Electronic Arts 2012 Annual Report Download - page 174

abandoned (i.e., cease use) or the contractual rights to use the intellectual property are terminated. During fiscal
year 2012, we recognized losses of $21 million, representing an adjustment to our fiscal 2011 restructuring.
During fiscal year 2011, we recognized losses of $85 million, inclusive of $75 million related to the fiscal 2011
restructuring, on previously unrecognized minimum royalty-based commitments. In addition, we recognized
impairment charges of $40 million, inclusive of $27 million related to the fiscal 2011 restructuring, on royalty-
based assets. During fiscal year 2010, we recognized impairment charges of $10 million, inclusive of $9 million
related to the fiscal 2010 restructuring, on royalty-based assets. The losses and impairment charges related to
restructuring and other restructuring plan-related activities are presented in Note 7 of the Notes to Consolidated
Financial Statements.
The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included
in other current assets and other assets, consisted of (in millions):
As of March 31,
2012 2011
Other current assets .......................................................... $ 85 $ 89
Other assets ................................................................ 102 22
Royalty-related assets ...................................................... $187 $111
At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates,
content licensors and/or independent software developers, we recognize unpaid royalty amounts owed to these
parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and
other current liabilities and other liabilities, consisted of (in millions):
As of March 31,
2012 2011
Accrued and other current liabilities ............................................. $121 $136
Other liabilities ............................................................. 52 61
Royalty-related liabilities ................................................... $173 $197
As of March 31, 2012, $75 million of restructuring accruals related to the fiscal 2011 restructuring plan is
included in royalty-related liabilities in the table above. See Note 7 for details of restructuring and other
restructuring plan-related activities and Note 9 for the details of our accrued and other current liabilities.
In addition, as of March 31, 2012, we were committed to pay approximately $810 million to content licensors,
independent software developers, and co-publishing and/or distribution affiliates, but performance remained with
the counterparty (i.e., delivery of the product or content or other factors) and such commitments were therefore
not recorded in our Consolidated Financial Statements.
(9) BALANCE SHEET DETAILS
Inventories
Inventories as of March 31, 2012 and 2011 consisted of (in millions):
As of March 31,
2012 2011
Raw materials and work in process .............................................. $— $ 8
Finished goods .............................................................. 59 69
Inventories ............................................................... $59 $77
90