Electronic Arts 2014 Annual Report Download - page 112

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Amortization of Intangibles
Amortization of intangibles for fiscal years 2014 and 2013 were as follows (in millions):
March 31,
2014
% of Net
Revenue
March 31,
2013
% of Net
Revenue $ Change % Change
$16 —% $30 1% $(14) (47)%
Amortization of intangibles decreased by $14 million, or 47 percent, in fiscal year 2014, as compared to fiscal
year 2013, primarily due to certain intangible assets from our acquisitions being fully amortized and impairment
charges incurred during fiscal year 2013.
Restructuring and Other Charges
Restructuring and other charges for fiscal years 2014 and 2013 were as follows (in millions):
March 31,
2014
% of Net
Revenue
March 31,
2013
% of Net
Revenue $ Change % Change
$(1) —% $27 1% $(28) (104)%
Restructuring and other charges decreased as compared to fiscal year 2013, as there were no new restructuring
initiatives in fiscal year 2014. See the “Liquidity and Capital Resources” section on page 51 for additional
information regarding our previous restructuring plans.
Interest and Other Income (Expense), Net
Interest and other income (expense), net, for fiscal years 2014 and 2013 were as follows (in millions):
March 31,
2014
% of Net
Revenue
March 31,
2013
% of Net
Revenue $ Change % Change
$(26) (1)% $(21) (1)% $(5) (24)%
Interest and other income (expense), net, remained relatively consistent, as compared to fiscal year 2013.
Income Taxes
Provision for (benefit from) income taxes for fiscal years 2014 and 2013 was as follows (in millions):
March 31,
2014
Effective
Tax Rate
March 31,
2013
Effective
Tax Rate
$(1) (14.3)% $41 29.5%
Our effective tax rate for the fiscal year 2014 was a tax benefit of 14.3%. The fiscal year 2014 effective tax rate
differs from the statutory rate of 35.0 percent as a result of the utilization of U.S. deferred tax assets subject to a
valuation allowance and tax benefits related to the expiration of statutes of limitations and the resolution of
examinations by taxing authorities.
Our effective tax rate for the fiscal year 2013 differs from the statutory rate of 35.0 percent primarily due to the
U.S. losses for which no benefit is recognized and non-deductible stock-based compensation, offset by non-U.S.
profits subject to reduced or zero tax rates and the nontaxable change in the estimated fair value of acquisition-
related contingent consideration.
Our effective income tax rates for fiscal year 2015 and future periods will depend on a variety of factors,
including changes in the deferred tax valuation allowance, changes in our business such as acquisitions and
intercompany transactions, changes in our international structure, changes in the geographic location of business
functions or assets, changes in the geographic mix of income, changes in or termination of our agreements with
tax authorities, applicable accounting rules, applicable tax laws and regulations, rulings and interpretations
42