Computer Associates 2013 Annual Report Download - page 92

At March 31, 2012, foreign currency contracts outstanding consisted of purchase and sales contracts with a total notional
value of approximately $893 million and durations of less than six months. The net fair value of these contracts at
March 31, 2012 was a net liability of approximately $2 million, of which approximately $2 million is included in ‘‘Other
current assets’’ and approximately $4 million is included in ‘‘Accrued expenses and other current liabilities’’ in the
Company’s Consolidated Balance Sheet.
A summary of the effect of the interest rate and foreign exchange derivatives on the Company’s Consolidated Statements of
Operations is as follows:
AMOUNT OF NET (GAIN)/LOSS RECOGNIZED IN THE
CONSOLIDATED STATEMENTS OF OPERATIONS
YEAR ENDED MARCH 31,
LOCATION OF AMOUNTS RECOGNIZED
(in millions) 2013 2012 2011
Interest expense, net — interest rate swaps designated as cash flow hedges $ — $ — $ 4
Interest expense, net — interest rate swaps designated as fair value hedges $ (12) $ (12) $ (12)
Other (gains) expenses, net — foreign currency contracts $ 11 $ (3) $ 14
The Company is subject to collateral security arrangements with most of its major counterparties. These arrangements
require the Company or the counterparty to post collateral when the derivative fair values exceed contractually established
thresholds. The aggregate fair values of all derivative instruments under these collateralized arrangements were in a net
asset position at March 31, 2013 and 2012. The Company posted no collateral at March 31, 2013 or 2012. Under these
agreements, if the Company’s credit ratings had been downgraded one rating level, the Company would still not have been
required to post collateral.
Note 10 — Fair Value Measurements
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at
March 31, 2013 and 2012:
AT MARCH 31, 2013 AT MARCH 31, 2012
FAIR VALUE MEASUREMENT ESTIMATED FAIR VALUE MEASUREMENT ESTIMATED
USING INPUT TYPES FAIR VALUE USING INPUT TYPES FAIR VALUE
(in millions) LEVEL 1 LEVEL 2 TOTAL LEVEL 1 LEVEL 2 TOTAL
Assets:
Money market funds $ 1,280 $ — $ 1,280(1) $ 1,374 $ — $ 1,374(2)
Foreign exchange derivatives(3) —11—22
Interest rate derivatives(3) —1919—2727
Total assets $ 1,280 $ 20 $ 1,300 $ 1,374 $ 29 $ 1,403
Liabilities:
Foreign exchange derivatives(3) $—$—$—$—$ 4$ 4
Total liabilities $ — $ — $ — $ — $ 4 $ 4
(1) At March 31, 2013, the Company had approximately $1,230 million and $50 million of investments in money market funds classified as ‘‘Cash and cash equivalents’’ and ‘‘Other
noncurrent assets, net’’ for restricted cash amounts, respectively, in its Consolidated Balance Sheet.
(2) At March 31, 2012, the Company had approximately $1,324 million and $50 million of investments in money market funds classified as ‘‘Cash and cash equivalents’’ and ‘‘Other
noncurrent assets, net’’ for restricted cash amounts, respectively, in its Consolidated Balance Sheet.
(3) See Note 9, ‘‘Derivatives’’ for additional information. Interest rate derivatives fair value excludes accrued interest.
At March 31, 2013 and 2012, the Company did not have any assets or liabilities measured at fair value on a recurring basis
using significant unobservable inputs (Level 3).
The carrying values of financial instruments classified as current assets and current liabilities, such as cash and cash
equivalents, short-term investments, accounts payable, accrued expenses and short-term borrowings approximate fair value
due to the short-term maturity of the instruments.
76