Computer Associates 2011 Annual Report Download - page 49

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Cash Generated by operating activities
(IN MILLIONS) 2011
(1)
2010
(1)
2009
(1)
2011 / 2010 2010 / 2009
YEAR ENDED MARCH 31, $ CHANGE
Cash collections from billings
(2)
$ 4,774 $ 4,653 $ 4,607 $ 121 $ 46
Vendor disbursements and payroll
(2)
(3,075) (2,896) (3,013) (179) 117
Income tax payments (222) (329) (351) 107 22
Other disbursements, net
(3)
(100) (92) (59) (8) (33)
Cash generated by operating Activities $ 1,377 $ 1,336 $ 1,184 $ 41 $152
(1) Information presented excludes the results of our discontinued operations.
(2) Amounts include value added taxes and sales taxes.
(3) Amounts include interest, restructuring and miscellaneous receipts and disbursements.
Fiscal 2011 versus fiscal 2010
Operating activities:
Cash generated by continuing operating activities for fiscal 2011 was $1,377 million, representing an increase of $41 million
compared with fiscal 2010. This growth reflects a year-over-year increase of $58 million in up-front cash collections from
single installment payments, an increase in collections on trade receivables of $63 million and a decrease in income tax
payments of $107 million. These favorable variances were mostly offset by an increase in disbursements of $187 million,
primarily attributable to acquisitions.
Investing activities:
Cash used in continuing investing activities for fiscal 2011 was $700 million compared with $888 million for fiscal 2010. The
decrease in cash used in investing activities was primarily due to a decrease in acquisition related costs of $365 million and
a decrease in capitalized software costs of $18 million. These decreases were offset by our net investment in marketable
securities of $181 million.
Financing activities:
Cash used in financing activities for fiscal 2011 was $320 million compared with $705 million in fiscal 2010. The changes in
cash used in financing activities were primarily due to the refinancing of our debt, which occurred during the third quarter of
fiscal 2010. At that time, we repaid debt of $1,196 million and issued debt, net of debt issuance costs, of $738 million and
received proceeds of $61 million from the exercise of a call spread option associated with our 1.625% Convertible Senior
Notes due December 2009. During fiscal 2011, we purchased $235 million of our common stock, compared with
$227 million in fiscal 2010.
Refer to the “Debt Arrangements” table below for additional information about our debt balances at March 31, 2011.
Fiscal 2010 versus fiscal 2009
Operating activities:
Cash generated by continuing operating activities for fiscal 2010 was $1,336 million, representing an increase of $152 million
compared with fiscal 2009. The increase was driven primarily by lower vendor disbursements and payroll of $117 million
which was mostly due to decreased operating costs.
Investing activities:
Cash used in continuing 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 of 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
37