Computer Associates 2005 Annual Report Download - page 121

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Table of Contents
Note 4 — Segment and Geographic Information (Continued)
United
States Europe Other Eliminations Total
(in millions)
March 31, 2004
Revenue (restated):
To unaffiliated customers $1,755 $998 $567 $
—
$3,320
Between geographic areas(1) 502
—
—
(502)
—
Total Revenue $2,257 $998 $567 $ (502) $3,320
Property and equipment, net $ 430 $ 182 $ 29 $
—
$641
Identifiable assets (restated) 10,098 1,054 380 (772) 10,760
Total liabilities (restated) 5,922 386 392 (772) 5,928
March 31, 2003
Revenue (restated):
To unaffiliated customers $1,748 $837 $472 $
—
$3,057
Between geographic areas(1) 302
—
—
(302)
—
Total Revenue $2,050 $837 $472 $ (302) $3,057
Property and equipment, net $ 474 $ 164 $ 24 $
—
$662
Identifiable assets (restated) 10,797 816 423 (724) 11,312
Total liabilities (restated) 6,766 351 442 (724) 6,835
(1) Represents royalties
from foreign
subsidiaries
determined as a
percentage of
certain amounts
invoiced to
customers.
No single customer accounted for 10% or more of total revenue for the fiscal years ended March 31, 2005, 2004, or 2003.
Note 5 — Trade and Installment Accounts Receivable
The Company uses installment license agreements as a standard business practice and has a history of successfully collecting
substantially all amounts due under the original payment terms without making concessions on payments, software products,
maintenance, or professional services. Net trade and installment accounts receivable represent financial assets derived from the
committed amounts due from customers that have been earned by the Company. These accounts receivable balances exclude
unamortized discounts based on imputed interest for the time value of money for license agreements under the prior business model,
unearned revenue attributable to maintenance, deferred subscription revenue, unearned professional services contracted for in the license
agreement, and allowances for doubtful accounts. Deferred subscription revenue represents the deferred license agreement fees recorded
under the Company’ s Business Model, which will amortize into revenue over the respective license agreement term.
Trade and installment accounts receivable consist of the following:
March 31,
2005 2004
(restated) (restated)
(in millions)
Current:
Billed accounts receivable $ 829 $ 816
Unbilled amounts due within the next 12 months — Business Model 1,794 1,446
Unbilled amounts due within the next 12 months — prior business model 389 715
Less: Allowance for doubtful accounts (33) (64)
Net amounts expected to be collected 2,979 2,913
Less: Unearned revenue — current (2,305) (1,896)
Net trade and installment accounts receivable — current $ 674 $ 1,017
Noncurrent:
Unbilled amounts due beyond the next 12 months — Business Model $ 1,698 $ 1,107
Unbilled amounts due beyond the next 12 months — prior business model 741 1,104