Electronic Arts 2014 Annual Report Download - page 171

Annual Report
The weighted-average grant date fair values of market-based restricted stock units granted during fiscal years
2014, 2013, and 2012 were $29.52, $12.41, and $33.70 respectively. The total grant date fair value of market-
based restricted stock units that vested during fiscal years 2014 and 2013 were $4.9 million and $3.7 million,
respectively. No market-based restricted stock units vested during fiscal year 2012.
ESPP
Pursuant to our ESPP, eligible employees may authorize payroll deductions of between 2 percent and 10 percent
of their compensation to purchase shares at 85 percent of the lower of the market price of our common stock 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 estimated
weighted-average fair values of purchase rights were $4.67, $4.83 and $4.98, 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. The estimated fair value of the assets was
$9 million and $11 million as of March 31, 2014 and 2013, respectively. As of March 31, 2014 and 2013, $9
million and $12 million were recorded respectively 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, $14 million and $13 million to these plans in fiscal years 2014, 2013, and 2012, respectively.
Stock Repurchase Program
In February 2011, our Board of Directors authorized a program to repurchase up to $600 million of our common
stock over the following 18 months. We completed that program in April 2012. We repurchased approximately
32 million shares in the open market under this program, including pursuant to pre-arranged stock trading plans.
In July 2012, our Board of Directors authorized a program to repurchase up to $500 million of our common
stock. We repurchased approximately 22 million shares in the open market under this program, including
pursuant to pre-arranged stock trading plans.
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