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 sports organizations and other 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 the cash payments for flat fees, minimum guaranteed payments, and service payments. The majority of these commitments are conditional upon performance by the counterparty. These payments and any related marketing and development commitments are included in the table below.

The following table summarizes our minimum contractual obligations as of June 30, 2026 (in millions):


			Fiscal Years Ending March 31,


	Total		2027 (remaining nine mos.)		2028		2029		2030		2031		2032		Thereafter
Unrecognized commitments
Developer/licensor commitments	$	2,136	$	245	$	474	$	459	$	447	$	387	$	61	$	63
Marketing commitments	1,210		178		291		245		210		230		21		35
Senior Notes interest	609		23		36		36		36		36		22		420
Operating lease imputed interest	70		12		14		11		10		8		6		9

Other purchase obligations	860		236		310		277		29		8		—		—
Total unrecognized commitments	4,885		694		1,125		1,028		732		669		110		527

Recognized commitments
Senior Notes principal and interest	1,514		14		—		—		—		750		—		750
Operating leases	385		45		63		46		34		45		41		111


Total recognized commitments	1,899		59		63		46		34		795		41		861

Total Commitments	$	6,784	$	753	$	1,188	$	1,074	$	766	$	1,464	$	151	$	1,388

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, 2026; however, certain payment obligations may be accelerated depending on the performance of our operating results.

In addition to the amounts included in the table above, in our Condensed Consolidated Balance Sheets as of June 30, 2026, we had a net liability for unrecognized tax benefits and related interest totaling $690 million. While it is reasonably possible that material reduction of unrecognized tax benefits may occur within the next 12 months, the actual amount could vary significantly depending on the ultimate timing and nature of any settlements and tax interpretations.

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.