Computer Associates 2006 Annual Report Download - page 69

fiscal year 2006, due to our restructuring initiatives and our associated review of the benefits of owning versus
leasing certain properties. Total cash realized from these transactions was approximately $75 million. All of these
transactions were recorded in accordance with SFAS No. 28, “Accounting for Sales with Leasebacks — an
amendment of FASB Statement No. 13”.
Financing Activities
The primary use of cash for financing activities has been the repayment of debt and the repurchase of common
stock, as discussed above.
As of March 31, 2006 and 2005, our debt arrangements consisted of the following:
Maximum
Available
Outstanding
Balance
Maximum
Available
Outstanding
Balance
2006 2005
(in millions)
Debt Arrangements
2004 Revolving Credit Facility (expires December 2008) . . $1,000 $ — $1,000 $ —
6.375% Senior Notes due April 2005 ............. — — — 825
6.500% Senior Notes due April 2008 ............. — 350 — 350
4.750% Senior Notes due December 2009. ......... — 500 — 500
1.625% Convertible Senior Notes due December 2009 . . . — 460 — 460
5.625% Senior Notes due December 2014. ......... — 500 — 500
Other ..................................... — 1 — 1
Total ..................................... $1,811 $2,636
At March 31, 2006, we had $1.81 billion in debt and $1.87 billion in cash and marketable securities. Our net
liquidity position was approximately $54 million.
Additionally, we reported restricted cash balances of $60 million and $67 million at March 31, 2006 and 2005,
respectively, which were included in the “Other noncurrent assets” line item.
In April 2005, we repaid, as scheduled, the $825 million 6.375% Senior Notes issued during the fiscal year ended
March 31, 1999 using our available cash balances (see Fiscal Year 1999 Senior Notes for details).
During fiscal year 2005, we issued $1 billion of senior notes and redeemed approximately $660 million in
outstanding debt compared to a net debt reduction of approximately $826 million in fiscal year 2004.
2004 Revolving Credit Facility
In December 2004, we 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 our lenders. The 2004 Revolving Credit Facility expires December 2008 and no amount was drawn
as of March 31, 2006 or March 31, 2005. Refer to Note 6, “Debt”, in the Notes to the Consolidated Financial
Statements for additional information.
Borrowings under the 2004 Revolving Credit Facility will bear interest at a rate dependent on our 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 our 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 our current credit ratings 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, we must pay facility fees quarterly at rates
dependent on our 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
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