Electronic Arts 2008 Annual Report Download - page 154

Except for acquired in-process technology, which is discussed below, acquired finite-lived intangible assets are
being amortized on a straight-line basis over their 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
None of the goodwill recognized upon acquisition is deductible for tax purposes.
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.
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. This acquisition positions us for further growth
in the massively multiplayer online role-playing games market. 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 purchase price ............................................................. $76
Except for acquired in-process technology, which is discussed below, acquired finite-lived intangible assets are
being amortized on a straight-line basis over their 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
None of the goodwill recognized upon acquisition is deductible for tax purposes. We expensed $2 million of
acquired in-process technology in our Consolidated Statements of Operations upon consummation of the
acquisition.
JAMDAT Mobile Inc.
On February 15, 2006, we acquired all of the outstanding shares of JAMDAT Mobile Inc. Based in Los
Angeles, California, JAMDAT was a global publisher of wireless games and other wireless entertainment
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