Computer Associates 2016 Annual Report Download

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From Ideas
to Outcomes
ANNUAL REPORT 2016

Table of contents

  • Page 1
    From Ideas to Outcomes ANNUAL REPORT 2016

  • Page 2

  • Page 3
    ... unserviceable. Applications are the new infrastructure that create jobs and transform industries. Applications are truly changing the world. Our mission at CA Technologies is to remove the barriers between ideas and outcomes. Powering our customers' ideas requires scalable, reliable and secure...

  • Page 4
    ...éal's U.S. business to build relationships directly with the women and men who consume their products every day. Like L'Oréal, we help customers simplify complexity. Processes such as real-time inventory management, cloud-based pricing engines and the careful curation of brand image all support an...

  • Page 5
    ... around the world. We understand that one of our key competitive advantages at our largest customers is our combined Enterprise and Mainframe Solutions portfolio. It is one of the factors that makes CA such a valued technology partner to our customers. CA Technologies Annual Report 2016 3

  • Page 6
    ... of Directors. Agile In fiscal 2016, following our acquisition of Rally Software Development Corp. -an Agile leader-we completed the rollout of Agile across our development organization. This highly iterative methodology requires on-going customer feedback and replaces the more serial and linear...

  • Page 7
    " The pace of innovation has accelerated, technology trends have shifted, platforms have come and gone, and leadership has rotated. What remains consistent is the resilience of this company and the people who proudly work here." CA Technologies Annual Report 2016 5

  • Page 8
    ...that matters and building solutions that are easy to install, easy to use and easy to manage. acquired technologies is paramount. This is the hallmark of the best technology companies in the world. That said, we intend to simultaneously execute on our M&A strategy. We will continue to be thoughtful...

  • Page 9
    ... fact, our Customer Success program is considered best practices-and has been used as the measure by which other technology solutions providers are compared. We know that our ability to deliver a superior customer and partner experience serves as a source of sustainable competitive advantage for CA...

  • Page 10
    ... thoughtful discipline and do what is in the best interest of our customers, employees and shareholders over the long term. Thank you for your continued interest in and support of CA. Best regards, Michael P. Gregoire Chief Executive Officer CA Technologies 8 CA Technologies Annual Report 2016

  • Page 11
    ...in its charter) Delaware (State or Other Jurisdiction of Incorporation or Organization) 13-2857434 (I.R.S. Employer Identification Number) 520 Madison Avenue, New York, New York (Address of Principal Executive Offices) 1-800-225-5224 (Registrant's telephone number, including area code) Securities...

  • Page 12
    ... Financial Disclosure Item 9A. Controls and Procedures Item 9B. Other Information Part III Item 10. Directors, Executive Officers and Corporate Governance Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Item 13...

  • Page 13
    ... Annual Report on Form 10-K (Form 10-K) contains certain forward-looking information relating to CA, Inc. (which we refer to as the "Company," "Registrant," "CA Technologies," "CA," "we," "our," or "us") that is based on the beliefs of, and assumptions made by, our management as well as information...

  • Page 14
    ... data. New solutions include CA Live API Creator which enables customers to rapidly create API connectors from data sources like MongoDB and Oracle SQL, supporting developers' accelerating pace of innovation. Additionally, CA Mobile App Services provides common back-end services, like open software...

  • Page 15
    ...Xceedium) during fiscal 2016 expanded our PAM solutions that enable customers to control and monitor privileged user access and activity, detecting and preventing the threat of internal and external attacks. • Identity Management. We offer a unified solution with user provisioning, user management...

  • Page 16
    ...Services works with customers to navigate complex business and technology challenges and deliver the services that best meet the customer's business goals throughout the entire solution lifecycle. In fiscal 2016, as a result of our acquisition of Rally, Agile coaches, whose primary focus is training...

  • Page 17
    ... financial services providers, government agencies, global IT service providers, telecommunication providers, manufacturers, technology companies, retailers, educational organizations and health care institutions. Our traditional customers generally consist of large enterprises that have computing...

  • Page 18
    ... technical support engineers, community managers and an advanced customer data analytics team that together have one common goal: deliver a superior end-to-end customer experience that creates and sustains satisfaction and loyalty, and serves as a source of competitive advantage for CA. The Customer...

  • Page 19
    ..., and support our software. We operate principal research and development centers across the US, including New York, California, Colorado, Texas, Illinois and Massachusetts. Internationally, we have principal centers in Prague, Czech Republic as well as Hyderabad and Bangalore, India. In fiscal 2016...

  • Page 20
    ... products and technology, we are not aware of any single patent that is essential to us or to any of our reportable segments. The source code for our products is protected both as trade secrets and as copyrighted works. Our customers do not generally have access to the source code for our products...

  • Page 21
    ... to meet changes in the technology landscape. They are generally delivering their solutions in cloud-based and/or lightweight try-and-buy models. Our competitors in various parts of our businesses include Apigee Corporation, AppDynamics, Inc., Atlassian Corporation, Plc, BMC Software Inc., Compuware...

  • Page 22
    ... not previously provided by us; • Effectively manage the strategic shift in our business model to develop more easily installed software, provide additional SaaS offerings and refocus our professional services and education engagements on those engagements that are connected to new product sales...

  • Page 23
    ... our business, financial condition, operating results and cash flow. Our competitors include large vendors of hardware and operating system software and service providers. The widespread inclusion of products that perform the same or similar functions as our products bundled within computer hardware...

  • Page 24
    ... the UK Bribery Act of 2010, the potential impact of recent EU activity regarding data transfer restrictions as well as the impending General Data Protection Regulation (GDPR) and Network and Information Security (NIS) Directive in the EU, trade controls and sanctions administered by the U.S. Office...

  • Page 25
    .... Failure to ensure effective transfers of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution. Our success depends in a large part on the continued contribution of our senior management and other key employees. A loss of a significant number of...

  • Page 26
    ... and debarment. Approximately 7% of our total revenue backlog at March 31, 2016 is associated with multi-year contracts signed with the U.S. federal government and other U.S. state and local government agencies. These contracts are generally subject to annual fiscal funding approval and may be...

  • Page 27
    ..., delays in adapting our information systems to address new business models, such as SaaS, could limit the success or result in the failure of those initiatives and impair the effectiveness of our internal controls. Although we have implemented a disaster recovery program, our system redundancy may...

  • Page 28
    ...proprietary technology, including our software and our source code for that software, both organically developed and acquired. Failure to protect such technology could lead to the loss of valuable assets and our competitive advantage. We protect our proprietary information through the use of patents...

  • Page 29
    ...driven in part by the varying terms and conditions of our software contracts. These factors can make it difficult for us to predict sales and cash flow on a quarterly basis. Any failure or delay in executing new or renewed license agreements in a given quarter could cause declines in some of our key...

  • Page 30
    ... could materially adversely affect our reported financial results. Failure by us to effectively execute on our announced workforce reductions, workforce rebalancing and facilities consolidations could result in total costs that are greater than expected or revenues that are less than anticipated...

  • Page 31
    ... Data Systems, Inc., a global technology services company, from 1996 to April 2000, and in various other roles from 1988 to 1996. Richard J. Beckert, 54, has been Executive Vice President and Chief Financial Officer of the Company since May 2011. He served as the Company's Corporate Controller...

  • Page 32
    ... 2008. Jacob Lamm, 51, has been the Company's Executive Vice President, Strategy and Corporate Development since February 2009. He is responsible for directing the Company's overall business strategy, as well as the Company's strategy for acquisitions. Mr. Lamm has held various management positions...

  • Page 33
    ...2016: Issuer Purchases of Equity Securities Average Price Paid Per Share Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs...707 million during fiscal 2016. In November 2015, the Board approved a new stock repurchase program that authorized us to acquire up to $750 ...

  • Page 34
    ... that are designed for distributed and cloud computing environments and run on industry standard servers. Within Enterprise Solutions, our areas of focus include: • Agile Management enables customers to more effectively plan and manage the software development process and the business of IT...

  • Page 35
    ... who provide a variety of services, such as consulting, implementation, application management services, education and support services, to both commercial and government customers. In fiscal 2016, as a result of our acquisition of Rally, Agile coaches, whose primary focus is training customers on...

  • Page 36
    ... and prospects. CA Technologies Business Model We generate revenue from the following sources: license fees - licensing our products on a right-to-use basis; maintenance fees - providing customer technical support and product enhancements; service fees - providing professional services such as...

  • Page 37
    ... with the year-ago period primarily due to the increase in renewal bookings relating to our second quarter fiscal 2016 acquisitions. • Total new product sales increased by a percentage in the mid-single digits for fiscal 2016 compared with the year-ago period. This increase was primarily due to...

  • Page 38
    ... license agreements that were in effect during the period, generally including maintenance that is bundled with and not separately identifiable from software usage fees or product sales, (ii) maintenance agreements associated with providing customer technical support and access to software...

  • Page 39
    ... by us, requires estimation by management and has been historically reported by providing only growth rate comparisons. Within a given period, the amount of new product sales may not be material to the change in our total bookings or revenue compared with prior periods. New product sales can be...

  • Page 40
    .... Year Ended March 31, 2016(1) 2015(1) 2014(1) Dollar Change 2016/2015 (dollars in millions) Percent Change 2016/2015 Dollar Change 2015/2014 Percent Change 2015/2014 Revenue: Subscription and maintenance Professional services Software fees and other Total revenue Expenses: Costs of licensing and...

  • Page 41
    ... and fiscal 2015. For fiscal 2016, professional services revenue includes revenue of $18 million from our second quarter fiscal 2016 acquisition of Rally. For the long term, we expect new versions of our on-premise software to be easier to implement and a higher percentage of our business to shift...

  • Page 42
    ...services are provided, generally ratably over the term of the SaaS arrangement, rather than up-front. Software fees and other revenue for fiscal 2016 increased compared with fiscal 2015 due to an increase of $70 million from revenue associated with our second quarter fiscal 2016 acquisitions, mainly...

  • Page 43
    ... 2016 acquisitions of $9 million. Costs of licensing and maintenance for fiscal 2015 were generally consistent with fiscal 2014. Cost of Professional Services Cost of professional services consists primarily of our personnel-related costs associated with providing professional services and training...

  • Page 44
    ... and Enhancements For fiscal 2016 and fiscal 2015, product development and enhancements expenses represented 14% of total revenue. The decrease in product development and enhancements expenses was primarily attributable to the decrease in non-acquisition personnel-related costs of $45 million...

  • Page 45
    ...(ERwin) for $50 million and recognized a gain on disposal of $4 million, including tax expense of $24 million. The effective tax rate on the disposal was unfavorably affected by non-deductible goodwill of $36 million. In the second quarter of fiscal 2015, we sold CA arcserve data protection solution...

  • Page 46
    ... developed software costs previously capitalized from segment expenses. A measure of segment assets is not currently provided to our Chief Executive Officer and has therefore not been disclosed. Segment financial information for fiscal 2016, 2015 and 2014 is as follows: Mainframe Solutions Revenue...

  • Page 47
    ... the size and number of services engagements during fiscal 2015, including non-core engagements with government customers that are not directly related to our software product sales. We have also experienced a decline in professional services engagements that are connected to new product sales, due...

  • Page 48
    ...2016 acquisitions and new product sales associated with the aforementioned renewal with a large system integrator. Total new product sales decreased in the Asia Pacific Japan and Europe, Middle East and Africa regions. Bookings - Fiscal 2015 Compared with Fiscal 2014 Total Bookings: For fiscal 2015...

  • Page 49
    ... level of renewal bookings executed during fiscal 2015 compared with fiscal 2014. The weighted average subscription and maintenance license agreement duration in years decreased from 3.35 in fiscal 2014 to 3.24 in fiscal 2015. Total New Product Sales: Within total bookings, total new product sales...

  • Page 50
    ...our subscription and maintenance agreements, customers generally make installment payments over the term of the agreement, often with at least one payment due at contract execution, for the right to use our software products and receive product support, software fixes and new products when available...

  • Page 51
    ... the contract value, under new or renewed license agreements to be executed in future periods. For fiscal 2016, gross receipts related to single installments for the entire contract value, or a substantial portion of the contract value, were $421 million compared with $514 million in fiscal 2015. In...

  • Page 52
    ... fiscal 2015. Net cash provided by continuing operating activities increased slightly due to lower disbursements, lower payments associated with our Fiscal 2014 Plan and lower income tax payments, net, offset by a decrease in cash collections from billings, which included lower single installment...

  • Page 53
    ... (10) $ 1,247 Significant changes to our debt obligations during fiscal 2016 consisted of the following: Term Loan: In October 2015, we entered into a Term Loan Agreement with Bank of America, N.A. (Term Loan Agreement). The Term Loan Agreement provides for a $300 million term loan (Term Loan) with...

  • Page 54
    ...failure to make payments when due and failure to comply with covenants. At March 31, 2016, our senior unsecured notes were rated Baa2 (stable) by Moody's Investor Services... during fiscal 2016. In November 2015, the Board approved a new stock repurchase program that authorized us to acquire up to ...

  • Page 55
    ... primary sources: (1) licensing software products, including SaaS license agreements; (2) providing customer technical support (referred to as maintenance); and (3) providing professional services, such as product implementation, consulting, customer education and customer training. Software license...

  • Page 56
    ... the services are performed. Revenue and costs from committed professional services that are sold as part of a software license agreement are deferred and recognized on a ratable basis over the life of the related software transaction. In the event that agreements with our customers are executed in...

  • Page 57
    ... of our reporting units exceeded the carrying amount of the unit by more than 10% of the carrying amount. The carrying values of purchased software, internally developed software and other intangible assets are reviewed for recoverability on a quarterly basis. The facts and circumstances considered...

  • Page 58
    ... for general release to customers. Judgment is required in determining when technological feasibility of a product is established and assumptions are used that reflect our best estimates and is influenced by our product release strategies and software development methodologies. Annual amortization...

  • Page 59
    ... 2016 and will prospectively apply the new standard to business combination adjustments identified after the date of adoption. The adoption of this guidance did not have a material effect on our consolidated financial statements. In November 2015, the FASB issued Accounting Standards Update No. 2015...

  • Page 60
    ...May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which creates new ASC Topic 606 (Topic 606) that will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB issued a one-year deferral...

  • Page 61
    ..., the Chief Executive Officer and the Chief Financial Officer have concluded that these disclosure controls and procedures are effective at the end of the period covered by this Form 10-K. (b) Management's Report on Internal Control Over Financial Reporting The Company's management is responsible...

  • Page 62
    ...-15(f) under the Exchange Act, that occurred during the fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. Item 9B. Other Information. None 52

  • Page 63
    ... performing similar functions. Our Code of Conduct is available on our website at www.ca.com/invest. Any amendment or waiver to the "code of ethics" provisions of our Code of Conduct that applies to our directors or executive officers will be included in a report filed with the SEC on Form 8-K or...

  • Page 64
    ... as of April 27, 2007). CA, Inc. 2002 Compensation Plan for Non-Employee Directors. Deferred Prosecution Agreement, including the related Information and Stipulation of Facts. Final Consent Judgment of Permanent Injunction and Other Relief, including SEC complaint. Form of Restricted Stock Unit...

  • Page 65
    ... (Employment Agreement) under the CA, Inc. 2002 Incentive Plan. Program whereby certain designated employees, including the Company's Named Executive Officers, are provided with certain covered medical services, effective August 1, 2005. Amended and Restated CA, Inc. Executive Deferred Compensation...

  • Page 66
    ... from the Company to Adam Elster regarding terms of employment. Separation Agreement and General Claims Release dated June 23, 2015 between the Company and Amit Chatterjee. CA, Inc. Executive Severance Policy effective May 13, 2014. Summary description of Director compensation. Letter dated June 14...

  • Page 67
    ...§906 of the Sarbanes-Oxley Act of 2002. The following financial statements from CA, Inc.'s Annual Report on Form 10-K for the year ended March 31, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets - March 31, 2016 and March 31, 2015. (ii) Consolidated...

  • Page 68
    ... this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Michael P. Gregoire Michael P. Gregoire Chief Executive Officer (Principal Executive Officer) By: /s/ Richard J. Beckert Richard J. Beckert Executive Vice...

  • Page 69
    ... * Jens Alder * Raymond J. Bromark * Gary J. Fernandes * Michael P. Gregoire * Rohit Kapoor * Jeffrey G. Katz * Kay Koplovitz * Christopher B. Lofgren * Richard Sulpizio * Laura S. Unger * Arthur F. Weinbach * Renato (Ron) Zambonini *By: /s/ Michael Bisignano Michael Bisignano Attorney-in-fact Dated...

  • Page 70
    CA, Inc. and Subsidiaries New York, New York Annual Report on Form 10-K Item 8, Item 9A, Item 15(a)(1) and (2), and Item 15(c) List of Consolidated Financial Statements and Financial Statement Schedule Consolidated Financial Statements and Financial Statement Schedule Year ended March 31, 2016 PAGE...

  • Page 71
    ...internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control...

  • Page 72
    ...debt Accounts payable Accrued salaries, wages and commissions Accrued expenses and other current liabilities Deferred revenue (billed or collected) Taxes payable, other than income taxes payable Federal, state and foreign income taxes payable Deferred income taxes Total current liabilities Long-term...

  • Page 73
    CA, Inc. and Subsidiaries Consolidated Statements of Operations Year Ended March 31, (in millions, except per share amounts) 2016 2015 2014 Revenue: Subscription and maintenance Professional services Software fees and other Total revenue Expenses: Costs of licensing and maintenance Cost of ...

  • Page 74
    CA, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income Year Ended March 31, (in millions) 2016 2015 2014 Net income Other comprehensive income (loss): Foreign currency translation adjustments Total other comprehensive income (loss) Comprehensive income See accompanying Notes to ...

  • Page 75
    ...declared Release of restricted stock, exercise of common stock options, ESPP and other items Treasury stock purchased Balance at March 31, 2015 Net income Other comprehensive income Comprehensive income Share-based compensation Dividends declared Release of restricted stock, exercise of common stock...

  • Page 76
    ... in accrued salaries, wages and commissions Changes in other operating assets and liabilities Net cash provided by operating activities - continuing operations Investing activities from continuing operations: Acquisitions of businesses, net of cash acquired, and purchased software Purchases of...

  • Page 77
    ... quarter of fiscal year 2016, the Company sold its CA ERwin Data Modeling solution assets (ERwin). In the second quarter of fiscal year 2015, the Company sold its CA arcserve data protection solution assets (arcserve). The results of operations associated with these businesses have been presented as...

  • Page 78
    ... agreements and also generally include maintenance; (ii) maintenance agreements associated with providing customer technical support and access to software fixes and upgrades which are separately identifiable from software usage fees or product sales; or (iii) software license agreements bundled...

  • Page 79
    ... equivalents were maintained outside the United States at March 31, 2016 and 2015, respectively. Total interest income, which primarily relates to the Company's cash and cash equivalent balances and investments, for fiscal years 2016, 2015 and 2014 was approximately $30 million, $30 million and $21...

  • Page 80
    ... is equal to the fair value of the acquired software technology at the acquisition date. Annual amortization of purchased software products is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross...

  • Page 81
    ...Unearned revenue on billed installments (collected or uncollected) is reported as deferred revenue in the liability section of the Company's Consolidated Balance Sheets. Deferred revenue (billed or collected) excludes unbilled contractual commitments executed under license and maintenance agreements...

  • Page 82
    ...May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which creates new ASC Topic 606 (Topic 606) that will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In July 2015, the FASB issued a one-year deferral...

  • Page 83
    ... ASU 2016-09 will have on its consolidated financial statements and related disclosures. Note 2 - Acquisitions On July 8, 2015, the Company completed its acquisition of Rally Software Development Corp. (Rally), a provider of Agile development software and services. The acquisition of Rally broadens...

  • Page 84
    ... from discontinued operations for fiscal years 2016, 2015 and 2014 consisted of the following: Year Ended March 31, (in millions) 2016 2015 2014 Subscription and maintenance Software fees and other Total revenue Income from operations of discontinued components, net of tax expense of $7 million...

  • Page 85
    ... balances include revenue recognized in advance of customer billings but do not include unbilled contractual commitments executed under license agreements. The components of "Trade accounts receivable, net" were as follows: At March 31, (in millions) 2016 2015 Accounts receivable - billed Accounts...

  • Page 86
    ... Revenue The current and noncurrent components of "Deferred revenue (billed or collected)" at March 31, 2016 and March 31, 2015 were as follows: At March 31, (in millions) 2016 2015 Current: Subscription and maintenance Professional services Software fees and other Total deferred revenue (billed...

  • Page 87
    ... billion. The facility also provides the Company with an option to increase the available credit by an amount up to $500 million. This option is subject to certain conditions and the agreement of the facility lenders. In July 2015 and in connection with the acquisition of Rally, the Company borrowed...

  • Page 88
    ...-annual ...control, each note holder will have the right to require the Company to repurchase all or any part of the holder's 3.600% Notes in cash at a price...associated...2015, the Company entered into a Term Loan Agreement with Bank of America, N.A. (Term Loan Agreement). The Term Loan Agreement provides...

  • Page 89
    ... of credit were pledged in support of bank guarantees and other local credit lines. At March 31, 2016 and 2015, none of these arrangements were drawn down by third parties. The Company uses a notional pooling arrangement with an international bank to help manage global liquidity. Under this pooling...

  • Page 90
    ... in the Consolidated Statements of Operations Location of Amounts Recognized (in millions) 2016 Year Ended March 31, 2015 2014 Interest expense, net - interest rate swaps designated as fair value hedges Other expenses, net - foreign currency contracts $ $ - 6 $ $ (8) $ (31) $ (12) (20) The...

  • Page 91
    ...On May 29, 2014, the case was unsealed. Both the DOJ and the individual plaintiff have filed amended complaints. The current complaints relate to government sales transactions under the Company's General Services Administration (GSA) schedule contract, entered into in 2002 and extended until present...

  • Page 92
    ... could trigger the indemnification provision may result in the Company recording a liability in the future, which would impact the results of operations for that period. On November 13, 2015, the Board approved a new stock repurchase program that authorized the Company to acquire up to $750 million...

  • Page 93
    ... offeror and its affiliates and associates), upon providing proper written notice, may direct the Board to call a special meeting of shareholders for the purposes of voting on a resolution authorizing the redemption of the Rights pursuant to the provisions of the Rights Agreement. Such meeting must...

  • Page 94
    ... settles awards under employee and non-employee director compensation plans with stock held in treasury. All Plans, with the exception of acquired companies' stock plans, have been approved by the Company's shareholders. The Company grants all new annual performance cash incentive bonuses, long-term...

  • Page 95
    ... for the periods indicated: Year Ended March 31, (in millions) 2016 2015 2014 Costs of licensing and maintenance Cost of professional services Selling and marketing General and administrative Product development and enhancements Share-based compensation expense before tax Income tax benefit...

  • Page 96
    ... (the average of the vesting period and option term). The following table summarizes information on options exercised for the periods indicated: Year Ended March 31, (in millions) 2016 2015 2014 Cash received from options exercised Intrinsic value of options exercised $ $ 4 1 $ $ 22 3 $ $ 88...

  • Page 97
    ...to employees, subject to restrictions on transfer and subject to forfeiture until the...35 The total fair value on the vesting date of RSAs and RSUs released during fiscal years 2016, 2015 and 2014 ... Compensation Committee. These PSUs include 1-year and 3-year performance periods for senior executives ...

  • Page 98
    ... is semi-annual and allows participants to purchase the Company's common stock at 95% of the closing price of the stock on the last day of each offer period, on June 30 and December 31, respectively. The ESPP is noncompensatory. During each of the fiscal years ended March 31, 2016, 2015 and 2014...

  • Page 99
    ... $2 million at March 31, 2015. The increase in the valuation allowance at March 31, 2016 primarily related to acquired NOL's which are subject to annual limitations under IRS code Section 382, and NOL's and other deferred tax assets in foreign jurisdictions that in management's judgment will not be...

  • Page 100
    ... Geographic Information In accordance with FASB ASC Topic 280, Segment Reporting, the Company disaggregates its operations into Mainframe Solutions, Enterprise Solutions and Services segments, which is utilized by the Chief Operating Decision Maker, who is the Company's Chief Executive Officer, for...

  • Page 101
    ... and Exit Costs," for additional information. The Company's segment information for fiscal years 2016, 2015 and 2014 was as follows: Year Ended March 31, 2016 (dollars in millions) Mainframe Solutions Enterprise Solutions Services Total Revenue Expenses Segment profit Segment operating margin...

  • Page 102
    ... expenses, net consists of costs associated with the Fiscal 2014 Plan and other miscellaneous items. $ 1,597 124 58 - 149 87 17 47 $ 1,115 Year Ended March 31, 2014 (dollars in millions) Mainframe Solutions Enterprise Solutions Services Total Revenue Expenses Segment profit Segment operating...

  • Page 103
    ... is allocated to a geographic area based on the location of the sale, which is generally the customer's country of domicile. No single customer accounted for 10% or more of total revenue for fiscal year 2016, 2015 or 2014. Note 18 - Profit Sharing Plan The Company maintains a defined contribution...

  • Page 104
    ...) Charged/ (Credited) to Costs and Expenses Balance at End of Period Description Deductions(1) Allowance for doubtful accounts (in millions) Year ended March 31, 2016 Year ended March 31, 2015 Year ended March 31, 2014 (1) Write-off of amounts against allowance provided $ $ $ 17 19 24...

  • Page 105
    COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among CA, Inc., the S&P 500 Index, and S&P Software $250 CA, Inc. S&P 500 $200 S&P Software *$100 invested on 3/31/11 in stock or index, including reinvestment of dividends. Fiscal year ending March 31. Copyright© 2016 S&P, a division of McGraw Hill ...

  • Page 106
    ... Executive Offices CA, Inc. 520 Madison Avenue New York, NY 10022 1-800-225-5224 Stockholder Information A copy of the Annual Report on Form 10-K, filed with the Securities and Exchange Commission, is available without charge upon written request addressed to: Investor Relations CA, Inc. 520 Madison...

  • Page 107
    ...Chief Marketing Officer Otto Berkes Chief Technology Officer Jacob Lamm Executive Vice President, Strategy and Corporate Development Michael C. Bisignano Executive Vice President, General Counsel and Corporate Secretary Paul L. Pronsati Executive Vice President, Global Operations and Information...

  • Page 108
    For more information on CA Technologies, please visit ca.com Copyright © 2016 CA, Inc. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. CA Technologies continues to pursue new discoveries that advance sustainability ...