Computer Associates 2015 Annual Report Download - page 95

A roll-forward of the Company’s uncertain tax positions for all U.S. federal, state and foreign tax jurisdictions was as
follows:
AT MARCH 31,
(in millions) 2015 2014
Balance at beginning of year $ 170 $ 382
Additions for tax positions related to the current year 16 20
Additions for tax positions from prior years 23 70
Reductions for tax positions from prior years (43) (233)
Settlement payments (5) (61)
Statute of limitations expiration (13) (11)
Translation and other (14) 3
Balance at end of year $ 134 $ 170
The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $109 million and
$127 million at March 31, 2015 and 2014, respectively. The gross amount of interest and penalties accrued, reported in
‘‘Total liabilities,’’ was approximately $28 million and $32 million for fiscal years 2015 and 2014, respectively. The amount of
interest and penalties decreased approximately $4 million and $72 million for fiscal years 2015 and 2014, respectively.
A number of years may elapse before a particular uncertain tax position for which the Company has not recorded a
financial statement benefit is audited and finally resolved. The number of years with open tax audits varies depending on
the tax jurisdiction. The Company is subject to tax audits in the following major taxing jurisdictions:
• United States — federal tax years are open for years 2013 and forward;
• Brazil — tax years are open for years 2008 and forward;
• Canada — federal tax years are open for years 2010 and forward; and
• Italy — tax years are open for years 2008 and forward.
In November 2013, the Company received a tax assessment of approximately Brazilian reais 211 million (which translated to
approximately $66 million at March 31, 2015), including interest and penalties, from the Brazilian tax authority relating to
fiscal years 2008-2013. The assessment included a report of findings in connection with the examination. The Company
disagrees with the proposed adjustments in the assessment and intends to vigorously dispute these matters through
applicable administrative and judicial procedures, as appropriate. While the Company believes that it will ultimately prevail,
if the assessment is not resolved in favor of the Company, it would have an impact on the Company’s consolidated financial
position, cash flows and results of operations.
The Company does not believe it is reasonably possible that the amount of unrecognized tax benefits will significantly
increase or decrease within the next 12 months.
Note 16 — Supplemental Statement of Cash Flows Information
Interest payments, net for fiscal years 2015, 2014 and 2013 were approximately $75 million, $70 million and $61 million,
respectively. Income taxes paid, net from continuing operations for fiscal years 2015, 2014 and 2013 were approximately
$411 million, $489 million and $309 million, respectively. For fiscal years 2015, 2014 and 2013, the excess tax benefits from
share-based incentive awards included in financing activities from continuing operations were approximately $3 million,
$6 million and $8 million, respectively.
Non-cash financing activities for fiscal years 2015, 2014 and 2013 consisted of treasury common shares issued in connection
with the following: share-based incentive awards issued under the Company’s equity compensation plans of approximately
$44 million (net of approximately $28 million of income taxes withheld), $48 million (net of approximately $28 million of
income taxes withheld) and $64 million (net of approximately $34 million of income taxes withheld), respectively; and
discretionary stock contributions to the CA, Inc. Savings Harvest Plan of approximately $26 million, $28 million and
$29 million, respectively. Non-cash financing activities for fiscal years 2015, 2014 and 2013 included approximately
$5 million, $4 million and $6 million, respectively, in treasury common shares issued in connection with the Company’s
Employee Stock Purchase Plan.
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