Electronic Arts 2000 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2000 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

(11) PROPERTY AND EQUIPMENT
Property and equipment at March 31, 2000 and 1999 consisted of:
2000 1999
(in thousands)
Computer equipment and software $ 213,815 $ 127,330
Buildings 99,819 62,413
Land 51,686 50,570
Office equipment, furniture and fixtures 25,210 21,296
Leasehold improvements 12,157 5,749
Warehouse equipment and other 3,914 3,813
406,601 271,171
Less accumulated depreciation and amortization (121,135) (89,905)
$ 285,466 $ 181,266
Depreciation and amortization expenses associated with property and equipment amounted to $34,736,000, $34,581,000
and $26,215,000, for the fiscal years ended March 31, 2000, 1999 and 1998, respectively.
(12) ACCRUED AND OTHER LIABILITIES
Accrued and other liabilities at March 31, 2000 and 1999 consisted of:
2000 1999
(in thousands)
Accrued compensation and benefits $ 59,580 $ 46,541
Accrued expenses 37,840 46,595
Accrued royalties 36,566 36,429
Accrued income taxes 22,682 23,724
Warranty reserve 8,886 7,900
Deferred revenue 1,847 8,206
Deferred income taxes 198 2,933
$167,599 $ 172,328
(13) BUSINESS COMBINATIONS AND DIVESTITURE
(A) KESMAI On February 7, 2000, the Company acquired Kesmai Corporation (now referred to as “Kesmai”) from News America
Corporation (“News Corp”) in exchange for $22,500,000 in cash and approximately 103,000 shares of the Company’s existing
common stock valued at $8,650,000. Kesmai™ specializes in the design and development of multiplayer games delivered
directly to consumers over the Internet and is a major provider of game content to the Games Channel on the AOL service. The
issuance of these shares was temporary, pending the authorization of Class B common stock. Subsequently, on March 22,
2000, Class B shares were authorized. The Company granted 5 percent of the initial equity attributable to EA.com to News
Corp, adjusting the total common stock consideration relating to the acquisition by $703,000 to $9,353,000. The Company has
contributed Kesmai to the EA.com division.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
54