Computer Associates 2016 Annual Report Download - page 52

The increase in billings backlog at March 31, 2016 compared with March 31, 2015 was primarily a result of the renewal with a
large system integrator in excess of $500 million that occurred during the second quarter of fiscal 2016. There was an increase of
10% in billings backlog at March 31, 2016 compared with March 31, 2015. Excluding the favorable effect of foreign exchange,
billings backlog increased 9% at March 31, 2016 compared with March 31, 2015.
The increase in expected future cash collections at March 31, 2016 compared with March 31, 2015 was primarily driven by the
increase in billings backlog, as described above, partially offset by a decrease in trade accounts receivable, net.
The increase in total revenue backlog at March 31, 2016 compared with March 31, 2015 was primarily a result of the
aforementioned renewal with the large system integrator. There was an increase in total revenue backlog of 5% at March 31,
2016 compared with March 31, 2015. Excluding the favorable effect of foreign exchange, total revenue backlog increased 4% at
March 31, 2016 compared with March 31, 2015.
Our current revenue backlog, which is our revenue to be recognized within the next 12 months, decreased 1% at March 31, 2016
compared with March 31, 2015 due to the timing of large deals within the renewal portfolio, partially offset by an increase in
SaaS bookings from Rally. Our current revenue backlog will be negatively affected for contracts within 12 months of their
renewal dates. Given the timing of our renewal portfolio, we expect our fiscal 2017 renewals to increase by a percentage in the
mid-single digits.
Generally, we believe that a change in the current portion of revenue backlog on a year-over-year basis is an indicator of future
subscription and maintenance revenue performance due to the high percentage of our revenue that is recognized from license
agreements that are already committed and being recognized ratably. We also believe that we would need to demonstrate
multiple quarters of total new product and capacity sales growth while maintaining a renewal yield in the low 90% range before
growth in the current portion of revenue backlog would be likely to occur.
Unbilled amounts relating to subscription and maintenance licenses are mostly collectible over a period of one-to-five years and
at March 31, 2016, on a cumulative basis, 47%, 77%, 89%, 96% and 100% come due within fiscal 2017 through 2021,
respectively.
Cash Provided by Operating Activities
Year Ended March 31, $ Change
2016(1) 2015(1) 2014(1) 2016 / 2015 2015 / 2014
(in millions)
Cash collections from billings(2) $ 4,229 $ 4,515 $ 4,653 $ (286) $ (138)
Vendor disbursements and payroll(2) (2,773) (2,960) (3,025) 187 65
Income tax payments, net (365) (411) (489) 46 78
Other disbursements, net(3) (57) (114) (166) 57 52
Net cash provided by continuing operating activities $ 1,034 $ 1,030 $ 973 $ 4 $ 57
(1) Information presented excludes the results of our discontinued operations.
(2) Amounts include value added taxes and sales taxes.
(3) For fiscal 2016, amount includes $5 million of payments associated with the Fiscal 2014 Plan, interest, prior period restructuring plans and miscellaneous receipts and disbursements. For
fiscal 2015, amount includes $66 million of payments associated with the Fiscal 2014 Plan, interest, prior period restructuring plans and miscellaneous receipts and disbursements. For
fiscal 2014, amount includes $105 million of payments associated with the Fiscal 2014 Plan, interest, prior period restructuring plans and miscellaneous receipts and disbursements.
Fiscal 2016 versus Fiscal 2015
Operating Activities
Net cash provided by continuing operating activities for fiscal 2016 was $1,034 million, representing an increase of $4 million
compared with 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 payments. There was an overall unfavorable effect from foreign exchange
of $82 million on net cash provided by continuing operating activities.
Investing Activities
Net cash used in investing activities from continuing operations for fiscal 2016 was $645 million compared with $91 million for
fiscal 2015. The increase in net cash used in investing activities compared with the year-ago period was primarily due to the
increase in cash paid for acquisitions and purchased software of $610 million, partially offset by proceeds of $48 million from the
sale of short-term investments, which were received from the acquisition of Rally during the second quarter of fiscal 2016.
Financing Activities
Net cash used in financing activities from continuing operations for fiscal 2016 was $443 million compared with $977 million for
fiscal 2015. The decrease in net cash used in financing activities was primarily due to the $1.1 billion of debt borrowings, which
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