Computer Associates 2012 Annual Report Download - page 38

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Results of Operations
The following table presents revenue and expense line items reported in our Consolidated Statements of Operations for fiscal 2012,
2011 and 2010 and the period-over-period dollar and percentage changes for those line items.
YEAR ENDED MARCH 31, DOLLAR
CHANGE
2012/2011
PERCENT
CHANGE
2012/2011
DOLLAR
CHANGE
2011/2010
PERCENT
CHANGE
2011/20102012 2011 2010
(dollars in millions)
Revenue:
Subscription and maintenance revenue $ 4,021 $ 3,822 $ 3,765 $ 199 5% $ 57 2%
Professional services 382 327 288 55 17% 39 14%
Software fees and other 411 280 174 131 47% 106 61%
Total revenue $ 4,814 $ 4,429 $ 4,227 $ 385 9% $ 202 5%
Expenses:
Costs of licensing and maintenance $ 286 $ 278 $ 252 $ 8 3% $ 26 10%
Cost of professional services 357 303 261 54 18% 42 16%
Amortization of capitalized software costs 225 192 133 33 17% 59 44%
Selling and marketing 1,394 1,286 1,204 108 8% 82 7%
General and administrative 462 451 485 11 2% (34) (7)%
Product development and enhancements 510 471 487 39 8% (16) (3)%
Depreciation and amortization of other intangible assets 176 187 159 (11) (6)% 28 18%
Other expenses, net 15 7 18 8 114% (11) (61)%
Total expense before interest and income taxes $ 3,425 $ 3,175 $ 2,999 $ 250 8% $ 176 6%
Income before interest and income taxes $ 1,389 $ 1,254 $ 1,228 $ 135 11% $ 26 2%
Interest expense, net 35 45 76 (10) (22)% (31) (41)%
Income before income taxes $ 1,354 $ 1,209 $ 1,152 $ 145 12% $ 57 5%
Income tax expense 416 386 393 30 8% (7) (2)%
Income from continuing operations $ 938 $ 823 $ 759 $ 115 14% $ 64 8%
The following table sets forth, for the fiscal years indicated, the percentage that the items in the accompanying Consolidated
Statements of Operations bear to total revenue.
PERCENTAGE OF
TOTAL REVENUE FOR THE
YEAR ENDED MARCH 31,
2012 2011 2010
Revenue:
Subscription and maintenance revenue 84% 86% 89%
Professional services 877
Software fees and other 874
Total revenue 100% 100% 100%
Expenses:
Costs of licensing and maintenance 6% 6% 6%
Cost of professional services 776
Amortization of capitalized software costs 543
Selling and marketing 29 29 28
General and administrative 10 10 11
Product development and enhancements 11 11 12
Depreciation and amortization of other intangible assets 444
Other expenses, net ———
Total expenses before interest and income taxes 71% 72% 71%
Income before interest and income taxes 29% 28% 29%
Interest expense, net 112
Income before income taxes 28% 27% 27%
Income tax expense 999
Income from continuing operations 19% 19% 18%
Note: Amounts may not add to their respective totals due to rounding.
26