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During the fourth quarter of fiscal 2008, we updated our financial systems to provide our CODM financial
information based upon management’s new organizational structure (the “Label Structure”); that is, the EA
Games, EA SPORTS, The Sims and EA Casual Entertainment businesses. In addition, our CODM now
regularly receives separate financial information for four distinct businesses within the EA Casual Entertain-
ment Label — EA Mobile, POGO, Hasbro and Casual Entertainment. Accordingly in assessing performance
and allocating resources, our CODM reviews the results of seven operating segments: EA Games; EA
SPORTS; The Sims; POGO; EA Mobile, and Hasbro and Casual Entertainment. Due to their similar economic
characteristics, products and distribution methods, EA Games, EA SPORTS, The Sims, POGO, Hasbro and
Casual Entertainment’s results are aggregated into one Reportable Segment (the “Label segment”) as shown
below. The remaining operating segments’ results are not material for separate disclosure and are included in
the reconciliation to consolidated operating loss below.
The following table summarizes the fiscal 2008 financial performance of the Label segment and a reconcili-
ation of the Label segment’s profit to our consolidated operating loss (in millions):
Year Ended
March 31, 2008
Label segment:
Net revenue ............................................................ $3,722
Depreciation and amortization ............................................... (68)
Other expenses .......................................................... (2,928)
Label segment profit ........................................................ 726
Reconciliation to consolidated operating loss:
Other:
Change in deferred net revenue (packaged goods and digital content) .................. (355)
Other net revenue ........................................................ 298
Depreciation and amortization ............................................... (118)
Other expenses .......................................................... (1,038)
Consolidated operating loss ................................................... $ (487)
Label segment profit differs from consolidated operating loss primarily due to the exclusion of (1) certain
corporate and other functional costs that are not allocated to the Labels (2) the deferral of certain net revenue
related to packaged goods and digital content (see Note 8 of the Notes to Consolidated Financial Statements),
and (3) the results of EA Mobile. Our Chief Executive Officer reviews assets on a consolidated basis and not
on a segment basis.
When we updated our financial systems to provide our CODM financial information based upon the Label
Structure, we did not recast our financial information for periods prior to fiscal 2008. Accordingly, it is not
practicable to provide comparable results based on the Label Structure for the fiscal years ended March 31,
2007 and 2006.
102