Electronic Arts 2009 Annual Report Download - page 184

The following table summarizes our performance-based restricted stock unit activity for the fiscal year ended
March 31, 2009:
Performance-
Based Restricted
Stock Units
(in thousands)
Weighted-
Average Grant
Date Fair Value
Balance as of March 31, 2008 ........................................ 691 $54.51
Granted ........................................................ 2,614 46.05
Vested ......................................................... (54) 54.51
Forfeited or cancelled ............................................. (243) 49.18
Balance as of March 31, 2009 ........................................ 3,008 47.59
The weighted-average grant date fair value of performance-based restricted stock units is based on the quoted
market value of our common stock on the date of grant. The weighted-average fair value of performance-based
restricted stock units granted during fiscal years 2009 and 2008 was $46.05 and $54.51, respectively. The total
grant date fair value of performance-based restricted stock units that vested during fiscal year 2009 was $3
million. No performance-based restricted stock units were granted prior to fiscal year 2008 and no such units
vested prior to fiscal year 2009.
Employee Stock Purchase Plan
Pursuant to our ESPP, eligible employees may authorize payroll deductions of between 2 and 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 offering or on the last day of each six-month purchase period.
At our Annual Meeting of Stockholders, held on July 31, 2008, our stockholders approved amendments to the
ESPP to (a) increase the number of shares authorized under the ESPP by 1.5 million shares and (b) removed the
ten-year term from the ESPP. As of March 31, 2009, we had 4 million shares of common stock reserved for
future issuance under the ESPP.
During fiscal year 2009, we issued approximately 1.3 million shares under the ESPP with exercise prices for
purchase rights ranging from $13.71 to $40.20. During fiscal years 2009, 2008 and 2007 the estimated weighted-
average fair value of purchase rights was $13.04, $14.57 and $16.51, respectively.
We issue new common stock out of the ESPP’s pool of authorized shares. The fair value above was estimated on
the date of grant using the Black-Scholes option-pricing model assumptions described in this note under the
headings “Adoption of SFAS No. 123(R).”
Deferred Compensation Plan
We have a Deferred Compensation Plan (“DCP”) for the benefit of a select group of management or highly
compensated Employees and Directors, which is unfunded and intended to be a plan that is not qualified within
the meaning section 401(a) of the Internal Revenue Code. The DCP permits the deferral of the annual base salary
and/or Director fees up to a maximum amount. The deferrals are held in a separate trust, which has been
established by us to administer the DCP. The trust is a grantor trust and the specific terms of the trust agreement
provide that the assets of the trust are available to satisfy the claims of general creditors in the event of our
insolvency. In accordance with the provisions of EITF No. 97-14, Accounting for Deferred Compensation
Arrangements Where Amounts Earned Are Held in a Rabbi Trust and Invested, the assets held by the trust are
classified as trading securities and reflected at their fair value on our Consolidated Balance Sheets. The assets
and liabilities of the DCP are presented in other current assets and other liabilities in our Consolidated Balance
Sheets, respectively, with changes in the fair market value recognized in interest and other income, net, on our
Consolidated Statements of Operations. Changes in the deferred compensation liability are recognized as
compensation expense. These assets were valued at $9 million and $17 million as of March 31, 2009 and 2008,
respectively.
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