Electronic Arts 2014 Annual Report Download - page 154

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Amortization of intangibles and impairment charges recognized for our acquisition-related intangible assets for
the fiscal years ended March 31, 2014, 2013 and 2012 are classified in the Consolidated Statement of Operations
as follows (in millions):
Year Ended March 31,
2014 2013 2012
Cost of product ..................................................... $33 $ 55 $35
Cost of service and other ............................................. 27 38 17
Operating expenses .................................................. 16 30 43
Total ........................................................... $76 $123 $95
Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their
estimated useful lives or the agreement terms, typically from 2 to 14 years. As of March 31, 2014 and 2013, the
weighted-average remaining useful life for acquisition-related intangible assets was approximately 3.2 years and
3.9 years for each period, respectively.
As of March 31, 2014, future amortization of acquisition-related intangibles that will be recorded in the
Consolidated Statement of Operations is estimated as follows (in millions):
Fiscal Year Ending March 31,
2015 ................................................................................. $ 65
2016 ................................................................................. 53
2017 ................................................................................. 32
2018 ................................................................................. 12
2019 ................................................................................. 8
Thereafter ............................................................................ 7
Total .............................................................................. $177
(8) RESTRUCTURING AND OTHER CHARGES
Restructuring and other restructuring plan-related information as of March 31, 2014 was as follows (in millions):
Fiscal 2013
Restructuring
Fiscal 2011
Restructuring
Other Restructurings
and Reorganization
Workforce
Facilities-
related Other Workforce Other
Facilities-
related Other Total
Balances as of March 31, 2011.... $— $— $— $ 3 $101 $ 8 $ 5 $117
Charges to operations ......... — — — (1) 21 (12) 8 16
Charges settled in cash ........ — — — (2) (47) 7 (13) (55)
Balances as of March 31, 2012.... — — — — 75 3 — 78
Charges to operations ......... 10 3 9 — 6 (1) — 27
Charges settled in cash ........ (10) — (1) — (24) (1) — (36)
Charges settled in non-cash .... — (1) (7) — — 1 — (7)
Balances as of March 31, 2013.... — 2 1 — 57 2 — 62
Charges to operations ......... — 1 — — (2) — — (1)
Charges settled in cash ........ — (2) — — (8) (1) — (11)
Balances as of March 31, 2014.... $— $ 1 $ 1 $— $ 47 $ 1 $— $ 50
Fiscal 2013 Restructuring
In fiscal year 2013, we announced a restructuring plan to align our cost structure with our ongoing digital
transformation. Under this plan, we reduced our workforce, terminated licensing agreements, and consolidated or
closed various facilities. We completed all actions under this restructuring plan during fiscal year 2013.
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