Computer Associates 2013 Annual Report Download - page 55

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Cash Provided by Operating Activities
YEAR ENDED MARCH 31, $ CHANGE
2013 2012 2011 2013 / 2012 2012 / 2011
(in millions)
Cash collections from billings(1) $ 4,857 $ 5,142 $ 4,774 $ (285) $ 368
Vendor disbursements and payroll(1) (3,116) (3,235) (3,075) 119 (160)
Income tax payments (333) (420) (222) 87 (198)
Other disbursements, net(2) — 18 (100) (18) 118
Cash provided by operating activities $ 1,408 $ 1,505 $ 1,377 $ (97) $ 128
(1) Amounts include value added taxes and sales taxes.
(2) Amounts include interest, restructuring and miscellaneous receipts and disbursements.
Fiscal 2013 versus Fiscal 2012
Operating Activities:
Cash provided by continuing operating activities for fiscal 2013 was $1,408 million, representing a decrease of $97 million
compared with fiscal 2012. The decrease was primarily due to a decrease in cash collections of $285 million from lower
billings, partially offset by a decrease in vendor disbursements, payroll and other disbursements, net of $101 million and a
decrease in income tax payments of $87 million. For fiscal 2013, there was an increase cash collections from single
installment payments of $193 million. For fiscal 2013, other disbursements, net includes $35 million in cash proceeds
received as other income from the aforementioned intellectual property transaction that occurred in the first quarter of
fiscal 2013.
Product development and enhancements expenses are expected to increase in future periods as the amount capitalized for
internally developed software costs decreases (see ‘‘Amortization of Capitalized Software Costs’’ above). This will result in
additional operating cash outflows relating to development expenses for fiscal 2014. In addition, we currently expect the
payments associated with our fiscal 2014 re-balancing actions of approximately $100 million (see Note 19, ‘‘Subsequent
Events,’’ in the Notes to the Consolidated Financial Statements for additional information) and an increase in cash taxes to
have unfavorable effects on cash flows from operations for fiscal 2014. As a result, we expect a year-over-year decrease in
cash flows from operations for fiscal 2014 compared with fiscal 2013.
Investing Activities:
Cash used in continuing investing activities for fiscal 2013 was $473 million compared with $455 million for fiscal 2012. The
increase in cash used in continuing investing activities was primarily due to an increase in cash paid for investments of
$238 million and a decrease in cash received from investment sales and maturities of $124 million, partially offset by a
decrease in cash paid for acquisitions of $311 million, a decrease in purchases of property and equipment of $22 million,
and a decrease in capitalized software development costs of $15 million. As described above, product development and
enhancements expenses are expected to increase in future periods as the amount capitalized for internally developed
software costs decreases. This will have no effect on total cash flows, but will reduce our outflows from investing activities
and also decrease our operating cash flows.
Financing Activities:
Cash used in continuing financing activities for fiscal 2013 was $938 million compared with $1,330 million in fiscal 2012. The
decrease in cash used in continuing financing activities was primarily due to a decrease in common shares repurchased of
$560 million and a decrease in net debt repayments mainly related to our notional pooling arrangement of $114 million,
partially offset by an increase in cash dividends paid of $271 million.
Refer to the ‘‘Debt Arrangements’’ table below for additional information about our debt balances at March 31, 2013.
Fiscal 2012 versus Fiscal 2011
Operating Activities:
Cash provided by continuing operating activities for fiscal 2012 was $1,505 million, representing an increase of $128 million
compared with fiscal 2011. The increase was primarily due to an increase in cash collections from billings of $368 million,
offset by an increase in income tax payments of $198 million and an increase in vendor, payroll and other disbursements of
$42 million.
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