Computer Associates 2008 Annual Report Download - page 37

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Results of Operations
The following table presents revenue and expense line items reported in our Consolidated Statements of Operations for
fiscal 2008, 2007 and 2006 and the period-over-period dollar and percentage changes for those line items. Dollar
amounts are expressed in millions. Certain prior year balances have been reclassified to conform to the current period’s
presentation. For further information, see Note 1, “Significant Accounting Policies,” in the Notes to the Consolidated
Financial Statements.
(DOLLARS IN MILLIONS) 2008 2007 2006 2008/2007 2008/2007 2007/2006 2007/2006
YEAR ENDED MARCH 31,
DOLLAR
CHANGE
PERCENT
CHANGE
DOLLAR
CHANGE
PERCENT
CHANGE
Revenue:
Subscription and maintenance revenue $ 3,762 $ 3,458 $ 3,252 $ 304 9% $ 206 6%
Professional services 383 351 315 32 9 36 11
Software fees and other 132 134 205 (2) (1) (71) (35)
Total revenue $ 4,277 $ 3,943 $ 3,772 $ 334 8% $ 171 5%
Expenses:
Costs of licensing and maintenance $ 267 $ 244 $ 236 $ 23 9% $ 8 3%
Cost of professional services 350 326 263 24 7 63 24
Amortization of capitalized
software costs 117 354 449 (237) (67) (95) (21)
Selling and marketing 1,258 1,269 1,327 (11) (1) (58) (4)
General and administrative 632 646 547 (14) (2) 99 18
Product development and enhancements 516 544 559 (28) (5) (15) (3)
Depreciation and amortization of other
intangible assets 156 148 134 8 5 14 10
Other expenses (gains), net 6(13) (15) 19 (146) 2 (13)
Restructuring and other 121 201 88 (80) (40) 113 128
Charge for in-process research and
development costs —10 18 (10) (100) (8) (44)
Total expenses before interest and
income taxes 3,423 3,729 3,606 (306) (8) 123 3
Income from continuing operations before
interest and income taxes 854 214 166 640 299 48 29
Interest expense, net 46 60 41 (14) (23) 19 46
Income from continuing operations before
income taxes 808 154 125 654 425 29 23
Income tax expense (benefit) 308 33 (35) 275 833 68 (194)
Income from continuing operations $ 500 $ 121 $ 160 $ 379 313% $ (39) (24)%
Note — amounts may not add to their respective totals due to rounding.
27