Annual
Report
ELECTRONIC ARTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
(In millions)
2013
2012
2011
OPERATING ACTIVITIES
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
98
$
76
$ (276)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Depreciation, amortization and accretion, net . . . . . . . . . . . . . . . . . . . . . . . . . .
264
216
180
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
164
170
176
Acquisition-related contingent consideration . . . . . . . . . . . . . . . . . . . . . . . . . .
(64)
11
(17)
Net gains on investments and sale of property and equipment . . . . . . . . . . . . .
(37)
(12)
(25)
Non-cash restructuring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
(6)
1
Change in assets and liabilities:
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
(14)
(122)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
21
25
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
(101)
5
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(78)
(50)
114
Accrued and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(106)
13
(4)
Deferred income taxes, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)
(90)
24
Deferred net revenue (online-enabled games) . . . . . . . . . . . . . . . . . . . . . . . .
(4)
43
239
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . .
324
277
320
INVESTING ACTIVITIES
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(106)
(172)
(59)
Proceeds from sale of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
26
--
Proceeds from sale of marketable equity securities . . . . . . . . . . . . . . . . . . . . . . . .
72
--
132
Proceeds from maturities and sales of short-term investments . . . . . . . . . . . . . . .
459
526
442
Purchase of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(414)
(468)
(514)
Acquisition-related restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
75
--
Acquisition of subsidiaries, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . .
(10)
(676)
(16)
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . .
32
(689)
(15)
FINANCING ACTIVITIES
Proceeds from issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
57
34
Proceeds from borrowings on convertible senior notes, net of issuance costs . . .
--
617
--
Proceeds from issuance of warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
65
--
Purchase of convertible note hedge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
(107)
--
Payment of debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)
--
--
Excess tax benefit from stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . .
--
4
1
Repurchase and retirement of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(349)
(471)
(58)
Acquisition-related contingent consideration payment . . . . . . . . . . . . . . . . . . . . .
(28)
(25)
--
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . .
(345)
140
(23)
Effect of foreign exchange on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . .
(12)
(14)
24
Increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1)
(286)
306
Beginning cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,293
1,579
1,273
Ending cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,292
$1,293
$1,579
Supplemental cash flow information:
Cash paid (refunded) during the year for income taxes, net . . . . . . . . . . . . . . . . .
$
26
$
(4) $
21
Cash paid during the year for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
5
$
2
$
--
Non-cash investing activities:
Change in unrealized gains on available-for-sale securities, net of taxes . . . . . . .
$
(46) $
(40) $
(4)
Equity issued in connection with acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
--
$
87
$
--
See accompanying Notes to Consolidated Financial Statements.
65