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Deferred net revenue (other) includes the deferral of subscription revenue, deferrals related to our Switzerland
distribution business, advertising revenue, licensing arrangements and other revenue for which revenue
recognition criteria has not been met.
Deferred Net Revenue (Online-Enabled Games)
Deferred net revenue (online-enabled games) was $1,044 million and $1,048 million as of March 31, 2013 and
2012, respectively. Deferred net revenue (online-enabled games) generally includes the unrecognized revenue
from bundled sales of certain online-enabled games for which we do not have VSOE for the obligation to provide
unspecified updates. We recognize revenue from the sales of online-enabled games for which we do not have
VSOE for the unspecified updates on a straight-line basis, generally over an estimated six-month period
beginning in the month after shipment. However, we expense the cost of revenue related to these transactions
during the period in which the product is delivered (rather than on a deferred basis).
(10) INCOME TAXES
The components of our income (loss) before provision for (benefit from) income taxes for the fiscal years ended
March 31, 2013, 2012 and 2011 are as follows (in millions):
Year Ended March 31,
2013
2012
2011
Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ (15)
$(51)
$(189)
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
154
69
(90)
Income (loss) before provision for (benefit from) income taxes . . . . . . . . . . . . .
$139
$ 18
$(279)
Provision for (benefit from) income taxes for the fiscal years ended March 31, 2013, 2012 and 2011 consisted of
(in millions):
Current
Deferred
Total
Year Ended March 31, 2013
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ --
$ 5
$ 5
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
--
1
1
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
(4)
35
$ 39
$ 2
$ 41
Year Ended March 31, 2012
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 36
$(89)
$(53)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
(2)
1
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11)
5
(6)
$ 28
$(86)
$(58)
Year Ended March 31, 2011
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$(23)
$ 2
$(21)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6)
3
(3)
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
(2)
21
$ (6)
$ 3
$ (3)
88