Computer Associates 2006 Annual Report Download - page 158

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Note 9 — Stock Plans (Continued)
The following table summarizes the activity of share options under the Plans:
Number
of Shares
Weighted Average
Exercise Price
(shares in millions)
Outstanding at March 31, 2003............................... 48.2 $28.74
Granted .............................................. 6.4 27.68
Exercised ............................................. (3.9) 14.57
Expired or terminated .................................... (6.9) 36.49
Outstanding at March 31, 2004............................... 43.8 $28.63
Granted .............................................. 0.8 28.56
Acquired through acquisition .............................. 1.4 20.91
Exercised ............................................. (3.9) 18.42
Expired or terminated .................................... (8.5) 32.43
Outstanding at March 31, 2005............................... 33.6 $28.50
Granted .............................................. 2.7 28.59
Acquired through acquisition .............................. 2.3 20.62
Exercised ............................................. (5.0) 19.63
Expired or terminated .................................... (2.8) 32.29
Outstanding at March 31, 2006............................... 30.8 $28.96
Number
of Shares
Weighted Average
Exercise Price
(shares in millions)
Options exercisable at:
March 31, 2004 ........................................ 26.0 $30.88
March 31, 2005 ........................................ 25.5 29.81
March 31, 2006 ........................................ 25.8 29.27
The following table summarizes share option information as of March 31, 2006:
Range of
Exercise
Prices Shares
Aggregate
Intrinsic
Value
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price Shares
Aggregate
Intrinsic
Value
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise Price
Options Outstanding Options Exercisable
(shares and aggregate intrinsic value in millions)
$ 1.37 – $20.00 3.5 $47 6.8 years $13.58 3.2 $44 6.7 years $13.54
$20.01 – $30.00 19.1 25 5.3 years 26.23 15.0 24 4.4 years 25.84
$30.01 – $40.00 4.3 — 3.1 years 34.69 3.7 — 2.3 years 35.21
$40.01 – $50.00 1.7 — 1.9 years 47.11 1.7 — 1.9 years 47.11
$50.01 – $74.69 2.2 — 3.3 years 52.04 2.2 — 3.3 years 52.04
30.8 $72 $28.96 25.8 $68 $29.27
The Company estimates the fair value of stock options using the Black-Scholes valuation model, consistent with the
provisions of SFAS No. 123(R), Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 107,
and the Company’s prior period pro forma disclosures of net earnings, including stock-based compensation
(determined under a fair value method as prescribed by SFAS No. 123). Key input assumptions used to estimate the
fair value of stock options include the grant price of the award, the expected option term, volatility of the Company’s
stock, the risk-free interest rate, and the Company’s dividend yield. The Company believes that the valuation
technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair
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