01—Abstract
Summary
Summary of the 10-K/A filed October 3, 2014. Cited figures are marked; the original filing is the authoritative source.
This filing is Amendment No. 1 (Form 10-K/A) to Electronic Arts' annual report for the fiscal year ended March 31, 2014, which was originally filed May 21, 2014.
It is an exhibit-only amendment and contains no financial statements, revenue, earnings, or other operating results. The company states that no revisions were made to its financial statements and that no other disclosures in the original Form 10-K were changed. Investors seeking financial performance data should refer to the original 10-K.
The amendment was prompted by SEC staff comments on EA's request for confidential treatment of portions of Exhibit 10.27, the Durango Publisher License Agreement dated June 29, 2012 with Microsoft Licensing, GP and Microsoft Corporation. EA re-filed that exhibit with the revised redactions, and it also filed new Rule 13a-14 certifications from its principal executive and financial officers (Exhibits 31.03 and 31.04). No other exhibits were updated.
The exhibit index is useful for understanding EA's material contractual relationships. It lists platform publisher agreements with Sony (PlayStation 3) and Microsoft (Xbox), a $-denominated JPMorgan-led credit agreement dated August 30, 2012, and 0.75%a Convertible Senior Notes due 2016 issued in July 2011 with related call option and warrant agreements. It also includes executive compensation plans, the March 2013 separation agreement with former CEO John Riccitiello, and facility leases for its Tiburon studio.
02—Key points
Key Highlights
- Exhibit-only amendment (Form 10-K/A) to the 10-K for the fiscal year ended March 31, 2014; no financial statements were revised.
- Filed in response to SEC staff comments on confidential treatment requests for portions of Exhibit 10.27, the Durango (Xbox) Publisher License Agreement with Microsoft dated June 29, 2012.
- New Rule 13a-14 certifications from the principal executive and financial officers (Exhibits 31.03 and 31.04) were filed with this amendment.
- Key platform agreements disclosed in the exhibit index include the Sony PlayStation 3 publisher agreements and the Microsoft Xbox publisher license agreements, indicating dependence on console platform holders.
- Capital structure exhibits include 0.75% Convertible Senior Notes due 2016 (indenture dated July 20, 2011) and related call option and warrant agreements.
- Liquidity arrangements include a credit agreement dated August 30, 2012 with JPMorgan Chase Bank, N.A. as administrative agent.
- Executive compensation and governance exhibits include the EA Bonus Plan, performance-based RSU agreements, an employment agreement with Patrick Söderlund, and the March 25, 2013 separation agreement with former CEO John Riccitiello.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2014, Electronic Arts kept $0.00.
- Revenue$3.58B100.0%
- Cost of revenue−$1.35B37.7%
- Gross profit$2.23B62.3%
- Operating costs−$2.19B61.4%
- Operating income$33.0M0.9%
- Interest, other & tax−$25.0M0.7%
- Net income$8.0M0.2%
Where FY2014 revenue went
$3.58B- Operating costs: $2.19B, 61% of revenue
- Cost of revenue: $1.35B, 38% of revenue
- Net income: $8.0M, 0.2% of revenue
- Interest, other & tax: $25.0M, 0.7% of revenue
Kept 0.2% as net incomeNet income $8.0M · 0.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2014filed October 3, 2014Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $3.58B$3.80B | −5.8% |
| Cost of Revenue | $1.35B$1.39B | −3.0% |
| Gross Profit | $2.23B$2.41B | −7.5% |
| Operating Expenses | $2.19B$2.29B | −4.1% |
| Operating Income | $33.00M$121.00M | −72.7% |
| Interest Expense | $30.00M$29.00M | +3.4% |
| Net Income | $8.00M$98.00M | −91.8% |
| EPS (Basic) | $0.03$0.32 | −90.6% |
| EPS (Diluted) | $0.03$0.31 | −90.3% |
| Shares Outstanding (Basic) | 308.00M310.00M | −0.6% |
| Shares Outstanding (Diluted) | 316.00M313.00M | +1.0% |
05—Questions
Frequently Asked Questions
Does this amendment change EA's financial results?
No. The company states that no revisions are being made to its financial statements. The amendment only re-files Exhibit 10.27 with revised confidential-treatment redactions and adds updated officer certifications. It does not restate revenue, earnings, cash flow, or balance sheet figures.
Why was Exhibit 10.27 re-filed?
The SEC staff reviewed EA's request for confidential treatment of certain portions of the Durango Publisher License Agreement with Microsoft and issued comments. EA re-filed the exhibit to address those comments. The amendment does not otherwise update any exhibits.
Where can investors find EA's financial performance for fiscal 2014?
The complete financial statements and results for the fiscal year ended March 31, 2014 are in the original Form 10-K filed May 21, 2014. The XBRL financial data is attached to that original filing as Exhibit 101.
What contracts does this exhibit index reveal that matter to investors?
The index shows EA's publisher license agreements with Sony and Microsoft for their console platforms, which are central to its distribution. It also lists the 2011 convertible notes and their related option and warrant agreements, the 2012 JPMorgan credit agreement, and a 2014 lease amendment for its Tiburon studio facility. The filing does not disclose the economic terms of these agreements, and the confidential portions remain redacted.
06—Continue