Electronic Arts 2008 Annual Report Download - page 125

In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements — An Amendment of ARB No. 51”, which establishes new accounting and reporting standards for
noncontrolling interest (minority interest) and for the deconsolidation of a subsidiary. SFAS No. 160 also
includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest.
SFAS No. 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after
December 15, 2008. We do not expect the adoption of SFAS No. 160 to have a material impact on our
Consolidated Financial Statements.
In December 2007, the FASB ratified EITF consensus conclusion on EITF 07-01, “Accounting for Collabora-
tive Arrangements”. EITF 07-01 defines collaborative arrangements and establishes reporting requirements for
transactions between participants in a collaborative arrangement and between participants in the arrangement
and third parties. Under this conclusion, a participant to a collaborative arrangement should disclose
information about the nature and purpose of its collaborative arrangements, the rights and obligations under
the collaborative arrangements, the accounting policy for collaborative arrangements, and the income statement
classification and amounts attributable to transactions arising from the collaborative arrangement between
participants for each period an income statement is presented. EITF 07-01 is effective for interim or annual
reporting periods in fiscal years beginning after December 15, 2008 and requires retrospective application to
all prior periods presented for all collaborative arrangements existing as of the effective date. While we have
not yet completed our analysis, we do not anticipate the implementation of EITF 07-01 to have a material
impact on our Consolidated Financial Statements.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging
Activities — An Amendment of SFAS No. 133”. SFAS 161 requires enhanced disclosures about an entity’s
derivative and hedging activities, including how an entity uses derivative instruments, how derivative
instruments and related hedged items are accounted for under SFAS No. 133, “Accounting for Derivative
Instruments and Hedging Activities”, and how derivative instruments and related hedged items affect an
entity’s financial position, financial performance, and cash flows. The provisions of SFAS No. 161 are
effective for financial statements issued for fiscal years beginning after November 15, 2008, and interim
periods within those fiscal years. We do not expect the adoption of SFAS No. 161 to have a material impact
on our Consolidated Financial Statements.
LIQUIDITY AND CAPITAL RESOURCES
(In millions) 2008 2007
Increase /
(Decrease)
As of
March 31,
Cash and cash equivalents........................................ $1,553 $1,371 $182
Short-term investments .......................................... 734 1,264 (530)
Marketable equity securities ...................................... 729 341 388
Total ..................................................... $3,016 $2,976 $ 40
Percentage of total assets ...................................... 50% 58%
(In millions) 2008 2007
Increase /
(Decrease)
Year Ended
March 31,
Cash provided by operating activities ................................. $338 $397 $(59)
Cash used in investing activities ..................................... (429) (487) 58
Cash provided by financing activities ................................. 243 190 53
Effect of foreign exchange on cash and cash equivalents ................... 30 29 1
Net increase in cash and cash equivalents ............................ $182 $129 $53
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