Exhibit 99.2
CA Technologies | |||||||||||||||
Supplemental Financial Information | |||||||||||||||
Selected GAAP Measures and Non-GAAP Measures | |||||||||||||||
Excluding the Financial Results of the CA arcserve Business | |||||||||||||||
(unaudited) | |||||||||||||||
(in millions, except per share amounts and where otherwise noted) | |||||||||||||||
Reconciliation of GAAP Results to Non-GAAP Results | |||||||||||||||
Q1-14 | Q2-14 | Q3-14 | Q4-14 | FY 2014 | |||||||||||
Total Revenue | $ | 1,095 | $ | 1,105 | $ | 1,128 | $ | 1,084 | $ | 4,412 | |||||
GAAP Net Income | $ | 335 | $ | 240 | $ | 232 | $ | 107 | $ | 914 | |||||
GAAP Income From Discontinued Operations, Net of Income Taxes | (5 | ) | (9 | ) | (7 | ) | (6 | ) | (27 | ) | |||||
GAAP Income From Continuing Operations | $ | 330 | $ | 231 | $ | 225 | $ | 101 | $ | 887 | |||||
GAAP Income Tax (Benefit) Expense | (122 | ) | 101 | 81 | 69 | 129 | |||||||||
Interest Expense, Net | 11 | 13 | 15 | 15 | 54 | ||||||||||
GAAP Income From Continuing Operations Before Interest and Income Taxes | $ | 219 | $ | 345 | $ | 321 | $ | 185 | $ | 1,070 | |||||
GAAP Operating Margin (% of revenue) | 20% | 31% | 28% | 17% | 24% | ||||||||||
Non-GAAP Operating Adjustments: | |||||||||||||||
Purchased Software Amortization | 28 | 31 | 28 | 29 | 116 | ||||||||||
Other Intangibles Amortization | 14 | 15 | 19 | 12 | 60 | ||||||||||
Software Development Costs Capitalized | (23 | ) | (8 | ) | (1 | ) | (1 | ) | (33 | ) | |||||
Internally Developed Software Products Amortization | 38 | 38 | 41 | 38 | 155 | ||||||||||
Share-based Compensation | 20 | 20 | 23 | 18 | 81 | ||||||||||
Other (Gains) Expenses, Net (1) | 115 | 7 | 9 | 39 | 170 | ||||||||||
Total Non-GAAP Operating Adjustment | $ | 192 | $ | 103 | $ | 119 | $ | 135 | $ | 549 | |||||
Non-GAAP Income From Continuing Operations Before Interest and Income Taxes | $ | 411 | $ | 448 | $ | 440 | $ | 320 | $ | 1,619 | |||||
Non-GAAP Operating Margin (% of revenue) | 38% | 41% | 39% | 30% | 37% | ||||||||||
Interest Expense, Net | 11 | 13 | 15 | 15 | 54 | ||||||||||
Non-GAAP Income From Continuing Operations Before Income Taxes | $ | 400 | $ | 435 | $ | 425 | $ | 305 | $ | 1,565 | |||||
GAAP Income Tax (Benefit) Expense | (122 | ) | 101 | 81 | 69 | 129 | |||||||||
GAAP Effective Tax Rate (2) | -58.7% | 30.4% | 26.5% | 40.6% | 12.7% | ||||||||||
Non-GAAP Adjustment to Income Tax Expense (3) | 177 | (41 | ) | (22 | ) | (44 | ) | 70 | |||||||
Non-GAAP Income Tax Expense | 55 | 60 | 59 | 25 | 199 | ||||||||||
Non-GAAP Effective Tax Rate (2) | 13.8% | 13.8% | 13.9% | 8.2% | 12.7% | ||||||||||
Non-GAAP Income From Continuing Operations | $ | 345 | $ | 375 | $ | 366 | $ | 280 | $ | 1,366 | |||||
GAAP Diluted EPS From Continuing Operations | $ | 0.72 | $ | 0.51 | $ | 0.50 | $ | 0.23 | $ | 1.96 | |||||
Non-GAAP Diluted EPS From Continuing Operations | $ | 0.76 | $ | 0.83 | $ | 0.81 | $ | 0.62 | $ | 3.02 | |||||
Diluted Weighted Average Shares Used in Computation | 451 | 450 | 448 | 444 | 448 | ||||||||||
Reconciliation of GAAP to Non-GAAP Operating Expenses | |||||||||||||||
Q1-14 | Q2-14 | Q3-14 | Q4-14 | FY 2014 | |||||||||||
Costs of Licensing and Maintenance | 68 | 71 | 77 | 80 | 296 | ||||||||||
Cost of Professional Services | 88 | 88 | 88 | 89 | 353 | ||||||||||
Amortization of Capitalized Software Costs | 66 | 69 | 69 | 67 | 271 | ||||||||||
Selling and Marketing | 269 | 248 | 281 | 306 | 1,104 | ||||||||||
General and Administrative | 91 | 91 | 95 | 118 | 395 | ||||||||||
Product Development and Enhancements | 132 | 142 | 144 | 156 | 574 | ||||||||||
Depreciation and Amortization of Other Intangible Assets | 36 | 37 | 40 | 31 | 144 | ||||||||||
Other (Gains) Expenses, Net (4) | 126 | 14 | 13 | 52 | 205 | ||||||||||
Total GAAP Expenses Before Interest and Income Taxes | $ | 876 | $ | 760 | $ | 807 | $ | 899 | $ | 3,342 | |||||
Non-GAAP Operating Adjustments: | |||||||||||||||
Purchased Software Amortization | 28 | 31 | 28 | 29 | 116 | ||||||||||
Other Intangibles Amortization | 14 | 15 | 19 | 12 | 60 | ||||||||||
Software Development Costs Capitalized | (23 | ) | (8 | ) | (1 | ) | (1 | ) | (33 | ) | |||||
Internally Developed Software Products Amortization | 38 | 38 | 41 | 38 | 155 | ||||||||||
Share-based Compensation | 20 | 20 | 23 | 18 | 81 | ||||||||||
Other (Gains) Expenses, Net (1) | 115 | 7 | 9 | 39 | 170 | ||||||||||
Total Non-GAAP Operating Adjustments | $ | 192 | $ | 103 | $ | 119 | $ | 135 | $ | 549 | |||||
Total Non-GAAP Operating Expense | $ | 684 | $ | 657 | $ | 688 | $ | 764 | $ | 2,793 | |||||
Reconciliation of GAAP to Non-GAAP Earnings Per Share | |||||||||||||||
Q1-14 | Q2-14 | Q3-14 | Q4-14 | FY 2014 | |||||||||||
GAAP Diluted EPS From Continuing Operations | $ | 0.72 | $ | 0.51 | $ | 0.50 | $ | 0.23 | $ | 1.96 | |||||
Non-GAAP Adjustments, Net of Taxes: | |||||||||||||||
Purchased Software Amortization | 0.10 | 0.05 | 0.04 | 0.04 | 0.22 | ||||||||||
Other Intangibles Amortization | 0.05 | 0.02 | 0.03 | 0.01 | 0.11 | ||||||||||
Software Development Costs Capitalized | (0.08 | ) | (0.01 | ) | — | — | (0.06 | ) | |||||||
Internally Developed Software Products Amortization | 0.13 | 0.06 | 0.06 | 0.05 | 0.30 | ||||||||||
Share-based Compensation | 0.07 | 0.03 | 0.04 | 0.02 | 0.16 | ||||||||||
Other (Gains) Expenses, Net (1) | 0.40 | 0.01 | 0.02 | 0.05 | 0.33 | ||||||||||
Non-GAAP Effective Tax Rate Adjustments (5) | (0.63 | ) | 0.16 | 0.12 | 0.22 | — | |||||||||
Non-GAAP Diluted EPS From Continuing Operations | $ | 0.76 | $ | 0.83 | $ | 0.81 | $ | 0.62 | $ | 3.02 | |||||
GAAP Cash Flow From Continuing Operations | |||||||||||||||
Q1-14 | Q2-14 | Q3-14 | Q4-14 | FY 2014 | |||||||||||
GAAP Cash Flow From Continuing Operations | $ | 3 | $ | 73 | $ | 419 | $ | 478 | $ | 973 | |||||
Footnotes: | |||||||||||||||
(1) Non-GAAP adjustment consists of charges relating to the FY2014 Board approved re-balancing initiative (the Fiscal 2014 Plan) and certain other gains and losses, which include gains and losses since inception of hedges that mature within the quarter, but exclude gains and losses of hedges that do not mature within the quarter. | |||||||||||||||
(2) The effective tax rate on GAAP and non-GAAP income from continuing operations is the Company's provision for income taxes expressed as a percentage of GAAP and non-GAAP income from continuing operations before income taxes, respectively. The non-GAAP effective tax rate is equal to the full year GAAP effective tax rate. On an interim basis, the effective tax rates are determined based on an estimated effective full year tax rate after the adjustments for the impacts of certain discrete items (such as changes in tax rates, reconciliations of tax returns to tax provisions and resolutions of tax contingencies). | |||||||||||||||
(3) The full year non-GAAP income tax expense is different from GAAP income tax expense because of the difference in non-GAAP income from continuing operations before income taxes. On an interim basis, this difference would also include a difference in the impact of discrete and permanent items where for GAAP purposes the effect is recorded in the period such items arise, but for non-GAAP such items are recorded pro rata to the fiscal year's remaining reporting periods. | |||||||||||||||
(4) Other (gains) expenses, net includes approximately $171 million of charges relating to the FY2014 Board approved re-balancing initiative (the Fiscal 2014 Plan) for the twelve month period ending March 31, 2014. | |||||||||||||||
(5) The non-GAAP effective tax rate is equal to the full year GAAP effective tax rate, therefore no adjustment is required on an annual basis. On an interim basis, the difference in non-GAAP income tax expense and GAAP income tax expense relates to the difference in non-GAAP income from continuing operations before income taxes, and includes a difference in the impact of discrete and permanent items where for GAAP purposes the effect is recorded in the period such items arise but for non-GAAP purposes such items are recorded pro rata to the fiscal year's remaining reporting periods. |