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Included in the $17 million coupon interest on the 0.75% Convertible Senior Notes due 2016 is $1 million
of accrued interest recognized as of March 31, 2013. We will be obligated to pay the $632.5 million
principal amount of the 0.75% Convertible Senior Notes due 2016 in cash and any excess conversion value
in shares of our common stock upon redemption of the Notes at maturity on July 15, 2016 or upon earlier
redemption. The $632.5 million principal amount excludes $74 million of unamortized discount of the
liability component. See Note 11 for additional information regarding our 0.75% Convertible Senior Notes
due 2016.
See Note 7 for additional information regarding recognized commitments resulting from our restructuring
plans. Lease commitments have not been reduced for approximately $6 million due in the future from third
parties under non-cancelable sub-leases.
Subsequent to March 31, 2013, we entered into various licensor and development agreements with third parties,
which contingently commits us to pay up to $163 million at various dates through fiscal year 2020.
The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective
fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our
Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates
the amounts are contractually due as of March 31, 2013; however, certain payment obligations may be
accelerated depending on the performance of our operating results.
In addition to what is included in the table above, as of March 31, 2013, we had a liability for unrecognized tax
benefits and an accrual for the payment of related interest totaling $260 million, of which approximately
$46 million is offset by prior cash deposits to tax authorities for issues pending resolution. For the remaining
liability, we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority
will occur.
Also, in addition to what is included in the table above as of March 31, 2013, primarily in connection with our
PopCap, KlickNation, and Chillingo acquisitions, we may be required to pay an additional $566 million of cash
consideration based upon the achievement of certain performance milestones through March 31, 2015. As of
March 31, 2013, we have accrued $43 million of contingent consideration on our Consolidated Balance Sheet
representing the estimated fair value of the contingent consideration. We have not paid any earn-out to date for
the PopCap acquisition.
Lease Commitments
As of March 31, 2013, we leased certain of our current facilities, furniture and equipment under non-cancelable
operating lease agreements. We were required to pay property taxes, insurance and normal maintenance costs for
certain of these facilities and any increases over the base year of these expenses on the remainder of our facilities.
Director Indemnity Agreements
We entered into indemnification agreements with each of the members of our Board of Directors at the time they
joined the Board to indemnify them to the extent permitted by law against any and all liabilities, costs, expenses,
amounts paid in settlement and damages incurred by the Directors as a result of any lawsuit, or any judicial,
administrative or investigative proceeding in which the Directors are sued or charged as a result of their service
as members of our Board of Directors.
We believe the impact of inflation on our results of operations has not been significant in any of the past three
fiscal years.