Electronic Arts 2012 Annual Report Download - page 163

Annual Report
(3) FINANCIAL INSTRUMENTS
Cash and Cash Equivalents
As of March 31, 2012 and 2011, our cash and cash equivalents were $1,293 million and $1,579 million,
respectively. Cash equivalents were valued at their carrying amounts as they approximate fair value due to the
short maturities of theses financial instruments.
Short-Term Investments
Short-term investments consisted of the following as of March 31, 2012 and 2011 (in millions):
As of March 31, 2012 As of March 31, 2011
Cost or
Amortized
Cost
Gross Unrealized Fair
Value
Cost or
Amortized
Cost
Gross Unrealized Fair
ValueGains Losses Gains Losses
U.S. Treasury securities ............. $166 $— $— $166 $124 $— $— $124
Corporate bonds ................... 149 1 — 150 252 1 — 253
U.S. agency securities ............... 116 — — 116 102 — — 102
Commercial paper .................. 5 — — 5 18 — — 18
Short-term investments ............ $436 $ 1 $— $437 $496 $ 1 $— $497
We evaluate our investments for impairment quarterly. Factors considered in the review of investments with an
unrealized loss include the credit quality of the issuer, the duration that the fair value has been less than the
adjusted cost basis, severity of the impairment, reason for the decline in value and potential recovery period, the
financial condition and near-term prospects of the investees, our intent to sell the investments, any contractual
terms impacting the prepayment or settlement process, as well as if we would be required to sell an investment
due to liquidity or contractual reasons before its anticipated recovery. Based on our review, we did not consider
these investments to be other-than-temporarily impaired as of March 31, 2012 and 2011.
The following table summarizes the amortized cost and fair value of our short-term investments, classified by
stated maturity as of March 31, 2012 and 2011 (in millions):
As of March 31, 2012 As of March 31, 2011
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Short-term investments
Due in 1 year or less ....................................... $207 $207 $214 $214
Due in 1-2 years .......................................... 123 124 156 157
Due in 2-3 years .......................................... 106 106 126 126
Short-term investments ................................... $436 $437 $496 $497
Marketable Equity Securities
Our investments in marketable equity securities consist of investments in common stock of publicly-traded
companies and are accounted for as available-for-sale securities and are recorded at fair value. Unrealized gains
and losses are recorded as a component of accumulated other comprehensive income in stockholders’ equity, net
of tax, until either the security is sold or we determine that the decline in the fair value of a security to a level
below its adjusted cost basis is other-than-temporary. We evaluate these investments for impairment quarterly. If
we conclude that an investment is other-than-temporarily impaired, we will recognize an impairment charge at
that time in our Consolidated Statements of Operations.
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