Accounting For Share-Based Compensation

6 Months Ended

Sep. 30, 2011

Accounting For Share-Based Compensation [Abstract]

ACCOUNTING FOR SHARE-BASED COMPENSATION

NOTE O — 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						Six Months
	Ended September 30,						Ended September 30,
	2011			2010			2011			2010
				(in millions)
Costs of licensing and maintenance	$	1		$	1		$	2		$	2
Cost of professional services		1			1			2			2
Selling and marketing		6			8			16			15
General and administrative		4			6			12			10
Product development and enhancements		4			5			9			11
Share-based compensation expense before tax		16			21			41			40
Income tax benefit		(6	)		(7	)		(14	)		(13	)
Net share-based compensation expense	$	10		$	14		$	27		$	27

The following table summarizes information about unrecognized share-based compensation costs at September 30, 2011:

			Weighted
	Unrecognized		Average Period
	Compensation		Expected to be
	Costs		Recognized
	(in millions)		(in years)
Stock option awards	$	5		2.3
Restricted stock units		18		2.2
Restricted stock awards		75		2.1
Performance share units		31		2.8
Total unrecognized share-based compensation costs	$	129		2.3

There were no capitalized share-based compensation costs for the three and six months ended September 30, 2011 or 2010.

Under the Company’s long-term incentive plans, 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 six months ended September 30, 2011 and 2010, the Company issued options for approximately 0.6 million shares and 1.2 million shares, respectively. The weighted average fair values and assumptions used for the options granted were as follows:

	Six Months
	Ended September 30,
	2011			2010
Weighted average fair value	$	5.99		$	5.55
Dividend yield		0.91	%		0.83	%
Expected volatility factor(1)		33	%		34	%
Risk-free interest rate(2)		1.7	%		1.8	%
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 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 and six months ended September 30, 2011 and 2010:

	Three Months						Six Months
	Ended September 30,						Ended September 30,
	2011			2010			2011		2010
				(shares in millions)
RSUs
Shares		—			—	(1)		0.7		0.5
Weighted Avg. Grant Date Fair Value (2)		—		$	18.08		$	24.08	$	21.23
RSAs
Shares		—	(1)		0.1			3.6		4.7
Weighted Avg. Grant Date Fair Value (3)	$	22.47		$	18.66		$	24.65	$	21.39

(1)	Less than 0.1 million.
(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.
(3)	The fair value is based on the quoted market value of the Company’s common stock on the grant date.

Employee Stock Purchase Plan

At the Company’s August 3, 2011 Annual Meeting of Stockholders, the Company’s 2012 Employee Stock Purchase Plan (the ESPP) was approved. The ESPP offer period is semi-annual and allows participants to purchase the Company’s common stock at 95% of the closing price of the stock on the last day of the plan period. A total of 30,000,000 shares may be issued under the ESPP. Shares will not be issued until the end of the first offer period, which occurs at the end of the first quarter of fiscal year 2013.