Computer Associates 2005 Annual Report Download - page 120

Table of Contents
Note 3 — Marketable Securities (Continued)
The Company realized gains on marketable securities of approximately $8 million and $1 million for the fiscal years ended March 31,
2005 and 2004, respectively.
Interest income for the fiscal years ended March 31, 2005, 2004, and 2003 was $50 million, $22 million, and $26 million, respectively,
and was included in the “Interest expense, net” line item on the Consolidated Statement of Operations.
In March 2005, the Company sold its remaining interest in Viewpoint Corporation (Viewpoint), in a private sale for $12 million, net of
fees. As a result of the sale, the Company reported an $8 million gain that is included in “SG&A” in the Consolidated Statements of
Operations. At the time of the sale, the Company controlled more than 5% of Viewpoint’ s outstanding common stock.
The estimated fair value of debt and equity securities is based upon published closing prices of those securities as of March 31, 2005. For
debt securities, amortized cost is classified by contractual maturity. Expected maturities may differ from contractual maturities because
the issuers of the securities may have the right to prepay obligations without prepayment penalties.
The Company reviewed its investment portfolio for impairment and determined that, as of March 31, 2005, the total unrealized loss for
investments impaired for both greater and less than 12 months was immaterial.
March 31, 2005 March 31, 2004
Estimated Estimated
Cost Fair Value Cost Fair Value
(in millions)
Debt securities, which are recorded at market, maturing:
Within one year or less $ 185 $ 185 $ 29 $ 29
Between one and three years 82 81 46 47
Between three and five years 11 11 16 17
Beyond five years 20 20
—
—
Debt securities,which are recorded at market 298 297 91 93
Equity securities, which are recorded at market
—
—
5 16
Total marketable securities $ 298 $ 297 $ 96 $ 109
Note 4 — Segment and Geographic Information
The Company’ s chief operating decision makers review financial information presented on a consolidated basis, accompanied by
disaggregated information about revenue, by geographic region, for purposes of assessing financial performance and making operating
decisions. Accordingly, the Company considers itself to be operating in a single industry segment. The Company is principally engaged
in the design, development, marketing, licensing, and support of integrated management computer software products operating on a
wide range of hardware platforms and operating systems. The Company does not manage its business by solution or focus area and
therefore does not maintain financial statements on such a basis.
In addition to its United States operations, the Company operates through branches and wholly owned subsidiaries in 47 foreign
countries located in North America (2), Africa (1), South America (6), Asia/Pacific (15), and Europe (23). Revenue is allocated to a
geographic area based on the location of the sale. The following table presents information about the Company by geographic area for
the fiscal years ended March 31, 2005, 2004, and 2003:
United
States Europe Other Eliminations Total
(in millions)
March 31, 2005
Revenue (restated):
To unaffiliated customers $1,838 $1,094 $628 $
—
$3,560
Between geographic areas(1) 472
—
—
(472)
—
Total Revenue $2,310 $1,094 $628 $ (472) $3,560
Property and equipment, net $ 404 $ 184 $ 34 $
—
$622
Identifiable assets (restated) 10,300 1,140 394 (671) 11,163
Total liabilities (restated) 6,205 296 391 (671) 6,221
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