Electronic Arts 2012 Annual Report Download - page 170

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Amortization of intangibles for the fiscal years ended March 31 2012, 2011 and 2010 are classified in the
Consolidated Statement of Operations as follows (in millions):
Year Ended March 31,
2012 2011 2010
Cost of product ...................................................... $35 $ 9 $ 7
Cost of service and other ............................................... 17 3 3
Research and development ............................................. 43 57 53
Total ............................................................ $95 $69 $63
Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated
useful lives or the agreement terms, typically from two to fourteen years. As of March 31, 2012 and 2011, the
weighted-average remaining useful life for acquisition-related intangible assets was approximately 5.7 and 5.1
years for each period, respectively.
Acquisition-related intangibles, consisted of the following (in millions):
As of March 31, 2012 As of March 31, 2011
Gross
Carrying
Amount
Accumulated
Amortization
Acquisition-
Related
Intangibles, Net
Gross
Carrying
Amount
Accumulated
Amortization
Acquisition-
Related
Intangibles, Net
Developed and core technology .......... $518 $(229) $289 $259 $(180) $ 79
Trade names and trademarks ............. 131 (84) 47 90 (70) 20
Registered user base and other intangibles . . 90 (80) 10 86 (64) 22
Carrier contracts and related ............. 85 (67) 18 85 (62) 23
In-process research and development ...... 10 (5) 5
Total .............................. $834 $(465) $369 $520 $(376) $144
As of March 31, 2012, future amortization of finite-lived intangibles that will be recorded in cost of revenue and
operating expenses is estimated as follows (in millions):
Fiscal Year Ending March 31,
2013 .................................................................................. $ 78
2014 .................................................................................. 67
2015 .................................................................................. 62
2016 .................................................................................. 50
2017 .................................................................................. 42
Thereafter .............................................................................. 70
Total ................................................................................ $369
86