Electronic Arts 2011 Annual Report Download - page 153

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Annual Report
The effect of the gains and losses from our foreign currency option contracts in our Consolidated Statements of
Operations for the fiscal years ended March 31, 2011 and 2010, was immaterial.
Balance Sheet Hedging Activities
Our foreign currency forward contracts are not designated as hedging instruments, and are accounted for as
derivatives whereby the fair value of the contracts is reported as other current assets or accrued and other current
liabilities on our Consolidated Balance Sheets, and gains and losses resulting from changes in the fair value are
reported in interest and other income, net, in our Consolidated Statements of Operations. The gains and losses on
these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-
denominated monetary assets and liabilities, which are also reported in interest and other income, net, in our
Consolidated Statements of Operations. As of March 31, 2011, we had foreign currency forward contracts to
purchase and sell approximately $187 million in foreign currencies. Of this amount, $140 million represented
contracts to sell foreign currencies in exchange for U.S. dollars, $31 million to purchase foreign currency in
exchange for U.S. dollars and $16 million to sell foreign currency in exchange for British pounds sterling. As of
March 31, 2010, we had foreign currency forward contracts to purchase and sell approximately $431 million in
foreign currencies. Of this amount, $293 million represented contracts to sell foreign currencies in exchange for
U.S. dollars, $127 million to purchase foreign currencies in exchange for U.S. dollars and $11 million to sell
foreign currencies in exchange for British pounds sterling. The fair value of our foreign currency forward
contracts was immaterial as of March 31, 2011 and 2010.
The effect of foreign currency forward contracts in our Consolidated Statements of Operations for the fiscal years
ended March 31, 2011 and 2010, was as follows (in millions):
Location of Gain (Loss)
Recognized in Income on
Derivative
Amount of Gain (Loss)
Recognized in Income
on Derivative
Year Ended
March 31,
2011 2010
Foreign currency forward contracts not designated as
hedging instruments ............................. Interest and other income, net $(12) $10
(5) BUSINESS COMBINATIONS
Fiscal Year 2011 Acquisition
In October 2010, we acquired all of the outstanding shares of Chillingo Limited in cash. Chillingo publishes
games and software for various mobile platforms. In addition, we may be required to pay additional variable cash
that is contingent upon the achievement of certain performance milestones through March 31, 2014. This
acquisition did not have a significant impact on our Consolidated Financial Statements.
Fiscal Year 2010 Acquisitions
Playfish
In November 2009, we acquired all of the outstanding shares of Playfish for an aggregate purchase price of
approximately $308 million in cash and equity. Playfish is a developer of free-to-play social games that can be
played on social networking platforms. The following table summarizes the acquisition date fair value of the
consideration transferred which consisted of the following (in millions):
Cash ................................................................................. $297
Equity ............................................................................... 11
Total purchase price .................................................................. $308
77