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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.
Total rent expense for all operating leases was $155 million, $139 million and $96 million, for the fiscal years
ended March 31, 2013, 2012 and 2011, respectively.
Legal Proceedings
In June 2008, Geoffrey Pecover filed an antitrust class action in the United States District Court for the Northern
District of California, alleging that EA obtained an illegal monopoly in a discreet antitrust market that consists of
"league-branded football simulation video games" by bidding for, and winning, exclusive licenses with the NFL,
Collegiate Licensing Company and Arena Football League. In December 2010, the district court granted the
plaintiffs' request to certify a class of plaintiffs consisting of all consumers who purchased EA's Madden NFL,
NCAA Football or Arena Football video games after 2005. In May 2012, the parties reached a settlement in
principle to resolve all claims related to this action. As a result, we recognized a $27 million accrual in the fourth
quarter of fiscal 2012 associated with the potential settlement. In July 2012, the plaintiffs filed a motion with the
court to approve the settlement. On October 5, 2012, the court granted its preliminary approval of the settlement
and held a hearing to consider the court's final approval of the settlement for February 7, 2013. As of the date of
this filing, the Court has not issued an order granting its final approval of the settlement, although the Company
expects that the Court will do so.
In March 2011, Robin Antonick filed a complaint in the United States District Court for the Northern District of
California, alleging that he wrote the source code for the original John Madden Football game published by EA
in 1988 and that EA used certain parts of that source code in later editions in the Madden franchise without
compensating him. Mr. Antonick seeks compensatory damages in the amount of almost $6 million, plus
approximately $10 million in prejudgment interest, in addition to punitive damages and disgorgement of profits.
We believe that there is no merit to Mr. Antonick's claims. We further believe the likelihood of a judgment
against us that includes punitive damages or the disgorgement of profits is very remote. The trial is scheduled to
begin on June 17, 2013.
We are also subject to claims and litigation arising in the ordinary course of business. We do not believe that any
liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the
aggregate, would have a material adverse effect on our Consolidated Financial Statements.
As of March 31, 2013 and 2012, we had 10,000,000 shares of preferred stock authorized but unissued. The rights,
preferences, and restrictions of the preferred stock may be designated by our Board of Directors without further
action by our stockholders.