Electronic Arts 2002 Annual Report Download - page 26

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22 EA 2002 AR
EA CORE ADJUSTMENTS
(EXCLUDING AND ELECTRONIC
YEAR ENDED MARCH 31, 2001 EA.COM) EA.COM ELIMINATIONS ARTS
Net revenues from unaffiliated customers $ 1,280,172 $ 42,101 $ $ 1,322,273
Group sales 2,658 (2,658)(a)
Total net revenues 1,282,830 42,101 (2,658) 1,322,273
Cost of goods sold from
unaffiliated customers 640,239 12,003 652,242
Group cost of goods sold 2,658 (2,658)(a)
Total cost of goods sold 640,239 14,661 (2,658) 652,242
Gross profit 642,591 27,440 670,031
Operating expenses:
Marketing and sales 163,928 12,475 8,933(c) 185,336
General and administrative 93,885 10,156 104,041
Research and development 248,534 77,243 63,151(b) 388,928
Network development and support 51,794 (51,794)(b)
Customer relationship management 11,357 (11,357)(b)
Carriage fee 8,933 (8,933)(c)
Amortization of intangibles 12,829 6,494 19,323
Charge for acquired
in-process technology 2,719 2,719
Total operating expenses 519,176 181,171 700,347
Operating income (loss) 123,415 (153,731) (30,316)
Interest and other income, net 16,659 227 16,886
Income (loss) before benefit from income
taxes and minority interest 140,074 (153,504) (13,430)
Benefit from income taxes (4,163) (4,163)
Income (loss) before minority interest 144,237 (153,504) (9,267)
Minority interest in consolidated
joint venture (1,815) (1,815)
Net income (loss) before retained
interest in EA.com $ 142,422 $ (153,504) $ $ (11,082)
Allocation of retained interest (in thousands):
EA CORE ADJUSTMENTS
(EXCLUDING AND ELECTRONIC
YEAR ENDED MARCH 31, 2001 EA.COM) EA.COM ELIMINATIONS 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)
(a) Represents elimination of intercompany sales of EA Core packaged goods products to EA.com, and represents elimination of royalties paid to EA Core 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.