Electronic Arts 2011 Annual Report Download - page 172

During fiscal year 2011, we issued approximately 2.2 million shares under the ESPP with exercise prices for
purchase rights ranging from $12.95 to $12.99. During fiscal years 2011, 2010 and 2009, the estimated weighted-
average fair values of purchase rights were $4.67, $6.50 and $13.04, respectively.
We issue new common stock out of the ESPP’s pool of authorized shares. The fair values above were estimated
on the date of grant using the Black-Scholes option-pricing model assumptions.
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. The assets held by the trust are classified as trading securities and are held at fair value on our
Consolidated Balance Sheets. The assets and liabilities of the DCP are presented in other assets and other
liabilities on our Consolidated Balance Sheets, respectively, with changes in the fair value of the assets and in the
deferred compensation liability recognized as compensation expense. As of March 31, 2011 and 2010, the
estimated fair value of the assets was $12 million in each period. As of March 31, 2011 and 2010, $13 million
and $12 million, respectively, was recorded to recognize undistributed deferred compensation due to employees.
401(k) Plan and Registered Retirement Savings Plan
We have a 401(k) plan covering substantially all of our U.S. employees, and a Registered Retirement Savings
Plan covering substantially all 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 $9
million, $10 million and $7 million to these plans in fiscal years 2011, 2010 and 2009, respectively.
Stock Repurchase Program
On February 1, 2011, our Board of Directors authorized a program to repurchase up to $600 million of our
common stock over the next 18 months. The timing and actual amount of the stock repurchases will depend on
several factors including price, capital availability, regulatory requirements, alternative investment opportunities
and other market conditions. We are not obligated to repurchase any specific number of shares under the program
and the repurchase program may be modified, suspended or discontinued at any time. During fiscal year 2011,
we repurchased and retired approximately 3 million shares of our common stock for approximately $58 million,
net of commissions.
(14) COMPREHENSIVE INCOME
We classify items of other comprehensive income (loss) by their nature in a financial statement and display the
accumulated other comprehensive income balance separately from retained earnings (accumulated deficit) and
paid-in capital in the equity section of our balance sheets. Accumulated other comprehensive income primarily
includes foreign currency translation adjustments and the net of tax amounts for unrealized gains (losses) on
available-for-sale securities and derivative instruments designated as cash flow hedges. Foreign currency
translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S.
subsidiaries.
96