Computer Associates 2007 Annual Report Download - page 117

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Future minimum lease payments under non-cancelable operating leases at March 31, 2007, were as follows:
(IN MILLIONS)
2008 $ 163
2009 130
2010 107
2011 82
2012 67
Thereafter 335
Total 884
Less income from sublease (101)
Net minimum operating lease payments $ 783
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 $115 million and $146 million as of March 31, 2007 and 2006, 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 CA 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 by Charles Federman 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.
On August 25, 2003, the Company announced the settlement of all outstanding litigation related to the above-referenced
stockholder and derivative actions as well as the settlement of an additional derivative action filed by Charles Federman that
had been pending in the Federal Court. As part of the class action settlement, which was approved by the Federal Court in
December 2003, the Company agreed to issue a total of up to 5.7 million shares of common stock to the stockholders
105