Computer Associates 2015 Annual Report Download - page 50

During fiscal 2014, we repurchased 16.3 million shares of our common stock for $505 million, which completed our previous
stock repurchase program.
During fiscal 2013, we completed an Accelerated Share Repurchase (ASR) agreement with a bank to repurchase
$500 million of our common stock, which was entered into during the fourth quarter of fiscal 2012. During the first quarter
of fiscal 2013, we received 3.7 million additional shares and, as a result, the initial amount recorded as additional paid-in
capital of $125 million was reclassified to treasury stock. The final number of shares delivered upon settlement of the
agreement was determined based on the average price of our common stock over the term of the ASR agreement.
Dividends
We have paid cash dividends each year since July 1990. For each of fiscal 2015, 2014 and 2013, we paid annual cash
dividends of $1.00 per share. For each of fiscal 2015, 2014 and 2013, we paid quarterly cash dividends of $0.25 per share.
Effect of Foreign Exchange Rate Changes
There was a $532 million unfavorable impact to our cash balances in fiscal 2015 predominantly due to the strengthening of
the U.S. dollar against the euro (22%), the Brazilian real (29%), the British pound sterling (11%), the Australian dollar
(18%), the Israeli shekel (12%), the Norwegian krone (26%), the Japanese yen (14%) and the Danish krone (22%).
There was a $62 million favorable impact to our cash balances in fiscal 2014 predominantly due to the weakening of the
U.S. dollar against the euro (7%), the British pound sterling (10%) and the Israeli shekel (5%), partially offset by the
strengthening of the U.S. dollar against the Brazilian real (11%), the Australian dollar (11%) and the Japanese yen (9%).
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements with unconsolidated entities or related parties and, accordingly,
off-balance sheet risks to our liquidity and capital resources from unconsolidated entities are limited.
Contractual Obligations and Commitments
We have commitments under certain contractual arrangements to make future payments for goods and services. These
contractual arrangements secure the rights to various assets and services to be used in the future in the normal course of
business. For example, we are contractually committed to make certain minimum lease payments for the use of property
under operating lease agreements. In accordance with current accounting rules, the future rights and related obligations
pertaining to such contractual arrangements are not reported as assets or liabilities on our Consolidated Balance Sheets. We
expect to fund these contractual arrangements with cash generated from operations in the normal course of business.
The following table summarizes our contractual arrangements at March 31, 2015 and the timing and effect that those
commitments are expected to have on our liquidity and cash flow in future periods. In addition, the table summarizes the
timing of payments on our debt obligations as reported on our Consolidated Balance Sheet at March 31, 2015.
PAYMENTS DUE BY PERIOD
LESS THAN 1-3 3-5 MORE THAN
CONTRACTUAL OBLIGATIONS TOTAL 1 YEAR YEARS YEARS 5 YEARS
(in millions)
Long-term debt obligations (inclusive of interest) $ 1,577 $ 60 $ 120 $1,108 $ 289
Operating lease obligations(1) 399 80 135 99 85
Purchase obligations 174 105 59 10 —
Other obligations(2) 61 19 17 10 15
Total $ 2,211 $ 264 $ 331 $1,227 $ 389
(1) The contractual obligations for noncurrent operating leases exclude sublease income totaling $23 million expected to be received in the following periods: $4 million (less than
1 year); $8 million (1-3 years); $7 million (3-5 years); and $4 million (more than 5 years).
(2) $159 million of estimated liabilities related to unrecognized tax benefits are excluded from the contractual obligations table because we could not make a reasonable estimate of
when those amounts will become payable.
Critical Accounting Policies and Estimates
We review our financial reporting and disclosure practices and accounting policies quarterly to help ensure that they provide
accurate and transparent information relative to the current economic and business environment. Note 1, ‘‘Significant
Accounting Policies’’ in the Notes to the Consolidated Financial Statements contains a summary of the significant
accounting policies that we use. Many of these accounting policies involve complex situations and require a high degree of
judgment, either in the application and interpretation of existing accounting literature or in the development of estimates
that affect our financial statements. On an ongoing basis, we evaluate our estimates and judgments based on historical
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