Computer Associates 2008 Annual Report Download - page 45

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Selected Quarterly Information
(IN MILLIONS, EXCEPT PER SHARE AND PERCENTAGE AMOUNTS) JUNE 30
1
SEPT. 30
2
DEC. 31
3
MAR. 31
4
TOTAL
FISCAL 2008 QUARTER ENDED
Revenue $ 1,025 $ 1,067 $ 1,100 $ 1,085 $ 4,277
Percentage of annual revenue 24% 25% 26% 25% 100%
Income from continuing operations $ 129 $ 137 $ 163 $ 71 $ 500
Basic income from continuing operations per share $ 0.25 $ 0.27 $ 0.32 $ 0.14 $ 0.97
Diluted income from continuing operations per share $ 0.24 $ 0.26 $ 0.31 $ 0.13 $ 0.93
(IN MILLIONS, EXCEPT PER SHARE AND PERCENTAGE AMOUNTS) JUNE 30
5
SEPT. 30
6
DEC. 31
7
MAR. 31
8
TOTAL
FISCAL 2007 QUARTER ENDED
Revenue $ 949 $ 987 $ 1,002 $ 1,005 $ 3,943
Percentage of annual revenue 24% 25% 25% 26% 100%
Income (loss) from continuing operations $ 35 $ 54 $ 52 $ (20) $ 121
Basic income (loss) from continuing operations per share $ 0.06 $ 0.09 $ 0.10 $ (0.04) $ 0.22
Diluted income (loss) from continuing operations per share $ 0.06 $ 0.09 $ 0.10 $ (0.04) $ 0.22
1 Includes an after-tax charge of $1 million in connection with matters under review by the Special Litigation Committee (refer to Note 8, “Commitments and Contingencies,” in the Notes to
the Consolidated Financial Statements for additional information) and an after-tax charge of $4 million for severance and other expenses in connection with a restructuring plan (refer to
“Restructuring and Other” within Results of Operations). Also includes an after-tax loss of $3 million, relating to the sale of an investment in marketable securities associated with the
closure of an international location (refer to “Restructuring and Other” within the Results of Operations section of this MD&A for additional information).
2 Includes an after-tax charge of $1 million in connection with matters under review by the Special Litigation Committee (refer to Note 8, “Commitments and Contingencies,” in the Notes to
the Consolidated Financial Statements for additional information) and an after-tax charge of $7 million for severance and other expenses in connection with a restructuring plan (refer to
“Restructuring and Other” within Results of Operations). Also includes an after-tax impairment charge of $1 million, relating to certain indefinite lived assets that were acquired in
conjunction with a prior year acquisition (refer to “Restructuring and Other” within the Results of Operations section of this MD&A for additional information).
3 Includes an after-tax charge of $4 million in connection with matters under review by the Special Litigation Committee (refer to Note 8, “Commitments and Contingencies,” in the Notes to
the Consolidated Financial Statements for additional information) and an after-tax charge of $7 million for severance and other expenses in connection with a restructuring plan (refer to
“Restructuring and Other” within Results of Operations). Also includes an after-tax impairment charge of $2 million, relating to certain indefinite lived assets that were acquired in
conjunction with a prior year acquisition (refer to “Restructuring and Other” within the Results of Operations section of this MD&A for additional information).
4 Includes an after-tax charge of $2 million in connection with matters under review by the Special Litigation Committee (refer to Note 8, “Commitments and Contingencies,” in the Notes to
the Consolidated Financial Statements for additional information) and an after-tax charge of $43 million for severance and other expenses in connection with a restructuring plan (refer to
“Restructuring and other” within the Results of Operations section of this MD&A for additional information). Also includes an after-tax impairment charge of $1 million, relating to certain
indefinite lived assets that were acquired in conjunction with a prior year acquisition (refer to “Restructuring and Other” within the Results of Operations section of this MD&A for
additional information).
5 Includes an after-tax charge of $1 million in connection with certain Deferred Prosecution Agreement (DPA) related costs and an after-tax charge of $6 million for severance and other
expenses in connection with a restructuring plan (refer to Note 8, “Commitments and Contingencies,” in the Notes to the Consolidated Financial Statements and “Restructuring and Other”
within the Results of Operations section of this MD&A for additional information).
6 Includes an after-tax charge of $1 million in connection with certain DPA related costs and an after-tax charge of $29 million for severance and other expenses in connection with a
restructuring plan (refer to Note 8, “Commitments and Contingencies,” in the Notes to the Consolidated Financial Statements and “Restructuring and Other” within the Results of
Operations section included in this MD&A for additional information).
7 Includes an after-tax charge of $8 million in connection with matters under review by the Special Litigation Committee (refer to Note 8, “Commitments and Contingencies,” in the Notes to
the Consolidated Financial Statements for additional information) and an after-tax charge of $17 million for severance and other expenses in connection with a restructuring plan (refer to
“Restructuring and Other” within the Results of Operations section of this MD&A for additional information).
8 Includes an after-tax charge of $1 million in connection with certain DPA related costs, an after-tax charge of $1 million in connection with matters under review by the Special Litigation
Committee (refer to Note 8, “Commitments and Contingencies,” in the Notes to the Consolidated Financial Statements for additional information) and an after-tax charge of $50 million for
severance and other expenses in connection with a restructuring plan (refer to “Restructuring and Other” within the Results of Operations section included in this MD&A). Also includes an
after-tax impairment charge of $7 million, relating to certain indefinite lived assets that were acquired in conjunction with a prior year acquisition and an after-tax charge of $2 million for
internal-use software capitalized in connection with our enterprise resource planning system implementation that was deemed to have no future value as we have selected a different
technology solution that we believe better satisfies the specific needs of the business.
Liquidity and Capital Resources
Our cash balances, including cash equivalents and marketable securities, are held in numerous locations throughout the
world, with the 48% residing outside the United States. Cash and cash equivalents totaled $2.80 billion as of March 31,
2008, representing an increase of $520 million from the March 31, 2007 balance of $2.28 billion. As of March 31, 2008
compared with March 31, 2007, cash and cash equivalents increased by $208 million due to the positive translation
effect that foreign currency exchange rates had on cash held outside the United States, in currencies other than the
U.S. dollars, for fiscal 2008.
Sources and Uses of Cash
Cash generated by continuing operating activities, which represents our primary source of liquidity, was $1.10 billion and
$1.07 billion for fiscal 2008 and 2007, respectively. For fiscal 2008, accounts receivable decreased by $111 million,
compared with a decline in fiscal 2007 of $274 million. In fiscal 2008, accounts payable, accrued expenses and other
liabilities decreased $95 million compared with a decrease in the prior year of $12 million. The decline in accounts
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