Electronic Arts 2013 Annual Report Download - page 182

Options granted under the Equity Plan generally expire ten years from the date of grant and are generally
exercisable as to 24 percent of the shares after 12 months, and then ratably over the following 38 months.
At our Annual Meeting of Stockholders, held on July 26, 2012, our stockholders approved amendments to our
2000 Equity Incentive Plan (the “Equity Plan”) to increase the number of shares of common stock authorized
under the Equity Plan by 6,180,000 shares, and to increase the limit on the number of shares that may be covered
by equity awards to eligible persons under the Equity Plan in a fiscal year. A total of 11.8 million options or
8.3 million restricted stock units were available for grant under our Equity Plan as of March 31, 2013.
Stock Options
The following table summarizes our stock option activity for the fiscal year ended March 31, 2013:
Options
(in thousands)
Weighted-
Average
Exercise Prices
Weighted-
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic Value
(in millions)
Outstanding as of March 31, 2012 .............. 9,774 $34.17
Granted ................................. 296 13.15
Exercised ................................ (69) 15.17
Forfeited, cancelled or expired ............... (2,199) 32.02
Outstanding as of March 31, 2013 .............. 7,802 $34.17 4.54 $4
Vested and expected to vest ................... 7,755 $34.28 4.50 $3
Exercisable ................................ 7,293 $35.38 4.29 $3
As of March 31, 2013, the weighted-average remaining contractual term for our stock options outstanding was
4.54 years and the aggregate intrinsic value of our stock options outstanding was $4 million. The aggregate
intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of March 31, 2013,
which would have been received by the option holders had all the option holders exercised their options as of that
date. The weighted-average grant date fair values of stock options granted during fiscal years 2013, 2012, and
2011 were $4.64, $7.27 and $6.03, respectively. The total intrinsic values of stock options exercised during fiscal
years 2012 and 2011 were $4 million and $1 million, respectively. The total estimated fair values (determined as
of the grant date) of stock options vested during fiscal years 2013, 2012, and 2011 were $11 million, $15 million
and $24 million, respectively. We issue new common stock from our authorized shares upon the exercise of stock
options.
The following table summarizes outstanding and exercisable stock options as of March 31, 2013:
Options Outstanding Options Exercisable
Range of
Exercise Prices
Number
of Shares
(in thousands)
Weighted-
Average
Remaining
Contractual
Term (in years)
Weighted-
Average
Exercise
Prices
Potential
Dilution
Number
of Shares
(in thousands)
Weighted-
Average
Exercise
Prices
Potential
Dilution
$2.61-$19.99 2,639 5.98 $16.79 0.9% 2,271 $17.04 0.8%
20.00-39.99 1,707 5.99 21.58 0.6% 1,566 21.66 0.5%
40.00-59.99 2,795 3.05 51.04 0.9% 2,795 51.04 0.9%
60.00-65.93 661 1.17 64.66 0.2% 661 64.66 0.2%
$2.61-$65.93 7,802 4.54 34.17 2.6% 7,293 35.38 2.4%
Potential dilution is computed by dividing the options in the related range of exercise prices by 302 million
shares of common stock, which were issued and outstanding as of March 31, 2013.
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