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Segment Information
3 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Information
(16) 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. 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 income to our consolidated operating loss for the three months ended June 30, 2013 and 2012 (in millions):
 
Three Months Ended June 30,
 
2013
 
2012
EA Labels segment:
 
 
 
Net revenue before revenue deferral
$
482

 
$
467

Depreciation and amortization
(13
)
 
(16
)
Other expenses
(442
)
 
(461
)
EA Labels segment profit (loss)
27

 
(10
)
Reconciliation to consolidated operating income:
 
 
 
Other:
 
 
 
Revenue deferral
(355
)
 
(315
)
Recognition of revenue deferral
809

 
779

Other net revenue
13

 
24

Depreciation and amortization
(36
)
 
(34
)
Acquisition-related contingent consideration
(7
)
 
20

Restructuring and other charges
(1
)
 
(27
)
Stock-based compensation
(33
)
 
(39
)
Other expenses
(184
)
 
(183
)
Consolidated operating income
$
233

 
$
215


EA Labels segment profit (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 games (see Note 10 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.
Information about our total net revenue by revenue composition for the three months ended June 30, 2013 and 2012 is presented below (in millions): 
 
Three Months Ended June 30,
 
2013
 
2012
Publishing and other
$
452

 
$
592

Wireless, Internet-derived, advertising (digital)
482

 
342

Distribution
15

 
21

Net revenue
$
949

 
$
955


Information about our operations in North America and internationally as of and for the three months ended June 30, 2013 and 2012 is presented below (in millions): 
 
Three Months Ended June 30,
 
2013
 
2012
Net revenue from unaffiliated customers
 
 
 
North America
$
395

 
$
450

International
554

 
505

Net revenue
$
949

 
$
955


 
 
As of June 30,
 
2013
 
2012
Long-lived assets
 
 
 
North America
$
2,001

 
$
2,123

International
492

 
498

Total
$
2,493

 
$
2,621


We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services.  Note that revenue attributed to the legal entity that makes the sale is often not the country where the consumer resides. For example, revenue generated in Switzerland includes revenue derived from Internet game downloads by consumers who reside outside of Switzerland, and some of these consumers reside outside of Europe. Revenue generated in Switzerland during the three months ended June 30, 2013 and 2012 represented $403 million and $273 million, or 43 percent and 29 percent, of our total net revenue, respectively. Revenue generated in the United States represents over 99 percent of our total North America net revenue. There were no other countries with net revenue greater than 10 percent.
Our direct sales to GameStop Corp. represented approximately 11 percent of total net revenue for the three months ended June 30, 2012. Our direct sales to GameStop Corp. did not exceed 10 percent of total net revenue during the three months ended June 30, 2013.