Computer Associates 2011 Annual Report Download - page 94

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Awards were granted under the Fiscal Year 2010 and 2009 Sales Retention Equity Programs in the first quarter of fiscal years
2011 and 2010, respectively. These awards cliff vest at the end of a three year period beginning on the first anniversary of
the grant date. The table below summarizes the RSAs and RSUs granted under this program:
INCENTIVE PLANS
FOR FISCAL YEARS
PERFORMANCE
PERIOD
SHARES
(MILLIONS)
WEIGHTED
AVERAGE GRANT
DATE FAIR VALUE
SHARES
(MILLIONS)
WEIGHTED AVERAGE
GRANT DATE
FAIR VALUE
RSAs RSUs
2010 1-year 0.4 $21.47 0.1 $21.36
2009 1-year 0.5 $18.05 0.2 $17.84
Stock Purchase Plan: The Company discontinued the Year 2000 Employee Stock Purchase Plan ( the Purchase Plan) effective
with the close of the purchase period on June 30, 2009. The Purchase Plan was considered compensatory. Under the terms of
the Purchase Plan, employees were able to elect a withholding between 1% and 25% of their base pay through regular
payroll deductions, subject to Internal Revenue Code of 1986 (the Code) limitations. Shares of the Company’s common stock
were purchased at six-month intervals at 85% of the lower of the fair market value of the Company’s common stock on the
first or last day of each six-month period. During fiscal years 2010 and 2009, employees purchased approximately 0.9 million
and 1.5 million shares, respectively, at average prices of $14.82 and $17.56 per share, respectively.
The fair value was estimated on the first date of the offering period using the Black-Scholes option pricing model. No offer
periods commenced in fiscal year 2010. The fair value and the weighted average assumption for the Purchase Plan offer
period commencing in fiscal year 2009 were as follows:
YEAR ENDED MARCH 31,
2009
Weighted average fair value $5.89
Dividend yield 0.78%
Expected volatility factor
(1)
50%
Risk-free interest rate
(2)
1.1%
Expected life (in years)
(3)
0.5
(1) Expected volatility is measured using historical daily price changes of the Company’s stock over the respective term of the offer period and the implied volatility is derived from the market prices
of the Company’s traded options.
(2) The risk-free rate for periods within the contractual term of the offer period is based on the U.S. Treasury yield curve in effect at the beginning of the offer period.
(3) The expected life is the six-month offer period.
Note 16 — income taxes
The amounts of income (loss) from continuing operations before taxes attributable to domestic and foreign operations are as
follows:
(IN MILLIONS) 2011 2010 2009
YEAR ENDED MARCH 31,
Domestic $ 751 $ 699 $ 633
Foreign 458 453 416
$1,209 $1,152 $1,049
82