Electronic Arts 2007 Annual Report Download - page 170

Summary of Plans and Plan Activity
Stock Option Plans
Our 2000 Equity Incentive Plan (the “Equity Plan”) allows us to grant options to purchase our common stock,
restricted stock, restricted stock units and stock appreciation rights to our employees, officers and directors.
Pursuant to the Equity Plan, incentive stock options may be granted to employees and officers and non-
qualified options may be granted to employees, officers and directors, at not less than 100 percent of the fair
market value on the date of grant.
We also have options outstanding that were granted under (1) the Criterion Software Limited Approved Share
Option Scheme (the “Criterion Plan”), which we assumed in connection with our acquisition of Criterion, and
(2) the JAMDAT Mobile Inc. Amended and Restated 2000 Stock Incentive Plan and the JAMDAT Mobile Inc.
2004 Equity Incentive Plan (collectively, the “JAMDAT Plans”), which we assumed in connection with our
acquisition of JAMDAT.
Options granted under the Equity Plan generally expire ten years from the date of grant and are generally
exercisable as to 24 percent of the shares after 12 months, and then ratably over the following 38 months. All
options granted under the Criterion Plan were exercisable as of March 31, 2005 and expire in January 2012.
Certain assumed options granted under the JAMDAT Plans have acceleration rights upon the occurrence of
various triggering events. Otherwise, the terms of the JAMDAT Plans are similar to our Equity Plan.
The following table summarizes our stock option activity for the fiscal year ended March 31, 2007:
Options
(in thousands)
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding as of March 31, 2006 ............ 40,882 $40.02
Activity for the fiscal year ended March 31, 2007:
Granted .............................. 4,373 51.11
Exercised............................. (4,881) 28.14
Forfeited, cancelled or expired ............. (2,731) 53.20
Exchange Program (cancelled) ............. (1,779) 64.92
Outstanding as of March 31, 2007 ............ 35,864 $40.75 6.2 $422
Additional stock option-related information as of March 31, 2007:
Options
(in thousands)
Weighted-
Average
Exercise Price
Weighted-
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic Value
(in millions)
Vested and expected to vest ............... 33,463 $39.82 6.0 $421
Exercisable ........................... 23,479 $33.99 5.1 $411
A total of 15 million shares were available for grant under our Equity Plan as of March 31, 2007, of which no
more than 13 million shares were eligible for grant in the form of restricted stock or restricted stock units.
The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of
March 31, 2007 which would have been received by the option holders had all option holders exercised their
options as of that date. We issue new common stock from our authorized shares upon the exercise of stock
options.
The weighted-average grant-date fair value of stock options granted during fiscal years 2007, 2006 and 2005
was $17.75, $15.19 and $17.70, respectively. The total intrinsic value of options exercised during fiscal years
2007, 2006 and 2005 was $120 million, $199 million and $307 million, respectively. The total fair value
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