Electronic Arts 1999 Annual Report Download - page 45

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NOTE 16: SEGMENT INFORMATION
In 1999, the Company adopted SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information,” which
supersedes SFAS No. 14, “Financial Reporting for Segments of a Business Enterprise.” SFAS No. 131 establishes standards
for the reporting by public business enterprises of information about product lines, geographic areas and major customers.
The method for determining what information to report is based on the way that management organizes the operating
segments within the Company for making operational decisions and assessments of financial performance. The Company’s
chief operating decision maker is considered to be the Company’s Chief Executive Officer (“CEO”). The CEO reviews finan-
cial information presented on a consolidated basis accompanied by disaggregated information about revenues by geo-
graphic region and by product lines for purposes of making operating decisions and assessing financial performance. The
Company has four reportable segments: North America, Europe, Asia Pacific and Japan, which are organized, managed
and analyzed geographically and operate in one industry segment: the creation, marketing and distribution of entertain-
ment software. Information about the Company’s operations in the North America and foreign areas for the fiscal years
ended March 31, 1999, 1998 and 1997 is presented below:
Asia Pacific
North (excluding
(In thousands) America Europe Japan) Japan Eliminations Total
Fiscal 1999:
Net revenues from unaffiliated
customers $ 704,998 $ 443,937 $ 39,560 $ 33,368 $ – $1,221,863
Intersegment sales 32,216 15,062 2,800 12 (50,090) –
Total net revenues $ 737,214 $ 458,999 $ 42,360 $ 33,380 $ (50,090) $1,221,863
Operating income $ 78,826 $ 21,052 $ 3,208 $ 2,192 $ – $ 105,278
Interest income $ 9,931 $ 2,551 $ 143 $ – $ – $ 12,625
Depreciation and amortization $ 29,272 $ 9,399 $ 506 $ 1,284 $ – $ 40,461
Identifiable assets $ 596,357 $ 268,152 $ 20,938 $ 16,426 $ – $ 901,873
Capital expenditures $ 54,029 $ 58,383 $ 418 $ 2,990 $ – $ 115,820
Fiscal 1998:
Net revenues from unaffiliated
customers $ 519,423 $ 325,938 $ 41,494 $ 21,997 $ – $ 908,852
Intersegment sales 45,913 21,613 513 133 (68,172) –
Total net revenues $ 565,336 $ 347,551 $ 42,007 $ 22,130 $ (68,172) $ 908,852
Operating income (loss) $ 31,852 $ 51,807 $ 6,995 $ (7,205) $ – $ 83,449
Interest income $ 10,931 $ 2,471 $ 247 $ – $ – $ 13,649
Depreciation and amortization $ 20,826 $ 4,541 $ 661 $ 879 $ – $ 26,907
Identifiable assets $ 515,728 $ 201,988 $ 17,347 $ 10,618 $ – $ 745,681
Capital expenditures $ 25,423 $ 18,035 $ 669 $ 1,111 $ – $ 45,238