Computer Associates 2009 Annual Report Download - page 49

balances, predominantly due to the weakening of the U.S. dollar against the euro, Australian dollar and Canadian dollar
of 18%, 13%, and 12%, respectively.
Other Matters
As of March 31, 2009, our senior unsecured notes were rated Ba1, BBB, and BB+ by Moody’s Investors Service
(Moody’s), Standard and Poor’s (S&P) and Fitch Ratings (Fitch), respectively. In April 2009, Fitch upgraded our rating to
BBB.
As of March 31, 2009, the outlook on these unsecured notes was stable by all three rating agencies. Peak borrowings
under all debt facilities during fiscal 2009 totaled $2,582 million, with a weighted average interest rate of 4.47%.
Capital resource requirements as of March 31, 2009 and 2008 consisted of lease obligations for office space,
equipment, mortgage and loan obligations, our enterprise resource planning implementation, and amounts due as a
result of product and company acquisitions. Refer to “Contractual Obligations and Commitments” for additional
information.
We expect that existing cash, cash equivalents, marketable securities, the availability of borrowings under existing and
renewable credit lines, and cash expected to be provided from operations will be sufficient to meet our ongoing cash
requirements.
We expect to use existing cash balances and future cash generated from operations to fund capital spending, including
our continued investment in our enterprise resource planning implementation, future acquisitions and financing activities,
such as the repayment of our debt balances either before or as they mature, the payment of dividends, and the
repurchase of shares of common stock in accordance with any plans approved by our Board of Directors.
We conduct an ongoing review of our capital structure and debt obligations as part of our risk management strategy.
The fair value of our current and long term portions of debt, excluding the 2008 Revolving Credit Facility and Capital
lease obligations and other, was approximately $1,130 million and $1,885 million as of March 31, 2009 and 2008,
respectively. The fair value of long-term debt is based on quoted market prices. See also Note 1, “Significant Accounting
Policies.”
Off-Balance Sheet Arrangements
Prior to fiscal 2001, we sold individual accounts receivable to a third party subject to certain recourse provisions. The
outstanding principal balance subject to recourse of these receivables approximated $38 million and $81 million as of
March 31, 2009 and 2008, respectively. As of March 31, 2009, we have established a liability for the fair value of the
recourse provision of $2 million associated with these receivables.
Other than the commitments and recourse provisions described above, we do not have any other off-balance sheet
arrangements with unconsolidated entities or related parties and, accordingly, off-balance sheet risks to our liquidity and
capital resources from unconsolidated entities are limited.
Contractual Obligations and Commitments
We have commitments under certain contractual arrangements to make future payments for goods and services. These
contractual arrangements secure the rights to various assets and services to be used in the future in the normal course
of business. For example, we are contractually committed to make certain minimum lease payments for the use of
property under operating lease agreements. In accordance with current accounting rules, the future rights and related
obligations pertaining to such contractual arrangements are not reported as assets or liabilities on our Consolidated
Balance Sheets. We expect to fund these contractual arrangements with cash generated from operations in the normal
course of business.
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