Electronic Arts 2009 Annual Report Download - page 147

Annual Report
ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
(In millions) 2009 2008 2007
OPERATING ACTIVITIES
Net income (loss) ........................................................... $(1,088) $ (454) $ 76
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Acquired in-process technology .............................................. 3 138 3
Depreciation, amortization and accretion, net .................................... 198 164 147
Goodwill impairment ...................................................... 368 — —
Minority interest .......................................................... — — (4)
Net losses on investments and sale of property and equipment ...................... 65 111 1
Non-cash restructuring charges ............................................... 25 56 —
Stock-based compensation .................................................. 203 150 133
Change in assets and liabilities:
Receivables, net ......................................................... 221 (8) (18)
Inventories ............................................................. (49) (100) 12
Other assets ............................................................ 52 (8) 46
Accounts payable ....................................................... (26) 22 (10)
Accrued and other liabilities ............................................... (56) 72 42
Deferred income taxes, net ................................................ 222 (160) (54)
Deferred net revenue (packaged goods and digital content) ....................... (126) 355 23
Net cash provided by operating activities ................................... 12 338 397
INVESTING ACTIVITIES
Capital expenditures ......................................................... (115) (84) (176)
Purchase of marketable equity securities and other investments ....................... — (275) (1)
Proceeds from maturities and sales of short-term investments ......................... 891 2,306 1,315
Purchase of short-term investments ............................................. (695) (1,739) (1,522)
Loan advance ............................................................... — (30) —
Acquisition of subsidiaries, net of cash acquired ................................... (58) (607) (103)
Net cash provided by (used in) investing activities ............................ 23 (429) (487)
FINANCING ACTIVITIES
Proceeds from issuance of common stock ........................................ 89 192 168
Excess tax benefit from stock-based compensation ................................. 2 51 36
Repayment of note assumed in connection with acquisition .......................... — — (14)
Net cash provided by financing activities ................................... 91 243 190
Effect of foreign exchange on cash and cash equivalents ............................... (58) 30 29
Increase in cash and cash equivalents .............................................. 68 182 129
Beginning cash and cash equivalents .............................................. 1,553 1,371 1,242
Ending cash and cash equivalents ................................................. 1,621 1,553 1,371
Short-term investments ......................................................... 534 734 1,264
Ending cash, cash equivalents and short-term investments ............................. $2,155 $ 2,287 $ 2,635
Supplemental cash flow information:
Cash paid during the year for income taxes ....................................... $ 25 $ 31 $ 55
Non-cash investing activities:
Change in unrealized gains (losses) on investments, net ............................. $ (364) $ 154 $ 188
Assumption of stock options in connection with acquisitions ......................... $ — $ 59 $ —
See accompanying Notes to Consolidated Financial Statements.
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