Electronic Arts 2007 Annual Report Download - page 149
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The following table summarizes the fair value and gross unrealized losses for investments that were in an
unrealized loss position as of March 31, 2007 and 2006 (in millions):
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Unrealized Losses
For Less Than
12 Months
Unrealized Losses
For 12 Months or
Greater Total
As of March 31, 2007
Corporate bonds ...................... $ — $— $ 92 $(1) $ 92 $(1)
Total ............................. $ — $— $ 92 $(1) $ 92 $(1)
As of March 31, 2006
U.S. agency securities .................. $133 $ (1) $388 $ (3) $521 $(4)
U.S. Treasury securities ................. 202 (1) — — 202 (1)
Corporate bonds ...................... 104 (1) 72 (1) 176 (2)
Total ............................. $439 $ (3) $460 $ (4) $899 $(7)
We periodically evaluate our securities for impairment. Factors considered in the review of securities with an
unrealized loss include the credit quality of the issuer, the magnitude of the unrealized loss position, the length
of time that the security has been in a loss position, our intentions with respect to the selling or holding of
such security as well as any contractual terms impacting the prepayment or settlement process. Based on our
review, we do not consider the investments listed above to be other-than-temporarily impaired as of March 31,
2007.
Gross realized losses of $1 million and gross realized gains of less than $1 million were recognized from the
sale of short-term investments for the year ended March 31, 2007. Gross realized losses of $9 million and
gross realized gains of less than $1 million were recognized from the sale of short-term investments for the
year ended March 31, 2006. No material gains or losses were recognized from the sale of short-term
investments for the year ended March 31, 2005.
The following table summarizes the amortized cost and fair value of our short-term investments, classified by
stated maturity as of March 31, 2007 (in millions):
Amortized
Cost
Fair
Value
Due in 1 year or less ................................................... $ 662 $ 661
Due in 1-2 years ...................................................... 241 241
Due in 2-3 years ...................................................... 253 254
Asset-backed securities ................................................. 107 108
Short-term investments ................................................ $1,263 $1,264
Asset-backed securities are separately disclosed as they are not due at a single maturity date. Our portfolio
only includes asset-backed securities that have weighted-average maturities of three years or less. As of
March 31, 2007, the amortized cost and fair value of asset-backed securities with a weighted average maturity
of 2 to 3 years was $102 million and $103 million, respectively, while the amortized cost and fair value of
asset-backed securities with a weighted average maturity of 1 to 2 years was $5 million. There were no asset-
backed securities with a weighted average maturity of less than one year.
Annual Report
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