ELECTRONIC ARTS INC. | 2013 | FY | 3


(6) GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET
The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2013 are as follows (in millions):
 
As of
March 31, 2012
 
Activity
 
Effects of Foreign Currency Translation
 
As of
March 31, 2013
Goodwill
$
2,086

 
$
3

 
$

 
$
2,089

Accumulated impairment
(368
)
 

 

 
(368
)
Total
$
1,718

 
$
3

 
$

 
$
1,721


The changes in the carrying amount of goodwill for the fiscal year ended March 31, 2012 are as follows (in millions):
 
As of
March 31, 2011
 
Activity
 
Effects of Foreign Currency Translation
 
As of
March 31, 2012
Goodwill
$
1,478

 
$
610

 
$
(2
)
 
$
2,086

Accumulated impairment
(368
)
 

 

 
(368
)
Total
$
1,110

 
$
610

 
$
(2
)
 
$
1,718


Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. The factors that contributed to the recognition of goodwill included securing buyer-specific synergies that increase revenue and profits and are not otherwise available to a marketplace participant, acquiring a talented workforce, and cost saving opportunities. Goodwill is not amortized, but rather subject to at least an annual assessment for impairment by applying a fair value-based test. Our goodwill is fully attributed to the EA Labels segment.
Acquisition-related intangibles, consisted of the following (in millions): 
 
As of March 31, 2013
 
As of March 31, 2012
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Acquisition-
Related
Intangibles, Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Acquisition-
Related
Intangibles, Net
Developed and core technology
$
527

 
$
(324
)
 
$
203

 
$
518

 
$
(229
)
 
$
289

Trade names and trademarks
130

 
(99
)
 
31

 
131

 
(84
)
 
47

Registered user base and other intangibles
87

 
(84
)
 
3

 
90

 
(80
)
 
10

Carrier contracts and related
85

 
(73
)
 
12

 
85

 
(67
)
 
18

In-process research and development
4

 

 
4

 
5

 

 
5

Total
$
833

 
$
(580
)
 
$
253

 
$
829

 
$
(460
)
 
$
369


Amortization of intangibles and impairment charges recognized for our acquisition-related intangible assets for the fiscal years ended March 31, 2013, 2012 and 2011 are classified in the Consolidated Statement of Operations as follows (in millions): 
 
Year Ended March 31,
 
2013
 
2012
 
2011
Cost of product
$
55

 
$
35

 
$
9

Cost of service and other
38

 
17

 
3

Operating expenses
30

 
43

 
57

Total
$
123

 
$
95

 
$
69


Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, typically from 2 to 14 years. As of March 31, 2013 and 2012, the weighted-average remaining useful life for acquisition-related intangible assets was approximately 3.9 years and 5.7 years for each period, respectively.
As of March 31, 2013, future amortization of finite-lived intangibles that will be recorded in cost of revenue and operating expenses is estimated as follows (in millions): 
Fiscal Year Ending March 31,
 
2014
$
74

2015
66

2016
53

2017
32

2018
13

Thereafter
15

Total
$
253


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