Electronic Arts 2009 Annual Report Download - page 166

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 positioned 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 as of March 31, 2007, in connection with our acquisition of
Mythic during 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.
(6) GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill are as follows (in millions):
As of
March 31,
2008
Goodwill
Acquired Impairment
Effects of
Foreign
Currency
Translation
As of
March 31,
2009
Label Segment ................................ $ 662 $16 $ — $(11) $667
EA Mobile Segment ............................ 490 20 (368) (2) 140
Total ...................................... $1,152 $36 $(368) $(13) $807
Under SFAS No. 142, purchased goodwill and indefinite-lived intangibles are not amortized. Rather, goodwill
and indefinite-lived intangible asset are subject to at least an annual assessment for impairment by applying a
fair-value-based test.
SFAS No. 142 requires a two-step approach to testing goodwill for impairment for each reporting unit annually,
or whenever events or changes in circumstances indicate the fair value of a reporting unit is below its carrying
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