Electronic Arts 2016 Annual Report Download - page 169

Annual Report
however, restricted stock award holders are restricted from selling the shares until they vest. Upon granting or
vesting of restricted stock, as the case may be, we will typically withhold shares to satisfy tax withholding
requirements. Restricted stock rights are subject to forfeiture and transfer restrictions. Vesting for restricted stock
rights is based on the holders’ continued employment with us through each applicable vest date. If the vesting
conditions are not met, unvested restricted stock rights will be forfeited.
Generally, our restricted stock rights vest according to one of the following vesting schedules:
• One-year vesting with 100% cliff vesting at the end of one year;
• 35 month vesting with
1
⁄ 3 cliff vesting after 11, 23 and 35 months;
• Three-year vesting with
1
⁄ 3 cliff vesting at the end of each year;
• Three-year vesting with 100% cliff vesting at the end of year three;
• Three-year vesting with
1
⁄ 2 cliff vesting after 18 and 36 months;
• Three-year vesting with
2
⁄ 3 and
1
⁄ 3 vesting cliff vesting after 24 and 36 months;
• Three-year vesting with
1
⁄ 4 ,
7
⁄ 20 ,
1
⁄ 5 , and
1
⁄ 5 of the shares cliff vesting respectively at the end of each of
the first 6 months, 1st,2
nd, and 3rd years;
• 40 month vesting with
1
⁄ 3 cliff vesting after 16, 28, and 40 months;
• 41 month vesting with
1
⁄ 3 cliff vesting after 17, 29 and 41 months;
• Four-year vesting with
1
⁄ 4 cliff vesting at the end of each year;
• 51 month vesting with
1
⁄ 10 ,
3
⁄ 10 ,
3
⁄ 10 ,
3
⁄ 10 of the shares cliff vesting respectively after 15, 27, 39 and 51
months or;
• Five-year vesting with
1
⁄ 9 ,
2
⁄ 9 ,
3
⁄ 9 ,
2
⁄ 9 and
1
⁄ 9 of the shares cliff vesting respectively at the end of each
of the 1st,2
nd,3 rd,4 th, and 5th years.
Each restricted stock right granted reduces the number of shares available for grant by 1.43 shares under our
Equity Plan. The following table summarizes our restricted stock rights activity, excluding market-based
restricted stock unit activity which is discussed below, for the fiscal year ended March 31, 2016:
Restricted
Stock Rights
(in thousands)
Weighted-
Average Grant
Date Fair Values
Balance as of March 31, 2015 ......................................... 10,855 $26.20
Granted ......................................................... 3,035 64.40
Vested .......................................................... (5,809) 22.65
Forfeited or cancelled .............................................. (924) 35.78
Balance as of March 31, 2016 ......................................... 7,157 $44.04
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
2016, 2015, and 2014 were $64.40, $37.22 and $23.01 respectively. The fair values of restricted stock rights that
vested during fiscal years 2016, 2015, and 2014 were $372 million, $209 million and $163 million, respectively.
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 market-based
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 market-based restricted 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 one-year, two-year cumulative and three-year cumulative period. In the table below, we present shares
83