Computer Associates 2009 Annual Report Download - page 108

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1 Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term of the options and the implied volatility derived from the
market prices of the Company’s traded options.
2 The risk-free rate for periods within the contractual term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant.
3 The expected life is the number of years that the Company estimates, based primarily on historical experience, that options will be outstanding prior to exercise.
The following table summarizes information on shares exercised for the periods indicated:
(IN MILLIONS) 2009 2008 2007
YEAR ENDED MARCH 31,
Cash received from options exercised $7 $19 $39
Intrinsic value of options exercised 2717
Tax benefit from options exercised —
1
25
1 Less than $1 million.
Restricted Stock and Restricted Stock Unit Awards
RSAs are stock awards issued to employees that are subject to specified restrictions and a risk of forfeiture. The
restrictions typically lapse over a two or three year period. The fair value of the awards is determined and fixed based on
the quoted market value of the Company’s stock on the grant date.
RSUs are stock awards issued to employees that entitle the holder to receive shares of common stock as the awards
vest, typically over a two or three year period based on continued service. RSUs are not entitled to dividend equivalents.
The fair value of the awards is determined and fixed based on the quoted market value of the Company’s stock on the
grant date reduced by the present value of dividends expected to be paid on the Company’s stock prior to vesting of the
RSUs which is calculated using a risk free interest rate.
The following table summarizes the activity of RSAs under the Plans:
(SHARES IN MILLIONS)
NUMBER
OF SHARES
WEIGHTED AVERAGE
GRANT DATE
FAIR VALUE
Outstanding as of March 31, 2006 0.7 $ 26.51
Restricted stock granted 3.0 22.05
Restricted stock released (0.4) 25.18
Restricted stock cancelled (0.5) 23.47
Outstanding as of March 31, 2007 2.8 22.48
Restricted stock granted 2.6 25.88
Restricted stock released (1.4) 23.55
Restricted stock cancelled (0.3) 23.57
Outstanding as of March 31, 2008 3.7 24.38
Restricted stock granted 3.9 25.16
Restricted stock released (2.6) 24.82
Restricted stock cancelled (0.4) 24.97
Outstanding as of March 31, 2009 4.6 $ 24.73
98