Electronic Arts 2010 Annual Report Download - page 171
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Annual Report
Deferred net revenue (other) includes the deferral of subscription revenue, deferrals related to our Switzerland
distribution business, advertising revenue, licensing arrangements and other revenue for which revenue
recognition criteria has not been met.
Deferred Net Revenue (Packaged Goods and Digital Content)
Deferred net revenue (packaged goods and digital content) was $766 million as of March 31, 2010 and $261
million as of March 31, 2009. Deferred net revenue (packaged goods and digital content) includes the
unrecognized revenue from (1) bundled sales of certain online-enabled packaged goods and digital content for
which either we do not have vendor-specific objective evidence of fair value (“VSOE”) for the online service that
we provide in connection with the sale of the software or we have an obligation to provide future incremental
unspecified digital content, (2) certain packaged goods sales of massively-multiplayer online role-playing games,
and (3) sales of certain incremental content associated with our core subscription services that can only be played
online, which are types of “micro-transactions.” We recognize revenue from sales of online-enabled packaged
goods and digital content for which (1) we do not have VSOE for the online service that we provided in
connection with the sale and (2) we have an obligation to deliver incremental unspecified digital content in the
future without an additional fee on a straight-line basis over an estimated six month period beginning in the
month after shipment. However, we expense the cost of goods sold related to these transactions during the period
in which the product is delivered (rather than on a deferred basis).
(10) INCOME TAXES
The components of our loss before provision for (benefit from) income taxes for the fiscal years ended March 31,
2010, 2009 and 2008 are as follows (in millions):
Year Ended March 31,
2010 2009 2008
Domestic ......................................................... $(501) $(670) $(353)
Foreign ........................................................... (205) (185) (154)
Loss before provision for (benefit from) income taxes ...................... $(706) $(855) $(507)
Provision for (benefit from) income taxes for the fiscal years ended March 31, 2010, 2009 and 2008 consisted of
(in millions):
Current Deferred Total
Year Ended March 31, 2010
Federal ......................................................... $ (8) $ (57) $ (65)
State ........................................................... 2 (4) (2)
Foreign ......................................................... 27 11 38
$ 21 $ (50) $ (29)
Year Ended March 31, 2009
Federal ......................................................... $ (15) $ 161 $ 146
State ........................................................... (2) 76 74
Foreign ......................................................... 26 (13) 13
$ 9 $ 224 $ 233
Year Ended March 31, 2008
Federal ......................................................... $ (28) $ (43) $ (71)
State ........................................................... (1) (21) (22)
Foreign ......................................................... 46 (6) 40
$ 17 $ (70) $ (53)
93