Computer Associates 2015 Annual Report Download - page 39

capitalized software development costs of approximately $119 million (see ‘‘Amortization of Capitalized Software Costs’’
above), partially offset by a decrease in personnel-related costs from a reduced headcount as a result of the Fiscal 2014 Plan
and prior year workforce reduction actions.
Depreciation and Amortization of Other Intangible Assets
The decrease in depreciation and amortization of other intangible assets for fiscal 2015 compared with fiscal 2014 was
primarily due to a decrease in property and equipment depreciation expense.
The decrease in depreciation and amortization of other intangible assets for fiscal 2014 compared with fiscal 2013 was
primarily due to a decrease in depreciation expense, which was primarily as a result of property and equipment that became
fully depreciated in the first quarter of fiscal 2014. This decrease was partially offset by an increase in amortization of other
intangible assets acquired from recent acquisitions.
Other Expenses (Gains), Net
The summary of other expenses (gains), net was as follows:
YEAR ENDED MARCH 31,
(in millions) 2015 2014 2013
Fiscal 2014 Plan $17$168$—
Legal settlements 15 29 18
(Gains) losses from foreign exchange derivative contracts (31) (20) 11
Losses from foreign exchange rate fluctuations 17 38 1
Assignment of rights to intellectual property — — (35)
Other miscellaneous items 5 (10) —
Total $ 23 $ 205 $ (5)
For fiscal 2015, other expenses (gains), net included a foreign currency transaction loss of $14 million relating to the
remeasurement of monetary assets and liabilities of our Venezuelan subsidiary. This loss arose from our use of the foreign
currency exchange system in effect for Venezuela at March 31, 2015. As of March 31, 2015, our remaining net monetary
assets in Venezuela are not considered material to our overall financial statement presentation.
For fiscal 2014, other expenses (gains), net included a foreign currency transaction loss of $6 million relating to the
remeasurement of monetary assets and liabilities of our Venezuelan subsidiary. This loss arose from our use of foreign
exchange rates in effect at that time.
For fiscal 2013, other expenses (gains), net included a transaction in the first quarter of fiscal 2013 to assign the rights of
certain of our intellectual property assets to a large technology company for $35 million as part of an effort to more fully
utilize our intellectual property assets. We will continue to have the ability to use these intellectual property assets in
current and future product offerings.
Interest Expense, Net
Interest expense, net for fiscal 2015 decreased compared with fiscal 2014 primarily due to lower interest expenses during
fiscal 2015 as a result the repayment of our 6.125% Senior Notes due December 2014 in full and an increase in interest
income earned from higher interest rates year over year.
Interest expense, net for fiscal 2014 increased compared with fiscal 2013 primarily as a result of additional interest expense
relating to our debt offering that occurred during the second quarter of fiscal 2014.
Refer to the ‘‘Liquidity and Capital Resources’’ section of this MD&A and Note 8, ‘‘Debt,’’ in the Notes to the
Consolidated Financial Statements for additional information.
Income Taxes
Income tax expense for fiscal 2015, 2014 and 2013 was $305 million, $129 million and $339 million, respectively. Our
effective tax rate was 27.4%, 12.7% and 26.9%, for fiscal 2015, 2014 and 2013, respectively. We expect a full-year effective
tax rate of between 28% and 29% for fiscal 2016.
The increase in the effective tax rate for fiscal 2015, compared with fiscal 2014, resulted primarily from the favorable
resolutions of uncertain tax positions in fiscal 2014 relating to the completion of the examination of our U.S. federal income
tax returns for the tax years ended March 31, 2005, 2006 and 2007.
36