Computer Associates 2008 Annual Report Download - page 116

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recognized will be based on the number of shares granted. The table below summarizes the current expected level of
achievement and expected number of target shares to be granted:
INCENTIVE PLANS FOR FISCAL YEARS
CURRENT
EXPECTED LEVEL
OF ACHIEVEMENT
TARGET SHARES
(in millions)
CURRENT
EXPECTED LEVEL
OF ACHIEVEMENT
TARGET SHARES
(in millions)
1-YEAR PSUs 3-YEAR PSUs
2008 145% 1.3 100% 0.3
2007 N/A N/A 138% 0.3
2006 N/A N/A 132% 0.3
RSAs and RSUs relating to 1-year PSUs were granted as follows:
SHARES
(in millions)
WEIGHTED AVERAGE
GRANT DATE FAIR
VALUE
SHARES
(in millions)
WEIGHTED AVERAGE
GRANT DATE FAIR
VALUE
YEAR ENDED MARCH 31, 2008
FOR THE PERFORMANCE PERIOD
OF FISCAL 2007
YEAR ENDED MARCH 31, 2007
FOR THE PERFORMANCE PERIOD
OF FISCAL 2006
RSAs 0.9 $ 26.45 0.3 $ 21.88
RSUs —
1
$ 26.38 — —
1 Shares granted amount to less than 0.1 million shares.
Stock Purchase Plan
The Company maintains the Year 2000 Employee Stock Purchase Plan (the Purchase Plan) for all eligible employees. The
Purchase Plan is considered compensatory. Under the terms of the Purchase Plan, employees may elect to withhold
between 1% and 25% of their base pay through regular payroll deductions, subject to Internal Revenue Code limitations.
Shares of the Company’s common stock may be 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 2008, 2007,
and 2006, employees purchased approximately 1.3 million, 1.5 million and 1.1 million shares, respectively, at average
prices of $20.19, $17.47 and $23.31 per share, respectively. As of March 31, 2008, approximately 21.2 million shares
were reserved for future issuance under the purchase plan.
The fair value is estimated on the first date of the offering period using the Black-Scholes option pricing model. The fair
values and the weighted average assumptions for the Purchase Plan offer periods begun in the respective fiscal years are
as follows:
2008 2007 2006
YEAR ENDED MARCH 31,
Weighted average fair value $ 5.57 $ 4.73 $ 5.86
Dividend yield .63% .74% .58%
Expected volatility factor
1
.23 .22 .20
Risk-free interest rate
2
4.2% 5.2% 3.9%
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 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 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 Company may make matching contributions under the CASH plan. The matching
contributions to the CASH Plan totaled approximately $14 million, $13 million and $13 million for the fiscal years ended
March 31, 2008, 2007 and 2006, respectively. In addition, the Company may make discretionary contributions of
Company common stock to the CASH Plan. Charges for the discretionary contributions to the CASH plan totaled
approximately $18 million, $24 million and $0 for the fiscal years ended March 31, 2008, 2007 and 2006, respectively.
106