Electronic Arts 2014 Annual Report Download - page 8

PROXY STATEMENT SUMMARY AND HIGHLIGHTS
This summary highlights certain information contained in this Proxy Statement. It does not contain all the
information found in this Proxy Statement, and it is qualified in its entirety by the remainder of this Proxy
Statement. You are encouraged to read the entire Proxy Statement carefully before voting.
FINANCIAL AND OPERATING HIGHLIGHTS
Fiscal 2014 was a year of dramatic changes for the gaming industry and for EA. We saw the launch of
Microsoft’s Xbox One and Sony’s PlayStation 4 “next generation” video 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; we were able to exceed our revenue and earnings per share
guidance, drive higher gross margins, lower our operating expenses, double our cash provided by operations, and
invest in new products and services for the future. In fiscal 2014, our share price increased by 61% and, in May
2014, we implemented a new $750 million share repurchase program as part of our commitment to return value
to our shareholders.
• We generated $4.02 billion in non-GAAP net revenue and delivered $1.69 in non-GAAP diluted earnings
per share.
• Our digital non-GAAP net revenue increased to approximately $1.8 billion in fiscal 2014.
• Our mobile business delivered approximately $460 million in non-GAAP net revenue in the fiscal year,
reaching more than 130 million monthly active users.
• Cash provided by operations for the fiscal year was $712 million.
• We improved our non-GAAP operating profit margins to 18%.
On a GAAP basis in fiscal 2014, we achieved net revenue of $3.6 billion, diluted earnings per share of $0.03, and
digital net revenue of $1.8 billion. Our fiscal 2014 GAAP operating income was $33 million, creating GAAP
operating profit margins of 1%. Additionally, our mobile business generated $406 million of GAAP net revenue
in fiscal 2014. Appendix A to this Proxy Statement includes a reconciliation of the non-GAAP financial
measures referenced above to the most directly comparable GAAP financial measures.
EXECUTIVE COMPENSATION HIGHLIGHTS
Advisory Vote
Our Board recommends that stockholders vote to approve, on an advisory basis, the compensation paid to our
Named Executive Officers (“NEOs”), as described in this Proxy Statement.
Compensation Principles and Philosophy
The compensation of our NEOs is guided by a compensation philosophy based on three core principles, with
each of these principles intended to promote a pay-for-performance approach to executive compensation.
• Principle 1 — Cash Compensation: A significant portion of each NEO’s cash compensation should be at
risk based on the annual financial and operational performance of the Company and the NEO’s business
unit, where applicable;
• Principle 2 — Equity Compensation: A significant portion of each NEO’s total compensation should be
provided in the form of long-term equity to enhance alignment between the interests of our NEOs and our
stockholders and to promote long-term retention of a strong leadership team in an industry that is highly
competitive for executive talent; and
• Principle 3 — Target Total Direct Compensation: The target total direct compensation package for each
NEO should be consistent with market practices for executive talent, and reflect each NEO’s individual
experience, responsibilities and performance.
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