Electronic Arts 2005 Annual Report Download - page 144

(c) Share Repurchase Program
On October 18, 2004, our Board of Directors authorized a program to repurchase up to an aggregate of
$750 million of shares of our common stock. Pursuant to the authorization, we may repurchase shares of our
common stock from time to time in the open market or through privately negotiated transactions over the
course of a twelve-month period. During Ñscal 2005, we repurchased and retired 805,500 shares of our
common stock for approximately $41 million.
(12) EMPLOYEE BENEFIT AND STOCK-BASED COMPENSATION PLANS
(a) Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan (""ESPP'') program, which commenced in September 1991,
whereby eligible employees may authorize payroll deductions of up to 10 percent of their compensation to
purchase shares at 85 percent of the lower of the fair market value of the common stock on the date of
commencement of the oÅering or on the last day of the six-month purchase period. A new ESPP program, the
2000 Employee Stock Purchase Plan, was approved by the Board of Directors in May 2000 and commenced in
August 2000. In addition, we have a stock purchase plan which was adopted without stockholder approval, the
International Employee Stock Purchase Plan, which was terminated by the Board of Directors in connection
with the amendment of the stockholder-approved Plan discussed below as of February 2003.
The International Employee Stock Purchase Plan was adopted by the Board of Directors in June 1996 and
amended in October 1998, February 1999 and February 2002 and is, in all material respects, identical to the
2000 Employee Stock Purchase Plan approved by the stockholders for U.S. employees. In February 2003, the
Board of Directors approved an amendment to the 2000 Employee Stock Purchase Plan to segregate
provisions of the Plan for purchases intended to qualify under Section 423 of the Internal Revenue Code of
1986, as amended (the ""Code'') for participants residing in the U.S., from those that are not intended to
qualify under Section 423 of the Code for participants residing outside of the U.S. Accordingly, we no longer
issue common stock under the International Employee Stock Purchase Plan.
At our Annual Meeting of Stockholders, held on July 29, 2004, our stockholders approved an amendment to
the 2000 Employee Stock Purchase Plan to increase the number of shares of common stock reserved for
issuance under the ESPP by 1.5 million.
Information related to stock issuances under these plans is as follows:
Year Ended March 31,
2005 2004 2003
Number of shares issued (in thousands) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 624 867 698
Range of exercise prices for purchase rights ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $38.14 to $22.44 to $22.44 to
$51.35 $38.14 $22.87
Estimated weighted-average fair value of purchase rights ÏÏÏÏÏÏÏÏ $13.96 $9.53 $9.78
The fair value above was estimated on the date of grant using the Black-Scholes option-pricing model
assumptions described in Note 1(o) of the Notes to Consolidated Financial Statements. As of March 31,
2005, we had approximately 1.4 million shares of common stock reserved for future issuance under the 2000
Employee Stock Purchase Plan.
(b) Stock Option Plans
Our 2000 Equity Incentive Plan (the ""Equity Plan'') allows us to grant options to purchase our common
stock, restricted stock and restricted stock units to our employees, oÇcers and directors. Pursuant to the
Equity Plan, incentive stock options may be granted to employees and oÇcers and non-qualiÑed options may
be granted to employees, oÇcers and directors, at not less than 100 percent of the fair market value on the
date of grant.
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