background image
Annual
Report
Marketing and Sales
Marketing and sales expenses consist of personnel-related costs, related overhead costs, advertising, marketing
and promotional expenses, net of qualified advertising cost reimbursements from third parties.
Marketing and sales expenses for fiscal years 2013 and 2012 were as follows (in millions):
March 31,
2013
% of Net
Revenue
March 31,
2012
% of Net
Revenue
$ Change
% Change
$788
21%
$883
21%
$(95)
(11%)
Marketing and sales expenses decreased by $95 million, or 11 percent, in fiscal year 2013, as compared to fiscal
year 2012. The decrease was primarily due to (1) a $111 million decrease in advertising and promotional
spending on our franchises due to fewer frontline title releases as compared to the prior year, (2) a $7 million
decrease in contracted services, and (3) a $7 million decrease in incentive-based compensation expense. This was
partially offset by a $29 million increase in personnel-related costs.
Marketing and sales expenses included vendor reimbursements for advertising expenses of $45 million and $39
million in fiscal years 2013 and 2012, respectively.
General and Administrative
General and administrative expenses consist of personnel and related expenses of executive and administrative
staff, related overhead costs, fees for professional services such as legal and accounting, and allowances for
doubtful accounts.
General and administrative expenses for fiscal years 2013 and 2012 were as follows (in millions):
March 31,
2013
% of Net
Revenue
March 31,
2012
% of Net
Revenue
$ Change
% Change
$354
9%
$377
9%
$(23)
(6%)
General and administrative expenses decreased by $23 million, or 6 percent, in fiscal year 2013, as compared to
fiscal year 2012. The decrease was primarily due to (1) a $27 million accrual related to a settlement of a litigation
matter recorded in fiscal year 2012, (2) a $12 million decrease in contracted services primarily related to
litigation matters, and (3) a $10 million decrease in incentive-based compensation expense. This was partially
offset by an increase in personnel-related costs for $26 million.
Acquisition-Related Contingent Consideration
Acquisition-related contingent consideration for fiscal years 2013 and 2012 were as follows (in millions):
March 31,
2013
% of Net
Revenue
March 31,
2012
% of Net
Revenue
$ Change
% Change
$(64)
(2%)
$11
--%
$(75)
(682%)
Acquisition-related contingent consideration expense decreased by $75 million, or 682 percent, in fiscal year
2013, as compared to fiscal year 2012, primarily resulting from decreases in our accrual related to our PopCap
acquisition.
Amortization of Intangibles
Amortization of intangibles for fiscal years 2013 and 2012 were as follows (in millions):
March 31,
2013
% of Net
Revenue
March 31,
2012
% of Net
Revenue
$ Change
% Change
$30
1%
$43
1%
$(13)
(30%)
41