SEGMENT INFORMATION

3 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

(16) 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 three operating labels, EA Games, EA SPORTS and EA Play, as well as EA Interactive. Our CODM regularly receives separate financial information for distinct businesses within the EA Interactive organization, including EA Mobile, the combined results of Pogo and Playfish, and Hasbro. Accordingly, in assessing performance and allocating resources, our CODM reviews the results of our three Labels, as well as the operating segments in EA Interactive, including EA Mobile, the combined results of Pogo and Playfish, and Hasbro. Due to their similar economic characteristics, products, and distribution methods, EA Games, EA SPORTS, EA Play, and Hasbro's results are aggregated into one Reportable Segment (the "Label segment") as shown below. The remaining operating segments' results are not material for separate disclosure and are included in the reconciliation of Label segment profit (loss) to our consolidated operating income below. In addition to assessing performance and allocating resources based on our operating segments as described herein, to a lesser degree, our CODM also reviews results based on geographic performance.

The following table summarizes the financial performance of the Label segment and a reconciliation of the Label segment's profit (loss) to our consolidated operating income for the three months ended June 30, 2011 and 2010 (in millions):

		Three Months Ended
			June 30,
		2011			2010
Label segment:
Net revenue before revenue deferral	$		409		$	430
Depreciation and amortization			(11	)		(11	)
Other expenses			(445	)		(416	)
Label segment profit (loss)			(47	)		3
Reconciliation to consolidated operating income:
Other:
Revenue deferral			(250	)		(318	)
Recognition of revenue deferral			725			594
Other net revenue			115			109
Depreciation and amortization			(30	)		(35	)
Other expenses			(286	)		(255	)
Consolidated operating income	$		227		$	98

Label 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 the Labels, (2) the deferral of certain net revenue related to online-enabled packaged goods and digital content (see Note 10 of the Notes to Condensed Consolidated Financial Statements), and (3) the results of EA Mobile, the combined results of Pogo and Playfish, and our Switzerland distribution revenue that has not been allocated to the Labels. Our CODM reviews assets on a consolidated basis and not on a segment basis.

Information about our total net revenue by platform for the three months ended June 30, 2011 and 2010 is presented below (in millions):

		Three Months Ended
		June 30,
		2011		2010
Consoles
Xbox 360	$	345	$	262
PLAYSTATION 3		308		209
Wii		42		40
PlayStation 2		3		11
Total consoles		698		522
PC		205		186
Mobile and handhelds
Mobile		57		52
PSP		11		19
Nintendo DS		8		11
Total mobile and handhelds		76		82
Other		20		25
Total net revenue	$	999	$	815

Information about our operations in North America, Europe and Asia as of and for the three months ended June 30, 2011 and 2010 is presented below (in millions):

		Three Months Ended
			June 30,
		2011		2010
Net revenue from unaffiliated customers
North America	$		501	$	451
Europe			438		317
Asia			60		47
Total	$		999	$	815

			As of June 30,
		2011			2010
Long-lived assets
North America	$		1,289	$		1,325
Europe			440			432
Asia			53			34
Total	$		1,782	$		1,791

Our direct sales to GameStop Corp. represented approximately 18 percent and 14 percent of total net revenue for the three months ended June 30, 2011 and 2010, respectively. Our direct sales to Wal-Mart Stores Inc. did not exceed 10 percent of total net revenue for the three months ended June 30, 2011. Our direct sales to Wal-Mart Stores Inc. represented approximately 11 percent of total net revenue for the three months ended June 30, 2010.