Electronic Arts 2004 Annual Report Download - page 95

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(professional baseball) and Island Def Jam (Ñghting). These developer and content license commitments
represent the sum of (i) the cash payments due under non-royalty-bearing licenses and services agreements,
and (ii) the minimum payments and advances against royalties due under royalty-bearing licenses and
services agreements. These minimum guarantee payments and marketing commitments are included in the
following table.
The following table summarizes our minimum contractual obligations and commercial commitments as of
March 31, 2004 (in thousands), and the eÅect we expect them to have on our liquidity and cash Öow in future
periods:
Contractual Obligations Commercial Commitments
Fiscal Year Developer/ Bank and
Ended Licensee Other Letters
March 31, Leases Commitments Marketing Guarantees of Credit Total
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 20,234 $ 42,691 $24,744 $2,234 $305 $ 90,208
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 23,041 36,962 7,167 234 Ì 67,404
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,254 12,789 4,152 204 Ì 34,399
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14,132 16,003 4,152 204 Ì 34,491
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,816 10,503 4,152 203 Ì 24,674
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 35,758 11,307 Ì 203 Ì 47,268
TotalÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $120,235 $130,255 $44,367 $3,282 $305 $298,444
Total rent expense for all operating leases was $27.3 million, $22.3 million and $27.5 million, for the Ñscal
years ended March 31, 2004, 2003 and 2002, respectively.
The lease commitments disclosed above exclude commitments included in our restructuring activities for
contractual rental commitments of $31.3 million under real estate leases for unutilized oÇce space, oÅset by
$18.4 million of estimated future sub-lease income. These amounts were expensed in the periods of the
related restructuring and are included in our accrued liabilities reported on our Consolidated Balance Sheet as
of March 31, 2004. Please see Note 6 in the Notes to Consolidated Financial Statements for additional
information.
Litigation
We are subject to pending claims and litigation. Management, after review and consultation with legal
counsel, considers that any liability from the disposition of such lawsuits would not have a material adverse
eÅect upon our consolidated Ñnancial condition or results of operations.
Director Indemnity Agreements
We have entered into an indemniÑcation agreement with the members of our Board of Directors to indemnify
our Directors to the extent permitted by law against any and all liabilities, costs, expenses, amounts paid in
settlement and damages incurred by the Directors as a result of any lawsuit, or any judicial, administrative or
investigative proceeding in which the Directors are sued as a result of their service as members of our Board of
Directors.
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