Electronic Arts 2015 Annual Report Download - page 119

Annual Report
Financing Arrangement
In July 2011, we issued $632.5 million aggregate principal amount of 0.75% Convertible Senior Notes due 2016
(the “Notes”). We used the net proceeds of the Notes to finance the cash consideration of our acquisition of
PopCap, which closed in August 2011. The Notes will mature on July 15, 2016, unless purchased earlier or
converted in accordance with their terms prior to such date.
During the fiscal quarter ended March 31, 2015, the market value of our common stock exceeded the conversion
trigger price of $41.26 per share for at least 20 trading days of the 30 consecutive trading days preceding quarter
end. As a result, the Notes are convertible at the option of the holder through July 4, 2015. See Note 12 —
Financing Arrangements to the Consolidated Financial Statements as it relates to the Notes, the convertibility of
the Notes, and the Convertible Note Hedge and Warrants, which is incorporated by reference into this Item 7.
Credit Facility
On March 19, 2015, we entered into a new $500 million senior unsecured revolving credit facility with a
syndicate of banks. As of March 31, 2015, no amounts were outstanding under the credit facility. See Note 12 —
Financing Arrangements to the Consolidated Financial Statements in this Form 10-K as it relates to our credit
facility, which is incorporated by reference into this Item 7.
Financial Condition
We believe that our cash, cash equivalents, short-term investments, cash generated from operations and available
financing facilities will be sufficient to meet our operating requirements for at least the next 12 months, including
working capital requirements, capital expenditures, and potentially, future acquisitions, stock repurchases, or
strategic investments. We may choose at any time to raise additional capital to strengthen our financial position,
facilitate expansion, repurchase our stock, pursue strategic acquisitions and investments, and/or to take advantage
of business opportunities as they arise. There can be no assurance, however, that such additional capital will be
available to us on favorable terms, if at all, or that it will not result in substantial dilution to our existing
stockholders.
As of March 31, 2015, approximately $1,156 million of our cash, cash equivalents, and short-term investments
were domiciled in foreign tax jurisdictions. While we have no plans to repatriate these funds to the United States
in the short term, if we choose to do so, we may be required to accrue and pay additional taxes on any portion of
the repatriation where no United States income tax had been previously provided.
In May 2014, a special committee of our Board of Directors, on behalf of the full Board of Directors, authorized
a two-year program to repurchase up to $750 million of our common stock. We repurchased approximately
8 million shares under this program during the fiscal year ended March 31, 2015 for approximately $337 million.
In May 2015, our Board of Directors authorized a new program to repurchase up to $1 billion of our common
stock. This new stock repurchase program, which expires on May 31, 2017, supersedes and replaces the stock
repurchase authorization approved in May 2014. 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
pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several
factors including price, capital availability, regulatory requirements, alternative investment opportunities and
other market conditions. We are not obligated to repurchase any specific number of shares under this program
and it may be modified, suspended or discontinued at any time. We continue to actively repurchase shares.
We have a “shelf” registration statement on Form S-3 on file with the SEC. This shelf registration statement,
which includes a base prospectus, allows us at any time to offer any combination of securities described in the
prospectus in one or more offerings. Unless otherwise specified in a prospectus supplement accompanying the
base prospectus, we would use the net proceeds from the sale of any securities offered pursuant to the shelf
registration statement for general corporate purposes, including for working capital, financing capital
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