Computer Associates 2009 Annual Report Download - page 96

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meaning that transactions under the line of credit will be on such terms and conditions, including interest rate, maturity,
representations, covenants and events of default, as mutually agreed between the Company’s subsidiaries and the local
bank at the time of each specific transaction. As of March 31, 2009, the amount available under this line totaled
approximately $25 million and approximately $6 million was pledged in support of bank guarantees and other local
credit lines. Amounts drawn under these facilities as of March 31, 2009 were nominal.
In addition to the above facility, the Company and its subsidiaries use guarantees and letters of credit issued by financial
institutions to guarantee performance on certain contracts. As of March 31, 2009, none of these arrangements had been
drawn down by third parties.
Other
As of March 31, 2009 and 2008, the Company had various other debt obligations outstanding, which approximated
$51 million and $22 million, respectively.
As of March 31, 2009, the Company’s 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 the
Company’s credit rating to BBB.
As of March 31, 2009 the outlook on these unsecured notes is rated stable by all three rating agencies.
The Company conducts an ongoing review of its capital structure and debt obligations as part of its risk management
strategy. The fair value of the Company’s 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.”
Interest expense for the fiscal years ended March 31, 2009, 2008 and 2007 was $93 million, $136 million and
$122 million, respectively.
The maturities of outstanding debt are as follows:
(IN MILLIONS) 2010 2011 2012 2013 2014 THEREAFTER
YEAR ENDED MARCH 31,
Amount due $ 650 $ 13 $ 12 $ 757 $ 6 $ 499
Note 8 — Commitments and Contingencies
The Company leases real estate and certain data processing and other equipment with lease terms expiring through
2023. The leases are operating leases and provide for renewal options and additional rentals based on escalations in
operating expenses and real estate taxes. The Company has no material capital leases.
Rental expense under operating leases for facilities and equipment was approximately $161 million, $203 million and
$196 million for the fiscal years ended March 31, 2009, 2008 and 2007, respectively. Rental expense for the fiscal years
ended March 31, 2009, 2008 and 2007 included sublease income of approximately $22 million, $35 million and
$31 million, respectively.
Future minimum lease payments under non-cancelable operating leases as of March 31, 2009, were as follows:
(IN MILLIONS)
2010 $ 119
2011 95
2012 77
2013 65
2014 55
Thereafter 245
Total 656
Less income from sublease (42)
Net minimum operating lease payments $ 614
86