| Document and Company Information (USD $) | |||
| In Billions, except Share data | 3 Months Ended
Jun. 30, 2009 | Jul. 17, 2009
| Sep. 30, 2008
|
| Document and Company Information [Abstract] | |||
| Entity Registrant Name | CA, Inc. | ||
| Entity Central Index Key | 0000356028 | ||
| Document Type | 10-Q | ||
| Document Period End Date | 2009-06-30 | ||
| Amendment Flag | false | ||
| Amendment Description | N/A | ||
| Current Fiscal Year End Date | --03-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | 7.7 | ||
| Entity Common Stock, Shares Outstanding | 523,799,655 |
| Condensed Consolidated Balance Sheets (USD $) | ||
| In Millions | Jun. 30, 2009
| Mar. 31, 2009
|
| CURRENT ASSETS | ||
| Cash, cash equivalents and marketable securities | $2,979 | $2,713 |
| Trade and installment accounts receivable, net | 662 | 839 |
| Deferred income taxes - current | 533 | 513 |
| Other current assets | 126 | 104 |
| TOTAL CURRENT ASSETS | 4,300 | 4,169 |
| Installment accounts receivable, due after one year, net | 83 | 128 |
| Property and equipment, net of accumulated depreciation of $1,056 and $1,015, respectively | 466 | 442 |
| Purchased software products, net | 140 | 155 |
| Goodwill | 5,366 | 5,364 |
| Deferred income taxes - noncurrent | 262 | 268 |
| Other noncurrent assets, net | 725 | 715 |
| TOTAL ASSETS | 11,342 | 11,241 |
| CURRENT LIABILITIES | ||
| Current portion of long-term debt and loans payable | 631 | 621 |
| Accounts payable | 62 | 120 |
| Accrued salaries, wages and commissions | 236 | 306 |
| Accrued expenses and other current liabilities | 377 | 362 |
| Deferred revenue (billed or collected) - current | 2,319 | 2,431 |
| Taxes payable, other than income taxes payable - current | 44 | 85 |
| Federal, state and foreign income taxes payable - current | 68 | 84 |
| Deferred income taxes - current | 47 | 40 |
| TOTAL CURRENT LIABILITIES | 3,784 | 4,049 |
| Long-term debt, net of current portion | 1,288 | 1,287 |
| Federal, state and foreign income taxes payable - noncurrent | 296 | 284 |
| Deferred income taxes - noncurrent | 120 | 136 |
| Deferred revenue (billed or collected) - noncurrent | 1,113 | 1,000 |
| Other noncurrent liabilities | 121 | 123 |
| TOTAL LIABILITIES | 6,722 | 6,879 |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock, no par value, 10,000,000 shares authorized; No shares issued and outstanding | 0 | 0 |
| Common stock, $0.10 par value, 1,100,000,000 shares authorized; 589,695,081 and 589,695,081 shares issued; 518,648,257 and 514,292,558 shares outstanding, respectively | 59 | 59 |
| Additional paid-in capital | 3,611 | 3,686 |
| Retained earnings | 2,847 | 2,673 |
| Accumulated other comprehensive loss | (140) | (183) |
| Treasury stock, at cost, 71,046,824 shares and 75,402,523 shares, respectively | (1,757) | (1,873) |
| TOTAL STOCKHOLDERS' EQUITY | 4,620 | 4,362 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $11,342 | $11,241 |
| Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
| In Millions, except Share data | Jun. 30, 2009
| Mar. 31, 2009
|
| Accumulated depreciation | $1,056 | $1,015 |
| Preferred stock, no par value | 0 | 0 |
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
| Preferred stock, shares issued | 0 | 0 |
| Preferred stock, shares outstanding | 0 | 0 |
| Common stock, par value | 0.1 | 0.1 |
| Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 |
| Common stock, shares issued | 589,695,081 | 589,695,081 |
| Common stock, shares outstanding | 518,648,257 | 514,292,558 |
| Treasury stock, shares | 71,046,824 | 75,402,523 |
| Condensed Consolidated Statements of Operations (USD $) | ||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 |
| REVENUE | ||
| Subscription and maintenance revenue | $946 | $965 |
| Professional services | 71 | 93 |
| Software fees and other | 33 | 29 |
| TOTAL REVENUE | 1,050 | 1,087 |
| EXPENSES | ||
| Costs of licensing and maintenance | 66 | 75 |
| Costs of professional services | 67 | 79 |
| Amortization of capitalized software costs | 34 | 31 |
| Selling and marketing | 281 | 297 |
| General and administrative | 110 | 122 |
| Product development and enhancements | 119 | 123 |
| Depreciation and amortization of other intangible assets | 39 | 36 |
| Other expenses, net | 7 | 12 |
| Restructuring and other | 2 | 4 |
| TOTAL EXPENSES BEFORE INTEREST AND INCOME TAXES | 725 | 779 |
| Income before interest and income taxes | 325 | 308 |
| Interest expense, net | 17 | 11 |
| Income before income taxes | 308 | 297 |
| Income tax expense | 113 | 101 |
| NET INCOME | $195 | $196 |
| BASIC INCOME PER COMMON SHARE | 0.37 | 0.38 |
| Basic weighted average shares used in computation | 516 | 512 |
| DILUTED INCOME PER COMMON SHARE | 0.37 | 0.37 |
| Diluted weighted average shares used in computation | 540 | 536 |
| Condensed Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 |
| OPERATING ACTIVITIES: | ||
| Net income | $195 | $196 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 73 | 67 |
| Provision for deferred income taxes | 6 | 62 |
| Share based compensation expense | 33 | 31 |
| Loss on sale and disposal of assets | 1 | 2 |
| Foreign currency transaction (gains) losses - before taxes, net | 0 | 11 |
| Changes in other operating assets and liabilities, net of effect of acquisitions: | ||
| Decrease in trade and current installment accounts receivable, net | 221 | 245 |
| Decrease in noncurrent installment accounts receivable, net | 18 | 38 |
| Decrease in deferred revenue (billed or collected) - current and noncurrent | (94) | (252) |
| Decrease in taxes payable, net | (75) | (151) |
| Decrease in accounts payable, accrued expenses and other | (20) | (42) |
| Decrease in accrued salaries, wages and commissions | (63) | (98) |
| Decrease in accrued restructuring charges | (19) | (37) |
| Changes in other operating assets and liabilities | (14) | (18) |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 262 | 54 |
| INVESTING ACTIVITIES: | ||
| Acquisitions, primarily goodwill, purchased software, and other intangible assets, net of cash acquired | (3) | (20) |
| Purchases of property and equipment | (25) | (23) |
| Capitalized software development costs | (37) | (34) |
| Other investing activities | (2) | 2 |
| NET CASH USED IN INVESTING ACTIVITIES | (67) | (75) |
| FINANCING ACTIVITIES: | ||
| Dividends paid | (21) | (21) |
| Debt repayments, net | (1) | (352) |
| Exercise of common stock options and other | 0 | 5 |
| NET CASH USED IN FINANCING ACTIVITIES | (22) | (368) |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES ON CASH | 173 | (389) |
| Effect of exchange rate changes on cash | 93 | 4 |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 266 | (385) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,712 | 2,795 |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $2,978 | $2,410 |
| Basis of Presentation | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Basis of Presentation [Abstract] | |
| BASIS OF PRESENTATION | NOTE A BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements of CA, Inc. (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP)for interim financial information and with the instructions to Rule10-01 of RegulationS-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the Companys Consolidated Financial Statements and Notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended March31, 2009 (2009 Form 10-K). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on managements knowledge of current events and actions it may undertake in the future, these estimates may ultimately differ from actual results. Operating results for the three-month period ended June30, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ending March31, 2010. Basis of Revenue Recognition: The Company generates revenue from the following primary sources: (1)licensing software products; (2)providing customer technical support (referred to as maintenance); and (3)providing professional services, such as product implementation, consulting and education. Revenue is recorded net of applicable sales taxes. The Company recognizes revenue pursuant to the requirements of Statement of Position (SOP)97-2, Software Revenue Recognition, issued by the American Institute of Certified Public Accountants, as amended by SOP 98-9, Modification of SOP 97-2, Software Revenue Recognition, With Respect to Certain Transactions. In accordance with SOP 97-2, the Company begins to recognize revenue from licensing and maintenance when all of the following criteria are met: (1)the Company has evidence of an arrangement with a customer; (2)the Company delivers the products; (3)license agreement terms are fixed or determinable and free of contingencies or uncertainties that may alter the agreement such that it may not be complete and final; and (4)collection is probable. The Companys software licenses generally do not include acceptance provisions. An acceptance provision allows a customer to test the software for a defined period of time before committing to license the software. If a license agreement includes an acceptance provision, the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance or, if not notified by the customer to cancel the license agreement, the expiration of the acceptance period. Under the Companys subscription model, implemented in October2000, software license agreements typically combine the right to use specified software products, the right to maintenance, and the right to receive uns |
| Comprehensive Income | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Comprehensive Income [Abstract] | |
| COMPREHENSIVE INCOME | NOTE B COMPREHENSIVE INCOME Comprehensive income includes net income, unrealized gains on cash flow hedges and foreign currency translation adjustments. The components of comprehensive income for the three-month periods ended June30, 2009 and 2008 are as follows: Three Months Ended June 30, 2009 2008(1) (in millions) Net income $ 195 $ 196 Net unrealized gain on cash flow hedges, net of tax 1 Foreign currency translation adjustments 41 6 Total comprehensive income $ 237 $ 202 (1) Net income for the three months ended June30, 2008 has been revised to reflect the retrospective adoption of FSP APB 14-1. For further information refer to Note A, Basis of Presentation, in the Notes to these Condensed Consolidated Financial Statements. |
| Income Per Common Share | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Income Per Common Share [Abstract] | |
| INCOME PER COMMON SHARE | NOTE C INCOME PER COMMON SHARE Effective April1, 2009, the Company adopted FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities. FSP EITF 03-6-1 clarifies that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are to be included in the computation of earnings per share under the two-class method described in SFAS No. 128, Earnings Per Share. The retrospective application required the Company to adjust prior period earnings per share amounts. The implementation of FSP EITF 03-6-1 resulted in a reduction of less than $0.01 in Basic earnings per common share as reported in the Condensed Consolidated Statement of Operations for the three months ended June30, 2008. Diluted earnings per common share was not affected. Under the two-class method, net earnings are reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net earnings for the period had been distributed. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards and convertible notes. The following table reconciles earnings per common share under the new methodology for the three months ended June30, 2009 and 2008. Three Months Ended June 30, 2009 2008(1) (in millions, except per share amounts) Basic earnings per common share: Net income $ 195 $ 196 Less: Net income allocable to participating securities (2 ) (2 ) Net income allocable to common shares $ 193 $ 194 Weighted-average common shares outstanding 516 512 Basic earnings per common share $ 0.37 $ 0.38 Diluted earnings per common share: Net income $ 195 $ 196 Add: Interest expense associated with Convertible Senior Notes, net of tax 6 5 Less: Net income allocable to participating securities (2 ) (2 ) Net income allocable to common shares $ 199 $ 199 Weighted average shares outstanding and common share equivalents Weighted average common shares outstanding 516 512 Weighted average shares outstanding upon conversion of Convertible Senior Notes 23 23 Weighted average effect of share-based payment awards 1 1 Denominator in calculation of diluted income per share 540 536 Diluted income per share $ 0.37 $ 0.37 (1) |
| Accounting For Share Based Compensation | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Accounting For Share-Based Compensation [Abstract] | |
| ACCOUNTING FOR SHARE-BASED COMPENSATION | NOTE D ACCOUNTING FOR SHARE-BASED COMPENSATION The Company recognized share-based compensation in the following line items on the Condensed Consolidated Statements of Operations for the periods indicated: Three Months Ended June 30, 2009 2008 (in millions) Costs of licensing and maintenance $ 1 $ 1 Costs of professional services 1 1 Selling and marketing 8 6 General and administrative 12 9 Product development and enhancements 5 8 Share-based compensation expense before tax 27 25 Income tax benefit 9 9 Net share-based compensation expense $ 18 $ 16 There were no capitalized share-based compensation costs at June30, 2009 or 2008. The following table summarizes information about unrecognized share-based compensation costs as of June30, 2009: Weighted Unrecognized Average Period Compensation Expected to be Costs Recognized (in millions) (in years) Stock option awards $ 1 1.0 Restricted stock units 13 1.7 Restricted stock awards 75 1.6 Performance share units 56 1.7 Total unrecognized share-based compensation costs $ 145 1.6 The value of performance share unit (PSU)awards are marked to the closing price of the Companys common stock on the last trading day of the quarter until the PSUs are granted. Compensation costs for the PSUs are amortized over the requisite service periods based on the expected level of achievement of the performance targets. At the conclusion of the performance periods for the PSUs, the applicable number of shares of restricted stock awards (RSAs) or restricted stock units (RSUs) or unrestricted shares granted may vary based upon the level of achievement of the performance targets and the approval of the Companys Compensation and Human Resources Committee (which has discretion to reduce any award for any reason). Awards under the long-term incentive plans were granted in the first quarter of fiscal years 2010 and 2009. The fiscal year 2009 and 2008 1-year PSUs under the long term incentive plans were granted in the first quarter of fiscal years 2010 and 2009, respectively. The table below summarizes the RSAs and RSUs granted under these PSUs: RSAs RSUs Weighted Weighted Average Incentive Plans Performance Shares Average Grant Shares Grant Date Fair for Fiscal Years Period (millions) Date Fair Value (millions) Value 2009 1-year 0.9 $ 18.05 (1) $ 17.96 2008 1-year 1.8 $ 26.04 (1) $ 25.96 (1) Shares granted amounted to less than 0.1million The fiscal year 2007 3-year PSUs under the long-term incentive plan were granted in the first quarter of fiscal year 2010 resulting in approximately 0.4million unrestricted shares with a weighted average grant date fair value of $18.05. Share-based awards g |
| Trade and Installment Accounts Receivable | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Trade and Installment Accounts Receivable [Abstract] | |
| TRADE AND INSTALLMENT ACCOUNTS RECEIVABLE | NOTE E TRADE AND INSTALLMENT ACCOUNTS RECEIVABLE The Company uses installment license agreements as a standard business practice and has a history of successfully collecting substantially all amounts due under the original payment terms without making concessions on payments, software products, maintenance, or professional services. Net trade and installment accounts receivable represent amounts due from the Companys customers. These accounts receivable balances are presented net of allowances for doubtful accounts and unamortized discounts. Unamortized discounts reflect imputed interest for the time value of money for license agreements under the Companys prior business model. These balances do not include unbilled contractual commitments executed under the Companys current business model. The components of Net trade and installment accounts receivable are as follows: June 30, March 31, 2009 2009 (in millions) Current: Accounts receivable billed $ 486 $ 658 Accounts receivable unbilled 82 71 Other receivables 23 34 Unbilled amounts due within the next 12months prior business model 103 108 Less: Allowance for doubtful accounts (25 ) (25 ) Less: Unamortized discounts (7 ) (7 ) Net trade and installment accounts receivable current $ 662 $ 839 Noncurrent: Unbilled amounts due beyond the next 12months prior business model $ 86 $ 132 Less: Unamortized discounts (3 ) (4 ) Net installment accounts receivable noncurrent $ 83 $ 128 |
| Goodwill, Capitalized Software and Other Intangible Assets | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Goodwill, Capitalized Software and Other Intangible Assets [Abstract] | |
| GOODWILL, CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS | NOTE F GOODWILL, CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at June30, 2009 were approximately $6,446million and $5,728million, respectively. These amounts include fully amortized intangible assets of approximately $5,052 million, which is composed of purchased software of approximately $4,547million, internally developed software of approximately $385million and other identified intangible assets subject to amortization of approximately $120million. The remaining gross carrying amounts and accumulated amortization for capitalized software and other intangible assets that are not fully amortized are as follows: As of June 30, 2009 Gross Amortizable Accumulated Net Assets Amortization Assets (in millions) Capitalized software: Purchased $ 321 $ 181 $ 140 Internally developed 509 159 350 Other identified intangible assets subject to amortization 550 336 214 Other identified intangible assets not subject to amortization 14 14 Total $ 1,394 $ 676 $ 718 Internally developed capitalized software costs and other identified intangible asset costs are included in Other noncurrent assets, net on the Condensed Consolidated Balance Sheets. Based on the capitalized software and other intangible assets recorded through June30, 2009, the annual amortization expense over the next five fiscal years is expected to be as follows: Year Ended March 31, 2010 2011 2012 2013 2014 (in millions) Capitalized software: Purchased $ 51 $ 40 $ 28 $ 20 $ 12 Internally developed 87 90 75 61 41 Other identified intangible assets subject to amortization 54 54 32 26 22 Total $ 192 $ 184 $ 135 $ 107 $ 75 The carrying value of goodwill was approximately $5,366million and $5,364million as of June30, 2009 and March31, 2009, respectively. |
| Derivatives and Fair Value Measurements | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Derivatives and Fair Value Measurements [Abstract] | |
| DERIVATIVES AND FAIR VALUE MEASUREMENTS | NOTE G DERIVATIVES AND FAIR VALUE MEASUREMENTS The Company is exposed to certain financial market risks relating to its business operations, including changes in interest rates, which could impact the value of its financial assets and liabilities, and foreign exchange rate risks associated with the Companys foreign operations, which could affect foreign currency denominated monetary assets and liabilities and forecasted transactions. The Company enters into derivative contracts with the intent of mitigating a certain portion of these risks. During the first three months of fiscal years 2010 and 2009, the Company did not designate its foreign exchange derivatives as hedges under SFAS No.133. Accordingly, all foreign exchange derivatives are recognized on the Condensed Consolidated Balance Sheets at fair value and unrealized and realized changes in fair value from these contracts are recorded as Other expenses, net in the Companys Condensed Consolidated Statements of Operations. During fiscal year 2009, the Company entered into interest rate swaps with a total notional value of $250million to hedge a portion of its variable interest rate payments. These derivatives are designated as cash flow hedges under SFAS No.133. The effective portion of these cash flow hedges are recorded as Accumulated other comprehensive loss in the Companys Condensed Consolidated Balance Sheet and reclassified into Interest expense, net, in the Companys Condensed Consolidated Statements of Operations in the same period during which the hedged transaction affects earnings. Any ineffective portions of the cash flow hedges are recorded immediately to Interest expense, net. No ineffectiveness existed at June30, 2009 or at March31, 2009. The following tables present the Companys assets and liabilities that are measured at fair value on a recurring basis at June30 and March31, 2009. Fair Value Measurement at Reporting Date Using (in millions) Quoted Prices in Significant Other Estimated Fair Active Markets for Observable Value at Identical Assets Inputs Description June 30, 2009 (Level 1)(1) (Level 2)(2) Assets: Money market funds $ 1,414 $ 1,414 $ Government securities 650 650 Foreign exchange derivatives (3) 2 2 Total Assets $ 2,066 $ 2,064 $ 2 Liabilities: Foreign exchange derivatives (3) $ 5 $ 5 Interest Rate Derivatives (4) 6 6 Total Liabilities $ 11 $ $ 11 (1) Level 1 is defined as quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities per SFAS 157. (2) Level 2 is defined as quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either direct |
| Restructuring | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Restructuring [Abstract] | |
| RESTRUCTURING | NOTE H RESTRUCTURING Fiscal 2007 Plan: In August2006, the Company announced the Fiscal 2007 plan to significantly improve the Companys expense structure and increase its competitiveness. The Fiscal 2007 plans objectives included a workforce reduction, global facilities consolidations and other cost reduction initiatives. The Company has recognized substantially all of the costs associated with the Fiscal 2007 plan. The Company currently estimates a reduction in workforce of approximately 3,100 individuals under the Fiscal 2007 plan. Most of these actions have been completed; however, final payment of the severance amounts is dependent upon settlement with the works councils in certain international locations. The Company has also recognized substantially all of the facilities abandonment costs associated with the Fiscal 2007 plan. For the three months ended June30, 2009, restructuring activity under the Fiscal 2007 plan was as follows: Facilities Severance Abandonment (in millions) Accrued balance as of March31, 2009 $ 45 $ 71 Payments (14 ) (5 ) Accrued balance as of June30, 2009 $ 31 $ 66 The liability balance for the severance portion of the remaining reserve is included in the Accrued salaries, wages and commissions line on the Condensed Consolidated Balance Sheets. The liability for the facilities abandonment portion of the remaining reserve is included in the Accrued expenses and other current liabilities and Other noncurrent liabilities line items on the Condensed Consolidated Balance Sheets. |
| Income Taxes | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Income Taxes [Abstract] | |
| INCOME TAXES | NOTE I INCOME TAXES Income tax expense for the quarter ended June30, 2009 was $113million compared with a tax expense of $101million for the quarter ended June30, 2008. During the three months ended June30, 2008, the Company settled a U.S. federal income tax audit for the fiscal years 2001 through 2004, which resulted in a decrease in the liability for uncertain tax positions of $55million. As a result of this settlement, during the three months ended June30, 2008, the Company recognized a tax benefit of $11million and a reduction of goodwill by $10million, with the remainder offset against existing tax refund claims and deferred tax assets previously recorded. |
| Commitments and Contingencies | |
| 3 Months Ended
Jun. 30, 2009 USD / shares | |
| Commitments and Contingencies [Abstract] | |
| COMMITMENTS AND CONTINGENCIES | NOTE J COMMITMENTS AND CONTINGENCIES Certain legal proceedings in which the Company is involved are discussed in Note 8, Commitments and Contingencies, in the Notes to the Consolidated Financial Statements included in the Companys 2009 Form 10-K. The following discussion should be read in conjunction with the 2009 Form 10-K. Stockholder ClassAction and Derivative Lawsuits Filed Prior to 2004 Background 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 Vice Chairman and Founder Russell M. Artzt were defendants in one or more stockholder class action lawsuits filed in July1998, February2002, and March2002 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 Companys Common Stock during the period from January20, 1998 until July22, 1998 were harmed by misleading statements, misrepresentations, and omissions regarding the Companys future financial performance. In addition, in May2003, 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 from March30, 1998 through May30, 2003, asserted claims of breach of fiduciary duty under the federal Employee Retirement Income Security Act (ERISA). The named defendants were the Company, the Companys 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 (the Companys former Chief Financial Officer), and Charles P. McWade (the Companys former head of Financial Reporting and Business Development); 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 stockholder 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 March2002 stockholder lawsuits discussed above. This action was commenced in April2002 in the Delaware Chancery Court, and an amended complaint was filed in November2002. The defendants named in the amended complaint were former Company directors The Honorable Alfonse M. DAmato, Shirley Strum Kenny and Messrs.Wang, Kumar, Artzt, Willem de Vogel, Richard Grasso, Roel Pieper, and Lewis S. Ranieri. The Company was named as a nominal defendant. 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 complain |
