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Segment Information
6 Months Ended
Sep. 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 All Play. During the three months ended September 30, 2012, we renamed our Social/Mobile studios to All Play. 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 income to our consolidated operating loss for the three and six months ended September 30, 2012 and 2011 (in millions):
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
EA Labels segment:
 
 
 
 
 
 
 
Net revenue before revenue deferral
$
1,059

 
$
1,012

 
$
1,526

 
$
1,518

Depreciation and amortization
(13
)
 
(15
)
 
(29
)
 
(30
)
Other expenses
(792
)
 
(805
)
 
(1,253
)
 
(1,334
)
EA Labels segment income
254

 
192

 
244

 
154

Reconciliation to consolidated operating loss:
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
Revenue deferral
(880
)
 
(800
)
 
(1,195
)
 
(1,050
)
Recognition of revenue deferral
511

 
481

 
1,290

 
1,206

Other net revenue
21

 
22

 
45

 
40

Depreciation and amortization
(37
)
 
(32
)
 
(71
)
 
(58
)
Acquisition-related contingent consideration

 
(17
)
 
20

 
(19
)
Restructuring and other charges
2

 
1

 
(25
)
 
(17
)
Stock-based compensation
(44
)
 
(43
)
 
(83
)
 
(81
)
Other expenses
(191
)
 
(178
)
 
(374
)
 
(322
)
Consolidated operating loss
$
(364
)
 
$
(374
)
 
$
(149
)
 
$
(147
)

EA Labels segment income differs from consolidated operating loss 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 9 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.
Information about our total net revenue by revenue composition for the three and six months ended September 30, 2012 and 2011 is presented below (in millions): 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
Publishing and other
$
365

 
$
450

 
$
957

 
$
1,097

Wireless, Internet-derived, advertising (digital)
324

 
234

 
666

 
466

Distribution
22

 
31

 
43

 
151

Net revenue
$
711

 
$
715

 
$
1,666

 
$
1,714


Information about our operations in North America, Europe and Asia as of and for the three and six months ended September 30, 2012 and 2011 is presented below (in millions): 
 
Three Months Ended
September 30,
 
Six Months Ended
September 30,
 
2012
 
2011
 
2012
 
2011
Net revenue from unaffiliated customers
 
 
 
 
 
 
 
North America
$
329

 
$
337

 
$
779

 
$
838

Europe
332

 
328

 
767

 
766

Asia
50

 
50

 
120

 
110

Net revenue
$
711

 
$
715

 
$
1,666

 
$
1,714


 
 
As of September 30,
 
2012
 
2011
Long-lived assets
 
 
 
North America
$
2,109

 
$
2,161

Europe
462

 
438

Asia
47

 
49

Total
$
2,618

 
$
2,648


The basis by which we attribute net revenue from external customers to individual countries is based on the location of the legal entity that sells the products and/or services. Revenue generated in the United States represents 99 percent of our total North America net revenue. Revenue generated in Switzerland during the three and six months ended September 30, 2012 represents $92 million and $365 million, or 13 percent and 22 percent, of our total net revenue, respectively. Revenue generated in Switzerland during the three and six months ended September 30, 2011 represents $59 million and $229 million, or 8 percent and 13 percent, of our total net revenue, respectively. Revenue generated in the United Kingdom did not represent 10 percent or greater of our total net revenue during the three and six months ended September 30, 2012. Revenue generated in the United Kingdom during the three and six months ended September 30, 2011 represents $70 million and $172 million, or 10 percent of our total net revenue for each period. There were no other countries with net revenues greater than 10 percent.
Our direct sales to GameStop Corp. represented approximately 17 percent and 15 percent of total net revenue for the three and six months ended September 30, 2012, respectively. Our direct sales to GameStop Corp. represented approximately 16 percent and 17 percent of total net revenue for the three and six months ended September 30, 2011, respectively.