Computer Associates 2010 Annual Report Download - page 44

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Unbilled amounts relating to subscription licenses are mostly collectible over a period of one to five years. As of March 31,
2010, on a cumulative basis, 41%, 71%, 88%, 98%, and 100% of amounts due from customers recorded under our business
model come due within fiscal 2011 through 2015, respectively.
Cash generated by operating activities
(IN MILLIONS) 2010 2009 2008 2010/2009 2009/2008
YEAR ENDED MARCH 31, $ CHANGE
Cash collections from billings
(1)
$ 4,770 $ 4,735 $ 4,960 $ 35 $ (225)
Vendor disbursements and payroll
(1)
(2,996) (3,112) (3,324) 116 212
Income tax payments (329) (351) (374) 22 23
Other disbursements, net
(2)
(85) (60) (159) (25) 99
Cash generated by operating activities $ 1,360 $ 1,212 $ 1,103 $ 148 $ 109
(1) Amounts include VAT and sales taxes.
(2) Amounts include interest, restructuring and miscellaneous receipts and disbursements.
Fiscal year 2010 versus fiscal year 2009
Operating activities:
Cash generated by operating activities for fiscal 2010 was $1,360 million, representing an increase of $148 million compared
with fiscal 2009. The increase was driven primarily by lower vendor disbursements and payroll of $116 million which was
mostly due to decreased operating costs.
Investing activities:
Cash used in investing activities for fiscal 2010 was $888 million compared with $284 million for fiscal 2009. The increase in
cash used in investing activities was primarily due to the increase in acquisition related costs of $541 million and an increase
in capitalized software development costs of $59 million from the reallocation of resources previously spent on maintenance
to new development projects and incremental development expenditures on acquired products and other strategic
investments.
Financing activities:
Cash used in financing activities for fiscal 2010 was $705 million compared with $759 million in fiscal 2009. The primary
changes in cash used in financing activities were an increase in debt repayments of $525 million and an increase in
repurchases of our common stock of $223 million, offset by $744 million of debt borrowings, net of debt issuance costs of
$6 million and proceeds of $61 million received from the exercise of a call spread option associated with our
1.625% Convertible Senior Notes due December 2009.
During fiscal 2009, we repaid the remaining $350 million principal amount of our 6.500% Senior Notes that was due and we
also repurchased $148 million principal amount of our 4.750% Senior Notes due 2009 at a price of $143 million in cash.
Refer to the “Debt Arrangements” table below for additional information about our debt balances at March 31, 2010.
Fiscal year 2009 versus fiscal year 2008
Operating activities:
Cash generated by operating activities for fiscal 2009 was $1,212 million, representing an increase of $109 million compared
with fiscal 2008. The increase was primarily due to a reduction of $212 million in vendor disbursements and payroll due to
increased operating efficiencies and $78 million received from settlements of derivative contracts primarily resulting from the
strengthening of the U.S. dollar against the euro. The amounts received from the settlements of derivative contracts were
mostly offset by the reduced value in dollars of net cash received due to foreign exchange movements. These increases were
partially offset by a $225 million decrease in cash collections from billings, mostly due to a $115 million decrease in single
installment payments.
Investing activities:
Cash used in investing activities for fiscal 2009 was $284 million compared with $219 million for fiscal 2008. Increases in
cash paid for acquisitions, net of cash acquired, and capitalized software development costs of $49 million and $17 million,
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