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billion of our common stock under the capital allocation program. The timing and amount of share repurchases will be determined by
our management based on evaluation of market conditions, trading price, legal requirements and other factors.
Item 6. Selected Financial Data.
The information set forth below should be read in conjunction with the “Results of Operations” section included in Item 7,
“Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
YEAR ENDED MARCH 31,
STATEMENT OF OPERATIONS DATA 2012 2011 2010 2009 2008
(in millions, except per share amounts)
Revenue $ 4,814 $ 4,429 $ 4,227 $ 4,138 $ 4,179
Income from continuing operations(1) $ 938 $ 823 $ 759 $ 661 $ 472
Basic income per common share from continuing Operations $ 1.91 $ 1.60 $ 1.46 $ 1.27 $ 0.91
Diluted income per common share from continuing Operations $ 1.90 $ 1.60 $ 1.45 $ 1.27 $ 0.91
Dividends declared per common share(2) $ 0.40 $ 0.16 $ 0.16 $ 0.16 $ 0.16
AT MARCH 31,
BALANCE SHEET AND OTHER DATA 2012 2011 2010 2009 2008
(in millions)
Cash provided by operating activities — continuing operations $ 1,505 $ 1,377 $ 1,336 $ 1,184 $ 1,062
Working capital surplus $ 214 $ 448 $ 409 $ 147 $ 213
Working capital, excluding deferred revenue(3) $ 2,872 $ 3,045 $ 2,913 $ 2,553 $ 2,860
Total assets $ 11,997 $ 12,411 $ 11,888 $ 11,241 $ 11,731
Long-term debt (less current maturities) $ 1,287 $ 1,282 $ 1,530 $ 1,287 $ 2,155
Stockholders’ equity $ 5,397 $ 5,620 $ 4,987 $ 4,362 $ 3,750
(1) In fiscal 2010, 2009 and 2008, we incurred after-tax charges of $33 million, $64 million and $74 million, respectively, for restructuring and other costs.
(2) Dividends declared per common share were $0.05 for the each of the first three quarters of fiscal 2012 and $0.25 for the fourth quarter of fiscal 2012. For fiscal 2008 through fiscal 2011, dividends
declared per common share were $0.04 per quarter.
(3) Deferred revenue includes amounts billed or collected in advance of revenue recognition, including subscription license agreements, maintenance and professional services. It does not include
unearned revenue on future installments not yet billed at the respective balance sheet dates.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations.
Introduction
This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (MD&A) is intended to provide an
understanding of our financial condition, changes in financial condition, cash flow, liquidity and results of operations. This MD&A
should be read in conjunction with our Consolidated Financial Statements and the accompanying Notes to Consolidated Financial
Statements appearing elsewhere in this Form 10-K and the Risk Factors included in Part I, Item 1A of this Form 10-K, as well as
other cautionary statements and risks described elsewhere in this Form 10-K.
Business Overview
We are the leading independent enterprise information technology (IT) management software and solutions company with expertise
across IT environments — from mainframe and physical to virtual and cloud. We develop and deliver software and services that help
organizations accelerate, transform and secure their IT infrastructures to deliver flexible IT services. This allows customers to
respond faster to business demands for new services, manage the quality of services, increase efficiency and reduce risk.
We address components of the computing environment, including people, information, processes, systems, networks, applications
and databases, across hardware and software platforms and programs. We offer a broad portfolio of software solutions that address
customer needs to accelerate, transform and secure IT environments, including mainframe; service assurance; security (identity and
access management); service and portfolio management; and virtualization and service automation. We deliver our products
on-premises or, for certain products, using Software-as-a-Service (SaaS).
We license our products worldwide. We serve companies across most major industries worldwide, including banks, insurance
companies, other financial services providers, government agencies, telecommunication providers, manufacturers, technology
companies, retailers, educational organizations and health care institutions. These customers typically maintain IT infrastructures that
are both complex and central to their objectives for operational excellence.
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