|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
OR
|
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from to .
|
Delaware
|
|
51-0350842
|
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
110 West 44th Street
|
|
10036
|
|
New York
|
New York
|
|
(Zip Code)
|
(Address of principal executive offices)
|
|
|
Title of each class
|
Trading symbol
|
Name of each exchange on which registered
|
Common Stock, $.01 par value
|
TTWO
|
NASDAQ Global Select Market
|
Large accelerated filer
|
ý
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
762,032
|
|
|
$
|
826,525
|
|
Short-term investments
|
742,613
|
|
|
744,485
|
|
||
Restricted cash and cash equivalents
|
668,371
|
|
|
565,461
|
|
||
Accounts receivable, net of allowances of $442 and $995 at September 30, 2019 and March 31, 2019, respectively
|
858,597
|
|
|
395,729
|
|
||
Inventory
|
39,293
|
|
|
28,200
|
|
||
Software development costs and licenses
|
62,328
|
|
|
28,880
|
|
||
Deferred cost of goods sold
|
36,426
|
|
|
51,867
|
|
||
Prepaid expenses and other
|
218,673
|
|
|
186,688
|
|
||
Total current assets
|
3,388,333
|
|
|
2,827,835
|
|
||
Fixed assets, net
|
129,168
|
|
|
127,882
|
|
||
Right-of-use assets
|
119,313
|
|
|
—
|
|
||
Software development costs and licenses, net of current portion
|
527,622
|
|
|
603,436
|
|
||
Deferred cost of goods sold, net of current portion
|
479
|
|
|
1,028
|
|
||
Goodwill
|
383,778
|
|
|
381,717
|
|
||
Other intangibles, net
|
61,159
|
|
|
73,115
|
|
||
Deferred tax assets
|
110,167
|
|
|
134,732
|
|
||
Other assets
|
95,092
|
|
|
93,320
|
|
||
Total assets
|
$
|
4,815,111
|
|
|
$
|
4,243,065
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
114,946
|
|
|
$
|
72,797
|
|
Accrued expenses and other current liabilities
|
1,251,196
|
|
|
1,035,695
|
|
||
Deferred revenue
|
901,813
|
|
|
843,302
|
|
||
Lease liabilities
|
22,273
|
|
|
—
|
|
||
Total current liabilities
|
2,290,228
|
|
|
1,951,794
|
|
||
Non-current deferred revenue
|
25,378
|
|
|
21,058
|
|
||
Non-current lease liabilities
|
118,789
|
|
|
—
|
|
||
Other long-term liabilities
|
198,953
|
|
|
229,633
|
|
||
Total liabilities
|
$
|
2,633,348
|
|
|
$
|
2,202,485
|
|
Commitments and contingencies (See Note 13)
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
|
|
||
Preferred stock, $.01 par value, 5,000 shares authorized; no shares issued and outstanding at September 30, 2019 and March 31, 2019
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, 200,000 shares authorized; 135,616 and 134,602 shares issued and 113,195 and 112,181 outstanding at September 30, 2019 and March 31, 2019, respectively
|
1,356
|
|
|
1,346
|
|
||
Additional paid-in capital
|
2,059,720
|
|
|
2,019,369
|
|
||
Treasury stock, at cost; 22,421 common shares at September 30, 2019 and March 31, 2019
|
(820,572
|
)
|
|
(820,572
|
)
|
||
Retained earnings
|
995,721
|
|
|
877,626
|
|
||
Accumulated other comprehensive loss
|
(54,462
|
)
|
|
(37,189
|
)
|
||
Total stockholders' equity
|
2,181,763
|
|
|
2,040,580
|
|
||
Total liabilities and stockholders' equity
|
$
|
4,815,111
|
|
|
$
|
4,243,065
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue
|
$
|
857,841
|
|
|
$
|
492,667
|
|
|
$
|
1,398,300
|
|
|
$
|
880,649
|
|
Cost of goods sold
|
468,248
|
|
|
234,880
|
|
|
709,717
|
|
|
366,245
|
|
||||
Gross profit
|
389,593
|
|
|
257,787
|
|
|
688,583
|
|
|
514,404
|
|
||||
Selling and marketing
|
149,566
|
|
|
94,165
|
|
|
241,387
|
|
|
152,471
|
|
||||
General and administrative
|
76,659
|
|
|
67,320
|
|
|
151,492
|
|
|
135,055
|
|
||||
Research and development
|
76,197
|
|
|
60,565
|
|
|
145,160
|
|
|
111,277
|
|
||||
Depreciation and amortization
|
12,024
|
|
|
9,751
|
|
|
23,281
|
|
|
19,011
|
|
||||
Business reorganization
|
327
|
|
|
—
|
|
|
713
|
|
|
(242
|
)
|
||||
Total operating expenses
|
314,773
|
|
|
231,801
|
|
|
562,033
|
|
|
417,572
|
|
||||
Income from operations
|
74,820
|
|
|
25,986
|
|
|
126,550
|
|
|
96,832
|
|
||||
Interest and other, net
|
8,054
|
|
|
4,975
|
|
|
18,479
|
|
|
11,576
|
|
||||
Income before income taxes
|
82,874
|
|
|
30,961
|
|
|
145,029
|
|
|
108,408
|
|
||||
Provision for income taxes
|
11,059
|
|
|
5,594
|
|
|
26,934
|
|
|
11,348
|
|
||||
Net income
|
$
|
71,815
|
|
|
$
|
25,367
|
|
|
$
|
118,095
|
|
|
$
|
97,060
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share
|
$
|
0.63
|
|
|
$
|
0.22
|
|
|
$
|
1.05
|
|
|
$
|
0.86
|
|
Diluted earnings per share
|
$
|
0.63
|
|
|
$
|
0.22
|
|
|
$
|
1.04
|
|
|
$
|
0.84
|
|
|
Three Months Ended
September 30, |
|
Six Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
71,815
|
|
|
$
|
25,367
|
|
|
$
|
118,095
|
|
|
$
|
97,060
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment
|
(12,567
|
)
|
|
2,482
|
|
|
(21,364
|
)
|
|
(24,335
|
)
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains
|
5,889
|
|
|
878
|
|
|
6,092
|
|
|
1,869
|
|
||||
Reclassification to earnings
|
(4,490
|
)
|
|
—
|
|
|
(3,408
|
)
|
|
—
|
|
||||
Tax effect on effective cash flow hedges
|
696
|
|
|
(24
|
)
|
|
687
|
|
|
109
|
|
||||
Change in fair value of effective cash flow hedge
|
2,095
|
|
|
854
|
|
|
3,371
|
|
|
1,978
|
|
||||
Change in fair value of available for sale securities
|
(2
|
)
|
|
481
|
|
|
720
|
|
|
890
|
|
||||
Other comprehensive (loss) income
|
(10,474
|
)
|
|
3,817
|
|
|
(17,273
|
)
|
|
(21,467
|
)
|
||||
Comprehensive income
|
$
|
61,341
|
|
|
$
|
29,184
|
|
|
$
|
100,822
|
|
|
$
|
75,593
|
|
|
Six Months Ended September 30,
|
||||||
|
2019
|
|
2018
|
||||
Operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
118,095
|
|
|
$
|
97,060
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||
Amortization and impairment of software development costs and licenses
|
72,505
|
|
|
20,269
|
|
||
Depreciation
|
23,037
|
|
|
18,753
|
|
||
Amortization and impairment of intellectual property
|
10,627
|
|
|
12,272
|
|
||
Stock-based compensation
|
113,199
|
|
|
54,941
|
|
||
Other, net
|
4,325
|
|
|
(1,614
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
(463,019
|
)
|
|
(233,236
|
)
|
||
Inventory
|
(12,064
|
)
|
|
(25,925
|
)
|
||
Software development costs and licenses
|
(51,932
|
)
|
|
(133,008
|
)
|
||
Prepaid expenses and other assets
|
(131,055
|
)
|
|
(6,681
|
)
|
||
Deferred revenue
|
66,148
|
|
|
12,601
|
|
||
Deferred cost of goods sold
|
15,287
|
|
|
6,867
|
|
||
Accounts payable, accrued expenses and other liabilities
|
379,005
|
|
|
(28,334
|
)
|
||
Net cash provided by (used in) operating activities
|
144,158
|
|
|
(206,035
|
)
|
||
Investing activities:
|
|
|
|
|
|
||
Change in bank time deposits
|
6,720
|
|
|
33,604
|
|
||
Proceeds from available-for-sale securities
|
137,071
|
|
|
114,266
|
|
||
Purchases of available-for-sale securities
|
(141,244
|
)
|
|
(95,888
|
)
|
||
Purchases of fixed assets
|
(25,532
|
)
|
|
(29,144
|
)
|
||
Purchase of long-term investment
|
(4,500
|
)
|
|
—
|
|
||
Business acquisitions
|
(8,715
|
)
|
|
(3,149
|
)
|
||
Net cash (used in) provided by investing activities
|
(36,200
|
)
|
|
19,689
|
|
||
Financing activities:
|
|
|
|
|
|
||
Tax payment related to net share settlements on restricted stock awards
|
(61,478
|
)
|
|
(63,967
|
)
|
||
Repurchase of common stock
|
—
|
|
|
(153,500
|
)
|
||
Net cash used in financing activities
|
(61,478
|
)
|
|
(217,467
|
)
|
||
Effects of foreign currency exchange rates on cash and cash equivalents
|
(8,063
|
)
|
|
(9,464
|
)
|
||
Net change in cash, cash equivalents, and restricted cash
|
38,417
|
|
|
(413,277
|
)
|
||
Cash, cash equivalents, and restricted cash, beginning of year
|
1,391,986
|
|
|
1,246,371
|
|
||
Cash, cash equivalents, and restricted cash, end of period
|
$
|
1,430,403
|
|
|
$
|
833,094
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Treasury Stock
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders' Equity |
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance, June 30, 2019
|
|
135,527
|
|
|
$
|
1,355
|
|
|
$
|
2,025,626
|
|
|
(22,421
|
)
|
|
$
|
(820,572
|
)
|
|
$
|
923,906
|
|
|
$
|
(43,988
|
)
|
|
$
|
2,086,327
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71,815
|
|
|
—
|
|
|
71,815
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,567
|
)
|
|
(12,567
|
)
|
||||||
Change in unrealized gains on cash flow hedge, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,095
|
|
|
2,095
|
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
43,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,455
|
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
164
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net share settlement of restricted stock awards
|
|
(75
|
)
|
|
(1
|
)
|
|
(9,359
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,360
|
)
|
||||||
Balance, September 30, 2019
|
|
135,616
|
|
|
$
|
1,356
|
|
|
$
|
2,059,720
|
|
|
(22,421
|
)
|
|
$
|
(820,572
|
)
|
|
$
|
995,721
|
|
|
$
|
(54,462
|
)
|
|
$
|
2,181,763
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Treasury Stock
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders' Equity |
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance, June 30, 2018
|
|
133,811
|
|
|
$
|
1,338
|
|
|
$
|
1,888,080
|
|
|
(20,302
|
)
|
|
$
|
(611,680
|
)
|
|
$
|
615,482
|
|
|
$
|
(41,015
|
)
|
|
$
|
1,852,205
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,367
|
|
|
—
|
|
|
25,367
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,481
|
|
|
2,481
|
|
||||||
Change in unrealized gains on cash flow hedge, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
854
|
|
|
854
|
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
481
|
|
|
481
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
63,433
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,433
|
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
94
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Conversion of 1.00% Convertible Notes Due 2018
|
|
241
|
|
|
2
|
|
|
5,180
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,182
|
|
||||||
Net share settlement of restricted stock awards
|
|
(40
|
)
|
|
—
|
|
|
(5,564
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,564
|
)
|
||||||
Balance, September 30, 2018
|
|
134,106
|
|
|
$
|
1,341
|
|
|
$
|
1,951,128
|
|
|
(20,302
|
)
|
|
$
|
(611,680
|
)
|
|
$
|
640,849
|
|
|
$
|
(37,199
|
)
|
|
$
|
1,944,439
|
|
|
|
Six Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Treasury Stock
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders' Equity |
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance, March 31, 2019
|
|
134,602
|
|
|
$
|
1,346
|
|
|
$
|
2,019,369
|
|
|
(22,421
|
)
|
|
$
|
(820,572
|
)
|
|
$
|
877,626
|
|
|
$
|
(37,189
|
)
|
|
$
|
2,040,580
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,095
|
|
|
—
|
|
|
118,095
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,364
|
)
|
|
(21,364
|
)
|
||||||
Change in unrealized gains on cash flow hedge, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,371
|
|
|
3,371
|
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
720
|
|
|
720
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
96,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96,706
|
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
1,503
|
|
|
15
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net share settlement of restricted stock awards
|
|
(551
|
)
|
|
(6
|
)
|
|
(61,472
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61,478
|
)
|
||||||
Employee share purchase plan settlement
|
|
62
|
|
|
1
|
|
|
5,132
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,133
|
|
||||||
Balance, September 30, 2019
|
|
135,616
|
|
|
$
|
1,356
|
|
|
$
|
2,059,720
|
|
|
(22,421
|
)
|
|
$
|
(820,572
|
)
|
|
$
|
995,721
|
|
|
$
|
(54,462
|
)
|
|
$
|
2,181,763
|
|
|
|
Six Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
|
Common Stock
|
|
Additional
Paid-in Capital |
|
Treasury Stock
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Stockholders' Equity |
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance, March 31, 2018
|
|
132,743
|
|
|
$
|
1,327
|
|
|
$
|
1,888,039
|
|
|
(18,705
|
)
|
|
$
|
(458,180
|
)
|
|
$
|
73,516
|
|
|
$
|
(15,732
|
)
|
|
$
|
1,488,970
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97,060
|
|
|
—
|
|
|
97,060
|
|
||||||
Change in cumulative foreign currency translation adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,989
|
)
|
|
(28,989
|
)
|
||||||
Change in unrealized gains on cash flow hedge, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,979
|
|
|
1,979
|
|
||||||
Net unrealized gain on available-for-sale securities, net of taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
890
|
|
|
890
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
118,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118,956
|
|
||||||
Repurchased common stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,597
|
)
|
|
(153,500
|
)
|
|
—
|
|
|
—
|
|
|
(153,500
|
)
|
||||||
Issuance of restricted stock, net of forfeitures and cancellations
|
|
1,532
|
|
|
15
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Conversion of 1.00% Convertible Notes Due 2018
|
|
378
|
|
|
4
|
|
|
8,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,113
|
|
||||||
Net share settlement of restricted stock awards
|
|
(547
|
)
|
|
(5
|
)
|
|
(63,961
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,966
|
)
|
||||||
Impact from adoption of New Revenue Accounting Standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
470,273
|
|
|
4,653
|
|
|
474,926
|
|
||||||
Balance, September 30, 2018
|
|
134,106
|
|
|
$
|
1,341
|
|
|
$
|
1,951,128
|
|
|
(20,302
|
)
|
|
$
|
(611,680
|
)
|
|
$
|
640,849
|
|
|
$
|
(37,199
|
)
|
|
$
|
1,944,439
|
|
•
|
The package of practical expedients, which allows us to carryforward our historical lease classification, our assessment of whether a contract is or contains a lease and our initial direct costs for any leases that exist prior to adoption of the new standard;
|
•
|
The practical expedient to not separate non-lease components from the related lease components; and
|
•
|
The exemption to not apply the balance sheet recognition requirements for leases with a lease term of 12 months or less and instead expense those costs on a straight-line basis over the lease term or in the period in which the obligation is incurred, if such costs are variable.
|
|
|
March 31, 2019
|
|
Adjustments
|
|
April 1, 2019
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Prepaid expenses and other
|
|
$
|
186,688
|
|
|
$
|
(792
|
)
|
|
$
|
185,896
|
|
Right-of-use assets
|
|
$
|
—
|
|
|
$
|
118,799
|
|
|
$
|
118,799
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||||||
Accrued expenses and other current liabilities
|
|
$
|
1,035,695
|
|
|
$
|
(2,976
|
)
|
|
$
|
1,032,719
|
|
Lease liabilities
|
|
$
|
—
|
|
|
$
|
18,937
|
|
|
$
|
18,937
|
|
Non-current lease liabilities
|
|
$
|
—
|
|
|
$
|
122,041
|
|
|
$
|
122,041
|
|
Other long-term liabilities
|
|
$
|
229,633
|
|
|
$
|
(19,995
|
)
|
|
$
|
209,638
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue recognized:
|
|
|
|
|
|
|
|
|
||||||||
Service and other
|
|
421,747
|
|
|
313,194
|
|
|
846,132
|
|
|
622,381
|
|
||||
Product
|
|
436,094
|
|
|
179,473
|
|
|
552,168
|
|
|
258,268
|
|
||||
Total net revenue
|
|
$
|
857,841
|
|
|
$
|
492,667
|
|
|
$
|
1,398,300
|
|
|
$
|
880,649
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue recognized:
|
|
|
|
|
|
|
|
|
||||||||
Full game and other
|
|
539,373
|
|
|
252,068
|
|
|
764,974
|
|
|
399,020
|
|
||||
Recurrent consumer spending
|
|
318,468
|
|
|
240,599
|
|
|
633,326
|
|
|
481,629
|
|
||||
Total net revenue
|
|
$
|
857,841
|
|
|
$
|
492,667
|
|
|
$
|
1,398,300
|
|
|
$
|
880,649
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue recognized:
|
|
|
|
|
|
|
|
|
||||||||
United States
|
|
$
|
494,661
|
|
|
$
|
279,306
|
|
|
$
|
825,140
|
|
|
$
|
500,717
|
|
International
|
|
363,180
|
|
|
213,361
|
|
|
573,160
|
|
|
379,932
|
|
||||
Total net revenue
|
|
$
|
857,841
|
|
|
$
|
492,667
|
|
|
$
|
1,398,300
|
|
|
$
|
880,649
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue recognized:
|
|
|
|
|
|
|
|
|
||||||||
Console
|
|
$
|
651,818
|
|
|
$
|
372,240
|
|
|
$
|
1,086,632
|
|
|
$
|
666,970
|
|
PC and other
|
|
206,023
|
|
|
120,427
|
|
|
311,668
|
|
|
213,679
|
|
||||
Total net revenue
|
|
$
|
857,841
|
|
|
$
|
492,667
|
|
|
$
|
1,398,300
|
|
|
$
|
880,649
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenue recognized:
|
|
|
|
|
|
|
|
|
||||||||
Digital online
|
|
$
|
615,774
|
|
|
$
|
358,371
|
|
|
$
|
1,043,555
|
|
|
$
|
673,418
|
|
Physical retail and other
|
|
242,067
|
|
|
134,296
|
|
|
354,745
|
|
|
207,231
|
|
||||
Total net revenue
|
|
$
|
857,841
|
|
|
$
|
492,667
|
|
|
$
|
1,398,300
|
|
|
$
|
880,649
|
|
|
Six Months Ended September 30,
|
||||
|
2019
|
|
2018
|
||
Time-based
|
92
|
|
|
86
|
|
Market-based(1)
|
168
|
|
|
158
|
|
Performance-based(1)
|
|
|
|
|
|
IP
|
28
|
|
|
27
|
|
Recurrent Consumer Spending ("RCS")
|
28
|
|
|
26
|
|
Total—Performance-based
|
56
|
|
|
53
|
|
Total Restricted Stock Units
|
316
|
|
|
297
|
|
(1)
|
Represents the maximum number of shares eligible to vest.
|
•
|
Level 1—Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.
|
|
September 30, 2019
|
|
Quoted prices
in active
markets for
identical
assets
(level 1)
|
|
Significant
other
observable
inputs
(level 2)
|
|
Significant
unobservable
inputs
(level 3)
|
|
Balance Sheet Classification
|
||||||||
Money market funds
|
$
|
320,146
|
|
|
$
|
320,146
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash and cash equivalents
|
Bank-time deposits
|
10,333
|
|
|
10,333
|
|
|
—
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Commercial paper
|
104,612
|
|
|
—
|
|
|
104,612
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Corporate bonds
|
2,565
|
|
|
—
|
|
|
2,565
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Corporate bonds
|
274,027
|
|
|
—
|
|
|
274,027
|
|
|
—
|
|
|
Short-term investments
|
||||
Bank-time deposits
|
381,000
|
|
|
381,000
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
US Treasuries
|
28,941
|
|
|
28,941
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Commercial paper
|
58,645
|
|
|
—
|
|
|
58,645
|
|
|
—
|
|
|
Short-term investments
|
||||
Money market funds
|
661,397
|
|
|
661,397
|
|
|
—
|
|
|
—
|
|
|
Restricted cash and cash equivalents
|
||||
Cross-currency swap
|
6,683
|
|
|
—
|
|
|
6,683
|
|
|
—
|
|
|
Prepaid expenses and other
|
||||
Private equity
|
2,066
|
|
|
—
|
|
|
—
|
|
|
2,066
|
|
|
Other assets
|
||||
Foreign currency forward contracts
|
(168
|
)
|
|
—
|
|
|
(168
|
)
|
|
—
|
|
|
Accrued expenses and other current liabilities
|
||||
Total recurring fair value measurements, net
|
$
|
1,850,247
|
|
|
$
|
1,401,817
|
|
|
$
|
446,364
|
|
|
$
|
2,066
|
|
|
|
|
March 31, 2019
|
|
Quoted prices in active markets for identical assets (level 1)
|
|
Significant other observable inputs (level 2)
|
|
Significant unobservable inputs (level 3)
|
|
Balance Sheet Classification
|
||||||||
Money market funds
|
$
|
389,936
|
|
|
$
|
389,936
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Cash and cash equivalents
|
Commercial paper
|
39,246
|
|
|
—
|
|
|
39,246
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
US Treasuries
|
25,449
|
|
|
25,449
|
|
|
—
|
|
|
—
|
|
|
Cash and cash equivalents
|
||||
Money market funds
|
565,461
|
|
|
565,461
|
|
|
—
|
|
|
—
|
|
|
Restricted cash and cash equivalents
|
||||
Bank-time deposits
|
387,720
|
|
|
387,720
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Corporate bonds
|
296,141
|
|
|
—
|
|
|
296,141
|
|
|
—
|
|
|
Short-term investments
|
||||
US Treasuries
|
55,634
|
|
|
55,634
|
|
|
—
|
|
|
—
|
|
|
Short-term investments
|
||||
Commercial paper
|
4,990
|
|
|
—
|
|
|
4,990
|
|
|
—
|
|
|
Short-term investments
|
||||
Cross-currency swap
|
791
|
|
|
—
|
|
|
791
|
|
|
—
|
|
|
Prepaid expenses and other
|
||||
Private equity
|
1,823
|
|
|
—
|
|
|
—
|
|
|
1,823
|
|
|
Other assets
|
||||
Foreign currency forward contracts
|
(423
|
)
|
|
—
|
|
|
(423
|
)
|
|
—
|
|
|
Accrued and other current liabilities
|
||||
Total recurring fair value measurements, net
|
$
|
1,766,768
|
|
|
$
|
1,424,200
|
|
|
$
|
340,745
|
|
|
$
|
1,823
|
|
|
|
|
September 30, 2019
|
||||||||||||||
|
|
|
Gross
Unrealized |
|
|
||||||||||
|
Cost or
Amortized Cost |
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank time deposits
|
$
|
381,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
381,000
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
272,758
|
|
|
1,286
|
|
|
(17
|
)
|
|
274,027
|
|
||||
US Treasuries
|
28,898
|
|
|
43
|
|
|
—
|
|
|
28,941
|
|
||||
Commercial paper
|
58,645
|
|
|
—
|
|
|
—
|
|
|
58,645
|
|
||||
Total Short-term investments
|
$
|
741,301
|
|
|
$
|
1,329
|
|
|
$
|
(17
|
)
|
|
$
|
742,613
|
|
|
March 31, 2019
|
||||||||||||||
|
|
|
Gross
Unrealized |
|
|
||||||||||
|
Cost or
Amortized Cost |
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
Short-term investments
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank time deposits
|
$
|
387,720
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
387,720
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate bonds
|
295,526
|
|
|
742
|
|
|
(127
|
)
|
|
296,141
|
|
||||
US Treasuries
|
55,656
|
|
|
27
|
|
|
(49
|
)
|
|
55,634
|
|
||||
Commercial paper
|
4,990
|
|
|
|
|
|
|
|
|
4,990
|
|
||||
Total short-term investments
|
$
|
743,892
|
|
|
$
|
769
|
|
|
$
|
(176
|
)
|
|
$
|
744,485
|
|
|
September 30, 2019
|
||||||
|
Amortized
Cost |
|
Fair
Value |
||||
Short-term investments
|
|
|
|
|
|
||
Due in 1 year or less
|
$
|
637,405
|
|
|
$
|
638,236
|
|
Due in 1 - 2 years
|
103,896
|
|
|
104,377
|
|
||
Total short-term investments
|
$
|
741,301
|
|
|
$
|
742,613
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
Forward contracts to sell foreign currencies
|
$
|
211,668
|
|
|
$
|
116,590
|
|
Forward contracts to purchase foreign currencies
|
40,512
|
|
|
87,793
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
Finished products
|
$
|
34,408
|
|
|
$
|
24,847
|
|
Parts and supplies
|
4,885
|
|
|
3,353
|
|
||
Inventory
|
$
|
39,293
|
|
|
$
|
28,200
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||||||||||
|
Current
|
|
Non-current
|
|
Current
|
|
Non-current
|
||||||||
Software development costs, internally developed
|
$
|
40,292
|
|
|
$
|
417,113
|
|
|
$
|
14,809
|
|
|
$
|
434,712
|
|
Software development costs, externally developed
|
10,690
|
|
|
108,077
|
|
|
3,655
|
|
|
168,381
|
|
||||
Licenses
|
11,346
|
|
|
2,432
|
|
|
10,416
|
|
|
343
|
|
||||
Software development costs and licenses
|
$
|
62,328
|
|
|
$
|
527,622
|
|
|
$
|
28,880
|
|
|
$
|
603,436
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
|
|
|
|
||||
Software development royalties
|
$
|
897,304
|
|
|
$
|
713,201
|
|
Licenses
|
82,354
|
|
|
56,221
|
|
||
Refund liability
|
73,278
|
|
|
65,853
|
|
||
Compensation and benefits
|
68,640
|
|
|
73,695
|
|
||
Marketing and promotions
|
45,365
|
|
|
42,390
|
|
||
Other
|
84,255
|
|
|
84,335
|
|
||
Accrued expenses and other current liabilities
|
$
|
1,251,196
|
|
|
$
|
1,035,695
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
Available borrowings
|
$
|
198,336
|
|
|
$
|
198,336
|
|
Outstanding letters of credit
|
1,664
|
|
|
1,664
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Computation of Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
71,815
|
|
|
$
|
25,367
|
|
|
$
|
118,095
|
|
|
$
|
97,060
|
|
Weighted average shares outstanding—basic
|
113,117
|
|
|
113,735
|
|
|
112,869
|
|
|
113,339
|
|
||||
Basic earnings per share
|
$
|
0.63
|
|
|
$
|
0.22
|
|
|
$
|
1.05
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
||||||||
Computation of Diluted earnings per share:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
71,815
|
|
|
$
|
25,367
|
|
|
$
|
118,095
|
|
|
$
|
97,060
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding—basic
|
113,117
|
|
|
113,735
|
|
|
112,869
|
|
|
113,339
|
|
||||
Add: dilutive effect of common stock equivalents
|
960
|
|
|
2,360
|
|
|
1,056
|
|
|
2,462
|
|
||||
Weighted average common shares outstanding—diluted
|
114,077
|
|
|
116,095
|
|
|
113,925
|
|
|
115,801
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
$
|
0.63
|
|
|
$
|
0.22
|
|
|
$
|
1.04
|
|
|
$
|
0.84
|
|
|
Six Months Ended September 30, 2019
|
||||||||||||||||||
|
Foreign
currency translation adjustments |
|
Unrealized
gain (loss) on forward contracts |
|
Unrealized
gain (loss) on cross-currency swap |
|
Unrealized
gain (loss) on available-for- sales securities |
|
Total
|
||||||||||
Balance at March 31, 2019
|
$
|
(33,090
|
)
|
|
$
|
600
|
|
|
$
|
(5,285
|
)
|
|
$
|
586
|
|
|
$
|
(37,189
|
)
|
Other comprehensive income (loss) before reclassifications
|
(21,364
|
)
|
|
—
|
|
|
6,779
|
|
|
720
|
|
|
(13,865
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
—
|
|
|
(3,408
|
)
|
|
—
|
|
|
(3,408
|
)
|
|||||
Balance at September 30, 2019
|
$
|
(54,454
|
)
|
|
$
|
600
|
|
|
$
|
(1,914
|
)
|
|
$
|
1,306
|
|
|
$
|
(54,462
|
)
|
|
Six Months Ended September 30, 2018
|
||||||||||||||||||
|
Foreign
currency translation adjustments |
|
Unrealized
gain (loss) on derivative instruments |
|
Unrealized
gain (loss) on cross-currency swap |
|
Unrealized
gain (loss) on available-for- sales securities |
|
Total
|
||||||||||
Balance at March 31, 2018
|
$
|
(4,287
|
)
|
|
$
|
600
|
|
|
$
|
(10,191
|
)
|
|
$
|
(1,854
|
)
|
|
$
|
(15,732
|
)
|
Other comprehensive income (loss) before reclassifications
|
(24,335
|
)
|
|
—
|
|
|
9,054
|
|
|
890
|
|
|
(14,391
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
—
|
|
|
(7,076
|
)
|
|
—
|
|
|
(7,076
|
)
|
|||||
Balance at September 30, 2018
|
$
|
(28,622
|
)
|
|
$
|
600
|
|
|
$
|
(8,213
|
)
|
|
$
|
(964
|
)
|
|
$
|
(37,199
|
)
|
|
|
Three Months Ended
September 30, 2019 |
|
Six Months Ended September 30, 2019
|
||||
Lease costs
|
|
|
|
|
||||
Operating lease costs
|
|
$
|
6,555
|
|
|
$
|
13,563
|
|
Short term lease costs
|
|
$
|
682
|
|
|
$
|
1,355
|
|
|
|
Six Months Ended September 30, 2019
|
||
Supplemental operating cash flow information
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
$
|
13,216
|
|
ROU assets obtained in exchange for lease obligations
|
|
$
|
11,625
|
|
|
|
At September 30, 2019
|
|
Weighted average information
|
|
|
|
Remaining lease term
|
|
8.0
|
|
Discount rate
|
|
5.0
|
%
|
For the years ending March 31,
|
|
|
||
Remaining 2020
|
|
$
|
13,251
|
|
2021
|
|
30,046
|
|
|
2022
|
|
28,497
|
|
|
2023
|
|
24,311
|
|
|
2024
|
|
17,073
|
|
|
Thereafter
|
|
58,581
|
|
|
Total future lease payments
|
|
171,759
|
|
|
Less imputed interest
|
|
(30,697
|
)
|
|
Total lease liabilities
|
|
$
|
141,062
|
|
Title
|
Publishing
Label |
|
Internal or External
Development |
|
Platform(s)
|
|
Date Released
|
Borderlands: Game of the Year Edition
|
2K
|
|
External
|
|
PS4, Xbox One, PC
|
|
April 3, 2019
|
NBA 2K Mobile
|
2K
|
|
Internal
|
|
Android
|
|
April 17, 2019
|
Ancestors: The Humankind Odyssey
|
Private Division
|
|
External
|
|
PC (digital only)
|
|
August 27, 2019
|
NBA 2K20
|
2K
|
|
Internal
|
|
PS4, Xbox One, Switch, PC, iOS, Android
|
|
September 6, 2019
|
Borderlands 3
|
2K
|
|
Internal / External
|
|
PS4, Xbox One, PC
|
|
September 13, 2019
|
Title
|
Publishing
Label |
|
Internal or External
Development |
|
Platform(s)
|
|
Expected Release Date
|
WWE 2K20
|
2K
|
|
Internal
|
|
PS4, Xbox One, PC
|
|
October 22, 2019 (released)
|
The Outer Worlds
|
Private Division
|
|
External
|
|
PS4, Xbox One, PC
|
|
October 25, 2019 (released)
|
Red Dead Redemption 2
|
Rockstar Games
|
|
Internal
|
|
PC
|
|
November 5,2019 (released)
|
Sid Meier's Civilization VI
|
2K
|
|
Internal
|
|
PS4, Xbox One
|
|
November 22, 2019
|
Red Dead Redemption 2
|
Rockstar Games
|
|
Internal / External
|
|
Google Stadia
|
|
November 2019
|
Borderlands 3
|
2K
|
|
Internal / External
|
|
Google Stadia
|
|
November 2019
|
NBA 2K20
|
2K
|
|
Internal
|
|
Google Stadia
|
|
November 2019
|
Ancestors: The Humankind Odyssey
|
Private Division
|
|
External
|
|
PS4, Xbox One
|
|
December 2019
|
Kerbal Space Program 2
|
Private Division
|
|
External
|
|
PC (digital only), PS4, Xbox One
|
|
Fiscal 2021
|
Disintegration
|
Private Division
|
|
External
|
|
TBA
|
|
Fiscal 2021
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
Increase/
(decrease) |
|
% Increase/
(decrease) |
|
2019
|
|
2018
|
|
Increase/
(decrease) |
|
% Increase/
(decrease) |
||||||||||||||
Net Bookings
|
|
$
|
950,516
|
|
|
$
|
583,421
|
|
|
$
|
367,095
|
|
|
62.9
|
%
|
|
$
|
1,372,756
|
|
|
$
|
871,746
|
|
|
$
|
501,010
|
|
|
57.5
|
%
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||||||||||||||
(thousands of dollars)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
Net revenue
|
$
|
857,841
|
|
|
100.0
|
%
|
|
$
|
492,667
|
|
|
100.0
|
%
|
|
$
|
1,398,300
|
|
|
100.0
|
%
|
|
$
|
880,649
|
|
|
100.0
|
%
|
Cost of goods sold
|
468,248
|
|
|
54.6
|
%
|
|
234,880
|
|
|
47.7
|
%
|
|
709,717
|
|
|
50.8
|
%
|
|
366,245
|
|
|
41.6
|
%
|
||||
Gross profit
|
389,593
|
|
|
45.4
|
%
|
|
257,787
|
|
|
52.3
|
%
|
|
688,583
|
|
|
49.2
|
%
|
|
514,404
|
|
|
58.4
|
%
|
||||
Selling and marketing
|
149,566
|
|
|
17.4
|
%
|
|
94,165
|
|
|
19.1
|
%
|
|
241,387
|
|
|
17.3
|
%
|
|
152,471
|
|
|
17.3
|
%
|
||||
General and administrative
|
76,659
|
|
|
8.9
|
%
|
|
67,320
|
|
|
13.7
|
%
|
|
151,492
|
|
|
10.8
|
%
|
|
135,055
|
|
|
15.3
|
%
|
||||
Research and development
|
76,197
|
|
|
8.9
|
%
|
|
60,565
|
|
|
12.3
|
%
|
|
145,160
|
|
|
10.4
|
%
|
|
111,277
|
|
|
12.6
|
%
|
||||
Depreciation and amortization
|
12,024
|
|
|
1.4
|
%
|
|
9,751
|
|
|
2.0
|
%
|
|
23,281
|
|
|
1.7
|
%
|
|
19,011
|
|
|
2.2
|
%
|
||||
Business reorganization
|
327
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
713
|
|
|
0.1
|
%
|
|
(242
|
)
|
|
—
|
%
|
||||
Total operating expenses
|
314,773
|
|
|
36.7
|
%
|
|
231,801
|
|
|
47.1
|
%
|
|
562,033
|
|
|
40.2
|
%
|
|
417,572
|
|
|
47.4
|
%
|
||||
Income from operations
|
74,820
|
|
|
8.7
|
%
|
|
25,986
|
|
|
5.3
|
%
|
|
126,550
|
|
|
9.1
|
%
|
|
96,832
|
|
|
11.0
|
%
|
||||
Interest and other, net
|
8,054
|
|
|
0.9
|
%
|
|
4,975
|
|
|
1.0
|
%
|
|
18,479
|
|
|
1.3
|
%
|
|
11,576
|
|
|
1.3
|
%
|
||||
Income before income taxes
|
82,874
|
|
|
9.7
|
%
|
|
30,961
|
|
|
6.3
|
%
|
|
145,029
|
|
|
10.4
|
%
|
|
108,408
|
|
|
12.3
|
%
|
||||
Provision for income taxes
|
11,059
|
|
|
1.3
|
%
|
|
5,594
|
|
|
1.1
|
%
|
|
26,934
|
|
|
1.9
|
%
|
|
11,348
|
|
|
1.3
|
%
|
||||
Net income
|
$
|
71,815
|
|
|
8.4
|
%
|
|
$
|
25,367
|
|
|
5.1
|
%
|
|
$
|
118,095
|
|
|
8.4
|
%
|
|
$
|
97,060
|
|
|
11.0
|
%
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
Net revenue by geographic region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
$
|
494,661
|
|
|
57.7
|
%
|
|
$
|
279,306
|
|
|
56.7
|
%
|
|
$
|
825,140
|
|
|
59.0
|
%
|
|
$
|
500,717
|
|
|
56.9
|
%
|
International
|
363,180
|
|
|
42.3
|
%
|
|
213,361
|
|
|
43.3
|
%
|
|
573,160
|
|
|
41.0
|
%
|
|
379,932
|
|
|
43.1
|
%
|
||||
Net revenue by platform:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Console
|
$
|
651,818
|
|
|
76.0
|
%
|
|
$
|
372,240
|
|
|
75.6
|
%
|
|
$
|
1,086,632
|
|
|
77.7
|
%
|
|
$
|
666,970
|
|
|
75.7
|
%
|
PC and other
|
206,023
|
|
|
24.0
|
%
|
|
120,427
|
|
|
24.4
|
%
|
|
311,668
|
|
|
22.3
|
%
|
|
213,679
|
|
|
24.3
|
%
|
||||
Net revenue by distribution channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Digital online
|
$
|
615,774
|
|
|
71.8
|
%
|
|
$
|
358,371
|
|
|
72.7
|
%
|
|
$
|
1,043,555
|
|
|
74.6
|
%
|
|
$
|
673,418
|
|
|
76.5
|
%
|
Physical retail and other
|
242,067
|
|
|
28.2
|
%
|
|
134,296
|
|
|
27.3
|
%
|
|
354,745
|
|
|
25.4
|
%
|
|
207,231
|
|
|
23.5
|
%
|
||||
Net revenue by content:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Full game and other
|
$
|
539,373
|
|
|
62.9
|
%
|
|
$
|
252,068
|
|
|
51.2
|
%
|
|
$
|
764,974
|
|
|
54.7
|
%
|
|
$
|
399,020
|
|
|
45.3
|
%
|
Recurrent consumer spending
|
318,468
|
|
|
37.1
|
%
|
|
240,599
|
|
|
48.8
|
%
|
|
633,326
|
|
|
45.3
|
%
|
|
481,629
|
|
|
54.7
|
%
|
(thousands of dollars)
|
2019
|
|
%
|
|
2018
|
|
%
|
|
Increase/
(decrease) |
|
% Increase/
(decrease) |
|||||||||
Net revenue
|
$
|
857,841
|
|
|
100.0
|
%
|
|
$
|
492,667
|
|
|
100.0
|
%
|
|
$
|
365,174
|
|
|
74.1
|
%
|
Software development costs and royalties(1)
|
211,996
|
|
|
24.7
|
%
|
|
42,648
|
|
|
8.7
|
%
|
|
169,348
|
|
|
397.1
|
%
|
|||
Internal royalties
|
109,991
|
|
|
12.8
|
%
|
|
82,113
|
|
|
16.7
|
%
|
|
27,878
|
|
|
34.0
|
%
|
|||
Product costs
|
86,568
|
|
|
10.1
|
%
|
|
55,885
|
|
|
11.3
|
%
|
|
30,683
|
|
|
54.9
|
%
|
|||
Licenses
|
59,693
|
|
|
7.0
|
%
|
|
54,234
|
|
|
11.0
|
%
|
|
5,459
|
|
|
10.1
|
%
|
|||
Cost of goods sold
|
468,248
|
|
|
54.6
|
%
|
|
234,880
|
|
|
47.7
|
%
|
|
233,368
|
|
|
99.4
|
%
|
|||
Gross profit
|
$
|
389,593
|
|
|
45.4
|
%
|
|
$
|
257,787
|
|
|
52.3
|
%
|
|
$
|
131,806
|
|
|
51.1
|
%
|
(1)
|
Includes $27,832 and $7,688 of stock-based compensation expense in 2019 and 2018, respectively, in software development costs and royalties.
|
(thousands of dollars)
|
2019
|
|
% of net
revenue |
|
2018
|
|
% of net revenue
|
|
Increase/
(decrease) |
|
% Increase/
(decrease) |
|||||||||
Selling and marketing
|
$
|
149,566
|
|
|
17.4
|
%
|
|
$
|
94,165
|
|
|
19.1
|
%
|
|
$
|
55,401
|
|
|
58.8
|
%
|
General and administrative
|
76,659
|
|
|
8.9
|
%
|
|
67,320
|
|
|
13.7
|
%
|
|
9,339
|
|
|
13.9
|
%
|
|||
Research and development
|
76,197
|
|
|
8.9
|
%
|
|
60,565
|
|
|
12.3
|
%
|
|
15,632
|
|
|
25.8
|
%
|
|||
Depreciation and amortization
|
12,024
|
|
|
1.4
|
%
|
|
9,751
|
|
|
2.0
|
%
|
|
2,273
|
|
|
23.3
|
%
|
|||
Business reorganization
|
327
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
327
|
|
|
100.0
|
%
|
|||
Total operating expenses(1)
|
$
|
314,773
|
|
|
36.7
|
%
|
|
$
|
231,801
|
|
|
47.1
|
%
|
|
$
|
82,972
|
|
|
35.8
|
%
|
(1)
|
Includes stock-based compensation expense, which was allocated as follows (in thousands):
|
|
2019
|
|
2018
|
||||
Selling and marketing
|
$
|
3,744
|
|
|
$
|
4,874
|
|
General and administrative
|
13,576
|
|
|
12,926
|
|
||
Research and development
|
10,615
|
|
|
4,854
|
|
(thousands of dollars)
|
2019
|
|
%
|
|
2018
|
|
%
|
|
Increase/
(decrease) |
|
% Increase/
(decrease) |
|||||||||
Net revenue
|
$
|
1,398,300
|
|
|
100.0
|
%
|
|
$
|
880,649
|
|
|
100.0
|
%
|
|
$
|
517,651
|
|
|
58.8
|
%
|
Software development costs and royalties(1)
|
320,437
|
|
|
22.9
|
%
|
|
72,436
|
|
|
8.2
|
%
|
|
248,001
|
|
|
342.4
|
%
|
|||
Internal royalties
|
172,880
|
|
|
12.4
|
%
|
|
135,280
|
|
|
15.4
|
%
|
|
37,600
|
|
|
27.8
|
%
|
|||
Product costs
|
134,203
|
|
|
9.6
|
%
|
|
94,026
|
|
|
10.7
|
%
|
|
40,177
|
|
|
42.7
|
%
|
|||
Licenses
|
82,197
|
|
|
5.9
|
%
|
|
64,503
|
|
|
7.3
|
%
|
|
17,694
|
|
|
27.4
|
%
|
|||
Cost of goods sold
|
709,717
|
|
|
50.8
|
%
|
|
366,245
|
|
|
41.6
|
%
|
|
343,472
|
|
|
93.8
|
%
|
|||
Gross profit
|
$
|
688,583
|
|
|
49.2
|
%
|
|
$
|
514,404
|
|
|
58.4
|
%
|
|
$
|
174,179
|
|
|
33.9
|
%
|
(1)
|
Includes $58,630 and $11,658 of stock-based compensation expense in 2019 and 2018, respectively, in software development costs and royalties.
|
(thousands of dollars)
|
2019
|
|
% of net
revenue |
|
2018
|
|
% of net revenue
|
|
Increase/
(decrease) |
|
% Increase/
(decrease) |
|||||||||
Selling and marketing
|
$
|
241,387
|
|
|
17.3
|
%
|
|
$
|
152,471
|
|
|
17.3
|
%
|
|
$
|
88,916
|
|
|
58.3
|
%
|
General and administrative
|
151,492
|
|
|
10.8
|
%
|
|
135,055
|
|
|
15.3
|
%
|
|
16,437
|
|
|
12.2
|
%
|
|||
Research and development
|
145,160
|
|
|
10.4
|
%
|
|
111,277
|
|
|
12.6
|
%
|
|
33,883
|
|
|
30.4
|
%
|
|||
Depreciation and amortization
|
23,281
|
|
|
1.7
|
%
|
|
19,011
|
|
|
2.2
|
%
|
|
4,270
|
|
|
22.5
|
%
|
|||
Business reorganization
|
713
|
|
|
0.1
|
%
|
|
(242
|
)
|
|
—
|
%
|
|
955
|
|
|
(394.6
|
)%
|
|||
Total operating expenses (1)
|
$
|
562,033
|
|
|
40.2
|
%
|
|
$
|
417,572
|
|
|
47.4
|
%
|
|
$
|
144,461
|
|
|
34.6
|
%
|
(1)
|
Includes stock-based compensation expense, which was allocated as follows (in thousands):
|
|
2019
|
2018
|
||||
General and administrative
|
$
|
27,143
|
|
$
|
24,444
|
|
Selling and marketing
|
10,220
|
|
9,648
|
|
||
Research and development
|
17,206
|
|
9,191
|
|
|
Six Months Ended
September 30, |
||||||
(thousands of dollars)
|
2019
|
|
2018
|
||||
Net cash provided by (used in) operating activities
|
$
|
144,158
|
|
|
$
|
(206,035
|
)
|
Net cash (used in) provided by investing activities
|
(36,200
|
)
|
|
19,689
|
|
||
Net cash used in financing activities
|
(61,478
|
)
|
|
(217,467
|
)
|
||
Effects of foreign currency exchange rates on cash and cash equivalents
|
(8,063
|
)
|
|
(9,464
|
)
|
||
Net change in cash, cash equivalents, and restricted cash
|
$
|
38,417
|
|
|
$
|
(413,277
|
)
|
Period
|
|
Shares
purchased
|
|
Average price
per share
|
|
Total number of
shares purchased
as part of publicly
announced plans
or programs
|
|
Maximum number
of shares that
may yet be
purchased under
the repurchase
program
|
|||||
July 1-31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
3,818
|
|
August 1-31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
3,818
|
|
September 1-30, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
3,818
|
|
Exhibits:
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
|
101.INS
|
|
The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
Inline XBRL Taxonomy Calculation Linkbase Document
|
101.LAB
|
|
Inline XBRL Taxonomy Label Linkbase Document
|
101.PRE
|
|
Inline XBRL Taxonomy Presentation Linkbase Document
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Document
|
|
|
TAKE-TWO INTERACTIVE SOFTWARE, INC.
(Registrant)
|
|
Date:
|
November 7, 2019
|
By:
|
/s/ STRAUSS ZELNICK
|
|
|
|
Strauss Zelnick
Chairman and Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
Date:
|
November 7, 2019
|
By:
|
/s/ LAINIE GOLDSTEIN
|
|
|
|
Lainie Goldstein
Chief Financial Officer
(Principal Financial Officer)
|
November 7, 2019
|
/s/ STRAUSS ZELNICK
|
|
Strauss Zelnick
Chairman and Chief Executive Officer |
November 7, 2019
|
/s/ LAINIE GOLDSTEIN
|
|
Lainie Goldstein
Chief Financial Officer |
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
November 7, 2019
|
/s/ STRAUSS ZELNICK
|
|
Strauss Zelnick
Chairman and Chief Executive Officer |
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
November 7, 2019
|
/s/ LAINIE GOLDSTEIN
|
|
Lainie Goldstein
Chief Financial Officer |