Computer Associates 2012 Annual Report Download - page 36

AT MARCH 31,
CHANGE
PERCENT
CHANGE2012 2011
(dollars in millions)
Cash, cash equivalents and marketable securities(1) $ 2,679 $ 3,228 $ (549) (17)%
Total debt $ 1,301 $ 1,551 $ (250) (16)%
Total expected future cash collections from committed contracts(2) $ 5,745 $ 6,043 $ (298) (5)%
Total revenue backlog(2) $ 8,473 $ 8,760 $ (287) (3)%
Total current revenue backlog(2) $ 3,714 $ 3,724 $ (10) —%
(1) At March 31, 2012, marketable securities were less than $1 million. At March 31, 2011, marketable securities were $179 million.
(2) Refer to the discussion in the “Liquidity and Capital Resources” section of this MD&A for additional information about expected future cash collections from committed contracts, billing backlog
and revenue backlog.
Analyses of our performance indicators, including general trends, can be found in the “Results of Operations” and “Liquidity and
Capital Resources” sections of this MD&A.
Total Revenue — Total revenue is the amount of revenue recognized during the reporting period from the sale of license,
maintenance and professional services agreements. Amounts recognized as subscription and maintenance revenue are recognized
ratably over the term of the agreement. Professional services revenue is generally recognized as the services are performed or
recognized on a ratable basis over the term of the related software license. Software fees and other revenue generally represents
license fee revenue recognized at the inception of a license agreement (up-front basis) and also includes our SaaS revenue, which is
recognized as services are provided.
Total Bookings — Total bookings or sales includes the incremental value of all subscription, maintenance and professional services
contracts and software fees and other contracts entered into during the reporting period and is generally reflective of the amount of
products and services during the period that our customers have agreed to purchase from us. Revenue for bookings attributed to sales
of software products for which license fee revenue is recognized on an up-front basis is reflected in “Software fees and other” in our
Consolidated Statements of Operations.
As our business strategy has evolved, our management looks within bookings at total new product and capacity sales, which we
define as sales of products or mainframe capacity that are new or in addition to products or mainframe capacity previously contracted
for by a customer. The amount of new product and capacity sales for a period, as currently tracked by us, requires estimation by
management and has not been historically reported. Within a given period, the amount of new product and capacity sales may not be
material to the change in our total bookings or revenue compared with prior periods. New product and capacity sales can be reflected
as subscription and maintenance bookings in the period (for which revenue would be recognized ratably over the term of the contract)
or in software fees and other bookings (which are recognized as software fees and other revenue in the current period).
Subscription and Maintenance Bookings — Subscription and maintenance bookings is the aggregate incremental amount we expect
to collect from our customers over the terms of the underlying subscription and maintenance agreements entered into during a
reporting period. These amounts include the sale of products directly by us and may include additional products, services or other
fees for which we have not established vendor specific objective evidence (VSOE). Subscription and maintenance bookings also
includes indirect sales by distributors and volume partners, value-added resellers and exclusive representatives to end-users, where
the contracts incorporate the right for end-users to receive unspecified future software products, and other contracts without these
rights entered into in close proximity or contemplation of such agreements. These amounts are expected to be recognized ratably as
subscription and maintenance revenue over the applicable term of the agreements. Subscription and maintenance bookings exclude
the value associated with certain perpetual licenses, license-only indirect sales, SaaS offerings and professional services
arrangements.
The license and maintenance agreements that contribute to subscription and maintenance bookings represent binding payment
commitments by customers over periods that range generally from three to five years, although in certain cases customer
commitments can be for longer or shorter periods. These current period bookings are often renewals of prior contracts that also had
various durations, usually from three to five years. The amount of new subscription and maintenance bookings recorded in a period is
affected by the volume, duration and value of contracts renewed during that period. Subscription and maintenance bookings typically
increases in each consecutive quarter during a fiscal year, with the first quarter having the least bookings and the fourth quarter
having the most bookings. However, subscription and maintenance bookings may not always follow the pattern of increasing in
consecutive quarters during a fiscal year, and the quarter-to-quarter differences in subscription and maintenance bookings may vary.
Given the varying durations of the contracts being renewed, year-over-year comparisons of bookings are not always indicative of the
overall bookings trend.
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