Electronic Arts 2004 Annual Report Download - page 105

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(18) SEGMENT INFORMATION
SFAS No. 131, ""Disclosures About Segments of an Enterprise and Related Information'', 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 our operating segments for making operational decisions and assessments of Ñnancial
performance.
Our chief operating decision maker is considered to be our Chief Executive OÇcer (""CEO''). The CEO
reviews Ñnancial information presented on a consolidated basis accompanied by disaggregated information
about revenue by geographic region and by product lines for purposes of making operating decisions and
assessing Ñnancial performance.
In Ñscal 2003 and 2002, we operated and reviewed our business in two business segments:
䡵EA Core business segment: creation, marketing and distribution of entertainment software.
䡵EA.com business segment: creation, marketing and distribution of entertainment software which can
be played or sold online, ongoing management of subscriptions of online games and website
advertising.
In March 2003, we consolidated the operations of the EA.com business segment into our core business. We
consider online functionality to be integral to our existing and future products. Accordingly, beginning
April 1, 2003, we no longer manage our online products and services as a separate business segment, and have
consolidated our reporting related to online products and services into our reporting for the overall
development and publication of our core products for all reporting periods ending after that date. We believe
that this better reÖects the way in which the CEO reviews and manages our business and reÖects the
importance of the online products and services relative to the rest of our business. Concurrently, we also
eliminated separate reporting for Class B common stock for all reporting periods ending after April 1, 2003.
Our view and reporting of business segments may change due to changes in the underlying business facts and
circumstances and the evolution of our reporting to our CEO.
Information about our net revenue by product line for the Ñscal years ended March 31, 2004, 2003 and 2002 is
presented below (in thousands):
Year Ended March 31,
2004 2003 2002
PlayStation 2 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,314,758 $ 910,693 $ 482,882
PC ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 469,692 499,634 456,292
Xbox ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 384,320 219,378 78,363
Nintendo GameCubeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 199,893 176,656 51,740
Game Boy AdvanceÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 77,305 79,093 43,653
Subscription ServicesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 49,514 44,648 34,236
PlayStation ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 29,619 99,951 189,535
EA Studio Net Product Revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,525,101 2,030,053 1,336,701
Co-publishing and DistributionÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 398,221 375,759 269,010
Advertising, Programming, Licensing, and OtherÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 33,819 76,432 118,964
Total Net Revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,957,141 $2,482,244 $1,724,675
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