Electronic Arts 2010 Annual Report Download - page 179

Annual Report
The following table summarizes outstanding and exercisable options as of March 31, 2010:
Options Outstanding Options Exercisable
Range of
Exercise Prices
Number
of Shares
(in thousands)
Weighted-
Average
Remaining
Contractual
Term (in years)
Weighted-
Average
Exercise
Price
Potential
Dilution
Number
of Shares
(in thousands)
Weighted-
Average
Exercise
Price
Potential
Dilution
$0.65-$14.99 19 1.48 $ 9.11 — 19 $ 9.11 —
15.00-29.99 10,553 6.28 20.70 3.2% 4,313 23.23 1.3%
30.00-39.99 1,243 2.38 31.55 0.4% 1,243 31.55 0.4%
40.00-65.93 4,316 5.27 53.45 1.3% 3,590 53.94 1.1%
$0.65-$65.93 16,131 5.70 30.28 4.9% 9,165 36.36 2.8%
Potential dilution 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 stockholders also approved amendments to the Equity Plan to (1) increase the number of
shares authorized for issuance under the Equity Plan by 20.8 million shares and (2) amend the Equity Plan so that
each share subject to a full value stock award would reduce the number of shares available for issuance by 1.43
shares, instead of the current multiple of 1.82 shares. Our stockholders also approved an amendment to the ESPP
to increase the number of shares authorized under the ESPP by 3 million shares.
Restricted Stock Rights
We grant restricted stock rights under our Equity Plan to employees worldwide (except in certain countries where
doing so is not feasible due to local legal requirements). Restricted stock units entitle holders to receive shares of
common stock at the end of a specified period of time. Upon vesting, the equivalent number of common shares is
typically issued net of required tax withholdings, if any. Restricted stock is issued and outstanding upon grant;
however, restricted stock award holders are restricted from selling the shares until they vest. Upon granting or
vesting of restricted stock, as the case may be, we will typically withhold shares to satisfy tax withholding
requirements. Restricted stock rights are subject to forfeiture and transfer restrictions. Vesting for restricted stock
rights is based on the holders’ continued employment with us. If the vesting conditions are not met, unvested
restricted stock rights will be forfeited. Generally, our restricted stock rights vest according to one of the
following vesting schedules:
• 100 percent after one year;
• Three-year vesting with 33.33 percent cliff vesting at the end of each of the first and second years, and
33.34 percent cliff vesting at the end of the third year;
• Three-year vesting with 25 percent cliff vesting at the end of each of the first and second years, and 50
percent cliff vesting at the end of the third year;
• Four-year vesting with 25 percent cliff vesting at the end of each year; or
• 26 month vesting with 50 percent cliff vesting at the end of 13 months and 50 percent cliff vesting at the
end of 26 months.
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