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Commitments And Contingencies
 3 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies
(12) COMMITMENTS AND CONTINGENCIES
Development, Celebrity, League and Content Licenses: Payments and Commitments
The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers (“independent artists” or “third-party developers”). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers.
In addition, we have certain celebrity, league and content license contracts that contain minimum guarantee payments and marketing commitments that may not be dependent on any deliverables. Celebrities and organizations with whom we have contracts include, but are not limited to: FIFA (Fédération Internationale de Football Association), FIFPRO Foundation, FAPL (Football Association Premier League Limited), DFL Deutsche Fußball Liga E.V. (German Soccer League), and Liga Nacional De Futbol Profesional (professional soccer); National Basketball Association and National Basketball Players Association (professional basketball); National Hockey League and NHL Players’ Association (professional hockey); NFL Properties LLC, NFL Players Association and NFL Players Inc. on behalf of OneTeam Partners, LLC (professional football); William Morris Endeavor Entertainment LLC (professional mixed martial arts); ESPN (content in EA SPORTS games); Disney Interactive (Star Wars); Formula One Digital Media Limited and Formula Motorsport Limited (professional racing); PGA Tour, Inc. (professional golf); MLB (Major League Baseball Players Association); and Kimsaprincess, Inc. (Kim Kardashian: Hollywood). These developer and content license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the minimum guaranteed payments and advances against royalties due under royalty-bearing licenses and services agreements, the majority of which are conditional upon performance by the counterparty. These minimum guarantee payments and any related marketing commitments are included in the table below.
The following table summarizes our minimum contractual obligations as of June 30, 2021 (in millions):
Fiscal Years Ending March 31,
2022
(Remaining
Totalnine mos.)20232024202520262027Thereafter
Unrecognized commitments
Developer/licensor commitments$1,938 $241 $390 $399 $389 $296 $60 $163 
Marketing commitments662 126 144 138 125 87 11 31 
Senior Notes interest877 35 55 55 55 54 36 587 
Operating lease imputed interest32 6 6 5 3 3 2 7 
Operating leases not yet commenced (a)
166 6 7 9 8 14 13 109 
Other purchase obligations220 31 50 132 5 2 — — 
Total unrecognized commitments3,895 445 652 738 585 456 122 897 
Recognized commitments
Senior Notes principal and interest1,920 20 — — — 400 — 1,500 
Operating leases323 57 58 49 40 34 22 63 
Transition Tax and other taxes44 24 3 4 6 7 — — 
Licensing commitments21 21 — — — — — — 
Total recognized commitments2,308 122 61 53 46 441 22 1,563 
Total Commitments$6,203 $567 $713 $791 $631 $897 $144 $2,460 
(a)As of June 30, 2021, we have entered into four office leases and one equipment lease that have not yet commenced with aggregate future lease payments of approximately $166 million. These leases are expected to commence between fiscal year 2022 and fiscal year 2025, and will have lease terms ranging from 3 to 12 years.
The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Condensed Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of June 30, 2021; however, certain payment obligations may be accelerated depending on the performance of our operating results.
In addition to what is included in the table above, as of June 30, 2021, we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $299 million, of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur.
Subsequent to June 30, 2021, we entered into licensor and office lease agreements with third parties which are not included in the table above, and contingently commit us to pay an additional $280 million at various dates through fiscal year 2030.
Legal Proceedings
The Netherlands Gambling Authority (“NGA”) has asserted that the randomized selection of virtual items in the FIFA Ultimate Team mode of our FIFA franchise contravenes the Dutch Betting and Gaming Act. On October 15, 2020, the District Court of the Hague affirmed the NGA’s decision. We have appealed the District Court’s order, and the NGA’s decision is suspended through the appeals process. We do not believe that the operational or financial consequences from these proceedings will have a material adverse effect on our Condensed Consolidated Financial Statements. We do not believe that our products and services violate applicable gambling laws.
We are also subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Condensed Consolidated Financial Statements.