Electronic Arts 2006 Annual Report Download - page 172

Additional information regarding outstanding options to purchase our common stock as of March 31, 2006
is as follows:
(In thousands, except exercise price and remaining contractual life)
Options Outstanding Options Exercisable
Weighted-
Average Weighted- Weighted-
Range of. Remaining Average Average
Exercise Number Contractual Exercise Potential Number Exercise Potential
Prices of Shares Life Price Dilution of Shares Price Dilution
$0.53-$14.94 4,287 2.40 $11.09 1.4% 4,262 $11.15 1.4%
14.95-24.66 4,188 4.93 22.88 1.4% 4,178 22.88 1.4%
24.67-30.05 4,689 5.72 27.82 1.5% 4,329 27.82 1.4%
30.06-31.32 4,950 6.44 31.18 1.6% 3,654 31.23 1.2%
31.33-47.45 4,221 7.27 40.47 1.4% 2,371 39.82 0.8%
47.46-52.03 7,067 8.66 50.28 2.3% 2,141 49.06 0.7%
52.04-54.41 2,789 9.50 53.04 0.9% 268 52.65 0.1%
54.42-65.93 8,691 9.10 61.43 2.8% 1,275 62.70 0.4%
$0.53-$65.93 40,882 7.02 $40.02 13.4% 22,478 $29.88 7.4%
Potential dilution is computed by dividing the options in the related range of exercise prices by the shares
of common stock issued and outstanding as of March 31, 2006 (305 million shares). The weighted-average
estimated fair value of stock options granted during Ñscal years 2006, 2005 and 2004 was $15.19, $17.70
and $16.22, respectively. The fair value 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.
Our outstanding options have vested or will vest approximately in the following Ñscal years (in thousands):
2006 and
Prior 2007 2008 2009 2010 Total
Number of options ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 22,478 7,859 4,499 3,788 2,258 40,882
(c) Restricted Stock Units
For the Ñrst time in Ñscal 2006, we granted restricted stock units (""RSUs'') under our Equity Plan to
employees worldwide. An RSU grant is a right to receive a share of common stock at the end of a
speciÑed period of time, which is subject to forfeiture and transfer restrictions. Vesting for RSUs is based
on continued employment of the holder. Upon vesting, the equivalent number of common shares are
typically issued net of tax withholdings. If the vesting conditions are not met, unvested RSUs will be
forfeited. Generally, our RSU grants vest according to one of the following vesting schedules:
‚ 100 percent after one year;
‚ Three year vesting with 25 percent cliÅ vesting at the end of each of the Ñrst and second years, and
50 percent cliÅ vesting at the end of the third year; or
‚ Four year vesting with 25 percent cliÅ vesting at the end of each year.
100