Computer Associates 2008 Annual Report Download - page 49

Investing Activities
Cash used in investing activities for fiscal 2007 was $202 million compared with $847 million for fiscal 2006. Cash paid
for acquisitions, net of cash acquired, was $212 million for fiscal 2007, compared with $1.01 billion for fiscal 2006.
Proceeds from the sale of assets were $223 million for fiscal 2007 which included proceeds on the sale-leaseback of our
corporate headquarters in Islandia, New York of $201 million. Proceeds received from the sales of marketable securities
in fiscal 2007 declined $354 million to $44 million compared with fiscal 2006.
Financing Activities
Cash used in financing activities for fiscal 2007 was $515 million compared with $1.47 billion in fiscal 2006. The cash
used in fiscal 2007 was primarily the result of the repurchase of 51 million shares for $1.21 billion, partly offset by new
borrowings of $750 million under the Company’s $1 billion revolving credit facility. The cash used in fiscal 2006 was
primarily the result of the $912 million repayment of the Company’s 6.375% Senior Notes and the 3% Concord
Convertible Notes, as well as share repurchases of $590 million.
As of March 31, 2008 and 2007, our debt arrangements consisted of the following:
(IN MILLIONS)
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
MAXIMUM
AVAILABLE
OUTSTANDING
BALANCE
2008 2007
Debt Arrangements:
2004 Revolving Credit Facility (terminated August 2007) $— $— $ 1,000 $ 750
2008 Revolving Credit Facility (expires August 2012) 1,000 750
6.500% Senior Notes due April 2008 —350 — 350
1.625% Convertible Senior Notes due December 2009 — 460 — 460
4.750% Senior Notes due December 2009 — 500 — 500
6.125% Senior Notes due December 2014 — 500 — 500
International line of credit 25 — 20 —
Capital lease obligations and other —22 —23
Total $ 2,582 $ 2,583
As of March 31, 2008, we had $2.58 billion in debt and $2.80 billion in cash, cash equivalents and marketable
securities. Our net surplus position was $214 million.
Additionally, we reported restricted cash balances of $62 million and $61 million as of March 31, 2008 and 2007,
respectively, which were included in the “Other noncurrent assets” line item.
2008 Revolving Credit Facility
In August 2007, we entered into an unsecured revolving credit facility (the 2008 Revolving Credit Facility). The
maximum committed amount available under the 2008 Revolving Credit Facility is $1 billion, exclusive of incremental
credit increases of up to an additional $500 million, which are available subject to certain conditions and the agreement
of our lenders. The 2008 Revolving Credit Facility replaces the prior $1.0 billion revolving credit facility (the 2004
Revolving Credit Facility) which was due to expire on December 2, 2008. The 2004 Revolving Credit Facility was
terminated effective August 29, 2007, at which time outstanding borrowings of $750 million were repaid and
simultaneously re-borrowed under the 2008 Revolving Credit Facility. The 2008 Revolving Credit Facility expires
August 29, 2012. As of March 31, 2008, $750 million was drawn down under the 2008 Revolving Credit Facility.
Borrowings under the 2008 Revolving Credit Facility bear interest at a rate dependent on our credit ratings at the time of
such borrowings and are calculated according to a base rate or a Eurocurrency rate, as the case may be, plus an
applicable margin and utilization fee. The applicable margin for a base rate borrowing is 0.0% and, depending on our
credit rating, the applicable margin for a Eurocurrency borrowing ranges from 0.27% to 0.875%. Also, depending on our
credit rating at the time of the borrowing, the utilization fee can range from 0.10% to 0.25% for borrowings over 50%
of the total commitment. At our credit ratings as of March 31, 2008, the applicable margin was 0% for a base rate
borrowing and 0.60% for a Eurocurrency borrowing, and the utilization fee was 0.125%. As of March 31, 2008 the
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