Computer Associates 2015 Annual Report Download - page 47

We can also estimate the total cash to be collected in the future from committed contracts, referred to as our ‘‘Expected
future cash collections,’’ by adding the total billings backlog to the trade accounts receivable, which represent amounts
already billed but not collected, from our Consolidated Balance Sheets.
MARCH 31, 2015(1) MARCH 31, 2014(1)
(in millions)
Expected future cash collections:
Total billings backlog $ 3,553 $ 4,348
Trade accounts receivable, net 652 800
Total expected future cash collections $ 4,205 $ 5,148
(1) Information presented excludes the results of our discontinued operations.
The decrease in billings backlog at March 31, 2015 compared with March 31, 2014 was a result of lower bookings during
fiscal 2015, which was primarily due to a lower level of fiscal 2015 renewals and new product sales (refer to ‘‘Bookings —
Fiscal 2015 Compared with Fiscal 2014 — Renewal Bookings’’). Excluding the unfavorable effect of foreign exchange,
billings backlog would have decreased 11% at March 31, 2015 compared with March 31, 2014.
The decrease in expected future cash collections at March 31, 2015 compared with March 31, 2014 was primarily driven by
the decrease in billings backlog, as described above, and a decrease in trade accounts receivable, net.
The decrease in total revenue backlog at March 31, 2015 compared with March 31, 2014 was primarily a result of the
decrease in renewal bookings for fiscal 2015 compared with the year-ago period, as described above. Excluding the
unfavorable effect of foreign exchange, total revenue backlog would have decreased 8% at March 31, 2015 compared with
March 31, 2014.
Revenue to be recognized in the next 12 months decreased 10% at March 31, 2015 compared with March 31, 2014.
Excluding the unfavorable effect of foreign exchange, revenue to be recognized in the next 12 months would have decreased
3%. This decrease is the result of (1) the decline in renewal bookings (refer to ‘‘Bookings — Fiscal 2015 Compared with
Fiscal 2014 — Renewal Bookings’’), (2) the decline in professional services bookings during fiscal 2015; and (3) lower new
product sales.
Generally, we believe that a change in the current portion of revenue backlog on a year-over-year basis is an indicator of
future subscription and maintenance revenue performance due to the high percentage of our revenue that is recognized
from license agreements that are already committed and being recognized ratably. We also believe that we would need to
demonstrate multiple quarters of total new product sales growth while maintaining a renewal yield in the low 90 percent
range before growth in the current portion of revenue backlog would be likely to occur.
Unbilled amounts relating to subscription licenses are mostly collectible over a period of one-to-five years and at March 31,
2015, on a cumulative basis, 53%, 82%, 94%, 99% and 100% come due within fiscal 2016 through 2020, respectively.
Cash Provided by Operating Activities
YEAR ENDED MARCH 31, $ CHANGE
2015(1) 2014(1) 2013(1) 2015 / 2014 2014 / 2013
(in millions)
Cash collections from billings(2) $ 4,515 $ 4,653 $ 4,718 $ (138) $ (65)
Vendor disbursements and payroll(2) (2,960) (3,025) (3,050) 65 25
Income tax payments, net (411) (489) (309) 78 (180)
Other disbursements, net(3) (114) (166) — 52 (166)
Net cash provided by continuing operating activities $ 1,030 $ 973 $ 1,359 $ 57 $ (386)
(1) Information presented excludes the results of our discontinued operations.
(2) Amounts include value added taxes and sales taxes.
(3) For fiscal 2015, amount includes $66 million of payments associated with the Fiscal 2014 Plan, interest, prior period restructuring plans and miscellaneous receipts and
disbursements. For fiscal 2014, amount includes $105 million of payments associated with the Fiscal 2014 Plan, interest, prior period restructuring plans and miscellaneous receipts
and disbursements. For fiscal 2013, amount includes interest, restructuring payments and $35 million in cash proceeds received from the aforementioned intellectual property
transaction in the first quarter of fiscal 2013 and miscellaneous receipts and disbursements.
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