Computer Associates 2013 Annual Report Download - page 86

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The income (loss) from the discontinued components for fiscal years 2012 and 2011 consisted of the following:
FISCAL YEAR FISCAL YEAR
(in millions) 2012 2011
Subscription and maintenance revenue $ 15 $ 83
Total revenue $15$83
(Loss) income from operations of discontinued components, net of tax benefit (expense) of $6 million
and $(4) million, respectively $ (10) $ 9
Gain (loss) on disposal of discontinued components, net of taxes 23 (5)
Income from discontinued operations, net of taxes $ 13 $ 4
Note 4 — Severance and Exit Costs
Fiscal Year 2012 Workforce Reduction Plan: The fiscal year 2012 workforce reduction plan (Fiscal 2012 Plan) was announced
in July 2011 and consisted of a workforce reduction of approximately 400 positions. This action is part of the Company’s
efforts to reallocate resources and divest non-strategic parts of the business. The total amount incurred for severance under
the Fiscal 2012 Plan was $39 million. Actions under the Fiscal 2012 Plan were substantially completed by March 31, 2012.
Accrued severance and exit costs and changes in the accruals for fiscal years 2013, 2012 and 2011 were as follows:
ACCRUED ACCRUED
BALANCE AT CHANGE BALANCE AT
MARCH 31, IN ACCRETION MARCH 31,
(in millions) 2012 EXPENSE ESTIMATE PAYMENTS AND OTHER 2013
Severance $ 13 $ 18 $ (6) $ (9) $ — $ 16
Facilities abandonment 40 — — (13) (4) 23
Total accrued liabilities $ 53 $ 39
ACCRUED ACCRUED
BALANCE AT CHANGE BALANCE AT
MARCH 31, IN ACCRETION MARCH 31,
(in millions) 2011 EXPENSE ESTIMATE PAYMENTS AND OTHER 2012
Severance $ 8 $ 49 $ (8) $ (36) $ — $ 13
Facilities abandonment 47 — — (11) 4 40
Total accrued liabilities $ 55 $ 53
ACCRUED ACCRUED
BALANCE AT CHANGE BALANCE AT
MARCH 31, IN ACCRETION MARCH 31,
(in millions) 2010 EXPENSE ESTIMATE PAYMENTS AND OTHER 2011
Severance $ 54 $ — $ (3) $ (42) $ (1) $ 8
Facilities abandonment 62 — 1 (19) 3 47
Total accrued liabilities $ 116 $ 55
Balances at March 31, 2013, 2012 and 2011 include severance accruals of approximately $2 million, $2 million and
$8 million, respectively, and facilities abandonment accruals of approximately $23 million, $40 million and $47 million,
respectively, for plans and actions prior to fiscal year 2011.
The severance liability is included in ‘‘Accrued salaries, wages and commissions’’ in the Consolidated Balance Sheets. The
facilities abandonment liability is included in ‘‘Accrued expenses and other current liabilities’’ and ‘‘Other noncurrent
liabilities’’ in the Consolidated Balance Sheets. Accretion and other includes accretion of the Company’s lease obligations
related to facilities abandonment as well as changes in the assumptions related to future sublease income. These costs are
included in ‘‘General and administrative’’ expense in the Consolidated Statements of Operations.
70