Computer Associates 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 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 106

  • 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
  • 105
  • 106

The opportunity
is everywhere.
Annual Report 2014

Table of contents

  • Page 1
    The opportunity is everywhere. Annual Report 2014

  • Page 2
    ...base to goals and strategy Financial Disciplined and thoughtful execution of transformation Met all financial guidance metrics for the year Brand New tools and strategies Highly focused on demand generation Focused on building customer attention and interest 1 CA Technologies Annual Report 2014

  • Page 3
    ... a world that is increasingly driven by software and applications, I see even greater opportunity for CA to grow and thrive. We are hard at work building our company to seize this opportunity. We are creating new innovation capabilities and adopting new sales models that connect us more directly to...

  • Page 4
    ...innovation. We made some tough decisions to rebalance our workforce toward the skills we need to grow in a SaaS/Cloud world. We also updated our sales strategy to bring it more in line with how a modern software company goes to market. We added 710 new logos in FY2014-up 45 percent from FY2013. More...

  • Page 5
    ...been 200,735,721 data records lost or stolen worldwide in the first quarter of 2014 alone. Source: Breach Level Index (powered by SafeNet), breachlevelindex.com T¢™h£ology Group, worldwide sales, channels/partners, marketing, and general managers in two key business units. This underscores our...

  • Page 6
    ... Gartner, Inc. ("Gartner"), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of this Prospectus) and the opinions expressed in the Gartner Report(s) are subject to change without notice. 5 CA Technologies Annual Report 2014

  • Page 7
    ..., our shareholders, for your support as we redefine our company. I hope you share our excitement for what the future holds as we continue to hone our ability to power the apps that power the world. Michael P. Gregoire Chief Executive Officer CA Technologies CA Technologies Annual Report 2014 6

  • Page 8
    (This page intentionally left blank.) 7 CA Technologies Annual Report 2014

  • Page 9
    ... of Incorporation or Organization) 13-2857434 (I.R.S. Employer Identification Number) 520 Madison Avenue, New York, New York (Address of Principal Executive Offices) 1-800-225-5224 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the...

  • Page 10
    (THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.)

  • Page 11
    ...49 Part III Item 10. Directors, Executive Officers and Corporate Governance Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Item 13. Certain Relationships and Related Transactions, and Director Independence Item...

  • Page 12
    (THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.)

  • Page 13
    ...opened a new center in Bangalore that will focus on organic innovation and developing differentiated, next generation solutions in emerging technologies like mobility, digital payments, big data, data science analytics and advanced analytics. • In March 2014, we entered into a definitive agreement...

  • Page 14
    ...by the end of fiscal 2014. We made the following changes to our executive officers: • In May 2014, Amit Chatterjee was named Executive Vice President, Enterprise Solutions and Technology Group. • In January 2014, Adam Elster was named Executive Vice President and Group Executive, Worldwide Sales...

  • Page 15
    ... to IT to gain a competitive edge through faster delivery of products and services, new customer acquisition, and agile responses to market change. Our objective is to be the world's leading independent software provider for IT management and security solutions to help organizations and enterprises...

  • Page 16
    ...commercial and government customers. With 1,300 certified consultants, architects, and project managers located in 28 countries and an extensive partner ecosystem, CA Services works with customers to navigate complex business and technology challenges and deliver the services that best meet customer...

  • Page 17
    ... services providers, government agencies, global service providers, telecommunication providers, manufacturers, technology companies, retailers, educational organizations and health care institutions. No single customer accounted for 10% or more of our total revenue for fiscal 2014, 2013 or 2012...

  • Page 18
    ... development centers in Islandia, New York; Framingham, Massachusetts; Santa Clara, California; Prague, Czech Republic; and Hyderabad and Bangalore, India. In fiscal 2014, research and development focused on three main areas: leveraging technological advances and market forces to ensure our products...

  • Page 19
    ... of our products and technology, we are not aware of any single patent that is essential to us or to any of our reportable segments. The source code for our products is protected both as trade secrets and as copyrighted works. Our customers do not generally have access to the source code for our...

  • Page 20
    ..., our contracts provide customers with the right to use our products under a variety of models including, but not limited to: • A typical designated CPU (central processing unit) license, under which the customer may use the licensed product on a single, designated CPU. • A MIPS (millions...

  • Page 21
    ...traded on The NASDAQ Global Select Market tier of The NASDAQ Stock Market LLC under the symbol ''CA.'' Our corporate website address is www.ca.com. All filings we make with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our...

  • Page 22
    ... accessing credit sources; delay contractual payments; or delay or forgo decisions to (i) license new products (particularly with respect to discretionary spending for software), (ii) upgrade their existing environments or (iii) purchase services. Any such impacts could materially adversely affect...

  • Page 23
    ...integrators, technology partners, managed service providers, solution providers, distributors of volume partners and exclusive representatives in partner programs that require training and expertise to sell these solutions, and global penetration to grow these aspects of our business. The failure to...

  • Page 24
    ... our ability to develop software compatible with third-party software products in the future. Some software providers and hardware manufacturers, including some of the largest vendors, have a policy of restricting the use or availability of their code or technical documentation for some of their...

  • Page 25
    ... of electronic data and records, and report financial and management information, including the filing of our quarterly or annual reports with the SEC, on a timely and accurate basis. Failure to properly or adequately address these issues, as well as managing and protecting our infrastructure...

  • Page 26
    ... to manage and secure IT infrastructures and environments, we expect to be an ongoing target of attacks specifically designed to impede the performance of our products. Experienced computer programmers or hackers may attempt to penetrate our network security or the security of our data centers and...

  • Page 27
    ... upon our proprietary technology, including our software and our source code for that software. Failure to protect such technology could lead to the loss of valuable assets and our competitive advantage. We protect our proprietary information through the use of patents, copyrights, trademarks, trade...

  • Page 28
    ... of our software contracts. These factors can make it difficult for us to predict sales and cash flow on a quarterly basis. Any failure or delay in executing new or renewed license agreements in a given quarter could cause declines in some of our key financial metrics (e.g., revenue or cash...

  • Page 29
    ... requirements. At March 31, 2014, we leased 43 facilities throughout the United States and 62 facilities outside the United States; these totals exclude 25 executive suite locations globally, of which 7 are in the United States and 18 are outside the United States. Our lease obligations expire on...

  • Page 30
    ... Officer at Nortel Networks Corporation from May 2006 to December 2008. Amy Fliegelman Olli, 50, has been Executive Vice President and General Counsel of the Company since February 2007. She is responsible for all of the Company's legal, compliance, internal audit and enterprise risk management...

  • Page 31
    ... quarter of fiscal 2014: Issuer Purchases of Equity Securities TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS APPROXIMATE DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS PERIOD TOTAL NUMBER OF SHARES PURCHASED AVERAGE PRICE PAID...

  • Page 32
    ... of fiscal 2012. In fiscal 2011 and 2010, dividends declared per common share were $0.04 per quarter. Working capital surplus is current assets less current liabilities. Deferred revenue includes amounts billed or collected in advance of revenue recognition, including subscription license agreements...

  • Page 33
    ... customer base, reach new segments and grow in key global markets. CA Technologies Business Model We generate revenue from the following sources: license fees - licensing our products on a right-to-use basis; maintenance fees - providing customer technical support and product enhancements; service...

  • Page 34
    ... purchase maintenance and support services that provide technical support and any general product enhancements released during the maintenance period. Under a perpetual license, the customer has the right to use the licensed program for an indefinite period of time upon payment of a one-time license...

  • Page 35
    • Within total bookings, total new product and mainframe solutions capacity sales decreased by approximately 10% for fiscal 2014 compared with fiscal 2013 primarily due to a decrease in mainframe solutions capacity sales in the fourth quarter of fiscal 2014. Mainframe solutions new product sales ...

  • Page 36
    ... of the related software license. Software fees and other revenue generally represents license fee revenue recognized at the inception of a license agreement (up-front basis) and also includes our SaaS revenue, which is recognized as services are provided. Total Bookings - Total bookings, or sales...

  • Page 37
    ...tracked by us, requires estimation by management and has not been historically reported. Within a given period, the amount of new product and capacity sales may not be material to the change in our total bookings or revenue compared with prior periods. New product and capacity sales can be reflected...

  • Page 38
    .... YEAR ENDED MARCH 31, 2014(1) 2013(1) 2012(1) DOLLAR CHANGE 2014/2013 (dollars in millions) PERCENT CHANGE 2014/2013 DOLLAR CHANGE 2013/2012 PERCENT CHANGE 2013/2012 Revenue: Subscription and maintenance Professional services Software fees and other Total revenue Expenses: Costs of licensing and...

  • Page 39
    ... license agreements that were in effect during the period, generally including maintenance that is bundled with and not separately identifiable from software usage fees or product sales, (ii) maintenance agreements associated with providing customer technical support and access to software...

  • Page 40
    ...with a litigation settlement with Rocket Software, Inc. (Rocket) which occurred in the third quarter of fiscal 2012. Rocket did not admit any wrongdoing in connection with this settlement. As part of this settlement, Rocket agreed to license technology from us, including source code authored several...

  • Page 41
    ... unfavorable foreign exchange effect, revenue declined in all regions except the Latin America region. Price changes do not have a material effect on revenue in a given period as a result of our ratable subscription model. Expenses Operating expenses for fiscal 2014 increased compared with fiscal...

  • Page 42
    ... and amortization from assets acquired from our fiscal 2012 acquisitions. Selling and Marketing Selling and marketing expenses include the costs relating to our sales force, channel partners, corporate and business marketing and customer training programs. For fiscal 2014, the decrease in selling...

  • Page 43
    ... Software Costs'' above), partially offset by a decrease in personnel-related costs from a reduced headcount as a result of the Fiscal 2014 Plan and prior year workforce reduction actions. For fiscal 2013 and fiscal 2012, product development and enhancements expenses represented 11% of total revenue...

  • Page 44
    ... fourth quarter of fiscal 2014, the Company entered into a definitive agreement to divest its CA ERwin Data Modeling solution assets (ERwin). The Company expects to close the sale of ERwin during fiscal 2015. The results of discontinued operations for fiscal 2014, 2013 and 2012 included revenue of...

  • Page 45
    ... included within internal contract approval documents; or (3) the value for individual software products as stated in the customer contract. The price for the implementation, consulting, education and training services is separately stated in the contract and these amounts of contract revenue are...

  • Page 46
    ... from prior periods. Within Enterprise Solutions revenue, there was a decrease in revenue from our service assurance, automation and data management products, partially offset by an increase in revenue attributable to our ITKO and Nimsoft products. Enterprise Solutions operating margin for fiscal...

  • Page 47
    ... go-to-market initiative. In fiscal 2013, total bookings decreased compared with fiscal 2012 in the United States and Europe, Middle East and Africa regions and increased in the Asia Pacific Japan and Latin America regions. Total new product and mainframe solutions capacity sales in fiscal 2013...

  • Page 48
    ... to change materially from historical levels for end-user contracts. Selected Quarterly Information FISCAL 2014 QUARTER ENDED JUNE 30(1) SEPTEMBER 30(1) DECEMBER 31(1) MARCH 31(1) TOTAL(1) (dollars in millions, except per share amounts) Revenue Percentage of annual revenue Costs of licensing and...

  • Page 49
    ... license agreements to be executed in future periods. For fiscal 2014, gross receipts related to single installments for the entire contract value, or a substantial portion of the contract value, were $502 million compared with $672 million in fiscal 2013. In any quarter, we may receive payments...

  • Page 50
    ...future cash collections: Total billings backlog Trade accounts receivable, net Total expected future cash collections (1) Information presented excludes the results of our discontinued operations. $ $ 4,355 800 5,155 $ $ 4,313 856 5,169 Total billings backlog in fiscal 2014 compared with fiscal...

  • Page 51
    ... by Operating Activities YEAR ENDED MARCH 31, 2014(1) 2013(1) 2012(1) (in millions) $ CHANGE 2014 / 2013 2013 / 2012 Cash collections from billings(2) Vendor disbursements and payroll(2) Income tax payments, net Other disbursements, net(3) Net cash provided by continuing operating activities...

  • Page 52
    ..., a decrease in purchases of property and equipment of $22 million and a decrease in capitalized software development costs of $15..., and will receive payment at 5.625%. The LIBOR-based rate is set quarterly three months prior to the date of the interest payment. At March 31, 2014, the fair value ...

  • Page 53
    ... Board of Directors on January 23, 2012, we were authorized to acquire up to $1.5 billion of our common stock. As part of the capital allocation program, we entered into an accelerated share repurchase agreement with a bank in the fourth quarter of fiscal 2012 to purchase $500 million of our common...

  • Page 54
    ... their complexity and the high degree of judgment involved in implementing them. Revenue Recognition We generate revenue from the following primary sources: (1) licensing software products, including SaaS license agreements; (2) providing customer technical support (referred to as maintenance); and...

  • Page 55
    ...services are performed. Revenue and costs from committed professional services that are sold as part of a software license agreement are deferred and recognized on a ratable basis over the life of the related software transaction. In the event that agreements with our customers are executed in close...

  • Page 56
    ... bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be five years from the date the product became available for general release to customers. We...

  • Page 57
    ... for a description of our material legal proceedings. New Accounting Pronouncements Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-08, Presentation...

  • Page 58
    ...data is included in the ''Selected Quarterly Information'' section of Item 7, ''Management's Discussion and Analysis of Financial Condition and Results of Operations.'' Information on the effects of changing prices is not required. Item 9. Changes in and Disagreements with Accountants on Accounting...

  • Page 59
    ... The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company...

  • Page 60
    ... Resources Committee Report on Executive Compensation'' in the definitive proxy statement to be filed with the SEC relating to our 2014 Annual Meeting of Stockholders is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder...

  • Page 61
    ... of Designation and Terms of the Participating Preferred Stock of the Company. Indenture with respect to the Company's 4.75% Senior Notes due 2009 and 6.125% Senior Notes due 2014 dated November 18, 2004 between the Company and The Bank of New York, as Trustee. Purchase Agreement dated November...

  • Page 62
    ... DESCRIPTION FORM EXHIBIT FILED OR FURNISHED HEREWITH 10.1* CA, Inc. 2002 Incentive Plan (amended and restated effective as of April 27, 2007). CA, Inc. 2002 Compensation Plan for Non-Employee Directors. Deferred Prosecution Agreement, including the related Information and Stipulation of Facts...

  • Page 63
    ... 2003 Compensation Plan for Non-Employee Directors (amended and restated dated December 31, 2010). Letter dated May 18, 2011 from the Company to Richard J. Beckert regarding terms of employment. Letter dated April 26, 2011 from the Company to Peter JL Griffiths regarding terms of employment. CA, Inc...

  • Page 64
    ...Flaherty under the CA, Inc. 2011 Incentive Plan - Restricted Stock Units. Form of Sign-On Award Agreement for Lauren P. Flaherty under the CA, Inc. 2011 Incentive Plan - Nonqualified Stock Options. Letter dated January 21, 2014 from the Company to Adam Elster regarding terms of employment. Schedules...

  • Page 65
    ... FORM EXHIBIT FILED OR FURNISHED HEREWITH 10.62* Separation Agreement and General Claims Release dated February 14, 2014 between the Company and George J. Fischer. CA, Inc. Executive Severance Policy effective May 13, 2014. Summary description of Director compensation. Statement of Ratios...

  • Page 66
    ... Chief Executive Officer (Principal Executive Officer) By: /s/ Richard J. Beckert Richard J. Beckert Executive Vice President and Chief Financial Officer (Principal Financial Officer) By: /s/ Neil A. Manna Neil A. Manna Senior Vice President, Chief Accounting Officer (Principal Accounting Officer...

  • Page 67
    .... * Jens Alder * Raymond J. Bromark * Gary J. Fernandes * Michael P. Gregoire * Rohit Kapoor * Kay Koplovitz * Christopher B. Lofgren * Richard Sulpizio * Laura S. Unger * Arthur F. Weinbach * Renato (Ron) Zambonini *By: /s/ C.H.R. DuPree C.H.R. DuPree Attorney-in-fact Dated: May 19, 2014 Director...

  • Page 68
    CA, Inc. and Subsidiaries New York, New York Annual Report on Form 10-K Item 8, Item 9A, Item 15(a)(1) and (2), and Item 15(c) List of Consolidated Financial Statements and Financial Statement Schedule Consolidated Financial Statements and Financial Statement Schedule Year ended March 31, 2014 PAGE...

  • Page 69
    ... period ended March 31, 2014, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related consolidated financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material...

  • Page 70
    ...long-term debt Accounts payable Accrued salaries, wages and commissions Accrued expenses and other current liabilities Deferred revenue (billed or collected) Taxes payable, other than income taxes payable Federal, state and foreign income taxes payable Deferred income taxes Total current liabilities...

  • Page 71
    CA, Inc. and Subsidiaries Consolidated Statements of Operations YEAR ENDED MARCH 31, (in millions, except per share amounts) 2014 2013 2012 Revenue: Subscription and maintenance Professional services Software fees and other Total revenue Expenses: Costs of licensing and maintenance Cost of ...

  • Page 72
    CA, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income YEAR ENDED MARCH 31, (in millions) 2014 2013 2012 Net income Other comprehensive loss: Foreign currency translation adjustments Total other comprehensive loss Comprehensive income See accompanying Notes to the Consolidated ...

  • Page 73
    ... Net income Other comprehensive loss Comprehensive income Share-based compensation Dividends declared Release of restricted stock, exercise of common stock options, ESPP and other items Treasury stock purchased Balance at March 31, 2014 See accompanying Notes to the Consolidated Financial Statements...

  • Page 74
    ... in accrued salaries, wages and commissions Changes in other operating assets and liabilities Net cash provided by operating activities - continuing operations Investing activities from continuing operations: Acquisitions of businesses, net of cash acquired, and purchased software Purchases of...

  • Page 75
    ... the end of the reporting period. (d) Divestitures: In the fourth quarter of fiscal year 2014, the Company entered into a definitive agreement to divest its CA ERwin Data Modeling solution assets. The results of operations associated with the sale of this business have been presented as discontinued...

  • Page 76
    ... agreements and also generally include maintenance; (ii) maintenance agreements associated with providing customer technical support and access to software fixes and upgrades which are separately identifiable from software usage fees or product sales; or (iii) software license agreements bundled...

  • Page 77
    ... and cash equivalents were maintained outside the United States at March 31, 2014 and 2013, respectively. Total interest income, which primarily relates to the Company's cash and cash equivalent balances and investments, for fiscal years 2014, 2013 and 2012 was approximately $21 million, $20 million...

  • Page 78
    ... revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be 5 years from the date the product became available for general release...

  • Page 79
    ...basis. Unearned revenue on billed installments (collected or uncollected) is reported as deferred revenue in the liabilities section of the Consolidated Balance Sheets. Deferred revenue (billed or collected) excludes contractual commitments executed under license and maintenance agreements that will...

  • Page 80
    ... to provide security and management technology to the API marketplace that complements its current identity and access management software suite. The total purchase price of the Layer 7 acquisition was approximately $155 million. The pro forma effects of the Company's first quarter fiscal year 2014...

  • Page 81
    The income from the discontinued component for fiscal years 2014, 2013 and 2012 consisted of the following: YEAR ENDED MARCH 31, (in millions) 2014 2013 2012 Subscription and maintenance Software fees and other Total revenue Income from operations of discontinued components, net of tax expense of ...

  • Page 82
    ... executed under license agreements. The components of ''Trade accounts receivable, net'' were as follows: AT MARCH 31, (in millions) 2014 2013 Accounts receivable - billed Accounts receivable - unbilled Other receivables Less: Allowances Trade accounts receivable, net $ 739 61 19 (19) 800...

  • Page 83
    ...recognized at March 31, 2014, the annual amortization expense over the next five fiscal years is expected to be as follows: YEAR ENDED MARCH 31, (in millions) 2015 2016 2017 2018 2019 Purchased software products Internally developed software products Other intangible assets Total $ 113 150 53 316...

  • Page 84
    ... 31, (in millions) 2014 2013 Current: Subscription and maintenance Professional services Software fees and other Total deferred revenue (billed or collected) - current Noncurrent: Subscription and maintenance Professional services Software fees and other Total deferred revenue (billed or collected...

  • Page 85
    .... Total interest expense relating to borrowings under the revolving credit facility for fiscal year 2012 was less than $1 million. The revolving credit facility contains customary covenants for borrowings of this type, including two financial covenants: (i) for the 12 months ending each quarter-end...

  • Page 86
    ... operating outside the United States and uses guarantees and letters of credit issued by financial institutions to guarantee performance on certain contracts. At March 31, 2014 and 2013, approximately $49 million and $53 million, respectively, of this line of credit were pledged in support of bank...

  • Page 87
    ...March 31, 2013, foreign currency contracts outstanding consisted of purchase and sales contracts with a total notional value of approximately $597 ... OPERATIONS LOCATION OF AMOUNTS RECOGNIZED (in millions) YEAR ENDED MARCH 31, 2014 2013 2012 Interest expense, net - interest rate swaps designated as ...

  • Page 88
    ...31, 2014 CARRYING VALUE ESTIMATED FAIR VALUE AT MARCH 31, 2013 CARRYING VALUE ESTIMATED FAIR VALUE (in millions) Liabilities: Total debt(1) Facility exit reserve(2) (1) (2) $ $ 1,766 30 $ $ 1,884 33 $ $ 1,290 23 $ $ 1,413 27 Estimated fair value of total debt is based on quoted prices for...

  • Page 89
    .... The Company, the General Services Administration (GSA) and the U.S. Department of Justice (DOJ) have been and continue to be in discussions and document production related to the pricing of the Company's government sales transactions under the Company's GSA schedule contract, entered into in 2002...

  • Page 90
    ... Company's announcement that a person or group (an Acquiring Person) has become the beneficial owner of 20% or more of the Company's outstanding common stock (other than Martin Haefner and Eva Maria Bucher-Haefner and their respective affiliates and associates, who are ''grandfathered'' under this...

  • Page 91
    ... years 2014, 2013 and 2012, respectively, were considered participating securities in the calculation of net income allocable to common stockholders. Note 14 - Stock Plans Share-based incentive awards are provided to employees under the terms of the Company's equity incentive compensation plans...

  • Page 92
    ... for the periods indicated: YEAR ENDED MARCH 31, (in millions) 2014 2013 2012 Costs of licensing and maintenance Cost of professional services Selling and marketing General and administrative Product development and enhancements Share-based compensation expense before tax Income tax benefit...

  • Page 93
    ... the date of grant using the Black-Scholes option pricing model. The Company believes that the valuation technique and the...as follows: YEAR ENDED MARCH 31, 2014 2013 2012 Weighted average fair value Dividend yield Expected volatility factor(1) Risk-free interest rate(2) Expected life (in years)(3) ...

  • Page 94
    ... RSAs and RSUs released during fiscal years 2014, 2013 and 2012 was approximately $77 million, $92 million and $73 million, respectively. Performance Awards: The Company rewards certain senior executives with performance awards under its long-term incentive plans. These Performance Share Units (PSUs...

  • Page 95
    ... (benefit) from continuing operations consisted of the following: YEAR ENDED MARCH 31, (in millions) 2014 2013 2012 Current: Federal State Foreign Total current Deferred: Federal State Foreign Total deferred Total: Federal State Foreign Total income tax expense from continuing operations $ 190 33...

  • Page 96
    ...) 2014 2013 Deferred tax assets: Modified accrual basis accounting for revenue Share-based compensation Accrued expenses Net operating losses Intangible assets amortizable for tax purposes Deductible state tax and interest benefits Other Total deferred tax assets Valuation allowances Total deferred...

  • Page 97
    ...). In addition, at March 31, 2014, the Company recorded approximately $17 million of deferred tax assets for future deductions of interest and state income taxes related to these uncertain tax positions. At March 31, 2013, the gross liability for income taxes associated with uncertain tax positions...

  • Page 98
    ... included within internal contract approval documents; or (3) the value for individual software products as stated in the customer contract. The price for the implementation, consulting, education and training services is separately stated in the contract and these amounts of contract revenue are...

  • Page 99
    ... do not include share-based compensation expense; amortization of purchased software; amortization of other intangible assets; costs associated with our Fiscal 2014 Plan; and other miscellaneous costs. Additionally, starting in the first quarter of fiscal year 2014, the measure of segment expenses...

  • Page 100
    ...operations before income taxes for fiscal year 2012: Segment profit Less: Purchased software amortization Other intangibles amortization Software development costs capitalized Internally developed software products amortization Share-based compensation expense Other (gains) expenses, net(1) Interest...

  • Page 101
    ... area for fiscal years 2014, 2013 and 2012: (in millions) UNITED STATES EMEA(1) OTHER ELIMINATIONS TOTAL Year Ended March 31, 2014 Revenue: From unaffiliated customers Between geographic areas(2) Total revenue Property and equipment, net Total assets Total liabilities Year Ended March 31, 2013...

  • Page 102
    ...) CHARGED/ (CREDITED) TO COSTS AND EXPENSES BALANCE AT END OF PERIOD DESCRIPTION DEDUCTIONS(1) Allowance for doubtful accounts (in millions) Year ended March 31, 2014 Year ended March 31, 2013 Year ended March 31, 2012 (1) Write-off of amounts against allowance provided $ $ $ 24 16 22...

  • Page 103
    ... Total Return* Among CA, Inc., the S&P 500 Index, and S&P Software $300 $250 $200 $150 $100 $50 $0 CA, Inc. S&P 500 S&P Software *$100 invested on 3/31/09 in stock or index, including reinvestment of dividends. Fiscal year ending March 31. 3/09 3/10 3/11 3/12 3/13 3/14 Copyright © 2014...

  • Page 104
    ...A copy 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 CA, Inc. 520 Madison Avenue New York, NY 10022 The Form 10-K, quarterly earnings releases and general Company information can...

  • Page 105
    ... Richard J. Beckert Executive Vice President and Chief Financial Officer Amit Chatterjee Executive Vice President, Enterprise Solutions and Technology Group Guy Di Lella Chief Human Resources Officer Clifford H.R. DuPree Senior Vice President, General Counsel (Acting) and Corporate Secretary Adam...

  • Page 106
    For more information on CA Technologies, please visit ca.com C right © 2014 CA, Inc. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. ¦p§