Computer Associates 2009 Annual Report Download - page 93

include unbilled contractual commitments executed under the Company’s current business model. Trade and installment
accounts receivable are composed of the following components:
(IN MILLIONS)
MARCH 31,
2009
MARCH 31,
2008
Current:
Accounts receivable — billed $ 658 $ 817
Accounts receivable — unbilled 71 50
Other receivables 34 57
Unbilled amounts due within the next 12 months — prior business model 108 103
Less: Allowance for doubtful accounts (25) (30)
Less: Unamortized discounts (7) (27)
Net trade and installment accounts receivable — current $ 839 $ 970
Noncurrent:
Unbilled amounts due beyond the next 12 months — prior business model $ 132 $ 239
Less: Allowance for doubtful accounts —(1)
Less: Unamortized discounts (4) (4)
Net installment accounts receivable — noncurrent $ 128 $ 234
During fiscal year 2008, the Company transferred its rights and interest in future committed installments under ratable
software license agreements to third-party financial institutions with an aggregate contract value of approximately
$17 million, for which the Company received cash of approximately $14 million. As of March 31, 2009 and 2008, the
aggregate remaining amounts due to the third party financing institutions were approximately $10 million and
$56 million, respectively. These amounts are classified as “Deferred revenue (billed or collected)” on the Consolidated
Balance Sheets. The financing agreements may contain limited recourse provisions with respect to the Company’s
continued performance under the license agreements. Based on the Company’s historical experience, the Company
believes that any liability which may be incurred as a result of these limited recourse provisions is remote.
Note 7 — Debt
Credit Facilities
As of March 31, 2009 and 2008, the Company’s committed bank credit facilities consisted of a $1 billion, unsecured
bank revolving credit facility.
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
2009 2008
AS OF MARCH 31,
2008 Revolving Credit Facility (expires August 2012) $ 1,000 $ 750 $ 1,000 $ 750
2008 Revolving Credit Facility
In August 2007, the Company entered into an unsecured revolving credit facility (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 its lenders. The 2008 Revolving Credit Facility replaced the prior $1 billion 2004 Revolving Credit
Facility (the 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. Total interest expense relating to borrowings under the 2008 Revolving Credit Facility for fiscal years 2009, 2008
and 2007 was approximately $24 million, $44 million and $25 million, respectively.
Borrowings under the 2008 Revolving Credit Facility bear interest at a rate dependent on the Company’s 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 0.0% and, depending on
the Company’s credit rating, the applicable margin for a Eurocurrency borrowing ranges from 0.27% to 0.875%. Also,
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