Electronic Arts 2007 Annual Report Download - page 177
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to evaluate segment performance; the availability of separate financial information; and overall materiality
considerations.
We manage our business primarily based on geographical performance. Accordingly, our combined global
publishing organizations represent our reportable segment, our Publishing segment, due to their similar
economic characteristics, products and distribution methods. Publishing refers to the manufacturing, marketing,
advertising and distribution of products developed or co-developed by us, or distribution of certain third-party
publishers’ products through our co-publishing and distribution program.
The following table summarizes the financial performance of our Publishing segment and a reconciliation of
our Publishing segment’s profit to our consolidated operating income (in millions):
2007 2006 2005
Year Ended March 31,
Publishing segment:
Net revenue ................................................ $2,948 $ 2,927 $ 3,125
Depreciation and amortization .................................. (22) (19) (25)
Other expenses .............................................. (1,685) (1,690) (1,613)
Publishing segment profit . ....................................... 1,241 1,218 1,487
Reconciliation to consolidated operating income:
Other:
Net revenue ................................................ 143 24 4
Depreciation and amortization .................................. (145) (76) (50)
Other expenses .............................................. (1,200) (841) (772)
Consolidated operating income .................................... $ 39 $ 325 $ 669
Publishing segment profit differs from consolidated operating income primarily due to the exclusion of
substantially all of our research and development expense as well as certain corporate functional costs that are
not allocated to the publishing organizations. Our Chief Executive Officer reviews assets on a consolidated
basis and not on a segment basis.
Annual Report
103