Computer Associates 2013 Annual Report Download - page 106

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Year Ended March 31, 2011
MAINFRAME ENTERPRISE
(dollars in millions) SOLUTIONS SOLUTIONS SERVICES TOTAL
Revenue $ 2,479 $ 1,623 $ 327 $ 4,429
Expenses 1,129 1,501 310 2,940
Segment profit $ 1,350 $ 122 $ 17 $ 1,489
Segment operating margin 54% 8% 5% 34%
Depreciation and amortization $ 102 $ 116 $ — $ 218
Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2011:
Segment profit $ 1,489
Less:
Purchased software amortization 88
Other intangibles amortization 73
Share-based compensation expense 80
Other (gains) expenses, net(1) (6)
Interest expense, net 45
Income from continuing operations before income taxes $ 1,209
(1) Other (gains) expenses, net consists of other unallocated costs including foreign exchange derivative (gains) losses, and other miscellaneous costs.
Changes in the carrying value of goodwill by segment for fiscal year 2013 are as follows:
MAINFRAME ENTERPRISE
(in millions) SOLUTIONS SOLUTIONS SERVICES
Balance at beginning of year $ 4,179 $ 1,596 $ 81
Acquisitions —17—
Foreign currency translation adjustment (1) (1) —
Balance at end of year $ 4,178 $ 1,612 $ 81
The allocation of goodwill among the segments was not disclosed prior to fiscal year 2012 due to the change in the
Company’s internal reporting structure from a business based on a single operating segment to three operating segments.
The Company operates through branches and wholly-owned subsidiaries in 47 foreign countries located in North
America (4), Europe (21), Asia/Pacific (14), South America (7), and Africa (1). Revenue is allocated to a geographic area
based 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:
UNITED
(in millions) STATES EUROPE OTHER ELIMINATIONS TOTAL
Year Ended March 31, 2013
Revenue
To unaffiliated customers $ 2,747 $ 1,104 $ 792 $ — $ 4,643
Between geographic areas(1) 460 — — (460) —
Total revenue $ 3,207 $ 1,104 $ 792 $ (460) $ 4,643
Property and equipment, net $ 138 $ 108 $ 65 $ — $ 311
Total assets $ 8,887 $ 1,917 $ 1,007 $ — $ 11,811
Total liabilities $ 4,793 $ 944 $ 624 $ — $ 6,361
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