Computer Associates 2004 Annual Report Download - page 76

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CA 2004 FORM 10-K | PAGE 48
COMPUTER ASSOCIATES INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended March 31,
2004 2003 2002
(in millions)
OPERATING ACTIVITIES:
Net income (loss) ................................................................................................ $ 25 $ (267) $(1,102)
(Income) loss from discontinued operation, net of tax ...................................... (61) (3) 6
Loss from continuing operations ........................................................................ (36) (270) (1,096)
Adjustments to reconcile loss from continuing operations to net cash
provided by continuing operating activities:
Depreciation and amortization ........................................................................ 597 605 1,085
Provision for deferred income taxes .............................................................. (293) (491) (542)
Compensation expense related to stock and international retirement plans 32 27 26
Decrease in noncurrent installment accounts receivable, net........................ 464 643 1,184
Increase (decrease) in deferred subscription
revenue (collected) — noncurrent .................................................................. 92 (47) 82
Decrease in deferred maintenance revenue .................................................. (55) (126) (85)
Foreign currency transaction loss — before taxes ........................................ 41 66 6
Impairment charges ........................................................................................ 4 80 59
(Gain) loss on sale of assets, net .................................................................. (19) 3 —
Charge for losses on investments .................................................................. — 11 14
Gain on early retirement of debt .................................................................... — (3) —
Changes in other operating assets and liabilities, net of effect of acquisitions:
Decrease in trade and installment receivables, net — current ...................... 269 533 88
Increase in deferred subscription revenue (collected) — current .................. 220 301 415
Other changes in operating assets and liabilities .......................................... (36) (22) 8
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES ............ 1,280 1,310 1,244
INVESTING ACTIVITIES:
Acquisitions, primarily purchased software, marketing rights,
and intangibles, net of cash acquired ............................................................ (52) (19) (3)
Settlements of purchase accounting liabilities .................................................. (19) (49) (59)
Purchases of property and equipment................................................................ (30) (28) (25)
Proceeds from sale of property and equipment ................................................ 21 4 —
Proceeds from disposition of businesses .......................................................... 90 20 —
Restricted cash .................................................................................................. (56) — —
Purchases of marketable securities .................................................................... (55) (49) (38)
Sales of marketable securities ............................................................................ 50 41 36
Increase in capitalized development costs ........................................................ (44) (40) (53)
NET CASH USED IN INVESTING ACTIVITIES .............................................. (95) (120) (142)
FINANCING ACTIVITIES:
Dividends paid .................................................................................................... (47) (46) (46)
Purchases of treasury stock................................................................................ (56) (106) (95)
Proceeds from borrowings ................................................................................ — 507 3,387
Repayments of borrowings, net ........................................................................ (826) (1,237) (3,967)
Purchases of call spread options ........................................................................ — (73) (95)
Exercise of common stock options and other .................................................... 77 47 40
NET CASH USED IN FINANCING ACTIVITIES.............................................. (852) (908) (776)
INCREASE IN CASH AND CASH EQUIVALENTS BEFORE EFFECT OF
EXCHANGE RATE CHANGES ON CASH ........................................................ 333 282 326
Effect of exchange rate changes on cash .......................................................... 55 51 (4)
INCREASE IN CASH AND CASH EQUIVALENTS .............................................. 388 333 322
CASH AND CASH EQUIVALENTS — BEGINNING OF YEAR ............................ 1,405 1,072 750
CASH AND CASH EQUIVALENTS — END OF YEAR ........................................ $1,793 $1,405 $ 1,072
See Accompanying Notes to the Consolidated Financial Statements.