Computer Associates 2011 Annual Report Download - page 87

plaintiffs’ claims and seek a declaratory judgment that the Company does not infringe the patent-in-suit and that the patent
is invalid. In May 2011, the parties entered into a settlement agreement, the terms of which are confidential but that is not
material to the Company. The Company expects that the case against the Company will be dismissed with prejudice in its
entirety.
In September 2010, a lawsuit captioned Uniloc USA, Inc. et ano. v. National Instruments Corp., et al. was filed in the United
States District Court for the Eastern District of Texas against the Company and 10 other defendants. The complaint alleges,
among other things, that Company technology, including Internet Security Suite Plus 2010, infringes a patent licensed to
plaintiff Uniloc USA, Inc., entitled “System for Software Registration,” U.S. Patent No. 5,490,216. The complaint seeks monetary
damages and interest in an undisclosed amount, a temporary, preliminary and permanent injunction against alleged acts of
infringement, and attorneys’ fees and costs, based upon the plaintiffs’ patent infringement claims. In November 2010, the
Company filed an answer that, among other things, disputes the plaintiffs’ claims and seeks a declaratory judgment that the
Company does not infringe the patent-in-suit and that the patent is invalid. To date, no discovery has commenced in this
action. Although the timing and ultimate outcome cannot be determined, the Company believes that the plaintiffs’ claims are
unfounded and that the Company has meritorious defenses.
Based on its experience, the Company believes that the damages amounts claimed in the aforementioned cases are not a
meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is
not possible to predict the ultimate outcome of the aforementioned cases. Due to the nature and early stage of the Uniloc
matter, the Company is unable to estimate a range of reasonably possible loss for this case.
The Company, various subsidiaries, and certain current and former officers have been named as defendants in various other
lawsuits and claims arising in the normal course of business. The Company believes that it has meritorious defenses in
connection with these other lawsuits and claims, and intends to vigorously contest each of them.
In the opinion of the Company’s management based upon information currently available to the Company, while the outcome
of these other lawsuits and claims is uncertain, the likely results of these other lawsuits and claims against the Company,
either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position,
results of operations, or cash flows, although the effect could be material to the Company’s results of operations or cash
flows for any interim reporting period.
The Company is obligated to indemnify its officers and directors under certain circumstances to the fullest extent permitted
by Delaware law. As a part of that obligation, the Company has advanced and will continue to advance certain attorneys’ fees
and expenses incurred by current and former officers and directors in various lawsuits and investigations.
During fiscal year 2011, the Company received approximately $10 million in settlements of claims associated with previous
stockholder derivative actions following the substitution of the Company as plaintiff in those actions. The settlements received
were recorded in the “Restructuring and other” line of the Consolidated Statements of Operations.
Note 13 — stockholders’ equity
Stock Repurchases: In April 2010, the Company completed the $250 million stock repurchase program authorized by its
Board of Directors on October 29, 2008. On May 12, 2010, the Company’s Board of Directors approved a new stock
repurchase program that authorizes the Company to acquire up to $500 million of its common stock. At March 31, 2011, the
Company remained authorized to purchase up to approximately $282 million of additional shares of common stock under its
current stock repurchase program.
Accumulated other comprehensive loss: The following table summarizes, at each of the balance sheet dates, the components
of the Company’s accumulated other comprehensive loss, net of income taxes:
(IN MILLIONS) 2011 2010 2009
MARCH 31,
Foreign currency translation losses, net $(65) $(123) $(178)
Unrealized losses on cash flow hedges, net of tax —(3) (5)
Total accumulated other comprehensive loss $(65) $(126) $(183)
The amount of loss reclassified from “Accumulated other comprehensive loss” into “Interest expense, net” relating to the sale
of marketable securities was less than $1 million for fiscal years 2011, 2010 and 2009, respectively.
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