Cash bonus awards for each of our NEOs, with the exception of Mr.Söderlund, were funded under the Executive Bonus Plan. Cash bonuses payable under the Executive Bonus Plan are intended to qualify as tax deductible performance-based compensation under Section162(m) of the Internal Revenue Code. Mr.Söderlunds cash bonus award was funded under the EA Bonus Plan as he resides in Sweden, and his compensation is not subject to Section162(m). At the beginning of each fiscal year, the Compensation Committee selects the Executive Bonus Plan participants and the Section16 officer participants of the EA Bonus Plan, performance period, performance measures, and the formula used to determine maximum bonus funding. In fiscal 2016, all of our NEOs, with the exception of Mr.Söderlund, were selected to participate in this Executive Bonus Plan. The Compensation Committee approved Mr.Söderlunds participation in the EA Bonus Plan. For all NEOs, including Mr.Söderlund, the Compensation Committee selected non-GAAP net income as the performance measure because the level of profitability is a key business focus in any year. The performance period was established as fiscal 2016, and the formula to determine the maximum bonus funding for each NEO was the lower of: (1)300% of their annual base salary or (2)0.5% of our fiscal 2016 non-GAAP net income for each NEO other than our CEO, for whom the maximum was 1% of our fiscal 2016 non-GAAP net income. For fiscal 2016, the Company reported non-GAAP net income of $1.018 billion which resulted in a maximum bonus award funding of 300% of annual base salary for each of our NEOs.(2) The Compensation Committee then exercised its discretion to reduce actual bonus awards for each individual based on the Companys overall financial performance, the terms of the Executive Bonus Plan and EA Bonus Plan, target bonus award and individual performance against strategic and operational objectives, as discussed in Our NEOs Fiscal 2016 Compensation above.