Computer Associates 2002 Annual Report Download

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Annual Report 2002
Fiscal Year Ending 3/31/02
vision
innovation customers
quality value
©2002 Computer Associates International, Inc. (CA). All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. Printed in the U.S.A.
MP155100702 QG05GM02ARE
ca.com

Table of contents

  • Page 1
    ... innovation quality value customers ca.com Annual Report 2002 ©2002 Computer Associates International, Inc. (CA). All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. Printed in the U.S.A. MP155100702 QG05GM02ARE Fiscal Year Ending 3/31...

  • Page 2
    ...Contents Chairman's Letter to Shareholders President and CEO's Report on Fiscal 2002 The CA Commitment Delivering Value Building Strong Brands Innovation at Work Wireless Web Services Intelligence Safe and Secure Valuing Our Customers At Your Service The Value of Technical Leadership Senior Officers...

  • Page 3
    s mer o t s cu vision innovation quality value President and CEO's Report on Fiscal 2002 Dear Fellow Shareholder: Fiscal 2002 (ended March 31, 2002) was a defining year for Computer Associates International, Inc. (CA). In the midst of substantial macroeconomic pressure, a national tragedy in the ...

  • Page 4
    ... with CA. Customers can order and download products, update their account information and obtain support and assistance, all at their keyboards - any time of day or night. In short, every action we have taken has been designed to help customers derive the most value from both their CA technology and...

  • Page 5
    ..., CA has tied compensation of the top 500 managers across the Company to customer satisfaction and Company performance. Our business model is designed to give customers complete flexibility in managing their businesses. It's part of our strategy to deliver the true value of CA technology to...

  • Page 6
    ... changing hands. Computer Associates provides a critical part of our IT transaction processing network. Investors depend on us and we depend on CA." Charles B. Wang Founder and Chairman Computer Associates International, Inc. Richard A. Grasso Chairman and Chief Executive Officer New York Stock...

  • Page 7
    ...With its innovative technology, competitive business model and commitment to first-class customer service, Computer Associates continues to demonstrate its industry leadership. The Board of Directors is equally committed to working with CA to deliver consistent, long-lasting shareholder value." The...

  • Page 8
    ... open standards underscores a real commitment to customers. The Company is committed to helping customers integrate and manage whatever technology they choose to use. With today's rapid technology evolutions, that's a powerful way to deliver value." Russell M. Artzt Executive Vice President Computer...

  • Page 9
    ... using technology to enrich our lives. From joint technology programs for students to technology incubator programs, CA gives new meaning to the term social responsibility." Roel Pieper Managing Partner Favonius Ventures Shirley Strum Kenny President State University of New York at Stony Brook 14...

  • Page 10
    ... . de Vogel Managing Partner Three Cities Research, Inc. Shirley Strum Kenny President State University of New York at Stony Brook Charles B. Wang Founder and Chairman Computer Associates International, Inc. Sanjay Kumar President and Chief Executive Officer Computer Associates International, Inc...

  • Page 11
    ... standards, including consideration of the internal control structure and financial reporting matters, for purposes of designing their audit approach. Sanjay Kumar Ira H. Zar President and Chief Executive Officer Computer Associates International, Inc. May 10, 2002 Executive Vice President...

  • Page 12
    ...Company did prior to the quarter ended December 31, 2000. The terms of these new arrangements are structured such that product revenue is generally recognized ratably over the term of the license on a monthly basis, which has impacted the Company's reported revenue on a Generally Accepted Accounting...

  • Page 13
    ... future software products within designated product lines. Under these arrangements, the Company begins to recognize revenue ratably over the term of the license arrangement after meeting the four revenue recognition criteria as noted above. As was the case prior to December 2000, maintenance...

  • Page 14
    ... to license arrangements under the new business model. For the fiscal year ended March 31, 2001, the Company recorded $1.429 billion under the old business model. The remaining items that comprise software fees and other is primarily revenue associated with sales to distributors, resellers and...

  • Page 15
    ... to the purchase of PLATINUM and Sterling under the assumption that the Company, PLATINUM and Sterling operated under the new business model since their inception. Pro forma operating results are calculated by adjusting prior period revenue recorded under the old business model to revenue recognized...

  • Page 16
    ...Sterling at the time of the purchase were composed primarily of application development and information management, business intelligence, network management and storage management tools and solutions. The acquired projects included add-on features, tools and next-generation versions of COOL, VISION...

  • Page 17
    ... expects to renew its bank credit lines prior to their expiration, during the quarter ended June 30, 2003. The Company expects its long-standing history of providing extended payment terms to customers to continue under the new business model. Contractual Obligations and Commitments As of March...

  • Page 18
    ... installment payment terms in connection with its software solution sales. The aggregate contract value under the old business model includes an imputed interest element, which can vary with the interest rate environment. Each 25 basis point increase in interest rates would have an associated annual...

  • Page 19
    ..., Inc. (5) Includes an after-tax charge of $675 million related to the 1995 Stock Plan. (6) Includes an after-tax charge of $21 million related to the Company's unsuccessful tender offer for Computer Sciences Corporation. (7) Adjusted to reflect prior period reclassifications. See Note 1 of...

  • Page 20
    ... portion of long-term debt Accounts payable Salaries, wages and commissions Accrued expenses and other current liabilities Deferred subscription revenue (collected) - current Taxes payable, other than income taxes payable Federal, state and foreign income taxes payable Deferred income taxes TOTAL...

  • Page 21
    ... per share) Exercise of common stock options, ESPP and other 1995 Stock Plan 401(k) discretionary contribution Purchases of treasury stock Balance at March 31, 2001 Net loss Translation adjustment in 2002 Unrealized loss on equity securities, net of tax Comprehensive loss Dividends declared ($.080...

  • Page 22
    ... the end user by the distribution partner. Maintenance: For arrangements executed under the old business model, maintenance was bundled for a portion of the term of the license arrangement. Under these arrangements, the fair value of the maintenance, which was based on optional annual renewal rates...

  • Page 23
    ...-line method in fiscal years 2002, 2001 and 2000, as anticipated future revenue is projected to increase for several years considering the Company is continuously integrating current enterprise software technology into new solutions. The carrying values of goodwill, purchase software products...

  • Page 24
    ... FSG as an indicator of its fair value and adjusted the allocation of Sterling's purchase price. As a result, no gain or loss was recorded on the sale. During fiscal years 2002, 2001 and 2000, the Company acquired other consulting businesses and product technologies in addition to the ones described...

  • Page 25
    ... the design, development, marketing, licensing and support of integrated enterprise computer software solutions operating on a diverse range of hardware platforms and operating systems. The Company does not manage its business by solution or focus area and therefore does not maintain its revenue on...

  • Page 26
    ... - Trade and Installment Accounts Receivable The Company uses installment contracts as a standard business practice and has a history of successfully collecting under the original payment terms without making concessions on payments, software products, maintenance or professional services. Net trade...

  • Page 27
    ...with joint venture agreements. In prior fiscal years, the Company sold individual accounts receivable under the old business model to an external third party subject to certain recourse provisions. These amounts approximated $218 million at March 31, 2002. The Company, Charles B. Wang, Sanjay Kumar...

  • Page 28
    ...Plan (the "1991 Plan") provides that stock appreciation rights and/or options, both qualified and non-statutory, to purchase up to 67.5 million shares of Common Stock of the Company may be granted to employees (including officers of the Company). Options granted thereunder may be exercised in annual...

  • Page 29
    ...Global Technologies, Inc. ("SSA") of certain assets of the Company, principally the supply-chain management, financial management and human resource management product lines under the name interBizâ„¢. These interBiz operations generated approximately $82 million of revenue for the fiscal year ended...

  • Page 30
    ... of the Annual Report on Form 10-K, filed with the Securities and Exchange Commission, is available without charge upon written request addressed to: Investor Relations Computer Associates International, Inc. One Computer Associates Plaza Islandia, NY 11749 General Company information and quarterly...