Computer Associates 2006 Annual Report Download - page 67

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owned by us. The actual fair value may not be known until these amounts are sold, securitized, or collected.
Although these customer license agreements commit the customer to payment under a fixed schedule, the
agreements are considered executory in nature due to the ongoing commitment to provide unspecified future
upgrades as part of the agreement terms.
Under our business model, we can estimate the total amounts to be billed and/or collected at the conclusion of a
reporting period. For current business model contracts, amounts we expect to bill within the next fiscal year at
March 31, 2006, declined by $0.11 billion to approximately $1.68 billion from the prior year. Amounts we expect to
bill for periods after 12 months declined by $0.45 billion to $1.24 billion. These declines are due to a combination of
the accelerated payments noted above and the timing of the renewal of existing contracts. The estimated amounts
expected to be collected and a reconciliation of such amounts to the amounts we recorded as accounts receivable are
as follows:
Reconciliation of Amounts to be Collected to Accounts Receivable
March 31,
2006
March 31,
2005
(restated)
(in millions)
Current:
Accounts receivable . . ......................................... $ 828 $ 794
Other receivables ............................................. 77 39
Amounts to be billed within the next 12 months — business model ........ 1,680 1,794
Amounts to be billed within the next 12 months — prior business model .... 254 391
Less: allowance for doubtful accounts .............................. (25) (35)
Net amounts expected to be collected — current ...................... 2,814 2,983
Less:
Unamortized discounts ....................................... (44) (62)
Unearned maintenance ....................................... (4) (23)
Deferred subscription revenue — current, billed ..................... (534) (314)
Deferred subscription value — current, uncollected .................. (476) (661)
Deferred subscription value — noncurrent, uncollected, related to current
accounts receivable ........................................ (1,204) (1,133)
Unearned professional services ................................. (47) (14)
Trade and installment accounts receivable — current, net .............. 505 776
Non-Current:
Amounts to be billed beyond the next 12 months — business model........ 1,236 1,698
Amounts to be billed beyond the next 12 months — prior business model . . . 511 759
Less: allowance for doubtful accounts .............................. (20) (53)
Net amounts expected to be collected — noncurrent.................... 1,727 2,404
Less:
Unamortized discounts ....................................... (34) (79)
Unearned maintenance ....................................... (8) (32)
Deferred subscription value — noncurrent, uncollected ................ (1,236) (1,698)
Installment accounts receivable — noncurrent, net ..................... 449 595
Total accounts receivable, net .................................... $ 954 $1,371
47