Electronic Arts 2014 Annual Report Download - page 135

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Annual Report
ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
(In millions) 2014 2013 2012
OPERATING ACTIVITIES
Net income ....................................................... $ 8 $ 98 $ 76
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation, amortization and accretion .............................. 227 264 216
Stock-based compensation ......................................... 150 164 170
Acquisition-related contingent consideration .......................... (35) (64) 11
Net (gains) losses on investments and disposal of property and equipment . . . 2 (37) (12)
Non-cash restructuring charges ..................................... — 7 (6)
Change in assets and liabilities:
Receivables, net ............................................... (12) 56 (14)
Inventories ................................................... (13) 16 21
Other assets ................................................... (56) 15 (101)
Accounts payable .............................................. (18) (78) (50)
Accrued and other liabilities ...................................... (3) (106) 13
Deferred income taxes, net ....................................... 16 (7) (90)
Deferred net revenue (online-enabled games) ........................ 446 (4) 43
Net cash provided by operating activities ......................... 712 324 277
INVESTING ACTIVITIES
Capital expenditures ................................................ (97) (106) (172)
Proceeds from sale of property and equipment ........................... — — 26
Proceeds from sale of marketable equity securities ........................ — 72 —
Proceeds from maturities and sales of short-term investments ............... 401 459 526
Purchase of short-term investments .................................... (600) (414) (468)
Acquisition-related restricted cash ..................................... — 31 75
Acquisition of subsidiaries, net of cash acquired .......................... (5) (10) (676)
Net cash provided by (used in) investing activities .................. (301) 32 (689)
FINANCING ACTIVITIES
Proceeds from issuance of common stock ............................... 77 34 57
Proceeds from borrowings on convertible senior notes, net of issuance costs . . . — — 617
Proceeds from issuance of warrants .................................... — — 65
Purchase of convertible note hedge .................................... — — (107)
Payment of debt issuance costs ....................................... — (2) —
Excess tax benefit from stock-based compensation ........................ 13 — 4
Repurchase and retirement of common stock ............................ — (349) (471)
Acquisition-related contingent consideration payment ..................... (1) (28) (25)
Net cash provided by (used in) financing activities .................. 89 (345) 140
Effect of foreign exchange on cash and cash equivalents ..................... (10) (12) (14)
Increase (decrease) in cash and cash equivalents ............................ 490 (1) (286)
Beginning cash and cash equivalents ..................................... 1,292 1,293 1,579
Ending cash and cash equivalents ....................................... $1,782 $1,292 $1,293
Supplemental cash flow information:
Cash paid (refunded) during the year for income taxes, net ................. $ 29 $ 26 $ (4)
Cash paid during the year for interest .................................. $ 6 $ 5 $ 2
Non-cash investing activities:
Change in unrealized net gains on available-for-sale securities .............. $ — $ (46) $ (40)
Equity issued in connection with acquisition ............................. $ — $ — $ 87
See accompanying Notes to Consolidated Financial Statements.
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