Electronic Arts 2009 Annual Report Download - page 90

Inventory, Working Capital, Backlog, Manufacturing and Suppliers
We manage inventory by communicating with our customers prior to the release of our products, and then using
our industry experience to forecast demand on a product-by-product and territory-by-territory basis. Historically,
we have experienced high turnover of our products, and the lead times on re-orders of our products are generally
short (e.g., approximately two to three weeks). Further, as discussed in “Management’s Discussion and Analysis
of Financial Condition and Results of Operations,” we have practices in place with our customers (such as stock
balancing and price protection) that reduce product returns.
We typically ship orders immediately upon receipt. To the extent that any backlog may or may not exist at the
end of a reporting period, it would be an unreliable indicator of future results of any period.
In many instances, we are able to acquire materials on a volume-discount basis. We have multiple potential
sources of supply for most materials, except for the disk or cartridge component of our PLAYSTATION 3,
PlayStation 2, PSP, Wii and Nintendo DS products.
Seasonality
Our business is highly seasonal. We have historically experienced our highest sales volume in the holiday season
quarter ending in December and a seasonal low in sales volume in the quarter ending in June. While our sales
generally follow this seasonal trend, there can be no assurance that this trend will continue. In fiscal year 2009,
we continued to defer the recognition of a significant amount of net revenue related to our online-enabled
packaged goods and digital content over an extended period of time (i.e., typically six months). As a result, the
quarter in which we generate the highest sales volume may be different than the quarter in which we recognize
the highest amount of net revenue. Our results can also vary based on a number of factors, including title release
dates, consumer demand for our products, shipment schedules and our revenue recognition policies.
Employees
As of March 31, 2009, we had approximately 9,100 regular, full-time employees, of whom over 5,100 were
outside the United States. We believe that our ability to attract and retain qualified employees is a critical factor
in the successful development of our products and that our future success will depend, in large measure, on our
ability to continue to attract and retain qualified employees. Approximately 3 percent of our employees, all of
whom work for DICE, our Swedish development studio, are represented by a union, guild or other collective
bargaining organization.
Executive Officers
The following table sets forth information regarding our executive officers as of May 21, 2009:
Name Age Position
John S. Riccitiello .................. 49 Chief Executive Officer
Eric F. Brown ...................... 43 Executive Vice President, Chief Financial Officer
Frank D. Gibeau .................... 40 President, EA Games Label
Peter R. Moore ..................... 54 President, EA SPORTS Label
John F. Pleasants ................... 43 President, Global Publishing and Chief Operating Officer
Rodney Humble .................... 43 Executive Vice President, EA Play Label
Gerhard Florin ..................... 50 Executive Vice President, Western World Publishing
Joel Linzner ....................... 57 Executive Vice President, Business and Legal Affairs
Gabrielle Toledano .................. 42 Executive Vice President, Human Resources
Kenneth A. Barker .................. 42 Senior Vice President, Chief Accounting Officer
Stephen G. Bené .................... 45 Senior Vice President, General Counsel and Corporate
Secretary
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