Electronic Arts 2011 Annual Report Download - page 166

Collegiate Licensing Company (collegiate football); ESPN (content in EA SPORTS games); Hasbro, Inc. (most
of Hasbro’s toy and game intellectual properties); LucasArts and Lucas Licensing (Star Wars: The Old
Republic), and the Estate of Robert Ludlum (Robert Ludlum novels and films). These developer and content
license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and
services agreements and (2) the minimum guaranteed payments and advances against royalties due under royalty-
bearing licenses and services agreements, the majority of which are conditional upon performance by the
counterparty. These minimum guarantee payments and any related marketing commitments are included in the
table below.
The following table summarizes our unrecognized minimum contractual obligations as of March 31, 2011 (in
millions):
Contractual Obligations
Total
Fiscal Year
Ending March 31, Leases(a)
Developer/
Licensor
Commitments Marketing
Other
Purchase
Obligations
2012 ........................................ $ 44 $ 331 $ 90 $ 8 $ 473
2013 ........................................ 36 199 37 3 275
2014 ........................................ 26 124 66 3 219
2015 ........................................ 21 114 32 2 169
2016 ........................................ 15 83 33 — 131
Thereafter .................................... 9 366 95 — 470
Total ........................................ $151 $1,217 $353 $16 $1,737
(a) Lease commitments have not been reduced by minimum sub-lease rentals for unutilized office space
resulting from our reorganization activities of approximately $12 million due in the future under
non-cancelable sub-leases.
The amounts represented in the table above reflect our unrecognized minimum cash obligations for the respective
fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our
Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates
the amounts are contractually due; however, certain payment obligations may be accelerated depending on the
performance of our operating results.
In addition to what is included in the table above as of March 31, 2011, we had a liability for unrecognized tax
benefits and an accrual for the payment of related interest totaling $238 million, of which approximately $37
million is offset by prior cash deposits to tax authorities for issues pending resolution. For the remaining liability,
we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur.
In addition to what is included in the table above as of March 31, 2011, in connection with our acquisitions, we
may be required to pay an additional $110 million of cash consideration through March 31, 2014, that is
contingent upon the achievement of certain performance milestones. As of March 31, 2011, we have accrued $51
million of contingent consideration on our Consolidated Balance Sheet.
Total rent expense for all operating leases was $96 million, $91 million and $98 million, for the fiscal years
ended March 31, 2011, 2010 and 2009, respectively.
Legal Proceedings
We are subject to claims and litigation arising in the ordinary course of business. We do not believe that any
liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the
aggregate, would have a material adverse effect on our Consolidated Financial Statements.
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