Computer Associates 2016 Annual Report Download - page 61

During fiscal 2016 and 2015, we did not designate our foreign exchange derivatives as hedges. Accordingly, all foreign exchange
derivatives are recorded in our Consolidated Balance Sheets at fair value and unrealized or realized changes in fair value from
these contracts are recorded as “Other expenses, net” in our Consolidated Statements of Operations.
Refer to Note 9, “Derivatives” for additional information regarding our derivative activities.
If foreign exchange rates affecting our business changed by 10% on an overall basis in comparison to the U.S. dollar, the
amount of cash and cash equivalents we would report in U.S. dollars would increase or decrease by approximately $215 million.
Item 8. Financial Statements and Supplementary Data.
Our Consolidated Financial Statements are included in Part IV, Item 15 of this Form 10-K and are incorporated herein by
reference.
The supplementary data specified by Item 302 of Regulation S-K as it relates to selected quarterly data is included in the
“Selected Quarterly Information” section of Item 7, “Management’s Discussion and Analysis of Financial Condition and
Results of Operations.” Information on the effects of changing prices is not required.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
Not applicable.
Item 9A. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and the
Chief Financial Officer, the Company has evaluated the effectiveness of its disclosure controls and procedures as such term is
defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act). Based on
that evaluation, 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 for establishing and maintaining adequate internal control over financial reporting
as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s 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.
The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are
being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that
could have a material effect on the Company’s financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore,
even those systems determined to be effective can provide only reasonable assurance with respect to financial statement
preparation and presentation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Management conducted its evaluation of the effectiveness of internal control over financial reporting at March 31, 2016 based
on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). Management’s evaluation included the design of the Company’s internal control over
financial reporting and the operating effectiveness of the Company’s internal control over financial reporting. Based on that
evaluation, the Company’s management concluded that the Company’s internal control over financial reporting was effective as
of the end of the period covered by this Form 10-K.
The Company’s independent registered public accounting firm, KPMG LLP, has audited the effectiveness of the Company’s
internal control over financial reporting as stated in their report which appears on page 61 of this Form 10-K.
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