Computer Associates 2009 Annual Report Download - page 85

common stock and received approximately 16.9 million shares at inception. Based on the terms of the agreement
between the Company and the third-party financial institution, the Company received approximately 3.0 million
additional shares of its common stock at the conclusion of the program in November 2007 at no additional cost. The
average price paid under the Accelerated Share Repurchase program was $25.13 per share and total shares repurchased
was approximately 19.9 million. The $500 million payment under the Accelerated Share Repurchase program is included
in the cash flows used in financing activities section in the Company’s Consolidated Statement of Cash Flows for the
fiscal year ended March 31, 2008 and is recorded as treasury stock in the Stockholders’ Equity section of the
Consolidated Balance Sheet.
(s) Adoption of new accounting principles: Effective April 1, 2008, the Company adopted the provisions of SFAS No. 157,
“Fair Value Measurements,” as modified by the Financial Accounting Standards Board (FASB) Staff Position (FSP) Financial
Accounting Standard (FAS) 157-1, “Application of FASB Statement No. 157 to FASB Statement No. 13 and Its Related
Interpretive Accounting Pronouncements That Address Leasing Transactions,” and FSP FAS 157-2, “Effective Date of FASB
Statement No. 157.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in GAAP and
expands disclosures about fair value measurements. FSP FAS 157-1 removes leasing from the scope of SFAS No. 157.
FSP FAS 157-2 delays the effective date of SFAS No. 157 from the Company’s fiscal year ending March 31, 2009 to the
Company’s fiscal year ending March 31, 2010 for all non-financial assets and non-financial liabilities, except those that
are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).
The provisions of SFAS No. 157 as amended by FSP FAS 157-1 were applied prospectively to fair value measurements
and disclosures for financial assets and financial liabilities recognized or disclosed at fair value in the financial
statements. The adoption of these Statements did not have an effect on the Company’s consolidated results of
operations or financial position for the fiscal year 2009. While the Company does not expect the adoption of these
Statements to have a material effect on its consolidated results of operations or financial position in subsequent
reporting periods, the Company will continue to monitor any additional implementation guidance that is issued that
addresses the fair value measurements for certain financial assets, and non-financial assets and non-financial liabilities
not disclosed at fair value in the financial statements on at least an annual basis as required by SFAS No. 157.
In accordance with SFAS No. 157 as amended by FSP FAS 157-1, the Company modified its disclosures relating to the
fair value measurements and disclosures for financial assets. Refer to Note 4, “Derivatives and Fair Value
Measurements,” for additional information regarding the assets and liabilities carried at fair value on the Company’s
financial statements.
Effective April 1, 2008, the Company adopted the provisions of SFAS No. 159, “The Fair Value Option for Financial Assets
and Financial Liabilities — Including an amendment of FASB Statement No. 115.” SFAS No. 159 permits entities to elect to
measure many financial instruments and certain other items at fair value. Unrealized gains and losses on items for
which the fair value option has been elected will be recognized in earnings at each subsequent reporting date. As
permitted by SFAS No. 159 implementation options, the Company chose not to elect the fair value option for its
financial assets and liabilities that had not been previously measured at fair value. Therefore, material financial assets
and liabilities, such as the Company’s short- and long-term debt obligations, are reported at their historical carrying
amounts.
Effective April 1, 2008, the Company elected to adopt the provisions of SFAS No. 161, “Disclosures about Derivative
Instruments and Hedging Activities, an Amendment of FASB Statement No. 133.” SFAS No. 161 changes the disclosure
requirements for derivative instruments and hedging activities. Entities are required to provide enhanced disclosures
about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items
are accounted for under SFAS No. 133 and its related interpretations, and (c) how derivative instruments and related
hedged items affect an entity’s financial position, financial performance, and cash flows. The adoption of SFAS No. 161
did not have an effect on the Company’s consolidated results of operations or financial position for the fiscal year 2009.
Refer to Note 4, “Derivatives and Fair Value Measurements,” for additional information regarding the Company’s
derivative activities.
In May 2008, the Financial Accounting Standards Board (FASB) issued Financial Staff Position (FSP) No. APB 14-1,
“Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement).”
FSP No. APB 14-1 requires the issuer of convertible debt instruments with cash settlement features to account
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