Computer Associates 2006 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2006 Computer Associates annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

CA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
2006 2005 2004
Year Ended March 31,
(restated) (restated)
(in millions)
OPERATING ACTIVITIES:
Net income (loss) ........................................................ $ 159 $ 24 $ (28)
Income from discontinued operations, net of tax .................................... 3 — 61
Adjustment to gain on disposal of discontinued operations, net of tax . ..................... — (2) —
Income (loss) from continuing operations ......................................... 156 26 (89)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by continuing
operating activities:
Depreciation and amortization ............................................. 583 577 597
Provision for deferred income taxes ......................................... (340) (192) (301)
Non-cash compensation expense related to stock and pension plans..................... 99 116 149
Gain on asset divestitures . . .............................................. (7) — (19)
Non-cash charge for in-process research and development . .......................... 18 — —
Foreign currency transaction (gain) loss — before taxes . . .......................... (9) 8 41
Shareholder litigation settlement . . ......................................... — 16 158
Impairment charges for capitalized software .................................... — — 4
Changes in other operating assets and liabilities:
Decrease in trade and installment receivables, net — current ......................... 274 379 238
Decrease in noncurrent installment accounts receivable, net .......................... 142 167 452
Increase in deferred subscription revenue (collected) — current . . ..................... 149 164 220
Increase (decrease) in deferred subscription revenue (collected) — noncurrent . . . ........... 179 (8) 92
Decrease in deferred maintenance revenue . .................................... (20) (27) (55)
Increase in taxes payable, net ............................................. 75 164 35
Restitution fund, net ................................................... (150) 143 10
Restructuring and other, net .............................................. 56 3 —
Increase (decrease) in accounts payable, accrued expenses and other . . .................. 106 (141) 70
Changes in other operating assets and liabilities, excluding effects of acquisitions and
divestitures........................................................ 69 132 (323)
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES . . ................ 1,380 1,527 1,279
INVESTING ACTIVITIES:
Acquisitions, primarily goodwill, purchased software, and other intangible assets, net of cash
acquired ............................................................. (1,011) (469) (52)
Settlements of purchase accounting liabilities . . .................................... (37) (21) (19)
Purchases of property and equipment . . ......................................... (143) (69) (30)
Proceeds from sale of property and equipment . .................................... 2 — 21
Proceeds from divestiture of assets ............................................. — 14 90
Proceeds from sale-leaseback transaction ......................................... 75 — —
Decrease (increase) in restricted cash . . ......................................... 7 (9) (56)
Purchases of marketable securities ............................................. (54) (390) (55)
Sales of marketable securities . . .............................................. 398 274 50
Capitalized software development costs . ......................................... (84) (70) (44)
NET CASH USED IN INVESTING ACTIVITIES . . ............................... (847) (740) (95)
FINANCING ACTIVITIES:
Dividends paid . . ........................................................ (93) (47) (47)
Purchases of treasury stock .................................................. (590) (161) (56)
Debt borrowings . ........................................................ — 1,000 —
Debt repayments . ........................................................ (912) (4) (826)
Debt issuance costs ....................................................... — (12) —
Exercise of call spread option . . .............................................. — (673) —
Exercise of common stock options and other . ...................................... 127 99 78
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES ..................... (1,468) 202 (851)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS BEFORE EFFECT OF
EXCHANGE RATE CHANGES ON CASH . .................................... (935) 989 333
Effect of exchange rate changes on cash ......................................... (63) 47 55
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS . . ..................... (998) 1,036 388
CASH AND CASH EQUIVALENTS — BEGINNING OF YEAR ......................... 2,829 1,793 1,405
CASH AND CASH EQUIVALENTS — END OF YEAR .............................. $1,831 $2,829 $1,793
See Accompanying Notes to the Consolidated Financial Statements.
102