Electronic Arts 2015 Annual Report Download - page 117
Download and view the complete annual report
Please find page 117 of the 2015 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125 -
126 -
127 -
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
 |
 |
Annual Report
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.
Certain taxable temporary differences that are not expected to reverse during the carry forward periods permitted
by tax law have not been considered as a source of future taxable income that is available to realize the benefit of
deferred tax assets.
The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, 2013. The Act
contains a number of provisions including, most notably, an extension of the research tax credit through
December 31, 2013. The Act did not have a material impact on our effective tax rate for fiscal 2013 due to the
effect of the valuation allowance on our deferred tax assets.
Historically, we have considered undistributed earnings of our foreign subsidiaries to be indefinitely reinvested
outside of the United States and, accordingly, no U.S. taxes have been provided thereon. In connection with a
review of our cash position including potential future cash needs for stock repurchases and debt retirement, we
made a one-time repatriation of $700 million from certain of our wholly-owned subsidiaries during the three
months ended March 31, 2014. This repatriation did not have a material impact on our effective tax rate for fiscal
2014 due to the deferred tax valuation allowance.
47