Computer Associates 2006 Annual Report Download - page 144

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Note 7 — Commitments and Contingencies (Continued)
Future minimum lease payments under non-cancelable operating leases at March 31, 2006, were as follows:
(in millions)
2007 ............................................................... $153
2008 ............................................................... 129
2009 ............................................................... 97
2010 ............................................................... 74
2011 ............................................................... 55
Thereafter ........................................................... 197
Total ............................................................. 705
Less income from sublease .............................................. (93)
Net minimum operating lease payments ................................... $612
The Company has commitments to invest approximately $3 million in connection with joint venture agreements.
Prior to fiscal year 2001, the Company sold individual accounts receivable under the prior business model to a third
party subject to certain recourse provisions. The outstanding principal balance of these receivables subject to
recourse approximated $146 million and $183 million as of March 31, 2006 and 2005, respectively.
Stockholder Class Action and Derivative Lawsuits Filed Prior to 2004
The Company, its former Chairman and CEO Charles B. Wang, its former Chairman and CEO Sanjay Kumar, its
former Chief Financial Officer Ira Zar, and its Executive Vice President Russell M. Artzt were defendants in one or
more stockholder class action lawsuits, filed in July 1998, February 2002, and March 2002 in the United States
District Court for the Eastern District of New York (the Federal Court), alleging, among other things, that a class
consisting of all persons who purchased the Company’s common stock during the period from January 20, 1998
until July 22, 1998 were harmed by misleading statements, misrepresentations, and omissions regarding the
Company’s future financial performance. In addition, in May 2003, a class action lawsuit captioned John A.
Ambler v. Computer Associates International, Inc., et al. was filed in the Federal Court. The complaint in this
matter, a purported class action on behalf of the Computer Associates Savings Harvest Plan (the CASH Plan) and
the participants in, and beneficiaries of, the CASH Plan for a class period running from March 30, 1998, through
May 30, 2003, asserted claims of breach of fiduciary duty under the federal Employee Retirement Income Security
Act (ERISA). The named defendants were the Company, the Company’s Board of Directors, the CASH Plan, the
Administrative Committee of the CASH Plan, and the following current or former employees and/or former
directors of the Company: Messrs. Wang; Kumar; Zar; Artzt; Peter A. Schwartz; and Charles P. McWade; and
various unidentified alleged fiduciaries of the CASH Plan. The complaint alleged that the defendants breached their
fiduciary duties by causing the CASH Plan to invest in Company securities and sought damages in an unspecified
amount.
A derivative lawsuit was filed against certain current and former directors of the Company, based on essentially the
same allegations as those contained in the February and March 2002 stockholder lawsuits discussed above. This
action was commenced in April 2002 in Delaware Chancery Court, and an amended complaint was filed in
November 2002. The defendants named in the amended complaint were the Company as a nominal defendant,
current Company directors Mr. Lewis S. Ranieri, and The Honorable Alfonse M. D’Amato, and former Company
directors Ms. Shirley Strum Kenny and Messrs. Wang, Kumar, Artzt, Willem de Vogel, Richard Grasso, and Roel
Pieper. The derivative suit alleged breach of fiduciary duties on the part of all the individual defendants and, as
against the former management director defendants, insider trading on the basis of allegedly misappropriated
confidential, material information. The amended complaint sought an accounting and recovery on behalf of the
Company of an unspecified amount of damages, including recovery of the profits allegedly realized from the sale of
common stock of the Company.
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