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Segment Information
9 Months Ended
Dec. 31, 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 five operating labels, EA Games, EA SPORTS, Maxis, PopCap and All Play. During the three months ended September 30, 2012, we renamed our Social/Mobile studios to All Play. During the three months ended December 31, 2012, we integrated the social and mobile components of our BioWare label into our All Play organization while the remaining components of our BioWare label were integrated into our EA Games label. Our CODM regularly reviews the results of each of the operating labels. Due to their similar economic characteristics, products, and distribution methods, all five 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 nine months ended December 31, 2012 and 2011 (in millions):
 
Three Months Ended
December 31,
 
Nine Months Ended
December 31,
 
2012
 
2011
 
2012
 
2011
EA Labels segment:
 
 
 
 
 
 
 
Net revenue before revenue deferral
$
1,154

 
$
1,613

 
$
2,680

 
$
3,131

Depreciation and amortization
(13
)
 
(13
)
 
(42
)
 
(43
)
Other expenses
(743
)
 
(957
)
 
(1,996
)
 
(2,291
)
EA Labels segment income
398

 
643

 
642

 
797

Reconciliation to consolidated operating loss:
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
Revenue deferral
(971
)
 
(1,370
)
 
(2,166
)
 
(2,420
)
Recognition of revenue deferral
711

 
780

 
2,001

 
1,986

Other net revenue
28

 
38

 
73

 
78

Depreciation and amortization
(47
)
 
(35
)
 
(118
)
 
(93
)
Acquisition-related contingent consideration
45

 
11

 
65

 
(8
)
Restructuring and other charges
(2
)
 

 
(27
)
 
(17
)
Stock-based compensation
(39
)
 
(48
)
 
(122
)
 
(129
)
Other expenses
(162
)
 
(202
)
 
(536
)
 
(524
)
Consolidated operating loss
$
(39
)
 
$
(183
)
 
$
(188
)
 
$
(330
)

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 games (see Note 10 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 nine months ended December 31, 2012 and 2011 is presented below (in millions): 
 
Three Months Ended
December 31,
 
Nine Months Ended
December 31,
 
2012
 
2011
 
2012
 
2011
Publishing and other
$
568

 
$
738

 
$
1,525

 
$
1,835

Wireless, Internet-derived, advertising (digital)
321

 
274

 
987

 
740

Distribution
33

 
49

 
76

 
200

Net revenue
$
922

 
$
1,061

 
$
2,588

 
$
2,775


Information about our operations in North America, Europe and Asia as of and for the three and nine months ended December 31, 2012 and 2011 is presented below (in millions): 
 
Three Months Ended
December 31,
 
Nine Months Ended
December 31,
 
2012
 
2011
 
2012
 
2011
Net revenue from unaffiliated customers
 
 
 
 
 
 
 
North America
$
409

 
$
500

 
$
1,188

 
$
1,338

Europe
464

 
505

 
1,231

 
1,271

Asia
49

 
56

 
169

 
166

Net revenue
$
922

 
$
1,061

 
$
2,588

 
$
2,775


 
 
As of December 31,
 
2012
 
2011
Long-lived assets
 
 
 
North America
$
2,073

 
$
2,179

Europe
457

 
438

Asia
48

 
48

Total
$
2,578

 
$
2,665


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 over 99 percent of our total North America net revenue. Revenue generated in Switzerland during the three and nine months ended December 31, 2012 represents $196 million and $561 million, or 21 percent and 22 percent, of our total net revenue, respectively. Revenue generated in Switzerland during the three and nine months ended December 31, 2011 represents $147 million and $376 million, or 14 percent of our total net revenue for each period. There were no other countries with net revenue greater than 10 percent.
Our direct sales to GameStop Corp. represented approximately 14 percent and 15 percent of total net revenue for the three and nine months ended December 31, 2012, respectively. Our direct sales to GameStop Corp. represented approximately 14 percent and 15 percent of total net revenue for the three and nine months ended December 31, 2011, respectively.