Electronic Arts 2010 Annual Report Download - page 163

Annual Report
Other acquisition-related intangibles acquired in this transaction are finite-lived and are being amortized on a
straight-line basis over their estimated lives ranging from two to five years. The intangible assets as of the date of
the acquisition include:
Gross Carrying
Amount
(in millions)
Weighted-Average
Useful Life
(in years)
Registered User Base ............................................. $33 2
Developed and Core Technology .................................... 13 5
Trade Names and Trademarks ...................................... 4 5
Other Intangibles ................................................ 3 4
Total Finite-Lived Intangibles .................................... $53 3
Other Fiscal Year 2010 Acquisitions
During the fiscal year ended March 31, 2010, we completed three additional acquisitions that did not have a
significant impact on our Consolidated Financial Statements.
Fiscal Year 2009 Acquisitions
In May 2008, we acquired ThreeSF, Inc, a company based in San Francisco, California, that developed an online
social network for gamers. Separately, in May 2008, we acquired certain assets of Hands-On Mobile Inc. and its
affiliates relating to its Korean Mobile games business based in Seoul, Korea. These business combinations were
completed for total cash consideration of approximately $45 million, including transaction costs. During the three
months ended December 31, 2008, we completed two additional acquisitions for total cash consideration of
approximately $18 million, including transaction costs. These acquisitions were not material to our Consolidated
Balance Sheets and Statements of Operations. The results of operations and the estimated fair value of the assets
acquired and liabilities assumed have been included in our Consolidated Financial Statements since the date of
the acquisitions.
Fiscal Year 2008 Acquisition
VG Holding Corp.
On January 4, 2008, we acquired all of the outstanding shares of VG Holding Corp. (“VGH”), owner of both
BioWare Corp. and Pandemic Studios, LLC, creators of action, adventure and role-playing games. We no longer
operate Pandemic as a separate studio. BioWare Studios are located in Edmonton, Canada; Montreal, Canada;
and Austin, Texas. The acquisition positioned us for further growth in role-playing, action and adventure genres.
We paid approximately $2 per share to the stockholders of VGH and assumed all outstanding stock options for
an aggregate purchase price of $682 million, including transaction costs. Separate from the purchase price and
prior to January 4, 2008, we loaned VGH $30 million. The following table summarizes the estimated fair values
of assets acquired and liabilities assumed as of March 31, 2008, in connection with our acquisition of VGH
during the fiscal year ended March 31, 2008 (in millions):
Current assets ......................................................................... $ 68
Property and equipment, net .............................................................. 8
Acquired in-process technology ........................................................... 138
Goodwill ............................................................................. 414
Finite-lived intangibles .................................................................. 114
Long-term deferred taxes ................................................................ 9
Other liabilities ........................................................................ (69)
Total purchase price .................................................................. $682
85