Electronic Arts 2000 Annual Report Download - page 53

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(8) PREFERRED STOCK
At March 31, 2000 and 1999, the Company had 10,000,000 and 1,000,000 shares, respectively, of Preferred Stock authorized
but unissued. The rights, preferences, and restrictions of the Preferred Stock may be designated by the Board of Directors with-
out further action by the Company’s stockholders.
(9) TREASURY STOCK
In February 1999, the Board of Directors approved a plan to purchase up to two million shares of the Company’s common
stock. For the year ended March 31, 2000, the Company did not repurchase shares. For the year ended March 31, 1999, the
Company repurchased 222,500 shares for approximately $9,001,000 under this program. For the fiscal years ended March 31,
2000 and 1999, 122,563 and 99,937 shares were reissued under the Company’s Stock Plans, respectively.
When treasury shares were reissued, any excess of the average acquisition cost of the shares over the proceeds from reis-
suance was charged to retained earnings.
(10) STOCK PLANS
(A) EMPLOYEE STOCK PURCHASE PLAN The Company has an Employee Stock Purchase Plan program whereby eligible
employees may authorize payroll deductions of up to 10% of their compensation to purchase shares at 85% of the lower of the
fair market value of the Common Stock on the date of commencement of the offering or on the last day of the six-month pur-
chase period. The program commenced in September 1991. In fiscal 2000, 245,523 shares were purchased by the Company and
distributed to employees at prices ranging from $32.41 to $58.28. In fiscal 1999, 241,514 shares were purchased by the
Company and distributed to employees at prices ranging from $26.19 to $36.60. In fiscal 1998, 199,680 shares were purchased
by the Company and distributed to employees at prices ranging from $26.14 to $26.19 per share. The weighted average fair
value of the fiscal 2000, fiscal 1999 and fiscal 1998 awards was $20.00, $18.27 and $9.43, respectively. Under the Employee
Stock Purchase Plan 30,928 shares were distributed from reissued treasury stock in fiscal 1999. No shares were distributed
from reissued treasury stock in fiscal 2000 or fiscal 1998. At March 2000, the Company had 366,921 shares of its Common
Stock reserved for future issuance under the Plan.
Prior to the Maxis merger in July 1997, Maxis employees were eligible to participate in an employee stock purchase plan. In
fiscal 1998, Maxis purchased 7,684 shares under this plan which were distributed to participating employees. Shares were pur-
chased at prices ranging from $27.70 to $27.99 in fiscal 1998.
(B) STOCK OPTION PLANS The Company’s 1991 Stock Option Plan, 1993 Stock Option Plan, 1995 Stock Option Plan, and
Directors’ Plan (“Option Plans”) provide stock options for employees, officers and directors. Pursuant to these Option Plans,
the Board of Directors may grant non-qualified and incentive stock options to employees and officers and non-qualified
options to directors, at not less than the fair market value on the date of grant.
EA 2000 AR
51
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS