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Electronic Arts Inc.
Fiscal Year 2010
Proxy Statement and Annual Report

Table of contents

  • Page 1
    Electronic Arts Inc. Fiscal Year 2010 Proxy Statement and Annual Report

  • Page 2

  • Page 3
    Proxy Statement Notice of 2010 Annual Meeting and Proxy Statement

  • Page 4
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  • Page 5
    ... Board of Directors to hold office for a one-year term; • Approve amendments to our 2000 Equity Incentive Plan and 2000 Employee Stock Purchase Plan; and • Ratify the appointment of KPMG LLP as our independent registered public accounting firm for fiscal 2011. After the meeting, we will report...

  • Page 6
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  • Page 7
    ... to the 2000 Employee Stock Purchase Plan; Ratification of the appointment of KPMG LLP as our independent registered public accounting firm for fiscal 2011; and Any other matters that may properly come before the meeting. Proxy Statement 2. 3. 4. 5. OUR BOARD OF DIRECTORS RECOMMENDS YOU VOTE...

  • Page 8
    ... Page PROXY STATEMENT ...VOTING YOUR SHARES ...COMMONLY ASKED QUESTIONS AND ANSWERS ...PROPOSALS TO BE VOTED ON ...PROPOSAL 1 - ELECTION OF DIRECTORS ...Director Biographies ...Director Independence ...Board, Board Meetings, and Committees ...Director Compensation and Stock Ownership Guidelines...

  • Page 9
    ... registered public accounting firm. • "Annual Report" and "2010 Annual Report" mean our annual report for the fiscal year ended March 31, 2010. VOTING YOUR SHARES Your vote is very important. Whether or not you plan to attend the Annual Meeting, we encourage you to read this proxy statement and...

  • Page 10
    ... telephone, by requesting and returning a paper proxy card, or by submitting a ballot in person at the meeting. Who can vote at the Annual Meeting? Stockholders who owned common stock on June 14, 2010 may attend and vote at the Annual Meeting. If your shares are registered directly in your name with...

  • Page 11
    ... close at the meeting. You may do this by: • Sending a signed statement to the Company that the proxy is revoked (you may send such a statement to the Company's Secretary at our corporate headquarters address listed on the Notice of 2010 Annual Meeting of Stockholders); • Signing another proxy...

  • Page 12
    ... contacting our Investor Relations department at (650) 628-7352 or the SEC at (800) SEC-0330 for the location of its nearest public reference room. You can also get a copy on the Internet at http://investor.ea.com or through the SEC's electronic data system called EDGAR at www.sec.gov. Who will pay...

  • Page 13
    ... in "street name", you may contact your broker. If you are a stockholder of record, you may call our transfer agent, Wells Fargo Shareowner Services, at (800) 468-9716 (or (651) 450-4064 for international callers) or visit their web site at www.wellsfargo.com/shareownerservices. Proxy Statement 5

  • Page 14
    ... OF DIRECTORS At the Annual Meeting, stockholders will elect ten directors to hold office for a one-year term until the next Annual Meeting (or until their respective successors are elected and qualified). All nominees have consented to serve a one-year term, if elected. The Board has nominated...

  • Page 15
    ... served as a director of Cendant Corporation and Aramark Corporation during the last five years. Proxy Statement Mr. Coleman brings a wealth of public sector and international experience to the Board from his years of service on the Board of Directors for numerous large, public companies and his...

  • Page 16
    ... served as Vice Chairman of the Board of Directors of Wipro, Ltd., a provider of integrated business, technology and process solutions, and Chief Executive Officer of Wipro Technologies, Wipro's global information technology, product engineering, and business process services segments. From January...

  • Page 17
    ... Vice Chairman and Chief Client Officer, Executive Vice President and Director of Business Development, Group Managing Director, and in 1997, was named Chief Executive Officer of Y&R's New York office, becoming the first female CEO in the company's 75-year history. Ms. Srere also serves on the Board...

  • Page 18
    ... fee from the Company other than their director compensation. BOARD, BOARD MEETINGS, AND COMMITTEES The Board meets on a fixed schedule four times each year and also holds special meetings and acts by written consent. In fiscal 2010, the Board met seven times. At each regularly scheduled meeting...

  • Page 19
    ... of the CEO (via recommendation to the Board) and other executive officers and for overseeing the Company's equity incentive plans and other benefit plans. In addition, the Compensation Committee is responsible for reviewing and recommending to the Board compensation for non-employee directors. The...

  • Page 20
    ...so by writing to EA's Corporate Secretary at 209 Redwood Shores Parkway, Redwood City, CA 94065, Attn: Director Nominations. To be considered by the Nominating and Governance Committee in connection with EA's annual meeting of stockholders, recommendations must be submitted in writing to EA not less...

  • Page 21
    ... an independent director under applicable NASDAQ Stock Market Rules or an audit committee financial expert under the SEC rules; (8) the consent of the proposed candidate (a) to be named in the proxy statement relating to EA's annual meeting of stockholders, and (b) to serve as a director if elected...

  • Page 22
    ... with the Board of Directors EA stockholders may communicate with the Board as a whole, with a committee of the Board, or with an individual director by sending a letter to EA's Corporate Secretary at Electronic Arts Inc., 209 Redwood Shores Parkway, Redwood City, CA 94065, or by sending an email to...

  • Page 23
    ... fiscal 2010, annual option grants to purchase 8,400 shares of common stock were made under the Equity Plan to each of our non-employee directors (other than Ms. Laybourne and Mr. Huber) who were re-elected at the 2009 Annual Meeting of Stockholders. Ms. Laybourne, who was appointed to the Board as...

  • Page 24
    ... and Employee Benefit Plans," of the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2010. Each non-employee director standing for re-election at the 2009 Annual Meeting received a stock option to purchase 8,400 shares of EA common stock with...

  • Page 25
    ... equal to the fair market value of our common stock on the date of grant, which is the first trading day of each quarter of the Board year. The following table presents the number of shares our directors received in lieu of cash as a result of their elections during fiscal 2010 and the grant-date...

  • Page 26
    ... of their total compensation. In this way, we reinforce the link between our stockholders and our employees', officers' and directors' focus on personal responsibility, creativity and stockholder returns. Equity incentives such as stock options and restricted stock units also play an important role...

  • Page 27
    ... with respect to the equity component of the Board's compensation by issuing 10,000 restricted stock units to each of our non-employee directors who are re-elected for the 2011 Board year. Plan Benefits The amount and timing of awards granted under the Equity Plan are determined in the sole...

  • Page 28
    ... approved by the stockholders at the 2009 Annual Meeting of Stockholders. Based on EA's current share price, we expect the number of shares to be purchased by our employee participants to remain at approximately the same level as fiscal 2010. We believe that the Purchase Plan plays an important role...

  • Page 29
    ... Description of Fees Year Ended March 31, 2010 Year Ended March 31, 2009 Proxy Statement Audit Fees(1) - Worldwide audit fee ...- Accounting concurrence and regulatory matters ...Total audit fees ...Audit-Related Fees(2) - Benefit plan audits ...Total audit-related fees ...Tax Fees(3) - Compliance...

  • Page 30
    ... than audit and audit-related services are compatible with maintaining KPMG LLP's independence. Required Vote and Board of Directors' Recommendation Approval of this proposal requires the affirmative vote of a majority of the voting shares present at the meeting in person or by proxy and voting for...

  • Page 31
    ... the Board of Directors in its oversight responsibilities relating to the integrity of EA's accounting policies, internal controls and financial reporting. The Audit Committee reviews EA's quarterly and annual financial statements prior to public earnings releases and submission to the SEC; reviews...

  • Page 32
    ...audited consolidated statements of operations, stockholders' equity and comprehensive loss, and cash flows of the Company for each of the last three years ended March 31, 2010 be included for filing with the SEC in the Company's Annual Report on Form 10-K for the year ended March 31, 2010. The Audit...

  • Page 33
    ... May 20, 2010, there were 329,676,985 shares of our common stock outstanding. Except as otherwise indicated, the address for each of our directors and executive officers is c/o Electronic Arts Inc., 209 Redwood Shores Parkway, Redwood City, CA 94065. Stockholder Name Shares Owned(1) Right to Acquire...

  • Page 34
    ...our executive officers delivered very well against critical strategic and operational objectives in fiscal 2010, which included significant increases in digital revenues, the implementation of deep cost reductions while still delivering games on-time and with improved quality, and the development of...

  • Page 35
    ..., which range from very small start-up companies that seek to entice candidates with substantial equity compensation offers, to very large, diversified corporations with great financial and marketing resources. These competitors have made repeated attempts to recruit our executives and key creative...

  • Page 36
    ... review of compensation levels for members of the Board. Frederic W. Cook & Co. only performed director compensation-related services for the Company in fiscal 2010. Role of Management In formulating executive compensation recommendations for the Committee and the Board, our Executive Vice President...

  • Page 37
    ... internal pay equity. Because these decisions were influenced by the Company's financial and operational results, as well as each executive officer's individual performance, his or her total cash compensation, and any individual compensation component, may be within, below, or above the market range...

  • Page 38
    ... Group. The annual cash bonus awards for our executive officers for fiscal 2010 were determined by evaluating actual Company and individual performance relative to certain performance measures under two separate annual incentive plans, the Executive Bonus Plan and the Electronic Arts Discretionary...

  • Page 39
    ... compensation, acquisition-related expenses, restructuring charges, income tax adjustments, changes in deferred net revenue, losses on investments, and goodwill impairment, among others. In addition, the Company makes further adjustment to the publicly disclosed non-GAAP financial measures to add...

  • Page 40
    ... in digital revenue, the launch of EA SPORTS Active as the most successful product released by EA for the Nintendo Wii, the even-more-successful launch of FIFA 10, which hit an all time segment share high in the soccer sector, and the repositioning of the EA SPORTS brand to reach new markets and...

  • Page 41
    ... Earnings Per Share, non-GAAP Net Revenue and non-GAAP digital revenue, and 35% on individual contributions and the achievement of measurable business objectives. Equity Awards An integral part of our compensation philosophy is to align the interests of our executive officers and our stockholders by...

  • Page 42
    ... and Employee Benefit Plans", of the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2010. Delivered Value of the stock options is the difference between the exercise price of the options vested as of September 16, 2009 and the closing price of...

  • Page 43
    ... by the quoted market price of our common stock on the grant date. The valuation assumptions used to calculate the fair value of stock options are discussed in Note 13, "Stock-Based Compensation and Employee Benefit Plans", of the Consolidated Financial Statements in our Annual Report on Form 10...

  • Page 44
    .... (4) Other NEO Equity Awards In connection with our annual performance review process at the start of fiscal 2010, certain executive officers (other than Mr. Riccitiello) were granted time-based restricted stock units in June 2009. These restricted stock units vest ratably on an annual basis over...

  • Page 45
    ...". The Management Committee reports on its activities to the Committee on at least an annual basis. Proxy Statement Compensation Recovery In July 2009, the Committee adopted a "clawback" provision to be included in all equity award agreements on a prospective basis. If an employee engages in...

  • Page 46
    ... his restricted stock unit and stock option awards until the termination date. In exchange, Dr. Florin relinquished his right to any additional compensation, released any claims he may have had against the Company and agreed not to work for a competitor of the company for a period of 12 months from...

  • Page 47
    ...that Mr. Riccitiello, company-level presidents (including the presidents of our labels and our president of publishing), and executive vice presidents (including Mr. Brown, our Chief Financial Officer) are entitled to receive upon a qualifying termination of employment under the CoC Plan is equal to...

  • Page 48
    ... laws. Under this policy, certain employees (including all of our executive officers) who regularly have access to material, non-public information about the Company are prohibited from buying or selling shares of the Company's common stock during periods when the Company's trading window is closed...

  • Page 49
    ... Proxy Statement We account for stock-based compensation awards in accordance with the applicable accounting standard related to stock-based compensation. The comparable compensation expense of restricted stock units and stock options under this standard has removed a financial reporting...

  • Page 50
    ... Employee Benefit Plans", of the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2010. Represents the grant-date fair value of stock options granted in those years. As required by SEC rules effective for fiscal 2010, the amounts shown for 2008...

  • Page 51
    .... Relocation-related costs for Mr. Moore in fiscal 2008 include costs of a house-hunting trip, temporary housing, home sale costs, storage and shipping of household goods. Amounts shown reflect company contributions to a defined contribution pension plan for which all employees in Switzerland...

  • Page 52
    ...-Based Compensation and Employee Benefit Plans", of the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2010. Represents the fair value of the continued vesting associated with Dr. Florin's stock options pursuant to the Termination Agreement...

  • Page 53
    ...of potential cash bonus plan awards provided for under the Electronic Arts Executive Bonus Plan. During fiscal 2010 the Compensation Committee increased the target bonus opportunity for Messrs. Riccitiello, Gibeau and Moore, as described above under "Annual Cash Bonus" in the Compensation Discussion...

  • Page 54
    ..., see Note 13, "Stock-Based Compensation and Employee Benefit Plans", of the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended March 31, 2010. Represents RSUs granted to Dr. Florin in exchange for stock options to purchase 122,500 shares tendered by Dr...

  • Page 55
    ...All stock options and RSUs were granted pursuant to EA's 2000 Equity Incentive Plan. Represents time-based RSUs. The market value was calculated by multiplying the number of unvested RSUs by $18.84, the closing price of EA's common stock on April 1, 2010, the last trading day of our fiscal year. 47

  • Page 56
    ... net income targets (as measured on a trailing four-quarter basis). The market value of Performance-Based RSUs was calculated by multiplying the number of unvested RSUs by $18.84, the closing price of EA's common stock on April 1, 2010, the last trading day of our fiscal year. For more information...

  • Page 57
    ...671,187 538,031 362,800 Proxy Statement Represents shares of EA common stock released during fiscal 2010, net of shares withheld for tax purposes. The value realized upon vesting of RSUs is calculated by multiplying the number of RSUs vested by the closing price of EA common stock on the vest date...

  • Page 58
    ... a change of control occurring as of April 1, 2010. This amount is calculated by multiplying the number of shares underlying each accelerated unvested option by the difference between the per-share closing price of our common stock on April 1, 2010, which is the last trading day of our fiscal year...

  • Page 59
    ... equity incentive plans as of the end of fiscal 2010 including the 2000 Equity Incentive and 2000 Employee Stock Purchase Plans. Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (A) Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights...

  • Page 60
    ... their service as members of our Board of Directors. Prior to becoming Chief Executive Officer of Electronic Arts, John S. Riccitiello was a Co-Founder and Managing Partner of Elevation Partners, L.P., and also served as Chief Executive Officer of VGH, which we acquired in January 2008. At the time...

  • Page 61
    ...the following companies, which are affiliated with members of our Board of Directors: Nokia Corporation primarily related to our EA Mobile business; WorldWinner.com, a subsidiary of Liberty Media Corporation related to our Pogo business; and Google Inc. Mr. Simonson is the Chief Financial Officer of...

  • Page 62
    ... sharing the same address by delivering a single notice, proxy statement and/ or annual report addressed to those stockholders. This process, which is commonly referred to as "householding", potentially means extra convenience for stockholders and cost savings for companies. This year, a number...

  • Page 63
    ... and 2000 Employee Stock Purchase Plan, each as proposed to be amended. Any such request should be directed as follows: Stock Administration Department, Electronic Arts Inc., 209 Redwood Shores Parkway, Redwood City, CA 94065 - telephone number (650) 628-1500. OTHER BUSINESS The Board does not know...

  • Page 64
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  • Page 65
    ...of EA may receive incentive stock options under the Equity Plan. Nonqualified stock options, stock appreciation rights, restricted stock, and restricted stock units may be granted to employees and directors of EA or any parent or subsidiary of EA. As of May 20, 2010, approximately 8,700 persons were...

  • Page 66
    ... of compensation due or accrued for services rendered; (e) with respect only to purchases upon exercise of an option, and provided that a public market for the Company's stock exists: (1) subject to applicable laws, by a "same-day sale" commitment from the optionee and a National Association of...

  • Page 67
    ... additional option to purchase 8,400 shares of common stock and 1,200 restricted stock units. If a non-employee director has not served on our Board of Directors for a full year at the time of the annual meeting of our stockholders, such director will receive a pro-rated annual grant. Options issued...

  • Page 68
    ...(n) total stockholder return; (o) market share; (p) return on assets or net assets; (q) the Company's stock price; (r) growth in stockholder value relative to a pre-determined index; (s) return on equity; (t) return on invested capital; (u) cash flow (including free cash flow or operating cash flows...

  • Page 69
    ... UNDER THE EQUITY PLAN. THE FEDERAL TAX LAWS MAY CHANGE AND THE FEDERAL, STATE AND LOCAL TAX CONSEQUENCES FOR ANY PARTICIPANT WILL DEPEND UPON HIS OR HER INDIVIDUAL CIRCUMSTANCES. IN ADDITION, THE INTERNAL REVENUE SERVICE COULD, AT ANY TIME, TAKE A POSITION CONTRARY TO THE INFORMATION DESCRIBED IN...

  • Page 70
    ... restricted stock units at the time that the restrictions lapse, provided the shares are issued on the date the restrictions lapse. The participant will include in income the fair market value of the shares of stock on the date that the restrictions lapse as to those shares, less any purchase price...

  • Page 71
    ...the 2010 Annual Meeting, stockholders will be asked to approve amendments to the Equity Plan as follows: • Increase the number of shares authorized under the Equity Plan by 5,300,000 shares; and • Remove the provisions of the Equity Plan that provide for automatic grants to outside directors. In...

  • Page 72
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  • Page 73
    ...purchase shares at a rate that, when aggregated with all other rights to purchase stock under all other employee stock purchase plans of the Company, or any parent or subsidiary of the Company, exceeds $25,000 in fair market value (determined on the Offering Date) for each year. B-1 Proxy Statement

  • Page 74
    ...of the shares on the Purchase Date. The fair market value of the common stock on a given date is the closing price of the common stock on the immediately preceding business day as quoted on the NASDAQ Global Select Market. Purchase of Stock. The number of whole shares an employee may purchase in any...

  • Page 75
    ... of shares purchased under the Purchase Plan. Proposed Amendment of the 2000 Employee Stock Purchase Plan At the 2010 Annual Meeting, stockholders will be asked to increase by 2,000,000 the number of shares of the Company's common stock reserved for issuance under the Purchase Plan. Proxy Statement...

  • Page 76
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  • Page 77
    2010 Annual Report on Form 10-K Annual Report

  • Page 78
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  • Page 79
    ... 0-17948 ELECTRONIC ARTS INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 94-2838567 (I.R.S. Employer Identification No.) 209 Redwood Shores Parkway Redwood City, California (Address of principal executive offices...

  • Page 80
    ELECTRONIC ARTS INC. 2010 FORM 10-K ANNUAL REPORT Table of Contents Page PART I Item 1 Business ...Item 1A Risk Factors ...Item 1B Unresolved Staff Comments ...Item 2 Properties ...Item 3 Legal Proceedings ...Item 4 Reserved ...PART II Item 5 Market for Registrant's Common Equity, Related ...

  • Page 81
    ... we produced the most software products were: Platform Number of titles developed and published by EA in fiscal year 2010 Annual Report Mobile ...Xbox 360 ...PLAYSTATION 3 ...Wii ...PC ...Nintendo DS ...PSP ...PlayStation 2 ... 48 22 21 19 16 16 10 6 Our products for videogame consoles, PCs and...

  • Page 82
    ... our net revenue from direct sales of packaged goods products to retailers and in some of our smaller international territories, we work with third parties to distribute our packaged goods products. Many of our games, and other online content, are also available to consumers via proprietary networks...

  • Page 83
    ... executive offices are located at 209 Redwood Shores Parkway, Redwood City, California 94065 and our telephone number is (650) 628-1500. Significant Business Developments in Fiscal 2010 Acquisition of Playfish Limited On November 9, 2009, we acquired all of the outstanding shares of Playfish Limited...

  • Page 84
    ... party companies, to provide these partners with a variety of services including development assistance, publishing, and distribution of their games. EA SPORTS Label The EA SPORTS Label brings together a collection of sports-based video games marketed under the EA SPORTS brand. EA SPORTS games range...

  • Page 85
    ...agreement have been released in fiscal years 2009 and 2010 and we plan to release additional products based on Hasbro toy and game brands in fiscal year 2011. Our EA Play Label oversees internal studios and development teams located in California, United States, Utah, United States, Montreal, Canada...

  • Page 86
    ...we offer our consumers new direct-to-consumer services such as additional content to further enhance the gaming experience and extend the time that consumers play our games after their initial purchase. Competition in Games for Mobile Devices The mobile entertainment applications market segment, for...

  • Page 87
    ... studios and performing talent, authors and literary publishers, music labels, music publishers and musicians. These agreements typically limit our use of the licensed rights in products for specific time periods. In addition, our products that play on game consoles, handhelds and mobile devices...

  • Page 88
    ... directly from videogame consoles or mobile devices. We generated approximately 75 percent of our North America net revenue from direct sales to retailers in fiscal year 2010, with the remaining net revenue being generated through a limited number of specialized and regional distributors in markets...

  • Page 89
    ... sports leagues and players' associations. EA Partners Through our EA Partners group, we team with external game developers and third party companies, to provide these partners with a variety of services including development assistance, publishing, and distribution. For example, through agreements...

  • Page 90
    ... and on the Board of Councilors of the USC School of Cinematic Arts. Mr. Schappert has served as Chief Operating Officer of Electronic Arts since July 2009. Prior to re-joining Electronic Arts, he served as Corporate Vice President of Microsoft Interactive Entertainment Business, responsible for...

  • Page 91
    ... Vice President of The Sims studio in September 2008. Prior to joining Electronic Arts, Mr. Humble was the Vice President of Product Development at Sony Online Entertainment from 2000 to 2004. From 1997 to 2000, he served as Chief Executive Officer of Harmless Games, an independent games company...

  • Page 92
    ... Exchange Act, as amended, are available free of charge on the Investor Relations section of our website at http://investor.ea.com as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Except as expressly set forth in this Form 10-K annual report...

  • Page 93
    ...financial performance. Our business is highly dependent on the success and availability of video game hardware systems manufactured by third parties, as well as our ability to develop commercially successful products for these systems. We derive most of our revenue from the sale of products for play...

  • Page 94
    ... desired financial returns We are actively seeking to monetize the game properties that we publish through a variety of new platforms and business models, including online distribution, micro-transactions, and subscription services. Forecasting our revenues and profitability for these new business...

  • Page 95
    ... total net revenue for the fiscal year ended March 31, 2010. As a result of the economic downturn, retailers globally continue to take a more conservative stance in ordering game inventory. Though our products are available to consumers through a variety of retailers, the concentration of our sales...

  • Page 96
    ... our digital download offerings on their proprietary networks, or significantly impact the financial terms on which these services are offered to our customers, our business could be harmed. The video game hardware manufacturers set the royalty rates and other fees that we must pay to publish games...

  • Page 97
    ... popularity, price and timing of our games and the platforms on which they are played; economic conditions that adversely affect discretionary consumer spending; changes in consumer demographics; the availability and popularity of other forms of entertainment; and critical reviews and public tastes...

  • Page 98
    ... Retaining key employees and maintaining the key business and customer relationships of the businesses we acquire, • The need to integrate an acquired company's accounting, management information, human resource and other administrative systems to permit effective management and timely reporting...

  • Page 99
    ... of our products and services, we are subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the Internet. In addition, laws and regulations relating to user privacy, data collection and retention, content, advertising and information security...

  • Page 100
    ...assets, or pre-release software could lead to piracy of our software or otherwise compromise our product plans. When we conduct business online directly with consumers, we may be the victim of fraudulent transactions, including credit card fraud, which presents a risk to our revenues and potentially...

  • Page 101
    ...changes in applicable tax laws (in the United States or foreign jurisdictions), or changes in the valuation allowance for deferred tax assets, as well as other factors. In fiscal years 2009 and 2010, we recorded a valuation allowance against most of our U.S. deferred tax assets. We expect to provide...

  • Page 102
    ... product offerings, the application of existing or future financial accounting standards, particularly those relating to the way we account for revenue and taxes, could have a significant adverse effect on our reported results although not necessarily on our cash flows. We rely on business partners...

  • Page 103
    ... We own our 660,000 square foot Redwood Shores headquarters facilities located in Redwood City, California which includes a product development studio and administrative and sales functions. We also own a 418,000square-foot product development studio facility in Burnaby, Canada, and a 122,000...

  • Page 104
    ... market value of the property at the date of sale, a right of first offer to purchase the property upon terms offered by the Landlord, and a right to share in the profits from a sale of the property. Existing campus facilities comprise a total of 243,000 square feet and provide space for research...

  • Page 105
    ..., Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the NASDAQ Global Select Market under the symbol "ERTS." The following table sets forth the quarterly high and low sales price per share of our common stock from April 1, 2008...

  • Page 106
    ...value of $100. Each measurement point is as of the end of each fiscal year ended March 31. The performance of our stock depicted in the following graph is not necessarily indicative of the future performance of our stock. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Electronic Arts, Inc., the...

  • Page 107
    ... Data ELECTRONIC ARTS INC. AND SUBSIDIARIES SELECTED FIVE-YEAR CONSOLIDATED FINANCIAL DATA (In millions, except per share data) STATEMENTS OF OPERATIONS DATA 2010 Year Ended March 31, 2009 2008 2007(a) 2006 Net revenue ...Cost of goods sold ...Gross profit ...Operating expenses: Marketing and sales...

  • Page 108
    ... "Business" section and the "Risk Factors" above, the remainder of "Management's Discussion and Analysis of Financial Condition and Results of Operations," or the Consolidated Financial Statements and related notes. About Electronic Arts We develop, market, publish and distribute video game software...

  • Page 109
    ...enhance the gaming experience and extend the time that consumers play our games after their initial purchase. Used Games. Certain of our customers sell used video games, which are generally priced lower than new video games and do not result in revenue to the publisher of the games from the sale. We...

  • Page 110
    ... common stock measured as of the start date of the Exchange Program, as reported on the NASDAQ Global Select Market, and that upon conversion using the exchange ratio applicable for such options resulted in four or more shares of restricted stock units, shares of restricted stock or new options, as...

  • Page 111
    ... or management judgments, or changes to the elements in a software arrangement, could cause a material increase or decrease in the amount of revenue that we report in a particular period. Depending on the type of product, we may offer an online service that permits consumers to play against...

  • Page 112
    ...game segment, changes in customer demand and acceptance of our software products, and other related factors. In addition, we monitor the volume of sales to our channel partners and their inventories, as substantial overstocking in the distribution channel could result in high returns or higher price...

  • Page 113
    ... historical experience. Depending upon the overall economic climate and the financial condition of our customers, the amount and timing of our bad debt expense and cash collection could change significantly. Fair Value Estimates The preparation of financial statements in conformity with accounting...

  • Page 114
    ... with the plans and estimates we are using to manage the underlying business. Our business consists of developing, marketing and distributing video game software using both established and emerging intellectual properties and our forecasts for emerging intellectual properties are based upon...

  • Page 115
    .... The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. • Expected volatility. We use a combination of historical stock price volatility and implied volatility computed based on the price of options publicly traded on our...

  • Page 116
    ... in restructuring charges presented in Note 7 of the Notes to Consolidated Financial Statements. The loss charges in fiscal year 2009 primarily related to an amendment of a licensor agreement in which we terminated certain rights we previously had to use the licensor's intellectual property. Income...

  • Page 117
    ... changes in our international corporate structure, changes in the geographic location of business functions or assets, changes in the geographic mix and amount of income, as well as changes in our agreements with tax authorities, valuation allowances, applicable accounting rules, applicable tax laws...

  • Page 118
    ... to Fiscal 2009 Net Revenue Net revenue consists of sales generated from (1) video games sold as packaged goods and designed for play on hardware consoles (such as the PLAYSTATION 3, Xbox 360 and Wii), PCs, and handheld game players (such as the Sony PSP and Nintendo DS), (2) video games for mobile...

  • Page 119
    ... to provide future incremental unspecified digital content that did not exist in fiscal year 2009. These decreases were partially offset by (1) $131 million from sales of EA SPORTS Active and (2) an $89 million increase from sales of The Sims. North America For fiscal year 2010, Net Revenue before...

  • Page 120
    ... Net Revenue before Revenue Deferral for fiscal year 2010 increased by $19 million, or 9 percent, as compared to fiscal year 2009. From an operational perspective, this increase was primarily driven by (1) a $8 million increase from sales of FIFA Soccer, (2) $8 million from sales of EA SPORTS Active...

  • Page 121
    ...-party properties. Cost of goods sold for our web site advertising business primarily consists of server costs. Cost of goods sold for fiscal years 2010 and 2009 were as follows (in millions): March 31, 2010 % of Net Revenue March 31, 2009 % of Net Revenue Change as a % of Net Revenue Annual Report...

  • Page 122
    ... direct development and related overhead costs in connection with the development and production of our online games. Research and development expenses also include expenses associated with the development of web site content, software licenses and maintenance, network infrastructure and management...

  • Page 123
    ... charges under this plan. Fiscal 2008 Reorganization During fiscal year 2010, we incurred $10 million of reorganization charges, primarily related to other expenses, including contracted services costs to assist in the reorganization of our business support functions. During fiscal 45 Annual Report

  • Page 124
    ...associated with our EA Mobile reporting unit was derived from our fiscal 2006 acquisition of JAMDAT Mobile Inc. During the fiscal year ended March 31, 2009, we recognized a goodwill impairment charge of $368 million related to our EA Mobile reporting unit. During the fiscal year ended March 31, 2010...

  • Page 125
    ... on our cash and cash equivalents and short-term investments. Income Taxes Income tax provision (benefit) for fiscal years 2010 and 2009 were as follows (in millions): March 31, 2010 Effective Tax Rate March 31, 2009 Effective Tax Rate % Change $(29) (4.1%) $233 27.2% (112%) Annual Report Our...

  • Page 126
    ... by Rock Band, FIFA 09, and Madden NFL 09. Net Revenue before Revenue Deferral for fiscal year 2009 increased $66 million, or 2 percent, as compared to fiscal year 2008. From an operational perspective, this increase was primarily driven by (1) a $270 million increase from sales of Rock Band and...

  • Page 127
    ... from sales of Spore. The Recognition of Revenue Deferral for fiscal year 2009 increased $372 million, or 45 percent, as compared to fiscal year 2008. Starting in fiscal year 2008, since VSOE did not exist for our online service, we began to recognize all of the Net Revenue from bundled sales on...

  • Page 128
    ... increase from sales of Battlefield. For fiscal year 2009, Net Revenue in Europe was $1,589 million, driven by FIFA 09, Need for Speed Undercover, and Rock Band. Net Revenue for fiscal year 2009 increased $48 million, or 3 percent, as compared to fiscal year 2008. From an operational perspective...

  • Page 129
    ... web sites, credit card fees and royalties for use of third-party properties. Cost of goods sold for our web site advertising business primarily consists of server costs. Cost of goods sold for fiscal years 2009 and 2008 were as follows (in millions): Annual Report March 31, 2009 % of Net Revenue...

  • Page 130
    ... of web site content, software licenses and maintenance, network infrastructure and management overhead. Research and development expenses for fiscal years 2009 and 2008 were as follows (in millions): March 31, 2009 % of Net Revenue March 31, 2008 % of Net Revenue $ Change % Change $1,359 32...

  • Page 131
    ... related to our EA Mobile reporting unit. Restructuring Charges Restructuring charges for fiscal years 2009 and 2008 were as follows (in millions): March 31, 2009 % of Net Revenue March 31, 2008 % of Net Revenue $ Change % Change $80 2% $103 3% $(23) (22%) Fiscal 2009 Restructuring In fiscal...

  • Page 132
    ... Statements of Operations. See Note 5 of the Notes to Consolidated Financial Statements included in Item 8 of this report. Acquired in-process technology charges for fiscal years 2009 and 2008 were as follows (in millions): March 31, 2009 % of Net Revenue March 31, 2008 % of Net Revenue $ Change...

  • Page 133
    .... ASU 2009-13 is effective for fiscal years beginning on or after June 15, 2010. We do not expect the adoption of ASU 2009-13 to have a material impact on our Consolidated Financial Statements. In October 2009, the FASB issued ASU 2009-14, Software (Topic 985) - Certain Revenue Arrangements that...

  • Page 134
    ...compared to generating $12 million for fiscal year 2009. The increase in cash provided by operating activities for fiscal year 2010 as compared to fiscal year 2009 was primarily due to decreases in personnel-related costs and external development and contracted services as part of our cost reduction...

  • Page 135
    fourth quarter of fiscal year 2010 as compared to the fourth quarter of fiscal year 2009. Reserves for sales returns, pricing allowances and doubtful accounts as of March 31, 2010 and 2009 was flat at $217 million. As a percentage of trailing nine month net revenue, reserves increased from 6 percent...

  • Page 136
    ... various risks and uncertainties including, but not limited to, those related to customer demand and acceptance of our products, our ability to collect our accounts receivable as they become due, successfully achieving our product release schedules and attaining our forecasted sales objectives, the...

  • Page 137
    ... dates through fiscal year 2016. No single licensor and development agreement represented greater than one-third of the total $170 million. Related Person Transaction Prior to becoming Chief Executive Officer of Electronic Arts, John Riccitiello was a co-founder and Managing Partner of Elevation...

  • Page 138
    ... operating lease agreements. We were required to pay property taxes, insurance and normal maintenance costs for certain of these facilities and any increases over the base year of these expenses on the remainder of our facilities. On July 13, 2009, we purchased our Redwood Shores headquarters...

  • Page 139
    ...the time of purchase. We also do not currently hedge our market price risk relating to our marketable equity securities and we do not enter into derivatives or other financial instruments for trading or speculative purposes. Foreign Currency Exchange Rate Risk Cash Flow Hedging Activities. From time...

  • Page 140
    ...financial instruments in our short-term investment portfolio. As of March 31, 2010 and 2009, our short-term investments were classified as available-for-sale securities and, consequently, were recorded at fair market value with unrealized gains or losses resulting from changes in fair value reported...

  • Page 141
    ... 15 $524 Annual Report Market Price Risk The fair value of our marketable equity securities in publicly traded companies is subject to market price volatility and foreign currency risk for investments denominated in foreign currencies. As of March 31, 2010 and March 31, 2009, our marketable equity...

  • Page 142
    ... impacted by volatility in the public stock markets. At any time, a sharp change in market prices in our investments in marketable equity securities could have a significant impact on the fair value of our investments. The following table presents hypothetical changes in the fair value of our...

  • Page 143
    ...and 2008 ...Consolidated Statements of Cash Flows for the Years Ended March 31, 2010, 2009 and 2008 ...Notes to Consolidated Financial Statements ...Reports of Independent Registered Public Accounting Firm ...Financial Statement Schedule: The following financial statement schedule of Electronic Arts...

  • Page 144
    ..., net ...Goodwill ...Acquisition-related intangibles, net ...Deferred income taxes, net ...Other assets ...TOTAL ASSETS ...LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ...Accrued and other current liabilities ...Deferred net revenue (packaged goods and digital content...

  • Page 145
    ELECTRONIC ARTS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Net revenue ...Cost of goods sold ...Gross profit ...Operating expenses: Marketing and sales ...General and administrative ...Research and development ...Restructuring charges ......

  • Page 146
    ... adjustment ...Comprehensive loss ...Issuance of common stock ...Stock-based compensation ...Tax benefit from exercise of stock options ...Assumption of stock options in connection with acquisition ...Balances as of March 31, 2008 ...Net loss ...Change in unrealized gains (losses) on investments...

  • Page 147
    ... taxes, net ...Deferred net revenue (packaged goods and digital content) ...Net cash provided by operating activities ...INVESTING ACTIVITIES Purchase of headquarters facilities ...Capital expenditures ...Proceeds from sale of marketable equity securities ...Purchase of marketable equity securities...

  • Page 148
    ELECTRONIC ARTS INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES We develop, market, publish and distribute video game software and content that can be played by consumers on a variety of platforms, including ...

  • Page 149
    ... investments are available for use in current operations or other activities such as capital expenditures and business combinations. Marketable equity securities consist of investments in common stocks of publicly traded companies and are accounted for as available-for-sale securities and are...

  • Page 150
    ...fiscal years 2010, 2009 and 2008, respectively. These charges are included in restructuring charges on our Consolidated Statements of Operations. Goodwill We are required to perform a two-step approach to testing goodwill for impairment for each reporting unit annually, or whenever events or changes...

  • Page 151
    ...us and our customers are presented on a net basis in our Consolidated Statements of Operations. Concentration of Credit Risk We extend credit to various companies in the retail and mass merchandising industries. Collection of trade receivables may be affected by changes in economic or other industry...

  • Page 152
    ... potential future product returns, price protection and stock-balancing programs related to product revenue. We analyze historical returns, current sell-through of distributor and retailer inventory of our products, current trends in retail and the video game segment, changes in customer demand...

  • Page 153
    ...goods sold as the related revenue is recognized. Vendor reimbursements of advertising costs of $39 million, $31 million and $54 million reduced marketing and sales expense for the fiscal years ended March 31, 2010, 2009 and 2008, respectively. For the fiscal years ended March 31, 2010, 2009 and 2008...

  • Page 154
    ... for the fiscal years ended March 31, 2010, 2009 and 2008, respectively, are included in interest and other income, net, in our Consolidated Statements of Operations. Impact of Recently Issued Accounting Standards In October 2009, the FASB issued Accounting Standards Update ("ASU") 2009-13, Revenue...

  • Page 155
    ...money market funds, available-for-sale fixed income and marketable equity securities, deferred compensation plan assets, foreign currency derivatives and contingent consideration are measured and recorded at fair value on a recurring basis. Our Level 1 assets are valued using quoted prices in active...

  • Page 156
    ... Measurements at Reporting Date Using Quoted Prices in Active Markets Significant for Identical Other Significant Financial Observable Unobservable Instruments Inputs Inputs As of March 31, 2010 Assets Money market funds ...Available-for-sale securities: Marketable equity securities . . Corporate...

  • Page 157
    ... rights to intellectual property were impaired during the fiscal year ended March 31, 2010 due to events and circumstances that indicated that the carrying value of the assets was not recoverable. These impairments are included in restructuring charges in our Consolidated Statements of Operations...

  • Page 158
    ... March 31, 2009 Gross Cost or Unrealized Amortized Fair Cost Gains Losses Value Cash and cash equivalents: Cash ...Money market funds ...Commercial paper ...U.S. Treasury securities ...U.S. agency securities ...Corporate bonds ...Cash and cash equivalents ...Short-term investments: Corporate bonds...

  • Page 159
    ... The9 exclusive publishing rights for EA SPORTSâ„¢ FIFA Online 2 in mainland China. In April 2007, we expanded our commercial agreements with, and made strategic equity investments in, Neowiz Corporation and a related online gaming company, Neowiz Games. We refer to Neowiz Corporation and Neowiz...

  • Page 160
    ... our option into approximately 4 percent of the outstanding voting common shares of Neowiz in April 2008. During fiscal years 2009 and 2008, we recognized impairment charges of $10 million and $9 million, respectively, on our Neowiz preferred shares. Due to various factors, including but not limited...

  • Page 161
    ... value of $2 million in each year and are included in other current assets. The effect of foreign currency option contracts on our Consolidated Statements of Operations for the fiscal year ended March 31, 2010, was immaterial. Balance Sheet Hedging Activities Our foreign currency forward contracts...

  • Page 162
    Fiscal Year 2010 Acquisitions Playfish On November 9, 2009, we acquired all of the outstanding shares of Playfish for an aggregate purchase price of approximately $308 million in cash and equity. Playfish is a developer of free-to-play social games that can be played on social networking platforms. ...

  • Page 163
    ... impact on our Consolidated Financial Statements. Fiscal Year 2009 Acquisitions In May 2008, we acquired ThreeSF, Inc, a company based in San Francisco, California, that developed an online social network for gamers. Separately, in May 2008, we acquired certain assets of Hands-On Mobile Inc. and its...

  • Page 164
    ... acquired in-process technology charges of $138 million in relation to game software that had not reached technical feasibility as of the date of acquisition. The fair value of VGH's products under development was determined using the income approach, which discounts expected future cash flows from...

  • Page 165
    ... indicate the fair value of a reporting unit is below its carrying amount. Our reporting units are determined by the components of our operating segments that constitute a business for which (1) discrete financial information is available and (2) segment management regularly reviews the operating...

  • Page 166
    ...): As of March 31, 2010 Gross Carrying Amount Accumulated Amortization Acquisition-Related Intangibles, Net Gross Carrying Amount As of March 31, 2009 Accumulated Amortization Acquisition-Related Intangibles, Net Developed and Core Technology ...Trade Names and Trademarks ...Carrier Contracts...

  • Page 167
    ... the inception of the fiscal 2010 restructuring plan through March 31, 2010, we have incurred charges of $116 million, of which (1) $62 million were for employee-related expenses, (2) $32 million related to intangible asset impairment costs, abandoned rights to intellectual property, and other costs...

  • Page 168
    ... time four new "Labels": EA SPORTS, EA Games, EA Casual Entertainment and The Sims in order to streamline decision-making, improve global focus, and speed new ideas to market. In October 2007, our Board of Directors approved a plan of reorganization ("fiscal 2008 reorganization plan") in connection...

  • Page 169
    ...restructuring charges presented in Note 7 of the Notes to Consolidated Financial Statements. The loss charges in fiscal year 2009 primarily related to an amendment of a licensor agreement in which we terminated certain rights we previously had to use the licensor's intellectual property. The current...

  • Page 170
    ... for the fiscal years ended March 31, 2010, 2009 and 2008, respectively. On July 13, 2009, we purchased our Redwood Shores headquarters facilities comprised of approximately 660,000 square feet concurrent with the expiration and extinguishment of the lessor's financing agreements. These facilities...

  • Page 171
    ...content associated with our core subscription services that can only be played online, which are types of "micro-transactions." We recognize revenue from sales of online-enabled packaged goods and digital content for which (1) we do not have VSOE for the online service that we provided in connection...

  • Page 172
    ...as follows: 2010 Year Ended March 31, 2009 2008 Statutory federal tax (benefit) rate ...State taxes, net of federal benefit ...Differences between statutory rate and foreign effective tax rate ...Valuation allowance ...Research and development credits ...Non-deductible acquisition-related costs and...

  • Page 173
    ... of March 31, 2010 and 2009, respectively. A reconciliation of the beginning and ending balance of unrecognized tax benefits is summarized as follows (in millions): Annual Report Balance as of March 31, 2008 ...Increases in unrecognized tax benefits related to prior year tax positions ...Decreases...

  • Page 174
    ...purchase of our Redwood Shores headquarters facilities on July 13, 2009. Development, Celebrity, League and Content Licenses: Payments and Commitments The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software...

  • Page 175
    ... Company (collegiate football and basketball); ESPN (content in EA SPORTS games); Hasbro, Inc. (most of Hasbro's toy and game intellectual properties); and the Estate of Robert Ludlum (Robert Ludlum novels and films). These developer and content license commitments represent the sum of (1) the cash...

  • Page 176
    ... 31, 2010 and 2009, we had 10,000,000 shares of preferred stock authorized but unissued. The rights, preferences, and restrictions of the preferred stock may be designated by our Board of Directors without further action by our stockholders. (13) STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS...

  • Page 177
    ... units and our ESPP included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 2010 2009 2008 Cost of goods sold ...Marketing and sales ...General and administrative ...Research and development ...Restructuring charges ...Stock-based compensation expense ...Benefit...

  • Page 178
    ...-date) of options vested during fiscal years 2010, 2009 and 2008 were $26 million, $83 million and $82 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock options. A total of 18 million shares were available for grant under our Equity Plan as of...

  • Page 179
    ... is computed by dividing the options in the related range of exercise prices by 330 million shares of common stock, which were issued and outstanding as of March 31, 2010. At our Annual Meeting of Stockholders, held on July 29, 2009, in addition to approving our Exchange Program discussed below, our...

  • Page 180
    ... of their compensation to purchase shares at 85 percent of the lower of the market price of our 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 29, 2009, our stockholders approved...

  • Page 181
    ... common stock measured as of the start date of the Exchange Program, as reported on the NASDAQ Global Select Market, and that upon conversion using the exchange ratio applicable for such options resulted in four or more shares of restricted stock units, shares of restricted stock or new options, as...

  • Page 182
    ... of our Canadian employees. These plans permit us to make discretionary contributions to employees' accounts based on our financial performance. We contributed an aggregate of $10 million, $7 million and $13 million to these plans in fiscal years 2010, 2009 and 2008, respectively. (14) COMPREHENSIVE...

  • Page 183
    ...by our Chief Executive Officer, our Chief Operating Decision Maker ("CODM"), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. Our business is currently organized around three operating labels, EA Games, EA SPORTS and EA Play...

  • Page 184
    .... Our CODM reviews assets on a consolidated basis and not on a segment basis. Information about our total net revenue by platform for the fiscal years ended March 31, 2010, 2009 and 2008 is presented below (in millions): Year Ended March 31, 2010 2009 2008 Consoles Xbox 360 ...PLAYSTATION 3 ...Wii...

  • Page 185
    ... Financial Statements for the fiscal years ended March 31, 2010, 2009 and 2008. (19) RELATED PERSON TRANSACTION Prior to becoming Chief Executive Officer of Electronic Arts, John Riccitiello was a co-founder and Managing Partner of Elevation Partners, L.P., and also served as Chief Executive Officer...

  • Page 186
    ...FINANCIAL AND MARKET INFORMATION (UNAUDITED) (In millions, except per share data) Fiscal 2010 Consolidated Net revenue ...Gross profit ...Operating income (loss) ...Net income (loss) ...Common Stock Net income (loss) per share - Basic and Diluted ...Common stock price per share High ...Low ...Fiscal...

  • Page 187
    ...the Company changed its method of accounting for uncertainty in income taxes at the beginning of fiscal year 2008. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Electronic Arts Inc.'s internal control over financial reporting...

  • Page 188
    ... of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Electronic Arts Inc. and subsidiaries as of April 3, 2010 and March 28, 2009, and the related consolidated statements of operations, stockholders' equity and comprehensive loss, and cash flows for...

  • Page 189
    ... in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as...

  • Page 190
    ... has been no change in our internal control over financial reporting identified in connection with our evaluation that occurred during the fiscal year ended March 31, 2010 that has materially affected or is reasonably likely to materially affect our internal control over financial reporting. Item 9B...

  • Page 191
    ...: Directors, Executive Officers and Corporate Governance The information required by Item 10 is incorporated herein by reference to the information to be included in our Proxy Statement for our 2010 Annual Meeting of Stockholders (the "Proxy Statement") other than the information regarding executive...

  • Page 192
    ... undersigned, thereunto duly authorized. ELECTRONIC ARTS INC. By: /s/ John S. Riccitiello John S. Riccitiello, Chief Executive Officer Date: May 28, 2010 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the...

  • Page 193
    ... SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Years Ended March 31, 2010, 2009 and 2008 (In millions) Balance at Beginning of Period Charged to Revenue, Costs and Expenses Charged (Credited) to Other Accounts(a) Balance at End of Period Allowance for Doubtful Accounts, Price Protection and Returns...

  • Page 194
    ...Inc. Executive Bonus Plan. Electronic Arts Deferred Compensation Plan, as amended and restated. Registrant's 2000 Equity Incentive Plan, as amended, and related documents. Registrant's 2000 Employee Stock Purchase Plan, as amended. Form of Stock Option Agreement (2000 Equity Incentive Plan: Director...

  • Page 195
    ...and Article IX only, Elevation Management, LLC as Stockholder Representative dated October 11, 2007. Electronic Arts Key Employee Continuity Plan. Offer Letter for Employment at Electronic Arts Inc. to Eric Brown, dated March 19, 2008. Second Amendment of Lease Agreement by and between US Industrial...

  • Page 196
    ... 2008, by and between EA International (Studio and Publishing) Limited and Sony Computer Entertainment Europe Limited. Confidential License Agreement for the Wii Console (Western Hemisphere), dated November 19, 2006, by and among Electronic Arts Inc., EA International (Studio and Publishing) Limited...

  • Page 197
    ... and Electronic Arts - Tiburon, a Florida corporation f/k/a Tiburon Entertainment, Inc. Termination Agreement for Gerhard Florin, dated November, 19, 2010. Subsidiaries of the Registrant. Consent of KPMG LLP, Independent Registered Public Accounting Firm. Certification of Chief Executive Officer...

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  • Page 199
    ... Exchange Commission, is available by contacting: Investor Relations Electronic Arts Inc. 209 Redwood Shores Parkway Redwood City, CA 94065 (650) 628-7352 ANNUAL MEETING The Company's Annual Meeting of Stockholders is scheduled to be held on August 5, 2010, at 2:00 P.M. at the Company's headquarters...

  • Page 200
    Electronic Arts Inc. 209 Redwood Shores Parkway Redwood City, CA 94065 www.ea.com Cert no. SCS-COC-000648