Electronic Arts 2005 Annual Report Download - page 96

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Fiscal 2002 Online Restructuring
In October 2001, we announced restructuring initiatives involving EA.com and the closure of EA.com's
San Diego studio and consolidation of our San Francisco and Virginia facilities. As a result, we recorded
restructuring charges of $20 million, consisting of $4 million for workforce reductions, $3 million for
consolidation of facilities and other administrative charges and $13 million for the write-oÅ of non-current
assets and facilities.
All restructuring charges recorded prior to December 31, 2002 were recorded in accordance with Emerging
Issues Task Force (""EITF'') No. 94-3, ""Liability Recognition for Certain Employee Termination BeneÑts
and Other Costs to Exit an Activity (Including Certain Costs Incurred in a Restructuring)'', EITF No. 95-03,
""Recognition of Liabilities in Connection with a Purchase Business Combination'', and SAB No. 100,
""Restructuring and Impairment Charges''. All restructuring charges recorded subsequent to December 31,
2002, were recorded in accordance with SFAS No. 146, ""Accounting for Costs Associated with Exit or
Disposal Activities''. Adjustments to the restructuring reserves will be made in future periods, if necessary,
based upon the then-current events and circumstances.
The following table reÖects our unaudited pro forma consolidated basic earnings per share for the Ñscal year
ended March 31, 2003 as if the consolidation of the operations of our EA.com business segment into our core
business had occurred at the beginning of the period (in millions, except per share data):
Year Ended
March 31,
2003
Net income:
As reportedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 317
Pro forma ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 317
Earnings per share:
As reportedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1.17
Pro forma ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1.12
Number of shares used in computation:
As reportedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 282
Add: conversion of AOL and News Corp Class B ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1
Pro forma ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 283
For further discussion on our restructurings and asset impairment charges, see Note 6 in the Notes to
Consolidated Financial Statements, included in Item 8 of this report.
Interest and Other Income, Net
Interest and other income, net for Ñscal years 2004 and 2003 was (in millions):
March 31, % of Net March 31, % of Net
2004 Revenue 2003 Revenue $ Change % Change
$21 0.7% $5 0.2% $16 N/M
Interest and other income, net, in Ñscal 2004 increased from Ñscal 2003 primarily due to the following:
‚ Interest income increased by $8 million in Ñscal 2004 as a result of higher average cash balances in that
year.
‚ During the year ended March 31, 2003, we recorded $11 million for other-than-temporary impairments
of investments in aÇliates, oÅset by income of $5 million recorded from our equity investment in
Square EA, LLC.
40