Electronic Arts 2011 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2011 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 192

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

decreased reported Net Revenue before Revenue Deferral by approximately $44 million, or 3 percent, in fiscal
year 2010 as compared to fiscal year 2009. Excluding the effect of foreign exchange rates from Net Revenue
before Revenue Deferral, we estimate that Net Revenue before Revenue Deferral increased by approximately
$138 million, or 9 percent, in fiscal year 2010 as compared to fiscal year 2009.
Revenue Deferral for fiscal year 2010 increased by $509 million, or 108 percent, as compared to fiscal year 2009.
This increase was driven by a $347 million increase from The Sims, FIFA, and Battlefield franchises.
The Recognition of Revenue Deferral for fiscal year 2010 increased $259 million, or 48 percent, as compared to
fiscal year 2009. This increase was driven by a $235 million increase from The Sims and FIFA franchises.
For fiscal year 2010, Net Revenue in Europe was $1,433 million, driven by FIFA 10,The Sims 3, and Need for
Speed Shift. Net Revenue for fiscal year 2010 decreased $156 million, or 10 percent, as compared to fiscal year
2009. This decrease was driven by a $109 million decrease from the Rock Band, Battlefield, and Spore
franchises. We estimate that foreign exchange rates (primarily the British pound sterling) decreased reported Net
Revenue by approximately $116 million, or 7 percent, in fiscal year 2010 as compared to fiscal year 2009.
Excluding the effect of foreign exchange rates from Net Revenue, we estimate that Net Revenue decreased by
approximately $40 million, or 3 percent, in fiscal year 2010 as compared to fiscal year 2009.
Asia
For fiscal year 2010, Net Revenue before Revenue Deferral in Asia was $222 million, driven by FIFA 10,
Battlefield: Bad Company 2, and The Sims 3. Net Revenue before Revenue Deferral for fiscal year 2010
increased by $19 million, or 9 percent, as compared to fiscal year 2009. This increase was driven by a $23
million increase from the FIFA, EA SPORTS Active, and Dragon Age franchises. This increase was partially
offset by a $10 million decrease from the Mercenaries and Spore franchises. We estimate that foreign exchange
rates (primarily the Australian dollar) increased reported Net Revenue before Revenue Deferral by approximately
$8 million, or 4 percent, in fiscal year 2010 as compared to fiscal year 2009. Excluding the effect of foreign
exchange rates from Net Revenue before Revenue Deferral, we estimate that Net Revenue before Revenue
Deferral increased by approximately $11 million, or 5 percent, in fiscal year 2010 as compared to fiscal year
2009.
Revenue Deferral for fiscal year 2010 increased $55 million, or 82 percent, as compared to fiscal year 2009. This
increase was driven by a $41 million increase from The Sims, Battlefield, and FIFA, and Dragon Age franchises.
The Recognition of Revenue Deferral for fiscal year 2010 increased $21 million, or 28 percent, as compared to
fiscal year 2009. This increase was driven by a $21 million increase from The Sims and FIFA franchises.
For fiscal year 2010, Net Revenue in Asia was $196 million, driven by FIFA 10, The Sims 3, and EA SPORTS
FIFA Online 2. Net Revenue for fiscal year 2010 decreased by $15 million, or 7 percent, as compared to fiscal
year 2009. This decrease was driven by a $12 million decrease from the Battlefield and Medal of Honor
franchises. We estimate that foreign exchange rates (primarily the Australian dollar) increased reported Net
Revenue by approximately $9 million, or 4 percent, in fiscal year 2010 as compared to fiscal year 2009.
Excluding the effect of foreign exchange rates from Net Revenue, we estimate that Net Revenue decreased by
approximately $24 million, or 11 percent, in fiscal year 2010 as compared to fiscal year 2009.
Non-GAAP Financial Measures
See “Non-GAAP Financial Measures” above for more information on our use of Net Revenue before Revenue
Deferral as a measure of our operating results.
46