Electronic Arts 2001 Annual Report Download - page 52

50
2001 AR
(11) 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 Class A Common Stock on the date of commencement of the offering or on
the last day of the six-month purchase period. The program commenced in September 1991. In fiscal 2001,
350,164 shares were purchased by the Company and distributed to employees at prices ranging from $29.14 to
$42.50. In fiscal 2000, 491,046 shares were purchased by the Company and distributed to employees at prices
ranging from $16.21 to $29.14. In fiscal 1999, 483,028 shares were purchased by the Company and distributed to
employees at prices ranging from $13.10 to $18.30. The weighted average fair value of the fiscal 2001, fiscal 2000
and fiscal 1999 awards was $18.31, $10.00 and $9.14, respectively. Under the Employee Stock Purchase Plan
62,000 shares were distributed from reissued treasury stock in fiscal 1999. No shares were distributed from reis-
sued treasury stock in fiscal 2001 or fiscal 2000. At March 31, 2001, the Company had 1,383,678 shares of Class A
Common Stock reserved for future issuance under the Plan.
(b) Stock Option Plans The Company’s 2000 Class A Equity Incentive Plan, 1991 Stock Option Plan, 1993 Stock
Option Plan, 1995 Stock Option Plan, and Directors’ Plan (“Option Plans”) provide options for employees, officers
and directors to purchase the Company’s Class A common stock. 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.
Under the Company’s stock option plans, 246,000 and 138,000 shares were reissued from treasury stock in fis-
cal 2000 and 1999, respectively. No shares were distributed from reissued treasury stock in fiscal 2001.
Together with the Tracking Stock Proposal, the stockholders approved the Electronic Arts Inc. 2000 Class B
Equity Incentive Plan. The Class B equity plan allows the award of stock options or restricted stock for up to an
aggregate of 6,000,000 shares of Class B common stock. The Class B Plan includes a provision for automatic option
grants to the Company’s outside directors. As of March 31, 2001 there were 250,000 restricted shares issued under
the Class B equity plan.
In the fiscal year 2001, the Board of Directors approved the Key Partner Class B Equity Incentive Program
which allows for the issuance of warrants to key business partners to purchase up to 750,000 shares of Class B
common stock.
The options generally expire ten years from the date of grant and are generally exercisable in monthly incre-
ments over 50 months. Class B common stock grants will generally vest over 50 months with 2% vesting per month.
The Company has adopted the disclosure-only provisions of Statement of Financial Accounting Standards No.
123, “Accounting for Stock Based Compensation” (“SFAS 123”). Accordingly, no compensation expense has been rec-
ognized for options granted under the Company’s employee-based stock option plans. Had compensation expense
been determined based on the fair value at the grant dates for awards under those plans in accordance with the
provisions of SFAS 123, the Company’s pro forma net income (loss) and net income (loss) per share for fiscal 2001,
2000 and 1999 would have been: