Electronic Arts 2015 Annual Report Download - page 75

Annual Report
Internationally, we conduct business through our international headquarters in Switzerland and have wholly-
owned subsidiaries throughout the world, including offices in Europe, Australia, Asia and Latin America.
Our North America net revenue was $1,956 million in fiscal year 2015, as compared to $1,510 million in fiscal
year 2014 and $1,701 million in fiscal year 2013. International net revenue (revenue derived from countries other
than Canada and the United States) increased by 24 percent to $2,559 million, or 57 percent of total net revenue
in fiscal year 2015, as compared to $2,065 million, or 58 percent of total net revenue in fiscal year 2014 and as
compared to $2,096 million, or 55 percent of total net revenue in fiscal year 2013. We attribute net revenue from
external customers to individual countries based on the location of the legal entity that sells the products and/or
services. Note that revenue attributed to the legal entity that makes the sale is often not the country where the
consumer resides. For example, revenue generated by our Swiss legal entities includes digital revenue from
consumers who reside outside of Switzerland, including consumers who reside outside of Europe. Revenue
generated by our Swiss legal entities during fiscal years 2015, 2014, and 2013 represents $1,462 million, $1,171
million and $885 million or 32 percent, 33 percent and 23 percent of our total net revenue, respectively. Revenue
generated in the United States represents over 99 percent of our total North America net revenue. There were no
other countries with net revenue greater than 10 percent of total net revenue. The amounts of net revenue and
long-lived assets attributable to each of our geographic regions for each of the last three fiscal years are set forth
in Note 18 of the Notes to Consolidated Financial Statements included in Item 8 of this report.
In fiscal year 2015, revenue from sales of FIFA 15 represented approximately 15 percent of our total net revenue.
In fiscal year 2014, revenue from sales of FIFA 14 represented approximately 15 percent of our total net revenue.
In fiscal year 2013, revenue from sales of FIFA 13 represented approximately 17 percent of our total net revenue.
For the fiscal years ended March 31, 2015, 2014 and 2013, research and development expenses were $1,094
million, $1,125 million and $1,153 million, respectively.
Information regarding financial data is set forth in Part II, Item 6 of this Form 10-K under the heading “Selected
Financial Data,” and information regarding certain risks attendant to our foreign operations is set forth in Part II,
Item 7 of this Form 10-K under the heading “Financial Results” and “Trends in Our Business”.
Our Operating Structure
Our studios and development teams are organized around three divisions: EA Studios, EA Mobile, and Maxis.
Each division operates globally with support from our Global Publishing and Marketing organizations, as well as
our Digital Platform team.
EA Studios
EA Studios is home to the largest number of our studios and development teams and is responsible for
developing games and related content and services across an expansive range of game categories. Our franchises
include FIFA, Madden NFL, Need for Speed, Battlefield, Mass Effect, Star Wars and Dragon Age. Our largest
studios within the EA Studios organization are located in the United States, Canada and Sweden.
The diverse studios within the EA Studios organization have the goal of operating as one collaborative
organization through the use of common technologies and shared development frameworks. We also contract
with external game developers for development services or to establish publishing and distribution relationships,
such as the one we have with Respawn Entertainment for Titanfall.
EA Mobile
Our EA Mobile organization develops and publishes interactive games for play on mobile phones and tablets, as
well as certain casual games for the PC. The Mobile organization’s brand portfolio includes wholly owned
properties such as Plants vs. Zombies, Real Racing and Bejeweled, as well licensed intellectual properties such as
Tetris and The Simpsons. The EA Mobile organization also manages our Pogo online service, through which we
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