ELECTRONIC ARTS INC. PP&E Disclosure
| Buildings | 20 to 25 years | |||||||
| Computer equipment and software | 2 to 6 years | |||||||
| Equipment, furniture and fixtures, and other | 3 to 5 years | |||||||
| Leasehold improvements | Lesser of the lease term or the estimated useful lives of the improvements, ranging from 1 to 14 years | |||||||
| As of March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Computer, equipment and software | $ | 1,033 | $ | 965 | |||||||
| Buildings | 379 | 376 | |||||||||
| Leasehold improvements | 229 | 190 | |||||||||
| Equipment, furniture and fixtures, and other | 109 | 92 | |||||||||
| Land | 66 | 67 | |||||||||
| Construction in progress | 21 | 47 | |||||||||
| 1,837 | 1,737 | ||||||||||
| Less: accumulated depreciation | (1,251) | (1,159) | |||||||||
| Property and equipment, net | $ | 586 | $ | 578 | |||||||
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.