Electronic Arts 2012 Annual Report Download - page 109

Annual Report
Item 1B: Unresolved Staff Comments
None.
Item 2: Properties
We own our 660,000-square-foot Redwood Shores headquarters facilities located in Redwood City, California
which includes a product development studio and administrative and sales functions. We also own a 418,000-
square-foot product development studio facility in Burnaby, Canada. In addition to the properties we own, we
lease approximately 1.2 million square feet in North America and 0.8 million square feet in Europe and Asia at
various research and development, sales and administration and distribution facilities, including leases for our
multi-function facility in Guildford, Surrey, United Kingdom, our research and development studios in Los
Angeles, California and Orlando, Florida, and our distribution center in Louisville, Kentucky.
While we continually evaluate our facility requirements, we believe that suitable additional or substitute space
will be available as needed to accommodate our future needs. For information regarding our lease commitments,
see Note 12 of the Notes to Consolidated Financial Statements, included in Item 8 in this report.
We do not identify or allocate our assets by operating segment. For information on long-lived assets by
geography, see Note 18 of the Notes to Consolidated Financial Statements, included in Item 8 in this report.
Item 3: Legal Proceedings
In June 2008, Geoffrey Pecover filed an antitrust class action in the United States District Court for the Northern
District of California, alleging that EA obtained an illegal monopoly in a discreet antitrust market that consists of
“league-branded football simulation video games” by bidding for, and winning, exclusive licenses with the NFL,
Collegiate Licensing Company and Arena Football League. In December 20, 2010, the district court granted the
plaintiffs’ request to certify a class of plaintiffs consisting of all consumers who purchased EA’s Madden NFL,
NCAA Football or Arena Football video games after 2005. The court has set a trial date for October 2012. The
complaint seeks compensatory damages. The parties initiated settlement negotiations in May 2012 and
subsequently reached a non-binding settlement in principle; however, no settlement agreement has been
approved by the court as of the date of this filing. As a result, we recognized a $27 million accrual in the fourth
quarter of fiscal 2012 associated with the potential settlement.
We are also 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, included in Item 8 in
this report.
Item 4: Mine Safety Disclosures
Not applicable.
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