Computer Associates 2009 Annual Report Download - page 106

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The Company recognized share-based compensation in the following line items in the Consolidated Statements of
Operations for the periods indicated:
(IN MILLIONS) 2009 2008 2007
YEAR ENDED MARCH 31,
Cost of professional services $4 $4 $3
Cost of licensing and maintenance 332
Selling and marketing 30 30 27
General and administrative 30 40 36
Product development and enhancements 25 27 25
Share-based compensation expense before tax 92 104 93
Income tax benefit (30) (34) (27)
Net compensation expense $62 $70 $66
The following table summarizes information about unrecognized share-based compensation costs as of March 31, 2009:
UNRECOGNIZED
COMPENSATION
COSTS
(IN MILLIONS)
WEIGHTED AVERAGE PERIOD
EXPECTED TO BE
RECOGNIZED
(IN YEARS)
Stock option awards $ 2 1.0
Restricted stock units 7 1.5
Restricted stock 48 1.4
Performance share units 22 1.7
Stock purchase plan 2 0.3
Total unrecognized share-based compensation costs $ 81 1.5
There were no capitalized share-based compensation costs as of March 31, 2009, 2008 or 2007.
Stock Option Awards
Stock options are awards issued to employees that entitle the holder to purchase shares of the Company’s stock at a
fixed price. Stock options are generally granted at an exercise price equal to or greater than the Company’s stock price
on the date of grant and with a contractual term of ten years. Stock option awards granted after fiscal year 2000
generally vest one-third per year and become fully vested three years from the grant date.
As of March 31, 2009, options outstanding that have vested and are expected to vest are as follows:
NUMBER
OF SHARES
(IN MILLIONS)
WEIGHTED AVERAGE
EXERCISE PRICE
WEIGHTED AVERAGE
REMAINING
CONTRACTUAL LIFE
(IN YEARS)
AGGREGATE INTRINSIC
VALUE
1
(IN MILLIONS)
Vested 13.5 $ 27.46 3.7 $ 5.7
Expected to vest
2
0.6 22.01 7.3 —
3
Total 14.1 $ 27.22 3.9 $ 5.7
1 These amounts represent the difference between the exercise price and $17.61, the closing price of the Company’s common stock on March 31, 2009, the last trading day of the
Company’s fiscal year as reported on the NASDAQ Stock Market for all in the money options.
2 Outstanding options expected to vest are net of estimated future forfeitures.
3 Less than $0.1 million.
96