Electronic Arts 2014 Annual Report Download - page 170

Download and view the complete annual report

Please find page 170 of the 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

The grant date fair value of restricted stock rights is based on the quoted market price of our common stock on
the date of grant. The weighted-average grant date fair values of restricted stock rights granted during fiscal years
2014, 2013, and 2012 were $23.01, $12.85 and $21.38, respectively. The total grant date fair values of restricted
stock rights that vested during fiscal years 2014, 2013, and 2012 were $120 million, $143 million and $165
million, respectively.
Performance-Based Restricted Stock Units
Our performance-based restricted stock units vest contingent upon the achievement of pre-determined
performance-based milestones. If these performance-based milestones are not met, the restricted stock units will
not vest, in which case, any compensation expense we have recognized to date will be reversed.
The following table summarizes our performance-based restricted stock unit activity for the fiscal year ended
March 31, 2014:
Performance-
Based Restricted
Stock Units
(in thousands)
Weighted-
Average Grant
Date Fair Values
Balance as of March 31, 2013 ........................................ 1,324 $51.54
Vested ........................................................ (36) 15.39
Forfeited or cancelled ............................................ (1,234) 48.32
Balance as of March 31, 2014 ........................................ 54 $15.39
The grant date fair value of performance-based restricted stock units is based on the quoted market price of our
common stock on the date of grant. There were no performance-based restricted stock units granted during fiscal
years 2014, 2013, and 2012. The total grant date fair values of performance-based restricted stock units that
vested during fiscal years 2014 and 2013 was less than $1 million. No performance-based restricted stock units
vested during fiscal year 2012.
Market-Based Restricted Stock Units
Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and
service conditions. If these market conditions are not met but service conditions are met, the restricted stock units
will not vest; however, any compensation expense we have recognized to date will not be reversed. The number
of shares of common stock to be received at vesting will range from zero percent to 200 percent 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 potentially vest. The maximum number of
common shares that could vest is approximately 1.1 million for market-based restricted stock units granted in the
fiscal year 2014. As of March 31, 2014, the maximum number of shares that could vest is approximately
2.0 million for market-based restricted stock units outstanding.
The following table summarizes our market-based restricted stock unit activity for the year ended March 31,
2014:
Market-Based
Restricted Stock
Units
(in thousands)
Weighted-
Average Grant
Date Fair Value
Balance as of March 31, 2013 ......................................... 925 $19.16
Granted ........................................................ 555 29.52
Vested ......................................................... (304) 16.01
Vested above target ............................................... 24 10.45
Forfeited or cancelled ............................................. (222) 23.47
Balance as of March 31, 2014 ......................................... 978 $24.83
100