Accounting for Share-Based Compensation (Tables)

3 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company recognized share-based compensation in the following line items in the Condensed Consolidated Statements of Operations for the periods indicated:



	Three Months Ended June 30,
	2017			2016
	(in millions)
Costs of licensing and maintenance	$	2		$	2
Cost of professional services	1			1
Selling and marketing	10			10
General and administrative	12			11
Product development and enhancements	7			5
Share-based compensation expense before tax	$	32		$	29
Income tax benefit	(11		)	(10		)
Net share-based compensation expense	$	21		$	19

Unrecognized share-based compensation costs

The following table summarizes the unrecognized share-based compensation costs at June 30, 2017:



	Unrecognized Share-Based Compensation Costs		Weighted Average Period Expected to be Recognized
	(in millions)		(in years)
Stock option awards	$	7	2.2
Restricted stock units (RSUs)	29		2.2
Restricted stock awards (RSAs)	107		2.2
Performance share units	50		2.7
Total unrecognized share-based compensation costs	$	193	2.3

Weighted average fair values and assumptions used for options granted

The weighted average fair values and assumptions used for the options granted were as follows:



	Three Months Ended June 30,
	2017			2016
Weighted average fair value	$	4.72		$	4.40
Dividend yield	3.17		%	3.58		%
Expected volatility factor ⁽¹⁾	21		%	23		%
Risk-free interest rate ⁽²⁾	2.1		%	1.5		%
Expected life (in years) ⁽³⁾	6.0			6.0


(1)	Expected volatility is measured using historical daily price changes of the Company’s common stock over the respective expected term of the options and the implied volatility derived from the market prices of the Company’s traded options.


(2)	The risk-free rate for periods within the contractual term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant.


(3)	The expected life is the number of years the Company estimates that options will be outstanding prior to exercise. The Company’s computation of expected life was determined based on the simplified method (the average of the vesting period and option term).

Summary of all RSAs and RSUs granted, including grants made pursuant to long-term incentive plans

The table below summarizes all of the RSAs and RSUs granted, including grants made pursuant to the Company’s long-term incentive plans, during the three months ended June 30, 2017 and 2016:



	Three Months Ended June 30,
	2017		2016
	(shares in millions)
RSAs:
Shares	2.9		2.9
Weighted average grant date fair value ⁽¹⁾	$	31.69	$	31.53
RSUs:
Shares	1.1		1.0
Weighted average grant date fair value ⁽²⁾	$	30.35	$	30.10


(1)	The fair value is based on the quoted market value of the Company’s common stock on the grant date.


(2)	The fair value is based on the quoted market value of the Company’s common stock on the grant date reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting of the RSUs, which is calculated using a risk-free interest rate.