Computer Associates 2009 Annual Report Download - page 104

A roll-forward of the Company’s reserves for all federal, state and foreign tax jurisdictions is as follows:
(IN MILLIONS) 2009 2008
MARCH 31
Balance, beginning of year $ 211 $ 238
FIN 48 adoption adjustment to retained earnings —(10)
Adjusted balance, beginning of year 211 228
Additions for tax positions related to the current year 26 19
Additions for tax positions from prior years 82 27
Reductions for tax positions from prior years (4) (32)
Settlement payments (54) (27)
Statute of limitations expiration (4) (4)
Translation and other (10) —
Balance, end of year $ 247 $ 211
Note 10 — Stock Plans
Share-based incentive awards are provided to employees under the terms of the Company’s equity compensation plans
(the Plans). The Plans are administered by the Compensation and Human Resources Committee of the Board of
Directors (the Committee). Awards under the Plans may include at-the-money stock options, premium-priced stock
options, restricted stock (RSAs), restricted stock units (RSUs), performance share units (PSUs) or any combination
thereof. The non-employee members of the Company’s Board of Directors receive deferred stock units under separate
director compensation plans. The Company typically settles awards under employee and non-employee director
compensation plans with stock held in treasury.
All Plans, with the exception of acquired companies’ stock plans, have been approved by the Company’s shareholders.
Descriptions of the Plans are as follows:
The Company’s 1991 Stock Incentive Plan (the 1991 Plan) provided that stock appreciation rights and/or options, both
qualified and non-statutory, to purchase up to 67.5 million shares of common stock of the Company could be granted to
employees (including officers of the Company). As of March 31, 2009, options covering approximately 70.9 million
shares have been granted, including option shares issued that were previously terminated due to employee forfeitures.
As of March 31, 2009, all of the options outstanding under the 1991 Plan, which cover approximately 3.5 million shares,
were exercisable with exercise prices ranging from $27.00 — $74.69 per share.
The 1993 Stock Option Plan for Non-Employee Directors (the 1993 Plan) provided for non-statutory options to
purchase up to a total of 337,500 shares of common stock of the Company to be available for grant to each member of
the Board of Directors who is not an employee of the Company. Pursuant to the 1993 Plan, the exercise price was the
fair market value of the Company’s stock on the date of grant. All options expire 10 years from the date of grant unless
otherwise terminated. As of March 31, 2009, options covering 222,750 shares have been granted under this plan. As of
March 31, 2009, all of the options outstanding under the 1993 Plan, which cover 13,500 shares, were exercisable with
exercise prices ranging from $32.38 — $51.44 per share.
The 1996 Deferred Stock Plan for Non-Employee Directors (the 1996 Plan) provided for each director to receive annual
director fees in the form of deferred shares. As of March 31, 2009, approximately 7,600 deferred shares were
outstanding under the 1996 Plan.
The 2001 Stock Option Plan (the 2001 Plan) provided that non-statutory and incentive stock options to purchase up to
7.5 million shares of common stock of the Company could be granted to select employees and consultants. As of
March 31, 2009, options covering approximately 6.5 million shares have been granted. As of March 31, 2009, all of the
options outstanding under the 2001 Plan, which cover approximately 1.6 million shares, were exercisable with an
exercise price of $21.89 per share.
The 2002 Incentive Plan (the 2002 Plan) as amended and restated effective April 27, 2007 provides that annual
performance bonuses, long-term performance bonuses, both qualified and non-statutory stock options, RSAs, RSUs and
other equity-based awards to purchase up to 45 million shares of common stock of the Company may be granted to
94