Computer Associates 2007 Annual Report Download - page 70

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qualify for hedge accounting treatment under FAS 133. The derivative contracts that were entered into during fiscal year 2007
resulted in a loss of approximately $3 million, $1 million of which pertained to unrealized losses on the open derivative
contracts as of March 31, 2007, and was reported in the “Other gains, net” line item of the Consolidated Statement of
Operations for the fiscal year ended March 31, 2007. In April and May 2007, we entered into similar derivative contracts as
those entered during the fiscal year 2007 relating to our operating exposures.
Equity Price Risk
As of March 31, 2007, we do not hold significant investments in marketable equity securities of publicly traded companies.
Our investments in marketable securities were considered available for sale. Unrealized gains or losses on trading securities
are reflected as “Other gains, net” on the Consolidated Statement of Operations and unrealized gains or temporary losses on
available for sale securities are deferred as a component of stockholders’ equity.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
Our Consolidated Financial Statements are listed in the List of Consolidated Financial Statements and Financial Statement
Schedules filed as part of this Annual Report on Form 10-K and are incorporated herein by reference.
The Supplementary Data specified by Item 302 of Regulation S-K as it relates to selected quarterly data is included in Item 7,
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Information on the effects of
changing prices is not required.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES.
(a) Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be
disclosed in the Company’s reports under the Securities Exchange Act of 1934 (“Exchange Act”) is recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is
accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial
Officer, as appropriate, to allow timely decisions regarding required disclosure. The Company’s management, with
participation of our Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of
the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of
March 31, 2007. Based on that evaluation, the Company’s management concluded that the Company’s disclosure controls
and procedures were effective as of March 31, 2007. Accordingly, management believes that the consolidated financial
statements included in this Annual Report on Form 10-K, fairly present, in all material respects our financial condition, results
of operations and cash flows for the periods presented.
(b) Management’s Report on Internal Control over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting
as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles.
The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company
are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide
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