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Building For
Innovation
Annual Report 2013

Table of contents

  • Page 1
    Building For Innovation Annual Report 2013

  • Page 2

  • Page 3
    ... while reducing costs with CA Technologies DB2 Tools. Dear Fellow Shareholder: The evolution of the Information Technology (IT) industry accelerated in fiscal 2013, driven by disruptive technology trends. Mobility, Software-as-a-Service (SaaS), Big Data and cloud computing are transforming the way...

  • Page 4

  • Page 5
    ... IT Project and Portfolio Management Software Applications," Daniel B. Stang and Robert A. Handler, May 14, 2013* Manpower cut costs by 15% and reduced downtime and call volumes with CA Service Desk Manager. Innovation, Execution and Speed To realize our full potential, CA Technologies needs to be...

  • Page 6

  • Page 7
    CA Technologies Annual Report 2013 SECURITY CA Technologies is positioned in the Leaders Quadrant of Gartner, Inc.'s User Authentication Magic Quadrant. Gartner, Inc., "Magic Quadrant for User Authentication," Ant Allan, March 7, 2013* HMS has more than 13,000 user accounts being managed via CA ...

  • Page 8

  • Page 9
    ... to business innovation." Ovum, "A new broom at CA Technologies signals a shift in focus, a drive to change the IT management market." Roy Illsley, May 2013 DirecTV uses CA LISA® for end-to-end testing of their applications to speed up the development process and bring products to market faster...

  • Page 10

  • Page 11
    ... Annual Report 2013 SERVICE ASSURANCE IDC ranked CA Technologies the #1 market share leader in the Network Management Software and Appliance market (based on CY2011 revenues). IDC, Worldwide Network Management Software and Appliance 2012-2017 Forecast and 2010 and 1H11 Vendor Shares, Document...

  • Page 12
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  • Page 13
    ...) Delaware (State or Other Jurisdiction of Incorporation or Organization) 13-2857434 (I.R.S. Employer Identification Number) One CA Plaza, Islandia, New York (Address of Principal Executive Offices) 1-800-225-5224 (Registrant's telephone number, including area code) Securities registered pursuant...

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  • Page 15
    ...Officers and Corporate Governance Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Item 13. Certain Relationships and Related Transactions, and Director Independence Item 14. Principal Accountant Fees and Services...

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  • Page 17
    ... fiscal 2012, fiscal 2011 and fiscal 2010, etc. are to our fiscal years ended on March 31, 2013, 2012, 2011 and 2010, etc., respectively. Part I Item 1. Business. (a) General Development of Business Overview We are a leading provider of enterprise information technology (IT) management software and...

  • Page 18
    ... Indexes World Index and North America Index for the second consecutive year, in addition to placing fifth out of 500 in Newsweek's 2012 Green Rankings of U.S. companies. • In April 2012, we established a new CA Global Partner Program that provides an expanded set of benefits to support partners...

  • Page 19
    ... management), CA Capacity Management, CA Nimsoft Monitor and CA Service Operations Insight. • Security (Identity and Access Management), where we are a leader in the fastest growing key segments of web access management, advanced authentication and user provisioning. We provide a broad suite...

  • Page 20
    ... products include CA Clarity↩ Ideation and CA Clarity↩ Agile. The second of these solutions is service management, which helps customers automate end-user service requests, improve incident, problem and change processes, and assist with software license audits and compliance. Service management...

  • Page 21
    ... China, India, Mexico and Southeast Asia, where new technologies are key to business development. No single customer accounted for 10% or more of our total revenue for fiscal 2013, 2012 or 2011. Approximately 11% of our total revenue backlog at March 31, 2013, is associated with multi-year contracts...

  • Page 22
    ... who design and support CA Technologies software. Our engineers are located in and around our global strategic research and development centers in Framingham, Massachusetts; Plano, Texas; Lisle, Illinois; Santa Clara, California; Prague, the Czech Republic; Hyderabad, India; and Beijing, China. Our...

  • Page 23
    ... associations, industry standards bodies, customers and partners to explore novel products and emerging technologies. Our CA Council for Technical Excellence leads innovative projects designed to promote communication, collaboration and synergy throughout our global technical community. The CA...

  • Page 24
    ... term. Our customers also purchase maintenance and support services that provide technical support and any general product enhancements released during the maintenance period. Under a perpetual license, the customer has the right to use the licensed program for an indefinite period of time upon...

  • Page 25
    ... Global Select Market tier of The NASDAQ Stock Market LLC under the symbol ''CA.'' Our corporate website address is www.ca.com. All filings we make with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports...

  • Page 26
    ...including global reorganizations of sales, research and development, technical services, finance, human resources and facilities functions; • Effectively staffing key managerial and technical positions; • Successfully localizing software products for a significant number of international markets...

  • Page 27
    ... of these sources could result in price reductions or displacement of our products, which could materially adversely affect our business, financial condition, operating results and cash flow. Our competitors include large vendors of hardware and operating system software and service providers. The...

  • Page 28
    ... our competitive position. We sell our solutions through global systems integrators, technology partners, managed service providers, solution providers, distributors of volume partners and exclusive representatives in partner programs that require training and expertise to sell these solutions, and...

  • Page 29
    ..., and report financial and management information, including the filing of our quarterly or annual reports with the SEC, on a timely and accurate basis. Failure to properly or adequately address these issues, as well as managing and protecting our infrastructure, could result in the diversion of...

  • Page 30
    ... and time-consuming; • Increased insurance costs; and • Failure to successfully complete service engagements for product installations and implementations. Consequently, the discovery of errors in our Products after delivery could materially adversely affect our business, financial condition...

  • Page 31
    ...penalties. Approximately 11% of our total revenue backlog at March 31, 2013 is associated with multi-year contracts signed with the U.S. federal government and other U.S. state and local government agencies. These contracts are generally subject to annual fiscal funding approval, may be renegotiated...

  • Page 32
    ... of our software contracts. These factors can make it difficult for us to predict sales and cash flow on a quarterly basis. Any failure or delay in executing new or renewed license agreements in a given quarter could cause declines in some of our key financial metrics (e.g., revenue or cash...

  • Page 33
    ... results and cash flow. Failure by us to effectively execute on our announced workforce reductions, workforce re-balancing and facilities consolidations could result in total costs that are greater than expected or revenues that are less than anticipated. In May 2013 and previously, we have...

  • Page 34
    ... 1999, Mr. Elster has held a number of senior management positions, including Executive Vice President, Global Business Organization and Business Transformation from August 2011 to February 2012, General Manager, CA Services, Support and Education from June 2011 to August 2011, Corporate Senior Vice...

  • Page 35
    ... Operations from June 2010 to February 2012, Executive Vice President, Global Sales and Marketing from 2009 to June 2010 and Executive Vice President and General Manager, Worldwide Sales from 2007 to 2009. Amy Fliegelman Olli, 49, has been Executive Vice President and General Counsel of the Company...

  • Page 36
    ... 31, 2013 Total 759 1,436 765 2,960 $ 25.01 24.82 24.98 759 1,436 765 2,960 $ $ $ 559,645 524,000 504,899 On January 23, 2012, our Board of Directors approved a capital allocation program that authorized us to acquire up to $1.5 billion of our common stock through our fiscal year ending March...

  • Page 37
    ...fourth quarter of fiscal 2012. In fiscal 2009 through fiscal 2011, dividends declared per common share were $0.04 per quarter. Deferred revenue includes amounts billed or collected in advance of revenue recognition, including subscription license agreements, maintenance and professional services. It...

  • Page 38
    ... the long-term. CA Technologies Business Model We generate revenue from the following sources: license fees - licensing our products on a right-to-use basis; maintenance fees - providing customer technical support and product enhancements; and service fees - providing professional services such as...

  • Page 39
    ... 2012, software fees and other bookings included the $39 million from the license agreement we entered into in connection with a litigation settlement. Renewal bookings, which generally do not include new product and capacity sales and professional services arrangements, for fiscal 2013 declined...

  • Page 40
    ... by our additional investments in ITKO and Nimsoft products. For fiscal 2013, Services revenue and expenses compared with fiscal 2012 remained consistent. Services operating margin was 6% for fiscal 2013 and fiscal 2012. Total revenue backlog for fiscal 2013 decreased 8% to $7,774 million compared...

  • Page 41
    ... of the related software license. Software fees and other revenue generally represents license fee revenue recognized at the inception of a license agreement (up-front basis) and also includes our SaaS revenue, which is recognized as services are provided. Total Bookings - Total bookings, or sales...

  • Page 42
    ...and volume partners, value-added resellers and exclusive representatives to end-users, where the contracts incorporate the right for end-users to receive unspecified future software products, and other contracts without these rights entered into in close proximity or contemplation of such agreements...

  • Page 43
    ...31, 2013 2012 2011 Revenue: Subscription and maintenance revenue Professional services Software fees and other Total revenue Expenses: Costs of licensing and maintenance Cost of professional services Amortization of capitalized software costs Selling and marketing General and administrative Product...

  • Page 44
    ...) maintenance agreements associated with providing customer technical support and access to software fixes and upgrades that are separately identifiable from software usage fees or product sales, and (iii) license agreements bundled with additional products, maintenance or professional services for...

  • Page 45
    ... exchange effect, international revenue would have increased by $3 million primarily as a result of revenue growth in Latin America and the Asia-Pacific region, which was offset by lower revenue in Europe, Middle East and Africa. Price changes do not have a material effect on revenue in the period...

  • Page 46
    .... For fiscal 2012, amortization of capitalized software costs increased compared with fiscal 2011, primarily due to the increase in projects that reached general availability and amortization associated with technology acquired from our acquisitions. We expect that our product offerings and go...

  • Page 47
    ... corporate and support functions, including our executive leadership and administration groups, finance, legal, human resources, corporate communications and other costs such as provisions for doubtful accounts. For fiscal 2013, general and administrative expenses decreased compared with fiscal 2012...

  • Page 48
    ... first quarter of fiscal 2011, we sold our Information Governance business, consisting primarily of the CA Records Manager and CA Message Manager software offerings and related professional services, for $19 million. The results of discontinued operations for fiscal 2012 and 2011 included revenue of...

  • Page 49
    ... allocates a discount in the total contract price to the individual products in proportion to the list price of the product); (2) allocations included within internal contract approval documents; or (3) the value for individual software products as stated in the customer contract. The price for the...

  • Page 50
    ...in ITKO and Nimsoft products. For fiscal 2012, Enterprise Solutions revenue increased $197 million from fiscal 2011 primarily due to growth in revenue from our security (identity and access management), virtualization and service automation and service and portfolio management products. Revenue from...

  • Page 51
    In fiscal 2013, total bookings decreased compared with fiscal 2012 in the United States and Europe, Middle East and Africa regions and increased in the Asia Pacific Japan and Latin America regions. Total new product and mainframe capacity sales in fiscal 2013 declined by approximately 20% compared ...

  • Page 52
    ...maintenance agreement duration in years to change materially from historical levels for end-user contracts. Selected Quarterly Information FISCAL 2013 QUARTER ENDED JUNE 30 SEPTEMBER 30 DECEMBER 31 MARCH 31 TOTAL (dollars in millions, except per share amounts) Revenue Percentage of annual revenue...

  • Page 53
    .... Sources and Uses of Cash Under our subscription and maintenance agreements, customers generally make installment payments over the term of the agreement, often with at least one payment due at contract execution, for the right to use our software products and receive product support, software...

  • Page 54
    ... was primarily driven by a decrease in billings backlog and to a lesser extent a decrease in trade accounts receivable. The decrease in total revenue backlog in fiscal 2013 compared with fiscal 2012 was primarily due to the decline of total bookings in fiscal 2013 and prior periods and the increase...

  • Page 55
    ... Activities YEAR ENDED MARCH 31, 2013 2012 2011 (in millions) $ CHANGE 2013 / 2012 2012 / 2011 Cash collections from billings(1) Vendor disbursements and payroll(1) Income tax payments Other disbursements, net(2) Cash provided by operating activities (1) (2) Amounts include value added taxes and...

  • Page 56
    ... provides us with an option to increase the available credit by an amount up to $500 million. This option is subject to certain conditions and the agreement of the facility lenders. At March 31, 2013, our senior unsecured notes were rated Baa2 (stable) by Moody's Investor Services, BBB+ (stable) by...

  • Page 57
    ... current stock repurchase program. The timing and amount of share repurchases will be determined by our management based on evaluation of market conditions, trading price, legal requirements, and other factors. Dividends We have paid cash dividends each year since July 1990. For fiscal 2013, 2012...

  • Page 58
    .... Revenue from professional service arrangements is generally recognized as the services are performed. Revenue and costs from committed professional services that are sold as part of a software license agreement are deferred and recognized on a ratable basis over the life of the related software...

  • Page 59
    ..., we will not recognize revenue until the uncertainty is removed through the receipt of cash payment. We do not typically offer installment payments for perpetual license agreements that are recognized up-front, within ''Software fees and other.'' See Note 1, ''Significant Accounting Policies'' for...

  • Page 60
    ... in future periods as the amount of software development costs capitalized decreases. Accounting for Share-Based Compensation We currently maintain several stock-based compensation plans. We use the Black-Scholes option-pricing model to compute the estimated fair value of certain share-based...

  • Page 61
    ... impact on the annual interest expense related to our interest rates swaps corresponding to the 6.125% Notes. Foreign Currency Exchange Risk We conduct business on a worldwide basis through subsidiaries in 47 foreign countries and, as such, a portion of our revenues, earnings and net investments...

  • Page 62
    ... that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management conducted its evaluation of the effectiveness of internal control over financial reporting at March 31, 2013 based on the framework in...

  • Page 63
    ... 2013, the Company implemented and began using its global enterprise resource planning system to process accounting transactions for the Latin America region. The Company continued to monitor and test this system as part of management's annual evaluation of internal control over financial reporting...

  • Page 64
    ... Resources Committee Report on Executive Compensation'' in the definitive proxy statement to be filed with the SEC relating to our 2013 Annual Meeting of Stockholders is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 65
    ... as amended. 4.1 Restated Certificate of Designation of Series One Junior Participating Preferred Stock, Class A of the Company. Stockholder Protection Rights Agreement dated November 8, 2012 between the Company and Computershare Shareowner Services LLC, as Rights Agent, including as Exhibit A the...

  • Page 66
    ... 2007). 10.7** CA, Inc. 2002 Compensation Plan for Non-Employee Directors. Deferred Prosecution Agreement, including the related Information and Stipulation of Facts. Final Consent Judgment of Permanent Injunction and Other Relief, including SEC complaint. Form of Restricted Stock Unit Certificate...

  • Page 67
    ... year ended March 31, 2010.* 10.26** First Amendment to Adoption Agreement for CA, Inc. Executive Deferred Compensation Plan, effective February 25, 2008. Amended and Restated Employment Agreement dated September 30, 2009 between the Company and Amy Fliegelman Olli. Director Retirement Donation...

  • Page 68
    ... Exhibit C to the Company's definitive Proxy Statement dated June 10, 2011.* Filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated August 19, 2011.* Filed as Exhibit 10.55 to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2012.* Filed as Exhibit 10.56...

  • Page 69
    ... Stock Options (Canadian employees). CA, Inc. 2012 Compensation Plan for Non-Employee Directors. Separation Agreement and General Claims Release dated May 1, 2012 between the Company and David C. Dobson. General Claims Release dated May 24, 2012 between the Company and Nancy E. Cooper. Filed...

  • Page 70
    ... of Cash Flows - Years Ended March 31, 2013, 2012 and 2011. (vi) Notes to Consolidated Financial Statements - March 31, 2013. Filed herewith. 31.2 Filed herewith. 32 Furnished herewith. 101 Filed herewith. * ** Incorporated herein by reference. Management contract or compensatory plan or...

  • Page 71
    ... Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Michael P. Gregoire Michael P. Gregoire Chief Executive Officer (Principal Executive Officer) By: /s/ Richard J. Beckert...

  • Page 72
    .... * Jens Alder * Raymond J. Bromark * Gary J. Fernandes * Michael P. Gregoire * Rohit Kapoor * Kay Koplovitz * Christopher B. Lofgren * Richard Sulpizio * Laura S. Unger * Arthur F. Weinbach * Renato (Ron) Zambonini *By: /s/ C.H.R. DuPree C.H.R. DuPree Attorney-in-fact Dated: May 9, 2013 Director...

  • Page 73
    ...Inc. and Subsidiaries Islandia, New York Annual Report on Form 10-K Item 8, Item 9A, Item 15(a)(1) and (2), and Item 15(c) List of Consolidated Financial Statements and Financial Statement Schedule Consolidated Financial Statements and Financial Statement Schedule Year ended March 31, 2013 PAGE The...

  • Page 74
    ... consolidated financial statement schedule, and an opinion on the Company's internal control over financial reporting based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan...

  • Page 75
    ...term debt Accounts payable Accrued salaries, wages and commissions Accrued expenses and other current liabilities Deferred revenue (billed or collected) Taxes payable, other than income taxes payable Federal, state and foreign income taxes payable Deferred income taxes Total current liabilities Long...

  • Page 76
    ... of Operations YEAR ENDED MARCH 31, (in millions, except per share amounts) 2013 2012 2011 Revenue: Subscription and maintenance revenue Professional services Software fees and other Total revenue Expenses: Costs of licensing and maintenance Cost of professional services Amortization of capitalized...

  • Page 77
    ... Statements of Comprehensive Income YEAR ENDED MARCH 31, (in millions) 2013 2012 2011 Net income Other comprehensive (loss)/income Foreign currency translation adjustments Reclassification adjustments on derivatives, net of taxes of $2 for fiscal year 2011 Total other comprehensive (loss)/income...

  • Page 78
    ... at March 31, 2012 Net income Other comprehensive loss Comprehensive income Share-based compensation Dividends declared Release of restricted stock, exercise of common stock options, ESPP and other items Accelerated share repurchase Treasury stock purchased Balance at March 31, 2013 See accompanying...

  • Page 79
    ... compensation expense Asset impairments and other non-cash items Foreign currency transaction losses Changes in other operating assets and liabilities, net of effect of acquisitions: Decrease (increase) in trade accounts receivable (Decrease) increase in deferred revenue Decrease in taxes payable...

  • Page 80
    ... end of the reporting period. (d) Divestitures: In June 2011, the Company sold its Internet Security business and in June 2010, the Company sold its Information Governance business. The results of operations associated with the sales of these businesses have been presented as discontinued operations...

  • Page 81
    ... agreements and also generally include maintenance; (ii) maintenance agreements associated with providing customer technical support and access to software fixes and upgrades which are separately identifiable from software usage fees or product sales; or (iii) software license agreements bundled...

  • Page 82
    ... and cash equivalents were maintained outside the United States at March 31, 2013 and 2012, respectively. Total interest income, which primarily relates to the Company's cash and cash equivalent balances and investments, for fiscal years 2013, 2012 and 2011 was approximately $20 million, $30 million...

  • Page 83
    ... process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. Annual amortization of capitalized software costs is the greater of the amount computed using the ratio that current gross revenues for a product...

  • Page 84
    ...Deferred revenue (billed or collected) excludes contractual commitments executed under license and maintenance agreements that will be billed in future periods. See Note 7, ''Deferred Revenue,'' for additional information. (r) Litigation: The Company records a provision with respect to a claim, suit...

  • Page 85
    ...of approximately $18 million. In the first quarter of fiscal year 2011, the Company sold its Information Governance business, consisting primarily of the CA Records Manager and CA Message Manager software offerings and related professional services for approximately $19 million and recognized a loss...

  • Page 86
    ... 31, 2010 EXPENSE CHANGE IN ESTIMATE PAYMENTS ACCRETION AND OTHER ACCRUED BALANCE AT MARCH 31, 2011 Severance Facilities abandonment Total accrued liabilities $ $ 54 62 116 $ - - $ (3) 1 $ (42) (19) $ (1) 3 $ $ 8 47 55 Balances at March 31, 2013, 2012 and 2011 include severance...

  • Page 87
    ... revenue recognized in advance of customer billings but do not include unbilled contractual commitments executed under license agreements. The components of ''Trade accounts receivable, net'' were as follows: AT MARCH 31, (in millions) 2013 2012 Accounts receivable - billed Accounts receivable...

  • Page 88
    ...depreciation and amortization expense is as follows: YEAR ENDED MARCH 31, (in millions) 2013 2012 2011 Depreciation Amortization of purchased software products Amortization of internally developed software products Amortization of other intangible assets Total $ 104 163 156 54 477 $ 111 103 122...

  • Page 89
    ... 31, (in millions) 2013 2012 Current: Subscription and maintenance Professional services Software fees and other Total deferred revenue (billed or collected) - current Noncurrent: Subscription and maintenance Professional services Software fees and other Total deferred revenue (billed or collected...

  • Page 90
    ... Statements of Operations. There was no borrowing activity under the revolving credit facility for fiscal year 2013. Total interest expense relating to borrowings under the revolving credit facility for fiscal years 2012 and 2011 was less than $1 million and $2 million, respectively. The revolving...

  • Page 91
    ... ineffectiveness existed for fiscal year 2011. Foreign Currency Contracts: The Company enters into foreign currency option and forward contracts to manage foreign currency risks. The Company has not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these...

  • Page 92
    ...OPERATIONS LOCATION OF AMOUNTS RECOGNIZED (in millions) YEAR ENDED MARCH 31, 2013 2012 2011 Interest expense, net - interest rate swaps designated as cash flow hedges Interest expense, net - interest rate swaps designated as fair value hedges Other (gains) expenses, net - foreign currency contracts...

  • Page 93
    ...renewal options and additional rentals based on escalations in operating expenses and real estate taxes. Rental expense, including short-term leases, maintenance charges and taxes on leased facilities, was approximately $124 million, $168 million and $150 million for fiscal years 2013, 2012 and 2011...

  • Page 94
    ... by current and former officers and directors in various lawsuits and investigations. Note 12 - Stockholders' Equity Stock Repurchases: In January 2012, the Company's Board of Directors approved a $2.5 billion capital allocation program that includes an authorization for the Company to acquire up...

  • Page 95
    ... held by an Acquiring Person, will entitle the holder to receive, for an exercise price of $100, that number of shares of the Company's common stock (or, in certain circumstances, cash, property or other securities) having an aggregate Market Price (as determined under the Rights Agreement) equal to...

  • Page 96
    ... for the periods indicated: YEAR ENDED MARCH 31, (in millions) 2013 2012 2011 Costs of licensing and maintenance Cost of professional services Selling and marketing General and administrative Product development and enhancements Share-based compensation expense before tax Income tax benefit...

  • Page 97
    ... share-based compensation costs at March 31, 2013, 2012 or 2011. Stock Option Awards: Stock options are awards issued to employees that entitle the holder to purchase shares of the Company's stock at a fixed price. Stock option awards are generally granted at an exercise price equal to the...

  • Page 98
    .... The Company's computation of expected life was determined based on the simplified method (the average of the vesting period and option term). The following table summarizes information on options exercised for the periods indicated: YEAR ENDED MARCH 31, (in millions) 2013 2012 2011 Cash received...

  • Page 99
    ....05 20.03 24.06 20.70 21.61 21.91 23.72 21.03 23.38 23.28 $ $ $ The total vesting date fair value of RSAs and RSUs released during fiscal years 2013, 2012 and 2011 was approximately $92 million, $73 million and $82 million, respectively. Performance Awards: The Company rewards certain senior...

  • Page 100
    ...INCENTIVE PLANS FOR FISCAL YEARS 2010 2009 2008 3 years 3 years 3 years 0.2 0.2 0.3 $ $ $ 26.39 24.68 21.47 Awards were granted under the Fiscal Year 2012, 2011 and 2010 Sales Retention Equity Programs in the first quarter of fiscal years 2013, 2012 and 2011, respectively. These awards vest on...

  • Page 101
    ...benefit) from continuing operations consists of the following: YEAR ENDED MARCH 31, (in millions) 2013 2012 2011 Current: Federal State Foreign Total current Deferred: Federal State Foreign Total deferred Total: Federal State Foreign Total income tax expense from continuing operations $ 279 39 32...

  • Page 102
    ...) 2013 2012 Deferred tax assets: Modified accrual basis accounting for revenue Share-based compensation Accrued expenses Net operating losses Intangible assets amortizable for tax purposes Deductible state tax and interest benefits Other Total deferred tax assets Valuation allowances Total deferred...

  • Page 103
    ... Japan - tax years are open for years 2007 and forward; and • United Kingdom - tax years are open for years 2010 and forward. The U.S. Internal Revenue Service (IRS) examination of the Company's federal income tax returns for the tax years ended March 31, 2005, 2006 and 2007 has been forwarded to...

  • Page 104
    ... allocates a discount in the total contract price to the individual products in proportion to the list price of the products); (2) allocations included within internal contract approval documents; or (3) the value for individual software products as stated in the customer contract. The price for the...

  • Page 105
    ... the Company's Chief Executive Officer and has therefore not been disclosed. The Company's segment information for fiscal years 2013, 2012 and 2011 is as follows: Year Ended March 31, 2013 (dollars in millions) MAINFRAME SOLUTIONS ENTERPRISE SOLUTIONS SERVICES TOTAL Revenue Expenses Segment profit...

  • Page 106
    ... on the location of the sale, which is generally the customer's country of domicile. The following table presents information about the Company by geographic area for fiscal years 2013, 2012 and 2011: (in millions) UNITED STATES EUROPE OTHER ELIMINATIONS TOTAL Year Ended March 31, 2013 Revenue To...

  • Page 107
    ... years 2013, 2012 and 2011, respectively. Note 19 - Subsequent Events On April 22, 2013, the Company entered into a definitive agreement to acquire all of the outstanding stock of Layer 7 Technologies, a leading provider of Application Programming Interface management and security software, for...

  • Page 108
    ... OF PERIOD ADDITIONS/ (DEDUCTIONS) CHARGED/ (CREDITED) TO COSTS AND EXPENSES BALANCE AT END OF PERIOD DESCRIPTION DEDUCTIONS(1) Allowance for doubtful accounts (in millions) Year ended March 31, 2013 Year ended March 31, 2012 Year ended March 31, 2011 (1) Write-off of amounts against allowance...

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  • Page 111
    CA Technologies Annual Report 2013 Comparison of Five-Year Cumulative Total Return* Among CA, Inc., the S&P 500 Index and S&P Software $160 $140 $120 $100 $80 $60 $40 $20 $0 *$100 invested on 3/31/08 in stock or index, including reinvestment of dividends. Fiscal year ending March 31. CA, Inc. S&P ...

  • Page 112
    Corporate Information International Headquarters CA, Inc. One CA Plaza Islandia, NY 11749 1-800-225-5224 Fax: 1-631-342-6800 CA, Inc. Stock The following table sets forth, for the fiscal quarters indicated, the quarterly high and low closing sales prices on the NASDAQ. FISCAL 2013 Fourth Quarter ...

  • Page 113
    ... and Customer Success Group George J. Fischer Executive Vice President and Group Executive Worldwide Sales and Services Amy Fliegelman Olli Executive Vice President and General Counsel Peter JL Griffiths Executive Vice President and Group Executive Enterprise Solutions and Technology Group William...

  • Page 114
    ... not as of the date of this Annual Report) and the opinions expressed in the Gartner Reports are subject to change without notice. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the...