Computer Associates 2005 Annual Report Download - page 138

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Table of Contents
Note 9 — Stock Plans (Continued)
March 31,
2005 2004
Previously Previously
Reported(1) Restated(2) Reported(1) Restated(2)
(in millions)
Deferred income tax liability $172 $121 $618 $528
Total liabilities 6,272 6,221 6,018 5,928
Additional paid-in capital 3,970 4,191 3,847 4,073
Retained earnings 2,007 1,837 2,024 1,888
Stockholders’ equity 4,891 4,942 4,742 4,832
Total liabilities and stockholders’ equity $11,163 $11,163 $10,760 $10,760
(1) As previously
reported in the
Company’ s Form
10-K for the fiscal
year ended March,
31, 2005, adjusted
for the restatements
described in
paragraphs “a” and
“b” of Note 12.
(2) Includes minor
corrections made to
the Company’ s
previously reported
pro forma SFAS
No. 123 disclosures
as a result of the
Company’ s
adoption of SFAS
No. 123(R).
The Company recognized stock-based compensation in the following line items on the Consolidated Statements of Operations for the
periods indicated:
Year Ended March 31,
2005 2004 2003
(restated
) (restated) (restated)
(in millions)
Cost of professional services $ 4 $ 5 $ 5
Selling, general, and administrative 53 59 78
Product development and enhancements 31 33 44
Share-based compensation expense before tax 88 97 127
Income tax benefit (15) (17 ) (27)
Net compensation expense $ 73 $ 80 $ 100
Total unrecognized compensation costs related to non-vested awards expected to be recognized over a weighted average period of
1.4 years, amounted to $98 million at March 31, 2005.
There were no capitalized share-based compensation costs at March 31, 2005, 2004 or 2003.
Share-based incentive awards are provided to employees under the terms of the Company’ s plans (the Plans). The Plans are administered
by the Compensation and Human Resource Committee of the Board of Directors (the Committee). Awards under the Plans may include
at-the-money stock options, premium-priced stock options, restricted stock (or units), performance share units, or stock awards, or any
combination thereof. The non-management members of the Company’ s Board of Directors also receive deferred stock units under a
separate director compensation plan (director compensation plan). Descriptions of the Company’ s Plans, all of which have been
approved by the stockholders, are as follows:
The Company’ s 1991 Stock Incentive Plan (the 1991 Plan) provided that stock appreciation rights and/or options, both qualified and