Computer Associates 2010 Annual Report Download - page 45

respectively, and a $27 million reduction due to proceeds from a sale-leaseback transaction that were realized in fiscal 2008
that did not recur in fiscal 2009. These increases were partially offset by reduced purchases of property and equipment of
$34 million.
Financing activities:
Cash used in financing activities for fiscal 2009 was $759 million compared with $572 million in fiscal 2008. The increase in
cash used in financing activities was primarily due to the partial repayment of $324 million principal amount of our
4.750% Senior Notes due 2009 during the second half of fiscal 2009. In addition, during the first quarter of fiscal 2009, we
repaid the remaining $350 million principal amount of our 6.500% Senior Notes that was due and payable at that time. Refer
to the “Debt Arrangements” table below for additional information concerning our outstanding debt balances at March 31,
2009. Partially offsetting the debt repayments in fiscal 2009 was a decrease in common stock repurchases. During fiscal
2009, we repurchased $4 million of our own common stock, compared with $500 million in fiscal 2008.
As of March 31, 2010 and 2009, our debt arrangements consisted of the following:
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MARCH 31, 2010 MARCH 31, 2009
Debt Arrangements:
2008 Revolving Credit Facility (expires August 2012) $ 1,000 $ 250 $ 1,000 $ 750
5.375% Senior Notes due November 2019 — 750 ——
1.625% Convertible Senior Notes due December 2009, net of debt amortization amount of
$29 million ——— 431
4.750% Senior Notes due December 2009 ——— 176
6.125% Senior Notes due December 2014 — 501 — 500
International line of credit 25 — 25 —
Capital lease obligations and other —44 —51
Total $1,545 $ 1,908
During fiscal 2010, we repaid $500 million of borrowing under our 2008 Revolving Credit Facility, which expires in August
2012, $176 million of our 4.750% Senior Notes due December 2009, and $520 million of our 1.625% Convertible Senior
Notes (1.625% Notes), of which approximately $460 million was for the outstanding principal of the debt and approximately
$60 million was for the in-the-money conversion feature. The $60 million was recorded in “Additional paid-in capital” in the
Consolidated Balance Sheet. These repayments are included in “Net cash used in financing activities” in the Consolidated
Statement of Cash Flows for fiscal 2010.
Concurrent with the original issuance of the 1.625% Notes in 2002, we entered into call spread repurchase option
transactions (1.625% Notes Call Spread) to partially mitigate potential dilution from the conversion of the 1.625% Notes. We
exercised the 1.625% Notes Call Spread in December 2009, resulting in option proceeds of approximately $61 million, which
was recorded in “Additional paid-in capital” in the Consolidated Balance Sheet at March 31, 2010 and is included in “Net cash
used in financing activities” in the Consolidated Statement of Cash Flows for fiscal 2010.
During fiscal 2010, we issued approximately $750 million principal amount of 5.375% Senior Notes due 2019 (the
5.375% Senior Notes). The net proceeds of the offering were approximately $738 million, after being issued at a discount of
$6 million and deducting expenses, underwriting discounts and commissions of $6 million, all of which will be amortized
over the term of the 5.375% Senior Notes. As of March 31, 2010, the principal amount of the 5.375% Senior Notes of
$744 million, net of unamortized debt discount of $6 million, is included in the “Long-term debt, net of current portion” line
item in the Consolidated Balance Sheet.
During fiscal 2010, we entered into three $100 million notional amount interest rate swap transactions to swap a portion of
our fixed interest rate payments from our 6.125% Senior Notes due December 2014 into floating interest rate payments
through December 1, 2014. Under the terms of the swaps, we will pay quarterly interest at rates of 2.915%, 2.779% and
2.999% on the first, second and third swap, respectively, plus the three-month LIBOR rate, and will receive interest payments
at 5.625%, which is consistent with the original stated coupon at issuance. The LIBOR based rate is set quarterly three months
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