Electronic Arts 2012 Annual Report Download - page 142

The following table summarizes our unrecognized minimum contractual obligations as of March 31, 2012, and
the effect we expect them to have on our liquidity and cash flow in future periods (in millions):
Contractual Obligations
Fiscal Year
Ending March 31, Leases(a)
Developer/
Licensor
Commitments Marketing
Convertible Notes
Interest(b)
Other
Purchase
Obligations Total
2013 ........................ $ 54 $158 $ 52 $ 5 $15 $ 284
2014 ........................ 48 123 51 5 7 234
2015 ........................ 40 116 32 5 — 193
2016 ........................ 28 166 33 5 — 232
2017 ........................ 15 8 18 2 — 43
Thereafter ................... 26 239 77 — — 342
Total ....................... $211 $810 $263 $22 $22 $1,328
(a) See discussion on operating leases in the “Off-Balance Sheet Commitments” section below for additional
information. Lease commitments have not been reduced by minimum sub-lease rentals for unutilized office
space resulting from our reorganization activities of approximately $7 million due in the future under
non-cancelable sub-leases.
(b) In addition to the interest payments reflected in the table above, we will be obligated to pay the $632.5
million principal amount of the 0.75% Convertible Senior Notes due 2016 and any excess conversion value
in shares of our common stock upon redemption after the maturity of the Notes on July 15, 2016 or earlier.
See Note 11 for additional information related to our 0.75% Convertible Senior Notes due 2016.
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, 2012, we had a liability for unrecognized tax
benefits and an accrual for the payment of related interest totaling $251 million, of which approximately $43
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, 2012, primarily in connection with our PopCap,
KlickNation, and Chillingo acquisitions, we may be required to pay an additional $572 million of cash
consideration based upon the achievement of certain performance milestones through March 31, 2015. As of
March 31, 2012, we have accrued $112 million of contingent consideration on our Consolidated Balance Sheet
representing the estimated fair value of the contingent consideration.
OFF-BALANCE SHEET COMMITMENTS
Lease Commitments
As of March 31, 2012, we leased certain of our current facilities, furniture and equipment under non-cancelable
operating lease agreements. We were required to pay property taxes, insurance and normal maintenance costs for
certain of these facilities and any increases over the base year of these expenses on the remainder of our facilities.
Director Indemnity Agreements
We entered into indemnification agreements with each of the members of our Board of Directors at the time they
joined the Board to indemnify them to the extent permitted by law against any and all liabilities, costs, expenses,
amounts paid in settlement and damages incurred by the Directors as a result of any lawsuit, or any judicial,
administrative or investigative proceeding in which the Directors are sued or charged as a result of their service
as members of our Board of Directors.
INFLATION
We believe the impact of inflation on our results of operations has not been significant in any of the past three
fiscal years.
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