Segment Information

3 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our reporting segments are based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations.

Our business is currently organized around our six operating labels, EA Games, EA SPORTS, Maxis, BioWare, PopCap and Social/Mobile studios. Our CODM regularly reviews the results of each of the operating labels. Due to their similar economic characteristics, products, and distribution methods, all six of the operating labels are aggregated into one Reportable Segment (the “EA Labels” segment) as shown below. In addition to assessing performance and allocating resources based on our operating segments, to a lesser degree, our CODM also reviews results based on geographic performance.

The following table summarizes the financial performance of the EA Labels segment and a reconciliation of the EA Labels segment's loss to our consolidated operating income for the three months ended June 30, 2012 and 2011. Prior periods reported below have been restated to reflect our current EA Labels reporting segment structure (in millions):

	Three Months Ended June 30,
	2012			2011
EA Labels segment:
Net revenue before revenue deferral	$	467		$	516
Depreciation and amortization	(16		)	(15		)
Other expenses	(461		)	(534		)
EA Labels segment loss	(10		)	(33		)
Reconciliation to consolidated operating income:
Other:
Revenue deferral	(315		)	(250		)
Recognition of revenue deferral	779			725
Other net revenue	24			8
Depreciation and amortization	(34		)	(26		)
Acquisition-related contingent consideration	20			(2		)
Restructuring and other charges	(27		)	(18		)
Stock-based compensation	(39		)	(38		)
Other expenses	(183		)	(139		)
Consolidated operating income	$	215		$	227

EA Labels segment loss differs from consolidated operating income primarily due to the exclusion of (1) certain corporate and other functional costs that are not allocated to EA Labels, (2) the deferral of certain net revenue related to online-enabled packaged goods and digital content (see Note 8 for additional information regarding deferred net revenue (packaged goods and digital content)), and (3) our Switzerland distribution revenue and expenses that is not allocated to EA Labels. Our CODM reviews assets on a consolidated basis and not on a segment basis.

As we continue to evolve our business and more of our products are delivered to consumers digitally via the Internet, management places a greater emphasis and focus on assessing its performance through a review of net revenue by revenue composition rather than net revenue by platform. Information about our total net revenue by revenue composition for the three months ended June 30, 2012 and 2011 is presented below (in millions):

	Three Months Ended June 30,
	2012		2011
Publishing and other	$	592	$	647
Wireless, Internet-derived, advertising (digital)	342		232
Distribution	21		120
Net revenue	$	955	$	999

Information about our operations in North America, Europe and Asia as of and for the three months ended June 30, 2012 and 2011 is presented below (in millions): 

	Three Months Ended June 30,
	2012		2011
Net revenue from unaffiliated customers
North America	$	450	$	501
Europe	435		438
Asia	70		60
Net revenue	$	955	$	999

	As of June 30,
	2012		2011
Long-lived assets
North America	$	2,123	$	1,289
Europe	452		440
Asia	46		53
Total	$	2,621	$	1,782

Our direct sales to GameStop Corp. represented approximately 11 percent and 18 percent of total net revenue for the three months ended June 30, 2012 and 2011, respectively.