Finite-Lived Intangible Assets, Amortization Expense, after Year Five

Table of ContentsAs of June 30, 2022, future amortization of finite-lived acquisition-related intangibles that will be recorded in the Condensed Consolidated Statements of Operations is estimated as follows (in millions):

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Fiscal Year Ending March 31, |   |
| 2023 (remaining nine months) | $ | 176  |  |
| 2024 | 159  |  |
| 2025 | 125  |  |
| 2026 | 122  |  |
| 2027 | 102  |  |
| 2028 | 99  |  |
| 2029 and thereafter | 30  |  |
| Total | $ | 813  |  |

  
(7) ROYALTIES AND LICENSESOur royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and distribution affiliates. License royalties consist of payments made to celebrities, professional sports organizations, movie studios and other organizations for our use of their trademarks, copyrights, personal publicity rights, content and/or other intellectual property. Royalty payments to independent software developers are payments for the development of intellectual property related to our games. Co-publishing and distribution royalties are payments made to third parties for the delivery of products.During the three months ended June 30, 2022 and 2021, we did not recognize any material losses or impairment charges on royalty-based commitments.The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of June 30, 2022 |  | As of March 31, 2022 |
| Other current assets | $ | 78  |  |  | $ | 35  |  |
| Other assets | 27  |  |  | 28  |  |
| Royalty-related assets | $ | 105  |  |  | $ | 63  |  |

At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates, content licensors, and/or independent software developers, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | As of June 30, 2022 |  | As of March 31, 2022 |
| Accrued royalties | $ | 151  |  |  | $ | 203  |  |
| Other liabilities | 2  |  |  | 3  |  |
| Royalty-related liabilities | $ | 153  |  |  | $ | 206  |  |

As of June 30, 2022, we were committed to pay approximately $1,731 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty (i.e., delivery of the product or content or other factors) and such commitments were therefore not recorded in our Condensed Consolidated Financial Statements. See [Note 11](#i6efa26463c58454a970ef323243122cf_70) for further information on our developer and licensor commitments.  
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