Electronic Arts 2008 Annual Report Download - page 140

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ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions) 2008 2007 2006
Year Ended March 31,
OPERATING ACTIVITIES
Net income (loss) . . ............................................. $ (454) $ 76 $ 236
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation, amortization and accretion, net . . ........................ 164 147 95
Stock-based compensation ....................................... 150 133 3
Minority interest . ............................................. — (4) 6
Non-cash restructuring charges . ................................... 56 — —
Net losses on investments and sale of property and equipment. ............. 111 1 7
Tax benefit from exercise of stock options ............................ — — 133
Acquired in-process technology. ................................... 138 3 8
Change in assets and liabilities:
Receivables, net ............................................. (8) (18) 104
Inventories ................................................. (100) 12 (3)
Other assets . . . ............................................. (8) 46 (71)
Accounts payable ............................................ 23 (2) 31
Accrued and other liabilities . ................................... 71 34 30
Deferred income taxes, net . . ................................... (160) (54) 8
Deferred net revenue (packaged goods and digital content) . ............. 355 23 9
Net cash provided by operating activities . ........................ 338 397 596
INVESTING ACTIVITIES
Capital expenditures ............................................. (84) (176) (121)
Proceeds from sale of marketable equity securities and other investments ....... — — 6
Purchase of marketable equity securities and other investments . . ............. (275) (1) (2)
Proceeds from maturities and sales of short-term investments . . . ............. 2,306 1,315 1,427
Purchase of short-term investments ................................... (1,739) (1,522) (757)
Loan advance .................................................. (30) — —
Acquisition of subsidiaries, net of cash acquired . ........................ (607) (103) (661)
Net cash used in investing activities ............................. (429) (487) (108)
FINANCING ACTIVITIES
Proceeds from issuance of common stock . ............................. 192 168 206
Excess tax benefit from stock-based compensation ........................ 51 36 —
Repayment of note assumed in connection with acquisition ................. — (14) —
Repurchase and retirement of common stock ............................ — — (709)
Net cash provided by (used in) financing activities .................. 243 190 (503)
Effect of foreign exchange on cash and cash equivalents . . . .................. 30 29 (13)
Increase (decrease) in cash and cash equivalents . . . ........................ 182 129 (28)
Beginning cash and cash equivalents ................................... 1,371 1,242 1,270
Ending cash and cash equivalents . . . ................................... 1,553 1,371 1,242
Short-term investments ............................................. 734 1,264 1,030
Ending cash, cash equivalents and short-term investments . . .................. $2,287 $ 2,635 $2,272
Supplemental cash flow information:
Cash paid during the year for income taxes ............................. $ 31 $ 55 $ 24
Non-cash investing activities:
Change in unrealized gains on investments, net . . ........................ $ 154 $ 188 $ 37
Assumption of stock options in connection with acquisitions . . . ............. $ 59 $ — $ 14
See accompanying Notes to Consolidated Financial Statements
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