Computer Associates 2009 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2009 Computer Associates annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Additional information with respect to stock option plan activity is as follows:
(SHARES IN MILLIONS)
NUMBER OF
SHARES
WEIGHTED AVERAGE
EXERCISE PRICE
Outstanding as of March 31, 2006 30.8 $ 28.96
Granted 3.4 23.28
Exercised (2.4) 17.96
Expired or terminated (10.5) 30.04
Outstanding as of March 31, 2007 21.3 $ 28.72
Granted —
1
25.79
Exercised (1.0) 19.17
Expired or terminated (3.5) 36.32
Outstanding as of March 31, 2008 16.8 $ 27.70
Exercised (0.4) 18.85
Expired or terminated (2.3) 32.09
Outstanding as of March 31, 2009 14.1 $ 27.21
1 Less than 0.1 million shares.
(SHARES IN MILLIONS)
NUMBER OF
SHARES
WEIGHTED AVERAGE
EXERCISE PRICE
Options exercisable at:
March 31, 2007 16.9 29.78
March 31, 2008 14.9 28.22
March 31, 2009 13.5 27.46
The following table summarizes stock option information as of March 31, 2009:
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; WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE IN YEARS)
$ 1.37 — $ 20.00 1.4 $ 5.7 4.0 $ 13.61 1.4 $ 5.7 4.0 $ 13.61
$ 20.01 — $ 30.00 10.5 — 4.2 25.52 9.9 — 4.0 25.75
$ 30.01 — $ 40.00 0.8 — 5.4 31.05 0.8 — 5.4 31.05
$ 40.01 — $ 50.00 —
1
— 2.4 47.31 —
1
— 2.4 47.31
$ 50.01 — $ 74.69 1.4 — 0.3 51.98 1.4 — 0.3 51.98
14.1 $ 5.7 3.9 $ 27.21 13.5 $ 5.7 3.7 $ 27.46
1 Less than 0.1 million shares.
The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The
Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are
appropriate in calculating the fair values of the Company’s stock options granted. Estimates of fair value are not
intended to predict actual future events or the value ultimately realized by employees who receive equity awards.
No options were granted in fiscal year 2009. The weighted average estimated values of employee stock option grants, as
well as the weighted average assumptions that were used in calculating such values during fiscal years 2008 and 2007
were based on estimates at the date of grant as follows:
2008 2007
YEAR ENDED MARCH 31,
Weighted average fair value $ 7.84 $ 8.40
Dividend yield .62% .73%
Expected volatility factor
1
.28 .41
Risk-free interest rate
2
5.1% 4.9%
Expected life (in years)
3
4.5 4.5
97