Computer Associates 2009 Annual Report Download - page 45

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Cash Generated by Operating Activities
(IN MILLIONS) 2009 2008 2007 2009/2008 2008/2007
YEAR ENDED MARCH 31, $ CHANGE $ CHANGE
Cash collections from billings
1
$ 4,735 $ 4,960 $ 4,860 $ (225) $ 100
Vendor disbursements and payroll
1
(3,112) (3,324) (3,400) 212 76
Income tax payments (351) (374) (296) 23 (78)
Other disbursements, net
2
(60) (159) (96) 99 (63)
Cash generated by operating activities $ 1,212 $ 1,103 $ 1,068 $ 109 $ 35
1 Amounts include VAT and sales taxes.
2 Amounts include interest, restructuring and miscellaneous receipts and disbursements.
Fiscal 2009 Compared with Fiscal 2008
Operating Activities:
Cash generated by continuing operating activities for fiscal 2009 was $1,212 million, representing an increase of
$109 million compared with fiscal 2008. The increase was primarily due to a reduction of $212 million in vendor
disbursements and payroll due to increased operating efficiencies and $78 million received from settlements of
derivative contracts primarily resulting from the strengthening of the U.S. dollar against the euro. The amounts received
from the settlements of derivative contracts were mostly offset by the reduced value in dollars of net cash received due
to foreign exchange movements. These increases were partially offset by a $225 million decrease in cash collections
from billings, mostly due to a $115 million decrease in single installment payments.
Investing Activities:
Cash used in investing activities for fiscal 2009 was $284 million compared with $219 million for fiscal 2008. Increases
in cash paid for acquisitions, net of cash acquired, and capitalized software development costs of $49 million and
$17 million, respectively, were partially offset by reduced purchases of property and equipment of $34 million and a
$27 million reduction due to proceeds from a sale-leaseback transaction that were realized in fiscal 2008 that did not
recur in fiscal 2009.
Financing Activities:
Cash used in financing activities for fiscal 2009 was $759 million compared with $572 million in fiscal 2008. The
increase in cash used in financing activities was primarily due to the partial repayment of $324 million principal amount
of our 4.750% Senior Notes due 2009 during the second half of fiscal 2009. In addition, during the first quarter of fiscal
2009, we repaid the $350 million 6.500% Senior Notes that was due and payable at that time. Refer to “Debt
Arrangements” below for additional information concerning our outstanding debt balances at March 31, 2009. Partially
offsetting the debt repayments in fiscal 2009 was a decrease in common stock repurchases. During fiscal 2009, we
repurchased $4 million of our own common stock, compared with $500 million in fiscal 2008.
Fiscal 2008 Compared with Fiscal 2007
Operating Activities:
Cash generated by continuing operating activities for fiscal 2008 was $1,103 million, representing an increase of
$35 million compared with fiscal 2007. The increase was driven primarily by higher collections of $100 million, including
an increase of $64 million from single installment receipts, and lower disbursements to vendors and lower payroll
related disbursements of $76 million. These amounts were partly offset by higher cash payments for income taxes and
interest payments.
Investing Activities:
Cash used in investing activities for fiscal 2008 was $219 million compared with $202 million for fiscal 2007. Cash paid
for acquisitions, net of cash acquired, was $27 million for fiscal 2008 compared with $212 million for fiscal 2007.
Proceeds from the sale of assets were $46 million for fiscal 2008, compared with $223 million in fiscal 2007, which
included proceeds on the sale-leaseback of our corporate headquarters in Islandia, New York of $201 million. In fiscal
35