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Annual
Report
LIQUIDITY AND CAPITAL RESOURCES
As of
March 31,
(In millions)
2013
2012
Decrease
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,292
$1,293
$
(1)
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
388
437
(49)
Marketable equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
119
(119)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,680
$1,849
$(169)
Percentage of total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33%
34%
Year Ended
March 31,
(In millions)
2013
2012
Change
Cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 324
$ 277
$ 47
Cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
(689)
721
Cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(345)
140
(485)
Effect of foreign exchange on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . .
(12)
(14)
2
Net decrease in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(1)
$ (286)
$ 285
Changes in Cash Flow
Operating Activities.
Cash provided by operating activities increased $47 million during the fiscal year ended
March 31, 2013 as compared to the fiscal year ended March 31, 2012, primarily due to (1) a decrease in prepaid
royalty advances, (2) a decrease in royalty payments, and (3) a decrease in marketing and advertising spend as a
result of a decrease in the number of titles released as compared to the prior year. These decreases in cash
outflows were offset by an increase in personnel-related costs.
Investing Activities.
Cash provided by investing activities increased $721 million during the fiscal year ended
March 31, 2013, as compared to the fiscal year ended March 31, 2012, primarily driven by (1) a $666 million
decrease in cash used for acquisitions, the majority of which was used to fund our acquisition of PopCap during
the six months ended September 30, 2011, (2) proceeds of $72 million from the sale of our marketable equity
securities, (3) a decrease of $66 million in capital expenditures, and (4) a $54 million decrease in the amount of
short-term investments purchased in fiscal year 2013 as compared to fiscal year 2012. This was partially offset
by a $67 million decrease in proceeds from maturities and sales of short-term investments in fiscal year 2013 as
compared to fiscal year 2012.
Financing Activities.
Cash used in financing activities increased $485 million during the fiscal year ended
March 31, 2013, as compared to the fiscal year ended March 31, 2012 primarily due to (1) $617 million in
proceeds received from the sale of our 0.75% Convertible Senior Notes due 2016, net of issuance costs that
occurred in fiscal year 2012, (2) $65 million in proceeds received from the issuance of Warrants in connection
with the Notes in the fiscal year 2012, and (3) a $23 million decrease in proceeds received from issuance of
common stock in connection with our Employee Stock Purchase Plan during fiscal year 2013 as compared to
fiscal year 2012. This was partially offset by (1) a $122 million decrease in the repurchase and retirement of
common stock during fiscal year 2013 as compared to fiscal year 2012, and (2) $107 million paid for the
purchase of the Convertible Note Hedge during fiscal year 2012.
Short-term Investments and Marketable Equity Securities
Due to our mix of fixed and variable rate securities, our short-term investment portfolio is susceptible to changes
in short-term interest rates. As of March 31, 2013, our short-term investments had gross unrealized gains of
$1 million, or less than 1 percent of the total in short-term investments, and gross unrealized losses of less than
51