Computer Associates 1997 Annual Report Download - page 27

Download and view the complete annual report

Please find page 27 of the 1997 Computer Associates annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 36

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36

Note 3 — Investments
The following is a summary of cash equivalents and marketable securities classified as “available-for-sale” securities as required by
FASB 115:
Gross Estimated
Unrealized Fair
Cost Gains Value
(Dollars in millions)
March 31, 1997:
Debt securities $ 56 $ 56
March 31, 1996:
Debt securities $104 $ 1 $105
The following table reflects pro forma combined results of opera-
tions of the Company, Legent, and Cheyenne on the basis that the
acquisitions had taken place at the beginning of fiscal year 1996.
The after-tax charge of $598 million in fiscal year 1997 related to
the acquisition of Cheyenne was recorded at the beginning of the
fiscal year for each of the periods presented. The after-tax charge
in fiscal year 1996 of $808 million related to the Legent acquisi-
tion is reflected in only the fiscal year 1996 results of operations:
Year Ended March 31,
1997 1996
(Amounts in millions,
except per share amounts)
Revenue $4,175 $3,789
Net income (loss) 322 (775)
Net income (loss) per Common Share $ .85 $ (2.14)
Shares used in computation* 379 362
The following table reflects pro forma combined results of opera-
tions of the Company, Legent, and Cheyenne on the basis that the
acquisitions had taken place at the beginning of fiscal year 1996
and excludes the effect of the after-tax charges of $598 million
for Cheyenne and $808 million for Legent:
Year Ended March 31,
1997 1996
(Amounts in millions,
except per share amounts)
Revenue $4,175 $3,789
Net income 920 631
Net income per Common Share $ 2.43 $ 1.67
Shares used in computation* 379 378
In management’s opinion, the pro forma combined results of
operations are not indicative of the actual results that would have
occurred had the acquisitions been consummated at the begin-
ning of fiscal year 1996 or of future operations of the combined
companies under the ownership and operation of the Company.
*Adjusted for three-for-two stock splits effective August 21, 1995
and June 19, 1996.
For years ended March 31, 1997 and 1996, no debt securities
were deemed to be Cash and Cash Equivalents.
The gross realized gains on sales of available-for-sale securities
totaled $1 million for the years ended March 31, 1997 and 1996.
There were no gross realized losses for the years ended March
31, 1997 and 1996. There were no gross realized gains and a
gross realized loss of $2 million for the year ended March 31,
1995. No unrealized gains or losses existed at March 31, 1997,
and an unrealized gain of $1 million existed at March 31, 1996.
25