Electronic Arts 2000 Annual Report Download - page 49

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(R) LONG-LIVED ASSETS The Company evaluates long-lived assets and certain identifiable intangibles for impairment when-
ever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability
of assets is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated
by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by
which the carrying amount of the asset exceeds its fair value.
(2) APPROVAL OF THE TRACKING STOCK PROPOSAL
On March 22, 2000, the stockholders of Electronic Arts voted on and approved a proposal (the “Tracking Stock Proposal”) to
authorize the issuance of a new series of common stock to be designated as Class B common stock (“Tracking Stock”), intended
to reflect the performance of Electronic Arts’ online and e-Commerce division (“EA.com”). As a result of the approval of the
Tracking Stock Proposal, Electronic Arts’ existing common stock has been re-classified as Class A common stock (“Class A
Stock”) and that stock will reflect the performance of Electronic Arts’ other businesses (“EA Core”).
(3) FINANCIAL INSTRUMENTS
(A) CASH AND INVESTMENTS
March 31, 2000 1999
(in thousands)
Cash and cash equivalents:
Cash $153,436 $ 106,641
Municipal securities 81,326 –
Money market funds 11,503 135,567
Cash and cash equivalents 246,265 242,208
Short-term investments:
Available-for-sale
Municipal securities 76,513 21,700
Corporate bonds 3,013 –
U.S. Agency bonds 4,013 –
Money market preferreds – 43,114
Held-to-maturity
U.S. Treasury securities 10,000 5,800
Short-term investments 93,539 70,614
Cash, cash equivalents and short- term investments $ 339,804 $ 312,822
Long-term investments:
U.S. Treasury securities $ 8,400 $ 18,400
EA 2000 AR
47
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS