Electronic Arts 2012 Annual Report Download - page 169

Annual Report
Finite-lived intangible assets acquired in this transaction are being amortized on a straight-line basis over their
estimated lives ranging from two to five years. The intangible assets as of the date of the acquisition include:
Gross Carrying
Amount
Weighted-Average
Useful Life
(in millions) (in years)
Registered user base ............................................... $33 2
Developed and core technology ...................................... 13 5
Trade names and trademarks ........................................ 4 5
Other intangibles ................................................. 3 4
Total finite-lived intangibles ...................................... $53 3
The results of operations of Playfish and the estimated fair market values of the assets acquired and liabilities
assumed have been included in our Consolidated Financial Statements since the date of acquisition. Pro forma
results of operations have not been presented because the effect of the acquisition was not material to our
Consolidated Statements of Operations.
Other Fiscal Year 2010 Acquisitions
During the fiscal year ended March 31, 2010, we completed three additional acquisitions that did not have a
significant impact on our Consolidated Financial Statements.
(6) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET
The changes in the carrying amount of goodwill are as follows (in millions):
EA Labels Segment
As of March 31, 2011
Goodwill .................................................................. $1,478
Accumulated impairment ..................................................... (368)
1,110
Goodwill acquired .......................................................... 610
Effects of foreign currency translation ........................................... (2)
As of March 31, 2012
Goodwill .................................................................. 2,086
Accumulated impairment ..................................................... (368)
$1,718
Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible
and intangible assets. The factors that contributed to the recognition of goodwill included securing buyer-specific
synergies that increase revenue and profits and are not otherwise available to a marketplace participant, acquiring
a talented workforce, and cost saving opportunities. Goodwill is not amortized, but rather subject to at least an
annual assessment for impairment by applying a fair value-based test.
During the fiscal years ended March 31, 2012, 2011 and 2010, we found no indicators of impairment of our
recorded goodwill and as such, we did not recognize an impairment charge on goodwill in fiscal years 2012,
2011 and 2010.
Acquisition-related intangible assets, net of accumulated amortization, as of March 31, 2012 and 2011, were
$369 million and $144 million, respectively, and include costs for obtaining (1) developed and core technology,
(2) trade names and trademarks, (3) carrier contracts and related, (4) registered user base and other intangibles,
and (5) in-process research and development.
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