Electronic Arts 2007 Annual Report Download - page 163

The following table summarizes our minimum contractual obligations and commercial commitments as of
March 31, 2007 (in millions):
Fiscal Year Ending March 31, Leases
(1)
Developer/
Licensor
Commitments
(2)
Marketing
Letter of Credit,
Bank and
Other Guarantees Total
Contractual Obligations
Commercial
Commitments
2008 ............................ $ 56 $ 200 $ 58 $ 7 $ 321
2009 ............................ 54 202 31 — 287
2010 ............................ 39 166 31 — 236
2011 ............................ 27 263 31 — 321
2012 ............................ 23 27 17 — 67
Thereafter ........................ 46 697 169 — 912
Total . . ...................... $245 $1,555 $337 $ 7 $2,144
(1)
Lease commitments include contractual rental commitments of $15 million under real estate leases for
unutilized office space resulting from our restructuring activities. These amounts, net of estimated future
sub-lease income, were expensed in the periods of the related restructuring and are included in our accrued
and other current liabilities reported on our Consolidated Balance Sheets as of March 31, 2007. See Note 6
of the Notes to Consolidated Financial Statements.
(2)
Developer/licensor commitments include $9 million of commitments to developers or licensors that have
been recorded in current and long-term liabilities and a corresponding amount in current and long-term
assets in our Consolidated Balance Sheets as of March 31, 2007 because payment is not contingent upon
performance by the developer or licensor.
The amounts represented in the table above reflect our minimal cash obligations for the respective fiscal years,
but do not necessarily represent the periods in which they will be expensed in our Consolidated Financial
Statements.
Total rent expense for all operating leases was $88 million, $59 million and $41 million, for the fiscal years
ended March 31, 2007, 2006 and 2005, respectively.
Neowiz Investment
In April 2007, we expanded our commercial agreements with and made strategic equity investments in Neowiz
Corporation and its online gaming subsidiary, Neowiz Games. We purchased stock representing in aggregate
approximately 19 percent of each of Neowiz and Neowiz Games for approximately $108 million. Based in
Korea, Neowiz is an online media and gaming company with which we partnered in 2006 to launch EA Sports
FIFA Online in Korea.
Legal proceedings
On September 14, 2006, we received an informal inquiry from the Securities and Exchange Commission
requesting certain documents and information relating to our stock option grant practices from January 1, 1997
through the date of the letter. We have cooperated to date with all matters related to this request. We most
recently provided the SEC with information in December 2006. The SEC has not asked for any further
information since that time.
We are also subject to claims and litigation arising in the ordinary course of business. We believe that any
liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the
aggregate, would not have a material adverse effect on our consolidated financial position or results of
operations.
Annual Report
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