Electronic Arts 2009 Annual Report Download - page 185

Annual Report
401(k) Plan and Registered Retirement Savings Plan
We have a 401(k) plan covering substantially all of our U.S. employees, and a Registered Retirement Savings
Plan covering substantially all of our Canadian employees. These plans permit us to make discretionary
contributions to employees’ accounts based on our financial performance. We contributed an aggregate of $7
million, $13 million and $3 million to these plans in fiscal years 2009, 2008 and 2007, respectively.
(14) COMPREHENSIVE INCOME
We are required to classify items of other comprehensive income (loss) by their nature in a financial statement
and display the accumulated balance of other comprehensive income separately from retained earnings and
additional paid-in capital in the equity section of a balance sheet. Accumulated other comprehensive income
primarily includes foreign currency translation adjustments, and the net-of-tax amounts for unrealized gains
(losses) on investments and unrealized gains (losses) on derivative instruments designated as cash flow hedges.
Foreign currency translation adjustments are not adjusted for income taxes as they relate to indefinite
investments in non-U.S. subsidiaries.
The change in the components of accumulated other comprehensive income is summarized as follows (in
millions):
Foreign
Currency
Translation
Adjustment
Unrealized
Gains
(Losses) on
Investments,
net
Unrealized
Gains
(Losses) on
Derivative
Instruments,
net
Accumulated
Other
Comprehensive
Income
Balances as of March 31, 2006 ................. $20 $ 63 $— $ 83
Other comprehensive income .................. 23 188 — 211
Balances as of March 31, 2007 ................. 43 251 — 294
Other comprehensive income (loss) ............. 42 251 (3) 290
Balances as of March 31, 2008 ................. 85 502 (3) 584
Other comprehensive income (loss) ............. (88) (311) 4 (395)
Balances as of March 31, 2009 ................. $ (3) $191 $ 1 $189
The change in unrealized gains (losses) on investments and derivative instruments are shown net of taxes of $3
million in fiscal year 2008 and less than $1 million in fiscal years 2009 and 2007.
During fiscal year 2007, we realized substantially all gains and losses outstanding from our derivative
instruments. See Note 4 of the Notes to Consolidated Financial Statements.
(15) INTEREST AND OTHER INCOME, NET
Interest and other income, net, for the years ended March 31, 2009, 2008 and 2007 consisted of (in millions):
Year Ended March 31,
2009 2008 2007
Interest income, net .................................................... $48 $102 $104
Net gain (loss) on foreign currency transactions .............................. (49) 20 10
Net gain (loss) on foreign currency forward contracts .......................... 34 (31) (13)
Other income (expense), net .............................................. 1 7 (2)
Interest and other income, net .......................................... $34 $ 98 $ 99
105