Computer Associates 2004 Annual Report Download - page 83

Comprehensive Income (Loss): Comprehensive income (loss) includes net income (loss), foreign currency translation
adjustments and unrealized losses on the Company’s available-for-sale securities. As of March 31, 2004 and 2003, the
accumulated comprehensive loss included a foreign currency translation loss of $111 million and $215 million, respectively,
and an unrealized gain on equity securities, net of tax, of $8 million in fiscal year 2004 and no unrealized gain or loss in
fiscal year 2003. The components of comprehensive income (loss), net of applicable tax, for the fiscal years ended March 31,
2004, 2003, and 2002, are included within the Consolidated Statements of Stockholders’ Equity.
Reclassifications: Certain prior year balances have been reclassified to conform with the current year’s presentation.
Gains and losses attributable to sales of fixed assets, certain foreign currency exchange rate fluctuations, and certain
other infrequent events have been reclassified from “SG&A” to “Other gains/expenses, net” on the Consolidated
Statements of Operations. The components of “Other gains/expenses, net” are as follows:
Year Ended March 31,
2004 2003 2002
(in millions)
(Gains) losses attributable to sales of fixed assets.................................................................................. $(19) $ 3 $—
Expenses attributable to fluctuations in foreign currency exchange rates .............................................. 41 66 6
Expenses attributable to legal settlements.............................................................................................. 26 15 1
Payment to Ranger Governance Ltd. ...................................................................................................... — 10 —
Impairment of capitalized software.......................................................................................................... 4 — 28
$ 52 $94 $35
Approximately $780 million of noncurrent deferred subscription revenue (uncollected) associated with amounts due from
customers within the next 12 months at March 31, 2003, has been reclassified from “unearned revenue — noncurrent”
(a component of net installment accounts receivable — noncurrent) to “unearned revenue — current” (a component
of net trade and installment accounts receivable — current) on the Consolidated Balance Sheet and within Note 5 to
conform to the March 31, 2004, presentation. As a result of this reclassification, the Company reclassified $291 million of a
deferred tax liability at March 31, 2003, from deferred income taxes — current, to deferred income taxes — noncurrent
on the Consolidated Balance Sheet to conform to the March 31, 2004, presentation.
Approximately $72 million of deferred tax assets at March 31, 2003, has been reclassified from “Other noncurrent
assets” to “Deferred income taxes” on the Consolidated Balance Sheet to conform to the March 31, 2004, presentation.
Upon adoption of SFAS No. 142, assembled workforce no longer met the definition of an identifiable intangible asset. As
a result, the noncurrent deferred tax liability of $35 million at March 31, 2003, associated with the assembled workforce
asset was eliminated through a reduction in the carrying amount of goodwill.
Approximately $28 million of taxes payable at March 31, 2003, has been reclassified from “Accrued expenses and other
current liabilities” to “Federal, state, and foreign income taxes payable” on the Consolidated Balance Sheet to conform
to the March 31, 2004, presentation.
Approximately $18 million of a noncurrent reserve at March 31, 2003, has been reclassified from “Other noncurrent
assets” to “Other current liabilities” on the Consolidated Balance Sheets to conform to the March 31, 2004, presentation.
Approximately $16 million of certain unclaimed funds at March 31, 2003, has been reclassified from “Allowance for doubtful
accounts” (a component of net trade and installment accounts receivable — current) to “Accrued expenses and other
current liabilities” on the Consolidated Balance Sheet to conform to the March 31, 2004, presentation. As a result of this
reclassification, the Company reclassified $6 million of a deferred tax liability at March 31, 2003, to conform to the March 31,
2004, presentation.
Approximately $14 million of deferred revenue at March 31, 2003, related to the Company’s indirect business (distributors,
resellers, and VARs) has been reclassified from “Allowance for doubtful accounts” to “Billed accounts receivable” within
Note 5 to conform to the March 31, 2004, presentation. As a result of this reclassification, the Company reclassified
$5 million of a deferred tax liability at March 31, 2003.
Approximately $8 million of certain international pension liabilities at March 31, 2003, has been reclassified from
“Salaries, wages, and commissions” to “Other noncurrent liabilities” on the Consolidated Balance Sheet to conform to
the March 31, 2004, presentation.
CA 2004 FORM 10-K | PAGE 55
Note 1 — Significant Accounting Policies (Continued)