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EA Annual Report 2011


2011 Annual Report
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EA Annual Report 2011
creating award winning
games since 1982
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EA Annual Report 2011
Company 4
Letter to Stockholders 5
What We Do 6
EA Strategy 7
EA Properties 8
EA Operating Structure 9
EA Play and Interactive 10
EA Games 12
EA Bioware 14
EA Sports 16

Financial Data 18
Consolidated Balance Sheets 20
Consolidated Statements of Operations 21
Consolidated Statements of Cash Flows 22
Consolidated Statements of Stockholders
Equity and Comprehensive Loss 24
Notes to Consolidated Financial Statements 28
Report of independent Registered Public Accounting Firm 30
Market information 32
Stock Performance 33
Global Revenue 34
Electronic Arts inc. Corporate Information 36
Table of Contents
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EA Annual Report 2011
June 10, 2011
DEAR FELLOW STOCKHOLDERS:
You are cordially invited to join us at our 2011 Annual Meeting of Stockholders on July 28, 2011
at 2:00 p.m. The meeting will be held at the headquarters campus of Electronic Arts in Building
250 (please note that the street address for Building 250 is 250 Shoreline Drive, Redwood City,
California). For your convenience, we are also pleased to offer a live webcast of our Annual
Meeting on the Investor Relations section of our web site.
At this meeting, we are asking the stockholders to:
Elect Leonard S. Coleman, Jeffrey T. Huber, Geraldine B. Laybourne, Gregory B. Maffei,
Vivek Paul, Lawrence F. Probst III, John S. Riccitiello, Richard A. Simonson, Linda J.
Srere and Luis A. Bias to the Board of Directors to hold office for a one-year term.
Approve an amendment to our 2000 Equity Incentive Plan and our 2000 Employee
Stock Purchase Plan.
Cast an advisory vote on the compensation of the named executive officers.
Cast an advisory vote on the frequency of holding future advisory votes on the compensation
of the named executive officers.
Ratify the appointment of KPMG LLP as our independent registered public accounting
firm for fiscal 2012.
After the meeting, we will report on our recent
performance and answer your questions.
Details regarding admission to the meeting
and the business to be conducted are described
in the Notice of Internet availability of Proxy
Materials you received in the mail and in this proxy
statement. We have also made available a copy of
our Annual Report for the fiscal year ended March
31, 2011 with this proxy statement. We encourage
you to read our Annual Report. It includes
our audited financial statements and provides
Information about our business and products.
Thank you for your ongoing support of Electronic Arts.
Sincerely,
John S. Riccitiello
Chief Executive Officer
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EA FY11 Revenue Breakdown by Platform
%27% %
26%%
PC
18% %
10% %
6% %
MOBILE
6% %
2% %
2%%
OTHER
4% %
We develop, market, publish and distribute game software and content
that can be played by consumers on a variety of video game machines and
electronic devices (which we call platforms), including:
Video game consoles, such as the Sony PLAYSTATION 3,
Microsoft Xbox 360 and Nintendo Wii.
Personal computers, including the Apple Macintosh (we refer
to personal computers and the Macintosh together as PCs).
Mobile phones, such as the Apple iPhone, Google Android,
compatible phones, and feature phones.
Tablets and electronic readers, such as the Apple iPad and
the Amazon Kindle.
The Internet, including on social networking sites such as
Facebook and Steam.
Handheld game players such as the Sony PlayStation
Portable (PSP) and Nintendo DS and 3DS.
Our ability to publish games across multiple platforms has been, and will continue
to be, a cornerstone of our product strategy. Technology advances continue
to create new platforms for interactive entertainment. Examples include wireless
technologies, streaming gaming services, and Internet-connected televisions. We
expect that new platforms such as these will continue to grow the consumer base for
our products while also providing competition for established video game platforms.
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EA Annual Report 2011
Another key part of our strategy is to publish products that can be iterated,
or sequeled. For example, a new edition for most of our sports products, such as
Madden NFL, are released each year. Other products, such as The Sims and Battlefield
are sequeled on a less-frequent basis. We refer to these successful, iterated product
families as franchises. We also make add-on content available for purchase online
or through expansion packs sold at retail for many of our products.
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We own our 660,000-sqft Redwood
Shores headquarters facilities located in
Redwood City, California which includes
a product development studio and
administrative and sales functions.
We also own a 418,000-square-foot
product development studio facility in
Burnaby, Canada and a 122,000-square-
foot facility in Chertsey, England (which
we no longer occupy). In addition
to the properties we own, we
lease approximately 1.0 million
square feet in North America and
0.7 million square feet in Europe
and Asia at various research and
development, sales and administration
and distribution facilities, including
significant leases for our multifunction
facility in Guildford, Surrey, UK, our
research and development studios in Los
Angeles, California and Orlando, Florida,
and our distribution center in Louisville,
Kentucky.
While we continually evaluate our
facility requirements, we believe
that suitable additional or substitute
space will be available as needed
to accommodate our future needs.
For information regarding our lease
commitments, see Note 11 of the Notes
to Consolidated Financial Statements.
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EA Annual Report 2011
TIBURON
INTERACTIVE
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We are organized around
three operating Labels (EA
Games, EA SPORTS and EA
Play), our EA Interactive
organization (EA Mobile, the
combined results of Pogo
and Playfish, and Hasbro)
and our Global Publishing
Organization.
Each Label and EA
Interactive operates
globally with dedicated
game development and
marketing teams. Global
Publishing operates in three
regions, North America,
Europe and Asia, and is
responsible for a number
of business functions such
as: strategic planning,
field marketing, sales,
distribution and operations.
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The EA Play Label creates
and markets games and
experiences that are
easily accessible, inspire
creativity and fun, and
transcend core video
game culture into a world
of engaging and relevant
entertainment for people
of all ages.
Everyone is the EA Play Label
consumer - from seniors to tots to
experienced gamers to those who have
never played a game.
The Sims has sold over 100 million
units world-wide since it was originally
launched in 2000. A significant factor
in its success has been the regular
introduction of expansion pack with
new content and gameplay features
that can be purchased and used in
connection with our core products,
The Sims and The Sims 2. The Sims
3 shipped in June 2009 along with
an all-new online store and new
community features. In addition to
expansion packs, the Sims Studio
also developed several console
products, most notably MySims and
SimAnimals on the Wii and DS.
In August 2007, EA entered into a
strategic relationship with Hasbro
through which we can create games
based on a significant number of
Hasbros classic board games and
toys, including MONOPOLY, SCRABBLE
(North America only), YAHTZEE, NERF,
G.I. JOE, and LITTLEST PET SHOP.
The EA Play Label includes The Sims
Studio, MySims, EAs Hasbro, Maxis
and Casual Studios. The Label creates
games based on original IP and
licensed IP, with titles such as Harry
Potter, BOOM BLOX, and many more.
EA Interactive represents
EAs business in the
emergina areas of online
and mobile games.
EA Mobile is the worlds leading
wireless entertainment publisher
including the #1 app developer on
Apples App Store with award-
winning games such as Tetris, Scrabble,
Bejeweled, The Sims, and Need For
Speed. Pogo.com is one of the leading
casual gaming destinations on the
Internet, with more than 1.9 million
paying subscribers each month.
EA Interactive is also home to EAs
growing business in the social gaming
sector. Led by Playfish, which EA
acquired in 2009, gamers of all ages
enjoy titles like Pet Society, Hotel
City and Restaurant City on social
platforms like Facebook and others.
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EA Annual Report 2011
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EA Annual Report 2011
The EA Games Label is home to the largest number of
our studios and development teams, which together
create an expansive and diverse portfolio of games
and related content and services marketed under the
EA brand in categories such as action-adventure, role
playing, racing and first-person shooter games.
The EA Games portfolio is comprised primarily of wholly-owned intellectual
properties and includes several established franchises such as Battlefield, Dead
Space, Dragon Age, Mass Effect, Medal of Honor and Need for Speed.
EA Games titles are developed primarily at the following EA studios:
Criterion in Guildford, England
DICE in Stockholm, Sweden
EA in Los Angeles
Visceral in Redwood City, California
Montreal in Canada;
Shanghai in China
Melbourne in Australia
EA Mythic in Fairfax Virginia
EA Canada in Burnaby, Canada
EA Games also includes the EA Partners group, which contracts with external
game developers, to provide these developers with a variety of services including
development assistance, publishing, and distribution of their games.
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Since 1995, BioWare has created some of the industrys most critically acclaimed
titles and franchises, including: Baldurs Gate, Neverwinter Nights, Star Wars:
Knights of the Old Republic, Jade Empire, Mass Effect and Dragon Age.
BioWare also oversees the award-winning MMOs Warhammer Online: Age of
Reckoning, Dark Age of Camelot and Ultima Online.
BioWare currently operates in seven locations across the world, including:
Edmonton (Alberta, Canada)
Montreal (Quebec, Canada)
Austin(Texas)
Fairfax (Virginia)
San Francisco (California)
Los Angeles (California)
Galway (Ireland).
Currently announced projects at BioWare include the story-driven, massively
multiplayer online roleplaying game, Star Wars: The Old Republic, Mass Effect
3, the sequel to 2010s Game of the Year Mass Effect 2, ongoing downloadable
content for Dragon Age II such as Dragon Age II Legacy, the social Play4Free RPG
for Facebook and Google+, Dragon Age Legends, and the new Play4Free online
multiplayer PvP game, Warhammer Online: Wrath of Heroes.
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The BioWare Label is a division of EA which crafts
high quality, multiplatform, role-playing, MMO
and strategy games, focused on emotionally
engaging, rich stories with unforgettable
characters and vast worlds to discover.
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EA Annual Report 2011
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EA Annual Report 2011
The EA SPORTS Label develops a collection of
sports-based video games and related content and
services marketed under the EA SPORTS brand.

EA SPORTS games range from simulated sports titles with realistic graphics
based on real-world sports leagues, players, events and venues to more
casual games with arcade-style game play and graphics.
We seek to release new iterations of many of our EA SPORTS titles annually
in connection with the commencement of a sports leagues season or a major
sporting event when appropriate.
Our EA SPORTS franchises include FIFA, Fight Night, Madden NFL, NCAA
Football, NHL Hockey, and Tiger Woods PGA Tour.
EA SPORTS games are developed primarily at our EA Canada studio in
Burnaby, British Columbia, and our EA Tiburon studio located in Orlando, Florida.
FIFA 11 sold a genre-record 2.6 million copies in its first week on the shelves
and has gone on to move 8 million copies worldwide. Thanks to that latest
push, Electronic Arts announced today that the FIFA franchise has topped
100 million units sold during its 18-year lifetime.

By reaching the historic sales marker, FIFA joins a short list of video game
franchises in the 100-million Club, whose members include: Mario (240
million), Pokemon (207 million), Tetris (125 million), The Sims (125 million),
and Need for Speed (100 million).
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EA Annual Report 2011
Consolidated Balance Sheets as of March 31, 2011 and 2010
Consolidated Statements of Operations for the Years Ended
March 31, 2011, 2010 and 2009
Consolidated Statements of Stockholders Equity Comprehensive Loss
for the Years Ended March 31, 2011, 2010 and 2009
Consolidated Statements of Cash Flows for the Years Ended
March 31, 2011, 2010 and 2009



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(In millions, except par value data)

Assets
Current assets:
Cash and cash equivalents
Short-term investments
Marketable equity securities
Receivables, net of allowances of $304 and $217, respectively
Inventories
Deferred income taxes, net
Other current assets
Total current assets
Property and equipment, net
Goodwill
Acquisition-related intangibles, net
Deferred income taxes, net

Other assets
Total Assets
March
2011
March
2010
(In millions, except par value data)

Liabilities and Stockholders Equity
Current liabilities:
Accounts payable
Accrued and other current liabilities
Deferred net revenue (packaged goods and digital content)
Total current liabilities
Income tax obligations
Deferred income taxes, net
Other liabilities
Total liabilities
Commitments and contingencies (See Note 11)
Stockholders equity:
Preferred stock, $0.01 par value. 10 shares authorized
Common stock, $0.01 par value. 1,000 shares authorized;
333 and 330 shares issued and outstanding, respectively
Paid-in capital
Retainedearnings(accumulateddefcit)
Accumulated other comprehensive income
Total stockholders equity

Total Liabilities and Stockholders Equity
$1,579
497
161
335
77
56
327
3,027
513
1,110
144
49
80
$4,928
$ 228
768
1,005
2,001
192
37
134
2,364
3
2,495
(153)
219
2,564
4,928
$1,273
432
291
206
100
44
239
2,585
537
1,093
204
52
175
$4,646
$ 91
717
766
1,574
242
2
99
1,917
3
2,375
123
228
2,729
4,646
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EA Annual Report 2011
(In millions, except per share data)
Net revenue
Cost of goods sold

Grossproft
Operating expenses:
Marketing and sales
General and administrative
Research and development
Restructuring and other charges
Amortization of intangibles
Acquisition-related contingent consideration
Goodwill impairment
Certain abandoned acquisition-related costs
Acquired in-process technology
Total operating expenses

Operating loss
Gains (losses) on strategic investments, net
Interest and other income, net

Lossbeforeprovisionfor(beneftfrom)incometaxes
Provisionfor(beneftfrom)incometaxes
Net loss
Net loss per share:
Basic and Diluted
Number of shares used in computation:
Basic and Diluted
$3,589
1,499
2,090
747
301
1,153
151
57
(17)


2,402
(312)
23
10
(279)
(3)
$(276)
$(0.84)
330
$3,654
1,866
1,788
730
320
1,229
140
53
2
2,474
(686)
(26)
6
(706)
(29)
$ (677)
$ (2.08)
325
$ 4,212
2,127
2,085
691
332
1,359
80
58
368
21
3
2,912
(827)
(62)
34
(855)
233
$ (1,088)
$ (3.40)
320
Year Ended March 31,
2011 2010 2009
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$ (267)
180
176
1
(25)
(17)
(122)
25
5
114
(4)
24
239
320
(59)
132
442
(514)
(16)
(15)
$(677)
192
187
39
22
2
(66)
123
18
(57)
(138)
2
505
152
(233)
(72)
17
710
(611)
(100)
(283)
(572)
$ (1,088)
198
203
25
65
368
3
221
(49)
52
(26)
(56)
222
(126)
12
(115)
891
(695)
(58)
23
(In millions)
OPERATING ACTIVITIES
Net loss
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation, amortization and accretion, net
Stock-based compensation
Other non-cash restructuring charges
Net losses (gains) on investments and sale of property
and equipment
Acquisition-related contingent consideration
Goodwill impairment
Acquired in-process technology
Change in assets and liabilities:
Receivables, net
Inventories
Other assets
Accounts payable
Accrued and other liabilities
Deferred income taxes, net
Deferred net revenue
(packaged goods and digital content)

Net cash provided by operating activities
INVESTING ACTIVITIES
Purchase of headquarters facilities
Capital expenditures
Proceeds from sale of marketable equity securities
Proceeds from maturities and sales of
short-term investments
Purchase of short-term investments
Acquisition-related restricted cash
Acquisition of subsidiaries, net of cash acquired
Net cash provided by (used in) investing activities
Year Ended March 31,
2011 2010 2009
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EA Annual Report 2011
34
1
(58)
(23)
24
306
1,273
$1,579
$ 21
$ (4)
39
14
53
19
(348)
1,621
$1,273
$ (34)
$ (54)
$ 11
89
2
91
(58)
68
1,553
$1,621
25

(366)
FINANCING ACTIVITIES
Proceeds from issuance of common stock
Excesstaxbeneftfromstock-basedcompensation
Repurchase and retirement of common stock

Net cash provided by (used in)
fnancingactivities
Effect of foreign exchange on cash and
cash equivalents
Increase (decrease) in cash and cash equivalents
Beginning cash and cash equivalents
Ending cash and cash equivalents

Supplementalcashfowinformation:
Cash paid (refunded) during the year for
income taxes, net
Non-cash investing activities:
Change in unrealized losses on
avaliable-for-sale securities, net of taxes
Equity consideration granted in
connection with acquisition
See accompanying Note to Consolidated Financial Statements.
Year Ended March 31,
2011 2010 2009
24
$ 1,864
73
203
2
2,142

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(In millions, share data in thousands)
Balances as of March 31, 2008
Net loss
Change in unrealized losses on
available-for-sale securities,
net
Reclassifcationadjustmentfor
losses realized on available-
for-sale securities, net
Change in unrealized gains on
derivative instruments, net
Reclassifcationadjustmentfor
gains realized on derivative
instruments, net
Foreign currency translation
adjustments
Total comprehensive loss
Issuance of common stock
Stock-based compensation
Taxbeneftfromexerciseof
stock options
Balances as of March 31, 2009
Net loss
Change in unrealized losses on
available-for-sale securities,
net
Reclassifcationadjustmentfor
losses realized on available-
for-sale securities, net
Change in unrealized gains on
derivative instruments, net
Reclassifcationadjustmentfor
gains realized on derivative
instruments, net
Foreign currency translation
adjustments
Total comprehensive loss
Issuance of common stock
Stock-based compensation
Taxbeneftfromexerciseof
stock options
Equity consideration granted
in connection with acquisition
21
187
14
11
Common Stock
Paid-in
Capital Shares Amount
$ 3
3
317,681
5,161
322,842
6,745
25
EA Annual Report 2011
Retained
Earnings
(Accumulated
Defcit)
$ 1,888
(1,088)
800
(677)
Accumulated
Other
Comprehensive
Income
Total
Stockholders
Equity
$ 584
(366)
55
14
(10)
(88)
189
(54)
21
(2)
1
$ 4,339
(1,088)
(366)
55
14
(10)
(88)
(1,483)
73
203
2
3,134
(677)
(54)
21
(2)
1
73
(638)
21
187
14
11
26
E|ELTR0N|L kRT5 |NL. kN0 5J85|0|kR|E5 L0N50||0kTE0 5TkTEhENT5
0F 5T0LKd0|0ER5 E0J|TY kN0 L0hPREdEN5|E |055 L0NT|NJE0
2,375
4
(58)
176
(2)
$2,495
Balances as of March 31, 2010
Net loss
Change in unrealized losses on
available-for-sale securities,
net
Reclassifcationadjustmentfor
losses realized on available-
for-sale securities, net
Change in unrealized gains on
derivative instruments, net
Reclassifcationadjustmentfor
gains realized on derivative
instruments, net
Foreign currency translation
adjustments
Total comprehensive loss
Issuance of common stock
Stock-based compensation
Repurchase and retirement of
common stock
Taxbeneftfromexerciseof
stock options
Balances as of March 31, 2011
329,587
6,081
(3,104)
332,564 3
Common Stock
Paid-in
Capital Shares Amount
3
27
EA Annual Report 2011
123
(276)
$ (153)
Retained
Earnings
(Accumulated
Defcit)
228
(4)
(28)
(7)
5
25
$ 219
Accumulated
Other
Comprehensive
Income
Total
Stockholders
Equity
2,729
(276)
(4)
(28)
(7)
5
25
(285)
4
(58)
176
(2)
$ 2,564
28
E|ELTR0N|L kRT5 |NL. kN0 5J85|0|kR|E5
N0TE5 T0 L0N50||0kTE0 F|NkNL|k| 5TkTEhENT5
(1) DESCRIPTION OF BUSINESS AND
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
We develop, market, publish and distribute
game software and content that can be played
by consumers on a variety of platforms,
including video game consoles (such as the
Sony PLAYSTATION 3, Microsoft Xbox 360 and
Nintendo Wii), personal computers, mobile
phones (such as the Apple iPhone and Google
Android compatible phones), tablets and
electronic readers (such as the Apple iPad and
Amazon Kindle), the Internet, and handheld
game players (such as the PlayStation Portable
(PSP) and the Nintendo DS and 3DS). Some
of our games are based on content that we
license from others (e.g., FIFA, Madden NFL,
Harry Potter, and Hasbros toy and game
intellectual properties), and some of our
games are based on our own wholly-owned
intellectual property (e.g., The Sims, Need for
Speed, and Dead Space). Our goal is to publish
titles with global mass-market appeal, which
often means translating and localizing them
for sale in non-English speaking countries. In
addition, we also attempt to create software
game franchises that allow us to publish new
titles on a recurring basis that are based on
the same property. Examples of this franchise
approach are the annual iterations of our
sports-based products (e.g., FIFA, Madden NFL,
and NCAA Football), wholly-owned properties
that can be successfully sequeled (e.g., The
Sims, Need for Speed, and Battlefield) and
titles based on long-lived literary and/or movie
properties (e.g., Harry Potter).
A summary of our significant accounting
policies applied in the preparation of our
Consolidated Financial Statements follows:
Consolidation
The accompanying Consolidated Financial
Statements include the accounts of Electronic
Arts Inc. and its wholly-owned subsidiaries.
Intercompany balances and transactions have
been eliminated in the consolidation.
Fiscal Year
Our fiscal year is reported on a 52- or 53-week
period that ends on the Saturday nearest
March 31. Our results of operations for the
fiscal years ended March 31, 2011 and 2009 each
contained 52 weeks and ended on April 2, 2011
and March 28, 2009, respectively. Our results of
operations for the fiscal year ended March 31, 2010
contained 53 weeks and ended on April 3, 2010.
For simplicity of disclosure, all fiscal periods are
referred to as ending on a calendar month-end.
Inventories
Inventories consist of materials (including
manufacturing royalties paid to console
manufacturers), labor and freight-in and are
stated at the lower of cost (first-in, first-
out method) or market value. We regularly
review inventory quantities on-hand. We
write down inventory based on excess or
obsolete inventories determined primarily by
future anticipated demand for our products.
Inventory write-downs are measured as the
difference between the cost of the inventory
and market value, based upon assumptions
about future demand that are inherently
difficult to assess. At the point of a loss
recognition, a new, lower cost basis for that
inventory is established, and subsequent
changes in facts and circumstances do not
result in the restoration or increase in that
newly established basis.
29
EA Annual Report 2011
Balance Sheet Details

Inventories
Inventories as of March 31, 2011 and 2010 consisted of (in millions):
Raw Materials and work in progress
Finished goods
Inventories


Property and Equipment, Net
Property and equipment, net, as of March 31, 2011 and 2010 consisted of (in millions):
Computer equipment and software
Buildings
Leasehold improvements
Offceequipment,furnitureandfxtures
Land
Warehouse equipment
Construction in progress

Less accummulated depreciation
Property and equipment net
March
2011
March
2011
March
2010
March
2010
$ 8
69
$ 77
$ 504
355
105
67
66
10
20
1,127
(614)
$ 513
$ 10
90
$100
$ 480
347
99
71
65
10
13
1,085
(548)
$ 537
Depreciation expense associated with property and
equipment was $104 million, $123 million and $117
million for the fiscal years ended March 31, 2011,
2010 and 2009, respectively.
On July 13, 2009, we purchased our Redwood Shores
headquarters facilities comprised of approximately
660,000 square feet concurrent with the expiration
and extinguishment of the lessors financing
agreements. These facilities were subject to lease
obligations, which expired in July 2009, and had
previously been accounted for as operating leases.
The total amount paid under the terms of the leases
was $247 million, of which $233 million related to the
purchase price of the facilities and $14 million was for
the loss on our lease obligation. This $14 million loss
is included in general and administrative expense
in our Consolidated Statements of Operations for
the fiscal year ended March 31, 2010. Subsequent
to our purchase, we classified the facilities on
our Consolidated Balance Sheet as property and
equipment, net, and depreciate the facilities
acquired, excluding land, on a straight-line basis over
the estimated useful lives.
30
The Board of Directors and Stockholders
Electronic Arts Inc.:
We have audited the accompanying consolidated balance sheets of Electronic
Arts Inc. and subsidiaries (the Company) as of April 2, 2011 and April 3, 2010,
and the related consolidated statements of operations, stockholders equity and
comprehensive loss, and cash flows for each of the years in the three-year period
ended April 2, 2011. In connection with our audits of the consolidated financial
statements, we have also audited the accompanying financial statement schedule.
These consolidated financial statements and financial statement schedule are the
responsibility of the Companys management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
Fairly, in all material respects, the financial position of Electronic Arts Inc. and
subsidiaries as of April 2, 2011 and April 3, 2010, and the results of their operations
and their cash flows for each of the years in the three-year period ended April 2,
2011, in conformity with U.S. generally accepted accounting principles. Also in our
opinion, the related financial statement schedule, when considered in relation to
the basic consolidated financial statements taken as a whole, presents fairly, in all
material respects, the information set forth therein.
We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), Electronic Arts Inc.s internal
control over financial reporting as of April 2, 2011, based on criteria established in
Internal Control Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO), and our report dated May
24, 2011 expressed an unqualified opinion on the effectiveness of the Companys
internal control over financial reporting.
/s/ KPMG LLP
Mountain View, California
May 24, 2011
101
REP0RT 0F |N0EPEN0ENT RE6|5TERE0 PJ8||L kLL0JNT|N6 F|Rh
31
EA Annual Report 2011
Studios Around the World
32
Market Information
Our common stock is traded on the NASDAQ Global Select Market under the symbol
ERTS. The following table sets forth the quarterly high and low sales price per
share of our common stock from April 1, 2009 through March 31, 2011.
Fiscal Year Ended March 31, 2010:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Fiscal Year Ended March 31, 2011:
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
$23.76
22.14
21.05
18.99
$20.24
17.53
18.06
20.20
$17.48
17.69
15.86
15.70
$14.06
14.32
14.67
14.80
Prices
High
Low
Low
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2010
Q2
2010
Q3
2010
Q4
2010
High
$25
$20
$15
$10
$ 5
33
EA Annual Report 2011
Mar
2011
Mar
2010
Mar
2009
Mar
2008
Mar
2007
Mar
2006
$40
$70
$100
$140
Holders
There were approximately 1,580
holders of record of our common stock
as of May 17, 2011, and the closing price
of our common stock was $23.38 per
share as reported by the NASDAQ Global
Select Market. In addition, we believe
that a significant number of beneficial
owners of our common stock hold
their shares in street name.
Five Year Comparison
The following information shall not
be deemed to be filed with the
SEC nor shall this information be
incorporated by reference into any
future filing under the Securities
Act of 1933, as amended, or the
Securities Exchange Act of 1934, as
amended, except to the extent that
we specifically incorporate it by
reference into a filing.
The following graph shows a five-
year comparison of cumulative total
returns during the period from March
31, 2006 through March 31, 2011, for
our common stock, the NASDAQ
Composite Index, the S&P 500
Index (to which EA was added in
July 2002) and the RDG Technology
Composite Index, each of which
assumes an initialvalue of $100.
Each measurement point is as of the
end of each fiscal year ended March
31. The performance of our stock
depicted in the following graph is
not necessarily indicative of the
future performance of our stock.
5T0LK PERF0RhkNLE
34
For fiscal year 2011, Net Revenue was $3,589 million, driven by FIFA 11, Battlefield:
Bad Company 2, and Madden NFL 11. Net Revenue for fiscal year 2011 decreased $65
million, or 2 percent, as compared to fiscal year 2010. This decrease was driven by
a $481 million decrease from the Rock Band, Left 4 Dead, and EA SPORTS Active
franchises. This decrease was partially offset by a $403 million increase from the
Battlefield and Medal of Honor franchises.
For fiscal year 2011, Net Revenue in North America was $1,836 million, driven by
Madden NFL 11, Battlefield: Bad Company 2, and Medal of Honor. Net Revenue for
fiscal year 2011 decreased $189 million, or 9 percent, as compared to fiscal year 2010.
This decrease was driven by a $369 million decrease from the Rock Band, Left 4 Dead,
and EA SPORTS Active franchises. This decrease was partially offset by a $194 million
increase from the Battlefield and Medal of Honor franchises..
For fiscal year 2011, Net Revenue before Revenue Deferral in Europe was $1,722
million, driven by FIFA 11, Need for Speed Hot Pursuit, and Medal of Honor. Net
Revenue before Revenue Deferral for fiscal year 2011 increased $107 million, or
7 percent, as compared to fiscal year 2010. This increase was driven by a $204
million increase from the Medal of Honor, FIFA World Cup, and FIFA franchises.
This increase was partially offset by a $110 million decrease from Rock Band, Left 4
Dead, and Battlefield franchises.
For fiscal year 2011, Net Revenue in Asia was $190 million, driven by Battlefield: Bad
Company 2, FIFA 11,and EA SPORTS FIFA Online 2. Net Revenue for fiscal year 2011
decreased by $6 million, or 3 percent, as compared to fiscal year 2010. This decrease
was driven by a $33 million decrease from the Need for Speed, Rock Band, Left 4
Dead, EA SPORTS Active, and Fight Night franchises. This decrease was partially
offset by a $30 million increase from the Battlefield and FIFA World Cup franchises.
Worldwide
North
America
Europe
Asia
6|08k| REENJE
35
EA Annual Report 2011
Eurpoean poean
Cou Countries: C
over
116,000,000
Gamers Gamers Gamers
00,000 00 38,000
an a Russian
ent Gamers spen
n $ 15 billion on
games
000,000 16,000,000
Mexican Mexican
Gamers spent ers spent
$ 12 billion 2
on games on games
145,000,000
American
Gamers spent
$ 21 Billion
on games
35,000,0000 35,000,000
Brazilian
nt Gamers spent
n $ 2 Billion
es on game
UK:
31,000,000
Gamers spent
$ 5.5 billion
on games
Germany:
36,000,000
Gamers spent
$ 6.1 Billion
on games
France:
24,000,000
Gamers spent
$ 4.2 billion
on games
Spain:
15,000,000
Gamers spent
$ 2.1 billion
on games
Belgium:
2,000,000
Gamers spent
$ 539 Million
on games
36
BOARD OF DIRECTORS
Leonard S. Coleman
Former President
The National League of
Professional Baseball
Jeffrey T. Huber
Senior Vice President
Google Inc.
Geraldine B. Laybourne
Founder, Former Chairman &
Chief Executive Officer
Oxygen Media
Gregory B. Maffei
President &
Chief Executive Officer
Liberty Media Corporation
Vivek Paul
Founder
Akansa Capital
Lawrence F. Probst III
Chairman of the Board
Electronic Arts Inc.
Chairman of the Board
U.S. Olympic Committee
John S. Riccitiello
Chief Executive Officer
Electronic Arts Inc.
Richard A. Simonson
President, Business Operations &
Chief Financial Officer
Rearden Commerce
Linda J. Srere
Marketing & Advertising Consultant
Former President
Young & Rubicam Advertising
Luis A Ubias
President
Ford Foundation
CORPORATE OFFICERS
John S. Riccitiello
Chief Executive Officer
Eric F. Brown
Executive Vice President
Chief Financial Officer
Frank D. Gibeau
President
EA Games
Peter R. Moore
President
EA SPORTS
Jeff Karp
Executive Vice President
EA Play
Nancy Smith
Executive Vice President
Global Publishing
Joel Linzner
Executive Vice President
Business & Legal Affairs
Gabrielle Toledano
Executive Vice President
Human Resources & Facilities
Kenneth A. Barker
Senior Vice President
Chief Accounting Officer
Stephen G. Ben
Senior Vice President
General Counsel
& Corporate Secretary
CORPORATE HEADQUARTERS
209 Redwood Shores Parkway
Redwood City, CA 94065
(650) 628-1500
Investor Relations
(650) 628-7352
http://investor.ea.com
AUDITORS
KPMG LLP
Independent Registered
Public Accounting Firm
Mountain View, California
TRANSFER AGENT
Wells Fargo Shareowner
Services
St. Paul, Minnesota
ANNUAL MEETING
The Companys Annual
Meeting of Stockholders is
scheduled to be held on
July 28, 2011, at 2:00 P.M. at the
Companys headquarters:
Electronic Arts Inc.
209 Redwood Shores Parkway
Building 250
Redwood City, CA 94065
E|ELTR0N|L kRT5 |NL. L0RP0RkTE |NF0RhkT|0N
37
EA Annual Report 2011

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