ended March 31, 2011, we realized a gain of $28 million, net of costs to sell, from the sale of our investment in
compared to fiscal year 2011, primarily due to (1) a $19 million increase in interest expense due to our 0.75%
Convertible Senior Notes due 2016, which were issued in July 2011 and (2) an $8 million increase in foreign
currency transaction losses as compared to the same period in the prior year.
fiscal year 2011 was a tax benefit of 1.1 percent. In fiscal year 2012 we recorded approximately $58 million of
additional net deferred tax liabilities related to the PopCap and KlickNation acquisitions. These additional
deferred tax liabilities create a new source of taxable income, thereby requiring us to release a portion of our
deferred tax asset valuation allowance with a related reduction in income tax expense of $58 million. In addition,
during the three months ended March 31, 2012, we recorded $48 million of additional tax benefits related to the
expiration of statutes of limitations in non-U.S. tax jurisdictions.
35.0 percent as a result of the utilization of U.S. deferred tax assets subject to a valuation allowance and non-U.S.
profits subject to a reduced or zero tax rate, partially offset by non-deductible stock-based compensation. In
addition, the fiscal year 2012 effective tax rate is impacted by tax benefits related to the expiration of statutes of
limitations and the resolution of examinations by taxing authorities, as well as a reduction in the U.S. valuation
allowance related to the PopCap and KlickNation acquisitions. In fiscal year 2011, the effective tax rate differs
from the statutory rate of 35.0 percent primarily due to U.S. losses for which no benefit is recognized, non-U.S.
losses with a reduced or zero tax benefit and non-deductible stock-based compensation expenses, partially offset
by tax benefits related to the expiration of statutes of limitations and resolution of examination by taxing
creates new disclosure requirements about the nature of an entity's rights of offset and related arrangements
associated with its financial instruments and derivative instruments. In January 2013, the FASB issued