Electronic Arts 2014 Annual Report Download - page 120

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 220): Presentation of an Unrecognized Tax
Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The
amendments of this ASU require that entities that have an unrecognized tax benefit and a net operating loss
carryforward or similar tax loss or tax credit carryforward in the same jurisdiction as the uncertain tax position
present the unrecognized tax benefit as a reduction of the deferred tax asset for the loss or tax credit carryforward
rather than as a liability when the uncertain tax position would reduce the loss or tax credit carryforward under
the tax law. The disclosure requirements will be effective for annual periods (and interim periods within those
annual periods) beginning after December 15, 2013, and will require prospective application. Early adoption is
permitted. The adoption will impact our balance sheet only, and we expect to adopt this new standard in the first
quarter of fiscal year 2015. While we have not completed our analysis, we anticipate the adoption will result in
equal reductions to both deferred tax assets and noncurrent income tax obligations between $80 million and $90
million.
50