Computer Associates 2007 Annual Report Download - page 59

offsetting the cash used for acquisitions was $398 million in cash received from the sales of marketable securities. In addition,
we also entered into three sale/leaseback transactions during the second half of 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
Cash used in financing activities for fiscal year 2006 was $1.47 billion compared to cash provided by financing activities of
$202 million in fiscal year 2005. The cash activity for fiscal year 2006 was primarily the repayment of the Company’s notes
and repurchases, as discussed above. For fiscal year 2005, cash provided was primarily attributed to the issuance of $1 billion
Senior Notes, partially offset by the redemption of approximately $660 million in outstanding debt.
As of March 31, 2007 and 2006, our debt arrangements consisted of the following:
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
2007 2006
Debt Arrangements:
2004 Revolving Credit Facility (expires December 2008) $ 1,000 $ 750 $ 1,000 $ —
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
International line of credit 20 — 5—
Capital lease obligations and other —23 —6
Total $ 2,583 $ 1,816
At March 31, 2007, we had $2.58 billion in debt and $2.28 billion in cash and marketable securities. Our net deficit position
was approximately $303 million on the Consolidated Balance Sheet.
Additionally, we reported restricted cash balances of $61 million and $60 million at March 31, 2007 and 2006, 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).
2004 Revolving Credit Facility
In December 2004, we entered into an 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 $750 million was drawn as of March 31, 2007. No amounts were drawn
as of March 31, 2006.
We drew down $750 million in September 2006 in order to finance a portion of the $1 billion tender offer, which is further
described in the “Stock repurchase” section of Note 1 — “Significant Accounting Policies” in this Annual Report on Form 10-K.
Borrowings under the 2004 Revolving Credit Facility bear interest at a rate dependent on our credit ratings at the time of such
borrowings and are calculated according to a base rate or a Eurocurrency rate, as the case may be, plus an applicable margin
and utilization fee. The Company’s current borrowing rate is 6.49%. 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%. Based on our credit ratings as of May 2007, the
applicable margin is 0.025% for a base rate borrowing and 1.025% for a Eurocurrency borrowing, and the utilization fee is
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 amount of the committed amount under the facility (without taking into account any
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