Annual
Report
to our Consolidated Balance Sheets and Statements of Operations. The results of operations and the estimated
fair value of the acquired assets and assumed liabilities have been included in our Consolidated Financial
Statements since the date of the acquisitions. See Note 6 for information regarding goodwill and acquisition-
related intangible assets. Pro forma results of operations have not been presented because the effect of the
acquisitions was not material to our Consolidated Statements of Operations.
Fiscal Year 2011 Acquisition
In October 2010, we acquired all of the outstanding shares of Chillingo in cash. Chillingo publishes games and
software for various mobile platforms. This acquisition did not have a significant impact on our Consolidated
Balance Sheets and Statements of Operations.
(6) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET
The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2013 are as follows (in
millions):
As of
March 31, 2012
Activity
Effects of Foreign
Currency
Translation
As of
March 31, 2013
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,086
$ 3
$--
$2,089
Accumulated impairment . . . . . . . . . . . . . . . . . . . . . . .
(368)
--
--
(368)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,718
$ 3
$--
$1,721
The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2012 are as follows (in
millions):
As of
March 31, 2011
Activity
Effects of Foreign
Currency
Translation
As of
March 31, 2012
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,478
$610
$ (2)
$2,086
Accumulated impairment . . . . . . . . . . . . . . . . . . . . . . .
(368)
--
--
(368)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,110
$610
$ (2)
$1,718
Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible
and intangible assets. The factors that contributed to the recognition of goodwill included securing buyer-specific
synergies that increase revenue and profits and are not otherwise available to a marketplace participant, acquiring
a talented workforce, and cost saving opportunities. Goodwill is not amortized, but rather subject to at least an
annual assessment for impairment by applying a fair value-based test. Our goodwill is fully attributed to the EA
Labels segment.
Acquisition-related intangibles, consisted of the following (in millions):
As of March 31, 2013
As of March 31, 2012
Gross
Carrying
Amount
Accumulated
Amortization
Acquisition-
Related
Intangibles, Net
Gross
Carrying
Amount
Accumulated
Amortization
Acquisition-
Related
Intangibles, Net
Developed and core technology . . . . . . . . . $527
$(324)
$203
$518
$(229)
$289
Trade names and trademarks . . . . . . . . . . .
130
(99)
31
131
(84)
47
Registered user base and other intangibles . .
87
(84)
3
90
(80)
10
Carrier contracts and related . . . . . . . . . . . .
85
(73)
12
85
(67)
18
In-process research and development . . . . .
4
--
4
5
--
5
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $833
$(580)
$253
$829
$(460)
$369
83