Computer Associates 2015 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2015 Computer Associates annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

Fiscal 2015 versus Fiscal 2014
Operating Activities
Net cash provided by continuing operating activities for fiscal 2015 was $1,030 million, representing an increase of
$57 million compared with fiscal 2014. Net cash provided by continuing operating activities was favorably affected by lower
cash tax payments of $78 million, lower vendor disbursements and payroll payments of $65 million and a decrease in
payments associated with the Fiscal 2014 Plan of $39 million. These favorable effects were partially offset by a decrease in
cash collections from billings.
Investing Activities
Net cash used in investing activities from continuing operations for fiscal 2015 was $91 million compared with net cash
provided by investing activities from continuing operations of $5 million for fiscal 2014. The change in net investing
activities was primarily due to maturities of short-term investments of $191 million during fiscal 2014, offset by a decrease in
cash paid for acquisitions and purchased software of $95 million. The year-over-year change in our investment amounts is a
result of a change in the allocation of our investment portfolio, which reduced our investments in instruments with
maturities greater than 90 days.
Financing Activities
Net cash used in financing activities from continuing operations for fiscal 2015 was $977 million compared with $421 million
in fiscal 2014. The increase was primarily due to the $500 million repayment of our 6.125% Senior Notes Due December
2014 in full, a decrease in borrowings of $498 million, which was attributable to our August 2013 debt offering in fiscal
2014, and a decrease in the exercise of common stock options of $67 million. These decreases were partially offset by lower
common share repurchases of $292 million, an increase in net borrowings from our notional pooling arrangement of
$196 million and a decrease in cash dividend payments of $9 million.
Refer to the ‘‘Debt Arrangements’’ table below for additional information about our debt balances at March 31, 2015.
Fiscal 2014 versus Fiscal 2013
Operating Activities
Net cash provided by continuing operating activities for fiscal 2014 was $973 million, representing a decrease of $386 million
compared with fiscal 2013. Net cash provided by continuing operating activities was unfavorably affected by an increase in
income tax payments of $180 million, which included an income tax refund received in the second quarter of fiscal 2014 of
$70 million. In addition, there was an unfavorable effect from the payments associated with the Fiscal 2014 Plan of
$105 million and an increase in internally developed software costs recognized as expense of approximately $116 million.
For fiscal 2013, other disbursements, net included the $35 million in cash proceeds received as other income from the
aforementioned intellectual property transaction in the first quarter of fiscal 2013.
Investing Activities
Net cash provided by investing activities from continuing operations for fiscal 2014 was $5 million compared with net cash
used in investing activities from continuing operations of $464 million for fiscal 2013. The change in net investing activities
was primarily due to a decrease in the amount capitalized for internally developed software costs of $116 million, a decrease
in restricted cash of $50 million and a decrease in net investments made during fiscal 2014 compared with fiscal 2013.
During fiscal 2014, we had maturities of short-term investments of $191 million and purchases of short-term investments of
$9 million, compared with purchases of short-term investments of $346 million and maturities of short-term investments of
$163 million during fiscal 2013. The year-over-year change in our investment amounts is a result of a change in the
allocation of our investment portfolio, which reduced our investments in instruments with maturities greater than 90 days.
These decreases were partially offset by an increase in cash paid for acquisitions of $57 million.
Financing Activities
Net cash used in financing activities from continuing operations for fiscal 2014 was $421 million compared with $938 million
in fiscal 2013. The decrease was primarily due to the receipt of proceeds of $498 million from our August 2013 debt
offering and an increase in the exercise of common stock options of $66 million during fiscal 2014, partially offset by an
increase in net repayments from our notional pooling arrangement of $36 million and an increase in common shares
repurchased of $14 million.
Refer to the ‘‘Debt Arrangements’’ table below for additional information about our debt balances at March 31, 2014.
45