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|        |                                                                                         |
|--------|-----------------------------------------------------------------------------------------|
| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|        |                                                                                          |
|--------|------------------------------------------------------------------------------------------|
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |
| Delaware                                                      | 94-2838567 |
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |
|                                                          |   |
| 209 Redwood Shores ParkwayRedwood City, California            | 94065 |
| (Address of principal executive offices)                      | (Zip Code) |

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |
| Large accelerated filer                                                                               | þ | Accelerated filer                    | ¨ |
| Non-accelerated filer(Do not check if a smaller reporting company) | ¨ | Smaller reporting company  | ¨ |

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Table of Contents

|                                |
|--------------------------------|
|                                |  |  |
|                           |   | Page |
| Part I - FINANCIAL INFORMATION |   |
| Item 1.                   | Condensed Consolidated Financial Statements (Unaudited) |   |
|                           | Condensed Consolidated Balance Sheets as of December 31, 2016 and March 31, 2016 | 3 |
|                           | Condensed Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2016 and 2015 | 4 |
|                           | Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 31, 2016 and 2015 | 5 |
|                           | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2016 and 2015 | 6 |
|                           | Notes to Condensed Consolidated Financial Statements | 7 |
|                           | Report of Independent Registered Public Accounting Firm | 28 |
| Item 2.                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 29 |
| Item 3.                   | Quantitative and Qualitative Disclosures About Market Risk | 48 |
| Item 4.                   | Controls and Procedures | 50 |
|                           |   |   |
| Part II - OTHER INFORMATION    |   |
| Item 1.                   | Legal Proceedings | 51 |
| Item 1A.                  | Risk Factors | 51 |
| Item 2.                   | Unregistered Sales of Equity Securities and Use of Proceeds | 60 |
| Item 3.                   | Defaults Upon Senior Securities | 60 |
| Item 4.                   | Mine Safety Disclosures | 60 |
| Item 6.                   | Exhibits | 60 |
| Signature                      | 61 |
| Exhibit Index                  | 62 |

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|         |                                                         |
|---------|---------------------------------------------------------|
| Item 1. | Condensed Consolidated Financial Statements (Unaudited) |

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |
| (Unaudited)(In millions, except par value data)                                                                 | December 31, 2016 |   | March 31, 2016 (a) |
| ASSETS                                                                                                          |   |   |   |
| Current assets:                                                                                                 |   |   |   |
| Cash and cash equivalents                                                                                       | $ | 2,483 |  |   | $ | 2,493 |  |
| Short-term investments                                                                                          | 1,736 |  |   | 1,341 |  |
| Receivables, net of allowances of $196 and $159, respectively                                                   | 587 |  |   | 233 |  |
| Inventories                                                                                                     | 35 |  |   | 33 |  |
| Other current assets                                                                                            | 260 |  |   | 254 |  |
| Total current assets                                                                                            | 5,101 |  |   | 4,354 |  |
| Property and equipment, net                                                                                     | 424 |  |   | 439 |  |
| Goodwill                                                                                                        | 1,704 |  |   | 1,710 |  |
| Acquisition-related intangibles, net                                                                            | 9 |  |   | 57 |  |
| Deferred income taxes, net                                                                                      | 386 |  |   | 387 |  |
| Other assets                                                                                                    | 95 |  |   | 103 |  |
| TOTAL ASSETS                                                                                                    | $ | 7,719 |  |   | $ | 7,050 |  |
|                                                                                                            |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                      |   |   |   |
| Current liabilities:                                                                                            |   |   |   |
| Accounts payable                                                                                                | $ | 65 |  |   | $ | 89 |  |
| Accrued and other current liabilities                                                                           | 901 |  |   | 710 |  |
| 0.75% convertible senior notes due 2016, net                                                                    | — |  |   | 161 |  |
| Deferred net revenue (online-enabled games)                                                                     | 1,971 |  |   | 1,458 |  |
| Total current liabilities                                                                                       | 2,937 |  |   | 2,418 |  |
| Senior notes, net                                                                                               | 990 |  |   | 989 |  |
| Income tax obligations                                                                                          | 87 |  |   | 80 |  |
| Deferred income taxes, net                                                                                      | 2 |  |   | 2 |  |
| Other liabilities                                                                                               | 154 |  |   | 163 |  |
| Total liabilities                                                                                               | 4,170 |  |   | 3,652 |  |
| Commitments and contingencies (See Note 11)                                                                     |  |   |  |
| 0.75% convertible senior notes due 2016 (See Note 10)                                                           | — |  |   | 2 |  |
| Stockholders’ equity:                                                                                     |   |   |   |
| Common stock, $0.01 par value. 1,000 shares authorized; 307 and 301 shares issued and outstanding, respectively | 3 |  |   | 3 |  |
| Additional paid-in capital                                                                                      | 1,086 |  |   | 1,349 |  |
| Retained earnings                                                                                               | 2,461 |  |   | 2,060 |  |
| Accumulated other comprehensive loss                                                                            | (1 | ) |   | (16 | ) |
| Total stockholders’ equity                                                                                | 3,549 |  |   | 3,396 |  |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                | $ | 7,719 |  |   | $ | 7,050 |  |

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|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Unaudited)                                                    | Three Months Ended December 31, |   | Nine Months Ended December 31, |
| (In millions, except per share data)                           | 2016 |  | 2015 |   | 2016 |   | 2015 |
| Net revenue:                                                   |   |   |   |   |   |   |   |
| Product                                                        | $ | 649 |  |   | $ | 625 |  |   | $ | 1,753 |  |   | $ | 1,802 |  |
| Service and other                                              | 500 |  |   | 445 |  |   | 1,565 |  |   | 1,286 |  |
| Total net revenue                                              | 1,149 |  |   | 1,070 |  |   | 3,318 |  |   | 3,088 |  |
| Cost of revenue:                                               |   |   |   |   |   |   |   |
| Product                                                        | 389 |  |   | 439 |  |   | 796 |  |   | 868 |  |
| Service and other                                              | 127 |  |   | 107 |  |   | 300 |  |   | 260 |  |
| Total cost of revenue                                          | 516 |  |   | 546 |  |   | 1,096 |  |   | 1,128 |  |
| Gross profit                                                   | 633 |  |   | 524 |  |   | 2,222 |  |   | 1,960 |  |
| Operating expenses:                                            |   |   |   |   |   |   |   |
| Research and development                                       | 285 |  |   | 266 |  |   | 870 |  |   | 827 |  |
| Marketing and sales                                            | 240 |  |   | 190 |  |   | 511 |  |   | 469 |  |
| General and administrative                                     | 110 |  |   | 97 |  |   | 329 |  |   | 296 |  |
| Amortization of intangibles                                    | 2 |  |   | 2 |  |   | 5 |  |   | 6 |  |
| Total operating expenses                                       | 637 |  |   | 555 |  |   | 1,715 |  |   | 1,598 |  |
| Operating income (loss)                                        | (4 | ) |   | (31 | ) |   | 507 |  |   | 362 |  |
| Interest and other income (expense), net                       | (2 | ) |   | 1 |  |   | (13 | ) |   | (11 | ) |
| Income (loss) before provision for (benefit from) income taxes | (6 | ) |   | (30 | ) |   | 494 |  |   | 351 |  |
| Provision for (benefit from) income taxes                      | (5 | ) |   | 15 |  |   | 93 |  |   | 94 |  |
| Net income (loss)                                              | $ | (1 | ) |   | $ | (45 | ) |   | $ | 401 |  |   | $ | 257 |  |
| Earnings (loss) per share:                                     |   |   |   |   |   |   |   |
| Basic                                                          | $        ( | 0.00) |  |   | $ | (0.14 | ) |   | $ | 1.33 |  |   | $ | 0.83 |  |
| Diluted                                                        | $        ( | 0.00) |  |   | $ | (0.14 | ) |   | $ | 1.28 |  |   | $ | 0.77 |  |
| Number of shares used in computation:                          |   |   |   |   |   |   |   |
| Basic                                                          | 303 |  |   | 311 |  |   | 302 |  |   | 311 |  |
| Diluted                                                        | 303 |  |   | 311 |  |   | 314 |  |   | 333 |  |

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|                                                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (Unaudited)                                                                                    | Three Months Ended December 31, |   | Nine Months Ended December 31, |
| (In millions)                                                                                  | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net income (loss)                                                                              | $ | (1 | ) |   | $ | (45 | ) |   | $ | 401 |  |   | $ | 257 |  |
| Other comprehensive income (loss), net of tax:                                                 |   |   |   |   |   |   |   |
| Change in unrealized net gains and losses on available-for-sale securities                     | (5 | ) |   | (4 | ) |   | (4 | ) |   | (3 | ) |
| Reclassification adjustment for realized net gains and losses on available-for-sale securities | — |  |   | 1 |  | 1 |  | (1 | ) |   | — |  |
| Change in unrealized net gains and losses on derivative instruments                            | 39 |  |   | 10 |  |   | 66 |  |   | 2 |  |
| Reclassification adjustment for realized net gains and losses on derivative instruments        | (8 | ) |   | (4 | ) |   | (18 | ) |   | (11 | ) |
| Foreign currency translation adjustments                                                       | (17 | ) |   | (16 | ) |   | (28 | ) |   | (47 | ) |
| Total other comprehensive income (loss), net of tax                                            | 9 |  |   | (13 | ) |   | 15 |  |   | (59 | ) |
| Total comprehensive income (loss)                                                              | $ | 8 |  |   | $ | (58 | ) |   | $ | 416 |  |   | $ | 198 |  |

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|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
| (Unaudited)                                                                       | Nine Months Ended December 31, |
| (In millions)                                                                     | 2016 |   | 2015 |
| OPERATING ACTIVITIES                                                              |   |   |   |
| Net income                                                                        | $ | 401 |  |   | $ | 257 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Depreciation, amortization and accretion                                          | 140 |  |   | 149 |  |
| Stock-based compensation                                                          | 144 |  |   | 131 |  |
| Loss on conversion of senior notes                                                | — |  |   | 8 |  |
| Change in assets and liabilities:                                                 |   |   |   |
| Receivables, net                                                                  | (367 | ) |   | (268 | ) |
| Inventories                                                                       | (2 | ) |   | (6 | ) |
| Other assets                                                                      | 42 |  |   | 42 |  |
| Accounts payable                                                                  | (6 | ) |   | 70 |  |
| Accrued and other liabilities                                                     | 111 |  |   | (124 | ) |
| Deferred income taxes, net                                                        | — |  |   | 6 |  |
| Deferred net revenue (online-enabled games)                                       | 513 |  |   | 562 |  |
| Net cash provided by operating activities                                         | 976 |  |   | 827 |  |
| INVESTING ACTIVITIES                                                              |   |   |   |
| Capital expenditures                                                              | (94 | ) |   | (63 | ) |
| Proceeds from maturities and sales of short-term investments                      | 968 |  |   | 707 |  |
| Purchase of short-term investments                                                | (1,372 | ) |   | (727 | ) |
| Net cash used in investing activities                                             | (498 | ) |   | (83 | ) |
| FINANCING ACTIVITIES                                                              |   |   |   |
| Payment of convertible notes                                                      | (163 | ) |   | (293 | ) |
| Proceeds from issuance of common stock                                            | 33 |  |   | 86 |  |
| Excess tax benefit from stock-based compensation                                  | 53 |  |   | 73 |  |
| Repurchase and retirement of common stock                                         | (383 | ) |   | (384 | ) |
| Net cash used in financing activities                                             | (460 | ) |   | (518 | ) |
| Effect of foreign exchange on cash and cash equivalents                           | (28 | ) |   | (31 | ) |
| Increase (decrease) in cash and cash equivalents                                  | (10 | ) |   | 195 |  |
| Beginning cash and cash equivalents                                               | 2,493 |  |   | 2,068 |  |
| Ending cash and cash equivalents                                                  | $ | 2,483 |  |   | $ | 2,263 |  |
| Supplemental cash flow information:                                               |   |   |   |
| Cash paid during the period for income taxes, net                                 | $ | 51 |  |   | $ | 28 |  |
| Cash paid during the period for interest                                          | $ | 23 |  |   | $ | 3 |  |
| Non-cash investing activities:                                                    |   |   |   |
| Change in accrued capital expenditures                                            | $ | (16 | ) |   | $ | (8 | ) |

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|         |                                                                               |
|---------|-------------------------------------------------------------------------------|
| • | Level 1. Quoted prices in active markets for identical assets or liabilities. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2. Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. |

|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 3. Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. |

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       |   |   | Fair Value Measurements at Reporting Date Using |   |    |
|                                       |   |   | Quoted Prices inActive Markets for IdenticalFinancialInstruments |   | SignificantOtherObservableInputs |   | SignificantUnobservableInputs |   |   |
|                                       | As ofDecember 31, 2016 |   | (Level 1) |   | (Level 2) |   | (Level 3) |   | Balance Sheet Classification |
| Assets                                     |   |   |   |   |   |   |   |   |   |
| Bank and time deposits                     | $ | 230 |  |   | $ | 230 |  |   | $ | — |  |   | $ | — |  |   | Cash equivalents |
| Money market funds                         | 556 |  |   | 556 |  |   | — |  |   | — |  |   | Cash equivalents |
| Available-for-sale securities:             |   |   |   |   |   |   |   |   |   |
| Corporate bonds                            | 843 |  |   | — |  |   | 843 |  |   | — |  |   | Short-term investments and cash equivalents |
| U.S. Treasury securities                   | 440 |  |   | 440 |  |   | — |  |   | — |  |   | Short-term investments and cash equivalents |
| U.S. agency securities                     | 162 |  |   | — |  |   | 162 |  |   | — |  |   | Short-term investments |
| Commercial paper                           | 136 |  |   | — |  |   | 136 |  |   | — |  |   | Short-term investments and cash equivalents |
| Foreign government securities              | 136 |  |   | — |  |   | 136 |  |   | — |  |   | Short-term investments and cash equivalents |
| Asset-backed securities                    | 95 |  |   | — |  |   | 95 |  |   | — |  |   | Short-term investments |
| Foreign currency derivatives               | 57 |  |   | — |  |   | 57 |  |   | — |  |   | Other current assets and other assets |
| Deferred compensation plan assets (a)      | 10 |  |   | 10 |  |   | — |  |   | — |  |   | Other assets |
| Total assets at fair value                 | $ | 2,665 |  |   | $ | 1,236 |  |   | $ | 1,429 |  |   | $ | — |  |   |   |
| Liabilities                                |   |   |   |   |   |   |   |   |   |
| Foreign currency derivatives               | 10 |  |   | — |  |   | 10 |  |   | — |  |   | Accrued and other current liabilities and other liabilities |
| Deferred compensation plan liabilities (a) | 11 |  |   | 11 |  |   | — |  |   | — |  |   | Other liabilities |
| Total liabilities at fair value            | $ | 21 |  |   | $ | 11 |  |   | $ | 10 |  |   | $ | — |  |   |   |

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|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       |   |   | Fair Value Measurements at Reporting Date Using |   |    |
|                                       |   |   | Quoted Prices inActive Markets for IdenticalFinancialInstruments |   | SignificantOtherObservableInputs |   | SignificantUnobservableInputs |   |   |
|                                       | As of March 31, 2016 |   | (Level 1) |   | (Level 2) |   | (Level 3) |   | Balance Sheet Classification |
| Assets                                     |   |   |   |   |   |   |   |   |   |
| Bank and time deposits                     | $ | 345 |  |   | $ | 345 |  |   | $ | — |  |   | $ | — |  |   | Cash equivalents |
| Money market funds                         | 143 |  |   | 143 |  |   | — |  |   | — |  |   | Cash equivalents |
| Available-for-sale securities:             |   |   |   |   |   |   |   |   |   |
| Corporate bonds                            | 623 |  |   | — |  |   | 623 |  |   | — |  |   | Short-term investments and cash equivalents |
| U.S. Treasury securities                   | 407 |  |   | 407 |  |   | — |  |   | — |  |   | Short-term investments and cash equivalents |
| U.S. agency securities                     | 170 |  |   | — |  |   | 170 |  |   | — |  |   | Short-term investments and cash equivalents |
| Commercial paper                           | 81 |  |   | — |  |   | 81 |  |   | — |  |   | Short-term investments and cash equivalents |
| Foreign government securities              | 122 |  |   | — |  |   | 122 |  |   | — |  |   | Short-term investments and cash equivalents |
| Foreign currency derivatives               | 16 |  |   | — |  |   | 16 |  |   | — |  |   | Other current assets and other assets |
| Deferred compensation plan assets (a)      | 8 |  |   | 8 |  |   | — |  |   | — |  |   | Other assets |
| Total assets at fair value                 | $ | 1,915 |  |   | $ | 903 |  |   | $ | 1,012 |  |   | $ | — |  |   |   |
| Liabilities                                |   |   |   |   |   |   |   |   |   |
| Foreign currency derivatives               | 10 |  |   | — |  |   | 10 |  |   | — |  |   | Accrued and other current liabilities and other liabilities |
| Deferred compensation plan liabilities (a) | 9 |  |   | 9 |  |   | — |  |   | — |  |   | Other liabilities |
| Total liabilities at fair value            | $ | 19 |  |   | $ | 9 |  |   | $ | 10 |  |   | $ | — |  |   |   |

|     |                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016, for additional information regarding our Deferred Compensation Plan. |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | As of December 31, 2016 |   | As of March 31, 2016 |
|                          | Cost orAmortizedCost |   | Gross Unrealized |   | FairValue |   | Cost orAmortizedCost |   | Gross Unrealized |   | FairValue |
|                          | Gains |   | Losses |   | Gains |   | Losses |   |
| Corporate bonds               | $ | 842 |  |   | $ | — |  |   | $ | (2 | ) |   | $ | 840 |  |   | $ | 620 |  |   | $ | 1 |  |   | $ | — |  |   | $ | 621 |  |
| U.S. Treasury securities      | 400 |  |   | — |  |   | (1 | ) |   | 399 |  |   | 389 |  |   | 1 |  |   | — |  |   | 390 |  |
| U.S. agency securities        | 163 |  |   | — |  |   | (1 | ) |   | 162 |  |   | 167 |  |   | — |  |   | — |  |   | 167 |  |
| Commercial paper              | 116 |  |   | — |  |   | — |  |   | 116 |  |   | 50 |  |   | — |  |   | — |  |   | 50 |  |
| Foreign government securities | 124 |  |   | — |  |   | — |  |   | 124 |  |   | 113 |  |   | — |  |   | — |  |   | 113 |  |
| Asset-backed securities       | 95 |  |   | — |  |   | — |  |   | 95 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Short-term investments        | $ | 1,740 |  |   | $ | — |  |   | $ | (4 | ) |   | $ | 1,736 |  |   | $ | 1,339 |  |   | $ | 2 |  |   | $ | — |  |   | $ | 1,341 |  |

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|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                   | As of December 31, 2016 |   | As of March 31, 2016 |
|                   | AmortizedCost |   | FairValue |   | AmortizedCost |   | FairValue |
| Short-term investments |   |   |   |   |   |   |   |
| Due in 1 year or less  | $ | 928 |  |   | $ | 928 |  |   | $ | 571 |  |   | $ | 571 |  |
| Due in 1-2 years       | 419 |  |   | 418 |  |   | 461 |  |   | 462 |  |
| Due in 2-3 years       | 306 |  |   | 304 |  |   | 295 |  |   | 296 |  |
| Due in 3-4 years       | 87 |  |   | 86 |  |   | 12 |  |   | 12 |  |
| Short-term investments | $ | 1,740 |  |   | $ | 1,736 |  |   | $ | 1,339 |  |   | $ | 1,341 |  |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | As of December 31, 2016 |   | As of March 31, 2016 |
|                          | Notional Amount |   | Fair Value |   | Notional Amount |   | Fair Value |
|                          |   | Asset |   | Liability |   |   | Asset |   | Liability |
| Forward contracts to purchase | $ | 177 |  |   | $ | — |  |   | $ | 8 |  |   | $ | 148 |  |   | $ | 5 |  |   | $ | 1 |  |
| Forward contracts to sell     | $ | 700 |  |   | $ | 44 |  |   | $ | 1 |  |   | $ | 685 |  |   | $ | 11 |  |   | $ | 9 |  |

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|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          | As of December 31, 2016 |   | As of March 31, 2016 |
|                          | Notional Amount |   | Fair Value |   | Notional Amount |   | Fair Value |
|                          |   | Asset |   | Liability |   |   | Asset |   | Liability |
| Forward contracts to purchase | $ | 143 |  |   | $ | — |  |   | $ | 1 |  |   | $ | 108 |  |   | $ | — |  |   | $ | — |  |
| Forward contracts to sell     | $ | 681 |  |   | $ | 13 |  |   | $ | — |  |   | $ | 159 |  |   | $ | — |  |   | $ | — |  |

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|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                     | Statement of Operations Classification |   | Amount of Gain (Loss) Recognized in the Statement of Operations |
|                                                                     | Three Months Ended December 31, |   | Nine Months Ended December 31, |
|                                                                     | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Foreign currency forward contracts not designated as hedging instruments | Interest and other income (expense), net |   | $ | 49 |  |   | $ | 13 |  |   | $ | 50 |  |   | $ | 15 |  |

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|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Unrealized Net Gains (Losses) on Available-for-Sale Securities |   | Unrealized Net Gains (Losses) on Derivative Instruments |   | Foreign Currency Translation Adjustments |   | Total |
| Balances as of September 30, 2016                                       | $ | 1 |  |   | $ | 31 |  |   | $ | (42 | ) |   | $ | (10 | ) |
| Other comprehensive income (loss) before reclassifications              | (5 | ) |   | 39 |  |   | (17 | ) |   | 17 |  |
| Amounts reclassified from accumulated other comprehensive income (loss) | — |  |   | (8 | ) |   | — |  |   | (8 | ) |
| Total other comprehensive income (loss), net of tax                     | (5 | ) |   | 31 |  |   | (17 | ) |   | 9 |  |
| Balance as of December 31, 2016                                         | $ | (4 | ) |   | $ | 62 |  |   | $ | (59 | ) |   | $ | (1 | ) |

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|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Unrealized Net Gains (Losses) on Available-for-Sale Securities |   | Unrealized Net Gains (Losses) on Derivative Instruments |   | Foreign Currency Translation Adjustments |   | Total |
| Balances as of September 30, 2015                                       | $ | (3 | ) |   | $ | 6 |  |   | $ | (47 | ) |   | $ | (44 | ) |
| Other comprehensive income (loss) before reclassifications              | (4 | ) |   | 10 |  |   | (16 | ) |   | (10 | ) |
| Amounts reclassified from accumulated other comprehensive income (loss) | 1 |  |   | (4 | ) |   | — |  |   | (3 | ) |
| Total other comprehensive income (loss), net of tax                     | (3 | ) |   | 6 |  |   | (16 | ) |   | (13 | ) |
| Balance as of December 31, 2015                                         | $ | (6 | ) |   | $ | 12 |  |   | $ | (63 | ) |   | $ | (57 | ) |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Unrealized Net Gains (Losses) on Available-for-Sale Securities |   | Unrealized Net Gains (Losses) on Derivative Instruments |   | Foreign Currency Translation Adjustments |   | Total |
| Balances as of March 31, 2016                                           | $ | 1 |  |   | $ | 14 |  |   | $ | (31 | ) |   | $ | (16 | ) |
| Other comprehensive income (loss) before reclassifications              | (4 | ) |   | 66 |  |   | (28 | ) |   | 34 |  |
| Amounts reclassified from accumulated other comprehensive income (loss) | (1 | ) |   | (18 | ) |   | — |  |   | (19 | ) |
| Total other comprehensive income (loss), net of tax                     | (5 | ) |   | 48 |  |   | (28 | ) |   | 15 |  |
| Balance as of December 31, 2016                                         | $ | (4 | ) |   | $ | 62 |  |   | $ | (59 | ) |   | $ | (1 | ) |

|                                                                         |
|-------------------------------------------------------------------------|
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                    | Unrealized Net Gains (Losses) on Available-for-Sale Securities |   | Unrealized Net Gains (Losses) on Derivative Instruments |   | Foreign Currency Translation Adjustments |   | Total |
| Balances as of March 31, 2015                                           | $ | (3 | ) |   | $ | 21 |  |   | $ | (16 | ) |   | $ | 2 |  |
| Other comprehensive income (loss) before reclassifications              | (3 | ) |   | 2 |  |   | (47 | ) |   | (48 | ) |
| Amounts reclassified from accumulated other comprehensive income (loss) | — |  |   | (11 | ) |   | — |  |   | (11 | ) |
| Total other comprehensive income (loss), net of tax                     | (3 | ) |   | (9 | ) |   | (47 | ) |   | (59 | ) |
| Balance as of December 31, 2015                                         | $ | (6 | ) |   | $ | 12 |  |   | $ | (63 | ) |   | $ | (57 | ) |

----

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|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |
|                                                      |  | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) |
| Statement of Operations Classification                    |  | Three Months Ended December 31, 2016 |  | Nine Months Ended December 31, 2016 |
| (Gains) losses on available-for-sale securities           |  |  |  |  |
| Interest and other income (expense), net                  |   | $ | — |  |   | $ | (1 | ) |
| Net of tax                                                |  | $ | — |  |  | $ | (1 | ) |
|                                                           |  |  |  |  |
| (Gains) losses on cash flow hedges from forward contracts |   |   |   |   |
| Net revenue                                               |  | $ | (9 | ) |  | $ | (18 | ) |
| Research and development                                  |  | 1 |  |  | — |  |
| Net of tax                                                |   | $ | (8 | ) |   | $ | (18 | ) |
|                                                      |   |   |   |   |
| Total net (gain) loss reclassified, net of tax            |  | $ | (8 | ) |  | $ | (19 | ) |

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |
|                                                      |   | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) |
| Statement of Operations Classification                    |   | Three Months Ended December 31, 2015 |   | Nine Months Ended December 31, 2015 |
| (Gains) losses on available-for-sale securities           |   |   |   |   |
| Interest and other income (expense), net                  |   | $ | 1 |  |   | $ | — |  |
| Net of tax                                                |   | $ | 1 |  |   | $ | — |  |
|                                                      |   |   |   |   |
| (Gains) losses on cash flow hedges from forward contracts |   |   |   |   |
| Net revenue                                               |   | $ | (5 | ) |   | $ | (19 | ) |
| Research and development                                  |   | 1 |  |   | 8 |  |
| Net of tax                                                |   | $ | (4 | ) |   | $ | (11 | ) |
|                                                      |   |   |   |   |
| Total net (gain) loss reclassified, net of tax            |   | $ | (3 | ) |   | $ | (11 | ) |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                   | As of March 31, 2016 |   | Activity |   | Effects of Foreign Currency Translation |   | As of December 31, 2016 |
| Goodwill               | $ | 2,078 |  |   | $ | — |  |   | $ | (6 | ) |   | $ | 2,072 |  |
| Accumulated impairment | (368 | ) |   | — |  |   | — |  |   | (368 | ) |
| Total                  | $ | 1,710 |  |   | $ | — |  |   | $ | (6 | ) |   | $ | 1,704 |  |

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|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                       | As of December 31, 2016 |   | As of March 31, 2016 |
|                                       | GrossCarryingAmount |   | AccumulatedAmortization |   | Acquisition-RelatedIntangibles, Net |   | GrossCarryingAmount |   | AccumulatedAmortization |   | Acquisition-RelatedIntangibles, Net |
| Developed and core technology              | $ | 412 |  |   | $ | (412 | ) |   | $ | — |  |   | $ | 412 |  |   | $ | (368 | ) |   | $ | 44 |  |
| Trade names and trademarks                 | 106 |  |   | (97 | ) |   | 9 |  |   | 106 |  |   | (93 | ) |   | 13 |  |
| Registered user base and other intangibles | 5 |  |   | (5 | ) |   | — |  |   | 5 |  |   | (5 | ) |   | — |  |
| Carrier contracts and related              | 85 |  |   | (85 | ) |   | — |  |   | 85 |  |   | (85 | ) |   | — |  |
| Total                                      | $ | 608 |  |   | $ | (599 | ) |   | $ | 9 |  |   | $ | 608 |  |   | $ | (551 | ) |   | $ | 57 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | Three Months Ended December 31, |   | Nine Months Ended December 31, |
|                      | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Cost of service and other | $ | — |  |   | $ | 9 |  |   | $ | 16 |  |   | $ | 25 |  |
| Cost of product           | 18 |  |   | 3 |  |   | 27 |  |   | 10 |  |
| Operating expenses        | 2 |  |   | 2 |  |   | 5 |  |   | 6 |  |
| Total                     | $ | 20 |  |   | $ | 14 |  |   | $ | 48 |  |   | $ | 41 |  |

|                                   |
|-----------------------------------|
|                                   |  |  |  |
| Fiscal Year Ending March 31, |   |
| 2017 (remaining three months)     | $ | 1 |  |
| 2018                              | 6 |  |
| 2019                              | 2 |  |
| Total                             | $ | 9 |  |

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|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |
|                   | As of December 31, 2016 |   | As of March 31, 2016 |
| Other current assets   | $ | 31 |  |   | $ | 54 |  |
| Other assets           | 44 |  |   | 63 |  |
| Royalty-related assets | $ | 75 |  |   | $ | 117 |  |

|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |
|                        | As of December 31, 2016 |   | As of March 31, 2016 |
| Accrued royalties           | $ | 226 |  |   | $ | 159 |  |
| Other liabilities           | 102 |  |   | 118 |  |
| Royalty-related liabilities | $ | 328 |  |   | $ | 277 |  |

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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |
|                                   | As of December 31, 2016 |  | As of March 31, 2016 |
| Finished goods                    | $ | 34 |  |  | $ | 32 |  |
| Raw materials and work in process | 1 |  |  | 1 |  |
| Inventories                       | $ | 35 |  |  | $ | 33 |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
|                                         | As of December 31, 2016 |   | As of March 31, 2016 |
| Computer, equipment and software             | $ | 702 |  |   | $ | 684 |  |
| Buildings                                    | 312 |  |   | 313 |  |
| Leasehold improvements                       | 126 |  |   | 129 |  |
| Equipment, furniture and fixtures, and other | 80 |  |   | 80 |  |
| Land                                         | 61 |  |   | 61 |  |
| Construction in progress                     | 8 |  |   | 15 |  |
|                                         | 1,289 |  |   | 1,282 |  |
| Less: accumulated depreciation               | (865 | ) |   | (843 | ) |
| Property and equipment, net                  | $ | 424 |  |   | $ | 439 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | As of December 31, 2016 |   | As of March 31, 2016 |
| Other accrued expenses                | $ | 306 |  |   | $ | 218 |  |
| Accrued compensation and benefits     | 224 |  |   | 256 |  |
| Accrued royalties                     | 226 |  |   | 159 |  |
| Deferred net revenue (other)          | 145 |  |   | 77 |  |
| Accrued and other current liabilities | $ | 901 |  |   | $ | 710 |  |

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|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |  |  |  |  |
|                                            | As of December 31, 2016 |   | As of March 31, 2016 |
| Principal amount of Convertible Notes                | $ | — |  |   | $ | 163 |  |
| Unamortized debt discount of the liability component | — |  |   | (2 | ) |
| Net carrying value of Convertible Notes              | $ | — |  |   | $ | 161 |  |
|                                                 |   |   |   |
| Fair value of Convertible Notes (Level 2)            | $ | — |  |   | $ | 338 |  |

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|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |
|                            | As of December 31, 2016 |   | As ofMarch 31, 2016 |
| Senior Notes:                        |   |   |   |
| 3.70% Senior Notes due 2021          | $ | 600 |  |   | $ | 600 |  |
| 4.80% Senior Notes due 2026          | 400 |  |   | 400 |  |
| Total principal amount               | $ | 1,000 |  |   | $ | 1,000 |  |
| Unaccreted discount                  | (2 | ) |   | (2 | ) |
| Unamortized debt issuance costs      | (8 | ) |   | (9 | ) |
| Net carrying value of Senior Notes   | $ | 990 |  |   | $ | 989 |  |
|                                 |   |   |   |
| Fair value of Senior Notes (Level 2) | $ | 1,045 |  |   | $ | 1,039 |  |

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|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                | Three Months Ended December 31, |   | Nine Months Ended December 31, |
|                                | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Amortization of debt discount       | — |  |   | (3 | ) |   | (2 | ) |   | (14 | ) |
| Amortization of debt issuance costs | (1 | ) |   | (1 | ) |   | (2 | ) |   | (2 | ) |
| Coupon interest expense             | (10 | ) |   | (1 | ) |   | (31 | ) |   | (3 | ) |
| Other interest expense              | (1 | ) |   | — |  |   | (1 | ) |   | — |  |
| Total interest expense              | $ | (12 | ) |   | $ | (5 | ) |   | $ | (36 | ) |   | $ | (19 | ) |

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|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   |   | Fiscal Years Ending March 31, |
|                                |   |   | 2017 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   | (Remaining |   |   |   |   |   |   |   |   |   |   |   |   |
|                                | Total |   | three mos.) |   | 2018 |   | 2019 |   | 2020 |   | 2021 |   | 2022 |   | Thereafter |
| Unrecognized commitments            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Developer/licensor commitments      | $ | 1,338 |  |   | $ | 50 |  |   | $ | 284 |  |   | $ | 295 |  |   | $ | 251 |  |   | $ | 182 |  |   | $ | 196 |  |   | $ | 80 |  |
| Marketing commitments               | 469 |  |   | 6 |  |   | 76 |  |   | 109 |  |   | 89 |  |   | 92 |  |   | 73 |  |   | 24 |  |
| Operating leases                    | 220 |  |   | 8 |  |   | 38 |  |   | 33 |  |   | 30 |  |   | 28 |  |   | 22 |  |   | 61 |  |
| Senior Notes interest               | 272 |  |   | 11 |  |   | 41 |  |   | 41 |  |   | 41 |  |   | 41 |  |   | 19 |  |   | 78 |  |
| Other purchase obligations          | 115 |  |   | 17 |  |   | 44 |  |   | 15 |  |   | 10 |  |   | 7 |  |   | 4 |  |   | 18 |  |
| Total unrecognized commitments      | 2,414 |  |   | 92 |  |   | 483 |  |   | 493 |  |   | 421 |  |   | 350 |  |   | 314 |  |   | 261 |  |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Recognized commitments              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Senior Notes principal and interest | 1,010 |  |   | 10 |  |   | — |  |   | — |  |   | — |  |   | 600 |  |   | — |  |   | 400 |  |
| Licensing and lease obligations (a) | 131 |  |   | 6 |  |   | 23 |  |   | 24 |  |   | 25 |  |   | 26 |  |   | 27 |  |   | — |  |
| Total recognized commitments        | 1,141 |  |   | 16 |  |   | 23 |  |   | 24 |  |   | 25 |  |   | 626 |  |   | 27 |  |   | 400 |  |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total commitments                   | $ | 3,555 |  |   | $ | 108 |  |   | $ | 506 |  |   | $ | 517 |  |   | $ | 446 |  |   | $ | 976 |  |   | $ | 341 |  |   | $ | 661 |  |

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|         |                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Restricted Stock Units. The fair value of restricted stock units is determined based on the quoted market price of our common stock on the date of grant. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Market-Based Restricted Stock Units. Market-based restricted stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “market-based restricted stock units”). The fair value of our market-based restricted stock units is determined using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Stock Options and Employee Stock Purchase Plan. The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2000 Employee Stock Purchase Plan, as amended (“ESPP”), respectively, is determined using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility and implied volatility of publicly-traded options on our common stock. Expected term is determined based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. |

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |
|                        |   | ESPP Purchase Rights |
|                        |   | Nine Months Ended December 31, |
|                        |   | 2016 |   | 2015 |
| Risk-free interest rate     |   | 0.5 - 0.6% |  |   | 0.3 - 0.4% |  |
| Expected volatility         |   | 29 - 32% |  |   | 32 | % |
| Weighted-average volatility |   | 31 | % |   | 32 | % |
| Expected term               |   | 6 - 12 months |  |   | 6 - 11.5 months |  |
| Expected dividends          |   | None |  |   | None |  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended December 31, |   | Nine Months Ended December 31, |
|                             | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Cost of revenue                  | $ | — |  |   | $ | — |  |   | $ | 2 |  |   | $ | 1 |  |
| Research and development         | 27 |  |   | 26 |  |   | 81 |  |   | 77 |  |
| Marketing and sales              | 8 |  |   | 5 |  |   | 23 |  |   | 17 |  |
| General and administrative       | 13 |  |   | 11 |  |   | 38 |  |   | 36 |  |
| Stock-based compensation expense | $ | 48 |  |   | $ | 42 |  |   | $ | 144 |  |   | $ | 131 |  |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   | Options(in thousands) |   | Weighted-AverageExercise Prices |   | Weighted-AverageRemainingContractualTerm   (in years) |   | AggregateIntrinsic Value(in millions) |
| Outstanding as of March 31, 2016 |   | 3,278 |  |   | $ | 35.09 |  |   |   |   |   |
| Granted                               |   | 4 |  |   | 72.43 |  |   |   |   |   |
| Exercised                             |   | (370 | ) |   | 30.13 |  |   |   |   |   |
| Forfeited, cancelled or expired       |   | (31 | ) |   | 35.78 |  |   |   |   |   |
| Outstanding as of December 31, 2016   |   | 2,881 |  |   | $ | 35.78 |  |   | 4.78 |   | $ | 124 |  |
| Vested and expected to vest           |   | 2,843 |  |   | $ | 35.84 |  |   | 4.74 |   | $ | 122 |  |
| Exercisable as of December 31, 2016   |   | 2,326 |  |   | $ | 36.81 |  |   | 4.20 |   | $ | 98 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  |   | RestrictedStock Rights(in thousands) |   | Weighted-Average GrantDate Fair Values |
| Outstanding as of March 31, 2016 |   | 7,157 |  |   | $ | 44.04 |  |
| Granted                               |   | 2,529 |  |   | 75.68 |  |
| Vested                                |   | (3,658 | ) |   | 36.39 |  |
| Forfeited or cancelled                |   | (487 | ) |   | 56.76 |  |
| Outstanding as of December 31, 2016   |   | 5,541 |  |   | $ | 62.41 |  |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  |   | Market-BasedRestricted  StockUnits(in thousands) |   | Weighted-Average  GrantDate Fair Value |
| Outstanding as of March 31, 2016 |   | 636 |  |   | $ | 64.49 |  |
| Granted                               |   | 353 |  |   | 98.04 |  |
| Vested                                |   | (558 | ) |   | 50.08 |  |
| Vested above target                   |   | 238 |  |   | 44.99 |  |
| Forfeited or cancelled                |   | (28 | ) |   | 84.94 |  |
| Outstanding as of December 31, 2016   |   | 641 |  |   | $ | 87.37 |  |

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                 | May 2014 Program |   | May 2015 Program |   | Total |
| (in millions)                        | Shares |   | Amount |   | Shares |   | Amount |   | Shares |   | Amount |
| Three months ended December 31, 2016 | — |  |   | $ | — |  |   | 1.5 |   | $ | 127 |  |   | 1.5 |   | $ | 127 |  |
| Nine months ended December 31, 2016  | — |  |   | $ | — |  |   | 5.0 |   | $ | 383 |  |   | 5.0 |   | $ | 383 |  |
| Three months ended December 31, 2015 | — |  |   | $ | — |  |   | 1.8 |  |   | $ | 126 |  |   | 1.8 |   | $ | 126 |  |
| Nine months ended December 31, 2015  | 1.0 |   | $ | 57 |  |   | 4.8 |  |   | $ | 327 |  |   | 5.8 |   | $ | 384 |  |

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|                                                                                                          |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                     | Three Months Ended December 31, |   |   Nine Months Ended December 30, |
| (In millions, except per share amounts)                                                                  | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Net income (loss)                                                                                        | $ | (1 | ) |   | $ | (45 | ) |   | $ | 401 |  |   | $ | 257 |  |
| Shares used to compute earnings (loss) per share:                                                        |   |   |   |   |   |   |   |
| Weighted-average common stock outstanding — basic                                                  | 303 |  |   | 311 |  |   | 302 |  |   | 311 |  |
| Dilutive potential common shares related to stock award plans and from assumed exercise of stock options | — |  |   | — |  |   | 3 |  |   | 7 |  |
| Dilutive potential common shares related to the Convertible Notes                                        | — |  |   | — |  |   | 1 |  |   | 8 |  |
| Dilutive potential common shares related to the Warrants                                                 | — |  |   | — |  |   | 8 |  |   | 7 |  |
| Weighted-average common stock outstanding — diluted                                                | 303 |  |   | 311 |  |   | 314 |  |   | 333 |  |
| Earnings (loss) per share:                                                                               |   |   |   |   |   |   |   |
| Basic                                                                                                    | $      ( | 0.00 | ) |   | $ | (0.14 | ) |   | $ | 1.33 |  |   | $ | 0.83 |  |
| Diluted                                                                                                  | $      ( | 0.00) |  |   | $ | (0.14 | ) |   | $ | 1.28 |  |   | $ | 0.77 |  |

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|                         |
|-------------------------|
|                         |
| Santa Clara, California |
| February 7, 2017   |

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|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |

|         |                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Total net revenue was $1,149 million, up 7 percent year-over-year. On a constant currency basis, we estimate that total net revenue would have been $1,164 million, up 9 percent year over year. |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | Digital revenue was $685 million, up 20 percent year-over-year. |

|         |                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | International net revenue was $588 million, down 5 percent year-over-year. On a constant currency basis, we estimate that international net revenue would have been $603 million, down 3 percent year over year. |

|         |                                                                   |
|---------|-------------------------------------------------------------------|
| • | Gross margin was 55.1 percent, up 6.1 percent year-over-year. |

|         |                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Operating expenses were $637 million, up 15 percent year-over-year. On a constant currency basis, we estimate that total operating expenses would have been $644 million, up 16 percent year over year. |

|         |                                                                |
|---------|----------------------------------------------------------------|
| • | Net loss was $1 million, with diluted loss per share of $0.00. |

|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | Total cash, cash equivalents and short-term investments was $4,219 million. |

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|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Evidence of an arrangement. Evidence of an agreement with the customer that reflects the terms and conditions to deliver the related products or services must be present. |

|         |                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Fixed or determinable fee. If a portion of the arrangement fee is not fixed or determinable, we recognize revenue as the amount becomes fixed or determinable. |

|         |                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Collection is deemed probable. Collection is deemed probable if we expect the customer to be able to pay amounts under the arrangement as those amounts become due. If we determine that collection is not probable as the amounts become due, we generally conclude that collection becomes probable upon cash collection. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Delivery. For packaged goods, delivery is considered to occur when a product is shipped and the risk of loss and rewards of ownership have transferred to the customer. For digital downloads, delivery is considered to occur when the software is made available to the customer for download. For services and other, delivery is generally considered to occur as the service is delivered, which is determined based on the underlying service obligation. If there is significant uncertainty of acceptance, revenue is recognized once acceptance is reasonably assured. |

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|         |                                                                                              |
|---------|----------------------------------------------------------------------------------------------|
| • | The party responsible for delivery/fulfillment of the product or service to the end consumer |

|         |                                                                                           |
|---------|-------------------------------------------------------------------------------------------|
| • | The party responsible for the billing, collection of fees and refunds to the end consumer |

|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | The storefront and Terms of Sale that govern the end consumer’s purchase of the product or service |

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | The party that sets the pricing with the end consumer and has credit risk |

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|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|              | Three Months Ended December 31, |
|              | 2016 |   | 2015 |   | $ Change |   | % Change |
| Net revenue:      |   |   |   |   |   |   |   |
| Product           | $ | 649 |  |   | $ | 625 |  |   | $ | 24 |  |   | 4 | % |
| Service and other | 500 |  |   | 445 |  |   | 55 |  |   | 12 | % |
| Total net revenue | $ | 1,149 |  |   | $ | 1,070 |  |   | $ | 79 |  |   | 7 | % |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Three Months Ended December 31, |
|                                  | 2016 |   | 2015 |   | $ Change |   | % Change |
|                                  |   |   |   |   |   |   |   |
| Full game downloads                   | $ | 169 |  |   | $ | 112 |  |   | $ | 57 |  |   | 51 |  % |
| Extra content                         | 267 |  |   | 241 |  |   | 26 |  |   | 11 |  % |
| Subscriptions, advertising, and other | 102 |  |   | 89 |  |   | 13 |  |   | 15 |  % |
| Mobile                                | 147 |  |   | 127 |  |   | 20 |  |   | 16 |  % |
| Total Digital                         | $ | 685 |  |   | $ | 569 |  |   | $ | 116 |  |   | 20 |  % |
|                                  |   |   |   |   |   |   |   |
| Packaged goods and other              | $ | 464 |  |   | $ | 501 |  |   | $ | (37 | ) |   | (7 | )% |
| Net revenue                           | $ | 1,149 |  |   | $ | 1,070 |  |   | $ | 79 |  |   | 7 |  % |

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|                   |
|-------------------|
|                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|              | Nine Months Ended December 31, |
|              | 2016 |   | 2015 |   | $ Change |   | % Change |
| Net revenue:      |   |   |   |   |   |   |   |
| Product           | $ | 1,753 |  |   | $ | 1,802 |  |   | $ | (49 | ) |   | (3 | )% |
| Service and other | 1,565 |  |   | 1,286 |  |   | 279 |  |   | 22 |  % |
| Total net revenue | $ | 3,318 |  |   | $ | 3,088 |  |   | $ | 230 |  |   | 7 |  % |

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|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | Nine Months Ended December 31, |
|                                  | 2016 |   | 2015 |   | $ Change |   | % Change |
|                                  |   |   |   |   |   |   |   |
| Full game downloads                   | $ | 400 |  |   | $ | 313 |  |   | $ | 87 |  |   | 28 |  % |
| Extra content                         | 807 |  |   | 745 |  |   | 62 |  |   | 8 |  % |
| Subscriptions, advertising, and other | 272 |  |   | 244 |  |   | 28 |  |   | 11 |  % |
| Mobile                                | 461 |  |   | 392 |  |   | 69 |  |   | 18 |  % |
| Total Digital                         | $ | 1,940 |  |   | $ | 1,694 |  |   | $ | 246 |  |   | 15 |  % |
|                                  |   |   |   |   |   |   |   |
| Packaged goods and other              | $ | 1,378 |  |   | $ | 1,394 |  |   | $ | (16 | ) |   | (1 | )% |
| Net revenue                           | $ | 3,318 |  |   | $ | 3,088 |  |   | $ | 230 |  |   | 7 |  % |

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|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                  | December 31, 2016 |   | % of Related Net Revenue |   | December 31, 2015 |   | % of Related Net Revenue |   | % Change |   | Change as a% of RelatedNet Revenue |
| Cost of revenue:      |   |   |   |   |   |   |   |   |   |   |   |
| Product               | $ | 389 |  |   | 59.9 | % |   | $ | 439 |  |   | 70.2 | % |   | (11.4 | )% |   | (10.3 | )% |
| Service and other     | 127 |  |   | 25.4 | % |   | 107 |  |   | 24.0 | % |   | 18.7 |  % |   | 1.4 |  % |
| Total cost of revenue | $ | 516 |  |   | 44.9 | % |   | $ | 546 |  |   | 51.0 | % |   | (5.5 | )% |   | (6.1 | )% |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                  | December 31, 2016 |   | % of Related Net Revenue |   | December 31, 2015 |   | % of Related Net Revenue |   | % Change |   | Change as a% of RelatedNet Revenue |
| Cost of revenue:      |   |   |   |   |   |   |   |   |   |   |   |
| Product               | $ | 796 |  |   | 45.4 | % |   | $ | 868 |  |   | 48.2 | % |   | (8.3 | )% |   | (2.8 | )% |
| Service and other     | 300 |  |   | 19.2 | % |   | 260 |  |   | 20.2 | % |   | 15.4 |  % |   | (1.0 | )% |
| Total cost of revenue | $ | 1,096 |  |   | 33.0 | % |   | $ | 1,128 |  |   | 36.5 | % |   | (2.8 | )% |   | (3.5 | )% |

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|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|               | December 31, 2016 |   | % of NetRevenue |   | December 31, 2015 |   | % of NetRevenue |   | $ Change |   | % Change |
| Three months ended | $ | 285 |  |   | 25 | % |   | $ | 266 |  |   | 25 | % |   | $ | 19 |  |   | 7 | % |
| Nine months ended  | $ | 870 |  |   | 26 | % |   | $ | 827 |  |   | 27 | % |   | $ | 43 |  |   | 5 | % |

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|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|               | December 31, 2016 |   | % of NetRevenue |   | December 31, 2015 |   | % of NetRevenue |   | $ Change |   | % Change |
| Three months ended | $ | 240 |  |   | 21 | % |   | $ | 190 |  |   | 18 | % |   | $ | 50 |  |   | 26 | % |
| Nine months ended  | $ | 511 |  |   | 15 | % |   | $ | 469 |  |   | 15 | % |   | $ | 42 |  |   | 9 | % |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|               | December 31, 2016 |   | % of NetRevenue |   | December 31, 2015 |   | % of NetRevenue |   | $ Change |   | % Change |
| Three months ended | $ | 110 |  |   | 10 | % |   | $ | 97 |  |   | 9 | % |   | $ | 13 |  |   | 13 | % |
| Nine months ended  | $ | 329 |  |   | 10 | % |   | $ | 296 |  |   | 10 | % |   | $ | 33 |  |   | 11 | % |

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|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
|               | December 31, 2016 |   | Effective Tax Rate |   | December 31, 2015 |   | Effective Tax Rate |
| Three months ended | $ | (5 | ) |   | 83.3 | % |   | $ | 15 |  |   | 50.0 | % |
| Nine months ended  | $ | 93 |  |   | 18.8 | % |   | $ | 94 |  |   | 26.8 | % |

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|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)              | As of December 31, 2016 |   | As of March 31, 2016 |   | Increase/(Decrease) |
| Cash and cash equivalents  | $ | 2,483 |  |   | $ | 2,493 |  |   | $ | (10 | ) |
| Short-term investments     | 1,736 |  |   | 1,341 |  |   | 395 |  |
| Total                      | $ | 4,219 |  |   | $ | 3,834 |  |   | $ | 385 |  |
| Percentage of total assets | 55 | % |   | 54 | % |   |   |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |
|                                                    | Nine Months Ended December 31, |   |   |
| (In millions)                                           | 2016 |   | 2015 |   | Change |
| Net cash provided by operating activities               | $ | 976 |  |   | $ | 827 |  |   | $ | 149 |  |
| Net cash used in investing activities                   | (498 | ) |   | (83 | ) |   | (415 | ) |
| Net cash used in financing activities                   | (460 | ) |   | (518 | ) |   | 58 |  |
| Effect of foreign exchange on cash and cash equivalents | (28 | ) |   | (31 | ) |   | 3 |  |
| Net increase (decrease) in cash and cash equivalents    | $ | (10 | ) |   | $ | 195 |  |   | $ | (205 | ) |

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|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (In millions)                 | Valuation of SecuritiesGiven an Interest Rate Decreaseof X Basis Points |   | Fair Valueas ofDecember 31, 2016 |   | Valuation of Securities Givenan Interest Rate Increase ofX Basis Points |
| (150 BPS)                |   | (100 BPS) |   | (50 BPS) |   | 50 BPS |   | 100 BPS |   | 150 BPS |
| Corporate bonds               | $ | 851 |  |   | $ | 848 |  |   | $ | 844 |  |   | $ | 840 |  |   | $ | 837 |  |   | $ | 833 |  |   | $ | 830 |  |
| U.S. Treasury securities      | 408 |  |   | 405 |  |   | 402 |  |   | 399 |  |   | 396 |  |   | 393 |  |   | 390 |  |
| U.S. agency securities        | 165 |  |   | 164 |  |   | 163 |  |   | 162 |  |   | 162 |  |   | 160 |  |   | 159 |  |
| Commercial paper              | 117 |  |   | 116 |  |   | 116 |  |   | 116 |  |   | 116 |  |   | 116 |  |   | 116 |  |
| Foreign government securities | 124 |  |   | 124 |  |   | 123 |  |   | 124 |  |   | 122 |  |   | 122 |  |   | 121 |  |
| Asset-backed securities       | 97 |  |   | 96 |  |   | 96 |  |   | 95 |  |   | 94 |  |   | 94 |  |   | 93 |  |
| Total short-term investments  | $ | 1,762 |  |  | $ | 1,753 |  |  | $ | 1,744 |  |  | $ | 1,736 |  |  | $ | 1,727 |  |  | $ | 1,718 |  |  | $ | 1,709 |  |

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|         |                         |
|---------|-------------------------|
| Item 4. | Controls and Procedures |

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|         |                   |
|---------|-------------------|
| Item 1. | Legal Proceedings |

|          |              |
|----------|--------------|
| Item 1A. | Risk Factors |

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|         |                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Requiring the dedication of a substantial portion of any cash flow from operations to the payment of principal of, and interest on, our indebtedness, thereby reducing the availability of such cash flow to fund our growth strategy, working capital, capital expenditures and other general corporate purposes; |

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|         |                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Utilizing funds that are domiciled in foreign tax jurisdictions in order to make the cash payments upon any repayment of our indebtedness. If we were to choose to use such funds, we would be required to accrue any additional taxes on any portion of the repatriation where no United States income tax had been previously provided; and |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | Limiting our flexibility in planning for, or reacting to, changes in our business and our industry. |

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|         |                                                             |
|---------|-------------------------------------------------------------|
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Fiscal Month                    |  | Total Number of Shares Purchased |  | Average Price Paid per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Program |  | Maximum Dollar Value that May Still Be Purchased Under the Program (in millions) |
| October 2  - October 29, 2016   |   | 472,564 |  |   | $ | 83.80 |  |   | 472,564 |  |   | $ | 243 |  |
| October 30 - November 26, 2016  |   | 483,002 |  |   | $ | 79.47 |  |   | 483,002 |  |   | $ | 204 |  |
| November 27 - December 31, 2016 |   | 611,969 |  |   | $ | 79.23 |  |   | 611,969 |  |   | $ | 156 |  |
|                            |   | 1,567,535 |  |   | $ | 80.68 |  |   | 1,567,535 |  |   |   |

|         |                                 |
|---------|---------------------------------|
| Item 3. | Defaults Upon Senior Securities |

|         |                         |
|---------|-------------------------|
| Item 4. | Mine Safety Disclosures |

|         |          |
|---------|----------|
| Item 6. | Exhibits |

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|                       |
|-----------------------|
|                       |  |  |
|                  |   | ELECTRONIC ARTS INC. |
|                  |   | (Registrant) |
|                  |   |
|                  |   | /s/ Blake Jorgensen |
| DATED:                |   | Blake Jorgensen |
| February 7, 2017 |   | Executive Vice President, |
|                  |   | Chief Financial Officer |

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|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   | Incorporated by Reference |   |   |
| Number                                          |   | Exhibit Title |    | Form |    | File No. |    | Filing Date |    | Filed Herewith |
| 10.1*                                           |   | Transition Agreement for Gabrielle Toledano, dated November 18, 2016 |   |   |   |   |   |   |   | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 15.1                                            |   | Awareness Letter of KPMG LLP, Independent Registered Public Accounting Firm |   |   |   |   |   |   |   | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 31.1                                            |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 31.2                                            |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| Additional exhibits furnished with this report: |    |   |    |   |    |   |    |   |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 32.1                                            |   | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 32.2                                            |   | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 101.INS†                                  |   | XBRL Instance Document |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 101.SCH†                                  |   | XBRL Taxonomy Extension Schema Document |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 101.CAL†                                  |   | XBRL Taxonomy Extension Calculation Linkbase Document |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 101.DEF†                                  |   | XBRL Taxonomy Extension Definition Linkbase Document |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 101.LAB†                                  |   | XBRL Taxonomy Extension Label Linkbase Document |    |   |    |   |    |   |    | X |
|                                            |   |   |   |   |   |   |   |   |   |   |
| 101.PRE†                                  |   | XBRL Taxonomy Extension Presentation Linkbase Document |    |   |    |   |    |   |    | X |

|   |                                                         |
|---|---------------------------------------------------------|
| * | Management contract or compensatory plan or arrangement |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| † | Attached as Exhibit 101 to this Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2016 are the following formatted in eXtensible Business Reporting Language (“XBRL”): (1) Condensed Consolidated Balance Sheets, (2) Condensed Consolidated Statements of Operations, (3) Condensed Consolidated Statements of Comprehensive Income (Loss), (4) Condensed Consolidated Statements of Cash Flows, and (5) Notes to Condensed Consolidated Financial Statements. |