Electronic Arts 2015 Annual Report Download - page 163

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Annual Report
(17) NET INCOME PER SHARE
The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings
per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of
common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from
common shares issuable through stock-based compensation plans including stock options, restricted stock,
restricted stock units, common stock through our ESPP, warrants, and other convertible securities using the
treasury stock method.
Year Ended March 31,
(In millions, except per share amounts) 2015 2014 2013
Net income .............................................................. $875 $ 8 $ 98
Shares used to compute net income per share:
Weighted-average common stock outstanding — basic ......................... 311 308 310
Dilutive potential common shares related to stock award plans and from assumed
exercise of stock options ...............................................983
Dilutive potential common shares related to the Notes .......................... 4 — —
Dilutive potential common shares related to the Warrants ....................... 1 — —
Weighted-average common stock outstanding — diluted ........................ 325 316 313
Net income per share:
Basic ................................................................. $2.81 $0.03 $0.32
Diluted ............................................................... $2.69 $0.03 $0.31
For the fiscal years ended March 31, 2015, 2014 and 2013, stock options to purchase, restricted stock units and
restricted stock to be released in the amount of 3 million shares, 4 million shares and 15 million shares,
respectively, were excluded from the treasury stock method computation of diluted shares as their inclusion
would have had an antidilutive effect.
For the fiscal years ended March 31, 2014 and 2013, potentially dilutive shares of common stock related to our
0.75% Convertible Senior Notes due 2016 issued during the fiscal year 2012, which have a conversion price of
$31.74 per share and the associated Warrants, which have a conversion price of $41.14 per share, were excluded
from the computation of Diluted EPS as their inclusion would have had an antidilutive effect resulting from the
conversion price. The associated Convertible Note Hedge was excluded from the computation of diluted shares
as the impact is always considered antidilutive. See Note 12 for additional information related to our 0.75%
Convertible Senior Notes due 2016 and related Convertible Note Hedge and Warrants.
(18) SEGMENT INFORMATION
Our reporting segment is based upon: our internal organizational structure; the manner in which our operations
are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker (“CODM”),
to evaluate segment performance; the availability of separate financial information; and overall materiality
considerations. Our CODM currently reviews total company operating results to assess overall performance and
allocate resources.
93