Acquisition, net of cash acquired

Table of ContentsELECTRONIC ARTS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
| (Unaudited) | Three Months Ended June 30, |
| (In millions) | 2022 |  | 2021 |
| OPERATING ACTIVITIES |  |  |  |
| Net income | $ | 311  |  |  | $ | 204  |  |
| Adjustments to reconcile net income to net cash used in operating activities: |  |  |  |
| Depreciation, amortization, accretion and impairment | 114  |  |  | 105  |  |
| Stock-based compensation | 125  |  |  | 125  |  |
| Change in assets and liabilities: |  |  |  |
| Receivables, net | 70  |  |  | 12  |  |
| Other assets | (15) |  |  | (74) |  |
| Accounts payable | (16) |  |  | (19) |  |
| Accrued and other liabilities | (105) |  |  | (302) |  |
| Deferred income taxes, net | (86) |  |  | 28  |  |
| Deferred net revenue (online-enabled games) | (476) |  |  | (222) |  |
| Net cash used in operating activities | (78) |  |  | (143) |  |
| INVESTING ACTIVITIES |  |  |  |
| Capital expenditures | (59) |  |  | (44) |  |
| Proceeds from maturities and sales of short-term investments | 87  |  |  | 507  |  |
| Purchase of short-term investments | (93) |  |  | (285) |  |
| Acquisitions, net of cash acquired | —  |  |  | (1,989) |  |
| Net cash used in investing activities | (65) |  |  | (1,811) |  |
| FINANCING ACTIVITIES |  |  |  |
| Proceeds from issuance of common stock | 1  |  |  | —  |  |
| Cash dividends paid | (53) |  |  | (49) |  |
| Cash paid to taxing authorities for shares withheld from employees | (104) |  |  | (105) |  |
| Repurchase and retirement of common stock | (320) |  |  | (325) |  |
| Net cash used in financing activities | (476) |  |  | (479) |  |
| Effect of foreign exchange on cash and cash equivalents | (31) |  |  | 11  |  |
| Increase (decrease) in cash and cash equivalents | (650) |  |  | (2,422) |  |
| Beginning cash and cash equivalents | 2,732  |  |  | 5,260  |  |
| Ending cash and cash equivalents | $ | 2,082  |  |  | $ | 2,838  |  |
| Supplemental cash flow information: |  |  |  |
| Cash paid during the period for income taxes, net | $ | 36  |  |  | $ | 134  |  |
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See accompanying Notes to Condensed Consolidated Financial Statements (unaudited).7  

