--- ticker: EA company: EA filing_type: 10-K year_current: 2025 year_prior: 2024 risks_added: 2 risks_removed: 6 risks_modified: 56 risks_unchanged: 78 source: SEC EDGAR url: https://riskdiff.com/ea/2025-vs-2024/ markdown_url: https://riskdiff.com/ea/2025-vs-2024/index.md generated: 2026-06-01 --- # EA: 10-K Risk Factor Changes 2025 vs 2024 > 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 | 2 | | Risks removed | 6 | | Risks modified | 56 | | Unchanged | 78 | --- ## New in Current Filing: March 31,2025% of NetRevenueMarch 31,2024% of NetRevenue$ Change% Change$745 10 %$691 9 %$54 8 % General and administrative expenses increased by $54 million, or 8 percent, in fiscal year 2025, as compared to fiscal year 2024. This increase was primarily due to a $20 million increase in personnel-related costs, a $9 million increase in stock-based compensation, and a $13 million increase in IT and facility-related costs. --- ## New in Current Filing: Recently Adopted Accounting Standards In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update expand annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. We adopted ASU 2023-07 in the fourth quarter of fiscal year 2025. The adoption did not have a material impact on our Consolidated Financial Statements. See Note 18 - Segment and Revenue Information to the Consolidated Financial Statements for further detail. --- ## No Match in Current: We may experience declines or fluctuations in the re-occurring portion of our business. *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Our business model includes revenue that we deem re-occurring in nature, such as revenue from our live services, annualized sports franchises (e.g., EA SPORTS FC, EA SPORTS Madden NFL), and our console, PC and mobile catalog titles (i.e., titles that did not launch in the current fiscal year). While we have been able to forecast the revenue from these areas of our business with greater relative confidence than for new games, services and business models, we cannot provide assurances that consumer demand will remain consistent, including in connection with circumstances outside of our control. Furthermore, we may cease to offer games and services that we previously had deemed to be re-occurring in nature. Any decline or fluctuation in the re-occurring portion of our business may have a negative impact on our financial and operating results. --- ## No Match in Current: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue$ Change% Change$691 9 %$727 10 %$(36)(5)% *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 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 $44 million of accelerated amortization and depreciation associated with office space reductions related to our fiscal 2023 Restructuring Plan. --- ## No Match in Current: Restructuring *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Restructuring expenses for fiscal years 2024 and 2023 were as follows (in millions): --- ## No Match in Current: March 31,2024% of NetRevenueMarch 31,2023% of NetRevenue$ Change% Change$62 1 %$111 1 %$(49)(44)% *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 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. --- ## No Match in Current: Increase/(Decrease) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 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." --- ## No Match in Current: Fiscal 2024 Restructuring *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* 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. --- ## Modified: Our business is subject to economic, market, public health and geopolitical conditions. **Key changes:** - Reworded sentence: "Worsening economic conditions, political instability, and political developments in or around any of the countries in which we do business, particularly conditions that negatively impact discretionary consumer spending and consumer demand or increase our operating costs, including conflicts, inflation, slower growth, recession and other macroeconomic conditions have had, and could continue to have, a material adverse impact on our business and operating results." **Prior (2024):** Our business is subject to economic, market, public health and geopolitical conditions, which are beyond our control. The United States and other international economies have experienced cyclical downturns from time to time. Worsening economic conditions, political instability, and adverse political developments in or around any of the countries in which we do business, particularly conditions that negatively impact discretionary consumer spending and consumer demand or increase our operating costs, including conflicts, inflation, slower growth, recession and other macroeconomic conditions have had, and could continue to have, a material adverse impact on our business and operating results. In addition, relations between the United States and countries in which we have operations and sales have been impacted by events such as the adoption or expansion of trade restrictions, including economic sanctions, that have had a negative impact on our financial results and development processes. We are particularly susceptible to market conditions and risks associated with the entertainment industry, which, in addition to general macroeconomic downturns, also include the popularity, price and timing of our games, changes in consumer demographics, the availability and popularity of other forms of entertainment, and critical reviews and public tastes and preferences, among other factors which may change rapidly and cannot necessarily be predicted. **Current (2025):** Our business is subject to economic, market, public health and geopolitical conditions, which are beyond our control. The United States and other international economies have experienced cyclical downturns from time to time. Worsening economic conditions, political instability, and political developments in or around any of the countries in which we do business, particularly conditions that negatively impact discretionary consumer spending and consumer demand or increase our operating costs, including conflicts, inflation, slower growth, recession and other macroeconomic conditions have had, and could continue to have, a material adverse impact on our business and operating results. In addition, relations between the United States and countries in which we have operations and sales have been impacted by events such as immigration policies and the adoption or expansion of trade restrictions, including tariffs and economic sanctions, that may have a material impact on our operations and financial results. For example, the imposition of tariffs by the U.S. government on imported goods and any retaliatory tariffs from foreign governments could result in increased costs and uncertainty that may negatively affect global economic conditions and activity and negatively affect our business and the businesses of our partners. We are particularly susceptible to market conditions and risks associated with the entertainment industry, which, in addition to general macroeconomic downturns, also include the popularity, price and timing of our products and services, changes in consumer demographics, the availability and popularity of other forms of entertainment, and critical reviews and public tastes and preferences, among other factors which may change rapidly and cannot necessarily be predicted. --- ## Modified: Cost of Revenue **Key changes:** - Reworded sentence: "Cost of revenue consists of (1) certain royalty expenses for sports organizations, movie studios, independent software developers, and others (2) mobile platform fees associated with our mobile revenue (for transactions in which we are acting as the principal in the sale to the end customer), (3) data center, bandwidth and server costs associated with hosting our online games and websites, (4) inventory costs, including manufacturing royalties, (5) payment processing fees, (6) amortization and impairments of certain intangible assets, and (7) personnel-related costs." **Prior (2024):** Cost of revenue consists of (1) certain royalty expenses for celebrities, professional sports leagues, movie studios and other organizations, and independent software developers, (2) mobile platform fees associated with our mobile revenue (for transactions in which we are acting as the principal in the sale to the end customer), (3) data center, bandwidth and server costs associated with hosting our online games and websites, (4) inventory costs, including manufacturing royalties, (5) payment processing fees, (6) amortization and impairments of certain intangible assets, and (7) personnel-related costs. Cost of revenue for fiscal years 2024 and 2023 was as follows (in millions): **Current (2025):** Cost of revenue consists of (1) certain royalty expenses for sports organizations, movie studios, independent software developers, and others (2) mobile platform fees associated with our mobile revenue (for transactions in which we are acting as the principal in the sale to the end customer), (3) data center, bandwidth and server costs associated with hosting our online games and websites, (4) inventory costs, including manufacturing royalties, (5) payment processing fees, (6) amortization and impairments of certain intangible assets, and (7) personnel-related costs. Cost of revenue for fiscal years 2025 and 2024 was as follows (in millions): --- ## Modified: Restricted Stock Units **Key changes:** - Reworded sentence: "68 68 68 Table of Contents Table of Contents 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, 2025: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20247,480 $128.31 Granted4,760 138.59 Vested(4,228)129.53 Forfeited or cancelled(463)131.82 Outstanding as of March 31, 20257,549 $133.90 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 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." **Prior (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. **Current (2025):** 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. 68 68 68 Table of Contents Table of Contents 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, 2025: RestrictedStock Units(in thousands)Weighted-Average GrantDate Fair ValuesOutstanding as of March 31, 20247,480 $128.31 Granted4,760 138.59 Vested(4,228)129.53 Forfeited or cancelled(463)131.82 Outstanding as of March 31, 20257,549 $133.90 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 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 2025, 2024, and 2023 were $138.59, $129.30, and $126.41, respectively. The fair values of restricted stock units that vested during fiscal years 2025, 2024, and 2023 were $633 million, $519 million, and $460 million, respectively. --- ## Modified: (9) ROYALTIES AND LICENSES **Key changes:** - Reworded sentence: "Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and/or distribution affiliates." - Added sentence: "During fiscal years 2025 and 2023, we did not recognize any material losses or impairment charges on royalty-based commitments." - Reworded sentence: "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, 20252024Other current assets$55 $98 Other assets23 24 Royalty-related assets$78 $122 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." - Reworded sentence: "56 56 56 Table of Contents Table of Contents" **Prior (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 **Current (2025):** Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and/or distribution affiliates. Content license royalties consist of payments made to sports organizations, movie studios, and others 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 2025 and 2023, we did not recognize any material losses or impairment charges on royalty-based commitments. 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. 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, 20252024Other current assets$55 $98 Other assets23 24 Royalty-related assets$78 $122 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, 20252024Accounts payable, accrued, and other current liabilities$226 $189 Other liabilities9 20 Royalty-related liabilities$235 $209 As of March 31, 2025, we were committed to pay approximately $1,509 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. 56 56 56 Table of Contents Table of Contents --- ## 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, 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 Total comprehensive income (loss) - - - 1,121 (15)1,106 Stock-based compensation - - 642 - - 642 Issuance of common stock3,532 - (156) - - (156)Common stock repurchases and excise tax(17,632) - (486)(2,034) - (2,520)Cash dividends declared ($0.76 per common share) - - - (199) - (199)Balances as of March 31, 2025252,315 $3 $ - $6,470 $(87)$6,386 Cash dividends declared ($0.76 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 (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 **Current (2025):** (In millions, except share data in thousands) Common StockAdditional Paid-inCapitalRetainedEarningsAccumulatedOtherComprehensiveIncome (Loss)TotalStockholders'EquitySharesAmountBalances 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 Total comprehensive income (loss) - - - 1,121 (15)1,106 Stock-based compensation - - 642 - - 642 Issuance of common stock3,532 - (156) - - (156)Common stock repurchases and excise tax(17,632) - (486)(2,034) - (2,520)Cash dividends declared ($0.76 per common share) - - - (199) - (199)Balances as of March 31, 2025252,315 $3 $ - $6,470 $(87)$6,386 Cash dividends declared ($0.76 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: Advertising Costs **Key changes:** - Reworded sentence: "For the fiscal years ended March 31, 2025, 2024, and 2023, advertising expense, net of vendor reimbursements, totaled approximately $289 million, $375 million, and $348 million, respectively." **Prior (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. **Current (2025):** 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. For the fiscal years ended March 31, 2025, 2024, and 2023, advertising expense, net of vendor reimbursements, totaled approximately $289 million, $375 million, and $348 million, respectively. --- ## Modified: Stock-Based Compensation Expense **Key changes:** - Reworded sentence: "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, 202520242023Cost of revenue$14 $8 $7 Research and development457 418 367 Marketing and sales56 52 59 General and administrative115 106 115 Stock-based compensation expense$642 $584 $548 During the fiscal years ended March 31, 2025, 2024, and 2023, we recognized $85 million, $79 million, and $72 million, respectively, of deferred income tax benefit related to our stock-based compensation expense." **Prior (2024):** 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. **Current (2025):** 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, 202520242023Cost of revenue$14 $8 $7 Research and development457 418 367 Marketing and sales56 52 59 General and administrative115 106 115 Stock-based compensation expense$642 $584 $548 During the fiscal years ended March 31, 2025, 2024, and 2023, we recognized $85 million, $79 million, and $72 million, respectively, of deferred income tax benefit related to our stock-based compensation expense. As of March 31, 2025, our total unrecognized compensation cost related to stock options, restricted stock units, market-based restricted stock units, and performance-based restricted stock units was $766 million and is expected to be recognized over a weighted-average service period of 1.7 years. Of the $766 million of unrecognized compensation cost, $740 million relates to restricted stock units, $13 million relates to performance-based restricted stock units, and $13 million relates to market-based restricted stock units. --- ## 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, 2020 through March 31, 2025, 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: "*Based on $100 invested on March 31, 2020 in stock or index, including reinvestment of dividends." **Prior (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. **Current (2025):** 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, 2020 through March 31, 2025, 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. *Based on $100 invested on March 31, 2020 in stock or index, including reinvestment of dividends. March 31, 202020212022202320242025Electronic Arts Inc.$100 $135 $127 $122 $135 $148 S&P 500 Index100 156 181 167 217 235 Nasdaq Composite Index100 173 187 162 219 233 RDG Technology Composite Index100 170 183 166 206 221 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, 2025, 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: 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, that we cannot realize anticipated tax benefits or incur tax costs, that we acquire liabilities and/or litigation from acquired companies, that our due diligence process does not identify significant issues or liabilities, 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." - Removed sentence: "Additionally, we have divested and may in the future divest certain products and services that no longer fit our long-term strategies." - Removed sentence: "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." **Prior (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. **Current (2025):** 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, that we cannot realize anticipated tax benefits or incur tax costs, that we acquire liabilities and/or litigation from acquired companies, that our due diligence process does not identify significant issues or liabilities, 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 be able to complete the acquisition as a result of challenges in obtaining regulatory approvals or we may not integrate these businesses successfully, retain key employees from acquired companies and 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. --- ## Modified: As of March 31, 2024 **Key changes:** - Reworded sentence: "Amortization of intangibles, including impairments, for the fiscal years ended March 31, 2025, 2024, and 2023 are classified in the Consolidated Statements of Operations as follows (in millions): Year Ended March 31, 202520242023Cost of revenue$40 $76 $120 Operating expenses67 142 158 Restructuring - - 66 Total$107 $218 $344 During fiscal year 2025, we did not recognize any material impairment charges for acquisition-related intangible assets." - Reworded sentence: "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 (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 **Current (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 --- ## Modified: Restructuring **Key changes:** - Reworded sentence: "47 47 47 Table of Contents Table of Contents" **Prior (2024):** Restructuring expenses for fiscal years 2024 and 2023 were as follows (in millions): **Current (2025):** We generally recognize employee severance costs when payments are probable and amounts are estimable or when notification occurs, depending on the region in which an employee works. Costs related to non-lease contracts without future benefit or contract termination are recognized at the earlier of the contract termination or the cease-use dates. Other exit-related costs are recognized as incurred. 47 47 47 Table of Contents Table of Contents --- ## Modified: Legal Proceedings **Key changes:** - Reworded sentence: "66 66 66 Table of Contents Table of Contents" **Prior (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 **Current (2025):** 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. 66 66 66 Table of Contents Table of Contents --- ## Modified: Our industry changes rapidly and we may fail to anticipate or successfully implement new or evolving technologies, or adopt successful business strategies, distribution methods or services. **Key changes:** - Reworded sentence: "Rapid changes in our industry require us to anticipate, sometimes years in advance, the ways in which our business can remain competitive in the market." - Reworded sentence: "There can be no assurance that the strategic investments we pursue will achieve financial results that meet or exceed our expectations." **Prior (2024):** 8 8 8 Table of Contents Table of Contents Rapid changes in our industry require us to anticipate, sometimes years in advance, the ways in which our business can remain competitive in the market. We have invested, and in the future may invest, in new business and marketing strategies, tools and technologies, distribution methods, products, and services. There can be no assurance that these strategic investments will achieve expected returns. No assurance can be given that the tools and technology we choose to implement, the business and marketing strategies we choose to adopt and the products, services and platform strategies that we pursue will achieve financial results that meet or exceed our expectations. We also may miss opportunities or fail to respond quickly enough to industry change, including the adoption of tools and technology or distribution methods or develop products, services or new ways to engage with our games that become popular with consumers, which could adversely affect our financial results. **Current (2025):** Rapid changes in our industry require us to anticipate, sometimes years in advance, the ways in which our business can remain competitive in the market. We have invested, and in the future may invest, in new business and marketing strategies, tools and technologies, distribution methods, products, and services. There can be no assurance that the strategic investments we pursue will achieve financial results that meet or exceed our expectations. We may miss opportunities or fail to respond quickly enough to industry change, including the failure to adopt tools, technology and distribution methods or failure to develop new products, services or ways to engage with our games that become popular with consumers, each of which could adversely affect our financial results. For example, we expect our competitive landscape to evolve as artificial intelligence technology advances and is integrated into the markets in which we compete. Our competitors may incorporate new artificial intelligence tools and technology into their existing products and services more successfully, may use these new tools and technology more efficiently or may create new categories of products and services before we do. --- ## Modified: Interest Expense **Key changes:** - Reworded sentence: "The following table summarizes our interest expense recognized for fiscal years 2025, 2024, and 2023 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202520242023Amortization of debt discount$ - $ - $(1)Amortization of debt issuance costs(2)(2)(2)Coupon interest expense(55)(55)(55)Other interest expense(1)(1) - Total interest expense$(58)$(58)$(58) 63 63 63 Table of Contents Table of Contents" **Prior (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)$(58) 62 62 62 Table of Contents Table of Contents **Current (2025):** The following table summarizes our interest expense recognized for fiscal years 2025, 2024, and 2023 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31,202520242023Amortization of debt discount$ - $ - $(1)Amortization of debt issuance costs(2)(2)(2)Coupon interest expense(55)(55)(55)Other interest expense(1)(1) - Total interest expense$(58)$(58)$(58) 63 63 63 Table of Contents Table of Contents --- ## Modified: Remaining Performance Obligations **Key changes:** - Reworded sentence: "As of March 31, 2025, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,866 million." - Reworded sentence: "58 58 58 Table of Contents Table of Contents" **Prior (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 **Current (2025):** As of March 31, 2025, revenue allocated to remaining performance obligations consists of our deferred revenue balance of $1,866 million. These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. 58 58 58 Table of Contents Table of Contents --- ## 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, 2025 are as follows (in millions): As of March 31, 2024ActivityEffects of Foreign Currency TranslationAs of March 31, 2025Goodwill$5,747 $ - $(3)$5,744 Accumulated impairment(368) - - (368)Total$5,379 $ - $(3)$5,376 As of" **Prior (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 **Current (2025):** The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2025 are as follows (in millions): As of March 31, 2024ActivityEffects of Foreign Currency TranslationAs of March 31, 2025Goodwill$5,747 $ - $(3)$5,744 Accumulated impairment(368) - - (368)Total$5,379 $ - $(3)$5,376 As of --- ## Modified: At March 31, 2024 **Key changes:** - Reworded sentence: "64 64 64 Table of Contents Table of Contents Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2025 and 2024 are as follows (in millions):As of March 31,Balance Sheet Classification20252024Operating lease ROU assets$237 $243 Other assetsOperating lease liabilities$67 $66 Accounts payable, accrued, and other current liabilitiesNoncurrent operating lease liabilities267 248 Other liabilitiesTotal operating lease liabilities$334 $314 Operating lease ROU assets Operating lease ROU assets Operating lease liabilities Operating lease liabilities Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2025 were as follows (in millions): Fiscal Years Ending March 31,2026$77 202767 202852 202935 203029 Thereafter123 Total future lease payments383 Less imputed interest(49)Total operating lease liabilities$334 In addition to the amounts included in the table above, as of March 31, 2025, we have entered into an office lease that has not yet commenced with aggregate future lease payments of approximately $17 million." **Prior (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 **Current (2025):** 64 64 64 Table of Contents Table of Contents Operating lease ROU assets and liabilities recorded on our Consolidated Balance Sheets as of March 31, 2025 and 2024 are as follows (in millions):As of March 31,Balance Sheet Classification20252024Operating lease ROU assets$237 $243 Other assetsOperating lease liabilities$67 $66 Accounts payable, accrued, and other current liabilitiesNoncurrent operating lease liabilities267 248 Other liabilitiesTotal operating lease liabilities$334 $314 Operating lease ROU assets Operating lease ROU assets Operating lease liabilities Operating lease liabilities Noncurrent operating lease liabilities Noncurrent operating lease liabilities Future minimum lease payments under operating leases as of March 31, 2025 were as follows (in millions): Fiscal Years Ending March 31,2026$77 202767 202852 202935 203029 Thereafter123 Total future lease payments383 Less imputed interest(49)Total operating lease liabilities$334 In addition to the amounts included in the table above, as of March 31, 2025, we have entered into an office lease that has not yet commenced with aggregate future lease payments of approximately $17 million. This lease is expected to commence in fiscal year 2026, and will have a lease term of 10 years. 65 65 65 Table of Contents Table of Contents --- ## Modified: March 31, 2025Effective Tax RateMarch 31, 2024Effective Tax Rate$484 30.2 %$316 19.9 % **Key changes:** - Reworded sentence: "Our effective tax rate for the fiscal year ended March 31, 2025 was 30.2 percent as compared to 19.9 percent in fiscal year 2024." - Reworded sentence: "Excluding the effects of these items, the effective tax rate for fiscal year 2024 would have been 26.7 percent." **Prior (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. **Current (2025):** Our effective tax rate for the fiscal year ended March 31, 2025 was 30.2 percent as compared to 19.9 percent in fiscal year 2024. During the fiscal year ended March 31, 2025, we recognized a $51 million tax charge to increase the valuation allowance on Swiss deferred tax assets as a result of various factors including our business operations, geographical income mix, and an increase in the Swiss interest rates. Excluding the effect of the change in valuation allowance, the effective tax rate for fiscal year 2025 would have been 27.0 percent. 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 26.7 percent. 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: We are subject to complex and prescriptive regulations, and consumer sensitivity, regarding data privacy practices. **Key changes:** - Reworded sentence: "We are subject to global data privacy, data protection, security and consumer-protection laws and regulations." **Prior (2024):** We are subject to global data privacy, data protection, security and consumer-protection laws and regulations worldwide. These laws and regulations are emerging and evolving and the interpretation, application and enforcement of these laws and regulations often are uncertain, contradictory and changing. The failure to maintain data practices that are compliant with applicable laws and regulations, or evolving interpretations of applicable laws and regulations, could result in inquiries from enforcement agencies or direct consumer complaints, resulting in civil or criminal penalties, and could adversely impact our reputation and brand. In addition, the operational costs of compliance with these regulations is high and will likely continue to increase. Even if we remain in compliance with applicable laws and regulations, consumer sensitivity to the collection and processing of their personal information continues to increase. Any real or perceived failures in maintaining acceptable data privacy practices, including allowing improper or unauthorized access, acquisition or misuse and/or uninformed disclosure of consumer, employee and other information, or a perception that we do not adequately secure this information or provide consumers with adequate notice about the information that they authorize us to collect and disclose could result in brand, reputational, or other harms to the business, result in costly remedial measures, deter current and potential customers from using our products and services and cause our financial results to be materially affected. Third party vendors and business partners receive access to certain information that we collect. These vendors and business partners may not prevent data security breaches with respect to the information we provide them or fully enforce our policies, contractual obligations and disclosures regarding the collection, use, storage, transfer and retention of personal data. A data security breach of one of our vendors or business partners could cause reputational and financial harm to them and us, negatively impact our ability to offer our products and services, and could result in legal liability, costly remedial measures, governmental and regulatory investigations, harm our profitability, reputation and brand, and/or cause our financial results to be materially affected. **Current (2025):** We are subject to global data privacy, data protection, security and consumer-protection laws and regulations. These laws and regulations are emerging and evolving and the interpretation, application and enforcement of these laws and regulations often are uncertain, contradictory and changing. The failure to maintain data practices that are compliant with applicable laws and regulations, or evolving interpretations of applicable laws and regulations, could result in inquiries from enforcement agencies or direct consumer complaints, resulting in civil or criminal penalties, and could adversely impact our reputation and brand. In addition, the operational costs of compliance with these regulations is high and will likely continue to increase. Even if we remain in compliance with applicable laws and regulations, consumer sensitivity to the collection and processing of their personal information continues to increase. Any real or perceived failures in maintaining acceptable data privacy practices, including allowing improper or unauthorized access, acquisition or misuse and/or uninformed disclosure of consumer, employee and other information, or a perception that we do not adequately secure this information or provide consumers with adequate notice about the information that they authorize us to collect and disclose could result in brand, reputational, or other harms to the business, result in costly remedial measures, deter current and potential customers from using our products and services and cause our financial results to be materially affected. Third party vendors and business partners receive access to certain information that we collect. These vendors and business partners may not prevent data security breaches with respect to the information we provide them or fully enforce our policies, contractual obligations and disclosures regarding the collection, use, storage, transfer and retention of personal data. A data security breach of one of our vendors or business partners could cause reputational and financial harm to them and us, negatively impact our ability to offer our products and services, and could result in legal liability, costly remedial measures, governmental and regulatory investigations, harm our profitability, reputation and brand, and/or cause our financial results to be materially affected. --- ## Modified: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions)202520242023Net income$1,121 $1,273 $802 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities - 1 2 Net gains (losses) on derivative instruments1 (3)(34)Foreign currency translation adjustments(16)(3)(50)Total other comprehensive income (loss), net of tax(15)(5)(82)Total comprehensive income$1,106 $1,268 $720 See accompanying Notes to Consolidated Financial Statements." **Prior (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 **Current (2025):** Year Ended March 31,(In millions)202520242023Net income$1,121 $1,273 $802 Other comprehensive income (loss), net of tax:Net gains (losses) on available-for-sale securities - 1 2 Net gains (losses) on derivative instruments1 (3)(34)Foreign currency translation adjustments(16)(3)(50)Total other comprehensive income (loss), net of tax(15)(5)(82)Total comprehensive income$1,106 $1,268 $720 See accompanying Notes to Consolidated Financial Statements. 36 36 36 Table of Contents Table of Contents --- ## Modified: As of March 31, 2024 **Key changes:** - Reworded sentence: "The effects of cash flow hedge accounting in our Consolidated Statements of Operations for the fiscal years ended March 31, 2025, 2024, and 2023 are as follows (in millions):Year Ended March 31,202520242023Net 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$7,463 $2,569 $7,562 $2,420 $7,426 $2,328 Gains (losses) on foreign currency forward contracts designated as cash flow hedges$18 $(11)$56 $(8)$185 $(18)" **Prior (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 **Current (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 --- ## Modified: (18) SEGMENT AND REVENUE INFORMATION **Key changes:** - Reworded sentence: "As of March 31, 2025, we have one reportable segment, which represents our only operating segment." - Reworded sentence: "This also includes online-hosted services such as our Ultimate Team game mode, revenue allocated to the future update rights from licensing of software to third-parties, subscription services, and revenue recognized from third parties that publish games and services under a license to certain of our intellectual property assets." - Reworded sentence: "Information about our total net revenue by platform for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions):Year Ended March 31, 202520242023Platform net revenueConsole$4,776 $4,632 $4,443 PC and other1,547 1,717 1,729 Mobile1,140 1,213 1,254 Net revenue$7,463 $7,562 $7,426 Information about our operations in North America and internationally for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31, 202520242023Net revenue from unaffiliated customersNorth America$3,078 $3,001 $3,151 International4,385 4,561 4,275 Net revenue$7,463 $7,562 $7,426 As of March 31, 20252024Long-lived assetsNorth America$438 $420 International148 158 Total$586 $578 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." - Reworded sentence: "Revenue generated by our Swiss legal entity during fiscal years 2025, 2024, and 2023 represents $4,279 million, $4,374 million and $4,085 million or 57 percent, 58 percent and 55 percent of our total net revenue, respectively." - Added sentence: "76 76 76 Table of Contents Table of Contents In fiscal year 2025, our direct sales to Sony and Microsoft represented approximately 39 percent and 17 percent of total net revenue, respectively." **Prior (2024):** 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 **Current (2025):** 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. As of March 31, 2025, we have one reportable segment, which represents our only operating segment. Our CODM makes decisions on resource allocation and assesses performance of the business based on our consolidated results, including net income. Our CODM does not review any information regarding total assets on an operating segment basis, and accordingly, no disclosure is made with respect thereto. Information about our single reportable segment net revenue, net income, and significant segment expenses for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31,202520242023Net revenue$7,463 $7,562 $7,426 Less:Cost of revenue (1)1,489 1,626 1,665 Research and development (1)2,112 2,002 1,961 Marketing and sales (1)906 967 919 General and administrative (1)625 583 568 Amortization and impairment of intangibles107 218 278 Restructuring and related charges62 64 155 Stock-based compensation642 584 548 Interest and other (income) expenses, net(85)(71)6 Provision for income taxes484 316 524 Net income$1,121 $1,273 $802 (1) Excludes amounts related to amortization and impairment of intangibles, restructuring and related charges, and stock-based compensation, which are presented separately in the table above. Cost of revenue (1) Research and development (1) Marketing and sales (1) General and administrative (1) (1) Excludes amounts related to amortization and impairment of intangibles, restructuring and related charges, and stock-based compensation, which are presented separately in the table above. Information about our total net revenue by timing of recognition for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions):Year Ended March 31,202520242023Net revenue by timing of recognitionRevenue recognized at a point in time$2,665 $2,563 $2,389 Revenue recognized over time4,798 4,999 5,037 Net revenue$7,463 $7,562 $7,426 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 online-hosted services such as our Ultimate Team game mode, revenue allocated to the future update rights from licensing of software to third-parties, subscription services, and revenue recognized from third parties that publish games and services under a license to certain of our intellectual property assets. 75 75 75 Table of Contents Table of Contents Information about our total net revenue by composition for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31, 202520242023Net revenue by compositionFull game downloads$1,478 $1,343 $1,262 Packaged goods524 672 675 Full game2,002 2,015 1,937 Live services and other5,461 5,547 5,489 Net revenue$7,463 $7,562 $7,426 Live services and other Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from full games that are sold physically to mass market retailers, specialty stores and through distribution arrangements. 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. Information about our total net revenue by platform for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions):Year Ended March 31, 202520242023Platform net revenueConsole$4,776 $4,632 $4,443 PC and other1,547 1,717 1,729 Mobile1,140 1,213 1,254 Net revenue$7,463 $7,562 $7,426 Information about our operations in North America and internationally for the fiscal years ended March 31, 2025, 2024, and 2023 is presented below (in millions): Year Ended March 31, 202520242023Net revenue from unaffiliated customersNorth America$3,078 $3,001 $3,151 International4,385 4,561 4,275 Net revenue$7,463 $7,562 $7,426 As of March 31, 20252024Long-lived assetsNorth America$438 $420 International148 158 Total$586 $578 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 2025, 2024, and 2023 represents $4,279 million, $4,374 million and $4,085 million or 57 percent, 58 percent and 55 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. 76 76 76 Table of Contents Table of Contents In fiscal year 2025, our direct sales to Sony and Microsoft represented approximately 39 percent and 17 percent of total net revenue, respectively. 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. 77 77 77 Table of Contents Table of Contents --- ## Modified: Trends in Our Business **Key changes:** - Reworded sentence: "Our net revenue attributable to live services and other was $5,461 million, $5,547 million, and $5,489 million for fiscal years 2025, 2024, and 2023, respectively, and we expect that live services net revenue will continue to be material to our business." - Reworded sentence: "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 continue to purchase a higher proportion of our games digitally." - Reworded sentence: "Our net revenue attributable to digital full game downloads was $1,478 million, $1,343 million, and $1,262 million during fiscal years 2025, 2024, and 2023, respectively; while our net revenue attributable to packaged goods sales was $524 million, 20 20 20 Table of Contents Table of Contents $672 million, and $675 million in fiscal years 2025, 2024, and 2023, respectively." - Reworded sentence: "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 are generally less than selling the same game through traditional retail and distribution channels." - Reworded sentence: "In addition, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities." **Prior (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. **Current (2025):** 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 $5,461 million, $5,547 million, and $5,489 million for fiscal years 2025, 2024, and 2023, 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 $4,365 million, $4,463 million, and $4,277 million for fiscal years 2025, 2024, and 2023, respectively. Growth in live services net revenue, including extra content may not be linear due to the competitive landscape, consumer buying patterns, and other factors. Our most popular live services are the extra content in the Ultimate Team mode associated with our sports franchises. Ultimate Team allows players to collect current and former players in order to build and compete as a personalized team. Live services net revenue generated from extra content purchased within Ultimate Team, a substantial portion of which was derived from FC Ultimate Team, is material to our business. 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 continue to purchase a 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 $1,478 million, $1,343 million, and $1,262 million during fiscal years 2025, 2024, and 2023, respectively; while our net revenue attributable to packaged goods sales was $524 million, 20 20 20 Table of Contents Table of Contents $672 million, and $675 million in fiscal years 2025, 2024, and 2023, 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 78 percent, 73 percent, and 68 percent of our total units sold during fiscal years 2025, 2024, and 2023, 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 are 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, we compete with large, diversified companies that have strengthened their interactive entertainment capabilities. Our competitors have access to certain resources such as larger budgets, tools, technologies, or IP portfolios that can lead to greater 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 has been derived from games based on a few popular titles, such as EA SPORTS FC, EA SPORTS College Football, 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. 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)20252024Net revenue$7,463 $7,562 Change in deferred net revenue (online-enabled games)(108)(132)Net bookings$7,355 $7,430 Net bookings Net bookings were $7,355 million for fiscal year 2025 primarily driven by sales related to our global football, American football, and The Sims franchises. Net bookings decreased $75 million or 1 percent as compared to fiscal year 2024 primarily due to the prior year release of Star Wars Jedi: Survivor, a year-over-year decrease in sales of extra content for Apex Legends, and a year-over-year decrease in sales related to our global football franchise, partially offset by increased sales from our American football franchises, driven by EA SPORTS College Football 25, and the release of Split Fiction. Live services and other net bookings were $5,338 million for fiscal year 2025, and decreased $87 million or 2 percent as compared to fiscal year 2024. The decrease in live services and other net bookings was due primarily to decreased sales of extra content from Apex Legends and from Ultimate Team within our global football franchise, partially offset by increased sales of extra content from Ultimate Team within our American football franchises, driven by EA SPORTS College Football 25, and global football mobile extra content sales. Full game net bookings were $2,017 million for fiscal year 2025, and increased $12 million or less than 1 percent as compared to fiscal year 2024 primarily due to a year-over-year increase in sales of our American football franchises, driven by EA SPORTS College Football 25, and the releases of Split Fiction and Dragon Age: The Veilguard, partially offset by the prior year release of Star Wars Jedi: Survivor, legacy FIFA titles within our global football franchise, and softness in EA SPORTS FC 25 full game sales. 21 21 21 Table of Contents Table of Contents --- ## Modified: Index to Consolidated Financial Statements **Key changes:** - Reworded sentence: "and Subsidiaries:Consolidated Balance Sheets as of March 31, 2025 and 202434Consolidated Statements of Operations for the Years Ended March 31, 2025, 2024, and 202335Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2025, 2024, and 202336Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2025, 2024, and 202337Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 202338Notes to Consolidated Financial Statements39Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)78 Consolidated Balance Sheets as of March 31, 2025 and 2024 34 Consolidated Statements of Operations for the Years Ended March 31, 2025, 2024, and 2023 35 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2025, 2024, and 2023 36 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2025, 2024, and 2023 37 Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 2023 38 Notes to Consolidated Financial Statements 39 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 78 33 33 33 Table of Contents Table of Contents" **Prior (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 **Current (2025):** PageConsolidated Financial Statements of Electronic Arts Inc. and Subsidiaries:Consolidated Balance Sheets as of March 31, 2025 and 202434Consolidated Statements of Operations for the Years Ended March 31, 2025, 2024, and 202335Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2025, 2024, and 202336Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2025, 2024, and 202337Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 202338Notes to Consolidated Financial Statements39Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185)78 Consolidated Balance Sheets as of March 31, 2025 and 2024 34 Consolidated Statements of Operations for the Years Ended March 31, 2025, 2024, and 2023 35 Consolidated Statements of Comprehensive Income for the Years Ended March 31, 2025, 2024, and 2023 36 Consolidated Statements of Stockholders' Equity for the Years Ended March 31, 2025, 2024, and 2023 37 Consolidated Statements of Cash Flows for the Years Ended March 31, 2025, 2024, and 2023 38 Notes to Consolidated Financial Statements 39 Report of Independent Registered Public Accounting Firm (KPMG LLP, Santa Clara, CA, Auditor Firm ID: 185) 78 33 33 33 Table of Contents Table of Contents --- ## Modified: (16) INTEREST AND OTHER INCOME (EXPENSE), NET **Key changes:** - Reworded sentence: "Interest and other income (expense), net, for the fiscal years ended March 31, 2025, 2024, and 2023 consisted of (in millions): Year Ended March 31, 202520242023Interest expense$(58)$(58)$(58)Interest income125 126 49 Net gain (loss) on foreign currency transactions(29)(10)31 Net gain (loss) on foreign currency forward contracts45 12 (29)Other income (expense), net2 1 1 Interest and other income (expense), net$85 $71 $(6) 73 73 73 Table of Contents Table of Contents" **Prior (2024):** Interest and other income (expense), net, for the fiscal years ended March 31, 2024, 2023, and 2022 consisted of (in millions): Year Ended March 31, 202420232022Interest expense$(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 **Current (2025):** Interest and other income (expense), net, for the fiscal years ended March 31, 2025, 2024, and 2023 consisted of (in millions): Year Ended March 31, 202520242023Interest expense$(58)$(58)$(58)Interest income125 126 49 Net gain (loss) on foreign currency transactions(29)(10)31 Net gain (loss) on foreign currency forward contracts45 12 (29)Other income (expense), net2 1 1 Interest and other income (expense), net$85 $71 $(6) 73 73 73 Table of Contents Table of Contents --- ## Modified: Stock Repurchase Program **Key changes:** - Reworded sentence: "This program was terminated on May 8, 2024." - Reworded sentence: "In February 2025, we entered into an ASR Agreement with Goldman Sachs & Co." - Reworded sentence: "Amount(a) Amount(a) Fiscal Year 2023 Fiscal Year 2024 Fiscal Year 2025 (a)Amount excludes excise taxes." - Reworded sentence: "72 72 72 Table of Contents Table of Contents" **Prior (2024):** 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 **Current (2025):** 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. 71 71 71 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 superseded and replaced 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. In February 2025, we entered into an ASR Agreement with Goldman Sachs & Co. LLC., under which we purchased an aggregate of $1.0 billion of our common stock as part of the May 2024 repurchase program. Under the terms of the ASR Agreement, we received an aggregate delivery of 7.0 million shares of our common stock as of March 31, 2025, which were immediately retired. Final settlement of the ASR Agreement occurred on April 25, 2025 and we received an additional 0.4 million shares, for total repurchases of 7.4 million shares at an average price of $135.05. The total number of shares delivered and the average purchase price paid per share are determined upon final settlement based on the volume weighted average price over the term of the ASR, less an agreed upon discount. Based on our ability to settle the ASR Agreement in shares, the $1.0 billion prepayment under the ASR Agreement was classified as a reduction to additional paid-in capital and common stock within the Consolidated Statement of Stockholders' Equity. The following table summarizes total shares repurchased during fiscal years 2025, 2024, and 2023: November 2020 ProgramAugust 2022 ProgramMay 2024 ProgramTotal(In millions)SharesAmountSharesAmount(a)SharesAmount(a)SharesAmountFiscal Year 20235.1 $650 5.3 $645 - $ - 10.4 $1,295 Fiscal Year 2024 - $ - 10.0 $1,300 - $ - 10.0 $1,300 Fiscal Year 2025 - $ - 1.2 $152 16.4 $2,348 17.6 $2,500 (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) Amount(a) Fiscal Year 2023 Fiscal Year 2024 Fiscal Year 2025 (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. 72 72 72 Table of Contents Table of Contents --- ## Modified: Stock Options **Key changes:** - Reworded sentence: "All outstanding options were fully vested and exercisable as of March 31, 2025." **Prior (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. **Current (2025):** 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, 2025. The following table summarizes our stock option activity for the fiscal year ended March 31, 2025: Options(in thousands)Weighted-AverageExercise PricesWeighted-AverageRemainingContractualTerm (in years)AggregateIntrinsic Value(in millions)Outstanding as of March 31, 202412 $64.00 Granted3 136.58 Exercised(8)92.08 Forfeited, cancelled or expired(1)58.76 Outstanding as of March 31, 20256 $63.51 3.25$0.5 Vested and expected to vest6 $63.51 3.25$0.5 Exercisable as of March 31, 20256 $63.51 3.25$0.5 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 Exercisable as of March 31, 2025 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2025, 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 2025, 2024, and 2023 were $0.4 million, $10 million, and $15 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock options. --- ## Modified: Market-Based Restricted Stock Units **Key changes:** - Reworded sentence: "The number of shares of common stock to be issued at vesting for these awards are based on our total stockholder return ("TSR") relative to the performance of either companies in the Nasdaq-100 (for awards granted in fiscal years 2023 and 2024) or the S&P 500 Index (for awards granted in fiscal year 2025) ("Relative TSR") and on absolute TSR performance measured against pre-established goals, which started in fiscal year 2025 ("Absolute TSR"), each over a three-year period." - Reworded sentence: "The following table summarizes our ESPP activity for fiscal years ended March 31, 2025, 2024, and 2023: Shares Issued (in millions)Exercise Prices for Purchase RightsWeighted-Average Fair Values of Purchase RightsFiscal Year 20230.7 $96.34 - $111.86$33.91 Fiscal Year 20240.8 $94.96 - $102.58$30.82 Fiscal Year 20250.7 $102.58 - $120.94$34.07 Fiscal Year 2023 $96.34 - $111.86 Fiscal Year 2024 $94.96 - $102.58 Fiscal Year 2025 $102.58 - $120.94 The fair values were estimated on the date of grant using the Black-Scholes valuation model." - Reworded sentence: "As of March 31, 2025, 2.1 million shares were available for grant under our ESPP." **Prior (2024):** 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 **Current (2025):** 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 for these awards are based on our total stockholder return ("TSR") relative to the performance of either companies in the Nasdaq-100 (for awards granted in fiscal years 2023 and 2024) or the S&P 500 Index (for awards granted in fiscal year 2025) ("Relative TSR") and on absolute TSR performance measured against pre-established goals, which started in fiscal year 2025 ("Absolute TSR"), each over a three-year period. Payout with respect to the Relative TSR component ranges from zero to 200 percent of the target number of Relative TSR units granted, and payout with respect to the Absolute TSR component ranges from zero to 75 percent of the target number of the underlying base award (which is comprised of Performance-Based Restricted Stock Units and Relative TSR units). These awards cliff-vest after the completion of the three-year measurement period, contingent on the achievement of both market and service conditions. We amortize the fair values of market-based restricted stock units over the requisite service 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, 2025:Market-BasedRestricted StockUnits(in thousands)Weighted-Average GrantDate Fair ValueOutstanding as of March 31, 2024354 $168.53 Granted381 80.91 Vested(25)173.25 Forfeited or cancelled(73)173.25 Outstanding as of March 31, 2025637 $115.43 Outstanding as of March 31, 2024 Outstanding as of March 31, 2025 The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years 2025, 2024, and 2023 were $80.91, $152.92, and $176.70, respectively. The fair values of market-based restricted stock units that vested during fiscal years 2025, 2024, and 2023 were $3 million, $4 million, and $12 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, 2025, 2024, and 2023: Shares Issued (in millions)Exercise Prices for Purchase RightsWeighted-Average Fair Values of Purchase RightsFiscal Year 20230.7 $96.34 - $111.86$33.91 Fiscal Year 20240.8 $94.96 - $102.58$30.82 Fiscal Year 20250.7 $102.58 - $120.94$34.07 Fiscal Year 2023 $96.34 - $111.86 Fiscal Year 2024 $94.96 - $102.58 Fiscal Year 2025 $102.58 - $120.94 The fair values were estimated on the date of grant using the Black-Scholes valuation model. We issue new common stock out of the ESPP's pool of authorized shares. As of March 31, 2025, 2.1 million shares were available for grant under our ESPP. 70 70 70 Table of Contents Table of Contents --- ## Modified: Net Revenue by Composition **Key changes:** - Reworded sentence: "Our net revenue by composition for fiscal years 2025 and 2024 was as follows (in millions):Year Ended March 31,20252024$ Change% ChangeNet revenue:Full game downloads$1,478 $1,343 $135 10 %Packaged goods524 672 (148)(22)%Full game$2,002 $2,015 $(13)(1)%Live services and other$5,461 $5,547 $(86)(2)%Total net revenue$7,463 $7,562 $(99)(1)% 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 2025 was $5,461 million, primarily driven by sales of extra content for our global football and American football franchises, Apex Legends, and The Sims 4." **Prior (2024):** Our net revenue by composition for fiscal years 2024 and 2023 was as follows (in millions):Year Ended March 31,20242023$ 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 $58 million, or 1 percent, as compared to fiscal year 2023. This increase was primarily driven by 26 26 26 Table of Contents Table of Contents sales of extra content for Ultimate Team within our global football franchise, partially offset by a decrease in net revenue primarily due to decreased sales of extra content for Apex Legends, and within our casual mobile catalog portfolio. **Current (2025):** Our net revenue by composition for fiscal years 2025 and 2024 was as follows (in millions):Year Ended March 31,20252024$ Change% ChangeNet revenue:Full game downloads$1,478 $1,343 $135 10 %Packaged goods524 672 (148)(22)%Full game$2,002 $2,015 $(13)(1)%Live services and other$5,461 $5,547 $(86)(2)%Total net revenue$7,463 $7,562 $(99)(1)% Full Game Net Revenue Full game net revenue includes full game downloads and packaged goods. Full game downloads primarily include revenue from digital sales of full games on console, PC, and certain licensing revenue. Packaged goods primarily includes revenue from full games that are sold physically to mass market retailers, specialty stores and through distribution arrangements. Full game net revenue for fiscal year 2025 was $2,002 million, primarily driven by EA SPORTS FC 25, EA SPORTS College Football 25, EA SPORTS FC 24, and EA SPORTS Madden NFL 25. Full game net revenue for fiscal year 2025 decreased $13 million, or 1 percent, as compared to fiscal year 2024. This decrease was primarily driven by the prior year release of Star Wars Jedi: Survivor, and legacy FIFA titles within our global football franchise, partially offset by our American football franchises driven by EA SPORTS College Football 25 and our EA SPORTS FC 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 2025 was $5,461 million, primarily driven by sales of extra content for our global football and American football franchises, Apex Legends, and The Sims 4. Live services and other net revenue for fiscal 26 26 26 Table of Contents Table of Contents year 2025 decreased $86 million, or 2 percent, as compared to fiscal year 2024. This decrease was primarily driven by decreased sales of extra content for Apex Legends and from sunset mobile titles, partially offset by an increase in net revenue primarily driven by sales of extra content for Ultimate Team within our American football and global football franchises --- ## Modified: Development, Sports Organizations, and Other Content Licenses: Payments and Commitments **Key changes:** - Reworded sentence: "In addition, we have certain 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." - Reworded sentence: "The following table summarizes our minimum contractual obligations as of March 31, 2025 (in millions): Fiscal Years Ending March 31,Total20262027202820292030ThereafterUnrecognized commitmentsDeveloper/licensor commitments$1,509 $353 $404 $205 $189 $186 $172 Marketing commitments1,248 298 315 223 133 154 125 Senior Notes interest676 54 36 36 36 36 478 Operating lease imputed interest49 12 9 6 6 5 11 Operating leases not yet commenced17 - 1 2 2 2 10 Other purchase obligations293 166 80 30 12 5 - Total unrecognized commitments3,792 883 845 502 378 388 796 Recognized commitmentsSenior Notes principal and interest1,906 406 - - - - 1,500 Operating leases334 65 58 46 29 24 112 Transition Tax and other taxes7 7 - - - - - Total recognized commitments2,247 478 58 46 29 24 1,612 Total Commitments$6,039 $1,361 $903 $548 $407 $412 $2,408 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." **Prior (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. **Current (2025):** 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 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, 2025 (in millions): Fiscal Years Ending March 31,Total20262027202820292030ThereafterUnrecognized commitmentsDeveloper/licensor commitments$1,509 $353 $404 $205 $189 $186 $172 Marketing commitments1,248 298 315 223 133 154 125 Senior Notes interest676 54 36 36 36 36 478 Operating lease imputed interest49 12 9 6 6 5 11 Operating leases not yet commenced17 - 1 2 2 2 10 Other purchase obligations293 166 80 30 12 5 - Total unrecognized commitments3,792 883 845 502 378 388 796 Recognized commitmentsSenior Notes principal and interest1,906 406 - - - - 1,500 Operating leases334 65 58 46 29 24 112 Transition Tax and other taxes7 7 - - - - - Total recognized commitments2,247 478 58 46 29 24 1,612 Total Commitments$6,039 $1,361 $903 $548 $407 $412 $2,408 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, 2025; 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, 2025, we had a net liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $617 million, of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. --- ## Modified: (1) DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION **Key changes:** - Reworded sentence: "We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, and mobile devices." - Reworded sentence: "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 harnessing our communities to grow in, around, and beyond our games." **Prior (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. **Current (2025):** 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, and mobile devices. We create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of players. 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 harnessing our communities to grow in, around, and beyond our games. --- ## Modified: About Electronic Arts **Key changes:** - Reworded sentence: "We develop, market, publish and deliver games, content and services that can be experienced on game consoles, PCs, and mobile devices." - Reworded sentence: "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 harnessing our communities to grow in, around, and beyond our games." **Prior (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. **Current (2025):** 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, and mobile devices. We create innovative games and experiences that deliver high-quality interactive entertainment and drive engagement across our global network of hundreds of millions of players. 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 harnessing our communities to grow in, around, and beyond our games. --- ## Modified: Deferred net revenue **Key changes:** - Reworded sentence: "Deferred net revenue as of March 31, 2025 and 2024, consisted of (in millions):As of March 31,20252024Deferred net revenue (online-enabled games)$1,700 $1,814 Deferred net revenue (other)94 59 Deferred net revenue (noncurrent)72 85 Total deferred net revenue$1,866 $1,958 During the fiscal years ended March 31, 2025 and 2024, we recognized $1,875 million and $1,987 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period." **Prior (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 **Current (2025):** Deferred net revenue as of March 31, 2025 and 2024, consisted of (in millions):As of March 31,20252024Deferred net revenue (online-enabled games)$1,700 $1,814 Deferred net revenue (other)94 59 Deferred net revenue (noncurrent)72 85 Total deferred net revenue$1,866 $1,958 During the fiscal years ended March 31, 2025 and 2024, we recognized $1,875 million and $1,987 million of revenue, respectively, that were included in the deferred net revenue balance at the beginning of the period. 57 57 57 Table of Contents Table of Contents --- ## Modified: Changes in Cash Flow **Key changes:** - Reworded sentence: "Net cash provided by operating activities decreased by $236 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by lower cash collections from sales and higher cash payments for income taxes, partially offset by lower royalty, marketing, and advertising payments." - Reworded sentence: "Net cash provided by investing activities increased by $244 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by a $203 million decrease in the purchase of short-term investments and a $63 million increase in proceeds from maturities and sales of short-term investments, partially offset by a $22 million increase in capital expenditures." - Reworded sentence: "Net cash used in financing activities increased by $1,239 million during fiscal year 2025, as compared to fiscal year 2024, primarily due to a $1,208 million increase in common stock repurchases and excise tax payments, and a $38 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation." **Prior (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. **Current (2025):** Operating Activities. Net cash provided by operating activities decreased by $236 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by lower cash collections from sales and higher cash payments for income taxes, partially offset by lower royalty, marketing, and advertising payments. Investing Activities. Net cash provided by investing activities increased by $244 million during fiscal year 2025, as compared to fiscal year 2024, primarily driven by a $203 million decrease in the purchase of short-term investments and a $63 million increase in proceeds from maturities and sales of short-term investments, partially offset by a $22 million increase in capital expenditures. Financing Activities. Net cash used in financing activities increased by $1,239 million during fiscal year 2025, as compared to fiscal year 2024, primarily due to a $1,208 million increase in common stock repurchases and excise tax payments, and a $38 million increase in cash paid to taxing authorities in connection with withholding taxes for stock-based compensation. --- ## Modified: Assets and Liabilities Measured at Fair Value on a Recurring Basis **Key changes:** - Reworded sentence: "As of March 31, 2025 and 2024, 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, 2025Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds904 904 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds46 - 46 - Short-term investmentsU.S." **Prior (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 **Current (2025):** As of March 31, 2025 and 2024, 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, 2025Quoted Prices inActive Markets for IdenticalFinancial InstrumentsSignificantOtherObservableInputsSignificantUnobservableInputs (Level 1)(Level 2)(Level 3)Balance Sheet ClassificationAssetsBank and time deposits$58 $58 $ - $ - Cash equivalentsMoney market funds904 904 - - Cash equivalentsAvailable-for-sale securities:Corporate bonds46 - 46 - Short-term investmentsU.S. Treasury securities12 12 - - Short-term investmentsForeign government securities4 - 4 - Short-term investmentsAsset-backed securities50 - 50 - Short-term investmentsForeign currency derivatives28 - 28 - Other current assets and other assetsDeferred compensation plan assets (a)36 36 - - Other assetsTotal assets at fair value$1,138 $1,010 $128 $ - LiabilitiesForeign currency derivatives$26 $ - $26 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)36 36 - - Other liabilitiesTotal liabilities at fair value$62 $36 $26 $ - As of --- ## Modified: Property and Equipment, Net **Key changes:** - Reworded sentence: "Property and equipment, net, as of March 31, 2025 and 2024 consisted of (in millions): As of March 31, 20252024Computer, equipment and software$1,033 $965 Buildings379 376 Leasehold improvements229 190 Equipment, furniture and fixtures, and other109 92 Land66 67 Construction in progress21 47 1,837 1,737 Less: accumulated depreciation(1,251)(1,159)Property and equipment, net$586 $578 Depreciation expense associated with property and equipment was $204 million, $196 million and $193 million for the fiscal years ended March 31, 2025, 2024, and 2023, respectively." **Prior (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 **Current (2025):** 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 14 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 14 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 in the period we obtain control of the licenses. The net book value of capitalized costs associated with internal-use software was $105 million and $93 million as of March 31, 2025 and 2024, respectively. 41 41 41 Table of Contents Table of Contents --- ## Modified: ELECTRONIC ARTS INC. AND SUBSIDIARIES **Key changes:** - Reworded sentence: "CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202520242023OPERATING ACTIVITIESNet income$1,121 $1,273 $802 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment356 404 536 Stock-based compensation642 584 548 Change in assets and liabilities:Receivables, net(115)119 (34)Other assets40 148 (103)Accounts payable, accrued, and other liabilities190 (208)144 Deferred income taxes, net(41)82 (221)Deferred net revenue (online-enabled games)(114)(87)(122)Net cash provided by operating activities2,079 2,315 1,550 INVESTING ACTIVITIESCapital expenditures(221)(199)(207)Proceeds from maturities and sales of short-term investments695 632 395 Purchase of short-term investments(437)(640)(405)Net cash provided by (used in) investing activities37 (207)(217)FINANCING ACTIVITIESProceeds from issuance of common stock78 77 80 Cash dividends paid(199)(205)(210)Cash paid to taxing authorities for shares withheld from employees(234)(196)(175)Common stock repurchases and excise taxes paid(2,508)(1,300)(1,295)Net cash used in financing activities(2,863)(1,624)(1,600)Effect of foreign exchange on cash and cash equivalents(17)(8)(41)Increase (decrease) in cash and cash equivalents(764)476 (308)Beginning cash and cash equivalents2,900 2,424 2,732 Ending cash and cash equivalents$2,136 $2,900 $2,424 Supplemental cash flow information:Cash paid during the year for income taxes, net$404 $300 $583 Cash paid during the year for interest56 56 56 Non-cash investing activities:Change in accrued capital expenditures$ - $25 $(3) See accompanying Notes to Consolidated Financial Statements." **Prior (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 **Current (2025):** CONSOLIDATED STATEMENTS OF CASH FLOWSYear Ended March 31,(In millions)202520242023OPERATING ACTIVITIESNet income$1,121 $1,273 $802 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation, amortization, accretion and impairment356 404 536 Stock-based compensation642 584 548 Change in assets and liabilities:Receivables, net(115)119 (34)Other assets40 148 (103)Accounts payable, accrued, and other liabilities190 (208)144 Deferred income taxes, net(41)82 (221)Deferred net revenue (online-enabled games)(114)(87)(122)Net cash provided by operating activities2,079 2,315 1,550 INVESTING ACTIVITIESCapital expenditures(221)(199)(207)Proceeds from maturities and sales of short-term investments695 632 395 Purchase of short-term investments(437)(640)(405)Net cash provided by (used in) investing activities37 (207)(217)FINANCING ACTIVITIESProceeds from issuance of common stock78 77 80 Cash dividends paid(199)(205)(210)Cash paid to taxing authorities for shares withheld from employees(234)(196)(175)Common stock repurchases and excise taxes paid(2,508)(1,300)(1,295)Net cash used in financing activities(2,863)(1,624)(1,600)Effect of foreign exchange on cash and cash equivalents(17)(8)(41)Increase (decrease) in cash and cash equivalents(764)476 (308)Beginning cash and cash equivalents2,900 2,424 2,732 Ending cash and cash equivalents$2,136 $2,900 $2,424 Supplemental cash flow information:Cash paid during the year for income taxes, net$404 $300 $583 Cash paid during the year for interest56 56 56 Non-cash investing activities:Change in accrued capital expenditures$ - $25 $(3) See accompanying Notes to Consolidated Financial Statements. 38 38 38 Table of Contents Table of Contents --- ## Modified: March 31, 2025 **Key changes:** - Reworded sentence: "Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 48 48 48 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 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." - Reworded sentence: "49 49 49 Table of Contents Table of Contents" **Prior (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 **Current (2025):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 48 48 48 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 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 deposit 13 - 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 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)31 31 - - Other liabilitiesTotal liabilities at fair value$51 $31 $20 $ - 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. 49 49 49 Table of Contents Table of Contents --- ## Modified: Financial Results **Key changes:** - Reworded sentence: "Our key financial results for our fiscal year ended March 31, 2025 were as follows: •Total net revenue was $7,463 million, down 1 percent year-over-year." **Prior (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. **Current (2025):** Our key financial results for our fiscal year ended March 31, 2025 were as follows: •Total net revenue was $7,463 million, down 1 percent year-over-year. •Live services and other net revenue was $5,461 million, down 2 percent year-over-year. •Gross margin was 79.3 percent, up 2 percentage points year-over-year. •Operating expenses were $4,400 million, up 2 percent year-over-year. •Operating income was $1,520 million, flat year-over-year. •Net income was $1,121 million with diluted earnings per share of $4.25. •Net cash provided by operating activities was $2,079 million, down 10 percent year-over-year. •Total cash, cash equivalents and short-term investments were $2,248 million. •We returned $2,699 million to stockholders through our capital return programs, repurchasing 17.6 million shares for approximately $2,500 million and returning $199 million through our quarterly cash dividend program. --- ## Modified: As of March 31, 2024 **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, 2025, 2024, and 2023, was as follows (in millions): Year Ended March 31, 202520242023Interest and other income (expense), netTotal amounts presented in our Consolidated Statements of Operations in which the effects of balance sheet hedges are recorded$85 $71 $(6)Gains (losses) on foreign currency forward contracts not designated as hedging instruments$45 $12 $(29) 51 51 51 Table of Contents Table of Contents" **Prior (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 **Current (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 --- ## Modified: Recently Issued Accounting Standards **Key changes:** - Removed sentence: "In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." - Removed sentence: "The amendments in this update expand annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses." - Removed sentence: "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." - Removed sentence: "We are currently evaluating the timing of adoption and impact of this ASU on our Consolidated Financial Statements and related disclosures." - Added sentence: "We are currently evaluating the impact of this ASU on our Consolidated Financial Statements and related disclosures." **Prior (2024):** 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 **Current (2025):** 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 impact of this ASU on our Consolidated Financial Statements and related disclosures. 39 39 39 Table of Contents Table of Contents In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional, disaggregated disclosure about certain income statement line items. This ASU is effective for our annual report for fiscal year 2028 and interim periods thereafter on a retrospective or prospective basis, with early adoption permitted. We are currently evaluating the timing of adoption and impact of this ASU on our Consolidated Financial Statements and related disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses 40 40 40 Table of Contents Table of Contents --- ## Modified: CONSOLIDATED BALANCE SHEETS **Key changes:** - Reworded sentence: "(In millions, except par value data)March 31, 2025March 31, 2024ASSETSCurrent assets:Cash and cash equivalents$2,136 $2,900 Short-term investments112 362 Receivables, net679 565 Other current assets349 420 Total current assets3,276 4,247 Property and equipment, net586 578 Goodwill5,376 5,379 Acquisition-related intangibles, net293 400 Deferred income taxes, net2,420 2,380 Other assets417 436 TOTAL ASSETS$12,368 $13,420 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable, accrued, and other current liabilities$1,359 $1,276 Deferred net revenue (online-enabled games)1,700 1,814 Senior notes, current, net400 - Total current liabilities3,459 3,090 Senior notes, net1,484 1,882 Income tax obligations594 497 Other liabilities445 438 Total liabilities5,982 5,907 Commitments and contingencies (See Note 14)Stockholders' equity:Preferred stock, $0.01 par value." - Reworded sentence: "1,000 shares authorized; 252 and 266 shares issued and outstanding, respectively3 3 Additional paid-in capital - - Retained earnings6,470 7,582 Accumulated other comprehensive income (loss)(87)(72)Total stockholders' equity6,386 7,513 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$12,368 $13,420 Commitments and contingencies (See Note 14) Preferred stock, $0.01 par value." - Reworded sentence: "1,000 shares authorized; 252 and 266 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements." **Prior (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 **Current (2025):** (In millions, except par value data)March 31, 2025March 31, 2024ASSETSCurrent assets:Cash and cash equivalents$2,136 $2,900 Short-term investments112 362 Receivables, net679 565 Other current assets349 420 Total current assets3,276 4,247 Property and equipment, net586 578 Goodwill5,376 5,379 Acquisition-related intangibles, net293 400 Deferred income taxes, net2,420 2,380 Other assets417 436 TOTAL ASSETS$12,368 $13,420 LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable, accrued, and other current liabilities$1,359 $1,276 Deferred net revenue (online-enabled games)1,700 1,814 Senior notes, current, net400 - Total current liabilities3,459 3,090 Senior notes, net1,484 1,882 Income tax obligations594 497 Other liabilities445 438 Total liabilities5,982 5,907 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; 252 and 266 shares issued and outstanding, respectively3 3 Additional paid-in capital - - Retained earnings6,470 7,582 Accumulated other comprehensive income (loss)(87)(72)Total stockholders' equity6,386 7,513 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$12,368 $13,420 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; 252 and 266 shares issued and outstanding, respectively See accompanying Notes to Consolidated Financial Statements. 34 34 34 Table of Contents Table of Contents --- ## Modified: Comparison of Fiscal Year 2024 to Fiscal Year 2023 **Key changes:** - Reworded sentence: "For the comparison of fiscal year 2024 to fiscal year 2023, 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, 2024, filed with the SEC on May 22, 2024 under the subheading "Comparison of Fiscal Year 2024 to Fiscal Year 2023." 28 28 28 Table of Contents Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20252024Increase/(Decrease)Cash and cash equivalents$2,136 $2,900 $(764)Short-term investments112 362 (250)Total$2,248 $3,262 $(1,014)Percentage of total assets18 %24 % Year Ended March 31,(In millions)20252024ChangeNet cash provided by operating activities$2,079 $2,315 $(236)Net cash provided by (used in) investing activities37 (207)244 Net cash used in financing activities(2,863)(1,624)(1,239)Effect of foreign exchange on cash and cash equivalents(17)(8)(9)Net increase (decrease) in cash and cash equivalents$(764)$476 $(1,240) For the comparison of fiscal year 2024 to fiscal year 2023, 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, 2024, filed with the SEC on May 22, 2024 under the subheading "Liquidity and Capital Resources."" **Prior (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 **Current (2025):** For the comparison of fiscal year 2024 to fiscal year 2023, 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, 2024, filed with the SEC on May 22, 2024 under the subheading "Comparison of Fiscal Year 2024 to Fiscal Year 2023." 28 28 28 Table of Contents Table of Contents LIQUIDITY AND CAPITAL RESOURCES As of March 31,(In millions)20252024Increase/(Decrease)Cash and cash equivalents$2,136 $2,900 $(764)Short-term investments112 362 (250)Total$2,248 $3,262 $(1,014)Percentage of total assets18 %24 % Year Ended March 31,(In millions)20252024ChangeNet cash provided by operating activities$2,079 $2,315 $(236)Net cash provided by (used in) investing activities37 (207)244 Net cash used in financing activities(2,863)(1,624)(1,239)Effect of foreign exchange on cash and cash equivalents(17)(8)(9)Net increase (decrease) in cash and cash equivalents$(764)$476 $(1,240) For the comparison of fiscal year 2024 to fiscal year 2023, 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, 2024, filed with the SEC on May 22, 2024 under the subheading "Liquidity and Capital Resources." --- ## Modified: Accounts Payable, Accrued, and Other Current Liabilities **Key changes:** - Reworded sentence: "Accounts payable, accrued, and other current liabilities as of March 31, 2025 and 2024 consisted of (in millions): As of March 31, 20252024Accounts payable$105 $110 Accrued compensation and benefits486 476 Accrued royalties226 189 Deferred net revenue (other)94 59 Operating lease liabilities (See Note 13)67 66 Other accrued expenses297 286 Sales returns and price protection reserves84 90 Accounts payable, accrued, and other current liabilities$1,359 $1,276 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 (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. **Current (2025):** Accounts payable, accrued, and other current liabilities as of March 31, 2025 and 2024 consisted of (in millions): As of March 31, 20252024Accounts payable$105 $110 Accrued compensation and benefits486 476 Accrued royalties226 189 Deferred net revenue (other)94 59 Operating lease liabilities (See Note 13)67 66 Other accrued expenses297 286 Sales returns and price protection reserves84 90 Accounts payable, accrued, and other current liabilities$1,359 $1,276 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: As of March 31, 2024 **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, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362" **Prior (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 **Current (2025):** The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 AmortizedCostFairValueAmortizedCostFairValueShort-term investmentsDue within 1 year$46 $46 $231 $231 Due 1 year through 5 years63 63 126 126 Due after 5 years3 3 5 5 Short-term investments$112 $112 $362 $362 --- ## Modified: Fiscal 2024 Restructuring **Key changes:** - Reworded sentence: "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." **Prior (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. **Current (2025):** 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 were substantially completed by March 31, 2025. Since the inception of the 2024 Restructuring Plan through March 31, 2025, we have incurred net charges of $123 million. We do not expect to incur any additional restructuring charges under this plan. Restructuring activities as of the fiscal year ended March 31, 2025 was as follows (in millions): Licensor Commitments (a)Workforce (a)Office Space ReductionsTotalCharges to operations$30 $29 $2 $61 Charges settled in cash(17)(5) - (22)Impairment and other charges(13) - (2)(15)Liability as of March 31, 2024$ - $24 $ - $24 Charges to operations5 - 57 62 Charges settled in cash - (24) - (24)Impairment and other charges(5) - (57)(62)Liability as of March 31, 2025$ - $ - $ - $ - (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations. --- ## Modified: March 31, 2025 **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 (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 **Current (2025):** Deferred compensation plan assets (a) Deferred compensation plan liabilities (a) 48 48 48 Table of Contents Table of Contents Fair Value Measurements at Reporting Date Using As ofMarch 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 deposit 13 - 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 $ - Accounts payable, accrued, and other current liabilities and other liabilitiesDeferred compensation plan liabilities (a)31 31 - - Other liabilitiesTotal liabilities at fair value$51 $31 $20 $ - 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. 49 49 49 Table of Contents Table of Contents --- ## Modified: CONSOLIDATED STATEMENTS OF OPERATIONS **Key changes:** - Reworded sentence: "Year Ended March 31,(In millions, except per share data)202520242023Net revenue$7,463 $7,562 $7,426 Cost of revenue1,543 1,710 1,792 Gross profit5,920 5,852 5,634 Operating expenses:Research and development2,569 2,420 2,328 Marketing and sales962 1,019 978 General and administrative745 691 727 Amortization and impairment of intangibles67 142 158 Restructuring (See Note 8)57 62 111 Total operating expenses4,400 4,334 4,302 Operating income1,520 1,518 1,332 Interest and other income (expense), net85 71 (6)Income before provision for income taxes1,605 1,589 1,326 Provision for income taxes484 316 524 Net income$1,121 $1,273 $802 Earnings per share:Basic$4.28 $4.71 $2.90 Diluted$4.25 $4.68 $2.88 Number of shares used in computation:Basic262 270 277 Diluted264 272 278 Restructuring (See Note 8) See accompanying Notes to Consolidated Financial Statements." **Prior (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 **Current (2025):** Year Ended March 31,(In millions, except per share data)202520242023Net revenue$7,463 $7,562 $7,426 Cost of revenue1,543 1,710 1,792 Gross profit5,920 5,852 5,634 Operating expenses:Research and development2,569 2,420 2,328 Marketing and sales962 1,019 978 General and administrative745 691 727 Amortization and impairment of intangibles67 142 158 Restructuring (See Note 8)57 62 111 Total operating expenses4,400 4,334 4,302 Operating income1,520 1,518 1,332 Interest and other income (expense), net85 71 (6)Income before provision for income taxes1,605 1,589 1,326 Provision for income taxes484 316 524 Net income$1,121 $1,273 $802 Earnings per share:Basic$4.28 $4.71 $2.90 Diluted$4.25 $4.68 $2.88 Number of shares used in computation:Basic262 270 277 Diluted264 272 278 Restructuring (See Note 8) See accompanying Notes to Consolidated Financial Statements. 35 35 35 Table of Contents Table of Contents --- ## Modified: Net Revenue **Key changes:** - Reworded sentence: "Net revenue for fiscal year 2025 was $7,463 million, primarily driven by sales related to our global football and American football franchises, Apex Legends, and The Sims 4." **Prior (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. **Current (2025):** 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 and content. --- ## Modified: Short-Term Investments **Key changes:** - Reworded sentence: "Short-term investments consisted of the following as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$46 $ - $ - $46 $130 $ - $ - $130 U.S." **Prior (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 **Current (2025):** Short-term investments consisted of the following as of March 31, 2025 and 2024 (in millions): As of March 31, 2025As of March 31, 2024 Cost orAmortizedCostGross UnrealizedFairValueCost orAmortizedCostGross UnrealizedFairValue GainsLossesGainsLossesCorporate bonds$46 $ - $ - $46 $130 $ - $ - $130 U.S. Treasury securities12 - - 12 95 - - 95 U.S. agency securities - - - - 9 - - 9 Commercial paper - - - - 66 - - 66 Foreign government securities4 - - 4 8 - - 8 Asset-backed securities50 - - 50 41 - - 41 Certificates of deposit - - - - 13 - - 13 Short-term investments$112 $ - $ - $112 $362 $ - $ - $362 --- ## Modified: March 31,2025% of NetRevenueMarch 31,2024% of NetRevenue% ChangeChange as a % of Net Revenue$1,543 21 %$1,710 23 %(10)%(2)% **Key changes:** - Reworded sentence: "Cost of revenue decreased by $167 million, and by 2 percent as a percentage of total net revenue, during fiscal year 2025 as compared to fiscal year 2024." **Prior (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. **Current (2025):** Cost of revenue decreased by $167 million, and by 2 percent as a percentage of total net revenue, during fiscal year 2025 as compared to fiscal year 2024. The decrease was primarily due to a year-over-year decrease in product related and royalty costs associated with our EA SPORTS FC franchise, a decrease in platform and online hosting fees, and a decrease in acquisition-related intangible asset amortization and impairment, partially offset by a net increase in royalty costs due to the mix of sales from other royalty bearing titles. --- ## Modified: Issuer Purchases of Equity Securities **Key changes:** - Removed sentence: "In August 2022, our Board of Directors authorized a program to repurchase up to $2.6 billion of our common stock." - Removed 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." - Removed sentence: "This program was terminated on May 8, 2024 and was superseded and replaced by a new stock repurchase program approved in May 2024." - Reworded sentence: "This program expires on May 9, 2027." - Reworded sentence: "In February 2025, we entered into an accelerated share repurchase agreement (the "ASR Agreement") with Goldman Sachs & Co." **Prior (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 **Current (2025):** 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 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. In February 2025, we entered into an accelerated share repurchase agreement (the "ASR Agreement") with Goldman Sachs & Co. LLC., under which we purchased an aggregate of $1.0 billion of our common stock as part of the May 2024 repurchase program. Final settlement of the ASR Agreement occurred on April 25, 2025. Refer to Note 15 to our Consolidated Financial Statements for additional details on the ASR Agreement. The following table summarizes the number of shares repurchased in the fourth quarter of the fiscal year ended March 31, 2025: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 29, 2024 - January 25, 2025723,537 $142.12 723,537 $3,925 January 26, 2025 - February 22, 2025Accelerated share repurchases(1)6,131,678 $ - 6,131,678 $2,925 Open market share repurchases930,914 $125.38 930,914 $2,808 February 23, 2025 - March 29, 2025Accelerated share repurchases(1)836,443 $ - 836,443 $2,808 Open market share repurchases1,130,049 $137.74 1,130,049 $2,652 9,752,621 9,752,621 (1)Subsequent to March 31, 2025, we settled the ASR Agreement, which resulted in total repurchases of 7.4 million shares of our common stock at an average price of $135.05. Accelerated share repurchases(1) Accelerated share repurchases(1) (1)Subsequent to March 31, 2025, we settled the ASR Agreement, which resulted in total repurchases of 7.4 million shares of our common stock at an average price of $135.05. 18 18 18 Table of Contents Table of Contents --- ## Modified: March 31,2025% of NetRevenueMarch 31,2024% of NetRevenue$ Change% Change$2,569 34 %$2,420 32 %$149 6 % **Key changes:** - Reworded sentence: "Research and development expenses increased by $149 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024." **Prior (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. **Current (2025):** Research and development expenses increased by $149 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024. This increase was primarily due to a $67 million increase in personnel-related costs as part of our continued investment in our studios, a $39 million increase in stock-based compensation, and an $11 million increase in contracted services. --- ## Modified: March 31,2025% of NetRevenueMarch 31,2024% of NetRevenue$ Change% Change$962 13 %$1,019 13 %$(57)(6)% **Key changes:** - Reworded sentence: "Marketing and sales expenses decreased by $57 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024." **Prior (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. **Current (2025):** Marketing and sales expenses decreased by $57 million, or 6 percent, in fiscal year 2025, as compared to fiscal year 2024. This decrease was primarily due to a decrease in advertising and promotional spending related to Star Wars Jedi: Survivor, and Apex Legends, partially offset by an increase in advertising and promotional spending related to the release of Dragon Age: The Veilguard in fiscal year 2025. --- ## Modified: Workforce (a) **Key changes:** - Reworded sentence: "Of the $59 million in charges associated with office space reductions to date under the 2024 Restructuring Plan, $52 million is recorded within Restructuring during fiscal year 2025, as it is related to impairments of right-of-use assets and associated property, plant, and equipment for certain operating leases, and $7 million is recorded within General and administrative expenses in the Consolidated Statement of Operations." **Prior (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 **Current (2025):** Charges to operations (a) Charges are recorded within Restructuring in the Consolidated Statement of Operations. Of the $59 million in charges associated with office space reductions to date under the 2024 Restructuring Plan, $52 million is recorded within Restructuring during fiscal year 2025, as it is related to impairments of right-of-use assets and associated property, plant, and equipment for certain operating leases, and $7 million is recorded within General and administrative expenses in the Consolidated Statement of Operations. 55 55 55 Table of Contents Table of Contents --- ## Modified: March 31, 2024 **Key changes:** - Reworded sentence: "Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2025As of March 31, 2024 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetDeveloped and core technology$933 $(790)$143 $1,025 $(821)$204 Trade names and trademarks501 (351)150 502 (306)196 Registered user base and other intangibles56 (56) - 56 (56) - Total$1,490 $(1,197)$293 $1,583 $(1,183)$400" **Prior (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 **Current (2025):** Acquisition-related intangibles consisted of the following (in millions): As of March 31, 2025As of March 31, 2024 GrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetGrossCarryingAmountAccumulatedAmortizationAcquisition-RelatedIntangibles, NetDeveloped and core technology$933 $(790)$143 $1,025 $(821)$204 Trade names and trademarks501 (351)150 502 (306)196 Registered user base and other intangibles56 (56) - 56 (56) - Total$1,490 $(1,197)$293 $1,583 $(1,183)$400 --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*