TAKE TWO INTERACTIVE SOFTWARE INCTTWO

TAKE TWO INTERACTIVE SOFTWARE INC Commitments Disclosure

10-KFiled May 22, 20262 min read
COMMITMENTS AND CONTINGENCIES
A summary of annual minimum contractual obligations and commitments as of March 31, 2026 is as follows:
Fiscal Year Ending March 31,Software
Development
and Licensing		MarketingPurchase ObligationsTotal
2027$61.1 $30.4 $232.2 $323.7 
202833.4 35.7 92.5 161.6 
202920.5 36.3 25.6 82.4 
203020.8 36.0 5.5 62.3 
203120.0 29.5 1.2 50.7 
Thereafter20.0 39.0 0.4 59.4 
Total$175.8 $206.9 $357.4 $740.1 
    Software Development and Licensing Agreements:    We make payments to third-party software developers that include contractual payments to developers under several software development agreements that expire at various times. Our aggregate outstanding software development commitments assume satisfactory performance by third-party software developers. We also have licensing commitments that primarily consist of obligations to holders of intellectual property rights for use of their trademarks, copyrights, technology or other intellectual property rights in the development of our products.
    Marketing Agreements:    We have certain minimum marketing support commitments where we commit to spend specified amounts related to marketing our products. Marketing commitments expire at various times and primarily reflect our agreements with major sports leagues and players' associations.
    Purchase Obligations:    These obligations are primarily related to agreements to purchase services that are enforceable and legally binding on us that specifies all significant terms, including fixed, minimum or variable pricing provisions; and the approximate timing of the transactions, expiring at various times.
    Employee Savings Plans:    For our U.S. employees we maintain a 401(k) retirement savings plan and trust. Our 401(k) plan is offered to all eligible employees and participants may make voluntary contributions. We also have various pension plans for our non-U.S. employees, some of which are required by local laws, and allow or require employer contributions. Employer contributions under all defined contribution and pension plans during the fiscal years ended March 31, 2026, 2025, and 2024 were $55.1, $51.4, and $43.0, respectively.
    Legal and Other Proceedings:    We are, or may become, subject to demands and claims (including intellectual property and employment related claims) and are involved in routine litigation in the ordinary course of business which we do not believe to be material to our business or financial condition or results of operations. We have appropriately accrued amounts related to certain of these claims and legal and other proceedings. While it is reasonably possible that a loss may be incurred in excess of the amounts accrued in our financial statements, we believe that such losses, unless otherwise disclosed, would not be material.

Historical Timeline

Fiscal YearFiled
2026May 22, 2026Showing above
2025May 20, 2025
2024May 22, 2024
2023May 26, 2023
2022May 17, 2022
2021May 19, 2021
2020May 22, 2020
2019May 14, 2019
2018May 17, 2018
2017May 24, 2017
2016May 19, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

Other Available Disclosures

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