Computer Associates 2013 Annual Report Download - page 57

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$500 million of our common stock. Under the agreement, we paid $500 million to the bank for an initial delivery of
15 million shares. The fair market value of 15 million shares on the date received was $375 million and was included in
‘‘Treasury stock’’ in our Consolidated Balance Sheet at March 31, 2012. The remaining $125 million was included in
‘‘Additional paid-in capital’’ in our Consolidated Balance Sheet at March 31, 2012. The accelerated share repurchase
transaction was completed in the first quarter of fiscal 2013 and we received 3.7 million additional shares, at which time the
initial amount recorded as additional paid-in capital was reclassified to treasury stock. The final number of shares delivered
upon settlement of the agreement was determined based on the average price of our common stock over the term of the
accelerated share repurchase agreement.
During fiscal 2013, excluding the accelerated share repurchase transaction, we repurchased 20 million shares of our common
stock for $495 million. At March 31, 2013, we remained authorized to purchase $505 million of our common stock under
our 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 and 2011, we paid annual cash dividends of
$1.00, $0.40 and $0.16 per share, respectively. On January 23, 2012, our Board of Directors approved a capital allocation
program that targets the return of up to $2.5 billion to shareholders through fiscal 2014. This included an increase in the
annual dividend from $0.20 to $1.00 per share on our common stock as and when declared by the Board of Directors. For
fiscal 2013, we paid quarterly cash dividends of $0.25 per share. We paid a cash dividend of $0.25 per share in the fourth
quarter of fiscal 2012 and $0.05 per share in each of the first three quarters of fiscal 2012. For fiscal 2011, we paid quarterly
cash dividends of $0.04 per share.
Effect of Foreign Currency Exchange Rate Changes
There was a $83 million unfavorable impact to our cash balances in fiscal 2013 predominantly due to the strengthening of
the U.S. dollar against the euro (4%), the Brazilian real (10%) and the Japanese yen (12%).
There was a $67 million unfavorable impact to our cash balances in fiscal 2012 predominantly due to the strengthening of
the U.S. dollar against the euro (6%), Brazilian real (12%), Canadian dollar (3%), South African rand (13%) and Indian
rupee (14%).
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements with unconsolidated entities or related parties and, accordingly,
off-balance sheet risks to our liquidity and capital resources from unconsolidated entities are limited.
Contractual Obligations and Commitments
We have commitments under certain contractual arrangements to make future payments for goods and services. These
contractual arrangements secure the rights to various assets and services to be used in the future in the normal course of
business. For example, we are contractually committed to make certain minimum lease payments for the use of property
under operating lease agreements. In accordance with current accounting rules, the future rights and related obligations
pertaining to such contractual arrangements are not reported as assets or liabilities on our Consolidated Balance Sheets. We
expect to fund these contractual arrangements with cash generated from operations in the normal course of business.
The following table summarizes our contractual arrangements at March 31, 2013 and the timing and effect that those
commitments are expected to have on our liquidity and cash flow in future periods. In addition, the table summarizes the
timing of payments on our debt obligations as reported on our Consolidated Balance Sheet at March 31, 2013.
PAYMENTS DUE BY PERIOD
LESS THAN 1-3 3-5 MORE THAN
CONTRACTUAL OBLIGATIONS TOTAL 1 YEAR YEARS YEARS 5 YEARS
(in millions)
Long-term debt obligations (inclusive of interest) $ 1,567 $ 54 $ 600 $ 82 $ 831
Operating lease obligations(1) 497 97 154 106 140
Purchase obligations 81 65 10 6 —
Other obligations(2) 59 30 20 5 4
Total $ 2,204 $ 246 $ 784 $ 199 $ 975
(1) The contractual obligations for noncurrent operating leases exclude sublease income totaling $24 million expected to be received in the following periods: $5 million (less than
1 year); $7 million (1-3 years); $4 million (3-5 years); and $8 million (more than 5 years).
(2) $486 million of estimated liabilities related to unrecognized tax benefits are excluded from the contractual obligations table because we could not make a reasonable estimate of
when those amounts will become payable.
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