Computer Associates 2006 Annual Report Download - page 140

Note 5 — Trade and Installment Accounts Receivable (Continued)
The components of unearned revenue consist of the following:
March 31,
2006
March 31,
2005
(restated)
(in millions)
Current:
Unamortized discounts ......................................... $ 44 $ 62
Unearned maintenance ......................................... 4 23
Deferred subscription revenue (billed, uncollected) .................... 534 314
Unearned professional services ................................... 47 14
Total unearned revenue — current ................................. $629 $413
Noncurrent:
Unamortized discounts ......................................... $ 34 $ 79
Unearned maintenance ......................................... 8 32
Total unearned revenue — noncurrent .............................. $ 42 $111
Note 6 — Debt
Credit Facilities
As of March 31, 2006 and 2005, the Company’s committed bank credit facilities consisted of a $1 billion, unsecured
bank revolving credit facility expiring in December 2008 (the 2004 Revolving Credit Facility).
Maximum
Available
Outstanding
Balance
Maximum
Available
Outstanding
Balance
2006 2005
March 31,
(in millions)
2004 Revolving Credit Facility .............. $1,000 — $1,000 —
2004 Revolving Credit Facility
In December 2004, the Company entered into a new unsecured, revolving credit facility (the 2004 Revolving Credit
Facility). The maximum committed amount available under the 2004 Revolving Credit Facility is $1 billion,
exclusive of incremental credit increases of up to an additional $250 million which are available subject to certain
conditions and the agreement of the Company’s lenders. The 2004 Revolving Credit Facility expires December
2008 and no amount was drawn as of March 31, 2006 or March 31, 2005.
Borrowings under the 2004 Revolving Credit Facility will bear interest at a rate dependent on the Company’s credit
ratings at the time of such borrowings and will be calculated according to a base rate or a Eurocurrency rate, as the
case may be, plus an applicable margin and utilization fee. Depending on the Company’s credit rating at the time of
borrowing, the applicable margin can range from 0% to 0.325% for a base rate borrowing and from 0.50% to
1.325% for a Eurocurrency borrowing, and the utilization fee can range from 0.125% to 0.250%. At the Company’s
current credit rating in July 2006, the applicable margin would be 0.025% for a base rate borrowing and 1.025% for
a Eurocurrency borrowing, and the utilization fee would be 0.125%. In addition, the Company must pay facility fees
quarterly at rates dependent on the Company’s credit ratings. The facility fees can range from 0.125% to 0.30% of
the aggregate amount of each lender’s full revolving credit commitment (without taking into account any
outstanding borrowings under such commitments). At the Company’s credit ratings in July 2006, the facility
fee is 0.225% of the aggregate amount of each lender’s revolving credit commitment.
The 2004 Revolving Credit Facility contains customary covenants for transactions of this type, including two
financial covenants: (i) for the 12-months ending each quarter-end, the ratio of consolidated debt for borrowed
money to consolidated cash flow, each as defined in the 2004 Revolving Credit Facility, must not exceed 3.25 for the
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