Computer Associates 2009 Annual Report Download - page 109

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The following table summarizes the activity of the RSUs under the Plans:
(SHARES IN MILLIONS)
NUMBER
OF SHARES
WEIGHTED AVERAGE
GRANT DATE
FAIR VALUE
Outstanding as of March 31, 2006 1.8 $ 28.53
Restricted units granted 0.3 21.97
Restricted units released (0.5) 27.48
Restricted units cancelled (0.2) 26.38
Outstanding as of March 31, 2007 1.4 26.86
Restricted units granted 0.2 25.23
Restricted units released (0.6) 27.70
Restricted units cancelled (0.1) 25.06
Outstanding as of March 31, 2008 0.9 27.20
Restricted units granted 0.4 24.02
Restricted units released (0.6) 27.91
Restricted units cancelled (0.1) 24.11
Outstanding as of March 31, 2009 0.6 $ 24.99
The total intrinsic value of RSAs and RSUs released during the fiscal years 2009, 2008 and 2007 was approximately
$78 million, $50 million and $25 million, respectively.
Performance Awards
PSUs are target awards issued under the Company’s long-term incentive plan to senior executives where the number of
shares ultimately issued to the employees depends on Company performance measured against specified targets. The
Committee determines the number of shares to grant after either a one-year or three-year performance cycle as
applicable to the 1-year and 3-year PSUs, respectively. The fair value of each award is estimated on the date that the
performance targets are established based on the quoted market value of the Company’s stock adjusted for dividends as
described above for RSUs, and the Company’s estimate of the level of achievement of the performance targets. The
Company recalculates the fair value of issued PSUs each reporting period until they are granted. The adjustment is
based on the quoted market value of the Company’s stock on the reporting period date, adjusted for dividends as
described above for RSUs, and the Company’s comparison of the performance it expects to achieve with the
performance targets. Compensation costs will continue to be amortized over the requisite service period of the awards.
Under the Company’s long-term incentive program for fiscal years 2009, 2008 and 2007 senior executives were issued
PSUs, under which the senior executives are eligible to receive RSAs or RSUs and unrestricted shares at the end of the
performance cycle if certain performance targets are achieved. Additionally, senior executives were granted RSAs or
RSUs for fiscal years 2009 and 2008 and stock options for fiscal year 2007. At the conclusion of each performance
cycle, the applicable number of shares of RSAs, RSUs or unrestricted stock granted may vary based upon the level of
achievement of the performance targets and the approval of the Committee (which has discretion to reduce any award
for any reason). The related compensation cost recognized will be based on the number of shares granted.
RSAs and RSUs relating to 1-year PSUs were granted as follows:
(SHARES IN MILLIONS) SHARES
WEIGHTED AVERAGE
GRANT DATE
FAIR VALUE SHARES
WEIGHTED AVERAGE
GRANT DATE
FAIR VALUE SHARES
WEIGHTED AVERAGE
GRANT DATE
FAIR VALUE
YEAR ENDED MARCH 31, 2009
FOR THE PERFORMANCE CYCLE OF
FISCAL 2008
YEAR ENDED MARCH 31, 2008 FOR
THE PERFORMANCE CYCLE OF
FISCAL 2007
YEAR ENDED MARCH 31, 2007 FOR
THE PERFORMANCE CYCLE OF
FISCAL 2006
RSAs 1.8 $ 26.04 0.9 $ 26.45 0.3 $ 21.88
RSUs —
1
$ 25.96 —
1
$ 26.38 — —
1 Shares granted amount to less than 0.1 million shares.
During the year ended March 31, 2009, approximately 0.4 million unrestricted shares with a weighted average grant
date fair value of $25.80 were granted relating to 3-year PSUs.
The Committee approved also the FY09 Sales Retention Equity Program (the Program) to reward and retain top sales
performers. Awards granted under the Program may not exceed 0.8 million shares or $20 million of grant date value.
Eligible participants may receive RSAs or RSUs at the end of the performance cycle if certain performance targets are
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