Computer Associates 2013 Annual Report Download - page 107

UNITED
(in millions) STATES EUROPE OTHER ELIMINATIONS TOTAL
Year Ended March 31, 2012
Revenue
To unaffiliated customers $ 2,812 $ 1,182 $ 820 $ — $ 4,814
Between geographic areas(1) 472 — — (472) —
Total revenue $ 3,284 $ 1,182 $ 820 $ (472) $ 4,814
Property and equipment, net $ 181 $ 121 $ 84 $ — $ 386
Total assets $ 9,078 $ 1,904 $ 1,015 $ — $ 11,997
Total liabilities $ 4,911 $ 1,009 $ 680 $ — $ 6,600
Year Ended March 31, 2011
Revenue
To unaffiliated customers $ 2,519 $ 1,139 $ 771 $ — $ 4,429
Between geographic areas(1) 453 — — (453) —
Total revenue $ 2,972 $ 1,139 $ 771 $ (453) $ 4,429
Property and equipment, net $ 211 $ 132 $ 94 $ — $ 437
Total assets $ 9,641 $ 1,789 $ 981 $ — $ 12,411
Total liabilities $ 4,996 $ 1,163 $ 632 $ — $ 6,791
(1) Represents royalties from foreign subsidiaries determined as a percentage of certain amounts invoiced to customer.
No single customer accounted for 10% or more of total revenue for fiscal year 2013, 2012 or 2011.
Note 18 — Profit Sharing Plan
The Company maintains a defined contribution plan for the benefit of its U.S. employees. The plan is intended to be a tax
qualified plan under Section 401(a) of the Internal Revenue Code, and contains a qualified cash or deferred arrangement as
described under Section 401(k) of the Internal Revenue Code. Eligible participants may elect to contribute a percentage of
their base compensation and the Company may make matching contributions.
The Company recognized costs associated with this plan of $43 million, $44 million and $28 million for fiscal years 2013,
2012 and 2011, respectively. Included in these amounts were discretionary stock contributions of $28 million, $29 million
and $13 million for fiscal 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 an aggregate
purchase price of approximately $155 million in cash. The acquisition is expected to close in the first quarter of fiscal year
2014.
On May 1, 2013, the Company’s Board of Directors approved a re-balancing plan (Fiscal 2014 Plan) to better align its
business priorities. The Fiscal 2014 Plan comprises the termination of approximately 1,200 employees and global facilities
consolidations. The Company intends to fill most of the positions involved in the re-balancing over the next 12 months with
new employees that have skills to enable the Company to better focus its resources on priority products and market
segments. The Fiscal 2014 Plan includes streamlining the Company’s sales structure to eliminate redundancies while
maintaining its focus on customers. In addition, the Company will be consolidating its development sites into development
hubs to promote collaboration and agile development. Actions under the Fiscal 2014 Plan are expected to be substantially
completed by the end of fiscal year 2014. Under the Fiscal 2014 Plan, the Company expects to incur a pre-tax charge of
approximately $150 million (including severance costs of approximately $120 million and global facilities consolidation costs
of approximately $30 million).
On May 7, 2013, the Company received final approval by the Joint Committee of Taxation on the IRS examination of the
Company’s federal income tax returns for the tax years ended March 31, 2005, 2006 and 2007. As a result, the Company
estimates it will record an income tax benefit of approximately $165 million to $185 million, a reduction of the balance of
unrecognized tax benefits of approximately $235 million and a cash tax refund of approximately $70 million to $80 million
in fiscal year 2014.
91