Electronic Arts 2012 Annual Report Download - page 162

(d) During the fourth quarter of fiscal year 2012, we made a payment of $25 million to settle certain
performance milestones achieved through December 31, 2011 in connection with our acquisition of
Playfish. See Note 5 and Note 9 for additional information regarding the Playfish acquisition.
(e) During the fourth quarter of fiscal year 2012, we reclassified $25 million of contingent consideration in
connection with our acquisition of Playfish to other current liabilities in our Consolidated Balance Sheet as
the contingency was settled. This amount is no longer measured at fair value on a recurring basis and is
expected to be paid during the second quarter of fiscal 2013. See Note 5 and Note 9 for additional
information regarding the Playfish acquisition.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
During fiscal year 2012, our assets that were measured and recorded at fair value on a nonrecurring basis and the
related impairments on those assets were as follows (in millions):
Fair Value Measurements Using
Net Carrying
Value as of
March 31, 2012
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Total Impairments for
the Fiscal Year Ended
March 31, 2012(Level 1) (Level 2) (Level 3)
Assets
Acqusition-related intangible assets .... $— $— $— $— $12
Total impairments recorded for non-recurring
measurements on assets held as of March 31,
2012 ................................... $12
During fiscal year 2012, we became aware of facts and circumstances that indicated that the carrying value of
some of our acquisition-related intangible assets were not recoverable. This impairment is included in cost of
product revenue on our Consolidated Statement of Operations.
During fiscal year 2011, our assets that were measured and recorded at fair value on a nonrecurring basis and the
related impairments on those assets were as follows (in millions):
Fair Value Measurements Using
Net Carrying
Value as of
March 31, 2011
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Total Impairments for
the Fiscal Year Ended
March 31, 2011(Level 1) (Level 2) (Level 3)
Assets
Royalty-based asset ................. $10 $— $— $10 $13
Total impairments recorded for non-recurring
measurements on assets held as of March 31,
2011 ................................... $13
During fiscal year 2011, we became aware of facts and circumstances that indicated that the carrying value of
one of our royalty-based assets was not recoverable. This impairment is included in research and development
expenses on our Consolidated Statement of Operations.
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