Electronic Arts 2010 Annual Report Download - page 170

Property and Equipment, Net
Property and equipment, net, as of March 31, 2010 and 2009 consisted of (in millions):
As of March 31,
2010 2009
Computer equipment and software ............................................. $ 480 $ 663
Buildings ................................................................. 347 143
Leasehold improvements .................................................... 99 125
Office equipment, furniture and fixtures ........................................ 71 63
Land .................................................................... 65 11
Warehouse equipment and other .............................................. 10 14
Construction in progress ..................................................... 13 16
1,085 1,035
Less accumulated depreciation ................................................ (548) (681)
Property and equipment, net ................................................ $ 537 $ 354
Depreciation expense associated with property and equipment amounted to $123 million, $117 million and $126
million for the fiscal years ended March 31, 2010, 2009 and 2008, respectively.
On July 13, 2009, we purchased our Redwood Shores headquarters facilities comprised of approximately
660,000 square feet concurrent with the expiration and extinguishment of the lessor’s financing agreements.
These facilities were subject to lease obligations to non-affiliated parties, which expired in July 2009, and had
previously been accounted for as operating leases. The total amount paid under the terms of the leases was $247
million, of which $233 million related to the purchase price of the facilities and $14 million was for the loss on
our lease obligation. This $14 million loss is included in general and administrative expense on our Consolidated
Statements of Operations. Subsequent to our purchase, we classified the facilities on our Consolidated Balance
Sheet as property and equipment, net and depreciate the facilities acquired, excluding land, on a straight-line
basis over the estimated useful lives.
Acquisition-Related Restricted Cash Included in Other Current Assets and Other Assets
In connection with our acquisition of Playfish on November 9, 2009, we deposited $100 million into an escrow
account to be used to pay the former shareholders of Playfish in the event certain performance milestones
through December 31, 2011 are achieved. During fiscal year 2010, no distributions were made from the restricted
cash amount. As this deposit is restricted in nature, the long-term portion of $61 million is included in other
assets and the short-term portion of $39 million is included in other current assets on our Consolidated Balance
Sheet as of March 31, 2010. See Note 5 regarding our acquisition of Playfish.
Accrued and Other Current Liabilities
Accrued and other current liabilities as of March 31, 2010 and 2009 consisted of (in millions):
As of March 31,
2010 2009
Other accrued expenses ..................................................... $ 293 $ 237
Accrued compensation and benefits ............................................ 177 142
Accrued royalties .......................................................... 144 237
Deferred net revenue (other) ................................................. 103 107
Accrued and other current liabilities ....................................... $ 717 $ 723
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