Computer Associates 2010 Annual Report Download - page 36

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The following table sets forth, for the fiscal years indicated, the percentage that the items in the accompanying Consolidated
Statements of Operations bear to total revenue.
2010 2009 2008
PERCENTAGE OF
TOTAL REVENUE FOR THE
YEAR ENDED MARCH 31,
Revenue:
Subscription and maintenance revenue 89% 88% 88%
Professional services 789
Software fees and other 443
Total revenue 100% 100% 100%
Expenses:
Costs of licensing and maintenance 7% 7% 6%
Cost of professional services 679
Amortization of capitalized software costs 333
Selling and marketing 28 28 31
General and administrative 11 11 12
Product development and enhancements 11 11 12
Depreciation and amortization of other intangible assets 434
Other expenses (gains), net ———
Restructuring and other 123
Total expenses before interest and income taxes 71 74 80
Income before interest and income taxes 29 26 20
Interest expense, net 212
Income before income taxes 27 25 18
Income tax expense 997
Net income 18% 16% 11%
Note — amounts may not add to their respective totals due to rounding.
Revenue
The $82 million increase in total revenue for fiscal 2010 as compared with fiscal 2009 was primarily due to a higher
annualized value of customer contracts contributing to revenue during fiscal 2010 as compared with fiscal 2009, partially
offset by an unfavorable foreign exchange effect of $32 million and a decrease in professional services revenue.
Total revenue for fiscal 2009 decreased $6 million compared with fiscal 2008. Fiscal 2009 revenue was unfavorably affected
by foreign exchange of $35 million compared with fiscal 2008, partially offset by a higher value of customer subscription and
maintenance contracts.
Subscription and maintenance revenue
The increase in subscription and maintenance revenue for fiscal 2010 as compared with fiscal 2009 was primarily due to a
higher annualized value of customer contracts contributing to revenue during fiscal 2010 as compared with fiscal 2009,
partially offset by a $32 million negative effect from foreign exchange.
Subscription and maintenance revenue increased slightly for fiscal 2009 compared with fiscal 2008 primarily due to an
increase in the value of existing customer contracts, partially offset by a $32 million negative effect from foreign exchange.
Subscription and maintenance bookings
For fiscal 2010 and 2009, our subscription and maintenance bookings were $4,435 million and $4,783 million, respectively.
The decrease in subscription and maintenance bookings for fiscal 2010 as compared with fiscal 2009 was primarily due to
several large contract extensions with terms of approximately five years entered into during the second quarter of fiscal 2009,
two of which had a combined contract value of approximately $550 million. During fiscal 2010, we renewed a total of 68
license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of
25