EA Initiates Restructuring Plan; Anticipates Incurring $40M Cost

EA

management initiated a plan of restructuring to align the Company's cost structure with its ongoing digital transformation. Under the Plan, EA anticipates reducing its workforce and incurring other costs. EA expects the majority of these actions to be completed by September 30, 2012. In connection with the Plan, EA anticipates incurring approximately $40 million in total costs, of which approximately $31 million will result in future cash expenditures. All of these charges are expected to occur during the fiscal year ending March 31, 2013. These costs will consist of severance and other employee-related costs (approximately $23 million), license termination costs (approximately $11 million) and other costs (approximately $6 million).