Computer Associates 2007 Annual Report Download - page 137

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The fair value is estimated on the first date of the offering period using the Black-Scholes option pricing model. The weighted
average fair values as well as the weighted average assumptions that were used for the Purchase Plan shares in the respective
periods are as follows:
2007 2006 2005
YEAR ENDED MARCH 31,
Weighted average fair value $ 4.73 $ 5.86 $ 6.52
Dividend yield .74% .58% .27%
Expected volatility factor
1
.22 .20 .25
Risk-free interest rate
2
5.2% 3.9% 2.1%
Expected life (in years)
3
0.5 0.5 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 options traded by third parties.
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 term is the offer period.
Note 11 — Profit-Sharing Plan
The Company maintains a defined contribution plan, the CA, Inc. Savings Harvest Plan (CASH Plan), for the benefit of the
U.S. employees of the Company.The CASH Plan is intended to be a qualified plan under Section 401(a) of the Internal Revenue
Code of 1986 (the Code), and contains a qualified cash or deferred arrangement as described under Section 401(k) of the
Code. Pursuant to the CASH Plan, eligible participants may elect to contribute a percentage of their base compensation. The
matching contributions of CA Stock to the CASH Plan totaled approximately $13 million for the fiscal year ended March 31,
2007, approximately $13 million for the fiscal year ended March 31, 2006 and, excluding the discontinued operations of
ACCPAC, totaled approximately $12 million for the fiscal year ended March 31, 2005. In addition, the Company may make
discretionary contributions to the CASH Plan. Charges for the discretionary contributions to the CASH plan totaled
approximately $24 million, $0 and $15 million (excluding the discontinued operations of ACCPAC) for the fiscal years
ended March 31, 2007, 2006 and 2005, respectively.
The Company made contributions to international retirement plans of $21 million, $20 million, and $23 million in the fiscal
years ended March 31, 2007, 2006, and 2005, respectively.
Note 12 — Rights Plan
Each outstanding share of the Company’s common stock carries a stock purchase right issued under the Company’s
Stockholder Protection Rights Agreement, dated October 16, 2006 (the Rights Agreement). Under certain circumstances,
each right may be exercised to purchase one one-thousandth of a share of Series One Junior Participating Preferred Stock,
Class A, for $100. Under certain circumstances, following (i) the acquisition of 20% or more of the Company’s outstanding
common stock by an Acquiring Person (as defined in the Rights Agreement), or (ii) the commencement of a tender offer or
exchange offer which would result in a person or group owning 20% or more of the Company’s outstanding common stock,
each right, other than rights held by an Acquiring Person, may be exercised to purchase common stock of the Company or a
successor company with a market value of twice the $100 exercise price, provided that the rights will not be triggered by a
Qualifying Offer, as defined in the Rights Agreement, if holders of at least 10 percent of the outstanding shares of the
Company’s common stock request that a special meeting of stockholders be convened for the purpose of exempting such
offer from the Rights Agreement, and thereafter the stockholders vote at such meeting to exempt such Qualifying Offer from
the Rights Agreement. The rights, which are redeemable by the Company at one cent per right, expire November 30, 2009.
Note 13 — Subsequent Events
On May 23, 2007, the Company announced that as part of its previously authorized share repurchase plan of up to $2 billion, it
will repurchase $500 million of its shares under an Accelerated Share Repurchase program (ASR). The Company anticipates
that the ASR will be completed during the first half of fiscal year 2008.
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