Electronic Arts 2012 Annual Report Download - page 151

Annual Report
ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
(In millions) 2012 2011 2010
OPERATING ACTIVITIES
Net income (loss) .................................................. $ 76 $ (276) $ (677)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation, amortization and accretion, net .......................... 216 180 192
Stock-based compensation ......................................... 170 176 187
Acquisition-related contingent consideration .......................... 11 (17) 2
Net losses (gains) on investments and sale of property and equipment ...... (12) (25) 22
Other non-cash restructuring charges ................................. (6) 1 39
Change in assets and liabilities:
Receivables, net ............................................... (14) (122) (66)
Inventories ................................................... 21 25 123
Other assets ................................................... (101) 5 18
Accounts payable .............................................. (50) 114 (57)
Accrued and other liabilities ...................................... 13 (4) (138)
Deferred income taxes, net ....................................... (90) 24 2
Deferred net revenue (packaged goods and digital content) ............. 43 239 505
Net cash provided by operating activities ......................... 277 320 152
INVESTING ACTIVITIES
Capital expenditures ................................................ (172) (59) (72)
Purchase of headquarters facilities ..................................... — — (233)
Proceeds from sale of property ........................................ 26 — —
Purchase of short-term investments .................................... (468) (514) (611)
Proceeds from maturities and sales of short-term investments ............... 526 442 710
Proceeds from sale of marketable equity securities ........................ — 132 17
Acquisition of subsidiaries, net of cash acquired .......................... (676) (16) (283)
Acquisition-related restricted cash ..................................... 75 — (100)
Net cash used in investing activities ............................. (689) (15) (572)
FINANCING ACTIVITIES
Proceeds from borrowings on convertible senior notes, net of issuance costs . . . 617 — —
Purchase of convertible note hedge .................................... (107) — —
Proceeds from issuance of warrants .................................... 65 — —
Proceeds from issuance of common stock ............................... 57 34 39
Excess tax benefit from stock-based compensation ........................ 4 1 14
Repurchase and retirement of common stock ............................ (471) (58) —
Acquisition-related contingent consideration payment ..................... (25) — —
Net cash provided by (used in) financing activities .................. 140 (23) 53
Effect of foreign exchange on cash and cash equivalents ..................... (14) 24 19
Increase (decrease) in cash and cash equivalents ............................ (286) 306 (348)
Beginning cash and cash equivalents ..................................... 1,579 1,273 1,621
Ending cash and cash equivalents ....................................... $1,293 $1,579 $1,273
Supplemental cash flow information:
Cash paid (refunded) during the year for income taxes, net ................. $ (4) $ 21 $ (34)
Cash paid during the year for interest .................................. $ 2 $ — $ —
Non-cash investing activities:
Change in unrealized gains on available-for-sale securities, net of taxes ....... $ (40) $ (4) $ (54)
Equity issued in connection with acquisition ............................. $ 87 $ — $ 11
See accompanying Notes to Consolidated Financial Statements.
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