--- ticker: EA company: EA filing_type: 10-K year_current: 2024 year_prior: 2023 risks_added: 19 risks_removed: 4 risks_modified: 55 risks_unchanged: 66 source: SEC EDGAR url: https://riskdiff.com/ea/2024-vs-2023/ markdown_url: https://riskdiff.com/ea/2024-vs-2023/index.md generated: 2026-06-01 --- # EA: 10-K Risk Factor Changes 2024 vs 2023 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-06-01 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 19 | | Risks removed | 4 | | Risks modified | 55 | | Unchanged | 66 | --- ## New in Current Filing: Increase/(Decrease) For the comparison of fiscal year 2023 to fiscal year 2022, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2023, filed with the SEC on May 24, 2023 under the subheading "Liquidity and Capital Resources." --- ## New in Current Filing: Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update expand annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. This update is effective for our annual report for fiscal year 2025, and interim periods thereafter, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the timing of adoption and impact of this ASU on our Consolidated Financial Statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures. The amendments further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This ASU is effective for our annual report for fiscal year 2026, with early adoption permitted, and should be applied either prospectively or retrospectively. We are currently evaluating the timing of adoption and impact of this ASU on our Consolidated Financial Statements and related disclosures. 39 39 39 Table of Contents Table of Contents --- ## New in Current Filing: Fiscal 2024 Restructuring In fiscal year 2024, we announced a restructuring plan (the "2024 Restructuring Plan") focused on aligning our portfolio, investments, and resources in support of our strategic priorities and growth initiatives. This plan reflects actions driven by portfolio rationalization, including costs associated with licensor commitments, as well as reductions in real estate and headcount. The actions associated with this plan are expected to be substantially completed by December 31, 2024. Under this plan, we estimate that we will incur approximately $125 million to $165 million in charges, consisting primarily of: •$50 million to $65 million associated with office space reductions; •$40 million to $55 million related to employee severance and employee-related costs; and •$35 million to $45 million in costs associated with licensor commitments. --- ## New in Current Filing: Performance-Based Restricted Stock Units Our performance-based restricted stock units vest upon the achievement of pre-determined performance-based milestones, including, but not limited to, management reporting milestones of net bookings and operating income metrics, as well as service conditions. If these performance-based milestones are not met but service conditions are met, the performance-based restricted stock units will not vest, in which case any compensation expense we have recognized to date will be reversed. Generally, the measurement periods of our performance-based restricted stock units are 3 years, with awards vesting after each annual measurement period or cliff-vesting after the completion of the total aggregate measurement period. Each quarter, we update our assessment of the probability that the performance milestones will be achieved. We amortize the fair values of performance-based restricted stock units over the requisite service period. The performance-based restricted stock units contain threshold, target and maximum milestones for each performance-based milestone. The number of shares of common stock to be issued at vesting will range from zero to 200 percent of the target number of performance-based restricted stock units attributable to each performance-based milestone based on the company's performance as compared to these threshold, target and maximum performance-based milestones. Each performance-based milestone is weighted evenly and the number of shares that vest based on each performance-based milestone is independent from the other. The following table summarizes our performance-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the fiscal year ended March 31, 2024: Performance-Based RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValueOutstanding as of March 31, 2023557 $130.03 Granted682 128.66 Vested(73)127.98 Forfeited or cancelled(330)128.74 Outstanding as of March 31, 2024836 $129.60 Outstanding as of March 31, 2023 Outstanding as of March 31, 2024 The weighted-average grant date fair values of performance-based restricted stock units granted during fiscal years 2024, 2023, and 2022 were $128.66, $127.98, and $140.48 respectively. The fair values of performance-based restricted stock units that vested during fiscal years 2024, 2023, and 2022 were $11 million, $9 million, and $38 million respectively. 68 68 68 Table of Contents Table of Contents --- ## New in Current Filing: Market-Based Restricted Stock Units Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and service conditions. If these market conditions are not met but service conditions are met, the market-based restricted stock units will not vest; however, any compensation expense we have recognized to date will not be reversed. The number of shares of common stock to be issued at vesting will range from zero to 200 percent of the target number of market-based restricted stock units based on our total stockholder return ("TSR") relative to the performance of companies in the Nasdaq-100 Index for each measurement period, over a three-year period. The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the year ended March 31, 2024:Market-BasedRestricted StockUnits(in thousands)Weighted-Average GrantDate Fair ValueOutstanding as of March 31, 2023822 $149.98 Granted143 152.92 Vested(50)125.62 Forfeited or cancelled(561)141.20 Outstanding as of March 31, 2024354 $168.53 Outstanding as of March 31, 2023 Outstanding as of March 31, 2024 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2024, 2023, and 2022 were $152.92, $176.70, and $170.44, respectively. The fair values of market-based restricted stock units that vested during fiscal years 2024, 2023, and 2022 were $4 million, $12 million, and $37 million, respectively. ESPP Pursuant to our ESPP, eligible employees may authorize payroll deductions of between 2 percent and 10 percent of their compensation to purchase shares of common stock at 85 percent of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period. The following table summarizes our ESPP activity for fiscal years ended March 31, 2024, 2023, and 2022: Shares Issued (in millions)Exercise Prices for Purchase RightsWeighted-Average Fair Values of Purchase RightsFiscal Year 20220.6 $113.39 - $118.14$35.94 Fiscal Year 20230.7 $96.34 - $111.86$33.91 Fiscal Year 20240.8 $94.96 - $102.58$30.82 Fiscal Year 2022 $113.39 - $118.14 Fiscal Year 2023 $96.34 - $111.86 Fiscal Year 2024 $94.96 - $102.58 The fair values were estimated on the date of grant using the Black-Scholes valuation model. We issue new common stock out of the ESPP's pool of authorized shares. As of March 31, 2024, 2.8 million shares were available for grant under our ESPP. 69 69 69 Table of Contents Table of Contents --- ## New in Current Filing: Stock-Based Compensation Expense The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 202420232022Cost of revenue$8 $7 $6 Research and development418 367 356 Marketing and sales52 59 54 General and administrative106 115 112 Stock-based compensation expense$584 $548 $528 During the fiscal years ended March 31, 2024, 2023, and 2022, we recognized $79 million, $72 million, and $68 million, respectively, of deferred income tax benefit related to our stock-based compensation expense. As of March 31, 2024, our total unrecognized compensation cost related to stock options, restricted stock units, market-based restricted stock units, and performance-based restricted stock units was $734 million and is expected to be recognized over a weighted-average service period of 1.7 years. Of the $734 million of unrecognized compensation cost, $710 million relates to restricted stock units, $12 million relates to market-based restricted stock units, and $12 million relates to performance-based restricted stock units. --- ## New in Current Filing: Deferred Compensation Plan We have a Deferred Compensation Plan ("DCP") for the benefit of a select group of management or highly compensated employees and directors, which is unfunded and intended to be a plan that is not qualified within the meaning of section 401(a) of the Internal Revenue Code. The DCP permits the deferral of the annual base salary and/or director cash compensation up to a maximum amount. The deferrals are held in a separate trust, which has been established by us to administer the DCP. The trust is a grantor trust and the specific terms of the trust agreement provide that the assets of the trust are available to satisfy the claims of general creditors in the event of our insolvency. The assets held by the trust are classified as trading securities and are held at fair value on our Consolidated Balance Sheets. The assets and liabilities of the DCP are presented in other assets and other liabilities on our Consolidated Balance Sheets, respectively, with changes in the fair value of the assets and in the deferred compensation liability recognized as compensation expense. The estimated fair value of the assets was $30 million and $23 million as of March 31, 2024 and 2023, respectively. As of March 31, 2024 and 2023, $31 million and $24 million were recorded, respectively, to recognize undistributed deferred compensation due to employees. --- ## New in Current Filing: 401(k) Plan, Registered Retirement Savings Plan and ITP Plan We have a 401(k) plan covering substantially all of our U.S. employees, a Registered Retirement Savings Plan covering substantially all of our Canadian employees, and an ITP pension plan covering substantially all our Swedish employees. These plans may permit us to make discretionary contributions to employees' accounts based on our financial performance. We contributed an aggregate of $39 million, $42 million, and $41 million to these plans in fiscal years 2024, 2023, and 2022, respectively. --- ## New in Current Filing: Stock Repurchase Program In November 2020, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. We completed repurchases under the November 2020 program in October 2022. In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. This program was terminated on May 8, 2024 and was superseded and replaced by a new stock repurchase program approved in May 2024. 70 70 70 Table of Contents Table of Contents In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock. This program supersedes and replaces the August 2022 program and expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. We are actively repurchasing shares under this program. The following table summarizes total shares repurchased during fiscal years 2024, 2023, and 2022: November 2020 ProgramAugust 2022 ProgramTotal(In millions)SharesAmountSharesAmount(a)SharesAmountFiscal Year 20229.5 $1,300 - $ - 9.5 $1,300 Fiscal Year 20235.1 $650 5.3 $645 10.4 $1,295 Fiscal Year 2024 - $ - 10.0 $1,300 10.0 $1,300 (a)Amount excludes excise taxes. Accrued excise taxes are included in accrued and other current liabilities and additional paid-in capital on the Consolidated Balance Sheets. Amount(a) Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 (a)Amount excludes excise taxes. Accrued excise taxes are included in accrued and other current liabilities and additional paid-in capital on the Consolidated Balance Sheets. 71 71 71 Table of Contents Table of Contents --- ## New in Current Filing: (16) INTEREST AND OTHER INCOME (EXPENSE), NET Interest and other income (expense), net, for the fiscal years ended March 31, 2024, 2023, and 2022 consisted of (in millions): Year Ended March 31, 202420232022Interest expense$(58)$(58)$(58)Interest income126 49 4 Net gain (loss) on foreign currency transactions(10)31 (22)Net gain (loss) on foreign currency forward contracts12 (29)21 Other income (expense), net1 1 7 Interest and other income (expense), net$71 $(6)$(48) 72 72 72 Table of Contents Table of Contents --- ## New in Current Filing: (17) EARNINGS PER SHARE The following table summarizes the computations of basic earnings per share ("Basic EPS") and diluted earnings per share ("Diluted EPS"). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and ESPP purchase rights using the treasury stock method. Year Ended March 31,(In millions, except per share amounts)202420232022Net income$1,273 $802 $789 Shares used to compute earnings per share:Weighted-average common stock outstanding - basic270 277 284 Dilutive potential common shares related to stock award plans2 1 2 Weighted-average common stock outstanding - diluted272 278 286 Earnings per share:Basic$4.71 $2.90 $2.78 Diluted$4.68 $2.88 $2.76 Certain restricted stock units, market-based restricted stock units and performance-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. For the fiscal year ended March 31, 2024, one million such shares were excluded, and for the fiscal years ended March 31, 2023 and 2022, two million and one million such shares were excluded, respectively. 73 73 73 Table of Contents Table of Contents --- ## New in Current Filing: (18) SEGMENT AND REVENUE INFORMATION Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. Our CODM currently reviews total company operating results to assess overall performance and allocate resources. As of March 31, 2024, we have only one reportable segment, which represents our only operating segment. Information about our total net revenue by timing of recognition for the fiscal years ended March 31, 2024, 2023, and 2022 is presented below (in millions):Year Ended March 31,202420232022Net revenue by timing of recognitionRevenue recognized at a point in time$2,563 $2,389 $2,326 Revenue recognized over time4,999 5,037 4,665 Net revenue$7,562 $7,426 $6,991 Generally, performance obligations that are recognized upfront upon transfer of control are classified as revenue recognized at a point in time, while performance obligations that are recognized over either the estimated offering period, contractual term or subscription period as the services are provided are classified as revenue recognized over time. Revenue recognized at a point in time includes revenue allocated to the software license performance obligation. This also includes a portion of revenue from the licensing of software to third-parties. Revenue recognized over time includes service revenue allocated to the future update rights and the online hosting performance obligations. This also includes revenue recognized from third parties that publish games and services under a license to certain of our intellectual property assets and service revenue allocated to the future update rights from licensing of software to third-parties, online-hosted services such as our Ultimate Team game mode, and subscription services. Information about our total net revenue by composition for the fiscal years ended March 31, 2024, 2023, and 2022 is presented below (in millions): Year Ended March 31, 202420232022Net revenue by compositionFull game downloads$1,343 $1,262 $1,282 Packaged goods672 675 711 Full game2,015 1,937 1,993 Live services and other5,547 5,489 4,998 Net revenue$7,562 $7,426 $6,991 Live services and other Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily includes revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from software that is sold physically through traditional channels such as brick and mortar retailers. Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. 74 74 74 Table of Contents Table of Contents Information about our total net revenue by platform for the fiscal years ended March 31, 2024, 2023, and 2022 is presented below (in millions):Year Ended March 31, 202420232022Platform net revenueConsole$4,632 $4,443 $4,400 PC and other1,717 1,729 1,532 Mobile1,213 1,254 1,059 Net revenue$7,562 $7,426 $6,991 Information about our operations in North America and internationally for the fiscal years ended March 31, 2024, 2023, and 2022 is presented below (in millions): Year Ended March 31, 202420232022Net revenue from unaffiliated customersNorth America$3,001 $3,151 $3,039 International4,561 4,275 3,952 Net revenue$7,562 $7,426 $6,991 As of March 31, 20242023Long-lived assetsNorth America$420 $445 International158 104 Total$578 $549 We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products and/or services. Note that revenue attributed to the legal entity that makes the sale is often not the country where the consumer resides. For example, revenue generated by our Swiss legal entity includes digital revenue from consumers who reside outside of Switzerland, including consumers who reside outside of Europe. Revenue generated by our Swiss legal entity during fiscal years 2024, 2023, and 2022 represents $4,374 million, $4,085 million and $3,423 million or 58 percent, 55 percent and 49 percent of our total net revenue, respectively. Revenue generated in the United States represents over 99 percent of our total North America net revenue. There were no other countries with net revenue greater than 10 percent. In fiscal year 2024, our direct sales to Sony and Microsoft represented approximately 37 percent and 16 percent of total net revenue, respectively. In fiscal year 2023, our direct sales to Sony and Microsoft represented approximately 32 percent and 16 percent of total net revenue, respectively. In fiscal year 2022, our direct sales to Sony and Microsoft represented approximately 33 percent and 16 percent of total net revenue, respectively. 75 75 75 Table of Contents Table of Contents --- ## New in Current Filing: Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Electronic Arts Inc.: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of Electronic Arts Inc. and subsidiaries (the Company) as of March 30, 2024 and April 1, 2023, the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the fiscal years in the three-year period ended March 30, 2024, and the related notes (collectively, the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of March 30, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 30, 2024 and April 1, 2023, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended March 30, 2024, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of March 30, 2024 based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's consolidated financial statements and an opinion on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control Over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. 76 76 76 Table of Contents Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Assessment of the estimated offering period As discussed in Note 2 to the consolidated financial statements, revenue for transactions that include future update rights and/or online hosting performance obligations are subject to deferral and recognized over the Estimated Offering Period. Determining the Estimated Offering Period is inherently subjective because it is not an explicitly defined period. The Company's determination of the Estimated Offering Period considers the following factors: •the average period of time customers are online •for physical games sold at retail, the period of time between the date a game unit is sold to a reseller and the date the reseller sells the game unit to the customer •known and expected online gameplay trends •disclosed service periods for competitors' games. The Company reported net revenue of $7,562 million for the year-ended March 30, 2024 and deferred net revenue of $1,958 million as of March 30, 2024. We identified the assessment of the Estimated Offering Period as a critical audit matter. A high degree of audit effort and subjective and complex auditor judgment was required to evaluate the sufficiency of audit evidence obtained over the Estimated Offering Period, including whether historical experience and other qualitative factors, such as those described above, are indicative of the time period during which the Company's games and extra content are played by its customers. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company's process to determine the Estimated Offering Period, including controls over the factors noted above and the Company's review of the Estimated Offering Period concluded for use in recognizing revenue. We evaluated the model the Company used to develop the Estimated Offering Period against the accounting requirements and for potential management bias. We computed the average period of time customers are online as well as the period of time between the date a game unit is sold to a reseller and the date the reseller sells the game unit to the customer by using the Company's internal data. We compared the results of these computations against the periods used by the Company in its Estimated Offering Period model. We obtained disclosed service periods for competitors' games and compared them against the data used by the Company. We compared known and expected online gameplay trends used in the determination of the Estimated Offering Period to historical Company information and publicly available industry information. We performed a sensitivity analysis over the Company's Estimated Offering Period to assess the impact of potential changes in the Estimated Offering Period on revenue. We assessed the sufficiency of evidence obtained related to the Estimated Offering Period by evaluating the results of the procedures performed. /s/ KPMG LLP We have served as the Company's auditor since 1987. Santa Clara, California May 22, 2024 77 77 77 Table of Contents Table of Contents Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. Item 9A: Controls and Procedures --- ## New in Current Filing: Definition and Limitations of Disclosure Controls Our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Our management evaluates these controls and procedures on an ongoing basis. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. These limitations include the possibility of human error, the circumvention or overriding of the controls and procedures and reasonable resource constraints. In addition, because we have designed our system of controls based on certain assumptions, which we believe are reasonable, about the likelihood of future events, our system of controls may not achieve its desired purpose under all possible future conditions. Accordingly, our disclosure controls and procedures provide reasonable assurance, but not absolute assurance, of achieving their objectives. --- ## New in Current Filing: Evaluation of Disclosure Controls and Procedures Our Chief Executive Officer and our Chief Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures, believe that as of the end of the period covered by this report, our disclosure controls and procedures were effective in providing the requisite reasonable assurance that material information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding the required disclosure. --- ## New in Current Filing: Management's Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable, but not absolute, assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. There are inherent limitations to the effectiveness of any system of internal control over financial reporting. These limitations include the possibility of human error, the circumvention or overriding of the system and reasonable resource constraints. Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with our policies or procedures may deteriorate. Our management assessed the effectiveness of our internal control over financial reporting as of the end of our most recently completed fiscal year. In making its assessment, management used the criteria set forth in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, our management has concluded that, as of the end of our most recently completed fiscal year, our internal control over financial reporting was effective and provided a reasonable level of assurance. KPMG LLP, our independent registered public accounting firm, has issued an auditors' report on the effectiveness of our internal control over financial reporting. That report appears on Page 76. --- ## New in Current Filing: Changes in Internal Control over Financial Reporting There has been no change in our internal controls over financial reporting identified in connection with our evaluation that occurred during the fiscal quarter ended March 31, 2024 that has materially affected or is reasonably likely to materially affect our internal control over financial reporting. 78 78 78 Table of Contents Table of Contents Item 9B: Other Information Rule 10b5-1 Plans During the three months ended March 31, 2024, none of our directors or executive officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as defined in Item 408 of Regulation S-K. Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not Applicable. 79 79 79 Table of Contents Table of Contents PART III Item 10: Directors, Executive Officers and Corporate Governance The information required by Item 10, other than the information regarding executive officers, which is included in Part I, Item 1 of this report, is incorporated herein by reference to the information to be included in our 2024 Proxy under the headings "Proxy Highlights", "Board of Directors and Corporate Governance," "Insider Trading, Anti-Hedging and Anti-Pledging Policies" and, as applicable, "Delinquent Section 16(a) Reports." Item 11: Executive Compensation The information required by Item 11 is incorporated herein by reference to the information to be included in the 2024 Proxy under the headings "Director Compensation", "Compensation Discussion & Analysis" and "Compensation Committee Interlocks and Insider Participation." Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by Item 12 is incorporated herein by reference to the information to be included in the 2024 Proxy under the headings "Executive Compensation Tables" and "Security Ownership of Certain Beneficial Owners and Management." Item 13: Certain Relationships and Related Transactions, and Director Independence The information required by Item 13 is incorporated herein by reference to the information to be included in the 2024 Proxy under the headings "Director Independence", "Related Persons Transaction Policy", and, as applicable, "Related Person Transactions." Item 14: Principal Accountant Fees and Services The information required by Item 14 is incorporated herein by reference to the information to be included in Proposal 3 of the 2024 Proxy and under the heading "Audit Matters." PART IV Item 15: Exhibits and Financial Statements --- ## New in Current Filing: (a)Documents filed as part of this report 1. Financial Statements: See Index to Consolidated Financial Statements under Item 8 on Page 33 of this report. 2. Financial Statement Schedules: The Financial Statement Schedules have been omitted because they are not applicable or are not required or are not present in material amounts or the information required to be set forth herein is included in the Consolidated Financial Statements or Notes thereto. 3. Exhibits: The exhibits listed in the accompanying index to exhibits on Page 81 are filed or incorporated by reference as part of this report. Item 16: Form 10-K Summary None. 80 80 80 Table of Contents Table of Contents --- ## New in Current Filing: 2024 FORM 10-K ANNUAL REPORT EXHIBIT INDEX Incorporated by Reference FiledHerewithNumber Exhibit TitleForm File No. Filing Date 3.01Amended and Restated Certificate of Incorporation8-K000-179488/13/2021 3.02Certificate of Amendment to Amended and Restated Certificate of Incorporation8-K000-179488/15/20223.03Amended and Restated Bylaws8-K000-179488/15/2022 4.01Specimen Certificate of Registrant's Common Stock10-Q000-179482/6/2018 4.02Description of SecuritiesX4.03Indenture, dated as of February 24, 2016 by and between Electronic Arts Inc. and U.S. Bank National Association, as Trustee8-K000-179482/24/20164.04First Supplemental Indenture, dated as of February 24, 2016, between Electronic Arts Inc. and U.S. Bank National Association, as Trustee8-K000-179482/24/20164.05Second Supplemental Indenture, dated as of February 11, 2021, between Electronic Arts Inc. and U.S. Bank National Association, as Trustee8-K000-179482/11/202110.01*Form of Indemnity Agreement with Directors10-K000-179486/4/2004 10.02*Electronic Arts Inc. Executive Bonus Plan8-K000-179485/25/2021 10.03*Electronic Arts Inc. Amended and Restated Change in Control Severance Plan8-K000-1794811/19/202110.04*Electronic Arts Inc. Deferred Compensation Plan X10.05*First Amendment to the Electronic Arts Deferred Compensation Plan, as amended and restated10-K000-179485/22/2009 10.06*EA Bonus Plan8-K000-179485/18/201810.07*Form of Performance-Based Restricted Stock Unit Agreement10-K000-179485/25/202210.08*Form of Performance-Based Restricted Stock Unit Agreement10-K000-179485/24/202310.09*Form of Performance-Based Restricted Stock Unit Agreement8-K000-179485/16/202410.10*2000 Equity Incentive Plan, as amended, and related documents8-K000-179488/1/201610.11*2000 Employee Stock Purchase Plan, as amended10-Q000-179482/8/202210.12*Form of Restricted Stock Unit AgreementX10.13*Form of Restricted Stock Unit Agreement For Non-Employee Directors 10-K000-179485/24/202310.14*Amended and Restated 2019 Equity Incentive Plan8-K000-179488/15/202210.15*Electronic Arts Inc. Executive Officer Cash Severance Policy8-K000-179489/1/202210.16*Offer Letter for Employment at Electronic Arts Inc. to Andrew Wilson, dated September 15, 20138-K000-179489/17/201310.17*Offer Letter for Employment at Electronic Arts Inc. to Christopher Suh, dated January 14, 20228-K000-179481/31/2022 3.01 Amended and Restated Certificate of Incorporation 3.02 Certificate of Amendment to Amended and Restated Certificate of Incorporation 3.03 Amended and Restated Bylaws 4.01 Specimen Certificate of Registrant's Common Stock 4.02 Description of Securities 4.03 Indenture, dated as of February 24, 2016 by and between Electronic Arts Inc. and U.S. Bank National Association, as Trustee 4.04 First Supplemental Indenture, dated as of February 24, 2016, between Electronic Arts Inc. and U.S. Bank National Association, as Trustee 4.05 Second Supplemental Indenture, dated as of February 11, 2021, between Electronic Arts Inc. and U.S. Bank National Association, as Trustee 10.01* Form of Indemnity Agreement with Directors 10.02* Electronic Arts Inc. Executive Bonus Plan 10.03* Electronic Arts Inc. Amended and Restated Change in Control Severance Plan 10.04* Electronic Arts Inc. Deferred Compensation Plan 10.05* First Amendment to the Electronic Arts Deferred Compensation Plan, as amended and restated 10.06* EA Bonus Plan 10.07* Form of Performance-Based Restricted Stock Unit Agreement 10-K 10.08* Form of Performance-Based Restricted Stock Unit Agreement 10.09* Form of Performance-Based Restricted Stock Unit Agreement 8-K 000-17948 10.10* 2000 Equity Incentive Plan, as amended, and related documents 10.11* 2000 Employee Stock Purchase Plan, as amended 10.12* Form of Restricted Stock Unit Agreement 10.13* Form of Restricted Stock Unit Agreement For Non-Employee Directors 10-K 000-17948 10.14* Amended and Restated 2019 Equity Incentive Plan 10.15* Electronic Arts Inc. Executive Officer Cash Severance Policy 10.16* Offer Letter for Employment at Electronic Arts Inc. to Andrew Wilson, dated September 15, 2013 10.17* Offer Letter for Employment at Electronic Arts Inc. to Christopher Suh, dated January 14, 2022 81 81 81 Table of Contents Table of Contents Incorporated by Reference FiledHerewithNumber Exhibit TitleForm File No. Filing Date 10.18*Offer Letter for Employment at Electronic Arts Inc. to Stuart Canfield, dated June 19, 20238-K000-179486/20/202310.19*Offer Letter for Employment at Electronic Arts Inc. to Mala Singh, dated August 27, 201610-Q000-1794811/8/201610.20**Durango Publisher License Agreement, dated June 29, 2012, by and among Electronic Arts Inc., EA International (Studio & Publishing) Ltd., Microsoft Licensing, GP and Microsoft Corporation10-K000-179485/21/201410.21**Xbox Console Publisher License Agreement, dated as of September 30, 2020, between Microsoft Corporation, Electronic Arts Inc. and EA Swiss Sàrl10-Q000-1794811/10/202010.22**Playstation Global Developer & Publisher Agreement, dated April 1, 2018, by and among Electronic Arts Inc., EA International (Studio & Publishing) Ltd., Sony Interactive Entertainment Inc., Sony Interactive Entertainment LLC, and Sony Interactive Entertainment Europe Ltd10-Q000-179488/8/201810.23**PlayStation 5 Amendment to the PlayStation Global Developer and Publisher Agreement, dated as of October 15, 2020, by and among Electronic Arts Inc., EA Swiss Sàrl, Sony Interactive Entertainment, Inc., Sony Interactive Entertainment LLC, and Sony Interactive Entertainment Europe Limited10-Q000-1794811/10/202010.24Credit Agreement, dated March 22, 2023, by and among Electronic Arts Inc., the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent8-K000-179483/22/202319.1Electronic Arts Inc. Insider Trading PolicyX21.1Subsidiaries of the RegistrantX23.1Consent of KPMG LLP, Independent Registered Public Accounting FirmX31.1Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002X31.2Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002XAdditional exhibits furnished with this report:32.1Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X32.2Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X97Electronic Arts Inc. Clawback PolicyX101.INS†Inline XBRL Instance DocumentX101.SCH†Inline XBRL Taxonomy Extension Schema DocumentX101.CAL†Inline XBRL Taxonomy Extension Calculation Linkbase DocumentX101.DEF†Inline XBRL Taxonomy Extension Definition Linkbase DocumentX 10.18* Offer Letter for Employment at Electronic Arts Inc. to Stuart Canfield, dated June 19, 2023 8-K 10.19* Offer Letter for Employment at Electronic Arts Inc. to Mala Singh, dated August 27, 2016 10.20** Durango Publisher License Agreement, dated June 29, 2012, by and among Electronic Arts Inc., EA International (Studio & Publishing) Ltd., Microsoft Licensing, GP and Microsoft Corporation 10.21** Xbox Console Publisher License Agreement, dated as of September 30, 2020, between Microsoft Corporation, Electronic Arts Inc. and EA Swiss Sàrl 10.22** Playstation Global Developer & Publisher Agreement, dated April 1, 2018, by and among Electronic Arts Inc., EA International (Studio & Publishing) Ltd., Sony Interactive Entertainment Inc., Sony Interactive Entertainment LLC, and Sony Interactive Entertainment Europe Ltd 10.23** PlayStation 5 Amendment to the PlayStation Global Developer and Publisher Agreement, dated as of October 15, 2020, by and among Electronic Arts Inc., EA Swiss Sàrl, Sony Interactive Entertainment, Inc., Sony Interactive Entertainment LLC, and Sony Interactive Entertainment Europe Limited 10.24 Credit Agreement, dated March 22, 2023, by and among Electronic Arts Inc., the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent 19.1 Electronic Arts Inc. Insider Trading Policy 21.1 Subsidiaries of the Registrant 23.1 Consent of KPMG LLP, Independent Registered Public Accounting Firm 31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 97 Electronic Arts Inc. Clawback Policy 101.INS† 101.SCH† 101.CAL† 101.DEF† 82 82 82 Table of Contents Table of Contents Incorporated by Reference FiledHerewithNumber Exhibit TitleForm File No. Filing Date 101.LAB†Inline XBRL Taxonomy Extension Label Linkbase DocumentX101.PRE†Inline XBRL Taxonomy Extension Presentation Linkbase DocumentX104The Cover Page Interactive Data File, formatted in Inline XBRL (included in Exhibit 101) 101.LAB† 101.PRE† *Management contract or compensatory plan or arrangement.**Confidential portions of these documents have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 83 83 83 Table of Contents Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.ELECTRONIC ARTS INC.By:/s/ Andrew WilsonAndrew WilsonChief Executive OfficerDate: May 22, 2024Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated and on the 22nd of May, 2024. Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date: May 22, 2024 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated and on the 22nd of May, 2024. Name Title/s/ Andrew Wilson Chief Executive OfficerAndrew Wilson /s/ Stuart Canfield Executive Vice President andStuart CanfieldChief Financial Officer/s/ Eric KellySenior Vice President andEric KellyChief Accounting OfficerDirectors: /s/ Andrew Wilson Chair of the BoardAndrew Wilson /s/ Kofi A. BruceDirectorKofi A. Bruce/s/ Rachel A. Gonzalez DirectorRachel A. Gonzalez /s/ Jeffrey T. Huber DirectorJeffrey T. Huber /s/ Talbott RocheDirectorTalbott Roche/s/ Richard A. Simonson DirectorRichard A. Simonson /s/ Luis A. Ubiñas DirectorLuis A. Ubiñas /s/ Heidi Ueberroth DirectorHeidi Ueberroth /s/ Kofi A. Bruce Kofi A. Bruce /s/ Rachel A. Gonzalez Rachel A. Gonzalez 84 84 84 --- ## No Match in Current: Events such as the COVID-19 pandemic and the various responses to it have previously affected and may in the future affect how we are operating our business. *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* We are subject to unforeseen events such as the COVID-19 pandemic, which has significantly impacted, and may in the future impact, our business and results of operations. The COVID-19 pandemic and the various responses to it have affected how we and our partners are operating our businesses. As we have re-opened our offices, employees are offered more flexibility in the amount of time they work in an office. Further, the increased availability of hybrid or remote working arrangements has expanded the pool of companies that can compete for our employees and employment candidates. The long-term effects of the COVID-19 pandemic on the future of work may present operational challenges and impact our ability to attract and retain talent, and our teams' ability to collaborate creatively, each of which may adversely affect our business. Certain of our development teams have worked for an extended period in a distributed environment, whereas these teams historically collaborated in-person on the creative and technical process required to develop high-quality products and services at scale. This has disrupted, and may continue to disrupt, the productivity of our workforce and the creative process to which our teams are accustomed. Companies in our industry have experienced issues related to game and service quality associated with the period during which employees primarily worked-from-home, and we have changed the launch date of key products in part because of challenges associated with a distributed development environment. The longer-term impact to our creative and technical development processes associated with more distributed work models is unknown and the associated risks, including with respect to game quality and developmental delays, which may cause us to delay or cancel additional release dates, may be heightened. If we are not able to respond to and manage the impact of these and other currently unknown impacts related to events such as the COVID-19 pandemic, our business will be harmed. --- ## No Match in Current: A significant portion of our packaged goods sales are made to a relatively small number of retail and distribution partners, and these sales may be disrupted. *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* We derive a significant percentage of our net revenue attributable to sales of our packaged goods products to our top retail and distribution partners. The concentration of a significant percentage of these sales through a few large partners could lead to a short-term disruption to our business if certain of these partners significantly reduced their purchases or ceased to offer our products. The financial position of certain partners has deteriorated and while we maintain protections such as monitoring the credit extended to these partners, we could be vulnerable to collection risk if one or more of these partners experienced 13 13 13 Table of Contents Table of Contents continued deterioration of their business or declared bankruptcy. Additionally, receivables from these partners generally increase in our December fiscal quarter as sales of our products generally increase in anticipation of the holiday season which exposes us to heightened risk at that time of year. Having a significant portion of our packaged goods sales concentrated in a few partners could reduce our negotiating leverage with them. If one or more of these partners experience deterioration in their business or become unable to obtain sufficient financing to maintain their operations, our business could be harmed. --- ## No Match in Current: COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* Among Electronic Arts Inc., the S&P 500 Index, the Nasdaq Composite Index, and the RDG Technology Composite Index *Based on $100 invested on March 31, 2018 in stock or index, including reinvestment of dividends. March 31, 201820192020202120222023Electronic Arts Inc.$100 $84 $83 $112 $105 $101 S&P 500 Index100 110 102 159 184 170 Nasdaq Composite Index100 111 111 193 209 181 RDG Technology Composite Index100 113 124 211 227 205 Item 6: [Reserved] 20 20 20 Table of Contents Table of Contents Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW The following overview is a high-level discussion of our operating results, as well as some of the trends and drivers that affect our business. Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2023, as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Form 10-K, including in the "Business" section and the "Risk Factors" above, the remainder of "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" or the Consolidated Financial Statements and related Notes. --- ## No Match in Current: Recently Adopted Accounting Standards *This section from the 2023 filing does not have a high-confidence textual match in 2024. It may have been removed, merged, or substantially reworded.* In October 2021, the FASB issued ASU 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). The amendments in this update require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. For business combinations prior to fiscal year 2023, we recorded deferred net revenue related to contracts from acquired entities at fair value on the date of acquisition. As a result, we did not recognize certain revenues related to these contracts that the acquired entities would have otherwise recorded as an independent entity. We adopted ASU 2021-08 in the fourth quarter of fiscal year 2023, and the amendments apply retrospectively to all business combinations with an acquisition date in the fiscal year of adoption. The adoption did not have an impact on our Consolidated Financial Statements and related disclosures, since we did not have any acquisitions in fiscal year 2023. In November 2021, the FASB issued ASU 2021-10, Disclosures by Business Entities about Government Assistance (Topic 832). The amendments in this update establish Topic 832 and require additional disclosures regarding government grants and money contributions when entities accounted for transactions with a government by analogizing to a grant or contribution accounting model. We adopted ASU 2021-10 in the first quarter of fiscal year 2023 and elected to apply the amendments prospectively to all transactions within the scope of the amendment that are reflected in the financial statements at the date of adoption. The adoption did not have a material impact on our Consolidated Financial Statements and related disclosures. 43 43 43 Table of Contents Table of Contents --- ## Modified: Short-term Investments **Key changes:** - Reworded sentence: "Due to our mix of fixed and variable rate securities, our short-term investment portfolio is susceptible to changes in short-term interest rates." **Prior (2023):** 31 31 31 Table of Contents Table of Contents Due to our mix of fixed and variable rate securities, our short-term investment portfolio is susceptible to changes in short-term interest rates. As of March 31, 2023, our short-term investments had gross unrealized losses of $1 million or less than 1 percent of total short-term investments. From time to time, we may liquidate some or all of our short-term investments to fund operational needs or other activities, such as capital expenditures, business acquisitions or stock repurchase programs. **Current (2024):** Due to our mix of fixed and variable rate securities, our short-term investment portfolio is susceptible to changes in short-term interest rates. As of March 31, 2024, our short-term investments had net unrealized gains of less than $1 million or less than 1 percent of total short-term investments. From time to time, we may liquidate some or all of our short-term investments to fund operational needs or other activities, such as capital expenditures, business acquisitions or stock repurchase programs. --- ## Modified: About Electronic Arts **Key changes:** - Reworded sentence: "Our portfolio includes brands that we either wholly own (such as Apex Legends, Battlefield, and The Sims) or license from others (such as the licenses within EA SPORTS FC and EA SPORTS Madden NFL)." **Prior (2023):** Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, mobile phones and tablets. At our core is a portfolio of intellectual property from which we create innovative games and experiences that deliver high-quality entertainment and drive engagement across our network of hundreds of millions of unique active accounts. Our portfolio includes brands that we either wholly own (such as Apex Legends, Battlefield, and The Sims) or license from others (such as Madden NFL, Star Wars, and the 300+ licenses within our global football ecosystem). Through our live services offerings, we offer our players high-quality experiences designed to provide value to players, and extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our base games. We are focusing on building games and experiences that grow the global online communities around our key franchises; reaching more players through connecting interactive storytelling to key intellectual property; and building re-occurring revenue from our annualized sports franchises, our console, PC and mobile catalog titles, and our live services. **Current (2024):** Electronic Arts is a global leader in digital interactive entertainment. We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, mobile phones and tablets. At our core is a portfolio of intellectual property from which we create innovative games and experiences that deliver high-quality entertainment and drive engagement across our network of hundreds of millions of unique active accounts. Our portfolio includes brands that we either wholly own (such as Apex Legends, Battlefield, and The Sims) or license from others (such as the licenses within EA SPORTS FC and EA SPORTS Madden NFL). Through our live services offerings, we offer high-quality experiences designed to provide value to players, and extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games. We are focusing on building games and experiences that grow the global online communities around our key franchises; deepening engagement through connecting interactive storytelling to key intellectual property; and building re-occurring revenue from scaling our live services and growth in our annualized sports franchises, our console, PC and mobile catalog titles. --- ## Modified: Restructuring **Key changes:** - Reworded sentence: "Restructuring expenses for fiscal years 2024 and 2023 were as follows (in millions):" **Prior (2023):** Restructuring expenses for fiscal years 2023 and 2022 were as follows (in millions): **Current (2024):** Restructuring expenses for fiscal years 2024 and 2023 were as follows (in millions): --- ## Modified: Our financial results are subject to currency and interest rate fluctuations. **Key changes:** - Reworded sentence: "For our fiscal year ended March 31, 2024, international net revenue comprised 60 percent of our total net revenue, and we expect our international business to continue to account for a significant portion of our total net revenue." - Removed sentence: "Strengthening of the U.S." - Removed sentence: "dollar, particularly relative to the Euro and British pound sterling, has a negative impact on our reported international net revenue but a positive impact on our reported international operating expenses because these amounts are translated at lower 15 15 15 Table of Contents Table of Contents rates." **Prior (2023):** International sales are a fundamental part of our business. For our fiscal year ended March 31, 2023, international net revenue comprised 58 percent of our total net revenue, and we expect our international business to continue to account for a significant portion of our total net revenue. As a result of our international sales, and also the denomination of our foreign investments and our cash and cash equivalents in foreign currencies, we are exposed to the effects of fluctuations in foreign currency exchange rates, and volatility in foreign currency exchange rates remains elevated as compared to historic levels. Strengthening of the U.S. dollar, particularly relative to the Euro and British pound sterling, has a negative impact on our reported international net revenue but a positive impact on our reported international operating expenses because these amounts are translated at lower 15 15 15 Table of Contents Table of Contents rates. We use foreign currency hedging contracts to mitigate some foreign currency risk. However, these activities are limited in the protection they provide us from foreign currency fluctuations and can themselves result in losses. In addition, interest rate volatility can decrease the amount of interest earned on our cash, cash equivalents and short-term investment portfolio. **Current (2024):** International sales are a fundamental part of our business. For our fiscal year ended March 31, 2024, international net revenue comprised 60 percent of our total net revenue, and we expect our international business to continue to account for a significant portion of our total net revenue. As a result of our international sales, and also the denomination of our foreign investments and our cash and cash equivalents in foreign currencies, we are exposed to the effects of fluctuations in foreign currency exchange rates, and volatility in foreign currency exchange rates remains elevated as compared to historic levels. We use foreign currency hedging contracts to mitigate some foreign currency risk. However, these activities are limited in the protection they provide us from foreign currency fluctuations and can themselves result in losses. In addition, interest rate volatility can decrease the amount of interest earned on our cash, cash equivalents and short-term investment portfolio. --- ## Modified: Fiscal Year **Key changes:** - Reworded sentence: "Our results of operations for the fiscal year ended March 31, 2024 contained 52 weeks and ended on March 30, 2024." **Prior (2023):** Our fiscal year is reported on a 52- or 53-week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ended March 31, 2023 contained 52 weeks and ended on April 1, 2023. Our results of operations for the fiscal years ended March 31, 2022 and 2021 contained 52 and 53 weeks and ended on April 2, 2022 and April 3, 2021, respectively. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. **Current (2024):** Our fiscal year is reported on a 52- or 53-week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ended March 31, 2024 contained 52 weeks and ended on March 30, 2024. Our results of operations for the fiscal years ended March 31, 2023 and 2022, each contained 52 weeks and ended on April 1, 2023 and April 2, 2022, respectively. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. --- ## Modified: Catastrophic events may disrupt our business. **Key changes:** - Reworded sentence: "Catastrophic events, including natural disasters, cyber-incidents, power disruptions, pandemics, acts of terrorism or other events have caused, and in the future could cause, outages, disruptions and/or degradations of our infrastructure (including our or our partners' information technology and network systems), a failure in our ability to conduct normal business operations, or the closure of public spaces in which players engage with our games and services all of which could materially impact our reputation and brand, financial condition and operating results." - Removed sentence: "Natural disasters and weather events, such as wildfires and hurricanes, are increasing in size and scope and certain of our office locations are located in areas that are vulnerable to these effects." - Reworded sentence: "In addition, our corporate headquarters and several of our key studios also are located in seismically active regions and areas that are vulnerable to other natural disasters and weather events such as wildfires and hurricanes." - Removed sentence: "11 11 11 Table of Contents Table of Contents" **Prior (2023):** Natural disasters, cyber-incidents, weather events, wildfires, power disruptions, telecommunications failures, pandemics, health crises and other public health events, failed upgrades of existing systems or migrations to new systems, acts of terrorism or other events could cause outages, disruptions and/or degradations of our infrastructure (including our or our partners' information technology and network systems), a failure in our ability to conduct normal business operations, or the closure of public spaces in which players engage with our games and services all of which could materially impact our reputation and brand, financial condition and operating result. The health and safety of our employees, players, third-party organizations with whom we partner, or regulatory agencies on which we rely could be also affected, any of which may prevent us from executing against our business strategies and/or cause a decrease in consumer demand for our products and services. We recognize the inherent physical risks associated with climate change. Our business relies on the reliable transmission of energy worldwide and is susceptible to weather-related events that could stress the power grid. Natural disasters and weather events, such as wildfires and hurricanes, are increasing in size and scope and certain of our office locations are located in areas that are vulnerable to these effects. System redundancy may be ineffective, and our disaster recovery and business continuity planning may not be sufficient for all eventualities. In addition, our corporate headquarters and several of our key studios also are located in seismically active regions. These catastrophic events could disrupt our business and operations, and/or the businesses and operations of our partners and may cause us to incur additional costs to maintain or resume operations. 11 11 11 Table of Contents Table of Contents **Current (2024):** Catastrophic events, including natural disasters, cyber-incidents, power disruptions, pandemics, acts of terrorism or other events have caused, and in the future could cause, outages, disruptions and/or degradations of our infrastructure (including our or our partners' information technology and network systems), a failure in our ability to conduct normal business operations, or the closure of public spaces in which players engage with our games and services all of which could materially impact our reputation and brand, financial condition and operating results. The health and safety of our employees, players, third-party organizations with whom we partner, or regulatory agencies on which we rely could be also affected, any of which may prevent us from executing against our business strategies and/or cause a decrease in consumer demand for our products and services. We recognize the inherent physical risks associated with climate change. Our business relies on the reliable transmission of energy worldwide and is susceptible to weather-related events that could stress the power grid. System redundancy may be ineffective, and our disaster recovery and business continuity planning may not be sufficient for all eventualities. In addition, our corporate headquarters and several of our key studios also are located in seismically active regions and areas that are vulnerable to other natural disasters and weather events such as wildfires and hurricanes. These catastrophic events could disrupt our business and operations, and/or the businesses and operations of our partners and may cause us to incur additional costs to maintain or resume operations. --- ## Modified: Restructuring **Key changes:** - Reworded sentence: "46 46 46 Table of Contents Table of Contents" **Prior (2023):** Restructuring expenses for fiscal years 2023 and 2022 were as follows (in millions): **Current (2024):** Restructuring expenses for fiscal years 2024 and 2023 were as follows (in millions): --- ## Modified: (9) ROYALTIES AND LICENSES **Key changes:** - Reworded sentence: "During fiscal year 2024, we recorded impairment charges of $30 million for costs associated with licensor commitments, all of which were recorded within Restructuring in the Consolidated Statement of Operations." - Reworded sentence: "55 55 55 Table of Contents Table of Contents" **Prior (2023):** Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and distribution affiliates. Content license royalties consist of payments made to celebrities, professional sports organizations, movie studios and other organizations for our use of their trademarks, copyrights, personal publicity rights, content and/or other intellectual property. Royalty payments to independent software developers are payments for the development of intellectual property related to our games. Co-publishing and distribution royalties are payments made to third parties for the delivery of products. During fiscal years 2023, 2022 and 2021, we did not recognize any material losses or impairment charges on royalty-based commitments. The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of March 31, 20232022Other current assets$105 $35 Other assets31 28 Royalty-related assets$136 $63 The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates, content licensors, and/or independent software developers, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of March 31, 20232022Accrued and other current liabilities$208 $203 Other liabilities - 3 Royalty-related liabilities$208 $206 As of March 31, 2023, we were committed to pay approximately $2,011 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty (i.e., delivery of the product or content or other factors) and such commitments were therefore not recorded in our Consolidated Financial Statements. See Note 14 for further information on our developer and licensor commitments. 59 59 59 Table of Contents Table of Contents **Current (2024):** Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and distribution affiliates. Content license royalties consist of payments made to celebrities, professional sports organizations, movie studios and other organizations for our use of their trademarks, copyrights, personal publicity rights, content and/or other intellectual property. Royalty payments to independent software developers are payments for the development of intellectual property related to our games. Co-publishing and distribution royalties are payments made to third parties for the delivery of products. During fiscal year 2024, we recorded impairment charges of $30 million for costs associated with licensor commitments, all of which were recorded within Restructuring in the Consolidated Statement of Operations. See Note 8 - Restructuring Activities for additional information on the impairment charge related to our 2024 Restructuring Plan. During fiscal years 2023 and 2022, we did not recognize any material losses or impairment charges on royalty-based commitments. The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of March 31, 20242023Other current assets$98 $105 Other assets24 31 Royalty-related assets$122 $136 At any given time, depending on the timing of our payments to our content licensors, independent software developers, co-publishing, and/or distribution affiliates, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of March 31, 20242023Accrued and other current liabilities$189 $208 Other liabilities20 - Royalty-related liabilities$209 $208 As of March 31, 2024, we were committed to pay approximately $1,948 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty (i.e., delivery of the product or content or other factors) and such commitments were therefore not recorded in our Consolidated Financial Statements. See Note 14 for further information on our developer and licensor commitments. 55 55 55 Table of Contents Table of Contents --- ## Modified: Trends in Our Business **Key changes:** - Reworded sentence: "These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games and free-to-play games." - Reworded sentence: "Our most popular live services are the extra content purchased for the Ultimate Team mode associated with our sports franchises, that allows players to collect current and former professional players in order to build and compete as a personalized team, and extra content purchased for our Apex Legends franchise." - Reworded sentence: "Our net revenue attributable to digital full game downloads was $1,343 million, $1,262 million, and $1,282 million during fiscal years 2024, 2023, and 2022, respectively; while our net revenue attributable to packaged goods sales was $672 million, $675 million, and $711 million in fiscal years 2024, 2023, and 2022, respectively." - Reworded sentence: "In addition, the gaming, technology/internet, and entertainment industries are converging, and we compete with large, diversified technology companies in those industries." - Removed sentence: "In the past several years, our industry has undergone a period of increased consolidation which increases competitive pressure on us as interactive entertainment companies grow through acquisition or as larger, well-funded technology companies strengthen their interactive entertainment capabilities." **Prior (2023):** Live Services Business. We offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our base games and free-to-play games. Our net revenue attributable to live services and other was $5,489 million, $4,998 million, and $4,016 million for fiscal years 2023, 2022, and 2021, respectively, and we expect that live services net revenue will continue to be material to our business. Within live services and other, net revenue attributable to extra content was $4,277 million, $3,910 million, and $3,068 million for fiscal years 2023, 2022, and 2021, respectively. Extra content net revenue has increased as more players engage with our games and services, and purchase additional content designed to provide value to players and extend and enhance gameplay. Our most popular live services are the extra content purchased for the Ultimate Team mode associated with our sports franchises and extra content purchased for our Apex Legends franchise. Ultimate Team allows players to collect current and former professional players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within the Ultimate Team mode associated with our sports franchises, a substantial portion of which was derived from FIFA Ultimate Team, and from our Apex Legends franchise, is material to our business. 21 21 21 Table of Contents Table of Contents Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to purchase an increasingly higher proportion of our games digitally. As a result, we expect net revenue attributable to digital full game downloads to increase over time and net revenue attributable to sales of packaged goods to decrease. Our net revenue attributable to digital full game downloads was $1,262 million, $1,282 million, and $918 million during fiscal years 2023, 2022, and 2021, respectively; while our net revenue attributable to packaged goods sales was $675 million, $711 million, and $695 million in fiscal year 2023, 2022, and 2021, respectively. In addition, as measured based on total units sold on Microsoft's Xbox One and Xbox Series X and Sony's PlayStation 4 and 5 rather than by net revenue, we estimate that 68 percent, 65 percent, and 62 percent of our total units sold during fiscal years 2023, 2022, and 2021 were sold digitally. Digital full game units are based on sales information provided by Microsoft and Sony; packaged goods units sold through are estimated by obtaining data from significant retail partners in North America, Europe and Asia, and applying internal sales estimates with respect to retail partners from which we do not obtain data. We believe that these percentages are reasonable estimates of the proportion of our games that are digitally downloaded in relation to our total number of units sold for the applicable period of measurement. Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally is generally less than selling the same game through traditional retail and distribution channels. Increased Competition. Competition in our business is intense. Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, the gaming, technology/internet, and entertainment industries have converged in recent years and larger, well-funded technology companies have strengthened their interactive entertainment capabilities resulting in more direct competition with us. Their greater financial or other resources may provide larger budgets to develop and market tools, technologies, products and services that gain consumer success and shift player time and engagement away from our products and services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent, resulting in retention challenges and increased cost to retain and incentivize our key people. In the past several years, our industry has undergone a period of increased consolidation which increases competitive pressure on us as interactive entertainment companies grow through acquisition or as larger, well-funded technology companies strengthen their interactive entertainment capabilities. Concentration of Sales Among the Most Popular Games. In all major segments of our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue historically has been derived from games based on a few popular franchises, several of which we have released on an annual or bi-annual basis. In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace. We have invested in over 300 individual partnerships and licenses to create our global football ecosystem and starting in fiscal year 2024, our global football franchise will transition to a new EA SPORTS FC brand. Our vision for the future of interactive football with EA SPORTS FC is to create the largest football club in the world, and we believe this is the right opportunity for us so that we can continue delivering innovation and growing to connect more fans on a global scale. Re-occurring Revenue Sources. Our business model includes revenue that we deem re-occurring in nature, such as revenue from our live services, annualized sports franchises (e.g., global football, Madden NFL), and our console, PC and mobile catalog titles (i.e., titles that did not launch in the current fiscal year). We have been able to forecast revenue from these areas of our business with greater relative confidence than for new games, services and business models. As we continue to incorporate new business models and modalities of play into our games, our goal is to continue to look for opportunities to expand the re-occurring portion of our business. Free-to-Play and Free-to-Enter Games. We offer games in some of our largest franchises, including the PC version of our global football franchise, The Sims 4, and Apex Legends, through business models that allow consumers to access games with no-upfront cost. These games are then monetized through a live service associated with the game, particularly extra content sales. These business models are dominant in the mobile gaming industry and are becoming increasingly accepted in the online PC and console market. We expect to continue offering games through these business models across console, PC and mobile and expect extra content revenue generated through these business models to continue to be an important part of our business. 22 22 22 Table of Contents Table of Contents Restructuring. In March 2023, our Board of Directors approved a restructuring plan (the "2023 Restructuring Plan" or the "Plan") focused on prioritizing investments to the Company's growth opportunities and optimizing its real estate portfolio. The Plan includes actions driven by portfolio rationalization, including intellectual property impairment charges and headcount reductions, in addition to office space reductions. The actions associated with the Plan are expected to be substantially complete by September 30, 2023. Net Bookings. In order to improve transparency into our business, we disclose an operating performance metric, net bookings. Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. The following is a calculation of our total net bookings for the periods presented:Year Ended March 31,(In millions)20232022Total net revenue$7,426 $6,991 Change in deferred net revenue (online-enabled games)(85)524 Net bookings$7,341 $7,515 Net bookings Net bookings were $7,341 million for fiscal year 2023 primarily driven by sales related to our FIFA and Madden franchises, Apex Legends, and The Sims 4. Net bookings decreased $174 million or 2 percent as compared to fiscal year 2022 primarily due to the prior year release of Battlefield 2042, and a $244 million impact related to fluctuations in foreign exchange rates, net of hedging activities, partially offset by strength in our FIFA franchise. Live services and other net bookings were $5,530 million for fiscal year 2023, and increased $160 million or 3 percent as compared to fiscal year 2022. The increase in live services and other net bookings was due primarily to strength in our FIFA franchise across all platforms (console, PC, and mobile), and the addition of Golf Clash. This strength was partially offset by fluctuations in foreign exchange rates, net of hedging activities, and softness in sales of extra content within the rest of our mobile catalog portfolio. Full game net bookings were $1,811 million for fiscal year 2023, and decreased $334 million or 16 percent as compared to fiscal year 2022 primarily due to the prior year releases of Battlefield 2042 and Mass Effect Trilogy Remaster, partially offset by the release of Dead Space Remake and sales related to our FIFA franchise. **Current (2024):** Live Services Business. We offer our players high-quality experiences designed to provide value to players and to extend and enhance gameplay. These live services include extra content, subscription offerings and other revenue generated in addition to the sale of our full games and free-to-play games. Our net revenue attributable to live services and other was $5,547 million, $5,489 million, and $4,998 million for fiscal years 2024, 2023, and 2022, respectively, and we expect that live services net revenue will continue to be material to our business. Within live services and other, net revenue attributable to extra content was $4,463 million, $4,277 million, and $3,910 million for fiscal years 2024, 2023, and 2022, respectively. Extra content net revenue has increased as more players engage with our games and services, and purchase additional content designed to provide value to players and extend and enhance gameplay. Our most popular live services are the extra content purchased for the Ultimate Team mode associated with our sports franchises, that allows players to collect current and former professional players in order to build and compete as a personalized team, and extra content purchased for our Apex Legends franchise. Live services net revenue generated from extra content purchased within the Ultimate Team mode associated with our sports franchises, a substantial portion of which is derived from Ultimate Team within our global football franchise and from our Apex Legends franchise, is material to our business. 20 20 20 Table of Contents Table of Contents Digital Delivery of Games. In our industry, players increasingly purchase games digitally as opposed to purchasing physical discs. While this trend, as applied to our business, may not be linear due to a mix of products during a fiscal year, consumer buying patterns and other factors, over time we expect players to purchase an increasingly higher proportion of our games digitally. As a result, we expect net revenue attributable to digital full game downloads to increase over time and net revenue attributable to sales of packaged goods to decrease. Our net revenue attributable to digital full game downloads was $1,343 million, $1,262 million, and $1,282 million during fiscal years 2024, 2023, and 2022, respectively; while our net revenue attributable to packaged goods sales was $672 million, $675 million, and $711 million in fiscal years 2024, 2023, and 2022, respectively. In addition, as measured based on total units sold on Microsoft's Xbox One and Xbox Series X and Sony's PlayStation 4 and 5 rather than by net revenue, we estimate that 73 percent, 68 percent, and 65 percent of our total units sold during fiscal years 2024, 2023, and 2022, were sold digitally. Digital full game units are based on sales information provided by Microsoft and Sony; packaged goods units sold through are estimated by obtaining data from significant retail and distribution partners in North America, Europe and Asia, and applying internal sales estimates with respect to retail partners from which we do not obtain data. We believe that these percentages are reasonable estimates of the proportion of our games that are digitally downloaded in relation to our total number of units sold for the applicable period of measurement. Increases in consumer adoption of digital purchase of games combined with increases in our live services revenue generally results in expansion of our gross margin, as costs associated with selling a game digitally is generally less than selling the same game through traditional retail and distribution channels. Increased Competition. Competition in our business is intense. Our competitors range from established interactive entertainment companies to emerging start-ups. In addition, the gaming, technology/internet, and entertainment industries are converging, and we compete with large, diversified technology companies in those industries. Their greater financial or other resources may provide larger budgets to develop and market tools, technologies, products and services that gain consumer success and shift player time and engagement away from our products and services. In addition, our leading position within the interactive entertainment industry makes us a prime target for recruiting our executives, as well as key creative and technical talent, resulting in retention challenges and increased cost to retain and incentivize our key people. Concentration of Sales Among the Most Popular Games. In our industry, we see a large portion of games sales concentrated on the most popular titles. Similarly, a significant portion of our revenue historically has been derived from games based on a few popular franchises, such as EA SPORTS FC, EA SPORTS Madden NFL, Apex Legends, Battlefield, and The Sims. In particular, we have historically derived a significant portion of our net revenue from our global football franchise, the annualized version of which is consistently one of the best-selling games in the marketplace. We transitioned our global football franchise to a new EA SPORTS FC brand in the second quarter of fiscal 2024. Our continued vision for the future of EA SPORTS FC is to create and innovate across platforms, geographies, and business models to expand our global football experiences and entertain even more fans around the world. Re-occurring Revenue Sources. Our business model includes revenue that we deem re-occurring in nature, such as revenue from our live services, annualized sports franchises (e.g., EA SPORTS FC, EA SPORTS Madden NFL), and our console, PC and mobile catalog titles (i.e., titles that did not launch in the current fiscal year). We have been able to forecast revenue from these areas of our business with greater relative confidence than for new games, services and business models. As we continue to incorporate new business models and modalities of play into our games, our goal is to continue to look for opportunities to expand the re-occurring portion of our business. Free-to-Play and Free-to-Enter Games. We offer games in some of our largest franchises, including Apex Legends, The Sims 4, and the PC and mobile version of our EA SPORTS FC franchise, through a business model that allows consumers to access games with no-upfront cost. These games are then monetized through a live service associated with the game, particularly extra content sales. These business models are dominant in the mobile gaming industry and are becoming increasingly accepted in the online PC and console market. We expect to continue offering games through these business models across console, PC and mobile and expect extra content revenue generated through these business models to continue to be an important part of our business. Restructuring. In February 2024, our Board of Directors approved a restructuring plan (the "2024 Restructuring Plan") focused on aligning our portfolio, investments, and resources in support of our strategic priorities and growth initiatives. This plan reflects actions driven by portfolio rationalization, including costs associated with licensor commitments, as well as reductions in real estate and headcount. The actions associated with this plan are expected to be substantially completed by December 31, 2024. 21 21 21 Table of Contents Table of Contents Net Bookings. In order to improve transparency into our business, we disclose an operating performance metric, net bookings. Net bookings is defined as the net amount of products and services sold digitally or sold-in physically in the period. Net bookings is calculated by adding total net revenue to the change in deferred net revenue for online-enabled games. The following is a calculation of our total net bookings for the periods presented:Year Ended March 31,(In millions)20242023Total net revenue$7,562 $7,426 Change in deferred net revenue (online-enabled games)(132)(85)Net bookings$7,430 $7,341 Net bookings Net bookings were $7,430 million for fiscal year 2024 primarily driven by sales related to EA SPORTS FC 24, FIFA 23, Apex Legends, EA SPORTS Madden NFL 24, and The Sims 4. Net bookings increased $89 million or 1 percent as compared to fiscal year 2023 primarily due to a year-over-year increase in sales related to our global football franchise, driven by EA SPORTS FC 24, partially offset by decreased sales of extra content for Apex Legends, and fluctuations in foreign exchange rates, net of hedging activities. Live services and other net bookings were $5,425 million for fiscal year 2024, and decreased $105 million or 2 percent as compared to fiscal year 2023. The decrease in live services and other net bookings was due primarily to decreased sales of extra content for Apex Legends, and fluctuations in foreign exchange rates, net of hedging activities, partially offset by a year-over-year increase in extra content sales for Ultimate Team within our global football franchise, driven by EA SPORTS FC 24. Full game net bookings were $2,005 million for fiscal year 2024, and increased $194 million or 11 percent as compared to fiscal year 2023 primarily due to the releases of Star Wars Jedi: Survivor, and UFC 5, partially offset by the prior year releases of Dead Space Remake and Need for Speed Unbound. --- ## Modified: Acquisitions, investments, divestitures and other strategic transactions could result in operating difficulties and other negative consequences. **Key changes:** - Reworded sentence: "These acquisitions and other transactions involve significant challenges and risks including that the transaction does not advance our business strategy or strategic goals, that we do not realize a satisfactory return on our investment, cannot realize anticipated tax benefits or incur tax costs, that we acquire liabilities and/or litigation from acquired companies or liabilities and/or litigation results from the transactions, that our due diligence process does not identify significant issues, liabilities or other challenges, diversion of management's attention from our other businesses, and the incurrence of debt, contingent liabilities or amortization expenses, write-offs of goodwill, intangibles, or acquired in-process technology, or other increased cash and non-cash expenses." - Reworded sentence: "Additionally, we have divested and may in the future divest certain products and services that no longer fit our long-term strategies." **Prior (2023):** We have made and may continue to make acquisitions or enter into other strategic transactions including (1) acquisitions of companies, businesses, intellectual properties, and other assets, (2) investments in, or transactions with, strategic partners, and (3) investments in new businesses as part of our long-term business strategy. These acquisitions and other transactions involve significant challenges and risks including that the transaction does not advance our business strategy or strategic goals, that we do not realize a satisfactory return on our investment or cannot realize anticipated tax benefits, that we acquire liabilities and/or litigation from acquired companies or liabilities and/or litigation results from the transactions, that our due diligence process does not identify significant issues, liabilities or other challenges, diversion of management's attention from our other businesses, and the incurrence of debt, contingent liabilities or amortization expenses, write-offs of goodwill, intangibles, or acquired in-process technology, or other increased cash and non-cash expenses. In addition, we may not integrate these businesses successfully or achieve expected synergies. We may fund strategic transactions with (1) cash, which would reduce cash available for other corporate purposes, (2) debt, which would increase our interest expense and leverage and/or (3) equity which would dilute current shareholders' percentage ownership and also dilute our earnings per share. We also may divest or sell assets or a business and we may have difficulty selling such assets or business on acceptable terms in a timely manner. This could result in a delay in the achievement of our strategic objectives, cause us to incur additional expense, or the sale of such assets or business at a price or on terms that are less favorable than we anticipated. **Current (2024):** We have made and may continue to make acquisitions or enter into other strategic transactions including (1) acquisitions of companies, businesses, intellectual properties, and other assets, (2) investments in, or transactions with, strategic partners, and (3) investments in new businesses as part of our long-term business strategy. These acquisitions and other transactions involve significant challenges and risks including that the transaction does not advance our business strategy or strategic goals, that we do not realize a satisfactory return on our investment, cannot realize anticipated tax benefits or incur tax costs, that we acquire liabilities and/or litigation from acquired companies or liabilities and/or litigation results from the transactions, that our due diligence process does not identify significant issues, liabilities or other challenges, diversion of management's attention from our other businesses, and the incurrence of debt, contingent liabilities or amortization expenses, write-offs of goodwill, intangibles, or acquired in-process technology, or other increased cash and non-cash expenses. In addition, we may not integrate these businesses successfully or achieve expected synergies. We may fund strategic transactions with (1) cash, which would reduce cash available for other corporate purposes, (2) debt, which would increase our interest expense and leverage and/or (3) equity which would dilute current shareholders' percentage ownership and also dilute our earnings per share. Additionally, we have divested and may in the future divest certain products and services that no longer fit our long-term strategies. Divestitures may adversely impact our business, operating results and financial condition if we are unable to achieve the anticipated benefits or cost savings from such divestitures, or if we are unable to offset impacts from the loss of revenue associated with the divested product lines or technologies. --- ## Modified: Legal Proceedings **Key changes:** - Reworded sentence: "65 65 65 Table of Contents Table of Contents" **Prior (2023):** We are 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. 70 70 70 Table of Contents Table of Contents **Current (2024):** We are 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. 65 65 65 Table of Contents Table of Contents --- ## Modified: Accrued and Other Current Liabilities **Key changes:** - Reworded sentence: "Accrued and other current liabilities as of March 31, 2024 and 2023 consisted of (in millions): As of March 31, 20242023Accrued compensation and benefits$476 $436 Accrued royalties189 208 Deferred net revenue (other)59 103 Operating lease liabilities (See Note 13)66 66 Other accrued expenses286 382 Sales returns and price protection reserves90 90 Accrued and other current liabilities$1,166 $1,285 Operating lease liabilities (See Note 13) Operating lease liabilities (See Note 13) Operating lease liabilities (See Note 13 ) Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met." **Prior (2023):** Accrued and other current liabilities as of March 31, 2023 and 2022 consisted of (in millions): As of March 31, 20232022Accrued compensation and benefits$436 $500 Accrued royalties208 203 Deferred net revenue (other)103 156 Operating lease liabilities (See Note 13)66 81 Other accrued expenses382 304 Sales returns and price protection reserves90 144 Accrued and other current liabilities$1,285 $1,388 Accrued and other current liabilities as of March 31, 2023 and 2022 consisted of (in millions): Operating lease liabilities (See Note 13) Operating lease liabilities (See Note 13) Operating lease liabilities (See Note 13 ) Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met. **Current (2024):** Accrued and other current liabilities as of March 31, 2024 and 2023 consisted of (in millions): As of March 31, 20242023Accrued compensation and benefits$476 $436 Accrued royalties189 208 Deferred net revenue (other)59 103 Operating lease liabilities (See Note 13)66 66 Other accrued expenses286 382 Sales returns and price protection reserves90 90 Accrued and other current liabilities$1,166 $1,285 Operating lease liabilities (See Note 13) Operating lease liabilities (See Note 13) Operating lease liabilities (See Note 13 ) Deferred net revenue (other) includes the deferral of licensing arrangements, subscription revenue, and other revenue for which revenue recognition criteria has not been met. --- ## Modified: Financial Results **Key changes:** - Reworded sentence: "Our key financial results for our fiscal year ended March 31, 2024 were as follows: •Total net revenue was $7,562 million, up 2 percent year-over-year." **Prior (2023):** Our key financial results for our fiscal year ended March 31, 2023 were as follows: •Total net revenue was $7,426 million, up 6 percent year-over-year. •Live services and other net revenue was $5,489 million, up 10 percent year-over-year. •Gross margin was 75.9 percent, up 2.5 percentage points year-over-year. •Operating expenses were $4,302 million, up 7 percent year-over-year. •Operating income was $1,332 million, up 18 percent year-over-year. •Net income was $802 million, up 2 percent year-over-year. •Diluted earnings per share was $2.88, up 4 percent year-over-year. •Operating cash flow was $1,550 million, down 18 percent year-over-year. •Total cash, cash equivalents and short-term investments were $2,767 million. •We repurchased 10.4 million shares of our common stock for $1,295 million. •We paid cash dividends of $210 million during the fiscal year ended March 31, 2023. **Current (2024):** Our key financial results for our fiscal year ended March 31, 2024 were as follows: •Total net revenue was $7,562 million, up 2 percent year-over-year. •Live services and other net revenue was $5,547 million, up 1 percent year-over-year. •Gross margin was 77.4 percent, up 2 percentage points year-over-year. •Operating expenses were $4,334 million, up 1 percent year-over-year. •Operating income was $1,518 million, up 14 percent year-over-year. •Net income was $1,273 million with diluted earnings per share of $4.68. •Net cash provided by operating activities was $2,315 million, up 49 percent year-over-year. •Total cash, cash equivalents and short-term investments were $3,262 million. •We repurchased 10.0 million shares of our common stock for $1,300 million. •We paid cash dividends of $205 million during the fiscal year ended March 31, 2024. --- ## Modified: Net Revenue **Key changes:** - Reworded sentence: "Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games." **Prior (2023):** Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles, PCs and mobile phones and tablets (2) live services associated with these games, such as extra-content, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games. **Current (2024):** Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games. --- ## Modified: (7) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET **Key changes:** - Reworded sentence: "The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2024 are as follows (in millions): As of March 31, 2023ActivityEffects of Foreign Currency TranslationAs of March 31, 2024Goodwill$5,748 $ - $(1)$5,747 Accumulated impairment(368) - - (368)Total$5,380 $ - $(1)$5,379 As of" **Prior (2023):** The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2023 are as follows (in millions): As of March 31, 2022ActivityEffects of Foreign Currency TranslationAs of March 31, 2023Goodwill$5,755 $ - $(7)$5,748 Accumulated impairment(368) - - (368)Total$5,387 $ - $(7)$5,380 As of **Current (2024):** The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2024 are as follows (in millions): As of March 31, 2023ActivityEffects of Foreign Currency TranslationAs of March 31, 2024Goodwill$5,748 $ - $(1)$5,747 Accumulated impairment(368) - - (368)Total$5,380 $ - $(1)$5,379 As of --- ## Modified: Restricted Stock Units **Key changes:** - Added sentence: "67 67 67 Table of Contents Table of Contents Each restricted stock unit granted reduces the number of shares available for grant by 1.43 shares under our 2019 Equity Plan." - Added sentence: "The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2024: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20237,502 $128.54 Granted4,798 129.30 Vested(4,015)129.71 Forfeited or cancelled(805)129.37 Outstanding as of March 31, 20247,480 $128.31 Outstanding as of March 31, 2023 Outstanding as of March 31, 2024 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant." - Added sentence: "The weighted-average grant date fair values of restricted stock units granted during fiscal years 2024, 2023, and 2022 were $129.30, $126.41, and $136.78, respectively." - Added sentence: "The fair values of restricted stock units that vested during fiscal years 2024, 2023, and 2022 were $519 million, $460 million, and $457 million, respectively." **Prior (2023):** We grant restricted stock units under our 2019 Equity Plan to employees worldwide. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units are typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Vesting for restricted stock units is based on the holders' continued employment with us through each applicable vest date. If the vesting conditions are not met, unvested restricted stock units will be forfeited. Our restricted stock units generally vest over 35 months to four years. **Current (2024):** We grant restricted stock units under our 2019 Equity Plan to employees worldwide. Restricted stock units are unfunded, unsecured rights to receive common stock upon the satisfaction of certain vesting criteria. Upon vesting, a number of shares of common stock equivalent to the number of restricted stock units are typically issued net of required tax withholding requirements, if any. Restricted stock units are subject to forfeiture and transfer restrictions. Vesting for restricted stock units is based on the holders' continued employment with us through each applicable vest date. If the vesting conditions are not met, unvested restricted stock units will be forfeited. Our restricted stock units generally vest over 35 months to four years. 67 67 67 Table of Contents Table of Contents Each restricted stock unit granted reduces the number of shares available for grant by 1.43 shares under our 2019 Equity Plan. The following table summarizes our restricted stock units activity, excluding performance-based and market-based restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2024: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20237,502 $128.54 Granted4,798 129.30 Vested(4,015)129.71 Forfeited or cancelled(805)129.37 Outstanding as of March 31, 20247,480 $128.31 Outstanding as of March 31, 2023 Outstanding as of March 31, 2024 The grant date fair value of restricted stock units is based on the quoted market price of our common stock on the date of grant. The weighted-average grant date fair values of restricted stock units granted during fiscal years 2024, 2023, and 2022 were $129.30, $126.41, and $136.78, respectively. The fair values of restricted stock units that vested during fiscal years 2024, 2023, and 2022 were $519 million, $460 million, and $457 million, respectively. --- ## Modified: CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY **Key changes:** - Reworded sentence: "(In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances as of March 31, 2021286,465 $3 $ - $7,887 $(50)$7,840 Total comprehensive income (loss) - - - 789 65 854 Stock-based compensation - - 528 - - 528 Awards assumed upon acquisition - - 23 - - 23 Issuance of common stock3,108 - (127) - - (127)Common stock repurchases(9,522) - (424)(876) - (1,300)Cash dividends declared ($0.68 per common share) - - - (193) - (193)Balances as of March 31, 2022280,051 $3 $ - $7,607 $15 $7,625 Total comprehensive income (loss) - - - 802 (82)720 Stock-based compensation - - 548 - - 548 Issuance of common stock3,311 - (95) - - (95)Common stock repurchases(10,448) - (453)(842) - (1,295)Cash dividends declared ($0.76 per common share) - - - (210) - (210)Balances as of March 31, 2023272,914 $3 $ - $7,357 $(67)$7,293 Total comprehensive income (loss) - - - 1,273 (5)1,268 Stock-based compensation - - 584 - - 584 Issuance of common stock3,496 - (119) - - (119)Common stock repurchases and excise tax(9,995) - (465)(843) - (1,308)Cash dividends declared ($0.76 per common share) - - - (205) - (205)Balances as of March 31, 2024266,415 $3 $ - $7,582 $(72)$7,513 Cash dividends declared ($0.68 per common share) Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) See accompanying Notes to Consolidated Financial Statements." **Prior (2023):** (In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances as of March 31, 2020288,413 $3 $ - $7,508 $(50)$7,461 Total comprehensive income (loss) - - - 837 - 837 Stock-based compensation - - 435 - - 435 Issuance of common stock3,685 - (66) - - (66)Repurchase and retirement of common stock(5,633) - (369)(360) - (729)Cash dividends declared ($0.34 per common share) - - - (98) - (98)Balances as of March 31, 2021286,465 $3 $ - $7,887 $(50)$7,840 Total comprehensive income (loss) - - - 789 65 854 Stock-based compensation - - 528 - - 528 Awards assumed upon acquisition - - 23 - - 23 Issuance of common stock3,108 - (127) - - (127)Repurchase and retirement of common stock(9,522) - (424)(876) - (1,300)Cash dividends declared ($0.68 per common share) - - - (193) - (193)Balances as of March 31, 2022280,051 $3 $ - $7,607 $15 $7,625 Total comprehensive income (loss) - - - 802 (82)720 Stock-based compensation - - 548 - - 548 Issuance of common stock3,311 - (95) - - (95)Repurchase and retirement of common stock(10,448) - (453)(842) - (1,295)Cash dividends declared ($0.76 per common share) - - - (210) - (210)Balances as of March 31, 2023272,914 $3 $ - $7,357 $(67)$7,293 Cash dividends declared ($0.34 per common share) Cash dividends declared ($0.68 per common share) Cash dividends declared ($0.76 per common share) See accompanying Notes to Consolidated Financial Statements. 40 40 40 Table of Contents Table of Contents **Current (2024):** (In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances as of March 31, 2021286,465 $3 $ - $7,887 $(50)$7,840 Total comprehensive income (loss) - - - 789 65 854 Stock-based compensation - - 528 - - 528 Awards assumed upon acquisition - - 23 - - 23 Issuance of common stock3,108 - (127) - - (127)Common stock repurchases(9,522) - (424)(876) - (1,300)Cash dividends declared ($0.68 per common share) - - - (193) - (193)Balances as of March 31, 2022280,051 $3 $ - $7,607 $15 $7,625 Total comprehensive income (loss) - - - 802 (82)720 Stock-based compensation - - 548 - - 548 Issuance of common stock3,311 - (95) - - (95)Common stock repurchases(10,448) - (453)(842) - (1,295)Cash dividends declared ($0.76 per common share) - - - (210) - (210)Balances as of March 31, 2023272,914 $3 $ - $7,357 $(67)$7,293 Total comprehensive income (loss) - - - 1,273 (5)1,268 Stock-based compensation - - 584 - - 584 Issuance of common stock3,496 - (119) - - (119)Common stock repurchases and excise tax(9,995) - (465)(843) - (1,308)Cash dividends declared ($0.76 per common share) - - - (205) - (205)Balances as of March 31, 2024266,415 $3 $ - $7,582 $(72)$7,513 Cash dividends declared ($0.68 per common share) Cash dividends declared ($0.76 per common share) Cash dividends declared ($0.76 per common share) See accompanying Notes to Consolidated Financial Statements. 37 37 37 Table of Contents Table of Contents --- ## Modified: Stock Repurchases **Prior (2023):** Shares of our common stock repurchased pursuant to our repurchase program, if any, are retired. The purchase price of such repurchased shares of common stock is recorded as a reduction to additional paid-in capital. If the balance in additional paid-in capital is exhausted, the excess is recorded as a reduction to retained earnings. **Current (2024):** Shares of our common stock repurchased pursuant to our repurchase program, if any, are retired. The purchase price of such repurchased shares of common stock is recorded as a reduction to additional paid-in capital. If the balance in additional paid-in capital is exhausted, the excess is recorded as a reduction to retained earnings. --- ## Modified: At March 31, 2023 **Key changes:** - Reworded sentence: "63 63 63 Table of Contents Table of Contents Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2024 and 2023 are as follows (in millions):As of March 31,Balance Sheet Classification20242023Operating lease ROU assets$243 $276 Other assetsOperating lease liabilities$66 $66 Accrued and other current liabilitiesNoncurrent operating lease liabilities248 277 Other liabilitiesTotal operating lease liabilities$314 $343 Operating lease ROU assets Operating lease ROU assets Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2024 were as follows (in millions): Fiscal Years Ending March 31,2025$74 202661 202746 202837 202926 Thereafter112 Total future lease payments356 Less imputed interest(42)Total operating lease liabilities$314 In addition to the amounts included in the table above, as of March 31, 2024, we have entered into an office lease that has not yet commenced with aggregate future lease payments of approximately $98 million." **Prior (2023):** 68 68 68 Table of Contents Table of Contents Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2023 and 2022 are as follows (in millions):As of March 31,Balance Sheet Classification20232022Operating lease ROU assets$276 $314 Other assetsOperating lease liabilities$66 $81 Accrued and other current liabilitiesNoncurrent operating lease liabilities277 272 Other liabilitiesTotal operating lease liabilities$343 $353 Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2023 and 2022 are as follows (in millions): Operating lease ROU assets Operating lease ROU assets Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2023 were as follows (in millions): Fiscal Years Ending March 31,2024$73 202569 202656 202741 202832 Thereafter116 Total future lease payments387 Less imputed interest(44)Total operating lease liabilities$343 In addition to the amounts included in the table above, as of March 31, 2023, we have entered into an office lease that has not yet commenced with aggregate future lease payments of approximately $98 million. This lease is expected to commence in fiscal year 2024, and will have a lease term of 12 years. 69 69 69 Table of Contents Table of Contents **Current (2024):** 63 63 63 Table of Contents Table of Contents Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2024 and 2023 are as follows (in millions):As of March 31,Balance Sheet Classification20242023Operating lease ROU assets$243 $276 Other assetsOperating lease liabilities$66 $66 Accrued and other current liabilitiesNoncurrent operating lease liabilities248 277 Other liabilitiesTotal operating lease liabilities$314 $343 Operating lease ROU assets Operating lease ROU assets Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2024 were as follows (in millions): Fiscal Years Ending March 31,2025$74 202661 202746 202837 202926 Thereafter112 Total future lease payments356 Less imputed interest(42)Total operating lease liabilities$314 In addition to the amounts included in the table above, as of March 31, 2024, we have entered into an office lease that has not yet commenced with aggregate future lease payments of approximately $98 million. This lease is expected to commence in fiscal year 2025, and will have a lease term of 12 years. 64 64 64 Table of Contents Table of Contents --- ## Modified: Advertising Costs **Key changes:** - Reworded sentence: "We are reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors." - Reworded sentence: "Vendor reimbursements of advertising costs of $12 million, $37 million, and $37 million reduced marketing and sales expense for the fiscal years ended March 31, 2024, 2023, and 2022, respectively." **Prior (2023):** We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. Cooperative advertising costs are recognized when incurred and are classified as marketing and sales expense if there is a separate identifiable benefit for which we can reasonably estimate the fair value of the benefit identified. Otherwise, they are classified as a reduction of revenue and are generally accrued when revenue is recognized. We then reimburse the channel partner when qualifying claims are submitted. We are also reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Otherwise, vendor reimbursements are recognized as a reduction of the cost incurred with the same vendor. Vendor reimbursements of advertising costs of $37 million, $37 million, and $22 million reduced marketing and sales expense for the fiscal years ended March 31, 2023, 2022, and 2021, respectively. For the fiscal years ended March 31, 2023, 2022, and 2021, advertising expense, net of vendor reimbursements, totaled approximately $348 million, $396 million, and $222 million, respectively. **Current (2024):** We generally expense advertising costs as incurred, except for production costs associated with media campaigns, which are recognized as prepaid assets (to the extent paid in advance) and expensed at the first run of the advertisement. We are reimbursed by our vendors for certain advertising costs incurred by us that benefit our vendors. Such amounts are recognized as a reduction of marketing and sales expense if the advertising (1) is specific to the vendor, (2) represents an identifiable benefit to us, and (3) represents an incremental cost to us. Vendor reimbursements of advertising costs of $12 million, $37 million, and $37 million reduced marketing and sales expense for the fiscal years ended March 31, 2024, 2023, and 2022, respectively. For the fiscal years ended March 31, 2024, 2023, and 2022, advertising expense, net of vendor reimbursements, totaled approximately $375 million, $348 million, and $396 million, respectively. --- ## Modified: Stock Options **Key changes:** - Reworded sentence: "All outstanding options were fully vested and exercisable as of March 31, 2024." **Prior (2023):** Options granted under the 2019 Equity Plan and the 2000 Equity Plan generally expire ten years from the date of grant. All outstanding options were fully vested and exercisable as of March 31, 2023. ten The following table summarizes our stock option activity for the fiscal year ended March 31, 2023: Options(in thousands)Weighted-AverageExercise PricesWeighted-AverageRemainingContractualTerm (in years)AggregateIntrinsic Value(in millions)Outstanding as of March 31, 2022286 $39.28 Granted4 123.23 Exercised(168)40.10 Forfeited, cancelled or expired(1)64.95 Outstanding as of March 31, 2023121 $40.43 2.00$10 Vested and expected to vest121 $40.43 2.00$10 Exercisable as of March 31, 2023120 $40.25 1.99$10 Outstanding as of March 31, 2022 Outstanding as of March 31, 2023 Exercisable as of March 31, 2023 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2023, which would have been received by the option holders had all the option holders exercised their options as of that date. The total intrinsic values of stock options exercised during fiscal years 2023, 2022, and 2021 were $15 million, $8 million, and $76 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock options. **Current (2024):** Options granted under the 2019 Equity Plan and the 2000 Equity Plan generally expire ten years from the date of grant. All outstanding options were fully vested and exercisable as of March 31, 2024. The following table summarizes our stock option activity for the fiscal year ended March 31, 2024: Options(in thousands)Weighted-AverageExercise PricesWeighted-AverageRemainingContractualTerm (in years)AggregateIntrinsic Value(in millions)Outstanding as of March 31, 2023121 $40.43 Granted3 131.04 Exercised(112)40.49 Forfeited, cancelled or expired - - Outstanding as of March 31, 202412 $64.00 3.95$1 Vested and expected to vest12 $64.00 3.95$1 Exercisable as of March 31, 202412 $64.00 3.95$1 Outstanding as of March 31, 2023 Outstanding as of March 31, 2024 Exercisable as of March 31, 2024 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2024, which would have been received by the option holders had all the option holders exercised their options as of that date. The total intrinsic values of stock options exercised during fiscal years 2024, 2023, and 2022 were $10 million, $15 million, and $8 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock options. --- ## Modified: As of March 31, 2023 **Key changes:** - Reworded sentence: "The effects of cash flow hedge accounting in our Consolidated Statements of Operations for the fiscal years ended March 31, 2024, 2023, and 2022 are as follows (in millions):Year Ended March 31,202420232022Net revenueResearch and developmentNet revenueResearch and developmentNet revenueResearch and developmentTotal amounts presented in our Consolidated Statements of Operations in which the effects of cash flow hedges are recorded$7,562 $2,420 $7,426 $2,328 $6,991 $2,186 Gains (losses) on foreign currency forward contracts designated as cash flow hedges$56 $(8)$185 $(18)$(14)$12" **Prior (2023):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): As of March 31, 2023As of March 31, 2022 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$267 $266 $250 $249 Due 1 year through 5 years72 72 77 76 Due after 5 years5 5 5 5 Short-term investments$344 $343 $332 $330 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): **Current (2024):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$231 $231 $267 $266 Due 1 year through 5 years126 126 72 72 Due after 5 years5 5 5 5 Short-term investments$362 $362 $344 $343 --- ## Modified: As of March 31, 2023 **Key changes:** - Reworded sentence: "In-process research and development Amortization of intangibles, including impairments, for the fiscal years ended March 31, 2024, 2023, and 2022 are classified in the Consolidated Statements of Operations as follows (in millions): Year Ended March 31, 202420232022Cost of revenue$76 $120 $133 Operating expenses142 158 183 Restructuring - 66 - Total$218 $344 $316 During fiscal year 2024, we recorded impairment charges of $70 million for acquisition-related intangible assets, of which $53 million was recorded within operating expenses and $17 million was recorded within cost of revenue." - Reworded sentence: "52 52 52 Table of Contents Table of Contents Acquisition-related intangible assets are generally amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, currently ranging from 2 to 7 years." **Prior (2023):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): As of March 31, 2023As of March 31, 2022 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$267 $266 $250 $249 Due 1 year through 5 years72 72 77 76 Due after 5 years5 5 5 5 Short-term investments$344 $343 $332 $330 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): **Current (2024):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$231 $231 $267 $266 Due 1 year through 5 years126 126 72 72 Due after 5 years5 5 5 5 Short-term investments$362 $362 $344 $343 --- ## Modified: Interest Expense **Key changes:** - Reworded sentence: "The following table summarizes our interest expense recognized for fiscal years 2024, 2023, and 2022 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202420232022Amortization of debt discount$ - $(1)$(1)Amortization of debt issuance costs(2)(2)(2)Coupon interest expense(55)(55)(55)Other interest expense(1) - - Total interest expense$(58)$(58)$(58) 62 62 62 Table of Contents Table of Contents" **Prior (2023):** The following table summarizes our interest expense recognized for fiscal years 2023, 2022 and 2021 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202320222021Amortization of debt discount$(1)$(1)$ - Amortization of debt issuance costs(2)(2)(2)Coupon interest expense(55)(55)(43)Total interest expense$(58)$(58)$(45) 67 67 67 Table of Contents Table of Contents **Current (2024):** The following table summarizes our interest expense recognized for fiscal years 2024, 2023, and 2022 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202420232022Amortization of debt discount$ - $(1)$(1)Amortization of debt issuance costs(2)(2)(2)Coupon interest expense(55)(55)(55)Other interest expense(1) - - Total interest expense$(58)$(58)$(58) 62 62 62 Table of Contents Table of Contents --- ## Modified: Assets and Liabilities Measured at Fair Value on a Recurring Basis **Key changes:** - Reworded sentence: "As of March 31, 2024 and 2023, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2024Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds1,038 1,038 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds130 - 130 - Short-term investmentsU.S." **Prior (2023):** As of March 31, 2023 and 2022, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2023Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$56 $56 $ - $ - Cash equivalentsMoney market funds956 956 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds113 - 113 - Short-term investmentsU.S. Treasury securities80 80 - - Short-term investmentsU.S. agency securities28 - 28 - Short-term investments and cash equivalentsCommercial paper66 - 66 - Short-term investments and cash equivalentsForeign government securities11 - 11 - Short-term investmentsAsset-backed securities37 - 37 - Short-term investmentsCertificates of deposit14 - 14 - Short-term investmentsForeign currency derivatives29 - 29 - Other current assets and other assetsDeferred compensation plan assets (a)23 23 - - Other assetsTotal assets at fair value$1,413 $1,115 $298 $ - LiabilitiesForeign currency derivatives$65 $ - $65 $ - Accrued and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)24 24 - - Other liabilitiesTotal liabilities at fair value$89 $24 $65 $ - As of March 31, 2023 and 2022, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): As of **Current (2024):** As of March 31, 2024 and 2023, our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using As of March 31, 2024Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds1,038 1,038 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds130 - 130 - Short-term investmentsU.S. Treasury securities95 95 - - Short-term investmentsU.S. agency securities9 - 9 - Short-term investmentsCommercial paper74 - 74 - Short-term investments and cash equivalentsForeign government securities8 - 8 - Short-term investmentsAsset-backed securities41 - 41 - Short-term investmentsCertificates of deposit13 - 13 - Short-term investmentsForeign currency derivatives29 - 29 - Other current assets and other assetsDeferred compensation plan assets (a)30 30 - - Other assetsTotal assets at fair value$1,525 $1,221 $304 $ - LiabilitiesForeign currency derivatives$20 $ - $20 $ - Accrued and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)31 31 - - Other liabilitiesTotal liabilities at fair value$51 $31 $20 $ - As of --- ## Modified: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions)202420232022Net income$1,273 $802 $789 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities1 2 (3)Net gains (losses) on derivative instruments(3)(34)76 Foreign currency translation adjustments(3)(50)(8)Total other comprehensive income (loss), net of tax(5)(82)65 Total comprehensive income$1,268 $720 $854 See accompanying Notes to Consolidated Financial Statements." **Prior (2023):** Year Ended March 31,(In millions)202320222021Net income$802 $789 $837 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities2 (3)4 Net gains (losses) on derivative instruments(34)76 (68)Foreign currency translation adjustments(50)(8)64 Total other comprehensive income (loss), net of tax(82)65 - Total comprehensive income$720 $854 $837 See accompanying Notes to Consolidated Financial Statements. 39 39 39 Table of Contents Table of Contents **Current (2024):** Year Ended March 31,(In millions)202420232022Net income$1,273 $802 $789 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities1 2 (3)Net gains (losses) on derivative instruments(3)(34)76 Foreign currency translation adjustments(3)(50)(8)Total other comprehensive income (loss), net of tax(5)(82)65 Total comprehensive income$1,268 $720 $854 See accompanying Notes to Consolidated Financial Statements. 36 36 36 Table of Contents Table of Contents --- ## Modified: Net Revenue by Composition **Key changes:** - Reworded sentence: "Our net revenue by composition for fiscal years 2024 and 2023 was as follows (in millions):Year Ended March 31,20242023$ Change% ChangeNet revenue:Full game downloads$1,343 $1,262 $81 6 %Packaged goods672 675 (3) - %Full game$2,015 $1,937 $78 4 %Live services and other$5,547 $5,489 $58 1 %Total net revenue$7,562 $7,426 $136 2 % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods." - Reworded sentence: "Live services and other net revenue for fiscal year 2024 was $5,547 million, primarily driven by sales of extra content for FIFA 23, EA SPORTS FC 24, Apex Legends, The Sims 4, and our global football mobile business." **Prior (2023):** Our net revenue by composition for fiscal years 2023 and 2022 was as follows (in millions):Year Ended March 31,20232022$ Change% ChangeNet revenue:Full game downloads$1,262 $1,282 $(20)(2)%Packaged goods675 711 (36)(5)%Full game$1,937 $1,993 $(56)(3)%Live services and other$5,489 $4,998 $491 10 %Total net revenue$7,426 $6,991 $435 6 % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily includes revenue from digital sales of full games on console, PC, mobile phones and tablets. Packaged goods primarily includes revenue from software that is sold physically through traditional channels such as brick and mortar retailers and certain licensing revenue. Full game net revenue for fiscal year 2023 was $1,937 million, primarily driven by FIFA 23, Madden NFL 23, Battlefield 2042, and FIFA 22. Full game net revenue for fiscal year 2023 decreased $56 million, or 3 percent, as compared to fiscal year 2022. This decrease was primarily due to the prior year releases of Mass Effect Trilogy Remaster and It Takes Two, and The Sims 4, partially offset by the release of Dead Space Remake and growth in the FIFA franchise. Live Services and Other Net Revenue Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. Live services and other net revenue for fiscal year 2023 was $5,489 million, primarily driven by sales of extra content for FIFA Ultimate Team, Apex Legends, The Sims 4, and Madden Ultimate Team. Live services and other net revenue for fiscal year 2023 increased $491 million, or 10 percent, as compared to fiscal year 2022. This increase was primarily driven by sales of 28 28 28 Table of Contents Table of Contents extra content for Apex Legends, extra content and licensing for our FIFA franchise, and the addition of Golf Clash, partially offset by the Star Wars franchise. **Current (2024):** Our net revenue by composition for fiscal years 2024 and 2023 was as follows (in millions):Year Ended March 31,20242023$ Change% ChangeNet revenue:Full game downloads$1,343 $1,262 $81 6 %Packaged goods672 675 (3) - %Full game$2,015 $1,937 $78 4 %Live services and other$5,547 $5,489 $58 1 %Total net revenue$7,562 $7,426 $136 2 % Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily includes revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from software that is sold physically through traditional channels such as brick and mortar retailers. Full game net revenue for fiscal year 2024 was $2,015 million, primarily driven by EA SPORTS FC 24, Star Wars Jedi: Survivor, EA SPORTS Madden NFL 24, and FIFA 23. Full game net revenue for fiscal year 2024 increased $78 million, or 4 percent, as compared to fiscal year 2023. This increase was primarily driven by the release of Star Wars Jedi: Survivor, partially offset by Battlefield 2042. Live Services and Other Net Revenue Live services and other net revenue primarily includes revenue from sales of extra content for console, PC, and mobile games, certain licensing revenue, subscriptions, and advertising. Live services and other net revenue for fiscal year 2024 was $5,547 million, primarily driven by sales of extra content for FIFA 23, EA SPORTS FC 24, Apex Legends, The Sims 4, and our global football mobile business. Live services and other net revenue for fiscal year 2024 increased $58 million, or 1 percent, as compared to fiscal year 2023. This increase was primarily driven by 26 26 26 Table of Contents Table of Contents sales of extra content for Ultimate Team within our global football franchise, partially offset by a decrease in net revenue primarily due to decreased sales of extra content for Apex Legends, and within our casual mobile catalog portfolio. --- ## Modified: Development, Celebrity, Professional Sports Organizations and Other Content Licenses: Payments and Commitments **Key changes:** - Reworded sentence: "In addition, we have certain celebrity, professional sports organizations and other content license contracts that contain minimum guarantee payments and marketing commitments to promote the games we publish that may not be dependent on any deliverables." **Prior (2023):** The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers ("independent artists" or "third-party developers"). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain celebrity, professional sports organizations and content license contracts that contain minimum guarantee payments and marketing commitments to promote the games we publish that may not be dependent on any deliverables. These developer and content license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the minimum guaranteed payments and advances against royalties due under royalty-bearing licenses and services agreements, the majority of which are conditional upon performance by the counterparty. These minimum guarantee payments and any related marketing commitments are included in the table below. The following table summarizes our minimum contractual obligations as of March 31, 2023 (in millions): Fiscal Years Ending March 31,Total20242025202620272028ThereafterUnrecognized commitmentsDeveloper/licensor commitments$2,011 $349 $480 $434 $384 $146 $218 Marketing commitments971 256 245 197 154 67 52 Senior Notes interest781 49 55 54 36 36 551 Operating lease imputed interest44 10 8 7 5 4 10 Operating leases not yet commenced98 - 3 8 8 8 71 Other purchase obligations201 130 51 14 4 2 - Total unrecognized commitments4,106 794 842 714 591 263 902 Recognized commitmentsSenior Notes principal and interest1,906 6 - 400 - - 1,500 Operating leases387 73 69 56 41 32 116 Transition Tax and other taxes17 4 6 7 - - - Total recognized commitments2,310 83 75 463 41 32 1,616 Total Commitments$6,416 $877 $917 $1,177 $632 $295 $2,518 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, 2023; however, certain payment obligations may be accelerated depending on the performance of our operating results. In addition to the amounts included in the table above, in our Consolidated Balance Sheets as of March 31, 2023, we had a net liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $594 million, of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. Subsequent to March 31, 2023, we entered into certain agreements with third parties which are not included in the table above, and contingently commit us to pay an additional $125 million at various dates through fiscal year 2028. **Current (2024):** The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers ("independent artists" or "third-party developers"). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain celebrity, professional sports organizations and other content license contracts that contain minimum guarantee payments and marketing commitments to promote the games we publish that may not be dependent on any deliverables. These developer and content license commitments represent the sum of the cash payments for flat fees, minimum guaranteed payments, and service payments. The majority of these commitments are conditional upon performance by the counterparty. These payments and any related marketing and development commitments are included in the table below. The following table summarizes our minimum contractual obligations as of March 31, 2024 (in millions): Fiscal Years Ending March 31,Total20252026202720282029ThereafterUnrecognized commitmentsDeveloper/licensor commitments$1,948 $343 $473 $476 $216 $210 $230 Marketing commitments1,364 247 276 280 199 111 251 Senior Notes interest725 49 54 36 36 36 514 Operating lease imputed interest42 10 8 6 5 4 9 Operating leases not yet commenced98 6 8 8 8 8 60 Other purchase obligations436 215 160 49 10 2 - Total unrecognized commitments4,613 870 979 855 474 371 1,064 Recognized commitmentsSenior Notes principal and interest1,906 6 400 - - - 1,500 Operating leases314 64 53 40 32 22 103 Transition Tax and other taxes13 6 7 - - - - Total recognized commitments2,233 76 460 40 32 22 1,603 Total Commitments$6,846 $946 $1,439 $895 $506 $393 $2,667 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, 2024; however, certain payment obligations may be accelerated depending on the performance of our operating results. In addition to the amounts included in the table above, in our Consolidated Balance Sheets as of March 31, 2024, we had a net liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $490 million, of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. --- ## Modified: Index to Consolidated Financial Statements **Key changes:** - Reworded sentence: "and Subsidiaries:Consolidated Balance Sheets as of March 31, 2024 and 202334Consolidated Statements of Operations for the Years Ended March 31, 2024, 2023, and 202235Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2024, 2023, and 202236Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2024, 2023, and 202237Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2023, and 202238Notes to Consolidated Financial Statements39Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)76 Consolidated Balance Sheets as of March 31, 2024 and 2023 34 Consolidated Statements of Operations for the Years Ended March 31, 2024, 2023, and 2022 35 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2024, 2023, and 2022 36 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2024, 2023, and 2022 37 Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2023, and 2022 38 Notes to Consolidated Financial Statements 39 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 76 33 33 33 Table of Contents Table of Contents" **Prior (2023):** PageConsolidated Financial Statements of Electronic Arts Inc. and Subsidiaries:Consolidated Balance Sheets as of March 31, 2023 and 202237Consolidated Statements of Operations for the Years Ended March 31, 2023, 2022 and 202138Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2023, 2022 and 202139Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2023, 2022 and 202140Consolidated Statements of Cash Flows for the Years Ended March 31, 2023, 2022 and 202141Notes to Consolidated Financial Statements42Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)81 Consolidated Balance Sheets as of March 31, 2023 and 2022 37 Consolidated Statements of Operations for the Years Ended March 31, 2023, 2022 and 2021 38 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2023, 2022 and 2021 39 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2023, 2022 and 2021 40 Consolidated Statements of Cash Flows for the Years Ended March 31, 2023, 2022 and 2021 41 Notes to Consolidated Financial Statements 42 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 81 36 36 36 Table of Contents Table of Contents **Current (2024):** PageConsolidated Financial Statements of Electronic Arts Inc. and Subsidiaries:Consolidated Balance Sheets as of March 31, 2024 and 202334Consolidated Statements of Operations for the Years Ended March 31, 2024, 2023, and 202235Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2024, 2023, and 202236Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2024, 2023, and 202237Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2023, and 202238Notes to Consolidated Financial Statements39Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)76 Consolidated Balance Sheets as of March 31, 2024 and 2023 34 Consolidated Statements of Operations for the Years Ended March 31, 2024, 2023, and 2022 35 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2024, 2023, and 2022 36 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2024, 2023, and 2022 37 Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, 2023, and 2022 38 Notes to Consolidated Financial Statements 39 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 76 33 33 33 Table of Contents Table of Contents --- ## Modified: Property and Equipment, Net **Key changes:** - Reworded sentence: "Property and equipment, net, as of March 31, 2024 and 2023 consisted of (in millions): As of March 31, 20242023Computer, equipment and software$965 $892 Buildings376 369 Leasehold improvements190 186 Equipment, furniture and fixtures, and other92 92 Land67 66 Construction in progress47 11 1,737 1,616 Less: accumulated depreciation(1,159)(1,067)Property and equipment, net$578 $549 Depreciation expense associated with property and equipment was $196 million, $193 million and $162 million for the fiscal years ended March 31, 2024, 2023, and 2022, respectively." **Prior (2023):** Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 yearsComputer equipment and software 2 to 6 yearsEquipment, furniture and fixtures, and other 3 to 5 yearsLeasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 15 years 20 to 25 years 2 to 6 years 3 to 5 years Lesser of the lease term or the estimated useful lives of the improvements, generally 1 to 15 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset's estimated useful life, which is generally three years. We also capitalize costs associated with the purchase of possessable internal-use software licenses. The net book value of capitalized costs associated with internal-use software was $90 million and $86 million as of March 31, 2023 and 2022, respectively. 44 44 44 Table of Contents Table of Contents **Current (2024):** Property and equipment, net, are stated at cost. Depreciation is calculated using the straight-line method over the following useful lives: Buildings 20 to 25 yearsComputer equipment and software 2 to 6 yearsEquipment, furniture and fixtures, and other 3 to 5 yearsLeasehold improvements Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 15 years 20 to 25 years 2 to 6 years 3 to 5 years Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 15 years We capitalize costs associated with internal-use software development once a project has reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the software, and payroll and payroll-related expenses for employees who are directly associated with the development of the software. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Once internal-use software is ready for its intended use, the assets are depreciated on a straight-line basis over each asset's estimated useful life, which is generally three years. We also capitalize costs associated with the purchase of possessable internal-use software licenses. The net book value of capitalized costs associated with internal-use software was $93 million and $90 million as of March 31, 2024 and 2023, respectively. 40 40 40 Table of Contents Table of Contents --- ## Modified: Deferred net revenue **Key changes:** - Reworded sentence: "Deferred net revenue as of March 31, 2024 and 2023, consisted of (in millions):As of March 31,20242023Deferred net revenue (online-enabled games)$1,814 $1,901 Deferred net revenue (other)59 103 Deferred net revenue (noncurrent)85 67 Total deferred net revenue$1,958 $2,071 During the fiscal years ended March 31, 2024 and 2023, we recognized $1,987 million and $2,176 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period." **Prior (2023):** Deferred net revenue as of March 31, 2023 and 2022, consisted of (in millions):As of March 31,20232022Deferred net revenue (online-enabled games)$1,901 $2,024 Deferred net revenue (other)103 156 Deferred net revenue (noncurrent)67 68 Total deferred net revenue$2,071 $2,248 Deferred net revenue as of March 31, 2023 and 2022, consisted of (in millions): During the fiscal years ended March 31, 2023 and 2022, we recognized $2,176 million and $1,613 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period. 60 60 60 Table of Contents Table of Contents **Current (2024):** Deferred net revenue as of March 31, 2024 and 2023, consisted of (in millions):As of March 31,20242023Deferred net revenue (online-enabled games)$1,814 $1,901 Deferred net revenue (other)59 103 Deferred net revenue (noncurrent)85 67 Total deferred net revenue$1,958 $2,071 During the fiscal years ended March 31, 2024 and 2023, we recognized $1,987 million and $2,176 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period. 56 56 56 Table of Contents Table of Contents --- ## Modified: Remaining Performance Obligations **Key changes:** - Reworded sentence: "As of March 31, 2024, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,958 million." - Reworded sentence: "57 57 57 Table of Contents Table of Contents" **Prior (2023):** As of March 31, 2023, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $2,071 million. These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. We expect to recognize substantially all of the current portion of deferred net revenue as revenue over the next 12 months. 61 61 61 Table of Contents Table of Contents **Current (2024):** As of March 31, 2024, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,958 million. These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. 57 57 57 Table of Contents Table of Contents --- ## Modified: Office Space Reductions (b) **Key changes:** - Reworded sentence: "The restructuring liability of $24 million as of March 31, 2024, is included in accrued and other current liabilities on the Consolidated Balance Sheets." **Prior (2023):** Charges to operations (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations. (b) Charges are recorded within General and administrative expenses in the Consolidated Statement of Operations. The restructuring liability of $35 million as of March 31, 2023, is included in accrued and other current liabilities on the Consolidated Balance Sheets. See Note 13 - Leases for additional information on our office space reduction activities, and remaining lease liabilities associated with those activities continue to be recognized and disclosed in that note. 58 58 58 Table of Contents Table of Contents **Current (2024):** Charges to operations (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations. (b) Charges are recorded within General and administrative expenses in the Consolidated Statement of Operations. The restructuring liability of $24 million as of March 31, 2024, is included in accrued and other current liabilities on the Consolidated Balance Sheets. 54 54 54 Table of Contents Table of Contents --- ## Modified: March 31, 2024 **Key changes:** - Reworded sentence: "Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 47 47 47 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2023Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$56 $56 $ - $ - Cash equivalentsMoney market funds956 956 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds113 - 113 - Short-term investments U.S." - Reworded sentence: "48 48 48 Table of Contents Table of Contents" **Prior (2023):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 51 51 51 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2022 Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$55 $55 $ - $ - Cash equivalentsMoney market funds257 257 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds116 - 116 - Short-term investments and cash equivalentsU.S. Treasury securities104 104 - - Short-term investments and cash equivalentsCommercial paper51 - 51 - Short-term investments and cash equivalentsForeign government securities17 - 17 - Short-term investmentsAsset-backed securities38 - 38 - Short-term investmentsCertificates of deposit 18 - 18 - Short-term investmentsForeign currency derivatives63 - 63 - Other current assets and other assetsDeferred compensation plan assets (a)21 21 - - Other assetsTotal assets at fair value$740 $437 $303 $ - LiabilitiesForeign currency derivatives$14 $ - $14 $ - Accrued and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)22 22 - - Other liabilitiesTotal liabilities at fair value$36 $22 $14 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. 52 52 52 Table of Contents Table of Contents **Current (2024):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 47 47 47 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2023Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$56 $56 $ - $ - Cash equivalentsMoney market funds956 956 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds113 - 113 - Short-term investments U.S. Treasury securities80 80 - - Short-term investments U.S. agency securities28 - 28 - Short-term investments and cash equivalentsCommercial paper66 - 66 - Short-term investments and cash equivalentsForeign government securities11 - 11 - Short-term investmentsAsset-backed securities37 - 37 - Short-term investmentsCertificates of deposit 14 - 14 - Short-term investmentsForeign currency derivatives29 - 29 - Other current assets and other assetsDeferred compensation plan assets (a)23 23 - - Other assetsTotal assets at fair value$1,413 $1,115 $298 $ - LiabilitiesForeign currency derivatives$65 $ - $65 $ - Accrued and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)24 24 - - Other liabilitiesTotal liabilities at fair value$89 $24 $65 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. 48 48 48 Table of Contents Table of Contents --- ## Modified: As of March 31, 2023 **Key changes:** - Reworded sentence: "The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2024, 2023, and 2022, was as follows (in millions): Year Ended March 31, 202420232022Interest and other income (expense), netTotal amounts presented in our Consolidated Statements of Operations in which the effects of balance sheet hedges are recorded$71 $(6)$(48)Gains (losses) on foreign currency forward contracts not designated as hedging instruments$12 $(29)$21 50 50 50 Table of Contents Table of Contents" **Prior (2023):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): As of March 31, 2023As of March 31, 2022 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$267 $266 $250 $249 Due 1 year through 5 years72 72 77 76 Due after 5 years5 5 5 5 Short-term investments$344 $343 $332 $330 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): **Current (2024):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$231 $231 $267 $266 Due 1 year through 5 years126 126 72 72 Due after 5 years5 5 5 5 Short-term investments$362 $362 $344 $343 --- ## Modified: March 31, 2024Effective Tax RateMarch 31, 2023Effective Tax Rate$316 19.9 %$524 39.5 % **Key changes:** - Reworded sentence: "Our effective tax rate for the fiscal year ended March 31, 2024 was 19.9 percent as compared to 39.5 percent for the same period in fiscal year 2023." - Removed sentence: "During the fiscal year ended March 31, 2022, we completed intra-entity sales of intellectual property rights related to recent acquisitions to our U.S." - Removed sentence: "and Swiss intellectual property owners (the "Acquired IP intra-entity sales")." - Removed sentence: "The transactions resulted in overall taxable gains." - Removed sentence: "GAAP, any profit resulting from the Acquired IP intra-entity sales was eliminated upon consolidation." **Prior (2023):** Our effective tax rate for the fiscal year ended March 31, 2023 was 39.5 percent as compared to 27.0 percent for the same period in fiscal year 2022. During the fiscal year ended March 31, 2023, we recognized a $118 million tax charge to increase the valuation allowance on Swiss deferred tax assets, primarily as a result of an increase in Swiss interest rates. The change in valuation allowance had the effect of increasing our effective tax rate for the fiscal year ended March 31, 2023 by 8.9 percentage points. During the fiscal year ended March 31, 2022, we completed intra-entity sales of intellectual property rights related to recent acquisitions to our U.S. and Swiss intellectual property owners (the "Acquired IP intra-entity sales"). The transactions resulted in overall taxable gains. Under U.S. GAAP, any profit resulting from the Acquired IP intra-entity sales was eliminated upon consolidation. However, the transactions resulted in a step-up of the U.S. and Swiss tax-deductible basis in the transferred intellectual property rights and, accordingly, created a temporary difference between the book basis and the tax basis of such intellectual property rights. As a result, we recognized a $64 million net tax benefit for the current and deferred tax impacts of the sales. 30 30 30 Table of Contents Table of Contents In addition, during the fiscal year ended March 31, 2022, we recognized a $29 million tax charge to increase the valuation allowance on Swiss deferred tax assets that are not more likely than not to be realized. The Acquired IP intra-entity sales and the change in valuation allowance had the effect of reducing our effective tax rate for the fiscal year ended March 31, 2022 by 3.2 percentage points. Our effective tax rates for future periods will continue to depend on a variety of factors, including changes in our business, such as acquisitions and intercompany transactions, our corporate structure, the geographic location of business functions or assets, the geographic mix of income, our agreements with tax authorities, applicable accounting rules, applicable tax laws and regulations, rulings and interpretations thereof, developments in tax audit and other matters, and variations in our annual pre-tax income or loss. We anticipate that the impact of excess tax benefits, tax deficiencies, and changes in valuation allowances may result in significant fluctuations to our effective tax rate in the future. **Current (2024):** Our effective tax rate for the fiscal year ended March 31, 2024 was 19.9 percent as compared to 39.5 percent for the same period in fiscal year 2023. During the fiscal year ended March 31, 2024, we recognized a $92 million tax benefit to remeasure our Swiss deferred tax assets as a result of an increase in the Swiss statutory tax rate. In addition, we recognized a lower period cost for U.S. tax on our non-U.S. earnings, including a cumulative one-time benefit, due to R&D capitalization guidance issued by the U.S. Treasury during the fiscal year. Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 29.5%. During the fiscal year ended March 31, 2023, we recognized a $118 million tax charge to increase the valuation allowance on Swiss deferred tax assets, primarily as a result of an increase in Swiss interest rates. The change in valuation allowance had the effect of increasing our effective tax rate for the fiscal year ended March 31, 2023 by 8.9 percentage points. Our effective tax rates for future periods will continue to depend on a variety of factors, including changes in our business, such as acquisitions and intercompany transactions, our corporate structure, the geographic location of business functions or assets, the geographic mix of income, our agreements with tax authorities, applicable accounting rules, applicable tax laws and regulations, rulings and interpretations thereof, developments in tax audit and other matters, and variations in our annual pre-tax income or loss. We anticipate that the impact of excess tax benefits, tax deficiencies, and changes in valuation allowances may result in significant fluctuations to our effective tax rate in the future. --- ## Modified: Changes in Cash Flow **Key changes:** - Reworded sentence: "Net cash provided by operating activities increased by $765 million during fiscal year 2024, as compared to fiscal year 2023, primarily driven by higher cash collections due to timing and year-over-year growth in our business, and lower cash payments for income taxes, partially offset by cash outflows from hedging activities." - Reworded sentence: "Net cash used in investing activities decreased by $10 million during fiscal year 2024, as compared to fiscal year 2023, primarily driven by a $237 million increase in proceeds from maturities and sales of short-term investments, and a $8 million decrease in capital expenditures, partially offset by a $235 million increase in the purchase of short-term investments." - Reworded sentence: "Net cash used in financing activities increased by $24 million during fiscal year 2024, as compared to fiscal year 2023, primarily due to a $21 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation." **Prior (2023):** Operating Activities. Net cash provided by operating activities decreased by $349 million during fiscal year 2023, as compared to fiscal year 2022, primarily driven by lower cash receipts and higher personnel-related payments primarily from continued investment in our studios, partially offset by cash inflows from hedging activities and a decrease in prepayments for contracted services. Investing Activities. Net cash used in investing activities decreased by $2,587 million during fiscal year 2023, as compared to fiscal year 2022, primarily driven by payments of $3,391 million in connection with acquisitions completed in prior year, and a $149 million decrease in the purchase of short-term investments, partially offset by a $934 million increase in proceeds from maturities and sales of short-term investments. Financing Activities. Net cash used in financing activities decreased by $20 million during fiscal year 2023, as compared to fiscal year 2022, primarily due to a $29 million reduction in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation, partially offset by a $17 million increase in cash dividend payments. **Current (2024):** Operating Activities. Net cash provided by operating activities increased by $765 million during fiscal year 2024, as compared to fiscal year 2023, primarily driven by higher cash collections due to timing and year-over-year growth in our business, and lower cash payments for income taxes, partially offset by cash outflows from hedging activities. Investing Activities. Net cash used in investing activities decreased by $10 million during fiscal year 2024, as compared to fiscal year 2023, primarily driven by a $237 million increase in proceeds from maturities and sales of short-term investments, and a $8 million decrease in capital expenditures, partially offset by a $235 million increase in the purchase of short-term investments. Financing Activities. Net cash used in financing activities increased by $24 million during fiscal year 2024, as compared to fiscal year 2023, primarily due to a $21 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation. --- ## Modified: Issuer Purchases of Equity Securities **Key changes:** - Reworded sentence: "We repurchased approximately 10.0 million shares of our common stock for approximately $1,300 million under this program during the fiscal year ended March 31, 2024." - Reworded sentence: "We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time." - Reworded sentence: "The following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2024:Fiscal MonthTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as part of Publicly Announced ProgramsMaximum Dollar Value that May Still Be Purchased Under the Programs (in millions)December 31, 2023 - January 27, 2024699,335 $137.14 699,335 $884 January 28, 2024 - February 24, 2024729,048 $138.86 729,048 $783 February 25, 2024 - March 30, 2024937,619 $136.39 937,619 $655 2,366,002 $137.37 2,366,002" **Prior (2023):** In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. This stock repurchase program expires on November 4, 2024. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares under this program and it may be modified, suspended or discontinued at any time. We repurchased approximately 5.3 million shares for approximately $645 million under this program during the fiscal year ended March 31, 2023. We are actively repurchasing shares under this program. The following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2023:Fiscal MonthTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as part of Publicly Announced ProgramsMaximum Dollar Value that May Still Be Purchased Under the Programs (in millions)January 1, 2023 - January 28, 2023756,877 $124.67 756,877 $2,185 January 29, 2023 - February 25, 2023859,389 $115.90 859,389 $2,086 February 26, 2023 - April 1, 20231,158,552 $113.11 1,158,552 $1,955 2,774,818 $117.13 2,774,818 **Current (2024):** In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock. We repurchased approximately 10.0 million shares of our common stock for approximately $1,300 million under this program during the fiscal year ended March 31, 2024. This program was terminated on May 8, 2024 and was superseded and replaced by a new stock repurchase program approved in May 2024. In May 2024, the Company's Audit Committee, upon delegation from the Company's Board of Directors, authorized a new program to repurchase up to $5.0 billion of our common stock. This program supersedes and replaces the August 2022 program and expires on May 9, 2027. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares of our common stock under this program and it may be modified, suspended or discontinued at any time. We are actively repurchasing shares under this program. The following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2024:Fiscal MonthTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as part of Publicly Announced ProgramsMaximum Dollar Value that May Still Be Purchased Under the Programs (in millions)December 31, 2023 - January 27, 2024699,335 $137.14 699,335 $884 January 28, 2024 - February 24, 2024729,048 $138.86 729,048 $783 February 25, 2024 - March 30, 2024937,619 $136.39 937,619 $655 2,366,002 $137.37 2,366,002 --- ## Modified: ELECTRONIC ARTS INC. AND SUBSIDIARIES **Key changes:** - Reworded sentence: "CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202420232022OPERATING ACTIVITIESNet income$1,273 $802 $789 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment404 536 486 Stock-based compensation584 548 528 Change in assets and liabilities:Receivables, net119 (34)(77)Other assets148 (103)(157)Accounts payable(6)10 (7)Accrued and other liabilities(202)134 169 Deferred income taxes, net82 (221)(329)Deferred net revenue (online-enabled games)(87)(122)497 Net cash provided by operating activities2,315 1,550 1,899 INVESTING ACTIVITIESCapital expenditures(199)(207)(188)Proceeds from maturities and sales of short-term investments632 395 1,329 Purchase of short-term investments(640)(405)(554)Acquisitions, net of cash acquired - - (3,391)Net cash used in investing activities(207)(217)(2,804)FINANCING ACTIVITIESProceeds from issuance of common stock77 80 77 Cash dividends paid(205)(210)(193)Cash paid to taxing authorities for shares withheld from employees(196)(175)(204)Common stock repurchases(1,300)(1,295)(1,300)Net cash used in financing activities(1,624)(1,600)(1,620)Effect of foreign exchange on cash and cash equivalents(8)(41)(3)Increase (decrease) in cash and cash equivalents476 (308)(2,528)Beginning cash and cash equivalents2,424 2,732 5,260 Ending cash and cash equivalents$2,900 $2,424 $2,732 Supplemental cash flow information:Cash paid during the year for income taxes, net$300 $583 $629 Cash paid during the year for interest56 56 56 Non-cash investing activities:Change in accrued capital expenditures$25 $(3)$19 See accompanying Notes to Consolidated Financial Statements." **Prior (2023):** CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202320222021OPERATING ACTIVITIESNet income$802 $789 $837 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment536 486 181 Stock-based compensation548 528 435 Change in assets and liabilities:Receivables, net(34)(77)(41)Other assets(103)(157)(70)Accounts payable10 (7)18 Accrued and other liabilities134 169 136 Deferred income taxes, net(221)(329)(143)Deferred net revenue (online-enabled games)(122)497 581 Net cash provided by operating activities1,550 1,899 1,934 INVESTING ACTIVITIESCapital expenditures(207)(188)(124)Proceeds from maturities and sales of short-term investments395 1,329 3,686 Purchase of short-term investments(405)(554)(2,828)Acquisitions, net of cash acquired - (3,391)(1,239)Net cash used in investing activities(217)(2,804)(505)FINANCING ACTIVITIESProceeds from issuance of senior notes, net of issuance costs - - 1,478 Payment of senior notes - - (600)Proceeds from issuance of common stock80 77 86 Cash dividends paid(210)(193)(98)Cash paid to taxing authorities for shares withheld from employees(175)(204)(152)Repurchase and retirement of common stock(1,295)(1,300)(729)Net cash used in financing activities(1,600)(1,620)(15)Effect of foreign exchange on cash and cash equivalents(41)(3)78 Increase (decrease) in cash and cash equivalents(308)(2,528)1,492 Beginning cash and cash equivalents2,732 5,260 3,768 Ending cash and cash equivalents$2,424 $2,732 $5,260 Supplemental cash flow information:Cash paid during the year for income taxes, net$583 $629 $340 Cash paid during the year for interest56 56 $40 Non-cash investing activities:Change in accrued capital expenditures$(3)$19 $17 See accompanying Notes to Consolidated Financial Statements. 41 41 41 Table of Contents Table of Contents **Current (2024):** CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202420232022OPERATING ACTIVITIESNet income$1,273 $802 $789 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment404 536 486 Stock-based compensation584 548 528 Change in assets and liabilities:Receivables, net119 (34)(77)Other assets148 (103)(157)Accounts payable(6)10 (7)Accrued and other liabilities(202)134 169 Deferred income taxes, net82 (221)(329)Deferred net revenue (online-enabled games)(87)(122)497 Net cash provided by operating activities2,315 1,550 1,899 INVESTING ACTIVITIESCapital expenditures(199)(207)(188)Proceeds from maturities and sales of short-term investments632 395 1,329 Purchase of short-term investments(640)(405)(554)Acquisitions, net of cash acquired - - (3,391)Net cash used in investing activities(207)(217)(2,804)FINANCING ACTIVITIESProceeds from issuance of common stock77 80 77 Cash dividends paid(205)(210)(193)Cash paid to taxing authorities for shares withheld from employees(196)(175)(204)Common stock repurchases(1,300)(1,295)(1,300)Net cash used in financing activities(1,624)(1,600)(1,620)Effect of foreign exchange on cash and cash equivalents(8)(41)(3)Increase (decrease) in cash and cash equivalents476 (308)(2,528)Beginning cash and cash equivalents2,424 2,732 5,260 Ending cash and cash equivalents$2,900 $2,424 $2,732 Supplemental cash flow information:Cash paid during the year for income taxes, net$300 $583 $629 Cash paid during the year for interest56 56 56 Non-cash investing activities:Change in accrued capital expenditures$25 $(3)$19 See accompanying Notes to Consolidated Financial Statements. 38 38 38 Table of Contents Table of Contents --- ## Modified: Stock Performance Graph **Key changes:** - Reworded sentence: "The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2019 through March 31, 2024, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100." - Reworded sentence: "18 18 18 Table of Contents Table of Contents *Based on $100 invested on March 31, 2019 in stock or index, including reinvestment of dividends." **Prior (2023):** The following information shall not be deemed to be "filed" with the SEC nor shall this information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent that we specifically incorporate it by reference into a filing. The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2018 through March 31, 2023, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100. Each measurement point is as of the end of each fiscal year. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. 19 19 19 Table of Contents Table of Contents **Current (2024):** The following information shall not be deemed to be "filed" with the SEC nor shall this information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Exchange Act, as amended, except to the extent that we specifically incorporate it by reference into a filing. The following graph shows a five-year comparison of cumulative total returns during the period from March 31, 2019 through March 31, 2024, for our common stock, the S&P 500 Index (to which EA was added in July 2002), the Nasdaq Composite Index, and the RDG Technology Composite Index, each of which assumes an initial value of $100. Each measurement point is as of the end of each fiscal year. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. 18 18 18 Table of Contents Table of Contents *Based on $100 invested on March 31, 2019 in stock or index, including reinvestment of dividends. March 31, 201920202021202220232024Electronic Arts Inc.$100 $99 $134 $125 $120 $133 S&P 500 Index100 93 145 168 155 202 Nasdaq Composite Index100 101 175 189 164 221 RDG Technology Composite Index100 110 187 201 182 226 Item 6: [Reserved] 19 19 19 Table of Contents Table of Contents Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW The following overview is a high-level discussion of our operating results, as well as some of the trends and drivers that affect our business. Management believes that an understanding of these trends and drivers provides important context for our results for the fiscal year ended March 31, 2024, as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Form 10-K, including in the "Business" section and the "Risk Factors" above, the remainder of "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" or the Consolidated Financial Statements and related Notes. --- ## Modified: CONSOLIDATED BALANCE SHEETS **Key changes:** - Reworded sentence: "(In millions, except par value data)March 31, 2024March 31, 2023ASSETSCurrent assets:Cash and cash equivalents$2,900 $2,424 Short-term investments362 343 Receivables, net565 684 Other current assets420 518 Total current assets4,247 3,969 Property and equipment, net578 549 Goodwill5,379 5,380 Acquisition-related intangibles, net400 618 Deferred income taxes, net2,380 2,462 Other assets436 481 TOTAL ASSETS$13,420 $13,459 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$110 $99 Accrued and other current liabilities1,166 1,285 Deferred net revenue (online-enabled games)1,814 1,901 Total current liabilities3,090 3,285 Senior notes, net1,882 1,880 Income tax obligations497 607 Deferred income taxes, net1 1 Other liabilities437 393 Total liabilities5,907 6,166 Commitments and contingencies (See Note 14)Stockholders' equity:Preferred stock, $0.01 par value." - Reworded sentence: "1,000 shares authorized; 266 and 273 shares issued and outstanding, respectively3 3 Additional paid-in capital - - Retained earnings7,582 7,357 Accumulated other comprehensive income (loss)(72)(67)Total stockholders' equity7,513 7,293 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,420 $13,459 Commitments and contingencies (See Note 14) Preferred stock, $0.01 par value." - Reworded sentence: "1,000 shares authorized; 266 and 273 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements." **Prior (2023):** (In millions, except par value data)March 31, 2023March 31, 2022ASSETSCurrent assets:Cash and cash equivalents$2,424 $2,732 Short-term investments343 330 Receivables, net684 650 Other current assets518 439 Total current assets3,969 4,151 Property and equipment, net549 550 Goodwill5,380 5,387 Acquisition-related intangibles, net618 962 Deferred income taxes, net2,462 2,243 Other assets481 507 TOTAL ASSETS$13,459 $13,800 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$99 $101 Accrued and other current liabilities1,285 1,388 Deferred net revenue (online-enabled games)1,901 2,024 Total current liabilities3,285 3,513 Senior notes, net1,880 1,878 Income tax obligations607 386 Deferred income taxes, net1 1 Other liabilities393 397 Total liabilities6,166 6,175 Commitments and contingencies (See Note 14)Stockholders' equity:Preferred stock, $0.01 par value. 10 shares authorized - - Common stock, $0.01 par value. 1,000 shares authorized; 273 and 280 shares issued and outstanding, respectively3 3 Additional paid-in capital - - Retained earnings7,357 7,607 Accumulated other comprehensive income (loss)(67)15 Total stockholders' equity7,293 7,625 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,459 $13,800 Commitments and contingencies (See Note 14) Preferred stock, $0.01 par value. 10 shares authorized Common stock, $0.01 par value. 1,000 shares authorized; 273 and 280 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements. 37 37 37 Table of Contents Table of Contents **Current (2024):** (In millions, except par value data)March 31, 2024March 31, 2023ASSETSCurrent assets:Cash and cash equivalents$2,900 $2,424 Short-term investments362 343 Receivables, net565 684 Other current assets420 518 Total current assets4,247 3,969 Property and equipment, net578 549 Goodwill5,379 5,380 Acquisition-related intangibles, net400 618 Deferred income taxes, net2,380 2,462 Other assets436 481 TOTAL ASSETS$13,420 $13,459 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable$110 $99 Accrued and other current liabilities1,166 1,285 Deferred net revenue (online-enabled games)1,814 1,901 Total current liabilities3,090 3,285 Senior notes, net1,882 1,880 Income tax obligations497 607 Deferred income taxes, net1 1 Other liabilities437 393 Total liabilities5,907 6,166 Commitments and contingencies (See Note 14)Stockholders' equity:Preferred stock, $0.01 par value. 10 shares authorized - - Common stock, $0.01 par value. 1,000 shares authorized; 266 and 273 shares issued and outstanding, respectively3 3 Additional paid-in capital - - Retained earnings7,582 7,357 Accumulated other comprehensive income (loss)(72)(67)Total stockholders' equity7,513 7,293 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$13,420 $13,459 Commitments and contingencies (See Note 14) Preferred stock, $0.01 par value. 10 shares authorized Common stock, $0.01 par value. 1,000 shares authorized; 266 and 273 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements. 34 34 34 Table of Contents Table of Contents --- ## Modified: As of March 31, 2023 **Key changes:** - Reworded sentence: "The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$231 $231 $267 $266 Due 1 year through 5 years126 126 72 72 Due after 5 years5 5 5 5 Short-term investments$362 $362 $344 $343" **Prior (2023):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): As of March 31, 2023As of March 31, 2022 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$267 $266 $250 $249 Due 1 year through 5 years72 72 77 76 Due after 5 years5 5 5 5 Short-term investments$344 $343 $332 $330 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2023 and 2022 (in millions): **Current (2024):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$231 $231 $267 $266 Due 1 year through 5 years126 126 72 72 Due after 5 years5 5 5 5 Short-term investments$362 $362 $344 $343 --- ## Modified: Fiscal 2023 Restructuring **Key changes:** - Reworded sentence: "In fiscal year 2023, we announced a restructuring plan (the "2023 Restructuring Plan") focused on prioritizing investments to our growth opportunities and optimizing our real estate portfolio." **Prior (2023):** In fiscal year 2023, we announced a restructuring plan (the "2023 Restructuring Plan" or the "Plan") focused on prioritizing investments to our growth opportunities and optimizing our real estate portfolio. The Plan includes actions driven by portfolio rationalization including headcount reductions, in addition to office space reductions. The actions associated with the Plan are expected to be substantially completed by September 30, 2023. Under this plan, we estimate that we will incur approximately $170 million to $200 million in charges, consisting primarily of: •A $66 million impairment charge related to an acquisition-related in-process research & development intangible asset as part of our portfolio rationalization activities; •$55 million to $65 million related to employee severance and employee-related costs; •$45 million to $55 million associated with office space reductions; and •$5 million to $10 million of other charges, including contract cancellations. Restructuring activities as of the fiscal year ended March 31, 2023 was as follows (in millions): Acquisition-Related Intangibles Impairments and Other Charges (a)Workforce (a)Office Space Reductions (b)TotalCharges to operations$68 $43 $44 $155 Charges settled in cash - (10) - (10)Non-cash items(66) - (44)(110)Liability as of March 31, 2023$2 $33 $ - $35 (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations.(b) Charges are recorded within General and administrative expenses in the Consolidated Statement of Operations. **Current (2024):** In fiscal year 2023, we announced a restructuring plan (the "2023 Restructuring Plan") focused on prioritizing investments to our growth opportunities and optimizing our real estate portfolio. This plan included actions driven by portfolio rationalization including headcount reductions, in addition to office space reductions. The actions associated with this plan were substantially completed by September 30, 2023. Since the inception of the 2023 Restructuring Plan through March 31, 2024, we have incurred net charges of $158 million, and we do not expect to incur any additional restructuring charges under this plan. Restructuring activities as of the fiscal year ended March 31, 2024 was as follows (in millions): Fiscal 2024 RestructuringFiscal 2023 RestructuringLicensor Commitments (a)Workforce (a)Office Space Reductions (b)Acquisition-Related Intangibles Impairments and Other Charges (a)Workforce (a)Office Space Reductions (b)TotalCharges to operations$ - $ - $ - $68 $43 $44 $155 Charges settled in cash - - - - (10) - (10)Non-cash items - - - (66) - (44)(110)Liability as of March 31, 2023$ - $ - $ - $2 $33 $ - $35 Charges to operations30 29 2 - 3 - 64 Charges settled in cash(17)(5) - (2)(36) - (60)Non-cash items(13) - (2) - - - (15)Liability as of March 31, 2024$ - $24 $ - $ - $ - $ - $24 (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations.(b) Charges are recorded within General and administrative expenses in the Consolidated Statement of Operations. --- ## Modified: Comparison of Fiscal Year 2023 to Fiscal Year 2022 **Key changes:** - Reworded sentence: "28 28 28 Table of Contents Table of Contents For the comparison of fiscal year 2023 to fiscal year 2022, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2023, filed with the SEC on May 24, 2023 under the subheading "Comparison of Fiscal Year 2023 to Fiscal Year 2022." LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20242023Increase/(Decrease)Cash and cash equivalents$2,900 $2,424 $476 Short-term investments362 343 19 Total$3,262 $2,767 $495 Percentage of total assets24 %21 % Year Ended March 31,(In millions)20242023Increase/(Decrease)Net cash provided by operating activities$2,315 $1,550 $765 Net cash used in investing activities(207)(217)10 Net cash used in financing activities(1,624)(1,600)(24)Effect of foreign exchange on cash and cash equivalents(8)(41)33 Net increase (decrease) in cash and cash equivalents$476 $(308)$784" **Prior (2023):** For the comparison of fiscal year 2022 to fiscal year 2021, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2022, filed with the SEC on May 25, 2022 under the subheading "Comparison of Fiscal Year 2022 to Fiscal Year 2021." LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20232022Increase/(Decrease)Cash and cash equivalents$2,424 $2,732 $(308)Short-term investments343 330 13 Total$2,767 $3,062 $(295)Percentage of total assets21 %22 % Year Ended March 31,(In millions)20232022ChangeNet cash provided by operating activities$1,550 $1,899 $(349)Net cash used in investing activities(217)(2,804)2,587 Net cash used in financing activities(1,600)(1,620)20 Effect of foreign exchange on cash and cash equivalents(41)(3)(38)Net increase (decrease) in cash and cash equivalents$(308)$(2,528)$2,220 For the comparison of fiscal year 2022 to fiscal year 2021, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2022, filed with the SEC on May 25, 2022 under the subheading "Liquidity and Capital Resources." **Current (2024):** 28 28 28 Table of Contents Table of Contents For the comparison of fiscal year 2023 to fiscal year 2022, refer to Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for our fiscal year ended March 31, 2023, filed with the SEC on May 24, 2023 under the subheading "Comparison of Fiscal Year 2023 to Fiscal Year 2022." LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20242023Increase/(Decrease)Cash and cash equivalents$2,900 $2,424 $476 Short-term investments362 343 19 Total$3,262 $2,767 $495 Percentage of total assets24 %21 % Year Ended March 31,(In millions)20242023Increase/(Decrease)Net cash provided by operating activities$2,315 $1,550 $765 Net cash used in investing activities(207)(217)10 Net cash used in financing activities(1,624)(1,600)(24)Effect of foreign exchange on cash and cash equivalents(8)(41)33 Net increase (decrease) in cash and cash equivalents$476 $(308)$784 --- ## Modified: March 31, 2023 **Key changes:** - Reworded sentence: "Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2024As of March 31, 2023 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetFinite-lived acquisition-related intangiblesDeveloped and core technology$1,025 $(821)$204 $1,051 $(754)$297 Trade names and trademarks502 (306)196 596 (285)311 Registered user base and other intangibles56 (56) - 56 (50)6 Total finite-lived acquisition-related intangibles$1,583 $(1,183)$400 $1,703 $(1,089)$614 Indefinite-lived acquisition-related intangiblesIn-process research and development$ - $ - $ - $4 $ - $4 Total acquisition-related intangibles, net$1,583 $(1,183)$400 $1,707 $(1,089)$618" **Prior (2023):** Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2023As of March 31, 2022 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetFinite-lived acquisition-related intangiblesDeveloped and core technology$1,051 $(754)$297 $1,102 $(643)$459 Trade names and trademarks596 (285)311 609 (212)397 Registered user base and other intangibles56 (50)6 56 (30)26 Total finite-lived acquisition-related intangibles$1,703 $(1,089)$614 $1,767 $(885)$882 Indefinite-lived acquisition-related intangiblesIn-process research and development$4 $ - $4 $80 $ - $80 Total acquisition-related intangibles, net$1,707 $(1,089)$618 $1,847 $(885)$962 **Current (2024):** Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2024As of March 31, 2023 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetFinite-lived acquisition-related intangiblesDeveloped and core technology$1,025 $(821)$204 $1,051 $(754)$297 Trade names and trademarks502 (306)196 596 (285)311 Registered user base and other intangibles56 (56) - 56 (50)6 Total finite-lived acquisition-related intangibles$1,583 $(1,183)$400 $1,703 $(1,089)$614 Indefinite-lived acquisition-related intangiblesIn-process research and development$ - $ - $ - $4 $ - $4 Total acquisition-related intangibles, net$1,583 $(1,183)$400 $1,707 $(1,089)$618 --- ## Modified: Our stock price has been volatile and may continue to fluctuate significantly. **Key changes:** - Reworded sentence: "16 16 16 Table of Contents Table of Contents Item 1B: Unresolved Staff Comments None." - Reworded sentence: "17 17 17 Table of Contents Table of Contents PART II Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders There were approximately 616 holders of record of our common stock as of May 20, 2024." - Reworded sentence: "Dividends Our quarterly cash dividend was $0.19 per share of common stock in fiscal year 2024." **Prior (2023):** The market price of our common stock historically has been, and we expect will continue to be, subject to significant fluctuations. These fluctuations may be due to our operating results or factors specific to our operating results (including those discussed in the risk factors above), changes in securities analysts' estimates of our future financial performance, ratings or recommendations, our results or future financial guidance falling below our expectations and analysts' and investors' expectations, the failure of our capital return programs to meet analysts' and investors' expectations, the announcement and integration of any acquisitions we may make, departure of key personnel, cyberattacks, or factors largely outside of our control including, those affecting interactive gaming, entertainment, and/or technology companies generally, national or international economic conditions, investor sentiment or other factors related or unrelated to our operating performance. In particular, economic downturns may contribute to the public stock markets experiencing extreme price and trading volume volatility. These fluctuations could adversely affect the price of our common stock. 17 17 17 Table of Contents Table of Contents Item 1B: Unresolved Staff Comments None. Item 2: Properties Not applicable. Item 3: Legal Proceedings Refer to Note 14 of the Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for disclosures regarding our legal proceedings. Item 4: Mine Safety Disclosures Not applicable. 18 18 18 Table of Contents Table of Contents PART II Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders There were approximately 642 holders of record of our common stock as of May 22, 2023. In addition, a significant number of beneficial owners of our common stock hold their shares in street name. Our common stock is traded on the Nasdaq Global Select Market under the symbol "EA". Dividends Our quarterly cash dividend was $0.19 per share of common stock in fiscal year 2023. We paid aggregate cash dividends of $210 million during the fiscal year ended March 31, 2023. We currently expect to continue to pay comparable cash dividends on a quarterly basis in the future; however, future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors or a designated Committee of our Board of Directors. **Current (2024):** The market price of our common stock historically has been, and we expect will continue to be, subject to significant fluctuations. These fluctuations may be due to our operating results or factors specific to our operating results (including those discussed in the risk factors above), changes in securities analysts' estimates of our future financial performance, ratings or recommendations, our results or future financial guidance falling below our expectations and analysts' and investors' expectations, the failure of our capital return programs to meet analysts' and investors' expectations, the announcement and integration of any acquisitions we may make, departure of key personnel, cyberattacks, or factors largely outside of our control including, those affecting interactive gaming, entertainment, and/or technology companies generally, national or international economic conditions, investor sentiment or other factors related or unrelated to our operating performance. In particular, economic downturns may contribute to the public stock markets experiencing extreme price and trading volume volatility. These fluctuations could adversely affect the price of our common stock. 16 16 16 Table of Contents Table of Contents Item 1B: Unresolved Staff Comments None. Item 1C: Cybersecurity In the ordinary course of our business, we collect, use, store, and digitally transmit confidential and personal information. The secure maintenance of this information and our information technology systems is important to our operations, business strategy, and maintaining the trust of our players, employees, and partners. To this end, we have implemented policies, practices and programs designed to assess, identify, and manage risks from potential unauthorized occurrences on or through our information technology systems that may result in adverse effects on the confidentiality, integrity, and availability of these systems and the data residing therein. These processes are managed and monitored by dedicated information technology security teams, which are led by our Chief Information Security Officer. They include mechanisms, controls, technologies, systems, and other processes designed to maintain a stable information technology environment and protect against unauthorized access, use, destruction, modification or disclosure of confidential and personal information, and other information security incidents affecting our operations or the availability of our products and services. For example, we invest in tools to detect suspicious activity in accounts, give players the ability to use two-factor authentication and work to prevent the creation of mass user accounts. We also regularly test our defenses through penetration and vulnerability testing. We implement controls and procedures designed to mitigate risk with third-party vendors and business partners who have access to confidential and personal information, including by conducting a formalized security risk assessment. Security risks identified in security risk assessments are remediated, and/or formally documented, and in some cases the business relationship may be ended or not pursued. Our employees and certain contractors are required to complete mandatory annual security training. These trainings raise awareness of security practices and educates employees to protect information assets and infrastructure. We consult with outside advisors and experts when appropriate to assist in assessing, identifying and managing cybersecurity risks, including providing an independent analysis of our preparedness, assessing and managing the current risk environment and assisting us in preparing for future threats and trends. Our Chief Information Security Officer, who reports directly to our Chief Technology Officer, Enterprise & Platform Services, has extensive experience managing information technology and cybersecurity matters and is responsible for assessing and managing cybersecurity risks. Risks associated with cybersecurity are integrated into our overall enterprise-wise enterprise risk assessment and more closely monitored by our information technology security teams. We face ongoing cybersecurity risks that, if realized, could materially impact our business, operations and financial results. During the reporting period, we did not experience any cybersecurity incident that has had, or is reasonably likely to have, a material impact on our operations or financial results. Additional information on cybersecurity risks we face is discussed in Part I, Item 1A, "Risk Factors," under the heading "We have and may continue to experience security breaches and cyber threats." Our Board of Directors maintains ultimate oversight over risks associated with cybersecurity and receives updates at least annually from our Chief Information Security Officer. In addition, our Audit Committee, which is composed solely of independent directors, receives updates from our Chief Information Security Officer on a quarterly basis, and more frequently as appropriate, that provide additional detail about the steps we take to monitor and mitigate these risks. Item 2: Properties Not applicable. Item 3: Legal Proceedings Refer to Note 14 of the Notes to the Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for disclosures regarding our legal proceedings. Item 4: Mine Safety Disclosures Not applicable. 17 17 17 Table of Contents Table of Contents PART II Item 5: Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Holders There were approximately 616 holders of record of our common stock as of May 20, 2024. In addition, a significant number of beneficial owners of our common stock hold their shares in street name. Our common stock is traded on the Nasdaq Global Select Market under the symbol "EA". Dividends Our quarterly cash dividend was $0.19 per share of common stock in fiscal year 2024. We paid aggregate cash dividends of $205 million during the fiscal year ended March 31, 2024. We currently expect to continue to pay comparable cash dividends on a quarterly basis in the future; however, future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors or a designated Committee of our Board of Directors. --- ## Modified: Net Revenue **Key changes:** - Reworded sentence: "Net revenue for fiscal year 2024 was $7,562 million, primarily driven by sales related to FIFA 23, EA SPORTS FC 24, Apex Legends, EA SPORTS Madden NFL 24, and The Sims 4." **Prior (2023):** Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles, PCs and mobile phones and tablets (2) live services associated with these games, such as extra-content, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games. **Current (2024):** Net revenue consists of sales generated from (1) full games sold as digital downloads or as packaged goods and designed for play on game consoles and PCs, (2) live services which primarily includes sales of extra content for console, PC, and mobile games, (3) subscriptions that generally offer access to a selection of full games, in-game content, online services and other benefits, and (4) licensing our games to third parties to distribute and host our games. --- ## Modified: March 31, 2024 **Key changes:** - Reworded sentence: "The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2023 are as follows (in millions): As of March 31, 2022ActivityEffects of Foreign Currency TranslationAs of March 31, 2023Goodwill$5,755 $ - $(7)$5,748 Accumulated impairment(368) - - (368)Total$5,387 $ - $(7)$5,380 As of" **Prior (2023):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 51 51 51 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2022 Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$55 $55 $ - $ - Cash equivalentsMoney market funds257 257 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds116 - 116 - Short-term investments and cash equivalentsU.S. Treasury securities104 104 - - Short-term investments and cash equivalentsCommercial paper51 - 51 - Short-term investments and cash equivalentsForeign government securities17 - 17 - Short-term investmentsAsset-backed securities38 - 38 - Short-term investmentsCertificates of deposit 18 - 18 - Short-term investmentsForeign currency derivatives63 - 63 - Other current assets and other assetsDeferred compensation plan assets (a)21 21 - - Other assetsTotal assets at fair value$740 $437 $303 $ - LiabilitiesForeign currency derivatives$14 $ - $14 $ - Accrued and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)22 22 - - Other liabilitiesTotal liabilities at fair value$36 $22 $14 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. 52 52 52 Table of Contents Table of Contents **Current (2024):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 47 47 47 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 31,2023Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$56 $56 $ - $ - Cash equivalentsMoney market funds956 956 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds113 - 113 - Short-term investments U.S. Treasury securities80 80 - - Short-term investments U.S. agency securities28 - 28 - Short-term investments and cash equivalentsCommercial paper66 - 66 - Short-term investments and cash equivalentsForeign government securities11 - 11 - Short-term investmentsAsset-backed securities37 - 37 - Short-term investmentsCertificates of deposit 14 - 14 - Short-term investmentsForeign currency derivatives29 - 29 - Other current assets and other assetsDeferred compensation plan assets (a)23 23 - - Other assetsTotal assets at fair value$1,413 $1,115 $298 $ - LiabilitiesForeign currency derivatives$65 $ - $65 $ - Accrued and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)24 24 - - Other liabilitiesTotal liabilities at fair value$89 $24 $65 $ - Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) (a)The Deferred Compensation Plan consists of various mutual funds. See Note 15 for additional information regarding our Deferred Compensation Plan. 48 48 48 Table of Contents Table of Contents --- ## Modified: Short-Term Investments **Key changes:** - Reworded sentence: "Short-term investments consisted of the following as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$130 $ - $ - $130 $114 $ - $(1)$113 U.S." **Prior (2023):** Short-term investments consisted of the following as of March 31, 2023 and 2022 (in millions): As of March 31, 2023As of March 31, 2022 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$114 $ - $(1)$113 $117 $ - $(1)$116 U.S. Treasury securities80 - - 80 103 - (1)102 U.S. agency securities25 - - 25 - - - - Commercial paper63 - - 63 39 - - 39 Foreign government securities11 - - 11 17 - - 17 Asset-backed securities37 - - 37 38 - - 38 Certificates of deposit14 - - 14 18 - - 18 Short-term investments$344 $ - $(1)$343 $332 $ - $(2)$330 **Current (2024):** Short-term investments consisted of the following as of March 31, 2024 and 2023 (in millions): As of March 31, 2024As of March 31, 2023 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$130 $ - $ - $130 $114 $ - $(1)$113 U.S. Treasury securities95 - - 95 80 - - 80 U.S. agency securities9 - - 9 25 - - 25 Commercial paper66 - - 66 63 - - 63 Foreign government securities8 - - 8 11 - - 11 Asset-backed securities41 - - 41 37 - - 37 Certificates of deposit13 - - 13 14 - - 14 Short-term investments$362 $ - $ - $362 $344 $ - $(1)$343 --- ## Modified: CONSOLIDATED STATEMENTS OF OPERATIONS **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions, except per share data)202420232022Net revenue$7,562 $7,426 $6,991 Cost of revenue1,710 1,792 1,859 Gross profit5,852 5,634 5,132 Operating expenses:Research and development2,420 2,328 2,186 Marketing and sales1,019 978 961 General and administrative691 727 673 Amortization and impairment of intangibles142 158 183 Restructuring (See Note 8)62 111 - Total operating expenses4,334 4,302 4,003 Operating income1,518 1,332 1,129 Interest and other income (expense), net71 (6)(48)Income before provision for income taxes1,589 1,326 1,081 Provision for income taxes316 524 292 Net income$1,273 $802 $789 Earnings per share:Basic$4.71 $2.90 $2.78 Diluted$4.68 $2.88 $2.76 Number of shares used in computation:Basic270 277 284 Diluted272 278 286 Restructuring (See Note 8) See accompanying Notes to Consolidated Financial Statements." **Prior (2023):** Year Ended March 31,(In millions, except per share data)202320222021Net revenue$7,426 $6,991 $5,629 Cost of revenue1,792 1,859 1,494 Gross profit5,634 5,132 4,135 Operating expenses:Research and development2,328 2,186 1,778 Marketing and sales978 961 689 General and administrative727 673 592 Amortization and impairment of intangibles158 183 30 Restructuring (See Note 8)111 - - Total operating expenses4,302 4,003 3,089 Operating income1,332 1,129 1,046 Interest and other income (expense), net(6)(48)(29)Income before provision for income taxes1,326 1,081 1,017 Provision for income taxes524 292 180 Net income$802 $789 $837 Earnings per share:Basic$2.90 $2.78 $2.90 Diluted$2.88 $2.76 $2.87 Number of shares used in computation:Basic277 284 289 Diluted278 286 292 Restructuring (See Note 8) See accompanying Notes to Consolidated Financial Statements. 38 38 38 Table of Contents Table of Contents **Current (2024):** Year Ended March 31,(In millions, except per share data)202420232022Net revenue$7,562 $7,426 $6,991 Cost of revenue1,710 1,792 1,859 Gross profit5,852 5,634 5,132 Operating expenses:Research and development2,420 2,328 2,186 Marketing and sales1,019 978 961 General and administrative691 727 673 Amortization and impairment of intangibles142 158 183 Restructuring (See Note 8)62 111 - Total operating expenses4,334 4,302 4,003 Operating income1,518 1,332 1,129 Interest and other income (expense), net71 (6)(48)Income before provision for income taxes1,589 1,326 1,081 Provision for income taxes316 524 292 Net income$1,273 $802 $789 Earnings per share:Basic$4.71 $2.90 $2.78 Diluted$4.68 $2.88 $2.76 Number of shares used in computation:Basic270 277 284 Diluted272 278 286 Restructuring (See Note 8) See accompanying Notes to Consolidated Financial Statements. 35 35 35 Table of Contents Table of Contents --- ## Modified: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue$ Change% Change$691 9 %$727 10 %$(36)(5)% **Key changes:** - Reworded sentence: "General and administrative expenses decreased by $36 million, or 5 percent, in fiscal year 2024, as compared to fiscal year 2023." **Prior (2023):** General and administrative expenses increased by $54 million, or 8 percent, in fiscal year 2023, as compared to fiscal year 2022. This increase was primarily due to $44 million of accelerated amortization and depreciation associated with office space reductions related to our fiscal 2023 Restructuring Plan, a $14 million increase in personnel-related costs primarily resulting from an increase in headcount, offset by a $36 million decrease in contracted services driven by prior year acquisition-related transaction and integration costs. **Current (2024):** General and administrative expenses decreased by $36 million, or 5 percent, in fiscal year 2024, as compared to fiscal year 2023. This decrease was primarily due to $44 million of accelerated amortization and depreciation associated with office space reductions related to our fiscal 2023 Restructuring Plan. --- ## Modified: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue$ Change% Change$2,420 32 %$2,328 31 %$92 4 % **Key changes:** - Reworded sentence: "Research and development expenses increased by $92 million, or 4 percent, in fiscal year 2024, as compared to fiscal year 2023." **Prior (2023):** Research and development expenses increased by $142 million, or 6 percent, in fiscal year 2023, as compared to fiscal year 2022. This increase was primarily due to a net $56 million increase in personnel-related costs primarily resulting from continued investment in our studios, offset by decreased variable compensation and related costs, a $30 million increase due to hedging activities, and a $14 million increase in studio related contracted services. **Current (2024):** Research and development expenses increased by $92 million, or 4 percent, in fiscal year 2024, as compared to fiscal year 2023. This increase was primarily due to a $51 million increase in stock-based compensation, a $45 million increase in personnel-related costs primarily due to an increase in variable compensation and related expenses, offset by a $12 million decrease in studio related contracted services. --- ## Modified: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue$ Change% Change$62 1 %$111 1 %$(49)(44)% **Key changes:** - Reworded sentence: "Restructuring expenses decreased by $49 million, or 44 percent, in fiscal year 2024, as compared to fiscal year 2023." **Prior (2023):** Restructuring expenses of $111 million were incurred in fiscal year 2023 related to our fiscal 2023 Restructuring Plan, of which, $68 million related to impairment charges associated with acquisition-related intangible assets and other charges, and $43 million related to employee severance and employee-related costs. **Current (2024):** Restructuring expenses decreased by $49 million, or 44 percent, in fiscal year 2024, as compared to fiscal year 2023. This decrease was primarily due to lower charges associated with our fiscal 2024 Restructuring Plan in comparison to our fiscal 2023 Restructuring Plan, driven by a $68 million decrease related to impairment charges associated with acquisition-related intangible assets and other charges, and an $11 million decrease related to employee severance and employee-related costs, offset by a $30 million increase in costs associated with licensor commitments. --- ## Modified: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue% ChangeChange as a % of Net Revenue$1,710 23 %$1,792 24 %(5)%(1)% **Key changes:** - Reworded sentence: "Cost of revenue decreased by $82 million during fiscal year 2024, as compared to fiscal year 2023." **Prior (2023):** Cost of revenue decreased by $67 million during fiscal year 2023, as compared to fiscal year 2022. The decrease was primarily due to a decrease in inventory costs driven by the prior year releases of Battlefield 2042 and Mass Effect Trilogy Remaster and the FIFA franchise, and lower royalty costs due to the mix in sales from royalty bearing titles, partially offset by an increase in platform and hosting fees. Cost of revenue as a percentage of total net revenue decreased by 3 percent during fiscal year 2023, as compared to fiscal year 2022. This decrease was primarily due to a decrease in inventory costs driven by the prior year releases of Battlefield 2042 and Mass Effect Trilogy Remaster, lower royalty costs due to the mix in sales form royalty bearing titles, and a decrease in the proportion of sales derived from packaged goods, partially offset by an increase in platform and hosting fees. **Current (2024):** Cost of revenue decreased by $82 million during fiscal year 2024, as compared to fiscal year 2023. The decrease was primarily due to a net decrease in royalty and other product related costs associated with EA SPORTS FC 24, a decrease in acquisition-related intangible asset amortization and impairments, and a decrease in platform and hosting fees, partially offset by an increase in inventory costs from the release of Star Wars Jedi: Survivor. --- ## Modified: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue$ Change% Change$1,019 13 %$978 13 %$41 4 % **Key changes:** - Reworded sentence: "Marketing and sales expenses increased by $41 million, or 4 percent, in fiscal year 2024, as compared to fiscal year 2023." **Prior (2023):** 29 29 29 Table of Contents Table of Contents Marketing and sales expenses increased by $17 million, or 2 percent, in fiscal year 2023, as compared to fiscal year 2022. This increase was primarily due to an increase in advertising and promotional spending related to the release of our Apex Legends Mobile title in the first quarter of fiscal year 2023 and our FIFA franchise, partially offset by a decrease in advertising and promotional spending primarily related to our mobile portfolio, and Battlefield 2042, Mass Effect Trilogy Remaster and It Takes Two, which were released in prior fiscal years. **Current (2024):** Marketing and sales expenses increased by $41 million, or 4 percent, in fiscal year 2024, as compared to fiscal year 2023. This increase was primarily due to a $82 million increase largely related to rebranding investments associated with the launch of EA SPORTS FC 24, offset by a $40 million decrease in advertising and promotional spending related to the prior year release of Apex Legends Mobile. --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*