Annual
Report
(c)
The change in fair value is reported as acquisition-related contingent consideration in our Consolidated
Statements of Operations.
(d)
During the fiscal year 2013, we made payments totaling $5 million to settle certain performance milestones
achieved in connection with two of our acquisitions. During the fourth quarter of fiscal year 2012, we made
a payment of $25 million to settle certain performance milestones achieved through December 31, 2011 in
connection with our acquisition of Playfish Limited ("Playfish").
(e)
During the fourth quarter of fiscal year 2012, we reclassified $25 million of contingent consideration in
connection with our acquisition of Playfish to other current liabilities in our Consolidated Balance Sheet as
the contingency was settled. This amount was paid during the second quarter of fiscal 2013.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
During fiscal year 2013, our assets that were measured and recorded at fair value on a nonrecurring basis and the
related impairments on those assets were as follows (in millions):
Fair Value Measurements Using
Net Carrying
Value as of
March 31, 2013
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total Impairments for
the Fiscal Year Ended
March 31, 2013
(Level 1)
(Level 2)
(Level 3)
Assets
Acquisition-related intangible assets . . . .
$4
$--
$--
$4
$39
Total impairments recorded for non-
recurring measurements on assets held
as of March 31, 2013 . . . . . . . . . . . . . .
$39
During fiscal year 2013, we became aware of facts and circumstances that indicated that the carrying value of
some of our acquisition-related intangible assets were not recoverable. We recognized impairment charges of
$34 million and $5 million in cost of revenue and amortization of intangibles, respectively, on our Consolidated
Statement of Operations. These impairment charges are included in depreciation, amortization, and accretion, net
on our Consolidated Statements of Cash Flows.
During fiscal year 2012, our assets that were measured and recorded at fair value on a nonrecurring basis and the
related impairments on those assets were as follows (in millions):
Fair Value Measurements Using
Net Carrying
Value as of
March 31, 2012
Quoted Prices in
Active Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Total Impairments for
the Fiscal Year Ended
March 31, 2012
(Level 1)
(Level 2)
(Level 3)
Assets
Acquisition-related intangible assets . . . .
$--
$--
$--
$--
$12
Total impairments recorded for non-
recurring measurements on assets held
as of March 31, 2012 . . . . . . . . . . . . . .
$12
During fiscal year 2012, we became aware of facts and circumstances that indicated that the carrying value of
some of our acquisition-related intangible assets were not recoverable. We recognized impairment charges of
$12 million in cost of revenue on our Consolidated Statement of Operations. These impairment charges are
included in depreciation, amortization, and accretion, net on our Consolidated Statements of Cash Flows.
77