Electronic Arts 2007 Annual Report Download - page 140

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) 2007 2006 2005
Year Ended March 31,
OPERATING ACTIVITIES
Net income . ................................................... $ 76 $ 236 $ 504
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion ............................. 147 95 75
Stock-based compensation ....................................... 133 3 6
Minority interest . ............................................. (4) 6 —
Realized (gains) losses on investments and sale of property and equipment . . . . 1 7 (8)
Tax benefit from exercise of stock options ............................ — 133 75
Acquired in-process technology .................................... 3 8 13
Change in assets and liabilities:
Receivables, net ............................................. (18) 104 (80)
Inventories ................................................. 12 (3) (14)
Other assets . . . ............................................. 46 (71) (35)
Accounts payable ............................................ (2) 31 28
Accrued and other liabilities . ................................... 43 30 46
Deferred income taxes, net . . ................................... (54) 8 24
Deferred net revenue — packaged goods and digital content ............. 14 9 —
Net cash provided by operating activities . ........................ 397 596 634
INVESTING ACTIVITIES
Capital expenditures ............................................. (178) (123) (126)
Proceeds from sale of property and equipment . . . ........................ 2 2 16
Purchase of marketable equity securities . . ............................. — — (90)
Proceeds from sale of marketable equity securities ........................ — 4 4
Purchase of investments in affiliates .................................. (1) (2) (2)
Proceeds from sale of investments in affiliates . . . ........................ — 2 —
Proceeds from maturities and sales of short-term investments . . . ............. 1,315 1,427 996
Purchase of short-term investments ................................... (1,522) (755) (2,442)
Acquisition of subsidiaries, net of cash acquired . ........................ (103) (661) (81)
Other investing activities . . ........................................ — (2) (1)
Net cash used in investing activities ............................. (487) (108) (1,726)
FINANCING ACTIVITIES
Proceeds from issuance of common stock . ............................. 168 206 241
Excess tax benefit from stock-based compensation ........................ 36 — —
Repayment of note assumed in connection with acquisition ................. (14) — —
Repurchase and retirement of common stock ............................ — (709) (41)
Net cash provided by (used in) financing activities .................. 190 (503) 200
Effect of foreign exchange on cash and cash equivalents . . . .................. 29 (13) 12
Increase (decrease) in cash and cash equivalents . . . ........................ 129 (28) (880)
Beginning cash and cash equivalents ................................... 1,242 1,270 2,150
Ending cash and cash equivalents . . . ................................... 1,371 1,242 1,270
Short-term investments ............................................. 1,264 1,030 1,688
Ending cash, cash equivalents and short-term investments . . .................. $2,635 $2,272 $ 2,958
Supplemental cash flow information:
Cash paid during the year for income taxes ............................. $ 55 $ 24 $ 101
Non-cash investing activities:
Change in unrealized gains (losses) on investments, net . . .................. $ 188 $ 37 $ 26
Assumption of stock options in connection with acquisition ................. $ — $ 14 $ —
See accompanying Notes to Consolidated Financial Statements.
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