Electronic Arts 2008 Annual Report Download - page 157

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As of March 31, 2008, future amortization of finite-lived intangibles that will be recorded in cost of goods
sold and operating expenses is estimated as follows (in millions):
Fiscal Year Ending March 31,
2009 ........................................................................ $ 69
2010 ........................................................................ 62
2011 ........................................................................ 55
2012 ........................................................................ 27
2013 ........................................................................ 14
Thereafter .................................................................... 38
Total...................................................................... $265
(6) RESTRUCTURING CHARGES
Restructuring information was as follows (in millions):
Workforce
Facilities-
related Other Workforce
Facilities-
related Other Workforce
Facilities-
related Total
Fiscal 2008 Reorganization
Fiscal 2006 International
Publishing Reorganization Other Restructurings
Balances as of March 31, 2005 . . $ — $ — $ — $ — $— $— $— $10 $ 10
Charges to operations........ — — — 3 8 3 10 — 24
Charges utilized in cash ...... — — — (2) — (1) (7) (5) (15)
Adjustments to operations .... — — — — — — — 2 2
Balances as of March 31, 2006 . . — — — 1 8 2 3 7 21
Charges to operations........ — — — 10 1 4 — — 15
Charges utilized in cash ...... — — — (11) — (5) (3) (7) (26)
Balances as of March 31, 2007 . . — — — — 9 1 — — 10
Charges to operations........ 12 58 27 6 — — — — 103
Charges utilized in cash ...... (11) (3) (22) (6) — (1) — — (43)
Charges utilized in non-cash . . — (55) (1) — — — — — (56)
Balances as of March 31, 2008 . . $ 1 $ — $ 4 $ — $ 9 $— $— $— $ 14
Fiscal 2008 Reorganization
In June 2007, we announced a plan to reorganize our business into several new divisions, including four new
“Labels”: EA SPORTS, EA Games, EA Casual Entertainment and The Sims. Each Label operates with
dedicated studio and product marketing teams focused on consumer-driven priorities. The new structure is
designed to streamline decision-making, improve global focus, and speed new ideas to the market. In October
2007, our Board of Directors approved a plan of reorganization (“fiscal 2008 reorganization plan”) in
connection with the reorganization of our business into four new Labels.
Since the inception of the fiscal 2008 reorganization plan through March 31, 2008, we incurred charges of
$97 million, of which (1) $12 million were employee-related expenses, (2) $58 million related to the closure
of our Chertsey, England and Chicago, Illinois facilities which included asset impairment and lease termination
costs, and (3) $27 million related to other costs including other contract terminations as well as IT and
consulting costs to assist in the reorganization of our business support functions. During the fourth quarter of
fiscal 2008, we completed the closure of our Chertsey facility and consolidated our local operations and
employees into our Guildford, England facility. Over the next 18 months, we expect to continue to incur IT
and consulting costs to assist in the reorganization of our business support functions. The restructuring accrual
of $5 million related to our fiscal 2008 reorganization as of March 31, 2008 is expected to be utilized by
Annual Report
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