Computer Associates 2009 Annual Report Download - page 35

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Total Reven ue Back log — Total revenue backlog represents the aggregate amount we expect to recognize as revenue in the
future as either subscription and maintenance revenue, professional services revenue or software fees and other associated
with contractually committed amounts billed or to be billed as of the balance sheet date. Total revenue backlog is
composed of amounts recognized as liabilities in our Consolidated Balance Sheets as deferred revenue (billed or collected)
as well as unearned amounts associated with balances yet to be billed under subscription and maintenance and software
fees and other agreements. Amounts are classified as current or non-current depending on when they are expected to be
earned and therefore recognized as revenue. The portion of the total revenue backlog that relates to subscription and
maintenance agreements is recognized as revenue evenly on a monthly basis over the duration of the underlying
agreements and is reported as subscription and maintenance revenue in our Consolidated Statements of Operations.
“Deferred revenue (billed or collected)” is comprised of: (i) amounts received from the customer in advance of revenue
recognition, (ii) amounts billed but not collected for which revenue has not yet been earned, and (iii) amounts received
in advance of revenue recognition from financial institutions where we have transferred our interest in committed
installments (referred to as “Financing obligations” in the Notes to the Consolidated Financial Statements).
Results of Operations
The following table presents revenue and expense line items reported in our Consolidated Statements of Operations for
fiscal 2009, 2008 and 2007 and the period-over-period dollar and percentage changes for those line items. Certain prior
year balances have been reclassified to conform to the current period’s presentation. For additional information, see
Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated Financial Statements.
(DOLLARS IN MILLIONS) 2009 2008 2007 2009/2008 2009/2008 2008/2007 2008/2007
YEAR ENDED MARCH 31
DOLLAR
CHANGE
PERCENT
CHANGE
DOLLAR
CHANGE
PERCENT
CHANGE
Revenue:
Subscription and maintenance revenue $ 3,772 $ 3,762 $ 3,458 $ 10 —% $ 304 9%
Professional services 358 383 351 (25) (7) 32 9
Software fees and other 141 132 134 9 7 (2) (1)
Total revenue $ 4,271 $ 4,277 $ 3,943 $ (6) —% $ 334 8%
Expenses:
Costs of licensing and maintenance $ 298 $ 272 $ 250 $ 26 10% $ 22 9%
Cost of professional services 307 368 333 (61) (17) 35 11
Amortization of capitalized software
costs 125 117 354 8 7 (237) (67)
Selling and marketing 1,214 1,327 1,340 (113) (9) (13) (1)
General and administrative 464 530 549 (66) (12) (19) (3)
Product development and
enhancements 486 526 557 (40) (8) (31) (6)
Depreciation and amortization of other
intangible assets 149 156 148 (7) (4) 8 5
Other (gains) expenses, net (1) 6 (13) (7) (117) 19 146
Restructuring and other 102 121 201 (19) (16) (80) (40)
Charge for in-process research and
development costs —— 10 — — (10) (100)
Total expenses before interest and
income taxes 3,144 3,423 3,729 (279) (8) (306) (8)
Income from continuing operations
before interest and income taxes 1,127 854 214 273 32 640 299
Interest expense, net 25 46 60 (21) (46) (14) (23)
Income from continuing operations
before income taxes 1,102 808 154 294 36 654 425
Income tax expense 408 308 33 100 32 275 833
Income from continuing operations $ 694 $ 500 $ 121 $ 194 39% $ 379 313%
Note — amounts may not add to their respective totals due to rounding.
25