Computer Associates 2013 Annual Report Download - page 43

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‘‘Deferred revenue (billed or collected)’’ is composed of: (i) amounts received from customers in advance of revenue
recognition and (ii) amounts billed but not collected for which revenue has not yet been earned.
Results of Operations
The following table presents revenue and expense line items reported in our Consolidated Statements of Operations for
fiscal 2013, 2012 and 2011 and the period-over-period dollar and percentage changes for those line items.
DOLLAR PERCENT DOLLAR PERCENT
YEAR ENDED MARCH 31, CHANGE CHANGE CHANGE CHANGE
2013 2012 2011 2013/2012 2013/2012 2012/2011 2012/2011
(dollars in millions)
Revenue:
Subscription and maintenance revenue $ 3,858 $ 4,021 $ 3,822 $ (163) (4)% $ 199 5%
Professional services 382 382 327 — —% 55 17%
Software fees and other 403 411 280 (8) (2)% 131 47%
Total revenue $ 4,643 $ 4,814 $ 4,429 $ (171) (4)% $ 385 9%
Expenses:
Costs of licensing and maintenance $ 284 $ 286 $ 278 $ (2) (1)% $ 8 3%
Cost of professional services 354 357 303 (3) (1)% 54 18%
Amortization of capitalized software costs 319 225 192 94 42% 33 17%
Selling and marketing 1,276 1,394 1,286 (118) (8)% 108 8%
General and administrative 405 462 451 (57) (12)% 11 2%
Product development and enhancements 490 510 471 (20) (4)% 39 8%
Depreciation and amortization of other intangible
assets 158 176 187 (18) (10)% (11) (6)%
Other (gains) expenses, net (5) 15 7 (20) (133)% 8 114%
Total expense before interest and income taxes $ 3,281 $ 3,425 $ 3,175 $ (144) (4)% $ 250 8%
Income before interest and income taxes $ 1,362 $ 1,389 $ 1,254 $ (27) (2)% $ 135 11%
Interest expense, net 44 35 45 9 26% (10) (22)%
Income before income taxes $ 1,318 $ 1,354 $ 1,209 $ (36) (3)% $ 145 12%
Income tax expense 363 416 386 (53) (13)% 30 8%
Income from continuing operations $ 955 $ 938 $ 823 $ 17 2% $ 115 14%
The following table sets forth, for the fiscal years indicated, the percentage of total revenue presented by the items in the
accompanying Consolidated Statements of Operations.
PERCENTAGE OF
TOTAL REVENUE FOR THE
YEAR ENDED MARCH 31,
2013 2012 2011
Revenue:
Subscription and maintenance revenue 83% 84% 86%
Professional services 887
Software fees and other 987
Total revenue 100% 100% 100%
Expenses:
Costs of licensing and maintenance 6% 6% 6%
Cost of professional services 877
Amortization of capitalized software costs 7 5 4
Selling and marketing 27 29 29
General and administrative 91010
Product development and enhancements 11 11 11
Depreciation and amortization of other intangible assets 3 4 4
Other (gains) expenses, net ———
Total expenses before interest and income taxes 71% 71% 72%
Income before interest and income taxes 29% 29% 28%
Interest expense, net 111
Income before income taxes 28% 28% 27%
Income tax expense 899
Income from continuing operations 21% 19% 19%
Note: Amounts may not add to their respective totals due to rounding.
27