Accounting For Share-Based Compensation

3 Months Ended

Jun. 30, 2011

Accounting For Share-Based Compensation [Abstract]

ACCOUNTING FOR SHARE-BASED COMPENSATION

NOTE N — 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,
	2011			2010
	(in millions)
Costs of licensing and maintenance	$	1		$	1
Cost of professional services		1			1
Selling and marketing		10			7
General and administrative		8			4
Product development and enhancements		5			6
Share-based compensation expense before tax		25			19
Income tax benefit		(8	)		(6	)
Net share-based compensation expense	$	17		$	13

The following table summarizes information about unrecognized share-based compensation costs as of June 30, 2011:

			Weighted
	Unrecognized		Average Period
	Compensation		Expected to be
	Costs		Recognized
	(in millions)		(in years)
Stock option awards	$	7		2.5
Restricted stock units		20		2.4
Restricted stock awards		91		2.2
Performance share units		44		3.0
Total unrecognized share-based compensation costs	$	162		2.5

There were no capitalized share-based compensation costs at June 30, 2011 or 2010.

The value of performance share unit (PSU) awards is determined using the closing price of the Company’s 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), 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 Company’s Compensation and Human Resources Committee (which may reduce any award for any reason in its discretion).

For the three months ended June 30, 2011 and 2010, the Company issued options for approximately 0.6 million shares and 1.0 million shares, respectively. The weighted average fair values and assumptions used for the options granted were as follows:

	Three Months
	Ended June 30,
	2011			2010
Weighted average fair value	$	6.00		$	5.62
Dividend yield		0.91	%		0.82	%
Expected volatility factor(1)		33	%		34	%
Risk-free interest rate(2)		1.7	%		1.9	%
Expected life (in years)(3)		4.5			4.5

(1)	Expected volatility is measured using historical daily price changes of the Company’s 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 Company’s computation of expected life was determined based on the simplified method (the average of the vesting period and option term), due to changes in the vesting terms, the contractual lives and the population of employees granted options compared with the Company’s historical grants.

The 1-year PSU awards for the fiscal year 2011 and 2010 incentive plan years under the Company’s long-term incentive plans were granted in the first quarter of fiscal years 2012 and 2011, 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	(in millions)		Date Fair Value		(in millions)		Value
2011	1-year		1.1		$ 24.68		0.1		$ 24.48
2010	1-year		2.2		$ 21.47		—(1)		$ 21.38

⁽¹⁾ Less than 0.1 million.

The 3-year PSUs for the fiscal year 2009 and 2008 incentive plan years under the Company’s long-term incentive plans were granted in the first quarter of fiscal years 2012 and 2011, respectively. Unrestricted shares of common stock were issued in settlement immediately upon grant.

		Unrestricted Shares		Weighted Average Grant
Incentive Plans for Fiscal Years	Performance Period	(in millions)		Date Fair Value
2009	3-year		0.2		$ 24.68
2008	3-year		0.3		$ 21.47

Share-based awards were granted under the Company’s fiscal year 2011 and 2010 Sales Retention Equity Programs in the first quarter of fiscal years 2012 and 2011, respectively. These awards cliff vest at the end of a three-year period beginning on the first anniversary of the grant date. The table below summarizes the RSAs and RSUs granted under these programs:

		RSAs				RSUs
				Weighted				Weighted Average
	Performance	Shares		Average Grant		Shares		Grant Date Fair
Incentive Plans for Fiscal Years	Period	(in millions)		Date Fair Value		(in millions)		Value
2011	1-year		0.3		$ 24.68		0.1		$ 24.09
2010	1-year		0.4		$ 21.47		0.1		$ 21.36

The table below summarizes all of the RSUs and RSAs, including grants made pursuant to the long-term incentive plans discussed above, granted during the three months ended June 30, 2011 and 2010:

	Three Months
	Ended June 30,
	2011		2010
	(shares in millions)
RSUs
Shares		0.6		0.5
Weighted Avg. Grant Date Fair Value (1)	$	24.27	$	21.39
RSAs
Shares		3.5		4.6
Weighted Avg. Grant Date Fair Value (2)	$	24.66	$	21.46

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