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Licenses and Software Development
9 Months Ended
Dec. 31, 2011
Licenses and Software Development [Abstract]  
License and Software Development [Text Block]
Licenses and Software Development

Licenses. As of December 31, 2011 and March 31, 2011, the net carrying value of our licenses was $97.6 million and $118.2 million, respectively, and was reflected as “Licenses” and “Licenses, net of current portion” in our condensed consolidated balance sheets. At December 31, 2011, we had commitments of $0.3 million that are not reflected in our condensed consolidated balance sheet due to remaining performance obligations of the licensor. License amortization and royalties expense in the nine months ended December 31, 2011 included a $16.0 million charge related to the abandonment of a license for an unannounced game that was cancelled in connection with a studio closure (see "Note 5Restructuring and Other Charges”). Subsequent to December 31, 2011, we entered into agreements with two of our licensors that resulted in a reduction of our prepaid license asset balance (see "Note 15Subsequent Events" for further details).

Software Development. As of December 31, 2011 and March 31, 2011, the net carrying value of our software development was $190.4 million and $272.5 million, respectively, and was reflected as “Software development” and “Software development, net of current portion” in our condensed consolidated balance sheets. At December 31, 2011 we had commitments of $76.0 million that are not reflected in our condensed consolidated financial statements due to remaining performance obligations of the external developers. Software amortization and royalties expense in the three and nine months ended December 31, 2011 included charges of $3.2 million and $22.1 million, respectively, related to the write-offs of capitalized software development for titles that were cancelled in connection with our realignment plans (see "Note 5Restructuring and Other Charges”). In the three months ended December 31, 2010, we recorded a $9.9 million charge related to cancelled titles (see "Note 5Restructuring and Other Charges").  Subsequent to December 31, 2011, we entered into an agreement with one of our licensors that resulted in a reduction of our capitalized software development balance (see "Note 15Subsequent Events" for further details).

Impairment analysis. We evaluate the future recoverability of our capitalized licenses and software development on a quarterly basis in connection with the preparation of our financial statements.  In this evaluation, we compare the carrying value of such capitalized costs to their net realizable value, on a product-by-product basis.  The net realizable value is determined using Level 3 inputs, specifically, the estimated future net sales from the product, reduced by the estimated future direct costs associated with the product such as completion costs, cost of sales, and selling and marketing expenses.  Net sales inputs are developed using recent internal sales performance for similar titles, adjusted for current market trends and comparable products. As certain of our licenses extend for multiple products over multiple years, we also assess the recoverability of capitalized license costs based on certain qualitative factors such as the success of other products and/or entertainment vehicles utilizing the intellectual property, whether there are any future planned theatrical releases or television series based on the intellectual property and the rights holder's continued promotion and exploitation of the intellectual property.

In the three and nine months ended December 31, 2010 we had license impairment charges of $30.3 million and $36.2 million, respectively; these charges were related to several of our unreleased kids' movie-based licensed titles.

In the nine months ended December 31, 2011 we recorded a software development impairment charge of $0.6 million related to one of our titles. In the nine months ended December 31, 2010 we recognized software development impairment charges of $7.0 million.