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Commitments And Contingencies
 3 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments And Contingencies
(11) 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 to promote the games we publish that may not be dependent on any deliverables. 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, 2022 (in millions):
Fiscal Years Ending March 31,
2023
(Remaining
Totalnine mos.)20242025202620272028Thereafter
Unrecognized commitments
Developer/licensor commitments$1,731 $240 $422 $428 $355 $78 $65 $143 
Marketing commitments810 172 234 199 123 53 8 21 
Senior Notes interest822 35 55 55 54 36 36 551 
Operating lease imputed interest30 6 6 5 3 2 2 6 
Operating leases not yet commenced (a)
121 — 4 8 13 11 9 76 
Other purchase obligations189 55 94 20 12 8 — — 
Total unrecognized commitments3,703 508 815 715 560 188 120 797 
Recognized commitments
Senior Notes principal and interest1,920 20 — — 400 — — 1,500 
Operating leases366 70 75 59 46 31 19 66 
Transition Tax and other taxes19 2 4 6 7 — — — 
Total recognized commitments2,305 92 79 65 453 31 19 1,566 
Total Commitments$6,008 $600 $894 $780 $1,013 $219 $139 $2,363 
(a)As of June 30, 2022, we have entered into office and equipment leases that have not yet commenced with aggregate future lease payments of approximately $121 million. These leases are expected to commence between fiscal year 2023 and fiscal year 2024, and will have lease terms ranging from 2 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, 2022; 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, 2022, we had a net liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $421 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, 2022, 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 $776 million at various dates through fiscal year 2034.
Legal Proceedings
We are 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.