Computer Associates 2011 Annual Report Download - page 50

$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.
Debt arrangements
Our debt arrangements consisted of the following:
(IN MILLIONS) 2011 2010
AT MARCH 31,
Revolving Credit Facility due August 2012 $ 250 $ $250
5.375% Notes due November 2019 750 750
6.125% Notes due December 2014, net of unamortized premium from fair value hedge of $15 and $1 515 501
Other indebtedness, primarily capital leases 42 51
Unamortized discount for Notes (6) (7)
Total debt outstanding 1,551 1,545
Less the current portion (269) (15)
Total long-term debt portion $1,282 $ 1,530
We have entered into interest rate swaps to convert $500 million of our 6.125% Notes into floating interest rate payments
through December 1, 2014. Under the terms of the swaps, we will pay quarterly interest at an average rate of 2.88% plus the
three-month LIBOR rate, and will receive payment at 5.625%. The LIBOR based rate is set quarterly three months prior to the
date of the interest payment. At March 31, 2011, the fair value of these derivatives was $15 million, of which $11 million is
included in “Other current assets” and $4 million is included in “Other noncurrent assets, net” in the Consolidated Balance
Sheet. The carrying value of the 6.125% Notes was adjusted by an amount that is equal and offsetting to the fair value of the
swaps.
At March 31, 2011, $250 million of our Revolving Credit Facility due August 2012, was reclassified from long-term debt to
current debt and was repaid in April 2011.
At March 31, 2011, our senior unsecured notes were rated Baa2 (stable) by Moody’s Investor Services, BBB (positive) by
Standard and Poor’s, and BBB+ (stable) by Fitch Ratings. At April 11, 2011 Standard and Poor’s upgraded our credit rating to
BBB+ (stable), resulting in a decrease in the interest rate applicable to incremental borrowings from 0.66% to 0.58%.
For further information on our debt balances, refer to Note 9, “Debt,” in the Notes to the Consolidated Financial Statements.
Stock repurchases
On May 12, 2010, our Board of Directors approved a stock repurchase program that authorizes us to acquire up to
$500 million of our common stock. During fiscal 2011, we entered into brokerage arrangements with third-party financial
institutions to purchase our common stock in the open market on our behalf. We acquired 10.5 million shares of our common
stock for $218 million under these arrangements during fiscal 2011. At March 31, 2011, we were authorized to purchase an
aggregate amount of up to $282 million of additional shares of common stock under our current stock repurchase program.
On May 12, 2011, our Board of Directors approved a stock repurchase program that authorized us to acquire up to an
additional $500 million of our common stock, in addition to the previous program approved on May 12, 2010. We will fund
the program with available cash on hand and repurchase shares on the open market from time to time based on market
conditions and other factors.
Dividends
We have paid cash dividends each year since July 1990. For fiscal 2011, 2010 and 2009, we paid annual cash dividends of
$0.16 per share, which have been paid out in quarterly installments of $0.04 per share as and when declared by our Board of
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