Electronic Arts 2007 Annual Report Download - page 153

Except for acquired in-process technology, which is discussed below, the acquired finite-lived intangible assets
are being amortized on a straight-line basis over estimated lives ranging from one to four years. The intangible
assets that make up that amount include:
Gross Carrying
Amount
(in millions)
Weighted-Average
Useful Life
(in years)
Developed and Core Technology ................................. $3 2
Trade Name ................................................ 2 4
Total Finite-Lived Intangibles ................................. $5 3
During fiscal 2007, we recorded $19 million of goodwill, none of which is tax deductible.
The acquired in-process technology was expensed in our Consolidated Statements of Operations upon
consummation of the acquisition, and in each period we increased our ownership percentage. Acquired in-
process technology includes the value of products in the development stage that are not considered to have
reached technological feasibility or have alternative future use.
Mythic Entertainment, Inc.
On July 24, 2006, we acquired all outstanding shares of Mythic Entertainment, Inc. for an aggregate purchase
price of $76 million in cash, including transaction costs. Based in Fairfax, Virginia, Mythic is a developer and
publisher of massively multiplayer online role-playing games. The results of operations of Mythic and the
estimated fair market values of the acquired assets and assumed liabilities have been included in our
Consolidated Financial Statements since the date of acquisition. The following table summarizes the estimated
fair values of assets acquired and liabilities assumed in connection with our acquisition of Mythic for the fiscal
year ended March 31, 2007 (in millions):
Current assets . .................................................................. $15
Other long-term assets ............................................................. 2
Acquired in-process technology ...................................................... 2
Goodwill ....................................................................... 62
Finite-lived intangibles ............................................................. 22
Liabilities ...................................................................... (27)
Total consideration .............................................................. $76
Except for acquired in-process technology, which is discussed below, the acquired finite-lived intangible assets
are being amortized on a straight-line basis over estimated lives ranging from three to five years. The
intangible assets that make up that amount as of the date of the acquisition include:
Gross Carrying
Amount
(in millions)
Weighted-Average
Useful Life
(in years)
Developed and Core Technology ................................. $15 4
Trade Name ................................................ 6 5
Subscribers and Other Intangibles ................................ 1 5
Total Finite-Lived Intangibles ................................. $22 4
We recorded $62 million of goodwill, none of which is tax deductible, and we expensed $2 million of
acquired in-process technology in our Consolidated Statements of Operations upon consummation of the
acquisition.
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