Electronic Arts 2014 Annual Report Download - page 146

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(c) The change in fair value is reported as acquisition-related contingent consideration in our Consolidated
Statements of Operations.
(d) During fiscal year 2014, we made payments totaling $4 million to settle certain performance milestones
achieved in connection with one of our acquisitions. During fiscal year 2013, we made payments totaling
$5 million to settle certain performance milestones achieved in connection with two of our acquisitions.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
During fiscal year 2014, our assets that were measured and recorded at fair value on a nonrecurring basis and the
related impairments on those assets were as follows (in millions):
Fair Value Measurements Using
Net Carrying
Value as of
March 31, 2014
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Total Impairments for
the Fiscal Year Ended
March 31, 2014(Level 1) (Level 2) (Level 3)
Assets
Royalty-based asset ................. $— $— $— $— $17
Total impairments recorded for non-
recurring measurements on assets held
as of March 31, 2014 .............. $17
During fiscal year 2014, we became aware of facts and circumstances that indicated that the carrying value of
one of our royalty-based assets was not recoverable. The impairment charges are included in cost of revenue on
our Consolidated Statements of Operations.
During fiscal year 2013, our assets that were measured and recorded at fair value on a nonrecurring basis and the
related impairments on those assets were as follows (in millions):
Fair Value Measurements Using
Net Carrying
Value as of
March 31, 2013
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs Total Impairments for
the Fiscal Year Ended
March 31, 2013(Level 1) (Level 2) (Level 3)
Assets
Acquisition-related intangible assets .... $4 $— $— $4 $39
Total impairments recorded for non-
recurring measurements on assets held
as of March 31, 2013 .............. $39
During fiscal year 2013, we became aware of facts and circumstances that indicated that the carrying value of
some of our acquisition-related intangible assets were not recoverable. We recognized impairment charges of $34
million and $5 million in cost of revenue and amortization of intangibles, respectively, on our Consolidated
Statements of Operations.
(3) FINANCIAL INSTRUMENTS
Cash and Cash Equivalents
As of March 31, 2014 and 2013, our cash and cash equivalents were $1,782 million and $1,292 million,
respectively. Cash equivalents were valued at their carrying amounts as they approximate fair value due to the
short maturities of these financial instruments.
76