and cash equivalents
Asset-backed securities	55		—		55		—		Short-term investments and cash equivalents
Certificates of deposit	2		—		2		—		Short-term investments and cash equivalents
Foreign currency derivatives	33		—		33		—		Other current assets and other assets
Deferred compensation plan assets ^(a)	11		11		—		—		Other assets
Total assets at fair value	$	3,797	$	3,032	$	765	$	—
Liabilities
Contingent consideration ^(b)	$	136	$	—	$	—	$	136	Accrued and other current liabilities
Foreign currency derivatives	16		—		16		—		Accrued and other current liabilities and other liabilities
Deferred compensation plan liabilities ^(a)	12		12		—		—		Other liabilities
Total liabilities at fair value	$	164	$	12	$	16	$	136


(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, 2019, for additional information regarding our Deferred Compensation Plan.

(b)

The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. We estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation. At June 30, 2019, the discount rates used ranged from 2.6 percent to 2.7 percent. There were no material changes in the fair value of the contingent consideration during the three months ended June 30, 2019. At March 31, 2019, the discount rates used ranged from 2.9 percent to 3.1 percent. See Note 7 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019, for additional information regarding the Respawn acquisition.


(c)	The change in fair value is reported as acquisition-related contingent consideration in our Condensed Consolidated Statements of Operations.

(d) During the three months ended June 30, 2019, we paid $35 million for a performance milestone achieved in connection with our acquisition of Respawn.

As of June 30, 2019 and March 31, 2019, 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 June 30, 2019		(Level 1)		(Level 2)		(Level 3)		Balance Sheet Classification
Assets
Bank and time deposits	$	24	$	24	$	—	$	—	Cash equivalents
Money market funds	1,319		1,319		—		—		Cash equivalents
Available-for-sale securities:
Corporate bonds	660		—		660		—		Short-term investments and cash equivalents
U.S. Treasury securities	584		584		—		—		Short-term investments and cash equivalents
U.S. agency securities	31		—		31		—		Short-term investments
Commercial paper	480		—		480		—		Short-term investments and cash equivalents
Foreign government securities	48		—		48		—		Short-term investments
Asset-backed securities	242		—		242		—		Short-term investments
Certificates of deposit	22		—		22		—		Short-term investments and cash equivalents
Foreign currency derivatives	36		—		36		—		Other current assets and other assets
Deferred compensation plan assets ^(a)	12		12		—		—		Other assets
Total assets at fair value	$	3,458	$	1,939	$	1,519	$	—
Liabilities
Contingent consideration ^(b)	$	102	$	—	$	—	$	102	Accrued and other current liabilities
Foreign currency derivatives	5		—		5		—		Accrued and other current liabilities and other liabilities
Deferred compensation plan liabilities ^(a)	13		13		—		—		Other liabilities
Total liabilities at fair value	$	120	$	13	$	5	$	102

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Contingent Consideration
Balance as of March 31, 2019		$	136
Change in fair value ^(c)		1
Payment ^(d)		(35		)
Balance as of June 30, 2019		$	102