Electronic Arts 2001 Annual Report Download - page 20

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18
2001 AR
Allocation of retained interest (in thousands):
EA Core Adjustments and
Year Ended March 31, 2001 (excl. EA.com) EA.com Eliminations Electronic Arts
Net income (loss) before retained
interest in EA.com $ 142,422 $ (153,504) $ – $ (11,082)
Net loss related to retained
interest in EA.com (130,478) 130,478 – –
Net income (loss) $ 11,944 $ (23,026) $ – $ (11,082)
EA Core Adjustments and
Year Ended March 31, 2000 (excl. EA.com) EA.com Eliminations Electronic Arts
Net revenues from unaffiliated customers $ 1,399,093 $ 20,918 $ – $ 1,420,011
Group sales 2,014 – (2,014)(a) –
Total net revenues 1,401,107 20,918 (2,014) 1,420,011
Cost of goods sold from unaffiliated customers 700,024 4,678 – 704,702
Group cost of goods sold – 2,014 (2,014)(a) –
Total cost of goods sold 700,024 6,692 (2,014) 704,702
Gross profit 701,083 14,226 – 715,309
Operating expenses:
Marketing and sales 185,714 2,897 – 188,611
General and administrative 87,513 4,905 – 92,418
Research and development 205,933 34,716 21,317(b) 261,966
Network development and support – 17,993 (17,993)(b) –
Customer relationship management – 3,324 (3,324)(b) –
Amortization of intangibles 10,866 1,123 – 11,989
Charge for acquired in-process technology 2,670 3,869 – 6,539
Total operating expenses 492,696 68,827 – 561,523
Operating income (loss) 208,387 (54,601) – 153,786
Interest and other income, net 16,017 11 – 16,028
Income (loss) before provision for income
taxes and minority interest 224,404 (54,590) – 169,814
Provision for income taxes 52,642 – – 52,642
Income (loss) before minority interest 171,762 (54,590) – 117,172
Minority interest in consolidated joint venture (421) – – (421)
Net income (loss) $ 171,341 $ (54,590) $ – $ 116,751
(a) Represents elimination of intercompany sales of Electronic Arts packaged goods products to EA.com; and represents elimination of royalties paid to Electronic
Arts by EA.com for intellectual property rights.
(b) Represents reclassification of Network Development and Support and Customer Relationship Management to Research and Development.
(c) Represents reclassification of amortization of the Carriage fee to Marketing and Sales.