Computer Associates 2008 Annual Report Download - page 101

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Other Indebtedness
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
2008 2007
YEAR ENDED MARCH 31,
International line of credit $25 $ — $20 $ —
Capital lease obligations and other —22—23
International Line of Credit
An unsecured and uncommitted multi-currency line of credit is available to meet short-term working capital needs for
the Company’s subsidiaries operating outside the United States. The line of credit is available on an offering basis,
meaning that transactions under the line of credit will be on such terms and conditions, including interest rate, maturity,
representations, covenants and events of default, as mutually agreed between the Company’s subsidiaries and the local
bank at the time of each specific transaction. As of March 31, 2008, the amount available under this line totaled
approximately $25 million and approximately $4 million was pledged in support of bank guarantees and other local
credit lines. Amounts drawn under these facilities as of March 31, 2008 were nominal.
In addition to the above facility, the Company and its subsidiaries use guarantees and letters of credit issued by financial
institutes to guarantee performance on certain contracts. As of March 31, 2008, none of these arrangements had been
drawn down by third parties.
Other
As of March 31, 2008 and 2007, the Company had various other debt obligations outstanding, which approximated
$22 million and $23 million, respectively.
As of March 31, 2008, our senior unsecured notes were rated Ba1, BB, and BB+ by Moody’s Investors Service
(Moody’s), Standard and Poor’s (S&P) and Fitch Ratings (Fitch), respectively. The outlook on these unsecured notes is
rated negative, positive and stable by Moody’s, S&P and Fitch, respectively. As of May 2008, the Company’s rating and
outlook remained unchanged.
The Company conducts an ongoing review of its capital structure and debt obligations as part of its risk management
strategy. Excluding the 2008 and 2004 Revolving Credit Facility, the fair value of the Company’s long-term debt,
including the current portion of long-term debt, was $1.89 billion and $1.92 billion as of March 31, 2008 and 2007,
respectively. The fair value of long-term debt is based on quoted market prices. See also Note 1, “Significant Accounting
Policies.”
Interest expense for the fiscal years ended March 31, 2008, 2007 and 2006 was $136 million, $122 million and
$95 million, respectively.
The maturities of outstanding debt are as follows:
(IN MILLIONS) 2009 2010 2011 2012 2013 THEREAFTER
YEAR ENDED MARCH 31,
Amount due $ 361 $ 965 $ 3 $ 3 $ 750 $ 500
Note 8 — Commitments and Contingencies
The Company leases real estate and certain data processing and other equipment with lease terms expiring through
2023. The leases are operating leases and provide for renewal options and additional rentals based on escalations in
operating expenses and real estate taxes. The Company has no material capital leases.
Rental expense under operating leases for facilities and equipment was approximately $203 million, $196 million and
$199 million for the fiscal years ended March 31, 2008, 2007 and 2006, respectively. Rental expense for the fiscal years
ended March 31, 2008, 2007 and 2006 included sublease income of approximately $35 million, $31 million and
$10 million, respectively.
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