Computer Associates 2015 Annual Report Download - page 34

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recognized from license agreements that are already committed and being recognized ratably. The value of backlog can
fluctuate based upon the timing of contract expirations.
‘‘Deferred revenue (billed or collected)’’ is composed of: (i) amounts received from customers in advance of revenue
recognition and (ii) amounts billed but not collected for which revenue has not yet been earned.
Results of Operations
The following table presents revenue and expense line items reported in our Consolidated Statements of Operations for
fiscal 2015, 2014 and 2013 and the period-over-period dollar and percentage changes for those line items. These
comparisons of past results are not necessarily indicative of future results.
DOLLAR PERCENT DOLLAR PERCENT
YEAR ENDED MARCH 31, CHANGE CHANGE CHANGE CHANGE
2015(1) 2014(1) 2013(1) 2015/2014 2015/2014 2014/2013 2014/2013
(dollars in millions)
Revenue:
Subscription and maintenance $ 3,560 $ 3,683 $ 3,764 $ (123) (3)% $ (81) (2)%
Professional services 351 379 382 (28) (7)% (3) (1)%
Software fees and other 351 350 358 1 —% (8) (2)%
Total revenue $ 4,262 $ 4,412 $ 4,504 $ (150) (3)% $ (92) (2)%
Expenses:
Costs of licensing and maintenance $ 297 $ 296 $ 275 $ 1 —% $ 21 8%
Cost of professional services 338 353 354 (15) (4)% (1) —%
Amortization of capitalized software costs 273 271 305 2 1% (34) (11)%
Selling and marketing 1,060 1,104 1,225 (44) (4)% (121) (10)%
General and administrative 377 395 405 (18) (5)% (10) (2)%
Product development and enhancements 603 574 483 29 5% 91 19%
Depreciation and amortization of other intangible
assets 129 144 158 (15) (10)% (14) (9)%
Other expenses (gains), net 23 205 (5) (182) (89)% 210 NM
Total expense before interest and income taxes $ 3,100 $ 3,342 $ 3,200 $ (242) (7)% $ 142 4%
Income from continuing operations before interest
and income taxes $ 1,162 $ 1,070 $ 1,304 $ 92 9% $ (234) (18)%
Interest expense, net 47 54 44 (7) (13)% 10 23%
Income from continuing operations before income
taxes $ 1,115 $ 1,016 $ 1,260 $ 99 10% $ (244) (19)%
Income tax expense 305 129 339 176 136% (210) (62)%
Income from continuing operations $ 810 $ 887 $ 921 $ (77) (9)% $ (34) (4)%
(1) Information presented excludes the results of our discontinued operations.
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