Electronic Arts 2010 Annual Report Download - page 54

(5) Represents stock options granted under our 2000 Equity Incentive Plan.
(6) The exercise price of all stock options was 100% of the fair market value on the date of grant (based on the closing price of our common
stock on the NASDAQ Global Select Market on the date of grant).
(7) For grants of RSUs, represents the aggregate grant-date fair value calculated using the closing price of our common stock on the date of
grant. For Performance-Based RSUs, represents the aggregate grant-date fair value based on the probable outcome of the award on the
date of grant. At the time the Performance-Based RSUs were granted, we believed that the threshold target (one-third of the maximum
award) was probable with vesting based upon the achievement of the first non-GAAP net income target. For grants of stock options,
represents the aggregate grant-date fair value based on the Black-Scholes model. For a more detailed discussion of the valuation
methodology and assumptions used to calculate fair value, 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. The amounts
reflected in this column represent the value determined by EA for reporting purposes only and does not reflect whether the recipient has
actually realized a financial benefit from the awards.
(8) RSUs vest as to one-third 12 months from the grant date; then vest as to an additional one-third 24 months from the grant date; and then
vest as to the remaining one-third 36 months from the grant date.
(9) Stock option vests as to 24% of the shares on the first day of the calendar month that includes the one-year anniversary of the option
grant date, and will then vest and become exercisable as to an additional 2% of the shares on the first calendar day of each month
thereafter for 38 months.
(10) RSUs vest as to 25% of the shares on each of the first three anniversaries of the grant date, with the remaining shares vesting on the
fourth anniversary of the grant date.
(11) Represents RSUs granted to Dr. Florin in exchange for stock options to purchase 478,473 shares tendered by Dr. Florin under the
Exchange Program with exercise prices between $30.60 and $64.92 described under “Exchange Program” in the Compensation
Discussion and Analysis above. The RSUs vest as to 100% of the shares on November 10, 2010.
(12) Represents the aggregate incremental fair value of the RSUs granted to Dr. Florin as part of the Exchange Program. For additional
information about the RSUs granted to Dr. Florin as part of the Exchange Program, see “Exchange Program” in the Compensation
Discussion and Analysis above. For additional information on the valuation methodologies used to calculate fair value, 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.
(13) Represents RSUs granted to Dr. Florin in exchange for stock options to purchase 122,500 shares tendered by Dr. Florin under the
Exchange Program with exercise prices between $49.71 and $52.03 described under “Exchange Program” in the Compensation
Discussion and Analysis above. The RSUs vest as to 50% of the shares on November 10, 2010 and the remaining 50% scheduled to vest
on November 10, 2011 will not vest pursuant to the terms of Dr. Florin’s Termination Agreement.
(14) Represents RSUs granted to Dr. Florin as part of the Exchange Program and described in footnotes 11 and 13 above, which are expected
to vest on November 10, 2010. Dr. Florin only received the RSUs described in footnotes 11 and 13 above. However, the vesting terms of
that portion of the RSUs expected to vest on November 10, 2010 were modified, effective as of November 19, 2009. As a result of the
modification, under applicable accounting rules, fair value expense was associated with the modified RSUs in fiscal 2010, which is
described in more detail in footnote 15 below. For additional information about the RSUs granted to Dr. Florin as part of the Exchange
Program and the modified vesting terms of the RSUs see “Exchange Program” and “Executive Changes” in the Compensation
Discussion and Analysis above.
(15) Represents the fair value of the modification to the vesting terms of the RSUs described in footnote 14 above. For additional information
about the modification to the vesting terms Dr. Florin’s RSUs, see “Executive Changes” in the Compensation Discussion and Analysis
above. For additional information about the valuation methodologies used to calculate fair value, 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.
(16) Represents the stock options granted to Dr. Florin which are expected to vest on December 16, 2010. The vesting terms of the stock
options granted to Dr. Florin on December 16, 2008 were modified, effective as of November 19, 2009, pursuant to the terms of the
Termination Agreement. For additional information about the modified vesting terms of the stock options, see “Executive Changes” in
the Compensation Discussion and Analysis above.
(17) Represents the fair value of the continued vesting associated with Dr. Florin’s stock options described in footnote 16 above pursuant to
the Termination Agreement. For additional information about the modification to the vesting terms of Dr. Florin’s stock options, see
“Executive Changes” in the Compensation Discussion and Analysis above. For additional information on the valuation methodologies
used to calculate fair value, 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.
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