Computer Associates 2008 Annual Report Download - page 48

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Unbilled amounts under the Company’s business model are mostly collectible over one to five years. As of March 31,
2008, on a cumulative basis, 56%, 86%, 95%, 99%, and 100% of amounts due from customers recorded under the
Company’s business model come due within fiscal 2009 through 2013, respectively.
Unbilled amounts under the prior business model are collectible over one to four years. As of March 31, 2008, on a
cumulative basis, 31%, 61%, 87%, and 100% of amounts due from customers recorded under the prior business model
come due within fiscal 2009 through 2012, respectively.
Cash Generated by Operating Activities
(IN MILLIONS) 2008 2007 2006 2008/2007 2007/2006
YEAR ENDED MARCH 31, $ CHANGE
Cash collections from billings
1
$ 4,960 $ 4,860 $ 4,899 $ 100 $ (39)
Vendor disbursements and payroll
1
(3,324) (3,400) (3,233) 76 (167)
Income tax payments (374) (296) (207) (78) (89)
Other disbursements, net
2
(159) (96) (79) (63) (17)
Cash generated by operating activities $ 1,103 $ 1,068 $ 1,380 $ 35 $ (312)
1 Amounts include VAT and sales taxes.
2 Amounts include interest, restructuring, restitution fund payments and miscellaneous receipts and disbursements.
Fiscal 2008 Compared with Fiscal 2007
Operating Activities
Cash generated by continuing operating activities for fiscal 2008 was $1.10 billion, representing a slight increase of
$35 million compared with fiscal 2007. The increase was driven primarily by higher collections of $100 million, including
an increase of $64 million from single-installment receipts, and lower disbursements to vendors and lower payroll
related disbursements of $76 million. These amounts were partly offset by higher cash payments for income taxes and
interest payments.
Investing Activities
Cash used in investing activities for fiscal 2008 was $219 million compared with $202 million for fiscal 2007. Cash paid
for acquisitions, net of cash acquired, was $27 million for fiscal 2008 compared with $212 million for fiscal 2007.
Proceeds from the sale of assets were $46 million for fiscal 2008, compared with $223 million in fiscal 2007, which
included proceeds on the sale-leaseback of our corporate headquarters in Islandia, New York of $201 million. In fiscal
2008, the Company had net purchases of marketable securities of $3 million compared with proceeds from sales of
marketable securities in fiscal 2007 of $44 million.
Financing Activities
Cash used in financing activities for fiscal 2008 was $572 million compared with $515 million in fiscal 2007. During
fiscal 2008, we repurchased $500 million of our own common stock, compared with $1.21 billion in fiscal 2007.
Partially offsetting the share repurchases in fiscal 2007 was an increase in borrowings of $750 million under our 2004
Revolving Credit Facility. In the second quarter of fiscal 2008, we repaid our 2004 Revolving Credit Facility with proceeds
from our new 2008 Revolving Credit Facility. During fiscal 2008, we paid dividends of $82 million, compared with
$88 million in fiscal 2007.
Fiscal 2007 Compared with Fiscal 2006
Operating Activities
Cash generated by continuing operating activities for fiscal 2007 was $1.07 billion, representing a decline of
$312 million compared with fiscal 2006. The decline was driven primarily by higher disbursements to vendors and
higher payroll related disbursements of $167 million in the aggregate, higher cash payments for income taxes and higher
disbursements relating to restructuring activities of $65 million. Additionally, collections from customers declined
$39 million. The higher disbursements and lower collections were partially offset by $150 million in restitution fund
payments in fiscal 2006 that did not recur in fiscal 2007.
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