Electronic Arts 2009 Annual Report Download - page 175

Annual Report
(a) Lease commitments include contractual rental commitments of $7 million under real estate leases for
unutilized office space resulting from our restructuring activities. These amounts, net of estimated future
sub-lease income, were expensed in the periods of the related restructuring and are included in our accrued
and other current liabilities reported on our Consolidated Balance Sheet as of March 31, 2009.
(b) Developer/licensor commitments include $37 million of commitments to developers or licensors that have
been recorded in current and long-term liabilities and a corresponding amount in current and long-term
assets in our Consolidated Balance Sheet as of March 31, 2009 because payment is not contingent upon
performance by the developer or licensor.
The amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years,
but do not necessarily represent the periods in which they will be expensed in our Consolidated Financial
Statements.
In addition to what is included in the table above, as discussed in Note 11 of the Notes to Consolidated Financial
Statements, we have adopted the provisions of FASB Interpretation (“FIN”) No. 48, Accounting for Uncertainty
in Income Taxes — An Interpretation of FASB Statement No. 109. As of March 31, 2009, we had a liability for
unrecognized tax benefits and an accrual for the payment of related interest totaling $324 million, of which
approximately $56 million is offset by prior cash deposits to tax authorities for issues pending resolution. For the
remaining liability, we are unable to make a reasonably reliable estimate of when cash settlement with a taxing
authority will occur.
Total rent expense for all operating leases was $98 million, $94 million and $88 million, for the fiscal years
ended March 31, 2009, 2008 and 2007, respectively.
Legal Proceedings
We are subject to claims and litigation arising in the ordinary course of business. We do not believe that any
liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the
aggregate, would have a material adverse effect on our consolidated financial position or results of operations.
(11) INCOME TAXES
The components of our income (loss) before provision for (benefit from) income taxes and minority interest for
the fiscal years ended March 31, 2009, 2008 and 2007 are as follows (in millions):
Year Ended March 31,
2009 2008 2007
Domestic .............................................................. $(670) $(353) $ 31
Foreign ............................................................... (185) (154) 107
Income (loss) before provision for (benefit from) income taxes and minority
interest ............................................................. $(855) $(507) $138
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