Computer Associates 2006 Annual Report Download - page 139

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Note 4 — Segment and Geographic Information (Continued)
United
States Europe Other Eliminations Total
(in millions)
March 31, 2004
Revenue (restated):
To unaffiliated customers ............... $1,766 $ 999 $567 $ — $ 3,332
Between geographic areas
(1)
............ 502 — — (502) —
Total Revenue ......................... 2,268 999 567 (502) 3,332
Property and equipment, net .............. 430 182 29 — 641
Identifiable assets (restated) ............... 9,427 1,054 381 — 10,862
Total liabilities (restated) ................. 4,940 504 499 — 5,943
(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, 2006, 2005, or
2004.
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 the Company’s customers
that have been earned by the Company. These accounts receivable balances are reflected net of unamortized
discounts based on imputed interest for the time value of money for license agreements under our prior business
model, unearned revenue attributable to maintenance, unearned professional services contracted for in the license
agreement, and allowances for doubtful accounts. These balances do not include unbilled contractual commitments
executed under the Company’s current business model. Such committed amounts are summarized in Management’s
Discussion and Analysis of Financial Condition and Results of Operations. Trade and installment accounts
receivable are comprised of the following components:
March 31,
2006
March 31,
2005
(restated)
(in millions)
Current:
Accounts receivable . . ......................................... $828 $794
Other receivables ............................................. 77 39
Unbilled amounts due within the next 12 months — prior business model.... 254 391
Less: Allowance for doubtful accounts ............................. (25) (35)
Less: Unearned revenue — current ................................ (629) (413)
Net trade and installment accounts receivable — current ................ $505 $776
Noncurrent:
Unbilled amounts due beyond the next 12 months — prior business model . . . $ 511 $ 759
Less: Allowance for doubtful accounts ............................. (20) (53)
Less: Unearned revenue — noncurrent .............................. (42) (111)
Net installment accounts receivable — noncurrent ..................... $449 $595
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