Computer Associates 2009 Annual Report Download - page 46

2008, we had net purchases of marketable securities of $3 million compared with proceeds from sales of marketable
securities in fiscal 2007 of $44 million.
Financing Activities:
Cash used in financing activities for fiscal 2008 was $572 million compared with $515 million in fiscal 2007. During
fiscal 2008, we repurchased $500 million of our own common stock, compared with $1,216 million in fiscal 2007.
Partially offsetting the share repurchases in fiscal 2007 was an increase in borrowings of $750 million under our 2004
Revolving Credit Facility. In the second quarter of fiscal 2008, we repaid our 2004 Revolving Credit Facility with proceeds
from our 2008 Revolving Credit Facility. During fiscal 2008, we paid dividends of $82 million, compared with $88 million
in fiscal 2007.
As of March 31, 2009 and 2008, our debt arrangements consisted of the following:
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MARCH 31, 2009 MARCH 31, 2008
Debt Arrangements:
2008 Revolving Credit Facility (expires August 2012) $ 1,000 $ 750 $ 1,000 $ 750
6.500% Senior Notes due April 2008 ——— 350
1.625% Convertible Senior Notes due December 2009 — 460 — 460
4.750% Senior Notes due December 2009 — 176 — 500
6.125% Senior Notes due December 2014 — 500 — 500
International line of credit 25 — 25 —
Capital lease obligations and other —51 —22
Total $ 1,937 $ 2,582
As of March 31, 2009, we had $1,937 million in debt and $2,713 million in cash, cash equivalents and marketable
securities. Our net cash surplus position, cash in excess of debt, was $776 million.
Additionally, we reported restricted cash balances of $56 million and $62 million as of March 31, 2009 and 2008,
respectively, which were included in the “Other noncurrent assets, net” line item.
2008 Revolving Credit Facility
In August 2007, we entered into the 2008 Revolving Credit Facility. The maximum committed amount available under
the 2008 Revolving Credit Facility is $1 billion, exclusive of incremental credit increases of up to an additional
$500 million, which are available subject to certain conditions and the agreement of our lenders. The 2008 Revolving
Credit Facility replaces the prior $1 billion 2004 Revolving Credit Facility, which was due to expire on December 2, 2008.
The 2004 Revolving Credit Facility was terminated effective August 29, 2007, at which time outstanding borrowings of
$750 million were repaid and simultaneously re-borrowed under the 2008 Revolving Credit Facility. The 2008 Revolving
Credit Facility expires on August 29, 2012. As of March 31, 2009 and 2008, $750 million was drawn down under the
2008 Revolving Credit Facility.
Borrowings under the 2008 Revolving Credit Facility bear interest at a rate dependent on our credit ratings at the time of
such borrowings and are calculated according to a base rate or a Eurocurrency rate, as the case may be, plus an
applicable margin and utilization fee. The applicable margin for a base rate borrowing is 0% and, depending on our credit
rating, the applicable margin for a Eurocurrency borrowing ranges from 0.27% to 0.875%. Also, depending on our credit
rating at the time of the borrowing, the utilization fee can range from 0.1% to 0.25% for borrowings over 50% of the
total commitment. At our credit ratings as of March 31, 2009, the applicable margin was 0% for a base rate borrowing
and 0.425% for a Eurocurrency borrowing, and the utilization fee was 0.1%. As of March 31, 2009, the weighted
average interest rate on our outstanding borrowings was 1.95%. In addition, we must pay facility commitment fees
quarterly at rates dependent on our credit ratings. The facility commitment fees can range from 0.08% to 0.375% of the
final allocated amount of each Lender’s full revolving credit commitment (without taking into account any outstanding
borrowings under such commitments). Based on our credit ratings as of March 31, 2009, the facility commitment fee
was 0.125% of the $1 billion committed amount.
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