Electronic Arts 2012 Annual Report Download - page 75

Proxy Statement
APPENDIX A
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO THE MOST DIRECTLY
COMPARABLE GAAP FINANCIAL MEASURES
The Compensation Discussion and Analysis (“CD&A”) in this Proxy Statement contains the following
non-GAAP financial measures: non-GAAP net revenue, non-GAAP diluted earnings-per-share and non-GAAP
digital revenue, as well as the year-to-year comparisons. The table below reconciles the non-GAAP financial
measures in the CD&A to the most directly comparable financial measures prepared in accordance with U.S.
Generally Accepted Accounting Principles (“GAAP”):
Twelve Months Ended March 31,
(In millions, except per share data, unaudited)
2012 2011 2010 2009
GAAP net revenue .......................................... $4,143 $3,589 $3,654 $4,212
Change in deferred net revenue (packaged goods and digital content) . . 43 239 505 (126)
Non-GAAP net revenue ..................................... $4,186 $3,828 $4,159 $4,086
GAAP Wireless, Internet-derived, and Advertising (Digital) net
revenue ................................................. $1,159 $ 743 $ 522 $ 427
Change in deferred net revenue (packaged goods and digital content) . . 68 90 48 (3)
Non-GAAP Wireless, Internet-derived, and Advertising (Digital)
net revenue .............................................. $1,227 $ 833 $ 570 $ 424
GAAP diluted earnings (loss) per share ........................ $ 0.23 $ (0.84) $ (2.08) $ (3.40)
Pre-tax reconciling adjustments:
Acquisition-related expenses ................................ 0.32 0.16 0.20 1.45
Amortization of debt discount ................................ 0.04———
Certain non-recurring litigation expenses ....................... 0.08———
Change in deferred net revenue (packaged goods and digital
content) ............................................... 0.13 0.72 1.55 (0.39)
Loss (gain) on strategic investments, net ....................... — (0.07) 0.08 0.19
Loss on lease obligation (G&A) .............................. — — 0.04 —
Loss on licensed intellectual property commitment (COGS) ........ — — (0.01) 0.12
Restructuring and other ..................................... 0.05 0.49 0.43 0.25
Stock-based compensation .................................. 0.50 0.53 0.50 0.63
Total pre-tax reconciling adjustments ........................ 1.12 1.83 2.79 2.25
Income tax adjustments ..................................... (0.50) (0.28) (0.26) 0.85
GAAP loss to Non-GAAP income diluted share adjustment impact . . — (0.01) (0.01) —
Non-GAAP diluted earnings (loss) per share .................... $ 0.85 $ 0.70 $ 0.44 $ (0.30)
Number of shares used in computation:
GAAP diluted earnings (loss), pre-tax reconciling adjustments and
income tax adjustments ................................... 336 330 325 320
Non-GAAP diluted earnings (loss) ............................ 336 334 327 320
About Non-GAAP Financial Measures
To supplement the Company’s consolidated financial statements presented in accordance with GAAP, we use
certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures
is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures
used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of
the amounts associated with the Company’s results of operations as determined in accordance with GAAP. These
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