Computer Associates 2009 Annual Report Download - page 84

fiscal year 2009 acquisitions, which was partially offset by approximately $13 million of goodwill adjustments for prior
year acquisitions.
The carrying value of goodwill was approximately $5,351 million and $5,345 million as of March 31, 2008 and
March 31, 2007, respectively. During fiscal year 2008, goodwill increased by approximately $12 million as a result of
fiscal year 2008 acquisitions, which was partially offset by approximately $6 million of goodwill adjustments for prior
year acquisitions.
(p) Income Taxes: SFAS No. 109, “Accounting for Income Taxes,” requires the Company to estimate its actual current tax
liability in each jurisdiction; estimate differences resulting from differing treatment of items for financial statement
purposes versus tax return purposes (known as “temporary differences”), resulting in deferred tax assets and liabilities;
and assess the likelihood that the Company’s deferred tax assets will be recovered from future taxable income. If the
Company believes that recovery is not likely, it establishes a valuation allowance. The factors that the Company
considers in assessing the likelihood of realization of these deferred tax assets include the forecast of future taxable
income and available tax planning strategies that could be implemented to realize the deferred tax assets.
When the Company prepares its consolidated financial statements, the Company estimates its income taxes in each
jurisdiction in which it operates. On April 1, 2007, the Company adopted Financial Accounting Standards Board
Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109”
(FIN 48). Among other things FIN 48 prescribes a “more-likely-than-not” threshold for the recognition and derecognition
of tax positions.
(q) Deferred Revenue (Billed or Collected): The Company accounts for unearned revenue on billed amounts due from
customers on a “gross method” of presentation. Under the gross method, unearned revenue on billed installments
(collected or uncollected) is reported as deferred revenue in the liability section of the balance sheet. The components of
“Deferred revenue (billed or collected) — current” and “Deferred revenue (billed or collected) — noncurrent” as of
March 31, 2009 and March 31, 2008 are as follows:
(IN MILLIONS) 2009 2008
AS OF MARCH 31,
Current:
Subscription and maintenance $ 2,272 $ 2,455
Professional services 150 166
Financing obligations and other 943
Total deferred revenue (billed or collected) — current 2,431 2,664
Noncurrent:
Subscription and maintenance 987 1,001
Professional services 10 22
Financing obligations and other 313
Total deferred revenue (billed or collected) — noncurrent 1,000 1,036
Total deferred revenue (billed or collected) $ 3,431 $ 3,700
Deferred revenue (billed or collected) excludes unrealized revenue from contractual obligations that will be billed by the
Company in future periods.
(r) Stock Repurchases: During the third quarter of fiscal year 2009, the Company paid approximately $4 million to
repurchase approximately 0.3 million of its common shares at an average price of $15.84. The repurchase is included in
“Cash used in financing activities” in the Company’s Consolidated Statement of Cash Flows for fiscal year ended
March 31, 2009. As of March 31, 2009, the Company remained authorized to purchase an aggregate amount of up to
approximately $246 million of additional common shares under the current stock repurchase program that was
approved on October 29, 2008 by the Company’s Board of Directors. The approved stock repurchase program authorizes
the Company to acquire up to $250 million of its common stock.
During fiscal year 2008, the Company concluded its previously announced $500 million Accelerated Share Repurchase
program with a third-party financial institution. In June 2007, the Company paid $500 million to repurchase shares of its
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