TAKE TWO INTERACTIVE SOFTWARE INCTTWO
TAKE TWO INTERACTIVE SOFTWARE INC Fair Value Disclosure
FAIR VALUE MEASUREMENTS
Recurring fair value measurements
The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, prepaid expenses and other, accounts payable, and accrued expenses and other current liabilities, approximate fair value because of their short maturities.
We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows:
•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.
The table below segregates all assets and liabilities that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.
| March 31, 2026 | ||||||||||||||||||||||||||
| Quoted prices in active markets for identical assets (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | Total | |||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | $ | 909.0 | $ | — | $ | — | $ | 909.0 | ||||||||||||||||||
| Bank-time deposits | 204.5 | — | — | 204.5 | ||||||||||||||||||||||
| Short-term investments: | ||||||||||||||||||||||||||
| Bank-time deposits | 443.8 | — | — | 443.8 | ||||||||||||||||||||||
| Restricted cash and cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | 11.9 | — | — | 11.9 | ||||||||||||||||||||||
| Bank-time deposits | 1.2 | — | — | 1.2 | ||||||||||||||||||||||
| Restricted cash and cash equivalents, long term: | ||||||||||||||||||||||||||
| Money market funds | 79.4 | — | — | 79.4 | ||||||||||||||||||||||
| Other assets: | ||||||||||||||||||||||||||
| Private equity | — | — | 23.6 | 23.6 | ||||||||||||||||||||||
| Equity securities | 9.3 | — | — | 9.3 | ||||||||||||||||||||||
| Foreign currency forward contracts | — | 0.2 | — | 0.2 | ||||||||||||||||||||||
| Total financial assets | $ | 1,659.1 | $ | 0.2 | $ | 23.6 | $ | 1,682.9 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Short-term debt, net: | ||||||||||||||||||||||||||
| Convertible notes | — | 30.0 | — | 30.0 | ||||||||||||||||||||||
| Total financial liabilities | $ | — | $ | 30.0 | $ | — | $ | 30.0 | ||||||||||||||||||
| March 31, 2025 | ||||||||||||||||||||||||||
| Quoted prices in active markets for identical assets (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | Total | |||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash and cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | $ | 842.6 | $ | — | $ | — | $ | 842.6 | ||||||||||||||||||
| Bank-time deposits | 296.4 | — | — | 296.4 | ||||||||||||||||||||||
| Short-term investments: | ||||||||||||||||||||||||||
| Bank-time deposits | 9.4 | — | — | 9.4 | ||||||||||||||||||||||
| Restricted cash and cash equivalents: | ||||||||||||||||||||||||||
| Money market funds | 12.0 | — | — | 12.0 | ||||||||||||||||||||||
| Bank-time deposits | 1.9 | — | — | 1.9 | ||||||||||||||||||||||
| Restricted cash and cash equivalents, long term: | ||||||||||||||||||||||||||
| Money market funds | 88.2 | — | — | 88.2 | ||||||||||||||||||||||
| Other assets: | ||||||||||||||||||||||||||
| Equity securities | 7.3 | — | — | 7.3 | ||||||||||||||||||||||
| Private equity | — | — | 24.3 | 24.3 | ||||||||||||||||||||||
| Total financial assets | $ | 1,257.8 | $ | — | $ | 24.3 | $ | 1,282.1 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Accrued expenses and other current liabilities: | ||||||||||||||||||||||||||
| Foreign currency forward contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||||||||||
| Long-term debt, net: | ||||||||||||||||||||||||||
| Convertible notes | — | 28.5 | — | 28.5 | ||||||||||||||||||||||
| Total financial liabilities | $ | — | $ | 28.6 | $ | — | $ | 28.6 | ||||||||||||||||||
We did not have any transfers between Level 1 and Level 2 fair value measurements, nor did we have any transfers into or out of Level 3 during the fiscal year ended March 31, 2026.
Nonrecurring fair value measurements
We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the privately-held affiliates, and we do not maintain significant influence over or control of the entities. We have elected the practical expedient in Topic 321, Investments-Equity Securities, to measure these investments at cost less any impairment, adjusted for observable price changes, if any. Based on these considerations, we estimate that the carrying value of the acquired shares represents the fair value of the investment. At March 31, 2026 and March 31, 2025, we held $18.5 and $8.0, respectively, of such investments in Other assets within our Consolidated Balance Sheet.
See Note 9 - Goodwill and Intangible Assets, Net for goodwill and intangible related fair value measurements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 22, 2026 | Showing above |
| 2025 | May 20, 2025 | |
| 2024 | May 22, 2024 | |
| 2023 | May 26, 2023 | |
| 2022 | May 17, 2022 | |
| 2021 | May 19, 2021 | |
| 2020 | May 22, 2020 | |
| 2019 | May 14, 2019 | |
| 2018 | May 17, 2018 | |
| 2017 | May 24, 2017 | |
| 2016 | May 19, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.