Electronic Arts 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 Electronic Arts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 188

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

Electronic Arts Inc.
Fiscal Year 2014
Proxy Statement and Annual Report

Table of contents

  • Page 1
    Electronic Arts Inc. Fiscal Year 2014 Proxy Statement and Annual Report

  • Page 2

  • Page 3
    Proxy Statement Notice of 2014 Annual Meeting and Proxy Statement

  • Page 4
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 5
    ... proxy materials, your enclosed proxy card. Please note that this Proxy Statement, as well as our Annual Report on Form 10-K for fiscal year ended March 31, 2014, is available at http://investor.ea.com. By Order of the Board of Directors, Jacob J. Schatz Senior Vice President, General Counsel and...

  • Page 6
    ... ACCOUNTING FIRM ...REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS ...PRINCIPAL STOCKHOLDERS ...EXECUTIVE COMPENSATION ...Compensation Discussion and Analysis ...Compensation Committee Report on Executive Compensation ...Fiscal 2014 Summary Compensation Table ...Fiscal 2014 Grants of Plan...

  • Page 7
    ... provide you with the information you need in a more timely manner, will save us the cost of printing and mailing documents to you, and will help conserve natural resources. In this Proxy Statement: • "Board" and "Board of Directors" refer to the Board of Directors of Electronic Arts Inc. • "EA...

  • Page 8
    ... game console systems, continued growth in mobile gaming and leadership changes within the Company. In the midst of these changes, we were able to deliver both amazing games and services to our consumers and strong financial results to our stockholders. We finished fiscal 2014 in a strong position...

  • Page 9
    ... Vice President, Google Inc. Private Investor Executive Chairman, Electronic Arts Executive Vice President, Chief Financial Officer, Sabre Holding Corporation Former President, Ford Foundation Executive Vice President, The New York Times Company Chief Executive Officer, Electronic Arts 2001 2011...

  • Page 10
    ...OF DIRECTORS." ANNUAL MEETING INFORMATION Thursday, July 31, 2014 2:00 p.m. (Pacific) Voting: Electronic Arts Headquarters Redwood City, CA • Stockholders as of the June 9, 2014 record date are entitled to vote. • You can vote by mail, on the Internet, by phone or in person at the Annual Meeting...

  • Page 11
    ... for use at our 2014 Annual Meeting, which will take place on Thursday, July 31, 2014 at 2:00 p.m. local time, at our corporate headquarters in Redwood City, California. This Proxy Statement describes proposals on which you, as a stockholder, are being asked to vote. It also gives you information on...

  • Page 12
    ... such a statement to the Company's Secretary at our corporate headquarters address listed on the Notice of 2014 Annual Meeting of Stockholders); • Signing another proxy with a later date; • Voting by telephone or on the Internet at any time prior to 11:59 p.m. Eastern Time on July 30, 2014 (your...

  • Page 13
    ... within 90 days from the date of the certification of election results and will publicly disclose its decision promptly thereafter. Shares represented by your proxy will be voted by EA's management "for" the election of the nine nominees recommended by EA's Board of Directors unless you...

  • Page 14
    ...the live audio webcast of the Annual Meeting by going to the Investor Relations section of our website at http://investor.ea.com. An archived copy of the webcast will also be available on our website for one year following the Annual Meeting. Please note that participation in the question and answer...

  • Page 15
    ... Board of Directors on September 15, 2013 in connection with his appointment as our Chief Executive Officer ("CEO"). Required Vote and Board of Directors' Recommendation In accordance with our bylaws, if EA's Corporate Secretary has not received timely and proper notice from a stockholder indicating...

  • Page 16
    ...a board member on numerous companies, both public and private, and is familiar with a full range of corporate and board functions. His many years of experience in helping companies shape and implement strategy provide the Board of Directors with useful perspectives on matters such as risk management...

  • Page 17
    ... President, Business Operations and Chief Financial Officer of Rearden Commerce from April 2011 through May 2012. From 2001 to 2010, Mr. Simonson held a number of executive positions at Nokia Corporation, including Executive Vice President, Head of Mobile Phones and Sourcing, Chief Financial Officer...

  • Page 18
    ..., has served as Executive Vice President of Digital Products and Services of The New York Times Company since March 2013. Prior to this role, Ms. Warren served as General Manager of NYTimes.com from December 2008 to March 2013 and as Chief Advertising Officer of The New York Times from June 2005 to...

  • Page 19
    ...Director is appropriate for the Company. Given his 30 years of experience with the Company, more than 15 of which he served as CEO, Mr. Probst has invaluable knowledge regarding the Company and gaming industry and is uniquely positioned to lead the Board in its review of management's strategic plans...

  • Page 20
    ... and annual cash bonus payments), review and approval of director compensation and other administrative matters. In fiscal 2014, the Compensation Committee held special meetings to consider a variety of items including the terms and conditions of compensation arrangements for executive officers...

  • Page 21
    ...unable to fulfill the responsibilities of the role and also periodically evaluates internal and external CEO candidates for succession planning purposes. The Committee also reviews with management diversity, corporate responsibility and sustainability issues affecting the Company. The Nominating and...

  • Page 22
    ... in writing to EA's Corporate Secretary not less than 120 calendar days prior to the anniversary of the date on which EA's proxy statement was released to stockholders in connection with the previous year's annual meeting (on or about February 13, 2015, for our 2015 Annual Meeting). Recommendations...

  • Page 23
    ...are available without charge by contacting our Investor Relations department at (650) 628-7352. The Board of Directors' Oversight of Risk Issues The full Board of Directors and the Board Committees are responsible for managing different forms of risk. Business risks are reviewed by the full Board of...

  • Page 24
    ... EA stockholders may communicate with the Board of Directors as a whole, with a committee of the Board of Directors, 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...

  • Page 25
    ...determined at the discretion of the Board of Directors. In fiscal 2014, 10,000 RSUs were granted under the Company's 2000 Equity Incentive Plan to each of our nonemployee directors who were re-elected at the 2013 Annual Meeting of Stockholders on July 31, 2013, as well as to Mr. Probst following his...

  • Page 26
    ... Employee Benefit Plans", to the Consolidated Financial Statements in our 2014 Annual Report. Each non-employee director standing for re-election at the 2013 Annual Meeting received an RSU grant of 10,000 shares of EA common stock with a grant date fair value of $261,200 based on a closing price of...

  • Page 27
    ... table presents the number of shares each director received in lieu of cash as a result of his elections during fiscal 2014 and the grant date fair value of the immediately exercised options: Exercise Price ($) Shares Subject to Immediately Exercised Stock Options Grants Grant Date Fair Value...

  • Page 28
    ...the annual financial and strategic objectives of the Company and the creation of long-term stockholder value. We encourage you to read the "Compensation Discussion and Analysis" at pages 30 through 44 for additional details on our executive compensation programs and the fiscal year 2014 compensation...

  • Page 29
    ... review of the Company's financial statements and are not reported under "Audit Fees." These services may include employee benefit plan audits, accounting consultations in connection with transactions, and merger and acquisition due diligence. In fiscal 2013, these fees relate to acquisition-related...

  • Page 30
    ... Public Accountants, and the NASDAQ Stock Market, whether the proposed services are permitted under EA's policies, and whether the proposed services are consistent with the principles of the SEC's auditor independence rules. The Company also annually confirms with each of its directors and executive...

  • Page 31
    ... vote of a majority of the voting shares present at the meeting in person or by proxy and voting for or against the proposal. The Board of Directors recommends a vote FOR the ratification of KPMG LLP as our independent auditors for the fiscal year ending March 31, 2015. Proxy Statement 25

  • Page 32
    ... is to assist 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...

  • Page 33
    ... two years ended March 31, 2014 and the audited consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows of the Company for each of the last three years ended March 31, 2014 be included for filing with the SEC in the Company's 2014 Annual Report. The...

  • Page 34
    ...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. Shares Owned(1) Right to Acquire(2) Percent of Outstanding Shares(3) Stockholder Name Fidelity Management & Research Co.(4) ...The Vanguard Group...

  • Page 35
    ... to the extent of his/its pecuniary interest therein. The address for each of Mr. Hoag, the Management Companies and the TCV Funds is c/o Technology Crossover Ventures, 528 Ramona Street, Palo Alto, CA 94301. Includes 73,238 shares of common stock held by Mr. Probst's grantor's retained annuity...

  • Page 36
    ... Vice President, EA Mobile; • Peter Moore, Executive Vice President, Chief Operating Officer; and • Patrick Söderlund, Executive Vice President, EA Studios. FISCAL 2014 SUMMARY Fiscal 2014 was a year of dramatic changes for the gaming industry and for EA. We saw the launch of Microsoft's Xbox...

  • Page 37
    ... Vice President, EA SPORTS, as our new CEO. Once appointed, Mr. Wilson reorganized the internal divisions of the Company to better align with his vision for the Company's future. As a result, the roles and responsibilities of many of our senior executives, including two NEOs, changed during the year...

  • Page 38
    ...limited to: role within the Company, individual performance, the value of unvested equity, the grant date value of the award, competitive market practices, and internal compensation alignment among our executive officers. The following table shows the Annual Awards granted to our NEOs in fiscal 2014...

  • Page 39
    ... margins and cash provided by operations for the Company; this award was also intended to support the longer term retention of Mr. Jorgensen during a time of leadership and console transition for the Company. These RSUs will vest as to 100% of the shares on the third anniversary of the grant date...

  • Page 40
    ... market data outside of our peer group in connection with determining the equity compensation to be awarded to Mr. Wilson when he assumed the role of CEO, specifically referencing data from other high technology companies within the S&P 500 that reported internal CEO promotions in recent years...

  • Page 41
    ... using publicly available compensation information on our peer group and data from the Radford Global Technology Survey. The analysis included a comparison of the base salary, bonus target, total cash, long-term incentives and total compensation of each of our senior vice-president level positions...

  • Page 42
    ... Equity Award" section above. Mr. Wilson Mr. Wilson performed two roles during fiscal 2014. From August 2011 to September 2013, he served as Executive Vice President, EA SPORTS where he had responsibility for the product development, worldwide product management and marketing for all packaged goods...

  • Page 43
    ... of fiscal 2014 third and fourth quarter non-GAAP financial measures to the most directly comparable GAAP financial measures, refer to the financial tables of the press release contained in the Current Report on Form 8-K that the Company filed on May 6, 2014. Please also refer to the information...

  • Page 44
    ... developing and implementing a plan to improve operating margins and cash provided by operations; his role in reducing the Company's operating expenses in the fiscal year; and managing communications with investors and employees. Equity Awards: In June 2013, Mr. Jorgensen was granted an Annual Award...

  • Page 45
    ... property development, worldwide product management and marketing for major console and PC properties. In September 2013, Mr. Gibeau became Executive Vice President, EA Mobile. In this role Mr. Gibeau leads the EA Mobile organization. Base Salary and Bonus Target: In the first quarter of fiscal 2014...

  • Page 46
    ... his increased responsibilities, which now include development of products and services for both the sports and games genres as Executive Vice President, EA Studios, and to better align his target cash compensation with internal peers. Cash Bonus Awards: Mr. Söderlund's fiscal 2014 cash bonus...

  • Page 47
    ...PRSU Grant date June 2011 June 2012 June 2013 Proxy Statement Performance Period 90 day average stock price (start of performance period) Measurement Period 90 day average stock price (end of measurement period) EA's Total Stockholder Return ("TSR") EA's TSR Percentile vs. NASDAQ 100 Percentage of...

  • Page 48
    ... NEOs are reported in the "All Other Compensation" column of the "Fiscal 2014 Summary Compensation Table" below. Post-Employment Arrangements Change of Control Plan Our executive officers, including our NEOs, are eligible to participate in the Electronic Arts Inc. Key Employee Continuity Plan, which...

  • Page 49
    .... The Electronic Arts Inc. Key Employee Continuity Plan provides for specified levels of cash severance, continued health benefits and accelerated vesting of certain outstanding equity awards in the event of a qualifying termination of employment in connection with a change of control of the Company...

  • Page 50
    ... 2013-2014 Board year. In connection with his appointment as CEO, the Board granted stock options to Mr. Wilson on October 31, 2013. Based on his date of appointment, the Board chose to grant these options after the close of the stock market on the second trading day following the Company's release...

  • Page 51
    ... BLAKE J. JORGENSEN ...2014 666,154 - Executive Vice President, 2013 362,500 350,000 Chief Financial Officer FRANK D. GIBEAU ...2014 722,115 Executive Vice President, 2013 694,923 EA Mobile 2012 624,577 PETER MOORE ...2014 646,154 Executive Vice President, 2013 628,155 Chief Operating Officer 2012...

  • Page 52
    ... Compensation and Employee Benefit Plans", to the Consolidated Financial Statements in our 2014 Annual Report. The PRSUs granted to our NEOs in fiscal 2014 are referred to as "Market-Based Restricted Stock Units" in Note 15. For additional information regarding the specific terms of the RSUs with...

  • Page 53
    ... and thus, was paid in Swedish kronor. The cash amounts reflected in the "Fiscal 2014 Summary Compensation Table" (other than equity awards) were converted to U.S. dollars based on the exchange rate as of the end of each fiscal year. Represents the aggregate grant date fair value of 75,000 RSUs with...

  • Page 54
    ...covering fiscal 2014 through 2016, with one year (fiscal 2014), two year (fiscal 2014 and 2015) and three year (fiscal 2014, 2015 and 2016) TSR measurement periods. The TSR for each measurement period will be calculated using a 90-day trailing average of the closing stock prices of the NASDAQ-100 at...

  • Page 55
    ... used to calculate fair value, see Note 15 "Stock-Based Compensation and Employee Benefit Plans", of the Consolidated Financial Statements in our 2014 Annual Report. For additional information regarding the specific terms of the RSUs with performance-based vesting granted to our NEOs in fiscal 2014...

  • Page 56
    ... pursuant to EA's 2000 Equity Incentive Plan. The market value of the unvested time-based and performance-based RSU awards is determined by multiplying the number of unvested RSUs by $28.53, the closing price of the Company's common stock on March 28, 2014, the last trading day of fiscal 2014. For...

  • Page 57
    ...Employee Benefit Plans", to the Consolidated Financial Statements in our 2014 Annual Report. The number of RSUs that vest will be based on EA's total stockholder return ("TSR") relative to the performance of those companies in the NASDAQ-100 Index on April 1, 2012 (the "Fiscal 2013 NASDAQ-100"). The...

  • Page 58
    ...versus the companies in the Fiscal 2014 NASDAQ-100 in a subsequent measurement period, (i.e. fiscal 2014 through fiscal 2015 or fiscal 2014 through fiscal 2016). Time-based RSUs with one-third of the units vesting one month prior to each of the first three anniversaries of the grant date. Time-based...

  • Page 59
    ... by multiplying the number of RSUs and PRSUs vested by the prior day's closing price of EA common stock on the vest date. (2) (3) POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE OF CONTROL Electronic Arts Key Employee Continuity Plan All employees at the level of Vice President and above are...

  • Page 60
    ... "cause" or for "good reason") in connection with a change of control of the Company. For purposes of the table below, we have assumed a termination date of March 28, 2014, the last business day of fiscal 2014. The closing price of our common stock on March 28, 2014 was $28.53. Cash Severance Award...

  • Page 61
    ...as compared to that of the benchmark NASDAQ-100 Companies, as of March 28, 2014, the PRSUs granted to Messrs Gibeau, Moore and Söderlund in fiscal 2012 would accelerate and vest as to 82% of the target number of shares for each remaining vest date in the performance period, and the PRSUs granted to...

  • Page 62
    ... Stock Purchase Plan. The following table and related footnotes gives aggregate information regarding grants under all of our equity incentive plans as of the end of fiscal 2014, including the 2000 Equity Incentive and 2000 Employee Stock Purchase Plans. Number of Securities Remaining Available for...

  • Page 63
    ... best interests of EA and its stockholders, as determined in good faith. CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS Proxy Statement We enter into indemnification agreements with each of the members of our Board of Directors at the time they join the Board of Directors to indemnify them...

  • Page 64
    ...Company's Corporate Secretary at our principal executive office no later than February 13, 2015. Stockholders who otherwise wish to present a proposal at the 2015 Annual Meeting must deliver written notice of the proposal to our Corporate Secretary at Electronic Arts Inc., 209 Redwood Shores Parkway...

  • Page 65
    ... net revenue (online-enabled games) ...Non-GAAP mobile and handheld digital net revenue ...GAAP gross profit ...Acquisition-related expenses ...Change in deferred net revenue (online-enabled games) ...Stock-based compensation ...Non-GAAP gross profit ...GAAP operating income ...Acquisition-related...

  • Page 66
    ... over the term of the notes. Electronic Arts' management excludes the effect of this amortization in its non-GAAP financial measures. Change in Deferred Net Revenue (Online-enabled Games). The majority of our software games can be connected to the Internet whereby a consumer may be able to download...

  • Page 67
    ..., the Company recognizes the revenue from the sale of these online-enabled games on a straight-line basis over the estimated offering period. Electronic Arts' management excludes the impact of the change in deferred net revenue related to online-enabled games in its non-GAAP financial measures for...

  • Page 68
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 69
    2014 Annual Report on Form 10-K Annual Report

  • Page 70
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 71
    ... No.) 209 Redwood Shores Parkway Redwood City, California (Address of principal executive offices) 94065 (Zip Code) Registrant's telephone number, including area code: (650) 628-1500 Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, $0.01 par value Name...

  • Page 72
    ELECTRONIC ARTS INC. 2014 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 Mine Safety Disclosures ...PART II Item 5 Market for Registrant's Common Equity, ...

  • Page 73
    ...and 4), personal computers ("PCs"), and mobile phones and tablets. Business Annual Report Our Strategy Leverage Core Intellectual Properties A cornerstone of our strategy is to leverage established intellectual properties (which we call "brands") to create year-round gaming experiences on multiple...

  • Page 74
    ... and platform business models. • New Consoles. We are highly focused on developing games and services for Xbox One and PlayStation 4, which were each released in November 2013. The rates at which consumers purchase these new consoles and our ability to release commercially successful products on...

  • Page 75
    ...-platform, live service organized around one of their favorite brands. Global Operations We were initially incorporated in California in 1982. In September 1991, we were reincorporated under the laws of Delaware. Our principal executive offices are located at 209 Redwood Shores Parkway, Redwood City...

  • Page 76
    ... is responsible for the distribution, sales, and marketing of our products, including strategic planning, operations, and manufacturing functions. The organization also manages our global media advertising sales business and customer support teams. Mobile game publishing is overseen by our EA Mobile...

  • Page 77
    ... agreements typically limit our use of the licensed rights in products for specific time periods. In addition, our products that play on game consoles and mobile devices, or other proprietary platforms may include technology that is owned by the device manufacturer or platform operator and licensed...

  • Page 78
    ... each unit manufactured. With respect to digitally-delivered products, other online content and services sold by the console manufacturers, the console manufacturers pay us either a wholesale price or a percentage royalty on the revenue they derive from their sales. The platform license agreements...

  • Page 79
    ...our business becomes increasingly digital, more of our products and services are purchased from a digital retailer and delivered via a network connection. Our digital retail outlets include Origin (our direct-to-consumer platform), mobile application storefronts, the digital marketplaces operated by...

  • Page 80
    ... Chief Operating Officer in August 2011. Prior to that time, he served as President, EA SPORTS, from September 2007. From January 2003 until he joined EA, Mr. Moore was with Microsoft where he served as head of Xbox marketing and was later named as Corporate Vice President, Interactive Entertainment...

  • Page 81
    ... President, EA Mobile in September 2013. Prior to that time, he served as President, EA Labels from August 2011. From June 2007 until August 2011, he served as President, EA Games Label. From September 2005 until June 2007, he was Executive Vice President, General Manager, North America Publishing...

  • Page 82
    ... and means each major title has greater associated risk. The underperformance of a single major title may have a large adverse impact on our financial results. Our operating results will be adversely affected if we do not consistently meet our product development schedules or if key events or sports...

  • Page 83
    ... develop and market products and services for the Xbox 360 and PlayStation 3, while also developing and marketing products and services for the Xbox One and PlayStation 4. We do not control the unit volumes of the new generation console systems made available for sale or the rates at which consumers...

  • Page 84
    ... our networks, computer systems and supporting infrastructure, many of which may be difficult to detect. Operational failures or successful cyber attacks could lead to consumers being unable to use our products and services or other negative effects upon the products, services and user experience we...

  • Page 85
    ... anticipated revenues. Our key business partners also face these same risks with respect to consumer information they collect and data security breaches with respect to such information could cause reputational harm to them and negatively impact our ability to offer our products and services through...

  • Page 86
    ... and online advertising, print advertising, retail merchandising, website development, event sponsorship and direct communications with our consumers. Our ability to sell our products and services is dependent in part upon the success of these programs. If the marketing for our products and services...

  • Page 87
    ... (1) acquisitions of companies, businesses, intellectual properties, and other assets, (2) minority investments in strategic partners, and (3) investments in new interactive entertainment businesses (e.g., online and mobile publishing platforms) as part of our long-term business strategy. These...

  • Page 88
    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 and preferences, ...

  • Page 89
    ... the unauthorized copying of our products more difficult, as do the providers of the video game systems, personal computers, mobile phones and tablets on which our games are played, these efforts may not be successful in controlling the piracy of our products. While legal protections exist to combat...

  • Page 90
    ... in applicable tax laws, or changes in the valuation allowance for deferred tax assets, as well as other factors. We are also required to pay taxes other than income taxes, such as payroll, sales, use, value-added, net worth, property and goods and services taxes, in both the United States and...

  • Page 91
    ... revenue related to our products and services. We recognize all of the revenue from bundled sales (i.e., online-enabled games that include updates on a when-andif-available basis or a matchmaking service) on a deferred basis over an estimated offering period. The Financial Accounting Standards Board...

  • Page 92
    ...-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. In addition to the properties we own...

  • Page 93
    ...of the Securities Exchange Act of 1934, allege, among other things, that the Company and certain of its officers issued materially false and misleading statements regarding the rollout of the Company's Battlefield 4 game. The lawsuits seek unspecified damages, which have not been quantified. We have...

  • Page 94
    ...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 "EA". The following table sets forth the quarterly high and low closing sales price per share of our common stock from April 1, 2012...

  • Page 95
    ...150 Annual Report $100 $50 $0 3/09 3/10 3/11 3/12 3/13 3/14 Electronic Arts, Inc. NASDAQ Composite S&P 500 RDG Technology Composite * Based on $100 invested on March 31, 2009 in stock or index, including reinvestment of dividends. March 31, 2011 2012 2009 2010 2013 2014 Electronic Arts Inc...

  • Page 96
    ... Data ELECTRONIC ARTS INC. AND SUBSIDIARIES SELECTED FIVE-YEAR CONSOLIDATED FINANCIAL DATA (In millions, except per share data) STATEMENTS OF OPERATIONS DATA 2014 Year Ended March 31, 2013 2012 2011 2010 Net revenue ...Cost of revenue ...Gross profit ...Total operating expenses ...Operating income...

  • Page 97
    ...turn our intellectual properties into year-round businesses available on a range of platforms. Our products and services may be purchased through physical and online retailers, platform providers such as console manufacturers and mobile carriers via digital downloads, as well as directly through our...

  • Page 98
    ... and advertising products and services from $1,159 million in fiscal year 2012 to $1,440 million in fiscal year 2013. During fiscal year 2014, digital revenue was $1,833 million and we expect this portion of our business to continue to grow in fiscal 2015 and beyond. Mobile and PC Free-to-Play Games...

  • Page 99
    ...packaged goods) or delivered digitally via the Internet (e.g., full-game downloads, micro-transactions), and licensing of game software to third-parties. Product revenue also includes revenue from mobile full game downloads that do not require our hosting support, and sales of tangible products such...

  • Page 100
    ... to use only units that have registered online, whether to weight the number of days for each game, whether to weight the days based on the units sold of each game, determining the period of time between the date of sale to reseller and the date of sale to the consumer and assessing online gameplay...

  • Page 101
    ... of fees and refunds to the consumer The storefront and Terms of Sale that govern the consumer's purchase of the product or service The party that sets the pricing with the consumer and has credit risk Annual Report Based on the evaluation of the above indicators, we have determined that we are...

  • Page 102
    ... experience, age of current accounts receivable balances, changes in financial condition or payment terms of our customers. Significant management judgment is required to estimate our allowance for doubtful accounts in any accounting period. The amount and timing of our bad debt expense and cash...

  • Page 103
    ... value-based tests to the individual assets and liabilities within each reporting unit. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating...

  • Page 104
    ... titles, (3) the number of software units we expect to sell, which can be impacted by a number of variables, including product quality, number of platforms we release on, the timing of the title's release and competition, and (4) future pricing. Determining the effective royalty rate for our titles...

  • Page 105
    ... video games sold as packaged goods or as digital downloads and designed for play on video game consoles (such as the PlayStation 3 and 4 from Sony and Xbox 360 and One from Microsoft) and PCs, (2) video games for mobile phones and tablets , (3) separate software products and content and online game...

  • Page 106
    ... revenue from The Sims Social, which shut down in June 2013, Star Wars: The Old Republic, as well as Pogo-branded online game services. Net Revenue by Geography We attribute net revenue from external customers to individual countries based on the location of the legal entity that sells the products...

  • Page 107
    ... year 2014. Annual Report Supplemental Net Revenue by Revenue Composition As we continue to evolve our business and more of our products are delivered to consumers digitally via the Internet, we place a greater emphasis and focus on assessing our business through a review of net revenue by revenue...

  • Page 108
    ... advertising (digital) revenue") includes sales of software distributed through direct download via the Internet. This includes internally-developed and copublished game software distributed through our direct-to-consumer platform Origin, distributed wirelessly through mobile carriers, or licensed...

  • Page 109
    ... fiscal year 2013, primarily due to the increase in our estimated offering period, which commenced during the second quarter of fiscal 2014 for physical games sold through retail from six to nine months. Non-GAAP Financial Measures Net Revenue before Revenue Deferral is a non-GAAP financial measure...

  • Page 110
    ... costs related to our website advertising business, and (5) platform processing fees from operating our website-based games on third party platforms. Cost of service and other revenue increased by $12 million, or 4.0 percent in fiscal year 2014, as compared to fiscal year 2013. The increase was...

  • Page 111
    ... for professional services such as legal and accounting, and allowances for doubtful accounts. General and administrative expenses for fiscal years 2014 and 2013 were as follows (in millions): March 31, 2014 % of Net Revenue March 31, 2013 % of Net Revenue $ Change % Change Annual Report $410 11...

  • Page 112
    .... Our effective income tax rates for fiscal year 2015 and future periods will depend on a variety of factors, including changes in the deferred tax valuation allowance, changes in our business such as acquisitions and intercompany transactions, changes in our international structure, changes in the...

  • Page 113
    ... related to Electronic Arts (Canada), will continue to be indefinitely reinvested going forward. If these earnings were to be repatriated in the future, they may be subject to additional U.S. income taxes. Comparison of Fiscal Year 2013 to Fiscal Year 2012 Annual Report Net Revenue For fiscal year...

  • Page 114
    ... This increase was partially offset by a $65 million decrease from Pogo-branded online game services and certain franchises including Warhammer and Ultima Online. Net Revenue by Geography Year Ended March 31, (In millions) North America ...International ...Total net revenue ... 2013 2012 $ Change...

  • Page 115
    ... sales of our internally-developed and co-published game software distributed through direct download through the Internet, including through our direct-to-consumer platform Origin, or distributed wirelessly through mobile carriers. This includes our full-game downloads, mobile and tablet revenue...

  • Page 116
    ... Cost of service and other revenue increased by $79 million, or 35.3 percent in fiscal year 2013, as compared to fiscal year 2012. The increase was primarily due to increased server and support costs due to the release of more online-connected and subscription-based titles and related content during...

  • Page 117
    ...of 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 website content, software licenses and maintenance, network infrastructure and management...

  • Page 118
    ...March 31, 2012 % of Net Revenue $ Change % Change $39 1% $- -% $39 -% During fiscal year 2013, we sold our investment in Neowiz for proceeds of $72 million, and realized a gain of $39 million, net of costs to sell. We did not recognize any impairment charges or losses on our marketable equity...

  • Page 119
    ... cash balances. This was partially offset by a $31 million increase in foreign currency transaction gains as compared to the same period in the prior year. Income Taxes Provision for (benefit from) income taxes for fiscal years 2013 and 2012 was as follows (in millions): March 31, 2013 Effective Tax...

  • Page 120
    ... tax credit carryforward rather than as a liability when the uncertain tax position would reduce the loss or tax credit carryforward under the tax law. The disclosure requirements will be effective for annual periods (and interim periods within those annual periods) beginning after December 15, 2013...

  • Page 121
    ...marketable equity securities during fiscal year 2014 as compared to fiscal year 2013, (3) a $58 million decrease in proceeds received from maturities and sales of short-term investments during fiscal year 2014 as compared to fiscal year 2013, and (4) a $31 million release of acquisition-related cash...

  • Page 122
    ..., which closed in August 2011. Prior to April 15, 2016, the Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the...

  • Page 123
    ...prior to the expiration date of the Warrants. We received proceeds of $65 million from the sale of the Warrants. See Note 12 to the Consolidated Financial Statements for additional information related to our 0.75% Convertible Senior Notes due 2016. Credit Facility On August 30, 2012, we entered into...

  • Page 124
    ... authorization approved by our Board of Directors in July 2012. Under this program, we may purchase stock in the open market or through privately-negotiated transactions in accordance with applicable securities laws, including pursuant to prearranged stock trading plans. The timing and actual amount...

  • Page 125
    ... 31, 2014, and the effect we expect them to have on our liquidity and cash flow in future periods (in millions): Total 2015 Fiscal Year Ending March 31, 2016 2017 2018 2019 Thereafter Unrecognized commitments Developer/licensor commitments ...$1,301 Marketing commitments ...254 Operating leases...

  • Page 126
    ... reported, net of tax, as a component of accumulated other comprehensive income in stockholders' equity. The gross amount of the effective portion of gains or losses resulting from changes in the fair value of these hedges is subsequently reclassified into net revenue or research and development...

  • Page 127
    .... During the fiscal years ended March 31, 2014, 2013 and 2012, we reclassified an immaterial amount of the ineffective portion of gains or losses resulting from changes in fair value into interest and other income (expense), net. Balance Sheet Hedging Activities. We use foreign currency forward...

  • Page 128
    ...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 as a separate component of accumulated other comprehensive income, net of tax, in stockholders' equity...

  • Page 129
    ... BPS) (50 BPS) Fair Value as of March 31, 2014 Valuation of Securities Given an Interest Rate Increase of X Basis Points 50 BPS 100 BPS 150 BPS (In millions) Corporate bonds ...U.S. Treasury securities ...Commercial paper ...U.S. agency securities ...Total short-term investments ... $285 116 110 81...

  • Page 130
    ... Consolidated Financial Statements of Electronic Arts Inc. and Subsidiaries: Consolidated Balance Sheets as of March 31, 2014 and 2013 ...Consolidated Statements of Operations for the Years Ended March 31, 2014, 2013 and 2012 ...Consolidated Statements of Comprehensive Income (Loss) for the Years...

  • Page 131
    ELECTRONIC ARTS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except par value data) ASSETS Current assets: Cash and cash equivalents ...Short-term investments ...Receivables, net of allowances of $186 and $200, respectively ...Inventories ...Deferred income taxes, net ...Other ...

  • Page 132
    ... CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) Net revenue: Product ...Service and other ...Total net revenue ...Cost of revenue: Product ...Service and other ...Total cost of revenue ...Gross profit ...Operating expenses: Research and development ...Marketing and sales...

  • Page 133
    ......Total other comprehensive income (loss), net of tax ...Total comprehensive income (loss) ... 2014 2013 2012 $ 8 - - (19) 9 (22) (32) $ 98 (46) (41) (2) 4 (19) (104) $ 76 (40) (2) (4) 4 (4) (46) $(24) $ (6) $ 30 Annual Report See accompanying Notes to Consolidated Financial Statements. 63

  • Page 134
    ... Comprehensive Stockholders' Shares Amount Capital Deficit) Income Equity Balances as of March 31, 2011 ...332,564 Total comprehensive income ...- Issuance of common stock ...7,850 Equity issued in connection with acquisition ...4,356 Equity value of convertible note issuance, net . . - Purchase of...

  • Page 135
    ...during the year for income taxes, net ...$ Cash paid during the year for interest ...$ Non-cash investing activities: Change in unrealized net gains on available-for-sale securities ...$ Equity issued in connection with acquisition ...$ See accompanying Notes to Consolidated Financial Statements. 65...

  • Page 136
    ...turn our intellectual properties into year-round businesses available on a range of platforms. Our products and services may be purchased through physical and online retailers, platform providers such as console manufacturers and mobile carriers via digital downloads, as well as directly through our...

  • Page 137
    ... requires management judgment based on the specific facts and circumstances of each security. The ultimate value realized on these securities is subject to market price volatility until they are sold. Our short-term investments are evaluated for impairment quarterly. We consider various factors in...

  • Page 138
    ... value-based tests to the individual assets and liabilities within each reporting unit. Reporting units are determined by the components of operating segments that constitute a business for which (1) discrete financial information is available, (2) segment management regularly reviews the operating...

  • Page 139
    ... service obligation. Annual Report • Online-Enabled Games The majority of our software games can be connected to the Internet whereby a consumer may be able to download unspecified content or updates on a when-and-if-available basis ("unspecified updates") for use with the original game...

  • Page 140
    ... responsible for the billing, collection of fees and refunds to the consumer • The storefront and Terms of Sale that govern the consumer's purchase of the product or service • The party that sets the pricing with the consumer and has credit risk Based on the evaluation of the above indicators...

  • Page 141
    ..., 2014 (the fiscal year in which the PlayStation 4 and Xbox One were released), 55 percent of our net revenue was for products and services on Sony's PlayStation 3 and 4 and Microsoft's Xbox 360 and One consoles (combined across all four platforms). In the fiscal years ended March 31, 2013 and 2012...

  • Page 142
    ...the related revenue is recognized. Vendor reimbursements of advertising costs of $66 million, $45 million, and $39 million reduced marketing and sales expense for the fiscal years ended March 31, 2014, 2013 and 2012, respectively. For the fiscal years ended March 31, 2014, 2013 and 2012, advertising...

  • Page 143
    ... year 2016. We do not expect the adoption to have a material impact on our Consolidated Financial Statements. In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 220): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit...

  • Page 144
    ...): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Significant Identical Other Significant Financial Observable Unobservable As of Inputs Inputs March 31, Instruments 2014 (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Money market funds...

  • Page 145
    ..., 2013 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Significant Identical Other Significant Financial Observable Unobservable Instruments Inputs Inputs (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Money market funds ...Available-for-sale...

  • Page 146
    ...change in fair value is reported as acquisition-related contingent consideration in our Consolidated Statements of Operations. (d) During fiscal year 2014, we made payments totaling $4 million to settle certain performance milestones achieved in connection with one of our acquisitions. During fiscal...

  • Page 147
    ... investment for a period of time sufficient to allow for any anticipated recovery in market value, and any contractual terms impacting the prepayment or settlement process. Based on our review, we did not consider these investments to be other-than-temporarily impaired as of March 31, 2014 and 2013...

  • Page 148
    ... reported, net of tax, as a component of accumulated other comprehensive income in stockholders' equity. The gross amount of the effective portion of gains or losses resulting from changes in the fair value of these hedges is subsequently reclassified into net revenue or research and development...

  • Page 149
    ...Annual Report The effect of foreign currency forward contracts not designated as hedging instruments in our Consolidated Statements of Operations for the fiscal years ended March 31, 2014, 2013 and 2012, was as follows (in millions): Amount of Gain (Loss) Recognized in Income on Derivative Year...

  • Page 150
    ... INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the fiscal years ended March 31, 2014, 2013 and 2012 are as follows (in millions): Unrealized Net Unrealized Net Gains (Losses) on Gains (Losses) on Foreign Currency Available-for-Sale...

  • Page 151
    .... PopCap is a leading developer of games for mobile phones, tablets, PCs, and social network sites. This acquisition strengthened our participation in casual gaming and contributed to the growth of our digital product offerings. The following table summarizes the acquisition date fair value of the...

  • Page 152
    ...-out. The final allocation of the purchase price was completed during the third quarter of fiscal year 2012. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition (in millions): Current assets ...Property and equipment, net ...Goodwill...

  • Page 153
    ... annual assessment for impairment by applying a fair value-based test. Our goodwill is fully attributed to our operating segment. See Note 18 for additional information regarding our segment information. Acquisition-related intangibles, consisted of the following (in millions): As of March 31, 2014...

  • Page 154
    ...31, 2014 2013 2012 Cost of product ...Cost of service and other ...Operating expenses ...Total ... $33 27 16 $76 $ 55 38 30 $123 $35 17 43 $95 Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms...

  • Page 155
    .... Fiscal 2011 Restructuring In fiscal year 2011, we announced a plan focused on the restructuring of certain licensing and developer agreements in an effort to improve the long-term profitability of our packaged goods business. Under this plan, we amended certain licensing and developer agreements...

  • Page 156
    ... of a product are generally charged to research and development expense. Impairments or losses determined post-launch are charged to cost of revenue. We evaluate long-lived royalty-based assets for impairment generally using undiscounted cash flows when impairment indicators exist. Unrecognized...

  • Page 157
    ... of subscription revenue, deferrals related to our Switzerland distribution business, advertising revenue, licensing arrangements and other revenue for which revenue recognition criteria has not been met. Deferred Net Revenue (Online-Enabled Games) Deferred net revenue (online-enabled games) was...

  • Page 158
    ...-month period for digitally-distributed games. However, we expense the cost of revenue related to these transactions during the period in which the product is delivered (rather than on a deferred basis). (11) INCOME TAXES The components of our income before provision for (benefit from) income taxes...

  • Page 159
    ...: Year Ended March 31, 2014 2013 2012 Statutory federal tax expense 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 tax expense...

  • Page 160
    ... our tax returns are recognized in income tax expense in our Consolidated Statements of Operations. The combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current other liabilities was approximately $16 million as of March 31, 2014...

  • Page 161
    ... subsidiaries file tax returns in various foreign jurisdictions, including Canada, France, Germany, Switzerland and the United Kingdom. During the fourth quarter of the fiscal year ended March 31, 2014 we reached a final settlement with the Internal Revenue Service ("IRS") for the fiscal years 2006...

  • Page 162
    ... the last reported sale price of our common stock multiplied by the conversion rate on each trading day; or (3) specified corporate transactions, including a change in control, occur. On or after April 15, 2016, a holder may convert any of its Notes at any time prior to the close of business on the...

  • Page 163
    ...years term of the credit facility. The following table summarizes our interest expense recognized for fiscal years 2014, 2013, and 2012 that is included in interest and other income (expense), net on our Consolidated Statements of Operations (in millions): Year Ended March 31, 2014 2013 2012 Annual...

  • Page 164
    ... of Hasbro's board game intellectual properties); Disney Interactive (Star Wars); and Fox Digital Entertainment, Inc. (The Simpsons). These developer and content license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the...

  • Page 165
    ...publicity rights in EA's collegiate video games. We have not yet responded to the NCAA's complaint. On December 17, 2013, a purported shareholder class action lawsuit was filed in the United States District Court for the Northern District of California against the Company and certain of its officers...

  • Page 166
    ...quoted market price of our common stock on the date of grant. Performance-based restricted stock units include grants made (1) to certain members of executive management primarily granted in fiscal year 2009 and (2) in connection with certain acquisitions. Market-Based Restricted Stock Units. Market...

  • Page 167
    ...-based restricted stock units, market-based restricted stock units, and the ESPP included in our Consolidated Statements of Operations (in millions): Year Ended March 31, 2014 2013 2012 Annual Report Cost of revenue ...Research and development ...Marketing and sales ...General and administrative...

  • Page 168
    ...the fair market value on the date of grant. 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...

  • Page 169
    ... vesting after 11, 23 and 35 months or; • One-year vesting with 100% cliff vesting at the end of one year. Each restricted stock right granted reduces the number of shares available for grant by 1.43 shares under our Equity Plan. The following table summarizes our restricted stock rights activity...

  • Page 170
    ...of the target number of stock units based on our total stockholder return ("TSR") relative to the performance of companies in the NASDAQ-100 Index for each measurement period, generally over a three year period. We present shares granted at 100 percent of target of the number of stock units that may...

  • Page 171
    ... on the date of commencement of the offering or on the last day of each six-month purchase period. During fiscal year 2014, we issued approximately 2 million shares under the ESPP with exercise prices for purchase rights ranging from $11.33 to $22.64. During fiscal years 2014, 2013, and 2012, the...

  • Page 172
    ... authorization approved by our Board of Directors in July 2012. Under this program, we may purchase stock in the open market or through privately-negotiated transactions in accordance with applicable securities laws, including pursuant to prearranged stock trading plans. The timing and actual amount...

  • Page 173
    .... Our new Chief Executive Officer subsequently made a number of changes to our internal organizational structure and the manner in which our operations are managed. In addition, we redefined our definition of segment profit for management reporting. Our CODM currently reviews total company operating...

  • Page 174
    ... may not be indicative of the company's core business, operating results or future outlook. Our CODM reviews assets on a consolidated basis and not on a segment basis. Information about our total net revenue by revenue composition for the fiscal years ended March 31, 2014, 2013 and 2012 is presented...

  • Page 175
    ...of acquisition-related contingent consideration, both of which are pre-tax amounts. Our common stock is traded on the NASDAQ Global Select Market under the symbol "EA". The prices for the common stock in the table above represent the high and low closing sales prices as reported on the NASDAQ Global...

  • Page 176
    ... of Electronic Arts Inc. and subsidiaries (the Company) as of March 29, 2014 and March 30, 2013, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for each of the years in the three-year period ended March 29, 2014. In connection...

  • Page 177
    ...Accounting Oversight Board (United States), the consolidated balance sheets of Electronic Arts Inc. and subsidiaries as of March 29, 2014 and March 30, 2013, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity, and cash flows for each of the years...

  • Page 178
    ... 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 appropriate to allow timely decisions regarding the required disclosure. Management's Report on Internal Control...

  • Page 179
    ... registered public accounting firm, has issued an auditors' report on the effectiveness of our internal control over financial reporting. That report appears on page 107. Changes in Internal Control over Financial Reporting There has been no change in our internal control over financial reporting...

  • Page 180
    ... to be included in the Proxy Statement under the headings "Director Independence," "Board of Directors, Board Meetings and Committees" and "Certain Relationships and Related Person Transactions." Item 14: Principal Accounting Fees and Services The information required by Item 14 is incorporated...

  • Page 181
    .... ELECTRONIC ARTS INC. By: /s/ Andrew Wilson Andrew Wilson Chief Executive Officer Date: May 21, 2014 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 Registrant and in the capacities indicated and...

  • Page 182
    ELECTRONIC ARTS INC. AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Years Ended March 31, 2014, 2013 and 2012 (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 ...

  • Page 183
    ...-Based Restricted Stock Unit Agreement EA Bonus Plan Fiscal Year 2014 Addendum 2000 Equity Incentive Plan, as amended, and related documents 2000 Employee Stock Purchase Plan, as amended Offer Letter for Employment at Electronic Arts Inc. to Andrew Wilson, dated September 15, 2013 Offer Letter for...

  • Page 184
    ... Inc., Electronic Arts C.V. and Microsoft Licensing, GP Durango Publisher License Agreement, dated June 29, 2012, by and among Electronic Arts Inc., EA International (Studio & Publishing) Ltd., Microsoft Licensing, GP and Microsoft Corporation Form of Call Option Agreement dated as of July 14, 2011...

  • Page 185
    ...Agreement, dated August 30, 2012, by and among Electronic Arts Inc., the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent. Subsidiaries of the Registrant Consent of KPMG LLP, Independent Registered Public Accounting Firm Certification of Chief Executive...

  • Page 186
    [THIS PAGE INTENTIONALLY LEFT BLANK]

  • Page 187

  • Page 188
    Electronic Arts Inc. 209 Redwood Shores Parkway Redwood City, CA 94065 (650) 628-1500 www.ea.com Investor Relations (650) 628-7352 http://investor.ea.com