Electronic Arts 2016 Annual Report Download - page 156
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Accrued and Other Current Liabilities
Accrued and other current liabilities as of March 31, 2016 and 2015 consisted of (in millions):
As of March 31,
2016 2015
Other accrued expenses ....................................................... $218 $298
Accrued compensation and benefits ............................................. 256 263
Accrued royalties ............................................................ 159 119
Deferred net revenue (other) ................................................... 77 114
Accrued and other current liabilities ........................................... $710 $794
Deferred net revenue (other) includes the deferral of subscription revenue, deferrals related to our Switzerland
distribution business, advertising revenue, licensing arrangements, and other revenue for which revenue
recognition criteria has not been met.
Deferred Net Revenue (Online-Enabled Games)
Deferred net revenue (online-enabled games) was $1,458 million and $1,283 million as of March 31, 2016 and
2015, respectively. Deferred net revenue (online-enabled games) generally includes the unrecognized revenue
from bundled sales of online-enabled games for which we do not have vendor-specific objective evidence of fair
value (“VSOE”) for the obligation to provide unspecified updates. We recognize revenue from the sale of online-
enabled games for which we do not have VSOE for the unspecified updates on a straight-line basis, generally
over an estimated nine-month period beginning in the month after shipment for physical games sold through
retail and an estimated six-month period for digitally-distributed games. However, we expense the cost of
revenue related to these transactions during the period in which the product is delivered (rather than on a deferred
basis).
(11) INCOME TAXES
The components of our income before provision for (benefit from) income taxes for the fiscal years ended
March 31, 2016, 2015 and 2014 are as follows (in millions):
Year Ended March 31,
2016 2015 2014
Domestic ................................................................ $133 $232 $(146)
Foreign .................................................................. 744 693 153
Income before provision for (benefit from) income taxes ......................... $877 $925 $ 7
70