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Segment Information
12 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
Segment Information
(17)  SEGMENT INFORMATION
Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Executive Chairman, 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 labels, EA Games, EA SPORTS, Maxis, PopCap and All Play. During the year ended March 31, 2013, we renamed our Social/Mobile studios to All Play and integrated the social and mobile studios of our BioWare label into our All Play organization while the remaining studios of our BioWare label were integrated into our EA Games label. Our CODM regularly reviews the aggregated results of the five labels to assess overall performance and allocate resources. All five of the labels comprise our operating segment (the “EA Labels” segment) as shown below. 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 profit to our consolidated operating income (loss) for the fiscal years ended March 31, 2013, 2012 and 2011 (in millions): 
 
Year Ended March 31,
 
2013
 
2012
 
2011
EA Labels segment:
 
 
 
 
 
Net revenue before revenue deferral
$
3,715

 
$
4,122

 
$
3,716

Depreciation and amortization
(56
)
 
(63
)
 
(57
)
Other expenses
(2,688
)
 
(3,006
)
 
(2,818
)
EA Labels segment profit
971

 
1,053

 
841

Reconciliation to consolidated operating income (loss):
 
 
 
 
 
Other:
 
 
 
 
 
Revenue deferral
(3,022
)
 
(3,142
)
 
(2,769
)
Recognition of revenue deferral
3,026

 
3,099

 
2,530

Other net revenue
78

 
64

 
112

Depreciation and amortization
(185
)
 
(134
)
 
(116
)
Acquisition-related contingent consideration
64

 
(11
)
 
17

Gain on strategic investments, net
39

 

 
23

Loss on licensed intellectual property commitment (COR)

 

 
1

Restructuring and other charges
(27
)
 
(16
)
 
(161
)
Stock-based compensation
(164
)
 
(170
)
 
(174
)
Other expenses
(659
)
 
(708
)
 
(616
)
Consolidated operating income (loss)
$
121

 
$
35


$
(312
)

EA Labels segment profit 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 9 for additional information regarding deferred net revenue (online-enabled games)), 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 assesses its performance through a review of net revenue by revenue composition.
Information about our total net revenue by revenue composition for the fiscal years ended March 31, 2013, 2012 and 2011 is presented below (in millions): 
 
Year Ended March 31,
 
2013
 
2012
 
2011
Publishing and other
$
2,255

 
$
2,761

 
$
2,632

Wireless, Internet-derived, advertising (digital)
1,440

 
1,159

 
743

Distribution
102

 
223

 
214

Net revenue
$
3,797

 
$
4,143

 
$
3,589


Information about our operations in North America, Europe and Asia as of and for the fiscal years ended March 31, 2013, 2012 and 2011 is presented below (in millions): 
 
Year Ended March 31,
 
2013
 
2012
 
2011
Net revenue from unaffiliated customers
 
 
 
 
 
North America
$
1,701

 
$
1,991

 
$
1,836

Europe
1,867

 
1,898

 
1,563

Asia
229

 
254

 
190

Total
$
3,797

 
$
4,143

 
$
3,589


 
As of March 31,
 
2013
 
2012
Long-lived assets
 
 
 
North America
$
2,024

 
$
2,165

Europe
451

 
442

Asia
47

 
48

Total
$
2,522

 
$
2,655


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 fiscal years 2013 and 2012 represents $885 million and $589 million or 23 percent and 14 percent of our total net revenue, respectively. Revenue generated in Switzerland did not represent 10 percent or greater of our total net revenue during fiscal year 2011. Revenue generated in United Kingdom did not represent 10 percent or greater of our total net revenue during fiscal years 2013 and 2012. Revenue generated in United Kingdom during fiscal year 2011 represents $411 million, or 11 percent of our total net revenue. There were no other countries with net revenue greater than 10 percent.
Our direct sales to GameStop Corp. represented approximately 13 percent, 15 percent, and 16 percent of total net revenue in fiscal years 2013, 2012, and 2011, respectively. Our direct sales to Wal-Mart Stores, Inc. represented approximately 10 percent of total net revenue in fiscal year 2011. Our direct sales to Wal-Mart Stores, Inc. did not exceed 10 percent of net revenue for fiscal years 2013 and 2012.