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Sales - EA's Revenue. - View Post

Crashdown77 said:
Could someone explain GAAP vs. non-GAAP please? I'm terribly interested but woefully ignorant.

EA like most public companies are required to report their financial statements in accordance with GAAP (Generally accepted accounting principles).  Although the GAAP statements are the official numbers, it makes it difficult to really understand what is occuring in the individual business lines.  EA would prefer that you use the non-gaap numbers to determine how each individual platform is performing.  

EA removes the following items when it reports it's non-gaap numbers.

  • Acquired in-process technology
  • Amortization of intangibles
  • Certain abandoned acquisition-related costs
  • Change in deferred net revenue (packaged goods and digital content)
  • Goodwill impairment
  • Income tax adjustments
  • Losses (gains) on strategic investments
  • Loss on lease termination and facilities acquisition
  • Loss on licensed intellectual property commitment
  • Restructuring charges
  • Stock-based compensation


Thanks for the input, Jeff.