Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Mar. 31, 2015 | 1-May-15 | Sep. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CA, INC. | ||
Entity Central Index Key | 356028 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Mar-15 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -28 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $8.80 | ||
Entity Common Stock, Shares Outstanding | 439,677,517 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $2,804 | $3,252 |
Trade accounts receivable, net | 652 | 800 |
Deferred income taxes | 318 | 315 |
Other current assets | 213 | 192 |
Total current assets | 3,987 | 4,559 |
Property and equipment, net of accumulated depreciation of $812 and $828, respectively | 252 | 295 |
Goodwill | 5,806 | 5,922 |
Capitalized software and other intangible assets, net | 731 | 1,063 |
Deferred income taxes | 92 | 59 |
Other noncurrent assets, net | 111 | 118 |
Total assets | 10,979 | 12,016 |
Current liabilities: | ||
Current portion of long-term debt | 10 | 514 |
Accounts payable | 105 | 129 |
Accrued salaries, wages and commissions | 219 | 275 |
Accrued expenses and other current liabilities | 428 | 510 |
Deferred revenue (billed or collected) | 2,114 | 2,419 |
Taxes payable, other than income taxes payable | 55 | 66 |
Deferred income taxes | 7 | 9 |
Total current liabilities | 2,938 | 3,922 |
Long-term debt, net of current portion | 1,253 | 1,252 |
Federal, state and foreign income taxes payable | 150 | 182 |
Deferred income taxes | 45 | 67 |
Deferred revenue (billed or collected) | 863 | 872 |
Other noncurrent liabilities | 105 | 151 |
Total liabilities | 5,354 | 6,446 |
Stockholders' equity: | ||
Preferred stock, no par value, 10,000,000 shares authorized; No shares issued and outstanding | 0 | 0 |
Common stock, $0.10 par value, 1,100,000,000 shares authorized; 589,695,081 and 589,695,081 shares issued; 435,502,730 and 438,740,478 shares outstanding, respectively | 59 | 59 |
Additional paid-in capital | 3,631 | 3,610 |
Retained earnings | 6,221 | 5,818 |
Accumulated other comprehensive loss | -418 | -171 |
Treasury stock, at cost, 154,192,351 and 150,954,603 shares, respectively | -3,868 | -3,746 |
Total stockholders' equity | 5,625 | 5,570 |
Total liabilities and stockholders' equity | $10,979 | $12,016 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $812 | $828 |
Preferred stock, no par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 |
Common stock, shares issued | 589,695,081 | 589,695,081 |
Common stock, shares outstanding | 435,502,730 | 438,740,478 |
Treasury stock, shares | 154,192,351 | 150,954,603 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | |||
Subscription and maintenance | $3,560 | $3,683 | $3,764 |
Professional services | 351 | 379 | 382 |
Software fees and other | 351 | 350 | 358 |
Total revenue | 4,262 | 4,412 | 4,504 |
Expenses: | |||
Costs of licensing and maintenance | 297 | 296 | 275 |
Cost of professional services | 338 | 353 | 354 |
Amortization of capitalized software costs | 273 | 271 | 305 |
Selling and marketing | 1,060 | 1,104 | 1,225 |
General and administrative | 377 | 395 | 405 |
Product development and enhancements | 603 | 574 | 483 |
Depreciation and amortization of other intangible assets | 129 | 144 | 158 |
Other expenses (gains), net | 23 | 205 | -5 |
Total expenses before interest and income taxes | 3,100 | 3,342 | 3,200 |
Income from continuing operations before interest and income taxes | 1,162 | 1,070 | 1,304 |
Interest expense, net | 47 | 54 | 44 |
Income from continuing operations before income taxes | 1,115 | 1,016 | 1,260 |
Income tax expense | 305 | 129 | 339 |
Income from continuing operations | 810 | 887 | 921 |
Income from discontinued operations, net of income taxes | 36 | 27 | 34 |
Net income | $846 | $914 | $955 |
Basic income per common share: | |||
Income from continuing operations (in dollars per share) | $1.83 | $1.97 | $2 |
Income from discontinued operations (in dollars per share) | $0.08 | $0.06 | $0.07 |
Net income (in dollars per share) | $1.91 | $2.03 | $2.07 |
Basic weighted average shares used in computation | 439 | 446 | 456 |
Diluted income per common share: | |||
Income from continuing operations (in dollars per share) | $1.82 | $1.96 | $1.99 |
Income from discontinued operations (in dollars per share) | $0.08 | $0.06 | $0.07 |
Net income (in dollars per share) | $1.90 | $2.02 | $2.06 |
Diluted weighted average shares used in computation | 441 | 448 | 457 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $846 | $914 | $955 |
Other comprehensive loss: | |||
Foreign currency translation adjustments | -247 | -16 | -47 |
Total other comprehensive loss | -247 | -16 | -47 |
Comprehensive income | $599 | $898 | $908 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
In Millions | ||||||
Beginning balance at Mar. 31, 2012 | $5,397 | $59 | $3,491 | $4,865 | ($108) | ($2,910) |
Net income | 955 | 955 | ||||
Other comprehensive loss | -47 | -47 | ||||
Comprehensive income | 908 | |||||
Share-based compensation | 78 | 78 | ||||
Dividends declared | -463 | -463 | ||||
Release of restricted stock, exercise of common stock options, ESPP and other items | 25 | -101 | 126 | |||
Accelerated share repurchase | 0 | 125 | -125 | |||
Treasury stock purchased | -495 | -495 | ||||
Ending balance at Mar. 31, 2013 | 5,450 | 59 | 3,593 | 5,357 | -155 | -3,404 |
Net income | 914 | 914 | ||||
Other comprehensive loss | -16 | -16 | ||||
Comprehensive income | 898 | |||||
Share-based compensation | 82 | 82 | ||||
Dividends declared | -453 | -453 | ||||
Release of restricted stock, exercise of common stock options, ESPP and other items | 98 | -65 | 163 | |||
Treasury stock purchased | -505 | -505 | ||||
Ending balance at Mar. 31, 2014 | 5,570 | 59 | 3,610 | 5,818 | -171 | -3,746 |
Net income | 846 | 846 | ||||
Other comprehensive loss | -247 | -247 | ||||
Comprehensive income | 599 | |||||
Share-based compensation | 87 | 87 | ||||
Dividends declared | -444 | -444 | ||||
Release of restricted stock, exercise of common stock options, ESPP and other items | 28 | -66 | 1 | 93 | ||
Treasury stock purchased | -215 | -215 | ||||
Ending balance at Mar. 31, 2015 | $5,625 | $59 | $3,631 | $6,221 | ($418) | ($3,868) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities from continuing operations: | |||
Net income | $846 | $914 | $955 |
Income from discontinued operations | -36 | -27 | -34 |
Income from continuing operations | 810 | 887 | 921 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 402 | 415 | 463 |
Deferred income taxes | -72 | -69 | 13 |
Provision for bad debts | 3 | 7 | 7 |
Share-based compensation expense | 87 | 81 | 77 |
Asset impairments and other non-cash items | 5 | 10 | 12 |
Foreign currency transaction (gains) losses | -2 | 10 | 16 |
Changes in other operating assets and liabilities, net of effect of acquisitions: | |||
Decrease in trade accounts receivable | 79 | 42 | 35 |
Decrease in deferred revenue | -138 | -103 | -128 |
Decrease in taxes payable, net | -98 | -331 | -56 |
(Decrease) increase in accounts payable, accrued expenses and other | -9 | 82 | 6 |
Decrease in accrued salaries, wages and commissions | -40 | -28 | -42 |
Changes in other operating assets and liabilities | 3 | -30 | 35 |
Net cash provided by operating activities - continuing operations | 1,030 | 973 | 1,359 |
Investing activities from continuing operations: | |||
Acquisitions of businesses, net of cash acquired, and purchased software | -38 | -133 | -76 |
Purchases of property and equipment | -53 | -65 | -50 |
Proceeds from sale of assets | 0 | 12 | 0 |
Capitalized software development costs | 0 | -40 | -156 |
Purchases of investments | 0 | -9 | -346 |
Maturities of investments | 0 | 191 | 163 |
Decrease in restricted cash | 0 | 50 | 0 |
Other investing activities | 0 | -1 | 1 |
Net cash (used in) provided by investing activities - continuing operations | -91 | 5 | -464 |
Financing activities from continuing operations: | |||
Dividends paid | -444 | -453 | -463 |
Purchases of common stock | -215 | -507 | -493 |
Notional pooling borrowings | 5,371 | 3,702 | 1,143 |
Notional pooling repayments | -5,207 | -3,734 | -1,139 |
Debt borrowings | 0 | 498 | 0 |
Debt repayments | -508 | -15 | -13 |
Debt issuance costs | 0 | -5 | 0 |
Exercise of common stock options and other | 26 | 93 | 27 |
Net cash used in financing activities - continuing operations | -977 | -421 | -938 |
Effect of exchange rate changes on cash | -532 | 62 | -83 |
Net change in cash and cash equivalents - continuing operations | -570 | 619 | -126 |
Cash (used in) provided by operating activities - discontinued operations | -48 | 40 | 49 |
Cash provided by (used in) investing activities - discontinued operations | 170 | 0 | -9 |
Net effect of discontinued operations on cash and cash equivalents | 122 | 40 | 40 |
(Decrease) increase in cash and cash equivalents | -448 | 659 | -86 |
Cash and cash equivalents at beginning of period | 3,252 | 2,593 | 2,679 |
Cash and cash equivalents at end of period | $2,804 | $3,252 | $2,593 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies | Note 1 — Significant Accounting Policies | |
(a) Description of Business: CA, Inc. and subsidiaries (the Company) develops, markets, delivers and licenses software products and services. | ||
(b) Presentation of Financial Statements: The accompanying audited Consolidated Financial Statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 205. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, these estimates may ultimately differ from actual results. Significant items subject to such estimates and assumptions include: (i) the useful lives and expected future cash flows of long-lived assets, including capitalized software costs and other intangibles, (ii) allowances for doubtful accounts, (iii) the valuation of derivatives, deferred tax assets and assets acquired in business combinations, (iv) share-based compensation, (v) reserves for employee severance benefit obligations, (vi) income tax uncertainties, (vii) legal contingencies and (viii) the fair value of the Company’s reporting units. | ||
(c) Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its majority-owned and controlled subsidiaries. Investments in affiliates owned 50% or less are accounted for by the equity method. Intercompany balances and transactions have been eliminated in consolidation. Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period. | ||
(d) Divestitures: In the second quarter of fiscal year 2015, the Company sold its CA arcserve data protection solution assets (arcserve). In the fourth quarter of fiscal year 2014, the Company identified its CA ERwin Data Modeling solution assets (ERwin) as available for sale. The results of operations associated with these businesses have been presented as discontinued operations in the accompanying Consolidated Statements of Operations and Consolidated Statements of Cash Flows for fiscal years 2015, 2014 and 2013. The effects of the discontinued operations were immaterial to the Company’s Consolidated Balance Sheets at March 31, 2015 and 2014. See Note 3, “Divestitures,” for additional information. | ||
(e) Foreign Currencies: In general, the functional currency of the Company’s foreign subsidiaries is the local country's currency. Assets and liabilities of the Company’s foreign subsidiaries are translated using the exchange rates in effect at the balance sheet date. Results of operations are translated using average exchange rates. Adjustments arising from the translation of the foreign currency financial statements of the Company’s subsidiaries into U.S. dollars are reported as currency translation adjustments in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. | ||
Foreign currency transaction (gains) losses were approximately $(14) million, $17 million and $12 million in fiscal years 2015, 2014 and 2013, respectively, and were included in “Other expenses (gains), net” in the Consolidated Statements of Operations in the period in which they occurred. For fiscal years 2015 and 2014, other expenses (gains), net included foreign currency transaction losses of approximately $14 million and $6 million, respectively, relating to the remeasurement of monetary assets and liabilities of the Company's Venezuelan subsidiary. These losses arose from the Company's use of the foreign currency exchange system in effect for Venezuela at March 31, 2015 and 2014, respectively. | ||
(f) Revenue Recognition: The Company begins to recognize revenue from software licensing and maintenance when all of the following criteria are met: (1) the Company has evidence of an arrangement with a customer; (2) the Company delivers the specified products; (3) license agreement terms are fixed or determinable and free of contingencies or uncertainties that may alter the agreement such that it may not be complete and final; and (4) collection is probable. Revenue is recorded net of applicable sales taxes. | ||
The Company’s software licenses generally do not include acceptance provisions. An acceptance provision allows a customer to test the software for a defined period of time before committing to license the software. If a license agreement includes an acceptance provision, the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance or when the acceptance right lapses. The Company’s standard licensing agreements include a product warranty provision for all products. The likelihood that the Company will be required to make refunds to customers under such provisions is considered remote. | ||
Subscription and Maintenance Revenue: Software licenses that include the right to receive unspecified future software products are considered subscription arrangements under GAAP and are recognized ratably over the term of the license agreement. Subscription and maintenance revenue is the amount of revenue recognized ratably during the reporting period from either: (i) software usage fees and product sales that include subscription 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 with elements (i.e., maintenance or professional services) for which vendor specific objective evidence (VSOE) has not been established. Revenue for these arrangements is recognized ratably over the term of the subscription or maintenance term. | ||
Professional Services: Revenue from professional services arrangements is generally recognized as the services are performed. Revenue and costs from committed professional services that are sold as part of a subscription license agreement are deferred and recognized on a ratable basis over the term of the related software license. VSOE of professional services is established based on hourly rates when sold on a stand-alone basis. If it is not probable that a project will be completed or the payment will be received, revenue recognition is deferred until the uncertainty is removed. | ||
Software Fees and Other: Software fees and other revenue consists primarily of revenue from the sale of perpetual software licenses that do not include the right to unspecified software products (i.e., a subscription agreement) sold on a stand-alone basis or in a bundled arrangement where VSOE exists for all undelivered elements, and revenue from Software-as-a-Service. For bundled arrangements that include either maintenance or both maintenance and professional services, the Company uses the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. The Company determines VSOE of maintenance, depending on the product, from either contractually stated renewal rates or the bell-shaped curve method. | ||
In the event that agreements with the Company’s customers are executed in close proximity of the other software license agreements with the same customer, the Company evaluates whether the separate arrangements are linked, and, if so, the agreements are considered a single multi-element arrangement for which revenue is recognized ratably as subscription and maintenance revenue or, in the case of a professional services arrangement that is linked to a subscription-based software license, as professional services revenue, in the Consolidated Statements of Operations. | ||
(g) Sales Commissions: Sales commissions are recognized in the period the commissions are earned by employees, which is typically upon signing of the contract. Under the Company’s sales commissions policy, the amount of sales commissions expense attributable to the license agreements signed in the period is recognized fully, but the revenue from the license agreements may be recognized ratably over the subscription and maintenance term. | ||
(h) Accounting for Share-Based Compensation: Share-based awards exchanged for employee services are accounted for under the fair value method. Accordingly, share-based compensation cost is measured at the grant date based on the fair value of the award. The expense for awards expected to vest is recognized over the employee’s requisite service period (generally the vesting period of the award). Awards expected to vest are estimated based on a combination of historical experience and future expectations. | ||
The Company has elected to treat awards with only service conditions and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting period, so long as the compensation cost recognized at any date at least equals the portion of the grant date fair value of the award that is vested at that date. | ||
The Company uses the Black-Scholes option-pricing model to compute the estimated fair value of share-based awards in the form of options. The Black-Scholes model includes assumptions regarding dividend yields, expected volatility, expected term of the option and risk-free interest rates. | ||
In addition to stock options, restricted share awards (RSAs) and restricted share units (RSUs) with time-based vesting, the Company issues performance share units (PSUs). Compensation costs for the PSUs are amortized over the requisite service periods based on the expected level of achievement of the performance targets. At the conclusion of the performance periods, the applicable number of shares of RSAs, RSUs or unrestricted shares granted may vary based on the level of achievement of the performance targets. Additionally, the grants are subject to the approval of the Company’s Compensation and Human Resources Committee of the Board of Directors (the Compensation Committee), which has discretion to reduce any award for any reason. The value of the PSU awards is remeasured each reporting period until the Compensation Committee approves attainment of the specified performance targets, at which time a grant date is deemed to have been achieved for accounting purposes, the value of the award is fixed and any remaining unrecognized compensation expense is recognized over the remaining time-based vesting period. See Note 14, “Stock Plans,” for additional information. | ||
(i) Net Income Per Common Share: Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of net income per share under the two-class method. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed income is then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic net income per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted net income per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding at the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. See Note 13, “Income from Continuing Operations Per Common Share,” for additional information. | ||
(j) Concentration of Credit Risk: Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, investments, derivatives and accounts receivable. The Company historically has not experienced any material losses in its cash and cash equivalent or investment portfolios. | ||
Amounts included in accounts receivable expected to be collected from customers, as disclosed in Note 5, “Trade Accounts Receivable,” have limited exposure to concentration of credit risk due to the diverse customer base and geographic areas covered by operations. | ||
(k) Cash and Cash Equivalents: All financial instruments purchased with an original maturity of three months or less at the time of purchase are considered cash equivalents. The Company’s cash and cash equivalents are held by its subsidiaries throughout the world, frequently in each subsidiary’s respective functional currency which may not be the U.S. dollar. Approximately 69% and 61% of cash and cash equivalents were maintained outside the United States at March 31, 2015 and 2014, respectively. | ||
Total interest income, which primarily relates to the Company’s cash and cash equivalent balances and investments, for fiscal years 2015, 2014 and 2013 was approximately $30 million, $21 million and $20 million, respectively, and is included in “Interest expense, net” in the Consolidated Statements of Operations. | ||
(l) Fair Value Measurements: Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. The Company is required to classify certain assets and liabilities based on the following fair value hierarchy: | ||
• | Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; | |
• | Level 2: Quoted prices for identical assets and liabilities in markets that are not active, or quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and | |
• | Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | |
See Note 10, “Fair Value Measurements,” for additional information. | ||
(m) Long-Lived Assets: | ||
Impairment of Long-Lived Assets, Excluding Goodwill and Other Intangibles: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models or, when available, quoted market values and third-party appraisals. | ||
Property and Equipment: Property and equipment are stated at cost. Depreciation and amortization expense is calculated based on the estimated useful lives of the assets, and is recognized by using the straight-line method. Building and improvements are generally estimated to have 5 to 39 year lives, and the remaining property and equipment are generally estimated to have 3 to 7 year lives. | ||
Internally Developed Software Products: Internally developed software products, which are included in "Capitalized software and other intangible assets, net" in the Consolidated Balance Sheets, consist of capitalized costs associated with the development of computer software to be sold, leased or otherwise marketed. Software development costs associated with new products and significant enhancements to existing software products are expensed as incurred until technological feasibility, as defined in FASB ASC Topic 985-20, has been established. Costs incurred thereafter are capitalized until the product is made generally available. The stage during the Company's development process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. | ||
Annual amortization of internally developed software products is the greater of the amount computed using the ratio that current gross 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 to customers. The Company generally recognizes amortization expense for capitalized software costs using the straight-line method, and such amortization is included in “Amortization of capitalized software costs” in the Consolidated Statements of Operations. Internally developed software products are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||
Purchased Software Products: Purchased software products, which is included in "Capitalized software and other intangible assets, net" in the Consolidated Balance Sheets, consist primarily of the cost of software technology acquired in business combinations. The cost of such products is equal to the fair value of the acquired software technology at the acquisition date. Annual amortization of purchased software products is the greater of the amount computed using the ratio that current gross 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. The Company generally amortizes capitalized software costs using the straight-line method over their remaining economic lives, estimated to be between 2 and 10 years from the date of acquisition, and such amortization is included in “Amortization of capitalized software costs” in the Consolidated Statements of Operations. Purchased software products are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||
Other Intangible Assets: Other intangible assets, which is included in "Capitalized software and other intangible assets, net" in the Consolidated Balance Sheets, consist of customer relationships and trademarks/trade names. The Company generally amortizes all other intangible assets using the straight-line method over their remaining economic lives, estimated to be between 2 and 12 years from the date of acquisition, and such amortization is included in "Depreciation and amortization of other intangible assets" in the Consolidated Statements of Operations. Other intangible assets subject to amortization are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||
Goodwill: Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the purchase method of accounting. Goodwill is not amortized, but instead goodwill is required to be tested for impairment annually and under certain circumstances. The Company reviews goodwill for impairment on an annual basis on the first day of the fourth quarter of each fiscal year, and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable, at the reporting unit level. The Company's reporting units are the same as its operating segments. | ||
When evaluating goodwill for impairment, based upon the Company's annual test or due to changes in circumstances described above, the Company first can opt to perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) less than the reporting unit's carrying amount, including goodwill, or it can directly perform the two-step impairment test. This qualitative assessment includes, among other things, consideration of: (i) identifying inputs and assumptions that most affect fair value; (ii) identifying relevant events and circumstances that may have an impact on those inputs and assumptions; (iii) weighing the events and circumstances; and (iv) concluding on the totality of events and circumstances. If this assessment indicates that the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and the Company is not required to perform further testing. However, if the fair value of a reporting unit is more likely than not to be less than its carrying amount, the two-step impairment test will be performed. | ||
When performing the two-step impairment test, the Company first determines the estimated fair value of its reporting units based on use of the income and market approaches. Under the income approach, the Company calculates the estimated fair value of a reporting unit based on the present value of estimated future cash flows. If the carrying value of the reporting unit exceeds the estimated fair value, the Company then calculates the implied fair value of goodwill for the reporting unit and compares it to the carrying amount of goodwill for the reporting unit. If the carrying amount of goodwill exceeds the implied fair value, an impairment charge is recorded to its statement of operations to reduce the carrying value to implied value. | ||
Significant judgments and estimates are required in determining the reporting units and assessing the fair value of the reporting units. These estimates and assumptions are complex and subject to a significant degree of judgment with respect to certain factors including, but not limited to, revenue growth rates and operating profit margins that are used to project future cash flows, discount rates, future economic and market conditions and determination of appropriate market comparables. The Company makes certain judgments and assumptions in allocating shared costs among reporting units. The Company bases its fair value estimates on assumptions that are consistent with information used by the business for planning purposes and that it believes to be reasonable; however, actual future results may differ from those estimates. Changes in judgments on any of these factors could materially affect the value of the reporting unit. | ||
See Note 6, “Long-Lived Assets,” for additional information. | ||
(n) Restricted Cash: The total amount of restricted cash at March 31, 2015 and 2014 was approximately $1 million and $2 million, respectively, and is included in “Other noncurrent assets, net” in the Consolidated Balance Sheets. During the fourth quarter of fiscal year 2014, the Company was granted approval to reduce the minimum restricted cash balance of its insurance subsidiary from $50 million to $250,000. As result, the Company reclassified approximately $50 million from “Other noncurrent assets, net” to “Cash and cash equivalents” in the Consolidated Balance Sheet at March 31, 2014. The reduction in the restricted cash balance was a source of investing cash inflows in the Consolidated Statement of Cash Flows for the year ended March 31, 2014. In addition to this restricted cash balance, the Company has other restricted cash balances, including cash collateral for letters of credit. | ||
(o) Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date. | ||
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to uncertain tax positions in income tax expense. See Note 15, “Income Taxes,” for additional information. | ||
(p) Deferred Revenue (Billed or Collected): The Company accounts for unearned revenue on billed amounts due from customers on a gross basis. Unearned revenue on billed installments (collected or uncollected) is reported as deferred revenue in the liability section of the Company's Consolidated Balance Sheets. | ||
Deferred revenue (billed or collected) excludes unbilled contractual commitments executed under license and maintenance agreements that will be billed in future periods. See Note 7, “Deferred Revenue,” for additional information. | ||
(q) Advertising: Advertising costs are expensed as incurred. Advertising expense was approximately $39 million, $38 million and $10 million for fiscal years 2015, 2014 and 2013, respectively. | ||
(r) Litigation: The Company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and proceedings are reviewed at least quarterly and provisions are taken or adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. See Note 11, “Commitments and Contingencies,” for additional information. | ||
(s) Other Matters: In fiscal year 2013, the Company closed a transaction that assigned the rights to certain of the Company’s intellectual property assets to a large technology company for $35 million. The entire contract amount is included in the “Other expenses (gains), net” line item of the Company’s Consolidated Statement of Operations for the year ended March 31, 2013. | ||
(t) New Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In April 2015, the FASB proposed a one-year deferral of the effective date of the new revenue recognition standard. If finalized as proposed, the new guidance will be effective for the Company's first quarter of fiscal year 2019 and early application would be permitted. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. ASU 2014-09 is expected to have a significant impact on the Company’s revenue recognition policies and disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | ||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (Topic 835), which changes the required presentation of debt issuance costs from an asset on the balance sheet to a deduction from the related debt liability. This guidance will be effective for the Company in its first quarter of fiscal year 2017. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Combinations [Abstract] | |||||||
Acquisitions | Note 2 — Acquisitions | ||||||
During fiscal year 2014, the Company acquired 100% of the voting equity interest in Layer 7 Technologies (Layer 7), a provider of application programming interface (API) management and security software. The acquisition of Layer 7 will enable the Company 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 acquisition of Layer 7 on the Company’s revenues and results of operations during fiscal year 2013 were considered immaterial. The purchase price allocation as of March 31, 2014 was as follows: | |||||||
(dollars in millions) | Layer 7 | Estimated | |||||
Useful Life | |||||||
Finite-lived intangible assets (1) | $ | 26 | 3 years | ||||
Purchased software | 87 | 5 years | |||||
Goodwill | 55 | Indefinite | |||||
Deferred tax liabilities | (13 | ) | — | ||||
Other assets net of other liabilities assumed (2) | — | — | |||||
Purchase price | $ | 155 | |||||
-1 | Includes customer relationships and trade names. | ||||||
-2 | Includes approximately $9 million of cash acquired. | ||||||
Transaction costs for the acquisition were immaterial. The excess purchase price over the estimated value of the net tangible and identifiable intangible assets was recorded to goodwill. The allocation of a significant portion of the purchase price to goodwill was predominantly due to synergies the Company expects from marketing and integration of the Layer 7 products with other products of the Company and intangible assets that are not separable, such as assembled workforce and going concern. The goodwill relating to the Company’s acquisition of Layer 7 was not deductible for tax purposes and was allocated to the Enterprise Solutions segment. | |||||||
The Company had approximately $27 million and $30 million of accrued acquisition-related costs at March 31, 2015 and 2014, respectively, related to purchase price amounts withheld to support indemnification obligations by the sellers. |
Divestitures
Divestitures | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Divestitures | Note 3 — Divestitures | |||||||||||
In the second quarter of fiscal year 2015, the Company sold arcserve for approximately $170 million and recognized a gain on disposal of approximately $20 million, including tax expense of approximately $77 million. The effective tax rate on the disposal was unfavorably affected by non-deductible goodwill of approximately $109 million. In the fourth quarter of fiscal year 2014, the Company identified ERwin as available for sale. The divestiture of arcserve and the planned divestiture of ERwin result from an effort to rationalize the Company’s product portfolio within the Enterprise Solutions segment. | ||||||||||||
The income from discontinued operations relating to both ERwin and the sale of arcserve for fiscal years 2015, 2014 and 2013 consisted of the following: | ||||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Subscription and maintenance | $ | 43 | $ | 88 | $ | 94 | ||||||
Software fees and other | 19 | 47 | 45 | |||||||||
Total revenue | $ | 62 | $ | 135 | $ | 139 | ||||||
Income from operations of discontinued components, net of tax expense of $10 million, $19 million and $24 million, respectively | $ | 16 | $ | 27 | $ | 34 | ||||||
Gain on disposal of discontinued component, net of tax | 20 | — | — | |||||||||
Income from discontinued operations, net of tax | $ | 36 | $ | 27 | $ | 34 | ||||||
Severance_and_Exit_Costs
Severance and Exit Costs | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Severance and Exit Costs | Note 4 — Severance and Exit Costs | |||||||||||||||||||||||
Fiscal Year 2015 Severance Actions: During the fourth quarter of fiscal year 2015, the Company committed to and initiated severance actions (Fiscal 2015 Severance Actions) to further improve efficiencies in its operations and align its business with strategic objectives and cost savings initiatives. These actions comprised the termination of approximately 690 employees and resulted in a charge of approximately $40 million (approximately $16 million is included in “Product development and enhancements,” $10 million is included in “Selling and marketing,” $8 million is included in “Cost of professional services,” $5 million is included in “General and administrative” and $1 million is included in “Costs of licensing and maintenance” in the Company's Consolidated Statements of Operations). The Fiscal 2015 Severance Actions are expected to be substantially completed by the first quarter of fiscal year 2016. | ||||||||||||||||||||||||
Fiscal Year 2014 Rebalancing Plan: In fiscal year 2014, the Company's Board of Directors approved and committed to a rebalancing plan (Fiscal 2014 Plan) to better align its business priorities. This included the termination of approximately 1,900 employees and global facilities consolidations. Costs associated with the Fiscal 2014 Plan are presented in “Other expenses (gains), net” in the Company’s Consolidated Statements of Operations. The total amount incurred to date for severance and facility exit costs under the Fiscal 2014 Plan is approximately $166 million and $22 million, respectively. The Company expects total costs of the Fiscal 2014 Plan to be approximately $190 million. Severance and facility consolidation actions under the Fiscal 2014 Plan were substantially completed by the end of fiscal year 2014. | ||||||||||||||||||||||||
Accrued severance and exit costs and changes in the accruals for fiscal years 2015, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
(in millions) | Accrued Balance at March 31, 2014 | Expense | Change in | Payments | Accretion | Accrued Balance at March 31, 2015 | ||||||||||||||||||
Estimate | and Other | |||||||||||||||||||||||
Severance charges | $ | 55 | $ | 60 | $ | (7 | ) | $ | (77 | ) | $ | (3 | ) | $ | 28 | |||||||||
Facility exit charges | 29 | — | — | (9 | ) | 1 | 21 | |||||||||||||||||
Total accrued liabilities | $ | 84 | $ | 49 | ||||||||||||||||||||
(in millions) | Accrued Balance at March 31, 2013 | Expense | Change in | Payments | Accretion | Accrued Balance at March 31, 2014 | ||||||||||||||||||
Estimate | and Other | |||||||||||||||||||||||
Severance charges | $ | 16 | $ | 160 | $ | (12 | ) | $ | (113 | ) | $ | 4 | $ | 55 | ||||||||||
Facility exit charges | 23 | 22 | — | (13 | ) | (3 | ) | 29 | ||||||||||||||||
Total accrued liabilities | $ | 39 | $ | 84 | ||||||||||||||||||||
(in millions) | Accrued Balance at March 31, 2012 | Expense | Change in | Payments | Accretion | Accrued Balance at March 31, 2013 | ||||||||||||||||||
Estimate | and Other | |||||||||||||||||||||||
Severance charges | $ | 13 | $ | 18 | $ | (6 | ) | $ | (9 | ) | $ | — | $ | 16 | ||||||||||
Facility exit charges | 40 | — | — | (13 | ) | (4 | ) | 23 | ||||||||||||||||
Total accrued liabilities | $ | 53 | $ | 39 | ||||||||||||||||||||
The balance at March 31, 2015 includes a severance accrual of approximately $5 million for plans and actions prior to the Fiscal 2015 Severance Actions. | ||||||||||||||||||||||||
The severance liabilities are included in “Accrued salaries, wages and commissions” in the Consolidated Balance Sheets. The facility exit liabilities are included in “Accrued expenses and other current liabilities” and “Other noncurrent liabilities” in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
Accretion and other includes accretion of the Company’s lease obligations related to facility exits as well as changes in the assumptions related to future sublease income. These costs are included in “General and administrative” expense in the Consolidated Statements of Operations. |
Trade_Accounts_Receivable
Trade Accounts Receivable | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Trade Accounts Receivable | Note 5 — Trade Accounts Receivable | |||||||
Trade accounts receivable, net represents amounts due from the Company’s customers and is presented net of allowances. These balances include revenue recognized in advance of customer billings but do not include unbilled contractual commitments executed under license agreements. The components of “Trade accounts receivable, net” were as follows: | ||||||||
At March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Accounts receivable – billed | $ | 591 | $ | 739 | ||||
Accounts receivable – unbilled | 63 | 61 | ||||||
Other receivables | 15 | 19 | ||||||
Less: Allowances | (17 | ) | (19 | ) | ||||
Trade accounts receivable, net | $ | 652 | $ | 800 | ||||
LongLived_Assets
Long-Lived Assets | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Long-Lived Assets [Abstract] | ||||||||||||||||||||
Long-Lived Assets | Note 6 — Long-Lived Assets | |||||||||||||||||||
Property and Equipment: A summary of property and equipment was as follows: | ||||||||||||||||||||
At March 31. | ||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Land and buildings | $ | 190 | $ | 222 | ||||||||||||||||
Equipment, software developed for internal use, furniture and leasehold improvements | 874 | 901 | ||||||||||||||||||
1,064 | 1,123 | |||||||||||||||||||
Accumulated depreciation and amortization | (812 | ) | (828 | ) | ||||||||||||||||
Property and equipment, net | $ | 252 | $ | 295 | ||||||||||||||||
Capitalized Software and Other Intangible Assets: The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2015 were as follows: | ||||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||
(in millions) | Gross | Less: Fully | Remaining | Accumulated | Net | |||||||||||||||
Amortizable | Amortized | Amortizable | Amortization | Assets | ||||||||||||||||
Assets | Assets | Assets | on Remaining | |||||||||||||||||
Amortizable | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Purchased software products | $ | 5,717 | $ | 4,859 | $ | 858 | $ | 413 | $ | 445 | ||||||||||
Internally developed software products | 1,486 | 835 | 651 | 414 | 237 | |||||||||||||||
Other intangible assets | 836 | 556 | 280 | 231 | 49 | |||||||||||||||
Total capitalized software and other intangible assets | $ | 8,039 | $ | 6,250 | $ | 1,789 | $ | 1,058 | $ | 731 | ||||||||||
The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2014 were as follows: | ||||||||||||||||||||
At March 31, 2014 | ||||||||||||||||||||
(in millions) | Gross | Less: Fully | Remaining | Accumulated | Net | |||||||||||||||
Amortizable | Amortized | Amortizable | Amortization | Assets | ||||||||||||||||
Assets | Assets | Assets | on Remaining | |||||||||||||||||
Amortizable | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Purchased software products | $ | 5,706 | $ | 4,849 | $ | 857 | $ | 309 | $ | 548 | ||||||||||
Internally developed software products | 1,561 | 757 | 804 | 397 | 407 | |||||||||||||||
Other intangible assets | 846 | 489 | 357 | 249 | 108 | |||||||||||||||
Total capitalized software and other intangible assets | $ | 8,113 | $ | 6,095 | $ | 2,018 | $ | 955 | $ | 1,063 | ||||||||||
During fiscal year 2015, the Company recorded impairments of approximately $21 million within the Enterprise Solutions segment relating to internally developed software products and purchased software products of approximately $9 million and $12 million, respectively. These impairments were a result of the Company’s continued effort to rationalize its product portfolio. The impairments were included in “Amortization of capitalized software costs” in the Consolidated Statement of Operations for fiscal year 2015. Amortization of capitalized software costs was not included in segment expenses (see Note 17, “Segment and Geographic Information,” for additional information). | ||||||||||||||||||||
During fiscal year 2014, the Company recorded an impairment of approximately $6 million within the Enterprise Solutions segment relating to internally developed software products. No impairments for purchased software products were recorded during fiscal year 2014. | ||||||||||||||||||||
During fiscal year 2013, the Company recorded an impairment of $55 million within the Enterprise Solutions segment relating to purchased software products. This impairment was determined through the use of the discounted cash flow model and reflected lower expectations about future cash flows to be generated from these assets. The impairment was included in “Amortization of capitalized software costs” in the Consolidated Statement of Operations for fiscal year 2013. Amortization of capitalized software costs was not included in segment expenses (see Note 17, “Segment and Geographic Information,” for additional information). During fiscal year 2013, the Company recorded an impairment of approximately $2 million within the Enterprise Solutions segment relating to internally developed software products. | ||||||||||||||||||||
The Company evaluates the useful lives and recoverability of capitalized software and other intangible assets when events or changes in circumstances indicate that an impairment may exist. These evaluations require complex assumptions about key factors such as future customer demand, technology trends and the impact of those factors on the technology the Company acquires and develops for its products. Impairments or revisions to useful lives could result from the use of alternative assumptions that reflect reasonably possible outcomes related to future customer demand or technology trends for assets within the Enterprise Solutions segment. | ||||||||||||||||||||
Depreciation and Amortization Expense: A summary of depreciation and amortization expense was as follows: | ||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||||||||||
Depreciation | $ | 71 | $ | 84 | $ | 104 | ||||||||||||||
Amortization of purchased software products | 124 | 116 | 162 | |||||||||||||||||
Amortization of internally developed software products | 149 | 155 | 143 | |||||||||||||||||
Amortization of other intangible assets | 58 | 60 | 54 | |||||||||||||||||
Total depreciation and amortization expense | $ | 402 | $ | 415 | $ | 463 | ||||||||||||||
Based on the capitalized software and other intangible assets recognized at March 31, 2015, the annual amortization expense over the next five fiscal years is expected to be as follows: | ||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
(in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Purchased software products | $ | 110 | $ | 109 | $ | 106 | $ | 65 | $ | 46 | ||||||||||
Internally developed software products | 109 | 79 | 37 | 10 | 1 | |||||||||||||||
Other intangible assets | 37 | 9 | 2 | 1 | — | |||||||||||||||
Total | $ | 256 | $ | 197 | $ | 145 | $ | 76 | $ | 47 | ||||||||||
Goodwill: The accumulated goodwill impairment losses previously recognized by the Company totaled approximately $111 million at March 31, 2015 and 2014. These losses were recognized in fiscal years 2003 and 2002. There were no impairments recognized in fiscal years 2015, 2014 and 2013. | ||||||||||||||||||||
Goodwill activity by segment for fiscal years 2015 and 2014 was as follows: | ||||||||||||||||||||
(in millions) | Mainframe Solutions | Enterprise Solutions | Services | Total | ||||||||||||||||
Balance at March 31, 2013 | $ | 4,178 | $ | 1,605 | $ | 81 | $ | 5,864 | ||||||||||||
Acquisitions | — | 55 | — | 55 | ||||||||||||||||
Foreign currency translation adjustment | — | 3 | — | 3 | ||||||||||||||||
Balance at March 31, 2014 | $ | 4,178 | $ | 1,663 | $ | 81 | $ | 5,922 | ||||||||||||
Divestitures | $ | — | $ | (109 | ) | $ | — | $ | (109 | ) | ||||||||||
Foreign currency translation adjustment | — | (7 | ) | — | (7 | ) | ||||||||||||||
Balance at March 31, 2015 | 4,178 | 1,547 | 81 | 5,806 | ||||||||||||||||
Deferred_Revenue
Deferred Revenue | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deferred Revenue Disclosure [Abstract] | ||||||||
Deferred Revenue | Note 7 — Deferred Revenue | |||||||
The current and noncurrent components of “Deferred revenue (billed or collected)” at March 31, 2015 and March 31, 2014 were as follows: | ||||||||
At March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Current: | ||||||||
Subscription and maintenance | $ | 1,966 | $ | 2,237 | ||||
Professional services | 115 | 149 | ||||||
Software fees and other | 33 | 33 | ||||||
Total deferred revenue (billed or collected) – current | $ | 2,114 | $ | 2,419 | ||||
Noncurrent: | ||||||||
Subscription and maintenance | $ | 832 | $ | 845 | ||||
Professional services | 28 | 26 | ||||||
Software fees and other | 3 | 1 | ||||||
Total deferred revenue (billed or collected) – noncurrent | $ | 863 | $ | 872 | ||||
Total deferred revenue (billed or collected) | $ | 2,977 | $ | 3,291 | ||||
Debt
Debt | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Debt | Note 8 — Debt | |||||||||||||||||||||||
At March 31, 2015 and 2014, the Company’s debt obligations consisted of the following: | ||||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||||||||||||
5.375% Senior Notes due December 2019 | 750 | 750 | ||||||||||||||||||||||
6.125% Senior Notes due December 2014, net of unamortized premium from fair value hedge of $8 at March 31, 2014 | — | 508 | ||||||||||||||||||||||
2.875% Senior Notes due August 2018 | 250 | 250 | ||||||||||||||||||||||
4.500% Senior Notes due August 2023 | 250 | 250 | ||||||||||||||||||||||
Other indebtedness, primarily capital leases | 17 | 13 | ||||||||||||||||||||||
Unamortized discount for Senior Notes | (4 | ) | (5 | ) | ||||||||||||||||||||
Total debt outstanding | $ | 1,263 | $ | 1,766 | ||||||||||||||||||||
Less the current portion | (10 | ) | (514 | ) | ||||||||||||||||||||
Total long-term debt portion | $ | 1,253 | $ | 1,252 | ||||||||||||||||||||
Interest expense for fiscal years 2015, 2014 and 2013 was $77 million, $75 million and $64 million, respectively. | ||||||||||||||||||||||||
The maturities of outstanding debt are as follows: | ||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||
(in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||||||||
Amount due | $ | 10 | $ | 5 | $ | 1 | $ | 250 | $ | 748 | $ | 249 | ||||||||||||
Revolving Credit Facility: In June 2013, the Company amended its revolving credit facility to extend the termination date from August 2016 to June 2018. The maximum committed amount available under the revolving credit facility is $1 billion. The facility also provides the Company with an option to increase the available credit by an amount up to $500 million. This option is subject to certain conditions and the agreement of the facility lenders. In April 2015, the Company amended its revolving credit facility to extend the termination date from June 2018 to June 2019. | ||||||||||||||||||||||||
Advances under the revolving credit facility bear interest at a rate dependent on the Company’s credit ratings at the time of those borrowings and are calculated according to a Base Rate or a Eurocurrency Rate, as the case may be, plus an applicable margin. The Company must also pay facility commitment fees quarterly on the full revolving credit commitment at rates dependent on the Company’s credit ratings. | ||||||||||||||||||||||||
At March 31, 2015 and 2014, there were no outstanding borrowings under the revolving credit facility and, based on the Company’s credit ratings, the rates applicable to the facility at March 31, 2015 and 2014 were as follows: | ||||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Applicable margin on Base Rate borrowing | 0.125 | % | 0.125 | % | ||||||||||||||||||||
Weighted average interest rate on outstanding borrowings | — | % | — | % | ||||||||||||||||||||
Applicable margin on Eurocurrency Rate borrowing | 1 | % | 1 | % | ||||||||||||||||||||
Facility commitment fee | 0.125 | % | 0.125 | % | ||||||||||||||||||||
The interest rate that would have applied at March 31, 2015 to a borrowing under the amended revolving credit facility would have been 3.38% for Base Rate borrowings and 1.18% for Eurocurrency Rate borrowings. The Company capitalized the transaction fees of approximately $1 million associated with the June 2013 amendment of the revolving credit facility. These fees are being amortized to “Interest expense, net” in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
There was no borrowing activity under the revolving credit facility for fiscal years 2015, 2014 and 2013. The revolving credit facility contains customary covenants for borrowings of this type, including two financial covenants: (i) as of any date, for the period of four fiscal quarters ended on or immediately prior to such date, the ratio of consolidated debt for borrowed money to consolidated cash flow, each as defined in the revolving credit facility agreement, must not exceed 4.00 to 1.00; and (ii) as of any date, for the period of four fiscal quarters ended on or immediately prior to such date, the ratio of consolidated cash flow to the sum of interest payable on, and amortization of debt discount in respect of, all consolidated debt for borrowed money, as defined in the credit agreement, must not be less than 3.50 to 1.00. At March 31, 2015, the Company was in compliance with all covenants. | ||||||||||||||||||||||||
In addition, future borrowings under the revolving credit facility require, at the date of a borrowing, that (i) no event of default shall have occurred and be continuing and (ii) the Company reaffirm the representations and warranties it made in the credit agreement. | ||||||||||||||||||||||||
Senior Notes: The Company’s Senior Notes (Notes) are senior unsecured obligations that rank equally in right of payment with all of the Company’s other existing and future senior unsecured and unsubordinated indebtedness. The Notes are senior in right of payment to all of the Company's existing and future senior subordinated or subordinated indebtedness. The Notes are subordinated to any future secured indebtedness to the extent of the assets securing such future indebtedness and structurally subordinated to any indebtedness of the Company’s subsidiaries. The Company has the option to redeem the Notes at any time, at redemption prices equal to the greater of (i) the principal amount of the securities to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal thereof and interest thereon that would be due on the securities to be redeemed, discounted to the date of redemption on a semi-annual basis at the treasury rate plus the basis points specified for each series of Notes. The Notes contain customary covenants and events of default. The maturity of the Notes may be accelerated by the holders upon certain events of default, including failure to make payments when due and failure to comply with covenants or agreements of the Company set forth in the Notes or the Indenture after notice and failure to cure. | ||||||||||||||||||||||||
2.875% Senior Notes due August 2018: During fiscal year 2014, the Company issued $250 million of 2.875% Senior Notes due August 2018 (2.875% Notes), for proceeds of approximately $249 million, reflecting a discount of approximately $1 million. The 2.875% Notes are redeemable by the Company at any time, subject to a “make-whole” premium of 25 basis points. Interest on the 2.875% Notes is payable semiannually in August and February. In the event of a change of control, each note holder will have the right to require the Company to repurchase all or any part of the holder’s 2.875% Notes in cash at a price equal to 101% of the principal amount of such 2.875% Notes plus accrued and unpaid interest, if any, to the date of repurchase. This is subject to the right of holders of record on the relevant interest payment date to receive interest due. The Company capitalized finance costs of approximately $2 million associated with the 2.875% Notes and will amortize these costs to “Interest expense, net” in the Company’s Consolidated Statements of Operations. | ||||||||||||||||||||||||
4.500% Senior Notes due August 2023: During fiscal year 2014, the Company issued $250 million of 4.500% Senior Notes due August 2023 (4.500% Notes), for proceeds of approximately $249 million, reflecting a discount of approximately $1 million. The 4.500% Notes are redeemable by the Company at any time, subject to a “make-whole” premium of 30 basis points. Interest on the 4.500% Notes is payable semiannually in August and February. In the event of a change of control, each note holder will have the right to require the Company to repurchase all or any part of the holder’s 4.500% Notes in cash at a price equal to 101% of the principal amount of such 4.500% Notes plus accrued and unpaid interest, if any, to the date of repurchase. This is subject to the right of holders of record on the relevant interest payment date to receive interest due. The Company capitalized finance costs of approximately $2 million associated with the 4.500% Notes and will amortize these costs to “Interest expense, net” in the Company’s Consolidated Statements of Operations. | ||||||||||||||||||||||||
5.375% Senior Notes due December 2019: During fiscal year 2010, the Company issued $750 million principal amount of 5.375% Senior Notes due December 2019 (5.375% Notes). The 5.375% Notes are redeemable by the Company at any time, subject to a premium of 30 basis points. Interest on the 5.375% Notes is payable semiannually in June and December. In the event of a change of control, each note holder will have the right to require the Company to repurchase all or any part of the holder’s 5.375% Notes in cash at a price equal to 101% of the principal amount of such 5.375% Notes plus accrued and unpaid interest, if any, to the date of repurchase. This is subject to the right of holders of record on the relevant interest payment date to receive interest due. | ||||||||||||||||||||||||
6.125% Senior Notes due December 2014: During the third quarter of fiscal year 2015, the Company repaid its 6.125% Senior Notes due December 2014 in full for $500 million. | ||||||||||||||||||||||||
Other Indebtedness: The Company has an unsecured and uncommitted multi-currency line of credit available to meet short-term working capital needs for the Company’s subsidiaries 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, 2015 and 2014, approximately $27 million and $49 million, respectively, of this line of credit were pledged in support of bank guarantees and other local credit lines. At March 31, 2015, none of these arrangements were drawn down by third parties. At March 31, 2014, less than $1 million of these arrangements were drawn down by third parties. | ||||||||||||||||||||||||
The Company uses a notional pooling arrangement with an international bank to help manage global liquidity. Under this pooling arrangement, the Company and its participating subsidiaries may maintain either cash deposit or borrowing positions through local currency accounts with the bank, so long as the aggregate position of the global pool is a notionally calculated net cash deposit. Because it maintains a security interest in the cash deposits and has the right to offset the cash deposits against the borrowings, the bank provides the Company and its participating subsidiaries favorable interest terms on both. At March 31, 2015 and 2014, the borrowings outstanding under this notional pooling arrangement, and changes therein, were as follows: | ||||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||
Total borrowings outstanding at beginning of year (1) | $ | 139 | $ | 136 | ||||||||||||||||||||
Borrowings | 5,371 | 3,702 | ||||||||||||||||||||||
Repayments | (5,207 | ) | (3,734 | ) | ||||||||||||||||||||
Foreign exchange effect | (165 | ) | 35 | |||||||||||||||||||||
Total borrowings outstanding at end of year (1) | $ | 138 | $ | 139 | ||||||||||||||||||||
-1 | Included in “Accrued expenses and other current liabilities” in the Company’s Consolidated Balance Sheets. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Derivatives | Note 9 — Derivatives | |||||||||||
The Company is exposed to financial market risks arising from changes in interest rates and foreign exchange rates. Changes in interest rates could affect the Company’s monetary assets and liabilities, and foreign exchange rate changes could affect the Company’s foreign currency denominated monetary assets and liabilities and forecasted transactions. The Company enters into derivative contracts with the intent of mitigating a portion of these risks. | ||||||||||||
Interest Rate Swaps: During the third quarter of fiscal year 2015, the Company repaid its 6.125% Senior Notes due December 2014 in full. The Company had interest rate swap derivatives with a total notional value of $500 million, which swapped a total of $500 million of its 6.125% Senior Notes due December 2014 into floating interest rate debt through December 1, 2014. These swaps were designated as fair value hedges and matured in the third quarter of fiscal year 2015. | ||||||||||||
At March 31, 2015, the Company had no interest rate swap derivatives outstanding. | ||||||||||||
At March 31, 2014, the fair value of the interest rate swap derivatives was an asset of approximately $8 million, which is included in “Other current assets” in the Company’s Consolidated Balance Sheet. | ||||||||||||
Foreign Currency Contracts: The Company enters into foreign currency option and forward contracts to manage foreign currency risks. The Company has not designated its foreign exchange derivatives as hedges. Accordingly, changes in fair value from these contracts are recorded as “Other expenses (gains), net” in the Company’s Consolidated Statements of Operations. | ||||||||||||
At March 31, 2015, foreign currency contracts outstanding consisted of purchase and sale contracts with a total gross notional value of approximately $298 million, and durations of less than three months. The net fair value of these contracts at March 31, 2015 was a net asset of approximately $2 million, of which approximately $5 million is included in “Other current assets” and approximately $3 million is included in “Accrued expenses and other current liabilities” in the Company’s Consolidated Balance Sheet. | ||||||||||||
At March 31, 2014, foreign currency contracts outstanding consisted of purchase and sale contracts with a total gross notional value of approximately $250 million and durations of less than three months. The net fair value of these contracts at March 31, 2014 was a net asset of approximately $1 million, of which approximately $2 million is included in “Other current assets” and approximately $1 million is included in “Accrued expenses and other current liabilities” in the Company’s Consolidated Balance Sheet. | ||||||||||||
A summary of the effect of the interest rate and foreign exchange derivatives on the Company’s Consolidated Statements of Operations was as follows: | ||||||||||||
Amount of Net (Gain)/Loss Recognized in the | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
Location of Amounts Recognized | Year Ended March 31, | |||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Interest expense, net – interest rate swaps designated as fair value hedges | $ | (8 | ) | $ | (12 | ) | $ | (12 | ) | |||
Other expenses (gains), net – foreign currency contracts | $ | (31 | ) | $ | (20 | ) | $ | 11 | ||||
The Company is subject to collateral security arrangements with most of its major counterparties. These arrangements require the Company or the counterparty to post collateral when the derivative fair values exceed contractually established thresholds. The aggregate fair values of all derivative instruments under these collateralized arrangements were in a net asset position at March 31, 2015 and 2014. The Company posted no collateral at March 31, 2015 or 2014. Under these agreements, if the Company’s credit ratings had been downgraded one rating level, the Company would still not have been required to post collateral. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Fair Value Measurements | Note 10 — Fair Value Measurements | |||||||||||||||||||||||
The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis at March 31, 2015 and 2014: | ||||||||||||||||||||||||
At March 31, 2015 | At March 31, 2014 | |||||||||||||||||||||||
Fair Value | Estimated | Fair Value | Estimated | |||||||||||||||||||||
Measurement Using | Fair | Measurement Using | Fair | |||||||||||||||||||||
Input Types | Value | Input Types | Value | |||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Money market funds (1) | $ | 749 | $ | — | $ | 749 | $ | 1,277 | $ | — | $ | 1,277 | ||||||||||||
Foreign exchange derivatives (2) | — | 5 | 5 | — | 2 | 2 | ||||||||||||||||||
Interest rate derivatives (2) | — | — | — | — | 8 | 8 | ||||||||||||||||||
Total assets | $ | 749 | $ | 5 | $ | 754 | $ | 1,277 | $ | 10 | $ | 1,287 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Foreign exchange derivatives (2) | $ | — | $ | 3 | $ | 3 | $ | — | $ | 1 | $ | 1 | ||||||||||||
Total liabilities | $ | — | $ | 3 | $ | 3 | $ | — | $ | 1 | $ | 1 | ||||||||||||
-1 | The Company's investments in money market funds are classified as “Cash and cash equivalents” in its Consolidated Balance Sheets. | |||||||||||||||||||||||
-2 | See Note 9, “Derivatives” for additional information. Interest rate derivatives fair value excludes accrued interest. | |||||||||||||||||||||||
At March 31, 2015 and 2014, the Company did not have any assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3). | ||||||||||||||||||||||||
The carrying values of financial instruments classified as current assets and current liabilities, such as cash and cash equivalents, short-term investments, accounts payable, accrued expenses, and short-term borrowings, approximate fair value due to the short-term maturity of the instruments. | ||||||||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments that were not measured at fair value on a recurring basis at March 31, 2015 and 2014: | ||||||||||||||||||||||||
At March 31, 2015 | At March 31, 2014 | |||||||||||||||||||||||
(in millions) | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Total debt (1) | $ | 1,263 | $ | 1,376 | $ | 1,766 | $ | 1,884 | ||||||||||||||||
Facility exit reserve (2) | $ | 21 | $ | 23 | $ | 29 | $ | 33 | ||||||||||||||||
-1 | Estimated fair value of total debt is based on quoted prices for similar liabilities for which significant inputs are observable except for certain long-term lease obligations, for which fair value approximates carrying value (Level 2). | |||||||||||||||||||||||
-2 | Estimated fair value for the facility exit reserve is determined using the Company’s incremental borrowing rate at March 31, 2015 and 2014. At March 31, 2015 and 2014, the facility exit reserve included approximately $4 million and $11 million, respectively, in “Accrued expenses and other current liabilities” and approximately $17 million and $18 million, respectively, in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets (Level 3). |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Note 11 — Commitments and Contingencies | |||
The Company leases real estate and equipment with lease terms expiring through fiscal year 2025. Certain leases provide for renewal options and additional rentals based on escalations in operating expenses and real estate taxes. | ||||
Rental expense, including short-term leases, maintenance charges and taxes on leased facilities, was approximately $144 million, $144 million and $148 million for fiscal years 2015, 2014 and 2013, respectively. Rental expense does not include rent expense associated with facilities exited as part of the Company's Fiscal 2014 Plan or previous restructuring plans and actions. | ||||
Future minimum lease payments under non-cancelable operating leases, including facilities exited as part of the Company's Fiscal 2014 Plan and previous restructuring plans and actions, at March 31, 2015 were as follows: | ||||
Fiscal Year | (in millions) | |||
2016 | $ | 80 | ||
2017 | 71 | |||
2018 | 64 | |||
2019 | 52 | |||
2020 | 47 | |||
Thereafter | 85 | |||
Total | $ | 399 | ||
Less income from sublease | (23 | ) | ||
Net minimum operating lease payments | $ | 376 | ||
The Company has additional commitments to purchase goods and services of approximately $235 million in future periods, approximately $220 million of which expires by fiscal year 2020. | ||||
Litigation: The Company, various subsidiaries, and certain current and former officers have been or, from time to time, may be named as defendants in various lawsuits and claims arising in the normal course of business. The Company may also become involved with contract issues and disputes with customers, including government customers. | ||||
On March 24, 2014, the U.S. Department of Justice (DOJ) filed under seal in the United States District Court for the District of Columbia a complaint against the Company in partial intervention under the qui tam provisions of the civil False Claims Act (FCA). The underlying complaint was filed under seal by an individual plaintiff on August 24, 2009. On May 29, 2014, the case was unsealed. Both the DOJ and the individual plaintiff have filed amended complaints. The current complaints relate to government sales transactions under the Company’s General Services Administration (GSA) schedule contract, entered into in 2002 and extended until present through subsequent amendments. In sum and substance, the current complaints allege that the Company provided inaccurate commercial discounting information to the GSA during contract negotiations and that, as a result, the GSA’s contract discount was lower than it otherwise would have been. In addition, the complaints allege that the Company failed to apply the full negotiated discount in some instances and to pay sufficient rebates pursuant to the contract’s price reduction clause. In addition to FCA claims, the current complaints also assert common law causes of action. The DOJ complaint seeks an unspecified amount of damages, including treble damages and civil penalties. The complaint by the individual plaintiff alleges that the U.S. government has suffered damages in excess of $100 million and seeks an unspecified amount of damages, including treble damages and civil penalties. The Company filed motions to dismiss the current complaints. On March 31, 2015, the court issued decisions denying the Company's motion to dismiss the DOJ complaint, and granting in part and denying in part the Company's motion to dismiss the individual plaintiff's complaint. On April 22, 2015, the court set a discovery schedule for the case. On October 30, 2014, the GSA Suspension and Debarment Division issued a Show Cause Letter to the Company in response to the complaints summarized above. In sum, the letter called on the Company to demonstrate why the U.S. government should continue to contract with the Company, given the litigation allegations made in these complaints. On December 19, 2014, the Company provided a detailed response to the Show Cause Letter. The response pointed out that the allegations in this litigation are being contested and have not been adjudicated. It also included a summary of the Company’s positions with respect to the allegations and the manner in which the Company believes that it meets the criteria for being a party with which the U.S. government should continue to contract. That response is currently under consideration by the GSA Suspension and Debarment Division. The Company cannot predict the amount of damages likely to result from the litigation summarized above. Although the timing and ultimate outcome of this litigation and the Show Cause Letter cannot be determined, the Company believes that the material aspects of the liability theories set forth in the litigation complaints are unfounded and that it is a responsible party with whom the U.S. government should continue to contract. The Company also believes that it has meritorious defenses and intends to vigorously contest the lawsuit. | ||||
Based on the Company's experience, management believes that the damages amounts claimed in a case are not a meaningful indicator of the potential liability. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of cases. The Company believes that it has meritorious defenses in connection with its current lawsuits and material claims and disputes, and intends to vigorously contest each of them. | ||||
In the opinion of the Company's management based upon information currently available to the Company, while the outcome of these lawsuits, claims and disputes is uncertain, the likely results of these lawsuits, claims and disputes are not expected, either individually or in the aggregate, to have a material adverse effect on the Company's financial position, results of operations or cash flows, although the effect could be material to the Company's results of operations or cash flows for any interim reporting period. For some of these matters, the Company is unable to estimate a range of reasonably possible loss due to the stage of the matter and/or other particular circumstances of the matter. For others, a range of reasonably possible loss can be estimated. For those matters for which such a range can be estimated, the Company estimates that, in the aggregate, the range of reasonably possible loss is from zero to $30 million. This is in addition to amounts, if any, that have been accrued for those matters. | ||||
The Company is obligated to indemnify its officers and directors under certain circumstances to the fullest extent permitted by Delaware law. As a part of that obligation, the Company may, from time to time, advance certain attorneys' fees and expenses incurred by officers and directors in various lawsuits and investigations, as permitted under Delaware law. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Stockholders' Equity | Note 12 — Stockholders’ Equity | ||||||||
Stock Repurchases: On May 14, 2014, the Company’s Board of Directors approved a stock repurchase program that authorized the Company to acquire up to $1 billion of its common stock. | |||||||||
During fiscal year 2015, the Company repurchased approximately 7.2 million shares of its common stock for approximately $215 million. At March 31, 2015, the Company remained authorized to purchase approximately $785 million of its common stock under its current stock repurchase program. | |||||||||
During fiscal year 2014, the Company repurchased approximately 16.3 million shares of its common stock for approximately $505 million, which completed its previous stock repurchase program. | |||||||||
During fiscal year 2013, the Company completed an Accelerated Share Repurchase (ASR) agreement with a bank to repurchase $500 million of its common stock, which was entered into during the fourth quarter of fiscal year 2012. During the first quarter of fiscal year 2013, the Company received approximately 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 the Company’s common stock over the term of the ASR agreement. | |||||||||
Accumulated Other Comprehensive Loss: Foreign currency translation losses included in "Accumulated other comprehensive loss" in the Company's Consolidated Balance Sheets at March 31, 2015, 2014 and 2013 were approximately $418 million, $171 million and $155 million, respectively. | |||||||||
Cash Dividends: The Company’s Board of Directors declared the following dividends during fiscal years 2015 and 2014: | |||||||||
Year Ended March 31, 2015: | |||||||||
(in millions, except per share amounts) | |||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | |||||
May 15, 2014 | $0.25 | May 29, 2014 | $111 | June 17, 2014 | |||||
July 31, 2014 | $0.25 | August 21, 2014 | $111 | September 9, 2014 | |||||
November 6, 2014 | $0.25 | November 20, 2014 | $111 | December 9, 2014 | |||||
February 5, 2015 | $0.25 | February 19, 2015 | $111 | March 17, 2015 | |||||
Year Ended March 31, 2014: | |||||||||
(in millions, except per share amounts) | |||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | |||||
May 9, 2013 | $0.25 | May 23, 2013 | $114 | June 11, 2013 | |||||
August 1, 2013 | $0.25 | August 22, 2013 | $114 | September 10, 2013 | |||||
November 6, 2013 | $0.25 | November 21, 2013 | $113 | December 10, 2013 | |||||
February 5, 2014 | $0.25 | February 20, 2014 | $112 | March 18, 2014 | |||||
Rights Plan: Under the Stockholder Protection Rights Agreement dated November 8, 2012, each outstanding share of the Company's common stock carries a right (Right). The Rights will trade with the common stock until the Separation Time, which would occur on the next business day after: (i) the 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 provision so long as their aggregate ownership of common stock does not exceed the sum of 126,562,500 shares of common stock and that number of shares equal to 0.1% of the then outstanding shares of common stock); (ii) the date on which any Acquiring Person becomes the beneficial owner of more than 50% of the outstanding shares of common stock; or (iii) the 10th business day after the commencement of a tender offer or exchange offer (or such later date as the Company's Board of Directors may from time to time determine prior to the Separation Time) that would result in an Acquiring Person owning 20% or more of the Company's outstanding common stock. Following the Separation Time, each Right may be exercised to purchase 0.001 shares of the Company's participating preferred stock at a purchase price of $100 per share. If the Separation Time occurs pursuant to an event described in (i) or (ii) above, however, each Right, other than rights held by an Acquiring Person, will entitle the holder to receive, for an exercise price of $100, that number of shares of the Company's common stock (or, in certain circumstances, cash, property or other securities) having an aggregate Market Price (as determined under the Rights Agreement) equal to two times the exercise price. The Rights will not be triggered by a Qualifying Offer, as defined in the Rights Agreement, if holders of at least 10% of the outstanding shares of the Company's common stock request pursuant to the terms of the Rights Agreement that a special meeting of stockholders be convened for the purpose of exempting such offer from the Rights Agreement, and thereafter the stockholders vote at that meeting to exempt that Qualifying Offer from the Rights Agreement. The Rights, which are redeemable by the Company at $0.001 per Right, and the Rights Agreement expire November 30, 2015. |
Income_from_Continuing_Operati
Income from Continuing Operations Per Common Share | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Income from Continuing Operations Per Common Share | Note 13 — Income from Continuing Operations Per Common Share | |||||||||||
The following table presents basic and diluted income from continuing operations per common share information for fiscal years 2015, 2014 and 2013, respectively: | ||||||||||||
Year Ended March 31, | ||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2013 | |||||||||
Basic income from continuing operations per common share: | ||||||||||||
Income from continuing operations | $ | 810 | $ | 887 | $ | 921 | ||||||
Less: Income from continuing operations allocable to participating securities | (8 | ) | (9 | ) | (11 | ) | ||||||
Income from continuing operations allocable to common shares | $ | 802 | $ | 878 | $ | 910 | ||||||
Weighted average common shares outstanding | 439 | 446 | 456 | |||||||||
Basic income from continuing operations per common share | $ | 1.83 | $ | 1.97 | $ | 2 | ||||||
Diluted income from continuing operations per common share: | ||||||||||||
Income from continuing operations | $ | 810 | $ | 887 | $ | 921 | ||||||
Less: Income from continuing operations allocable to participating securities | (8 | ) | (9 | ) | (11 | ) | ||||||
Income from continuing operations allocable to common shares | $ | 802 | $ | 878 | $ | 910 | ||||||
Weighted average shares outstanding and common share equivalents: | ||||||||||||
Weighted average common shares outstanding | 439 | 446 | 456 | |||||||||
Weighted average effect of share-based payment awards | 2 | 2 | 1 | |||||||||
Denominator in calculation of diluted income per share | 441 | 448 | 457 | |||||||||
Diluted income from continuing operations per common share | $ | 1.82 | $ | 1.96 | $ | 1.99 | ||||||
For fiscal years 2015, 2014 and 2013, respectively, approximately 1 million, 2 million and 4 million shares of Company common stock underlying restricted stock awards and options to purchase common stock were excluded from the calculation because their effect on income per share was anti-dilutive during the respective periods. Weighted average restricted stock awards of approximately 4 million, 5 million and 5 million for fiscal years 2015, 2014 and 2013, respectively, were considered participating securities in the calculation of net income allocable to common stockholders. |
Stock_Plans
Stock Plans | 12 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||
Stock Plans | Note 14 — Stock Plans | |||||||||||||||||||||||||
Share-based incentive awards are provided to employees under the terms of the Company’s equity incentive compensation plans (the Plans). The Plans are administered by the Compensation Committee. Awards under the Plans may include stock options, restricted stock awards (RSAs), restricted stock units (RSUs), performance share units (PSUs), stock appreciation rights or any combination thereof. The non-employee members of the Company’s Board of Directors receive deferred stock units under a separate director compensation plan. The Company typically settles awards under employee and non-employee director compensation plans with stock held in treasury. | ||||||||||||||||||||||||||
All Plans, with the exception of acquired companies’ stock plans, have been approved by the Company’s shareholders. The Company grants all new annual performance cash incentive bonuses, long-term performance bonuses, non-statutory stock options, RSAs, RSUs and other equity-based awards under the 2011 Incentive Plan, which replaced the 2007 Incentive Plan. Outstanding awards under the 2007 Incentive Plan and 2002 Incentive Plan, as amended, are satisfied under their respective Plans. Approximately 45 million shares of common stock were originally available to be granted to select employees and consultants under the 2011 Incentive Plan. Under the 2011 Incentive Plan, no more than 10 million incentive stock options may be granted. The 2011 Incentive Plan will continue until the earlier of (i) termination by the Board or (ii) the tenth anniversary of the date of the Company’s 2011 Annual Meeting of Stockholders. Awards to the non-employee directors are granted under the 2012 Compensation Plan for Non-Employee Directors, which replaced the 2003 Compensation Plan for Non-Employee Directors, as amended. | ||||||||||||||||||||||||||
Share-Based Compensation: The Company recognized share-based compensation in the following line items in the Consolidated Statements of Operations for the periods indicated: | ||||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Costs of licensing and maintenance | $ | 5 | $ | 4 | $ | 3 | ||||||||||||||||||||
Cost of professional services | 4 | 4 | 4 | |||||||||||||||||||||||
Selling and marketing | 30 | 28 | 30 | |||||||||||||||||||||||
General and administrative | 29 | 26 | 23 | |||||||||||||||||||||||
Product development and enhancements | 19 | 19 | 17 | |||||||||||||||||||||||
Share-based compensation expense before tax | $ | 87 | $ | 81 | $ | 77 | ||||||||||||||||||||
Income tax benefit | (28 | ) | (26 | ) | (25 | ) | ||||||||||||||||||||
Net share-based compensation expense | $ | 59 | $ | 55 | $ | 52 | ||||||||||||||||||||
The tax benefit from share-based incentive awards provided to employees that was recorded for book purposes exceeded that which was deductible for tax purposes by $1 million, $5 million and $2 million for fiscal years 2015, 2014 and 2013, respectively. The tax effect of this temporary difference in tax expense was recorded to “Additional paid-in capital” in the Consolidated Balance Sheets and did not affect the Company’s Consolidated Statements of Operations. | ||||||||||||||||||||||||||
The following table summarizes information about unrecognized share-based compensation costs at March 31, 2015: | ||||||||||||||||||||||||||
Unrecognized Share-Based Compensation Costs | Weighted Average Period Expected to be Recognized | |||||||||||||||||||||||||
(in millions) | (in years) | |||||||||||||||||||||||||
Stock option awards | $ | 6 | 1.8 | |||||||||||||||||||||||
Restricted stock units | 16 | 1.9 | ||||||||||||||||||||||||
Restricted stock awards | 55 | 1.9 | ||||||||||||||||||||||||
Performance share units | 23 | 2.3 | ||||||||||||||||||||||||
Total unrecognized share-based compensation costs | $ | 100 | 2 | |||||||||||||||||||||||
There were no capitalized share-based compensation costs at March 31, 2015, 2014 or 2013. | ||||||||||||||||||||||||||
Stock Option Awards: Stock options are awards issued to employees that entitle the holder to purchase shares of the Company’s stock at a fixed price. Stock option awards are generally granted at an exercise price equal to the Company’s fair market value on the date of grant and with a contractual term of 10 years, unless the Compensation Committee establishes a shorter expiration period or the stock options are forfeited. Stock option awards generally vest one-third per year and become fully vested three years from the grant date. | ||||||||||||||||||||||||||
At March 31, 2015, options outstanding that have vested and are expected to vest were as follows: | ||||||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (1) | |||||||||||||||||||||||
(in millions) | (in years) | (in millions) | ||||||||||||||||||||||||
Vested | 1.2 | $ | 25.92 | 6.7 | $ | 7.8 | ||||||||||||||||||||
Expected to vest (2) | 1.8 | 27.56 | 7.9 | 9.1 | ||||||||||||||||||||||
Total | 3 | $ | 26.92 | 7.4 | $ | 16.9 | ||||||||||||||||||||
-1 | These amounts represent the difference between the exercise price and $32.61, the closing price of the Company’s common stock on March 31, 2015, the last trading day of the Company’s fiscal year as reported on the NASDAQ Stock Market for all in-the-money options. | |||||||||||||||||||||||||
-2 | Outstanding options expected to vest are net of estimated future forfeitures. | |||||||||||||||||||||||||
Additional information with respect to stock option activity was as follows: | ||||||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Outstanding at March 31, 2012 | 5.8 | $ | 23.52 | |||||||||||||||||||||||
Granted | 1.8 | 24.39 | ||||||||||||||||||||||||
Exercised | (1.2 | ) | 17.17 | |||||||||||||||||||||||
Expired or terminated | (0.4 | ) | 22.09 | |||||||||||||||||||||||
Outstanding at March 31, 2013 | 6 | $ | 25.17 | |||||||||||||||||||||||
Granted | 1.7 | 27.86 | ||||||||||||||||||||||||
Exercised | (3.5 | ) | 25.06 | |||||||||||||||||||||||
Expired or terminated | (0.5 | ) | 25.95 | |||||||||||||||||||||||
Outstanding at March 31, 2014 | 3.7 | $ | 26.13 | |||||||||||||||||||||||
Granted | 0.9 | 29.13 | ||||||||||||||||||||||||
Exercised | (0.9 | ) | 25.46 | |||||||||||||||||||||||
Expired or terminated | (0.5 | ) | 26.81 | |||||||||||||||||||||||
Outstanding at March 31, 2015 | 3.2 | $ | 27.02 | |||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Options exercisable at: | ||||||||||||||||||||||||||
March 31, 2013 | 3.7 | $ | 26.18 | |||||||||||||||||||||||
March 31, 2014 | 0.7 | $ | 26.07 | |||||||||||||||||||||||
March 31, 2015 | 1.2 | $ | 25.92 | |||||||||||||||||||||||
The following table summarizes stock option information at March 31, 2015: | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Prices | Shares | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Shares | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | ||||||||||||||||||
(in millions) | (in millions) | (in years) | (in millions) | (in millions) | (in years) | |||||||||||||||||||||
$19.93 — $25.00 | 0.9 | $ | 7.9 | 6.8 | $ | 23.56 | 0.6 | $ | 5.2 | 7 | $ | 23.46 | ||||||||||||||
$25.01 — $30.00 | 1.5 | 8.1 | 7.7 | 27.31 | 0.4 | 2.2 | 6.9 | 26.5 | ||||||||||||||||||
$30.01 — over | 0.8 | 1.6 | 7.9 | 30.52 | 0.2 | 0.4 | 5.6 | 31.05 | ||||||||||||||||||
3.2 | $ | 17.6 | 7.5 | $ | 27.02 | 1.2 | $ | 7.8 | 6.7 | $ | 25.92 | |||||||||||||||
The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair value of the Company’s stock options. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards. | ||||||||||||||||||||||||||
The weighted average estimated values of employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during fiscal years 2015, 2014 and 2013 were based on estimates at the date of grant as follows: | ||||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||
Weighted average fair value | $ | 5.61 | $ | 5.2 | $ | 4.26 | ||||||||||||||||||||
Dividend yield | 3.32 | % | 4.05 | % | 4.06 | % | ||||||||||||||||||||
Expected volatility factor (1) | 27 | % | 30 | % | 31 | % | ||||||||||||||||||||
Risk-free interest rate (2) | 2 | % | 1.5 | % | 1 | % | ||||||||||||||||||||
Expected life (in years) (3) | 6 | 6 | 4.9 | |||||||||||||||||||||||
-1 | Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term of the options and the implied volatility derived from the market prices of the Company’s traded options. | |||||||||||||||||||||||||
-2 | The risk-free rate for periods within the contractual term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||||||||||
-3 | The expected life is the number of years the Company estimates that options will be outstanding prior to exercise. The Company’s computation of expected life was determined based on the simplified method (the average of the vesting period and option term). | |||||||||||||||||||||||||
The following table summarizes information on options exercised for the periods indicated: | ||||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Cash received from options exercised | $ | 22 | $ | 88 | $ | 21 | ||||||||||||||||||||
Intrinsic value of options exercised | $ | 3 | $ | 19 | $ | 10 | ||||||||||||||||||||
Restricted Stock Awards and Restricted Stock Unit Awards: Restricted Stock Awards (RSAs) are shares of common stock awarded to employees, subject to restrictions on transfer and subject to forfeiture until the awards vest, typically over a three-year period. RSAs entitle holders to vote and receive dividends on the shares awarded. The fair value of the awards is determined and fixed based on the closing market value of the Company’s stock on the grant date. | ||||||||||||||||||||||||||
Restricted Stock Units (RSUs) are awards issued to employees that entitle the holder to receive shares of common stock as the awards vest, typically over a three-year period. RSUs do not entitle holders to vote or receive dividends on the shares underlying the RSUs. The fair value of the awards is determined and fixed based on the market value of the Company’s stock on the grant date reduced by the present value of dividends expected to be paid on the Company’s stock prior to vesting of the RSUs, which is calculated using a risk-free interest rate. | ||||||||||||||||||||||||||
The following table summarizes the activity of RSAs and RSUs under the Plans: | ||||||||||||||||||||||||||
RSAs | RSUs | |||||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
Outstanding at March 31, 2012 | 5.7 | $ | 22.41 | 1.2 | $ | 21.91 | ||||||||||||||||||||
Granted | 3.5 | 26.21 | 0.9 | 23.72 | ||||||||||||||||||||||
Released | (3.6 | ) | 22.22 | (0.6 | ) | 21.03 | ||||||||||||||||||||
Forfeitures | (0.6 | ) | 24.69 | (0.1 | ) | 23.38 | ||||||||||||||||||||
Outstanding at March 31, 2013 | 5 | $ | 24.98 | 1.4 | $ | 23.28 | ||||||||||||||||||||
Granted | 2.7 | 27.06 | 0.7 | 25.45 | ||||||||||||||||||||||
Released | (2.6 | ) | 24.49 | (0.6 | ) | 23.01 | ||||||||||||||||||||
Forfeitures | (0.8 | ) | 26.14 | (0.1 | ) | 24.41 | ||||||||||||||||||||
Outstanding at March 31, 2014 | 4.3 | $ | 26.38 | 1.4 | $ | 24.47 | ||||||||||||||||||||
Granted | 3.1 | 28.97 | 0.8 | 26.99 | ||||||||||||||||||||||
Released | (2.2 | ) | 26.36 | (0.6 | ) | 24.64 | ||||||||||||||||||||
Forfeitures | (0.9 | ) | 27.79 | (0.2 | ) | 25.59 | ||||||||||||||||||||
Outstanding at March 31, 2015 | 4.3 | $ | 27.99 | 1.4 | $ | 25.74 | ||||||||||||||||||||
The total fair value on the vesting date of RSAs and RSUs released during fiscal years 2015, 2014 and 2013 was approximately $75 million, $77 million and $92 million, respectively. | ||||||||||||||||||||||||||
Performance Awards: The Company rewards certain senior executives with performance awards under its long-term incentive plans. Performance Share Units (PSUs) are awards of the right to receive grants of unrestricted shares of Common Stock, RSAs or RSUs if and when the performance conditions are met and after approval by the Compensation Committee. These PSUs include 1-year and 3-year performance periods for senior executives and a 1-year performance period for members of the sales team. | ||||||||||||||||||||||||||
The table below summarizes the RSAs and RSUs granted under the 1-year PSUs for the fiscal year 2014, 2013 and 2012 incentive plan years. The RSAs and RSUs were granted in the first quarter of fiscal years 2015, 2014 and 2013, respectively. The RSAs and RSUs vest 34% on the date of grant and 33% on the first and second anniversaries of the date of grant. | ||||||||||||||||||||||||||
RSAs | RSUs | |||||||||||||||||||||||||
Incentive Plans for Fiscal Years | Performance Period | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
2014 | 1 year | 0.7 | $ | 29.91 | 0.1 | $ | 28.92 | |||||||||||||||||||
2013 | 1 year | 0.4 | $ | 27.11 | 0.1 | $ | 26.12 | |||||||||||||||||||
2012 | 1 year | 1.2 | $ | 26.39 | 0.2 | $ | 25.4 | |||||||||||||||||||
The unrestricted shares were granted under the 3-year PSUs for the fiscal year 2010 incentive plan year in the first quarter of fiscal year 2013. | ||||||||||||||||||||||||||
Incentive Plans for Fiscal Years | Performance Period | Unrestricted Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
2010 | 3 years | 0.2 | $ | 26.39 | ||||||||||||||||||||||
The table below summarizes the RSAs and RSUs granted under the 1-year PSUs for the fiscal year 2014, 2013 and 2012 sales retention equity programs. The RSAs and RSUs were granted in the first quarter of fiscal years 2015, 2014 and 2013, respectively. The RSAs and RSUs vest on the third anniversary of the grant date. | ||||||||||||||||||||||||||
RSAs | RSUs | |||||||||||||||||||||||||
Incentive Plans for Fiscal Years | Performance Period | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
2014 | 1 year | 0.2 | $ | 28.69 | 0.1 | $ | 25.73 | |||||||||||||||||||
2013 | 1 year | 0.2 | $ | 27.11 | 0.1 | $ | 24.13 | |||||||||||||||||||
2012 | 1 year | 0.2 | $ | 26.39 | 0.1 | $ | 23.41 | |||||||||||||||||||
Employee Stock Purchase Plan: The Company maintains the 2012 Employee Stock Purchase Plan (ESPP) for all eligible employees. The ESPP offer period is semi-annual and allows participants to purchase the Company’s common stock at 95% of the closing price of the stock on the last day of each offer period, on June 30 and December 31, respectively. The ESPP is non-compensatory. During each of the fiscal years ended March 31, 2015, 2014 and 2013, the Company issued approximately 0.2 million shares under the ESPP at an average price of $28.06, $29.62 and $22.65 per share, respectively. As of March 31, 2015, approximately 29.4 million shares were available for future issuances under the ESPP. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Note 15 – Income Taxes | |||||||||||
The amounts of income from continuing operations before income taxes attributable to domestic and foreign operations were as follows: | ||||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Domestic | $ | 737 | $ | 683 | $ | 877 | ||||||
Foreign | 378 | 333 | 383 | |||||||||
Income from continuing operations before income taxes | $ | 1,115 | $ | 1,016 | $ | 1,260 | ||||||
Income tax expense (benefit) from continuing operations consisted of the following: | ||||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Current: | ||||||||||||
Federal | $ | 284 | $ | 184 | $ | 261 | ||||||
State | 37 | 33 | 39 | |||||||||
Foreign | 56 | (19 | ) | 26 | ||||||||
Total current | $ | 377 | $ | 198 | $ | 326 | ||||||
Deferred: | ||||||||||||
Federal | $ | (74 | ) | $ | (82 | ) | $ | (18 | ) | |||
State | (12 | ) | (12 | ) | 3 | |||||||
Foreign | 14 | 25 | 28 | |||||||||
Total deferred | $ | (72 | ) | $ | (69 | ) | $ | 13 | ||||
Total: | ||||||||||||
Federal | $ | 210 | $ | 102 | $ | 243 | ||||||
State | 25 | 21 | 42 | |||||||||
Foreign | 70 | 6 | 54 | |||||||||
Total income tax expense from continuing operations | $ | 305 | $ | 129 | $ | 339 | ||||||
The income tax expense from continuing operations was reconciled to the tax expense computed at the U.S. federal statutory tax rate as follows: | ||||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Tax expense at U.S. federal statutory tax rate | $ | 390 | $ | 356 | $ | 440 | ||||||
Effect of international operations | (91 | ) | (147 | ) | (131 | ) | ||||||
U.S. federal and state tax contingencies | 1 | (123 | ) | (8 | ) | |||||||
Domestic manufacturing deduction | (23 | ) | (24 | ) | (21 | ) | ||||||
State taxes, net of U.S. federal tax benefit | 15 | 19 | 23 | |||||||||
Valuation allowance | 8 | 23 | 11 | |||||||||
Other, net | 5 | 25 | 25 | |||||||||
Income tax expense from continuing operations | $ | 305 | $ | 129 | $ | 339 | ||||||
Deferred income taxes reflect the effect of temporary differences between the carrying amounts of assets and liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes. The tax effects of the temporary differences from continuing operations were as follows: | ||||||||||||
At March 31, | ||||||||||||
(in millions) | 2015 | 2014 | ||||||||||
Deferred tax assets: | ||||||||||||
Modified accrual basis accounting for revenue | $ | 349 | $ | 373 | ||||||||
Share-based compensation | 31 | 30 | ||||||||||
Accrued expenses | 36 | 36 | ||||||||||
Net operating losses | 96 | 131 | ||||||||||
Intangible assets amortizable for tax purposes | 3 | 4 | ||||||||||
Deductible state tax and interest benefits | 20 | 20 | ||||||||||
Other | 69 | 65 | ||||||||||
Total deferred tax assets | $ | 604 | $ | 659 | ||||||||
Valuation allowances | (85 | ) | (87 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | $ | 519 | $ | 572 | ||||||||
Deferred tax liabilities: | ||||||||||||
Purchased software | $ | 48 | $ | 76 | ||||||||
Depreciation | 3 | 6 | ||||||||||
Other intangible assets | 17 | 34 | ||||||||||
Internally developed software | 93 | 158 | ||||||||||
Total deferred tax liabilities | $ | 161 | $ | 274 | ||||||||
Net deferred tax asset | $ | 358 | $ | 298 | ||||||||
In management’s judgment, it is more likely than not that the total deferred tax assets, net of valuation allowance, of approximately $519 million will be realized in the foreseeable future. Realization of the net deferred tax assets is dependent on the Company’s generation of sufficient future taxable income in the related tax jurisdictions to obtain benefit from the reversal of temporary differences, net operating loss carryforwards, and tax credit carryforwards. The amount of deferred tax assets considered realizable is subject to adjustments in future periods if estimates of future taxable income change. | ||||||||||||
U.S. federal, state and foreign net operating loss carryforwards (NOLs) totaled approximately $542 million and $672 million at March 31, 2015 and 2014, respectively. The NOLs will expire as follows: $412 million between 2015 and 2034 and $130 million may be carried forward indefinitely. | ||||||||||||
A valuation allowance has been provided for deferred tax assets that are not expected to be realized. The valuation allowance decreased approximately $2 million at March 31, 2015 and increased approximately $4 million at March 31, 2014. The decrease in the valuation allowance at March 31, 2015 primarily related to NOL's and other deferred tax assets in foreign jurisdictions that in management's judgment will not be realized, offset by currency translation adjustments. The increase in the valuation allowance at March 31, 2014 primarily related to amounts of NOLs and other deferred tax assets in foreign jurisdictions that in management's judgment will not be realized, offset by changes not affecting income tax expense such as accounting for acquisitions and uncertain tax positions. | ||||||||||||
No provision has been made for U.S. federal income taxes on approximately $2,759 million and $2,349 million at March 31, 2015 and 2014, respectively, of unremitted earnings of the Company’s foreign subsidiaries since the Company plans to permanently reinvest all such earnings outside the United States. It is not practicable to determine the amount of tax associated with such unremitted earnings. | ||||||||||||
At March 31, 2015, the gross liability for income taxes associated with uncertain tax positions, including interest and penalties, was approximately $162 million (of which $3 million was classified as current). In addition, at March 31, 2015, the Company recorded approximately $16 million of deferred tax assets for future deductions of interest and state income taxes related to these uncertain tax positions. At March 31, 2014, the gross liability for income taxes associated with uncertain tax positions, including interest and penalties, was approximately $202 million (of which none was classified as current). 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. | ||||||||||||
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. |
Supplemental_Statement_of_Cash
Supplemental Statement of Cash Flows Information | 12 Months Ended |
Mar. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows Information | 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. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment and Geographic Information | Note 17 — Segment and Geographic Information | |||||||||||||||||||
In accordance with FASB ASC Topic 280, “Segment Reporting,” the Company disaggregates its operations into Mainframe Solutions, Enterprise Solutions and Services segments, which is utilized by the Chief Operating Decision Maker, who is the Company's Chief Executive Officer, for evaluating segment performance and allocating resources. | ||||||||||||||||||||
The Company’s Mainframe Solutions and Enterprise Solutions segments comprise its software business organized by the nature of the Company’s software offerings and the platform on which the products operate. The Services segment comprises product implementation, consulting, customer education and customer training, including those directly related to the Mainframe Solutions and Enterprise Solutions software that the Company sells to its customers. | ||||||||||||||||||||
The Company regularly enters into a single arrangement with a customer that includes mainframe solutions, enterprise solutions and services. The amount of contract revenue assigned to operating segments is generally based on the manner in which the proposal is made to the customer. The software product revenue is assigned to the Mainframe Solutions and Enterprise Solutions segments based on either: (1) a list price allocation method (which allocates a discount in the total contract price to the individual products in proportion to the list price of the products); (2) allocations 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 assigned to the Services segment. The contract value assigned to each operating segment is then recognized in a manner consistent with the revenue recognition policies the Company applies to the customer contract for purposes of preparing the Consolidated Financial Statements. | ||||||||||||||||||||
Segment expenses include costs that are controllable by segment managers (i.e., direct costs) and, in the case of the Mainframe Solutions and Enterprise Solutions segments, an allocation of shared and indirect costs (i.e., allocated costs). Segment-specific direct costs include a portion of selling and marketing costs, licensing and maintenance costs, product development costs, general and administrative costs and amortization of the cost of internally developed software. Allocated segment costs primarily include indirect and non-segment-specific direct selling and marketing costs and general and administrative costs that are not directly attributable to a specific segment. The basis for allocating shared and indirect costs between the Mainframe Solutions and Enterprise Solutions segments is dependent on the nature of the cost being allocated and is either in proportion to segment revenues or in proportion to the related direct cost category. Expenses for the Services segment consist of cost of professional services and other direct costs included within selling and marketing and general and administrative expenses. There are no allocated or indirect costs for the Services segment. | ||||||||||||||||||||
Segment expenses do not include share-based compensation expense; amortization of purchased software; amortization of other intangible assets; approved actions by the Company's Board of Directors (i.e., costs associated with the Company's Fiscal 2014 Plan); and other miscellaneous costs. The Company considers all costs of internally developed software as segment expense in the period the costs are incurred and as a result, the Company will add back capitalized internal software costs and exclude amortization of internally developed software costs previously capitalized from segment expenses. A measure of segment assets is not currently provided to the Company’s Chief Executive Officer and has therefore not been disclosed. | ||||||||||||||||||||
As part of the Company’s efforts to more fully utilize its intellectual property assets, in fiscal year 2013, the Company closed a transaction that assigned the rights to certain of these assets to a large technology company for approximately $35 million. The entire contract amount is included in the Enterprise Solutions segment for the year ended March 31, 2013. | ||||||||||||||||||||
For fiscal year 2015, the Company incurred severance costs associated with the Fiscal 2015 Severance Actions, of which $17 million, $15 million and $8 million were assigned to the Mainframe Solutions, Enterprise Solutions and Services segments, respectively. For fiscal year 2013, the Company incurred severance costs, of which $3 million, $10 million and $2 million were assigned to the Mainframe Solutions, Enterprise Solutions and Services segments, respectively. See Note 4, “Severance and Exit Costs,” for additional information. | ||||||||||||||||||||
The Company’s segment information for fiscal years 2015, 2014 and 2013 was as follows: | ||||||||||||||||||||
Year Ended March 31, 2015 | Mainframe | Enterprise | Services | Total | ||||||||||||||||
(dollars in millions) | Solutions | Solutions | ||||||||||||||||||
Revenue | $ | 2,392 | $ | 1,519 | $ | 351 | $ | 4,262 | ||||||||||||
Expenses | 970 | 1,353 | 342 | 2,665 | ||||||||||||||||
Segment profit | $ | 1,422 | $ | 166 | $ | 9 | $ | 1,597 | ||||||||||||
Segment operating margin | 59 | % | 11 | % | 3 | % | 37 | % | ||||||||||||
Depreciation | $ | 43 | $ | 28 | $ | — | $ | 71 | ||||||||||||
Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2015: | ||||||||||||||||||||
Segment profit | $ | 1,597 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Purchased software amortization | 124 | |||||||||||||||||||
Other intangibles amortization | 58 | |||||||||||||||||||
Software development costs capitalized | — | |||||||||||||||||||
Internally developed software products amortization | 149 | |||||||||||||||||||
Share-based compensation expense | 87 | |||||||||||||||||||
Other expenses (gains), net (1) | 17 | |||||||||||||||||||
Interest expense, net | 47 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,115 | ||||||||||||||||||
-1 | Other expenses (gains), net consists of costs associated with the Fiscal 2014 Plan and other miscellaneous costs. | |||||||||||||||||||
Year Ended March 31, 2014 | Mainframe | Enterprise | Services | Total | ||||||||||||||||
(dollars in millions) | Solutions | Solutions | ||||||||||||||||||
Revenue | $ | 2,478 | $ | 1,555 | $ | 379 | $ | 4,412 | ||||||||||||
Expenses | 996 | 1,440 | 357 | 2,793 | ||||||||||||||||
Segment profit | $ | 1,482 | $ | 115 | $ | 22 | $ | 1,619 | ||||||||||||
Segment operating margin | 60 | % | 7 | % | 6 | % | 37 | % | ||||||||||||
Depreciation | $ | 52 | $ | 32 | $ | — | $ | 84 | ||||||||||||
Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2014: | ||||||||||||||||||||
Segment profit | $ | 1,619 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Purchased software amortization | 116 | |||||||||||||||||||
Other intangibles amortization | 60 | |||||||||||||||||||
Software development costs capitalized | (33 | ) | ||||||||||||||||||
Internally developed software products amortization | 155 | |||||||||||||||||||
Share-based compensation expense | 81 | |||||||||||||||||||
Other expenses (gains), net (1) | 170 | |||||||||||||||||||
Interest expense, net | 54 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,016 | ||||||||||||||||||
-1 | Other expenses (gains), net consists of approximately $168 million of costs associated with the Fiscal 2014 Plan and other miscellaneous costs. | |||||||||||||||||||
Year Ended March 31, 2013 | Mainframe | Enterprise | Services | Total | ||||||||||||||||
(dollars in millions) | Solutions | Solutions | ||||||||||||||||||
Revenue | $ | 2,489 | $ | 1,633 | $ | 382 | $ | 4,504 | ||||||||||||
Expenses | 1,038 | 1,520 | 358 | 2,916 | ||||||||||||||||
Segment profit | $ | 1,451 | $ | 113 | $ | 24 | $ | 1,588 | ||||||||||||
Segment operating margin | 58 | % | 7 | % | 6 | % | 35 | % | ||||||||||||
Depreciation | $ | 63 | $ | 41 | $ | — | $ | 104 | ||||||||||||
Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2013: | ||||||||||||||||||||
Segment profit | $ | 1,588 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Purchased software amortization (1) | 162 | |||||||||||||||||||
Other intangibles amortization | 54 | |||||||||||||||||||
Software development costs capitalized | (152 | ) | ||||||||||||||||||
Internally developed software products amortization | 143 | |||||||||||||||||||
Share-based compensation expense | 77 | |||||||||||||||||||
Other expenses (gains), net | — | |||||||||||||||||||
Interest expense, net | 44 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,260 | ||||||||||||||||||
-1 | Amount includes impairment recorded in fiscal year 2013 of approximately $55 million relating to purchased software (see Note 6, “Long Lived Assets,” in the Notes to the Consolidated Financial Statements for additional information). | |||||||||||||||||||
The following table presents information about the Company by geographic area for fiscal years 2015, 2014 and 2013: | ||||||||||||||||||||
(in millions) | United States | EMEA (1) | Other | Eliminations | Total | |||||||||||||||
Year Ended March 31, 2015 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
From unaffiliated customers | $ | 2,615 | $ | 1,008 | $ | 639 | $ | — | $ | 4,262 | ||||||||||
Between geographic areas (2) | 438 | — | — | (438 | ) | — | ||||||||||||||
Total revenue | $ | 3,053 | $ | 1,008 | $ | 639 | $ | (438 | ) | $ | 4,262 | |||||||||
Property and equipment, net | $ | 112 | $ | 97 | $ | 43 | $ | — | $ | 252 | ||||||||||
Total assets | $ | 8,128 | $ | 1,874 | $ | 977 | $ | — | $ | 10,979 | ||||||||||
Total liabilities | $ | 4,047 | $ | 809 | $ | 498 | $ | — | $ | 5,354 | ||||||||||
Year Ended March 31, 2014 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
From unaffiliated customers | $ | 2,645 | $ | 1,093 | $ | 674 | $ | — | $ | 4,412 | ||||||||||
Between geographic areas (2) | 446 | — | — | (446 | ) | — | ||||||||||||||
Total revenue | $ | 3,091 | $ | 1,093 | $ | 674 | $ | (446 | ) | $ | 4,412 | |||||||||
Property and equipment, net | $ | 125 | $ | 116 | $ | 54 | $ | — | $ | 295 | ||||||||||
Total assets | $ | 8,908 | $ | 2,076 | $ | 1,032 | $ | — | $ | 12,016 | ||||||||||
Total liabilities | $ | 4,919 | $ | 890 | $ | 637 | $ | — | $ | 6,446 | ||||||||||
Year Ended March 31, 2013 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
From unaffiliated customers | $ | 2,679 | $ | 1,106 | $ | 719 | $ | — | $ | 4,504 | ||||||||||
Between geographic areas (2) | 460 | — | — | (460 | ) | — | ||||||||||||||
Total revenue | $ | 3,139 | $ | 1,106 | $ | 719 | $ | (460 | ) | $ | 4,504 | |||||||||
Property and equipment, net | $ | 138 | $ | 108 | $ | 65 | $ | — | $ | 311 | ||||||||||
Total assets | $ | 8,897 | $ | 1,911 | $ | 1,007 | $ | — | $ | 11,815 | ||||||||||
Total liabilities | $ | 4,802 | $ | 939 | $ | 624 | $ | — | $ | 6,365 | ||||||||||
-1 | Consists of Europe, the Middle East and Africa. | |||||||||||||||||||
-2 | Represents royalties from foreign subsidiaries determined as a percentage of certain amounts invoiced to customer. | |||||||||||||||||||
Revenue is allocated to a geographic area based on the location of the sale, which is generally the customer’s country of domicile. No single customer accounted for 10% or more of total revenue for fiscal year 2015, 2014 or 2013. |
Profit_Sharing_Plan
Profit Sharing Plan | 12 Months Ended |
Mar. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Profit Sharing Plan | Note 18 — Profit Sharing Plan |
The Company maintains a defined contribution plan for the benefit of its U.S. employees. The plan is intended to be a tax qualified plan under Section 401(a) of the Internal Revenue Code, and contains a qualified cash or deferred arrangement as described under Section 401(k) of the Internal Revenue Code. Eligible participants may elect to contribute a percentage of their base compensation and the Company may make matching contributions. | |
The Company recognized costs associated with this plan of approximately $38 million, $41 million and $43 million for fiscal years 2015, 2014 and 2013, respectively. Included in these amounts were discretionary stock contributions of approximately $24 million, $26 million and $28 million for fiscal years 2015, 2014 and 2013, respectively. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II | ||||||||||||||||
CA, Inc. and Subsidiaries | |||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||
Description | Balance at Beginning of Period | Additions/(Deductions) Charged/(Credited) to Costs and Expenses | Deductions (1) | Balance at End of Period | |||||||||||||
Allowance for doubtful accounts | |||||||||||||||||
(in millions) | |||||||||||||||||
Year ended March 31, 2015 | $ | 19 | $ | 1 | $ | (3 | ) | $ | 17 | ||||||||
Year ended March 31, 2014 | $ | 24 | $ | 4 | $ | (9 | ) | $ | 19 | ||||||||
Year ended March 31, 2013 | $ | 16 | $ | 9 | $ | (1 | ) | $ | 24 | ||||||||
-1 | Write-off of amounts against allowance provided |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
Description of Business | Description of Business: CA, Inc. and subsidiaries (the Company) develops, markets, delivers and licenses software products and services. | |
Presentation of Financial Statements | Presentation of Financial Statements: The accompanying audited Consolidated Financial Statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (GAAP), as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 205. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, these estimates may ultimately differ from actual results. Significant items subject to such estimates and assumptions include: (i) the useful lives and expected future cash flows of long-lived assets, including capitalized software costs and other intangibles, (ii) allowances for doubtful accounts, (iii) the valuation of derivatives, deferred tax assets and assets acquired in business combinations, (iv) share-based compensation, (v) reserves for employee severance benefit obligations, (vi) income tax uncertainties, (vii) legal contingencies and (viii) the fair value of the Company’s reporting units. | |
Principles of Consolidation | Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its majority-owned and controlled subsidiaries. Investments in affiliates owned 50% or less are accounted for by the equity method. Intercompany balances and transactions have been eliminated in consolidation. Companies acquired during each reporting period are reflected in the results of the Company effective from their respective dates of acquisition through the end of the reporting period. | |
Divestitures | Divestitures: In the second quarter of fiscal year 2015, the Company sold its CA arcserve data protection solution assets (arcserve). In the fourth quarter of fiscal year 2014, the Company identified its CA ERwin Data Modeling solution assets (ERwin) as available for sale. The results of operations associated with these businesses have been presented as discontinued operations in the accompanying Consolidated Statements of Operations and Consolidated Statements of Cash Flows for fiscal years 2015, 2014 and 2013. The effects of the discontinued operations were immaterial to the Company’s Consolidated Balance Sheets at March 31, 2015 and 2014. See Note 3, “Divestitures,” for additional information. | |
Foreign Currencies | Foreign Currencies: In general, the functional currency of the Company’s foreign subsidiaries is the local country's currency. Assets and liabilities of the Company’s foreign subsidiaries are translated using the exchange rates in effect at the balance sheet date. Results of operations are translated using average exchange rates. Adjustments arising from the translation of the foreign currency financial statements of the Company’s subsidiaries into U.S. dollars are reported as currency translation adjustments in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets. | |
Foreign currency transaction (gains) losses were approximately $(14) million, $17 million and $12 million in fiscal years 2015, 2014 and 2013, respectively, and were included in “Other expenses (gains), net” in the Consolidated Statements of Operations in the period in which they occurred. For fiscal years 2015 and 2014, other expenses (gains), net included foreign currency transaction losses of approximately $14 million and $6 million, respectively, relating to the remeasurement of monetary assets and liabilities of the Company's Venezuelan subsidiary. These losses arose from the Company's use of the foreign currency exchange system in effect for Venezuela at March 31, 2015 and 2014, respectively. | ||
Revenue Recognition | Revenue Recognition: The Company begins to recognize revenue from software licensing and maintenance when all of the following criteria are met: (1) the Company has evidence of an arrangement with a customer; (2) the Company delivers the specified products; (3) license agreement terms are fixed or determinable and free of contingencies or uncertainties that may alter the agreement such that it may not be complete and final; and (4) collection is probable. Revenue is recorded net of applicable sales taxes. | |
The Company’s software licenses generally do not include acceptance provisions. An acceptance provision allows a customer to test the software for a defined period of time before committing to license the software. If a license agreement includes an acceptance provision, the Company does not recognize revenue until the earlier of the receipt of a written customer acceptance or when the acceptance right lapses. The Company’s standard licensing agreements include a product warranty provision for all products. The likelihood that the Company will be required to make refunds to customers under such provisions is considered remote. | ||
Subscription and Maintenance Revenue: Software licenses that include the right to receive unspecified future software products are considered subscription arrangements under GAAP and are recognized ratably over the term of the license agreement. Subscription and maintenance revenue is the amount of revenue recognized ratably during the reporting period from either: (i) software usage fees and product sales that include subscription 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 with elements (i.e., maintenance or professional services) for which vendor specific objective evidence (VSOE) has not been established. Revenue for these arrangements is recognized ratably over the term of the subscription or maintenance term. | ||
Professional Services: Revenue from professional services arrangements is generally recognized as the services are performed. Revenue and costs from committed professional services that are sold as part of a subscription license agreement are deferred and recognized on a ratable basis over the term of the related software license. VSOE of professional services is established based on hourly rates when sold on a stand-alone basis. If it is not probable that a project will be completed or the payment will be received, revenue recognition is deferred until the uncertainty is removed. | ||
Software Fees and Other: Software fees and other revenue consists primarily of revenue from the sale of perpetual software licenses that do not include the right to unspecified software products (i.e., a subscription agreement) sold on a stand-alone basis or in a bundled arrangement where VSOE exists for all undelivered elements, and revenue from Software-as-a-Service. For bundled arrangements that include either maintenance or both maintenance and professional services, the Company uses the residual method to determine the amount of license revenue to be recognized. Under the residual method, consideration is allocated to undelivered elements based upon VSOE of those elements, with the residual of the arrangement fee allocated to and recognized as license revenue. The Company determines VSOE of maintenance, depending on the product, from either contractually stated renewal rates or the bell-shaped curve method. | ||
In the event that agreements with the Company’s customers are executed in close proximity of the other software license agreements with the same customer, the Company evaluates whether the separate arrangements are linked, and, if so, the agreements are considered a single multi-element arrangement for which revenue is recognized ratably as subscription and maintenance revenue or, in the case of a professional services arrangement that is linked to a subscription-based software license, as professional services revenue, in the Consolidated Statements of Operations. | ||
Sales Commissions | Sales Commissions: Sales commissions are recognized in the period the commissions are earned by employees, which is typically upon signing of the contract. Under the Company’s sales commissions policy, the amount of sales commissions expense attributable to the license agreements signed in the period is recognized fully, but the revenue from the license agreements may be recognized ratably over the subscription and maintenance term. | |
Accounting for Share-Based Compensation | Accounting for Share-Based Compensation: Share-based awards exchanged for employee services are accounted for under the fair value method. Accordingly, share-based compensation cost is measured at the grant date based on the fair value of the award. The expense for awards expected to vest is recognized over the employee’s requisite service period (generally the vesting period of the award). Awards expected to vest are estimated based on a combination of historical experience and future expectations. | |
The Company has elected to treat awards with only service conditions and with graded vesting as one award. Consequently, the total compensation expense is recognized straight-line over the entire vesting period, so long as the compensation cost recognized at any date at least equals the portion of the grant date fair value of the award that is vested at that date. | ||
The Company uses the Black-Scholes option-pricing model to compute the estimated fair value of share-based awards in the form of options. The Black-Scholes model includes assumptions regarding dividend yields, expected volatility, expected term of the option and risk-free interest rates. | ||
In addition to stock options, restricted share awards (RSAs) and restricted share units (RSUs) with time-based vesting, the Company issues performance share units (PSUs). Compensation costs for the PSUs are amortized over the requisite service periods based on the expected level of achievement of the performance targets. At the conclusion of the performance periods, the applicable number of shares of RSAs, RSUs or unrestricted shares granted may vary based on the level of achievement of the performance targets. Additionally, the grants are subject to the approval of the Company’s Compensation and Human Resources Committee of the Board of Directors (the Compensation Committee), which has discretion to reduce any award for any reason. The value of the PSU awards is remeasured each reporting period until the Compensation Committee approves attainment of the specified performance targets, at which time a grant date is deemed to have been achieved for accounting purposes, the value of the award is fixed and any remaining unrecognized compensation expense is recognized over the remaining time-based vesting period. See Note 14, “Stock Plans,” for additional information. | ||
Net Income Per Common Share | Net Income Per Common Share: Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of net income per share under the two-class method. Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed income is then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic net income per common share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted net income per common share is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding at the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. See Note 13, “Income from Continuing Operations Per Common Share,” for additional information. | |
Concentration of Credit Risk | Concentration of Credit Risk: Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents, investments, derivatives and accounts receivable. The Company historically has not experienced any material losses in its cash and cash equivalent or investment portfolios. | |
Amounts included in accounts receivable expected to be collected from customers, as disclosed in Note 5, “Trade Accounts Receivable,” have limited exposure to concentration of credit risk due to the diverse customer base and geographic areas covered by operations. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents: All financial instruments purchased with an original maturity of three months or less at the time of purchase are considered cash equivalents. The Company’s cash and cash equivalents are held by its subsidiaries throughout the world, frequently in each subsidiary’s respective functional currency which may not be the U.S. dollar. Approximately 69% and 61% of cash and cash equivalents were maintained outside the United States at March 31, 2015 and 2014, respectively. | |
Total interest income, which primarily relates to the Company’s cash and cash equivalent balances and investments, for fiscal years 2015, 2014 and 2013 was approximately $30 million, $21 million and $20 million, respectively, and is included in “Interest expense, net” in the Consolidated Statements of Operations. | ||
Fair Value Measurements | Fair Value Measurements: Fair value is the price that would be received for an asset or the amount paid to transfer a liability in an orderly transaction between market participants. The Company is required to classify certain assets and liabilities based on the following fair value hierarchy: | |
• | Level 1: Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; | |
• | Level 2: Quoted prices for identical assets and liabilities in markets that are not active, or quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and | |
• | Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. | |
See Note 10, “Fair Value Measurements,” for additional information. | ||
Impairment of Long-Lived Assets, Excluding Goodwill and Other Intangibles | Impairment of Long-Lived Assets, Excluding Goodwill and Other Intangibles: Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models or, when available, quoted market values and third-party appraisals. | |
Property and Equipment | Property and Equipment: Property and equipment are stated at cost. Depreciation and amortization expense is calculated based on the estimated useful lives of the assets, and is recognized by using the straight-line method. Building and improvements are generally estimated to have 5 to 39 year lives, and the remaining property and equipment are generally estimated to have 3 to 7 year lives. | |
Internally Developed Software Products | Internally Developed Software Products: Internally developed software products, which are included in "Capitalized software and other intangible assets, net" in the Consolidated Balance Sheets, consist of capitalized costs associated with the development of computer software to be sold, leased or otherwise marketed. Software development costs associated with new products and significant enhancements to existing software products are expensed as incurred until technological feasibility, as defined in FASB ASC Topic 985-20, has been established. Costs incurred thereafter are capitalized until the product is made generally available. The stage during the Company's development process for a new product or new release at which technological feasibility requirements are established affects the amount of costs capitalized. | |
Annual amortization of internally developed software products is the greater of the amount computed using the ratio that current gross 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 to customers. The Company generally recognizes amortization expense for capitalized software costs using the straight-line method, and such amortization is included in “Amortization of capitalized software costs” in the Consolidated Statements of Operations. Internally developed software products are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||
Purchased Software Products | Purchased Software Products: Purchased software products, which is included in "Capitalized software and other intangible assets, net" in the Consolidated Balance Sheets, consist primarily of the cost of software technology acquired in business combinations. The cost of such products is equal to the fair value of the acquired software technology at the acquisition date. Annual amortization of purchased software products is the greater of the amount computed using the ratio that current gross 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. The Company generally amortizes capitalized software costs using the straight-line method over their remaining economic lives, estimated to be between 2 and 10 years from the date of acquisition, and such amortization is included in “Amortization of capitalized software costs” in the Consolidated Statements of Operations. Purchased software products are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |
Other Intangible Assets | Other Intangible Assets: Other intangible assets, which is included in "Capitalized software and other intangible assets, net" in the Consolidated Balance Sheets, consist of customer relationships and trademarks/trade names. The Company generally amortizes all other intangible assets using the straight-line method over their remaining economic lives, estimated to be between 2 and 12 years from the date of acquisition, and such amortization is included in "Depreciation and amortization of other intangible assets" in the Consolidated Statements of Operations. Other intangible assets subject to amortization are reviewed for impairment quarterly and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | |
Goodwill | Goodwill: Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with business combinations accounted for using the purchase method of accounting. Goodwill is not amortized, but instead goodwill is required to be tested for impairment annually and under certain circumstances. The Company reviews goodwill for impairment on an annual basis on the first day of the fourth quarter of each fiscal year, and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable, at the reporting unit level. The Company's reporting units are the same as its operating segments. | |
When evaluating goodwill for impairment, based upon the Company's annual test or due to changes in circumstances described above, the Company first can opt to perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50 percent) less than the reporting unit's carrying amount, including goodwill, or it can directly perform the two-step impairment test. This qualitative assessment includes, among other things, consideration of: (i) identifying inputs and assumptions that most affect fair value; (ii) identifying relevant events and circumstances that may have an impact on those inputs and assumptions; (iii) weighing the events and circumstances; and (iv) concluding on the totality of events and circumstances. If this assessment indicates that the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not considered impaired and the Company is not required to perform further testing. However, if the fair value of a reporting unit is more likely than not to be less than its carrying amount, the two-step impairment test will be performed. | ||
When performing the two-step impairment test, the Company first determines the estimated fair value of its reporting units based on use of the income and market approaches. Under the income approach, the Company calculates the estimated fair value of a reporting unit based on the present value of estimated future cash flows. If the carrying value of the reporting unit exceeds the estimated fair value, the Company then calculates the implied fair value of goodwill for the reporting unit and compares it to the carrying amount of goodwill for the reporting unit. If the carrying amount of goodwill exceeds the implied fair value, an impairment charge is recorded to its statement of operations to reduce the carrying value to implied value. | ||
Significant judgments and estimates are required in determining the reporting units and assessing the fair value of the reporting units. These estimates and assumptions are complex and subject to a significant degree of judgment with respect to certain factors including, but not limited to, revenue growth rates and operating profit margins that are used to project future cash flows, discount rates, future economic and market conditions and determination of appropriate market comparables. The Company makes certain judgments and assumptions in allocating shared costs among reporting units. The Company bases its fair value estimates on assumptions that are consistent with information used by the business for planning purposes and that it believes to be reasonable; however, actual future results may differ from those estimates. Changes in judgments on any of these factors could materially affect the value of the reporting unit. | ||
See Note 6, “Long-Lived Assets,” for additional information. | ||
Restricted Cash | Restricted Cash: The total amount of restricted cash at March 31, 2015 and 2014 was approximately $1 million and $2 million, respectively, and is included in “Other noncurrent assets, net” in the Consolidated Balance Sheets. During the fourth quarter of fiscal year 2014, the Company was granted approval to reduce the minimum restricted cash balance of its insurance subsidiary from $50 million to $250,000. As result, the Company reclassified approximately $50 million from “Other noncurrent assets, net” to “Cash and cash equivalents” in the Consolidated Balance Sheet at March 31, 2014. The reduction in the restricted cash balance was a source of investing cash inflows in the Consolidated Statement of Cash Flows for the year ended March 31, 2014. In addition to this restricted cash balance, the Company has other restricted cash balances, including cash collateral for letters of credit. | |
Income Taxes | Income Taxes: Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date. | |
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties related to uncertain tax positions in income tax expense. See Note 15, “Income Taxes,” for additional information. | ||
Deferred Revenue (Billed or Collected) | Deferred Revenue (Billed or Collected): The Company accounts for unearned revenue on billed amounts due from customers on a gross basis. Unearned revenue on billed installments (collected or uncollected) is reported as deferred revenue in the liability section of the Company's Consolidated Balance Sheets. | |
Deferred revenue (billed or collected) excludes unbilled contractual commitments executed under license and maintenance agreements that will be billed in future periods. See Note 7, “Deferred Revenue,” for additional information. | ||
Advertising | Advertising: Advertising costs are expensed as incurred. Advertising expense was approximately $39 million, $38 million and $10 million for fiscal years 2015, 2014 and 2013, respectively. | |
Litigation | Litigation: The Company records a provision with respect to a claim, suit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and proceedings are reviewed at least quarterly and provisions are taken or adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. See Note 11, “Commitments and Contingencies,” for additional information. | |
Other Matters | Other Matters: In fiscal year 2013, the Company closed a transaction that assigned the rights to certain of the Company’s intellectual property assets to a large technology company for $35 million. The entire contract amount is included in the “Other expenses (gains), net” line item of the Company’s Consolidated Statement of Operations for the year ended March 31, 2013. | |
New Accounting Pronouncements | New Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. In April 2015, the FASB proposed a one-year deferral of the effective date of the new revenue recognition standard. If finalized as proposed, the new guidance will be effective for the Company's first quarter of fiscal year 2019 and early application would be permitted. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. ASU 2014-09 is expected to have a significant impact on the Company’s revenue recognition policies and disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. | |
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (Topic 835), which changes the required presentation of debt issuance costs from an asset on the balance sheet to a deduction from the related debt liability. This guidance will be effective for the Company in its first quarter of fiscal year 2017. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements. | ||
FASB ASC Topic 280 | In accordance with FASB ASC Topic 280, “Segment Reporting,” the Company disaggregates its operations into Mainframe Solutions, Enterprise Solutions and Services segments, which is utilized by the Chief Operating Decision Maker, who is the Company's Chief Executive Officer, for evaluating segment performance and allocating resources. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Business Combinations [Abstract] | |||||||
Purchase price allocation and estimated useful lives | The purchase price allocation as of March 31, 2014 was as follows: | ||||||
(dollars in millions) | Layer 7 | Estimated | |||||
Useful Life | |||||||
Finite-lived intangible assets (1) | $ | 26 | 3 years | ||||
Purchased software | 87 | 5 years | |||||
Goodwill | 55 | Indefinite | |||||
Deferred tax liabilities | (13 | ) | — | ||||
Other assets net of other liabilities assumed (2) | — | — | |||||
Purchase price | $ | 155 | |||||
-1 | Includes customer relationships and trade names. | ||||||
-2 | Includes approximately $9 million of cash acquired. |
Divestitures_Tables
Divestitures (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Income from discontinued operations | The income from discontinued operations relating to both ERwin and the sale of arcserve for fiscal years 2015, 2014 and 2013 consisted of the following: | |||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Subscription and maintenance | $ | 43 | $ | 88 | $ | 94 | ||||||
Software fees and other | 19 | 47 | 45 | |||||||||
Total revenue | $ | 62 | $ | 135 | $ | 139 | ||||||
Income from operations of discontinued components, net of tax expense of $10 million, $19 million and $24 million, respectively | $ | 16 | $ | 27 | $ | 34 | ||||||
Gain on disposal of discontinued component, net of tax | 20 | — | — | |||||||||
Income from discontinued operations, net of tax | $ | 36 | $ | 27 | $ | 34 | ||||||
Severance_and_Exit_Costs_Table
Severance and Exit Costs (Tables) | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Accrued severance and exit costs activity | Accrued severance and exit costs and changes in the accruals for fiscal years 2015, 2014 and 2013 were as follows: | |||||||||||||||||||||||
(in millions) | Accrued Balance at March 31, 2014 | Expense | Change in | Payments | Accretion | Accrued Balance at March 31, 2015 | ||||||||||||||||||
Estimate | and Other | |||||||||||||||||||||||
Severance charges | $ | 55 | $ | 60 | $ | (7 | ) | $ | (77 | ) | $ | (3 | ) | $ | 28 | |||||||||
Facility exit charges | 29 | — | — | (9 | ) | 1 | 21 | |||||||||||||||||
Total accrued liabilities | $ | 84 | $ | 49 | ||||||||||||||||||||
(in millions) | Accrued Balance at March 31, 2013 | Expense | Change in | Payments | Accretion | Accrued Balance at March 31, 2014 | ||||||||||||||||||
Estimate | and Other | |||||||||||||||||||||||
Severance charges | $ | 16 | $ | 160 | $ | (12 | ) | $ | (113 | ) | $ | 4 | $ | 55 | ||||||||||
Facility exit charges | 23 | 22 | — | (13 | ) | (3 | ) | 29 | ||||||||||||||||
Total accrued liabilities | $ | 39 | $ | 84 | ||||||||||||||||||||
(in millions) | Accrued Balance at March 31, 2012 | Expense | Change in | Payments | Accretion | Accrued Balance at March 31, 2013 | ||||||||||||||||||
Estimate | and Other | |||||||||||||||||||||||
Severance charges | $ | 13 | $ | 18 | $ | (6 | ) | $ | (9 | ) | $ | — | $ | 16 | ||||||||||
Facility exit charges | 40 | — | — | (13 | ) | (4 | ) | 23 | ||||||||||||||||
Total accrued liabilities | $ | 53 | $ | 39 | ||||||||||||||||||||
Trade_Accounts_Receivable_Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Receivables [Abstract] | ||||||||
Components of trade accounts receivable, net | The components of “Trade accounts receivable, net” were as follows: | |||||||
At March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Accounts receivable – billed | $ | 591 | $ | 739 | ||||
Accounts receivable – unbilled | 63 | 61 | ||||||
Other receivables | 15 | 19 | ||||||
Less: Allowances | (17 | ) | (19 | ) | ||||
Trade accounts receivable, net | $ | 652 | $ | 800 | ||||
LongLived_Assets_Tables
Long-Lived Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Long-Lived Assets [Abstract] | ||||||||||||||||||||
Property and equipment | A summary of property and equipment was as follows: | |||||||||||||||||||
At March 31. | ||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||
Land and buildings | $ | 190 | $ | 222 | ||||||||||||||||
Equipment, software developed for internal use, furniture and leasehold improvements | 874 | 901 | ||||||||||||||||||
1,064 | 1,123 | |||||||||||||||||||
Accumulated depreciation and amortization | (812 | ) | (828 | ) | ||||||||||||||||
Property and equipment, net | $ | 252 | $ | 295 | ||||||||||||||||
Capitalized software and other intangible assets | The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2015 were as follows: | |||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||
(in millions) | Gross | Less: Fully | Remaining | Accumulated | Net | |||||||||||||||
Amortizable | Amortized | Amortizable | Amortization | Assets | ||||||||||||||||
Assets | Assets | Assets | on Remaining | |||||||||||||||||
Amortizable | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Purchased software products | $ | 5,717 | $ | 4,859 | $ | 858 | $ | 413 | $ | 445 | ||||||||||
Internally developed software products | 1,486 | 835 | 651 | 414 | 237 | |||||||||||||||
Other intangible assets | 836 | 556 | 280 | 231 | 49 | |||||||||||||||
Total capitalized software and other intangible assets | $ | 8,039 | $ | 6,250 | $ | 1,789 | $ | 1,058 | $ | 731 | ||||||||||
The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at March 31, 2014 were as follows: | ||||||||||||||||||||
At March 31, 2014 | ||||||||||||||||||||
(in millions) | Gross | Less: Fully | Remaining | Accumulated | Net | |||||||||||||||
Amortizable | Amortized | Amortizable | Amortization | Assets | ||||||||||||||||
Assets | Assets | Assets | on Remaining | |||||||||||||||||
Amortizable | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Purchased software products | $ | 5,706 | $ | 4,849 | $ | 857 | $ | 309 | $ | 548 | ||||||||||
Internally developed software products | 1,561 | 757 | 804 | 397 | 407 | |||||||||||||||
Other intangible assets | 846 | 489 | 357 | 249 | 108 | |||||||||||||||
Total capitalized software and other intangible assets | $ | 8,113 | $ | 6,095 | $ | 2,018 | $ | 955 | $ | 1,063 | ||||||||||
Depreciation and amortization expense | A summary of depreciation and amortization expense was as follows: | |||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||||||||||
Depreciation | $ | 71 | $ | 84 | $ | 104 | ||||||||||||||
Amortization of purchased software products | 124 | 116 | 162 | |||||||||||||||||
Amortization of internally developed software products | 149 | 155 | 143 | |||||||||||||||||
Amortization of other intangible assets | 58 | 60 | 54 | |||||||||||||||||
Total depreciation and amortization expense | $ | 402 | $ | 415 | $ | 463 | ||||||||||||||
Expected annual amortization expense over next five fiscal years | Based on the capitalized software and other intangible assets recognized at March 31, 2015, the annual amortization expense over the next five fiscal years is expected to be as follows: | |||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||
(in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | |||||||||||||||
Purchased software products | $ | 110 | $ | 109 | $ | 106 | $ | 65 | $ | 46 | ||||||||||
Internally developed software products | 109 | 79 | 37 | 10 | 1 | |||||||||||||||
Other intangible assets | 37 | 9 | 2 | 1 | — | |||||||||||||||
Total | $ | 256 | $ | 197 | $ | 145 | $ | 76 | $ | 47 | ||||||||||
Goodwill activity by segment | Goodwill activity by segment for fiscal years 2015 and 2014 was as follows: | |||||||||||||||||||
(in millions) | Mainframe Solutions | Enterprise Solutions | Services | Total | ||||||||||||||||
Balance at March 31, 2013 | $ | 4,178 | $ | 1,605 | $ | 81 | $ | 5,864 | ||||||||||||
Acquisitions | — | 55 | — | 55 | ||||||||||||||||
Foreign currency translation adjustment | — | 3 | — | 3 | ||||||||||||||||
Balance at March 31, 2014 | $ | 4,178 | $ | 1,663 | $ | 81 | $ | 5,922 | ||||||||||||
Divestitures | $ | — | $ | (109 | ) | $ | — | $ | (109 | ) | ||||||||||
Foreign currency translation adjustment | — | (7 | ) | — | (7 | ) | ||||||||||||||
Balance at March 31, 2015 | 4,178 | 1,547 | 81 | 5,806 | ||||||||||||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 12 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deferred Revenue Disclosure [Abstract] | ||||||||
Components of deferred revenue (billed or collected) | The current and noncurrent components of “Deferred revenue (billed or collected)” at March 31, 2015 and March 31, 2014 were as follows: | |||||||
At March 31, | ||||||||
(in millions) | 2015 | 2014 | ||||||
Current: | ||||||||
Subscription and maintenance | $ | 1,966 | $ | 2,237 | ||||
Professional services | 115 | 149 | ||||||
Software fees and other | 33 | 33 | ||||||
Total deferred revenue (billed or collected) – current | $ | 2,114 | $ | 2,419 | ||||
Noncurrent: | ||||||||
Subscription and maintenance | $ | 832 | $ | 845 | ||||
Professional services | 28 | 26 | ||||||
Software fees and other | 3 | 1 | ||||||
Total deferred revenue (billed or collected) – noncurrent | $ | 863 | $ | 872 | ||||
Total deferred revenue (billed or collected) | $ | 2,977 | $ | 3,291 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||
Debt obligations | At March 31, 2015 and 2014, the Company’s debt obligations consisted of the following: | |||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||
Revolving credit facility | $ | — | $ | — | ||||||||||||||||||||
5.375% Senior Notes due December 2019 | 750 | 750 | ||||||||||||||||||||||
6.125% Senior Notes due December 2014, net of unamortized premium from fair value hedge of $8 at March 31, 2014 | — | 508 | ||||||||||||||||||||||
2.875% Senior Notes due August 2018 | 250 | 250 | ||||||||||||||||||||||
4.500% Senior Notes due August 2023 | 250 | 250 | ||||||||||||||||||||||
Other indebtedness, primarily capital leases | 17 | 13 | ||||||||||||||||||||||
Unamortized discount for Senior Notes | (4 | ) | (5 | ) | ||||||||||||||||||||
Total debt outstanding | $ | 1,263 | $ | 1,766 | ||||||||||||||||||||
Less the current portion | (10 | ) | (514 | ) | ||||||||||||||||||||
Total long-term debt portion | $ | 1,253 | $ | 1,252 | ||||||||||||||||||||
Maturities of outstanding debt | The maturities of outstanding debt are as follows: | |||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||
(in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||||||||
Amount due | $ | 10 | $ | 5 | $ | 1 | $ | 250 | $ | 748 | $ | 249 | ||||||||||||
Rates applicable to revolving credit facility | At March 31, 2015 and 2014, there were no outstanding borrowings under the revolving credit facility and, based on the Company’s credit ratings, the rates applicable to the facility at March 31, 2015 and 2014 were as follows: | |||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
Applicable margin on Base Rate borrowing | 0.125 | % | 0.125 | % | ||||||||||||||||||||
Weighted average interest rate on outstanding borrowings | — | % | — | % | ||||||||||||||||||||
Applicable margin on Eurocurrency Rate borrowing | 1 | % | 1 | % | ||||||||||||||||||||
Facility commitment fee | 0.125 | % | 0.125 | % | ||||||||||||||||||||
Notional pooling arrangement | At March 31, 2015 and 2014, the borrowings outstanding under this notional pooling arrangement, and changes therein, were as follows: | |||||||||||||||||||||||
At March 31, | ||||||||||||||||||||||||
(in millions) | 2015 | 2014 | ||||||||||||||||||||||
Total borrowings outstanding at beginning of year (1) | $ | 139 | $ | 136 | ||||||||||||||||||||
Borrowings | 5,371 | 3,702 | ||||||||||||||||||||||
Repayments | (5,207 | ) | (3,734 | ) | ||||||||||||||||||||
Foreign exchange effect | (165 | ) | 35 | |||||||||||||||||||||
Total borrowings outstanding at end of year (1) | $ | 138 | $ | 139 | ||||||||||||||||||||
-1 | Included in “Accrued expenses and other current liabilities” in the Company’s Consolidated Balance Sheets. |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||
Effect of interest rate and foreign exchange derivatives on Consolidated Statements of Operations | A summary of the effect of the interest rate and foreign exchange derivatives on the Company’s Consolidated Statements of Operations was as follows: | |||||||||||
Amount of Net (Gain)/Loss Recognized in the | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
Location of Amounts Recognized | Year Ended March 31, | |||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Interest expense, net – interest rate swaps designated as fair value hedges | $ | (8 | ) | $ | (12 | ) | $ | (12 | ) | |||
Other expenses (gains), net – foreign currency contracts | $ | (31 | ) | $ | (20 | ) | $ | 11 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis at March 31, 2015 and 2014: | |||||||||||||||||||||||
At March 31, 2015 | At March 31, 2014 | |||||||||||||||||||||||
Fair Value | Estimated | Fair Value | Estimated | |||||||||||||||||||||
Measurement Using | Fair | Measurement Using | Fair | |||||||||||||||||||||
Input Types | Value | Input Types | Value | |||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Money market funds (1) | $ | 749 | $ | — | $ | 749 | $ | 1,277 | $ | — | $ | 1,277 | ||||||||||||
Foreign exchange derivatives (2) | — | 5 | 5 | — | 2 | 2 | ||||||||||||||||||
Interest rate derivatives (2) | — | — | — | — | 8 | 8 | ||||||||||||||||||
Total assets | $ | 749 | $ | 5 | $ | 754 | $ | 1,277 | $ | 10 | $ | 1,287 | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Foreign exchange derivatives (2) | $ | — | $ | 3 | $ | 3 | $ | — | $ | 1 | $ | 1 | ||||||||||||
Total liabilities | $ | — | $ | 3 | $ | 3 | $ | — | $ | 1 | $ | 1 | ||||||||||||
-1 | The Company's investments in money market funds are classified as “Cash and cash equivalents” in its Consolidated Balance Sheets. | |||||||||||||||||||||||
-2 | See Note 9, “Derivatives” for additional information. Interest rate derivatives fair value excludes accrued interest. | |||||||||||||||||||||||
Carrying amounts and estimated fair values of other financial instruments not measured at fair value on a recurring basis | The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments that were not measured at fair value on a recurring basis at March 31, 2015 and 2014: | |||||||||||||||||||||||
At March 31, 2015 | At March 31, 2014 | |||||||||||||||||||||||
(in millions) | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Total debt (1) | $ | 1,263 | $ | 1,376 | $ | 1,766 | $ | 1,884 | ||||||||||||||||
Facility exit reserve (2) | $ | 21 | $ | 23 | $ | 29 | $ | 33 | ||||||||||||||||
-1 | Estimated fair value of total debt is based on quoted prices for similar liabilities for which significant inputs are observable except for certain long-term lease obligations, for which fair value approximates carrying value (Level 2). | |||||||||||||||||||||||
-2 | Estimated fair value for the facility exit reserve is determined using the Company’s incremental borrowing rate at March 31, 2015 and 2014. At March 31, 2015 and 2014, the facility exit reserve included approximately $4 million and $11 million, respectively, in “Accrued expenses and other current liabilities” and approximately $17 million and $18 million, respectively, in “Other noncurrent liabilities” in the Company’s Consolidated Balance Sheets (Level 3). |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Mar. 31, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future minimum lease payments under non-cancelable operating leases | Future minimum lease payments under non-cancelable operating leases, including facilities exited as part of the Company's Fiscal 2014 Plan and previous restructuring plans and actions, at March 31, 2015 were as follows: | |||
Fiscal Year | (in millions) | |||
2016 | $ | 80 | ||
2017 | 71 | |||
2018 | 64 | |||
2019 | 52 | |||
2020 | 47 | |||
Thereafter | 85 | |||
Total | $ | 399 | ||
Less income from sublease | (23 | ) | ||
Net minimum operating lease payments | $ | 376 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Cash dividends | The Company’s Board of Directors declared the following dividends during fiscal years 2015 and 2014: | ||||||||
Year Ended March 31, 2015: | |||||||||
(in millions, except per share amounts) | |||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | |||||
May 15, 2014 | $0.25 | May 29, 2014 | $111 | June 17, 2014 | |||||
July 31, 2014 | $0.25 | August 21, 2014 | $111 | September 9, 2014 | |||||
November 6, 2014 | $0.25 | November 20, 2014 | $111 | December 9, 2014 | |||||
February 5, 2015 | $0.25 | February 19, 2015 | $111 | March 17, 2015 | |||||
Year Ended March 31, 2014: | |||||||||
(in millions, except per share amounts) | |||||||||
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | |||||
May 9, 2013 | $0.25 | May 23, 2013 | $114 | June 11, 2013 | |||||
August 1, 2013 | $0.25 | August 22, 2013 | $114 | September 10, 2013 | |||||
November 6, 2013 | $0.25 | November 21, 2013 | $113 | December 10, 2013 | |||||
February 5, 2014 | $0.25 | February 20, 2014 | $112 | March 18, 2014 |
Income_from_Continuing_Operati1
Income from Continuing Operations Per Common Share (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Reconciliation of basic and diluted income from continuing operations per common share | The following table presents basic and diluted income from continuing operations per common share information for fiscal years 2015, 2014 and 2013, respectively: | |||||||||||
Year Ended March 31, | ||||||||||||
(in millions, except per share amounts) | 2015 | 2014 | 2013 | |||||||||
Basic income from continuing operations per common share: | ||||||||||||
Income from continuing operations | $ | 810 | $ | 887 | $ | 921 | ||||||
Less: Income from continuing operations allocable to participating securities | (8 | ) | (9 | ) | (11 | ) | ||||||
Income from continuing operations allocable to common shares | $ | 802 | $ | 878 | $ | 910 | ||||||
Weighted average common shares outstanding | 439 | 446 | 456 | |||||||||
Basic income from continuing operations per common share | $ | 1.83 | $ | 1.97 | $ | 2 | ||||||
Diluted income from continuing operations per common share: | ||||||||||||
Income from continuing operations | $ | 810 | $ | 887 | $ | 921 | ||||||
Less: Income from continuing operations allocable to participating securities | (8 | ) | (9 | ) | (11 | ) | ||||||
Income from continuing operations allocable to common shares | $ | 802 | $ | 878 | $ | 910 | ||||||
Weighted average shares outstanding and common share equivalents: | ||||||||||||
Weighted average common shares outstanding | 439 | 446 | 456 | |||||||||
Weighted average effect of share-based payment awards | 2 | 2 | 1 | |||||||||
Denominator in calculation of diluted income per share | 441 | 448 | 457 | |||||||||
Diluted income from continuing operations per common share | $ | 1.82 | $ | 1.96 | $ | 1.99 | ||||||
Stock_Plans_Tables
Stock Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||
Recognized share-based compensation | The Company recognized share-based compensation in the following line items in the Consolidated Statements of Operations for the periods indicated: | |||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Costs of licensing and maintenance | $ | 5 | $ | 4 | $ | 3 | ||||||||||||||||||||
Cost of professional services | 4 | 4 | 4 | |||||||||||||||||||||||
Selling and marketing | 30 | 28 | 30 | |||||||||||||||||||||||
General and administrative | 29 | 26 | 23 | |||||||||||||||||||||||
Product development and enhancements | 19 | 19 | 17 | |||||||||||||||||||||||
Share-based compensation expense before tax | $ | 87 | $ | 81 | $ | 77 | ||||||||||||||||||||
Income tax benefit | (28 | ) | (26 | ) | (25 | ) | ||||||||||||||||||||
Net share-based compensation expense | $ | 59 | $ | 55 | $ | 52 | ||||||||||||||||||||
Unrecognized share-based compensation costs | The following table summarizes information about unrecognized share-based compensation costs at March 31, 2015: | |||||||||||||||||||||||||
Unrecognized Share-Based Compensation Costs | Weighted Average Period Expected to be Recognized | |||||||||||||||||||||||||
(in millions) | (in years) | |||||||||||||||||||||||||
Stock option awards | $ | 6 | 1.8 | |||||||||||||||||||||||
Restricted stock units | 16 | 1.9 | ||||||||||||||||||||||||
Restricted stock awards | 55 | 1.9 | ||||||||||||||||||||||||
Performance share units | 23 | 2.3 | ||||||||||||||||||||||||
Total unrecognized share-based compensation costs | $ | 100 | 2 | |||||||||||||||||||||||
Options outstanding vested and expected to vest | At March 31, 2015, options outstanding that have vested and are expected to vest were as follows: | |||||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (1) | |||||||||||||||||||||||
(in millions) | (in years) | (in millions) | ||||||||||||||||||||||||
Vested | 1.2 | $ | 25.92 | 6.7 | $ | 7.8 | ||||||||||||||||||||
Expected to vest (2) | 1.8 | 27.56 | 7.9 | 9.1 | ||||||||||||||||||||||
Total | 3 | $ | 26.92 | 7.4 | $ | 16.9 | ||||||||||||||||||||
-1 | These amounts represent the difference between the exercise price and $32.61, the closing price of the Company’s common stock on March 31, 2015, the last trading day of the Company’s fiscal year as reported on the NASDAQ Stock Market for all in-the-money options. | |||||||||||||||||||||||||
-2 | Outstanding options expected to vest are net of estimated future forfeitures. | |||||||||||||||||||||||||
Stock option activity | ||||||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Outstanding at March 31, 2012 | 5.8 | $ | 23.52 | |||||||||||||||||||||||
Granted | 1.8 | 24.39 | ||||||||||||||||||||||||
Exercised | (1.2 | ) | 17.17 | |||||||||||||||||||||||
Expired or terminated | (0.4 | ) | 22.09 | |||||||||||||||||||||||
Outstanding at March 31, 2013 | 6 | $ | 25.17 | |||||||||||||||||||||||
Granted | 1.7 | 27.86 | ||||||||||||||||||||||||
Exercised | (3.5 | ) | 25.06 | |||||||||||||||||||||||
Expired or terminated | (0.5 | ) | 25.95 | |||||||||||||||||||||||
Outstanding at March 31, 2014 | 3.7 | $ | 26.13 | |||||||||||||||||||||||
Granted | 0.9 | 29.13 | ||||||||||||||||||||||||
Exercised | (0.9 | ) | 25.46 | |||||||||||||||||||||||
Expired or terminated | (0.5 | ) | 26.81 | |||||||||||||||||||||||
Outstanding at March 31, 2015 | 3.2 | $ | 27.02 | |||||||||||||||||||||||
Options exercisable | ||||||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Options exercisable at: | ||||||||||||||||||||||||||
March 31, 2013 | 3.7 | $ | 26.18 | |||||||||||||||||||||||
March 31, 2014 | 0.7 | $ | 26.07 | |||||||||||||||||||||||
March 31, 2015 | 1.2 | $ | 25.92 | |||||||||||||||||||||||
Summary of stock option information by exercise price range | The following table summarizes stock option information at March 31, 2015: | |||||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||||||
Range of Exercise Prices | Shares | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Shares | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | ||||||||||||||||||
(in millions) | (in millions) | (in years) | (in millions) | (in millions) | (in years) | |||||||||||||||||||||
$19.93 — $25.00 | 0.9 | $ | 7.9 | 6.8 | $ | 23.56 | 0.6 | $ | 5.2 | 7 | $ | 23.46 | ||||||||||||||
$25.01 — $30.00 | 1.5 | 8.1 | 7.7 | 27.31 | 0.4 | 2.2 | 6.9 | 26.5 | ||||||||||||||||||
$30.01 — over | 0.8 | 1.6 | 7.9 | 30.52 | 0.2 | 0.4 | 5.6 | 31.05 | ||||||||||||||||||
3.2 | $ | 17.6 | 7.5 | $ | 27.02 | 1.2 | $ | 7.8 | 6.7 | $ | 25.92 | |||||||||||||||
Weighted average estimated values and assumptions for employee stock option grants | The weighted average estimated values of employee stock option grants, as well as the weighted average assumptions that were used in calculating such values during fiscal years 2015, 2014 and 2013 were based on estimates at the date of grant as follows: | |||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||
Weighted average fair value | $ | 5.61 | $ | 5.2 | $ | 4.26 | ||||||||||||||||||||
Dividend yield | 3.32 | % | 4.05 | % | 4.06 | % | ||||||||||||||||||||
Expected volatility factor (1) | 27 | % | 30 | % | 31 | % | ||||||||||||||||||||
Risk-free interest rate (2) | 2 | % | 1.5 | % | 1 | % | ||||||||||||||||||||
Expected life (in years) (3) | 6 | 6 | 4.9 | |||||||||||||||||||||||
-1 | Expected volatility is measured using historical daily price changes of the Company’s stock over the respective expected term of the options and the implied volatility derived from the market prices of the Company’s traded options. | |||||||||||||||||||||||||
-2 | The risk-free rate for periods within the contractual term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||||||||||
-3 | The expected life is the number of years the Company estimates that options will be outstanding prior to exercise. The Company’s computation of expected life was determined based on the simplified method (the average of the vesting period and option term). | |||||||||||||||||||||||||
Summary of information on options exercised | The following table summarizes information on options exercised for the periods indicated: | |||||||||||||||||||||||||
Year Ended March 31, | ||||||||||||||||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||||||||||||||||
Cash received from options exercised | $ | 22 | $ | 88 | $ | 21 | ||||||||||||||||||||
Intrinsic value of options exercised | $ | 3 | $ | 19 | $ | 10 | ||||||||||||||||||||
Summary of RSA and RSU activity under the Plans | The following table summarizes the activity of RSAs and RSUs under the Plans: | |||||||||||||||||||||||||
RSAs | RSUs | |||||||||||||||||||||||||
Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
Outstanding at March 31, 2012 | 5.7 | $ | 22.41 | 1.2 | $ | 21.91 | ||||||||||||||||||||
Granted | 3.5 | 26.21 | 0.9 | 23.72 | ||||||||||||||||||||||
Released | (3.6 | ) | 22.22 | (0.6 | ) | 21.03 | ||||||||||||||||||||
Forfeitures | (0.6 | ) | 24.69 | (0.1 | ) | 23.38 | ||||||||||||||||||||
Outstanding at March 31, 2013 | 5 | $ | 24.98 | 1.4 | $ | 23.28 | ||||||||||||||||||||
Granted | 2.7 | 27.06 | 0.7 | 25.45 | ||||||||||||||||||||||
Released | (2.6 | ) | 24.49 | (0.6 | ) | 23.01 | ||||||||||||||||||||
Forfeitures | (0.8 | ) | 26.14 | (0.1 | ) | 24.41 | ||||||||||||||||||||
Outstanding at March 31, 2014 | 4.3 | $ | 26.38 | 1.4 | $ | 24.47 | ||||||||||||||||||||
Granted | 3.1 | 28.97 | 0.8 | 26.99 | ||||||||||||||||||||||
Released | (2.2 | ) | 26.36 | (0.6 | ) | 24.64 | ||||||||||||||||||||
Forfeitures | (0.9 | ) | 27.79 | (0.2 | ) | 25.59 | ||||||||||||||||||||
Outstanding at March 31, 2015 | 4.3 | $ | 27.99 | 1.4 | $ | 25.74 | ||||||||||||||||||||
Summary of RSAs and RSUs granted under 1-year PSUs for Incentive Plan Years | ||||||||||||||||||||||||||
RSAs | RSUs | |||||||||||||||||||||||||
Incentive Plans for Fiscal Years | Performance Period | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
2014 | 1 year | 0.7 | $ | 29.91 | 0.1 | $ | 28.92 | |||||||||||||||||||
2013 | 1 year | 0.4 | $ | 27.11 | 0.1 | $ | 26.12 | |||||||||||||||||||
2012 | 1 year | 1.2 | $ | 26.39 | 0.2 | $ | 25.4 | |||||||||||||||||||
Summary of unrestricted shares granted under 3-year PSUs for Incentive Plan Years | ||||||||||||||||||||||||||
Incentive Plans for Fiscal Years | Performance Period | Unrestricted Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
2010 | 3 years | 0.2 | $ | 26.39 | ||||||||||||||||||||||
Summary of RSAs and RSUs granted under 1-year PSUs for Sales Retention Equity Programs | ||||||||||||||||||||||||||
RSAs | RSUs | |||||||||||||||||||||||||
Incentive Plans for Fiscal Years | Performance Period | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||
2014 | 1 year | 0.2 | $ | 28.69 | 0.1 | $ | 25.73 | |||||||||||||||||||
2013 | 1 year | 0.2 | $ | 27.11 | 0.1 | $ | 24.13 | |||||||||||||||||||
2012 | 1 year | 0.2 | $ | 26.39 | 0.1 | $ | 23.41 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income from continuing operations before income taxes attributable to domestic and foreign operations | The amounts of income from continuing operations before income taxes attributable to domestic and foreign operations were as follows: | |||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Domestic | $ | 737 | $ | 683 | $ | 877 | ||||||
Foreign | 378 | 333 | 383 | |||||||||
Income from continuing operations before income taxes | $ | 1,115 | $ | 1,016 | $ | 1,260 | ||||||
Income tax expense (benefit) from continuing operations | Income tax expense (benefit) from continuing operations consisted of the following: | |||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Current: | ||||||||||||
Federal | $ | 284 | $ | 184 | $ | 261 | ||||||
State | 37 | 33 | 39 | |||||||||
Foreign | 56 | (19 | ) | 26 | ||||||||
Total current | $ | 377 | $ | 198 | $ | 326 | ||||||
Deferred: | ||||||||||||
Federal | $ | (74 | ) | $ | (82 | ) | $ | (18 | ) | |||
State | (12 | ) | (12 | ) | 3 | |||||||
Foreign | 14 | 25 | 28 | |||||||||
Total deferred | $ | (72 | ) | $ | (69 | ) | $ | 13 | ||||
Total: | ||||||||||||
Federal | $ | 210 | $ | 102 | $ | 243 | ||||||
State | 25 | 21 | 42 | |||||||||
Foreign | 70 | 6 | 54 | |||||||||
Total income tax expense from continuing operations | $ | 305 | $ | 129 | $ | 339 | ||||||
Schedule of effective income tax rate reconciliation | The income tax expense from continuing operations was reconciled to the tax expense computed at the U.S. federal statutory tax rate as follows: | |||||||||||
Year Ended March 31, | ||||||||||||
(in millions) | 2015 | 2014 | 2013 | |||||||||
Tax expense at U.S. federal statutory tax rate | $ | 390 | $ | 356 | $ | 440 | ||||||
Effect of international operations | (91 | ) | (147 | ) | (131 | ) | ||||||
U.S. federal and state tax contingencies | 1 | (123 | ) | (8 | ) | |||||||
Domestic manufacturing deduction | (23 | ) | (24 | ) | (21 | ) | ||||||
State taxes, net of U.S. federal tax benefit | 15 | 19 | 23 | |||||||||
Valuation allowance | 8 | 23 | 11 | |||||||||
Other, net | 5 | 25 | 25 | |||||||||
Income tax expense from continuing operations | $ | 305 | $ | 129 | $ | 339 | ||||||
Schedule of deferred tax assets and liabilities | The tax effects of the temporary differences from continuing operations were as follows: | |||||||||||
At March 31, | ||||||||||||
(in millions) | 2015 | 2014 | ||||||||||
Deferred tax assets: | ||||||||||||
Modified accrual basis accounting for revenue | $ | 349 | $ | 373 | ||||||||
Share-based compensation | 31 | 30 | ||||||||||
Accrued expenses | 36 | 36 | ||||||||||
Net operating losses | 96 | 131 | ||||||||||
Intangible assets amortizable for tax purposes | 3 | 4 | ||||||||||
Deductible state tax and interest benefits | 20 | 20 | ||||||||||
Other | 69 | 65 | ||||||||||
Total deferred tax assets | $ | 604 | $ | 659 | ||||||||
Valuation allowances | (85 | ) | (87 | ) | ||||||||
Total deferred tax assets, net of valuation allowance | $ | 519 | $ | 572 | ||||||||
Deferred tax liabilities: | ||||||||||||
Purchased software | $ | 48 | $ | 76 | ||||||||
Depreciation | 3 | 6 | ||||||||||
Other intangible assets | 17 | 34 | ||||||||||
Internally developed software | 93 | 158 | ||||||||||
Total deferred tax liabilities | $ | 161 | $ | 274 | ||||||||
Net deferred tax asset | $ | 358 | $ | 298 | ||||||||
Roll-forward of uncertain tax positions | 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 | ||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Segment information | ||||||||||||||||||||
Year Ended March 31, 2013 | Mainframe | Enterprise | Services | Total | ||||||||||||||||
(dollars in millions) | Solutions | Solutions | ||||||||||||||||||
Revenue | $ | 2,489 | $ | 1,633 | $ | 382 | $ | 4,504 | ||||||||||||
Expenses | 1,038 | 1,520 | 358 | 2,916 | ||||||||||||||||
Segment profit | $ | 1,451 | $ | 113 | $ | 24 | $ | 1,588 | ||||||||||||
Segment operating margin | 58 | % | 7 | % | 6 | % | 35 | % | ||||||||||||
Depreciation | $ | 63 | $ | 41 | $ | — | $ | 104 | ||||||||||||
Year Ended March 31, 2014 | Mainframe | Enterprise | Services | Total | ||||||||||||||||
(dollars in millions) | Solutions | Solutions | ||||||||||||||||||
Revenue | $ | 2,478 | $ | 1,555 | $ | 379 | $ | 4,412 | ||||||||||||
Expenses | 996 | 1,440 | 357 | 2,793 | ||||||||||||||||
Segment profit | $ | 1,482 | $ | 115 | $ | 22 | $ | 1,619 | ||||||||||||
Segment operating margin | 60 | % | 7 | % | 6 | % | 37 | % | ||||||||||||
Depreciation | $ | 52 | $ | 32 | $ | — | $ | 84 | ||||||||||||
Year Ended March 31, 2015 | Mainframe | Enterprise | Services | Total | ||||||||||||||||
(dollars in millions) | Solutions | Solutions | ||||||||||||||||||
Revenue | $ | 2,392 | $ | 1,519 | $ | 351 | $ | 4,262 | ||||||||||||
Expenses | 970 | 1,353 | 342 | 2,665 | ||||||||||||||||
Segment profit | $ | 1,422 | $ | 166 | $ | 9 | $ | 1,597 | ||||||||||||
Segment operating margin | 59 | % | 11 | % | 3 | % | 37 | % | ||||||||||||
Depreciation | $ | 43 | $ | 28 | $ | — | $ | 71 | ||||||||||||
Reconciliation of segment profit to income from continuing operations before income taxes | Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2013: | |||||||||||||||||||
Segment profit | $ | 1,588 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Purchased software amortization (1) | 162 | |||||||||||||||||||
Other intangibles amortization | 54 | |||||||||||||||||||
Software development costs capitalized | (152 | ) | ||||||||||||||||||
Internally developed software products amortization | 143 | |||||||||||||||||||
Share-based compensation expense | 77 | |||||||||||||||||||
Other expenses (gains), net | — | |||||||||||||||||||
Interest expense, net | 44 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,260 | ||||||||||||||||||
-1 | Amount includes impairment recorded in fiscal year 2013 of approximately $55 million relating to purchased software (see Note 6, “Long Lived Assets,” in the Notes to the Consolidated Financial Statements for additional information). | |||||||||||||||||||
Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2014: | ||||||||||||||||||||
Segment profit | $ | 1,619 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Purchased software amortization | 116 | |||||||||||||||||||
Other intangibles amortization | 60 | |||||||||||||||||||
Software development costs capitalized | (33 | ) | ||||||||||||||||||
Internally developed software products amortization | 155 | |||||||||||||||||||
Share-based compensation expense | 81 | |||||||||||||||||||
Other expenses (gains), net (1) | 170 | |||||||||||||||||||
Interest expense, net | 54 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,016 | ||||||||||||||||||
-1 | Other expenses (gains), net consists of approximately $168 million of costs associated with the Fiscal 2014 Plan and other miscellaneous costs. | |||||||||||||||||||
Reconciliation of segment profit to income from continuing operations before income taxes for fiscal year 2015: | ||||||||||||||||||||
Segment profit | $ | 1,597 | ||||||||||||||||||
Less: | ||||||||||||||||||||
Purchased software amortization | 124 | |||||||||||||||||||
Other intangibles amortization | 58 | |||||||||||||||||||
Software development costs capitalized | — | |||||||||||||||||||
Internally developed software products amortization | 149 | |||||||||||||||||||
Share-based compensation expense | 87 | |||||||||||||||||||
Other expenses (gains), net (1) | 17 | |||||||||||||||||||
Interest expense, net | 47 | |||||||||||||||||||
Income from continuing operations before income taxes | $ | 1,115 | ||||||||||||||||||
-1 | Other expenses (gains), net consists of costs associated with the Fiscal 2014 Plan and other miscellaneous costs. | |||||||||||||||||||
Information about Company by geographic area | The following table presents information about the Company by geographic area for fiscal years 2015, 2014 and 2013: | |||||||||||||||||||
(in millions) | United States | EMEA (1) | Other | Eliminations | Total | |||||||||||||||
Year Ended March 31, 2015 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
From unaffiliated customers | $ | 2,615 | $ | 1,008 | $ | 639 | $ | — | $ | 4,262 | ||||||||||
Between geographic areas (2) | 438 | — | — | (438 | ) | — | ||||||||||||||
Total revenue | $ | 3,053 | $ | 1,008 | $ | 639 | $ | (438 | ) | $ | 4,262 | |||||||||
Property and equipment, net | $ | 112 | $ | 97 | $ | 43 | $ | — | $ | 252 | ||||||||||
Total assets | $ | 8,128 | $ | 1,874 | $ | 977 | $ | — | $ | 10,979 | ||||||||||
Total liabilities | $ | 4,047 | $ | 809 | $ | 498 | $ | — | $ | 5,354 | ||||||||||
Year Ended March 31, 2014 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
From unaffiliated customers | $ | 2,645 | $ | 1,093 | $ | 674 | $ | — | $ | 4,412 | ||||||||||
Between geographic areas (2) | 446 | — | — | (446 | ) | — | ||||||||||||||
Total revenue | $ | 3,091 | $ | 1,093 | $ | 674 | $ | (446 | ) | $ | 4,412 | |||||||||
Property and equipment, net | $ | 125 | $ | 116 | $ | 54 | $ | — | $ | 295 | ||||||||||
Total assets | $ | 8,908 | $ | 2,076 | $ | 1,032 | $ | — | $ | 12,016 | ||||||||||
Total liabilities | $ | 4,919 | $ | 890 | $ | 637 | $ | — | $ | 6,446 | ||||||||||
Year Ended March 31, 2013 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
From unaffiliated customers | $ | 2,679 | $ | 1,106 | $ | 719 | $ | — | $ | 4,504 | ||||||||||
Between geographic areas (2) | 460 | — | — | (460 | ) | — | ||||||||||||||
Total revenue | $ | 3,139 | $ | 1,106 | $ | 719 | $ | (460 | ) | $ | 4,504 | |||||||||
Property and equipment, net | $ | 138 | $ | 108 | $ | 65 | $ | — | $ | 311 | ||||||||||
Total assets | $ | 8,897 | $ | 1,911 | $ | 1,007 | $ | — | $ | 11,815 | ||||||||||
Total liabilities | $ | 4,802 | $ | 939 | $ | 624 | $ | — | $ | 6,365 | ||||||||||
-1 | Consists of Europe, the Middle East and Africa. | |||||||||||||||||||
-2 | Represents royalties from foreign subsidiaries determined as a percentage of certain amounts invoiced to customer. |
Significant_Accounting_Policie2
Significant Accounting Policies 1 (Details) | 12 Months Ended |
Mar. 31, 2015 | |
Building and Improvements | Minimum | |
Property and Equipment | |
Property and equipment, Estimated useful life (in years) | 5 years |
Building and Improvements | Maximum | |
Property and Equipment | |
Property and equipment, Estimated useful life (in years) | 39 years |
Remaining Property and Equipment | Minimum | |
Property and Equipment | |
Property and equipment, Estimated useful life (in years) | 3 years |
Remaining Property and Equipment | Maximum | |
Property and Equipment | |
Property and equipment, Estimated useful life (in years) | 7 years |
Significant_Accounting_Policie3
Significant Accounting Policies 2 (Details) | 12 Months Ended |
Mar. 31, 2015 | |
Internally Developed Software Products | |
Finite-Lived Intangible Assets | |
Finite-lived intangible assets, Estimated useful life (in years) | 5 years |
Purchased Software Products | Minimum | |
Finite-Lived Intangible Assets | |
Finite-lived intangible assets, Estimated useful life (in years) | 2 years |
Purchased Software Products | Maximum | |
Finite-Lived Intangible Assets | |
Finite-lived intangible assets, Estimated useful life (in years) | 10 years |
Other Intangible Assets | Minimum | |
Finite-Lived Intangible Assets | |
Finite-lived intangible assets, Estimated useful life (in years) | 2 years |
Other Intangible Assets | Maximum | |
Finite-Lived Intangible Assets | |
Finite-lived intangible assets, Estimated useful life (in years) | 12 years |
Significant_Accounting_Policie4
Significant Accounting Policies 3 (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||||
Percentage of cash and cash equivalents held by the Company's foreign subsidiaries outside the United States | 61.00% | 69.00% | 61.00% | ||
Interest income | $30,000,000 | $21,000,000 | $20,000,000 | ||
Restricted cash reclassified from Other noncurrent assets, net to Cash and cash equivalents | 50,000,000 | 0 | 50,000,000 | 0 | |
Advertising expense | 39,000,000 | 38,000,000 | 10,000,000 | ||
Significant Accounting Policies | |||||
Foreign currency transaction (gains) losses | -14,000,000 | 17,000,000 | 12,000,000 | ||
Restricted cash | 2,000,000 | 1,000,000 | 2,000,000 | ||
Other Expenses (Gains), Net | |||||
Significant Accounting Policies | |||||
Intellectual property assets transaction value | 35,000,000 | ||||
Insurance Subsidiary | Minimum Required Balance | |||||
Significant Accounting Policies | |||||
Restricted cash | 250,000 | 250,000 | 50,000,000 | ||
Venezuela | |||||
Significant Accounting Policies | |||||
Foreign currency transaction (gains) losses | $14,000,000 | $6,000,000 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 10 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2013 | Jun. 30, 2013 | |
Business Combinations [Abstract] | |||||
Accrued acquisition-related costs related to purchase price amounts withheld to support indemnification obligations | $30 | $27 | |||
Purchase price allocation and estimated useful lives | |||||
Goodwill | 5,922 | 5,806 | 5,864 | ||
Layer 7 | |||||
Business Acquisition | |||||
Percentage of voting equity interest acquired | 100.00% | ||||
Cash acquired from acquisition | 9 | ||||
Purchase price allocation and estimated useful lives | |||||
Finite-lived intangible assets | 26 | [1] | |||
Goodwill | 55 | ||||
Deferred tax liabilities | -13 | ||||
Other assets net of other liabilities assumed | 0 | [2] | |||
Purchase price | 155 | 155 | |||
Estimated useful life | |||||
Finite-lived intangible assets, Estimated useful life (in years) | 3 years | [1] | |||
Goodwill, Estimated useful life | Indefinite | ||||
Layer 7 | Purchased Software | |||||
Purchase price allocation and estimated useful lives | |||||
Finite-lived intangible assets | $87 | ||||
Estimated useful life | |||||
Finite-lived intangible assets, Estimated useful life (in years) | 5 years | ||||
[1] | Includes customer relationships and trade names. | ||||
[2] | Includes approximately $9 million of cash acquired. |
Divestitures_1_Details
Divestitures 1 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income from discontinued operations | |||
Income from discontinued operations, net of tax | $36 | $27 | $34 |
Discontinued Operations | |||
Income from discontinued operations | |||
Total revenue | 62 | 135 | 139 |
Income from operations of discontinued components, net of tax expense of $10 million, $19 million and $24 million, respectively | 16 | 27 | 34 |
Gain on disposal of discontinued component, net of tax | 20 | 0 | 0 |
Income from discontinued operations, net of tax | 36 | 27 | 34 |
Tax expense on income from operations of discontinued components | 10 | 19 | 24 |
Discontinued Operations | Subscription and Maintenance | |||
Income from discontinued operations | |||
Total revenue | 43 | 88 | 94 |
Discontinued Operations | Software Fees and Other | |||
Income from discontinued operations | |||
Total revenue | $19 | $47 | $45 |
Divestitures_2_Details
Divestitures 2 (Details) (USD $) | 12 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 |
Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Goodwill written off related to sale of discontinued component | $109 | |
Arcserve | ||
Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Proceeds from sale of discontinued component | 170 | |
Gain on disposal of discontinued component, net of tax | 20 | |
Tax expense related to gain on disposal of discontinued component | 77 | |
Goodwill written off related to sale of discontinued component | $109 |
Severance_and_Exit_Costs_1_Det
Severance and Exit Costs 1 (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Accrued severance and exit costs activity | ||||
Accrued beginning balance | $53 | |||
Accrued ending balance | 49 | 84 | 39 | 53 |
Severance Charges | ||||
Accrued severance and exit costs activity | ||||
Accrued beginning balance | 55 | 16 | 13 | |
Expense | 60 | 160 | 18 | |
Change in estimate | -7 | -12 | -6 | |
Payments | -77 | -113 | -9 | |
Accretion and other | -3 | 4 | 0 | |
Accrued ending balance | 28 | 55 | 16 | |
Facility Exit Charges | ||||
Accrued severance and exit costs activity | ||||
Accrued beginning balance | 29 | 23 | 40 | |
Expense | 0 | 22 | 0 | |
Change in estimate | 0 | 0 | 0 | |
Payments | -9 | -13 | -13 | |
Accretion and other | 1 | -3 | -4 | |
Accrued ending balance | $21 | $29 | $23 |
Severance_and_Exit_Costs_2_Det
Severance and Exit Costs 2 (Details) (USD $) | 3 Months Ended | 23 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Employee | Employee | ||||
Restructuring and Related Activities | |||||
Accrued balance | 49 | $49 | $84 | $39 | $53 |
Severance | |||||
Restructuring and Related Activities | |||||
Accrued balance | 28 | 28 | 55 | 16 | 13 |
Facility Exit | |||||
Restructuring and Related Activities | |||||
Accrued balance | 21 | 21 | 29 | 23 | 40 |
Fiscal 2015 Severance Actions | |||||
Restructuring and Related Activities | |||||
Expected number of employees terminated | 690 | ||||
Fiscal 2015 Severance Actions | Severance | |||||
Restructuring and Related Activities | |||||
Expected cost | 40 | 40 | |||
Fiscal 2015 Severance Actions | Severance | Product Development and Enhancements | |||||
Restructuring and Related Activities | |||||
Expected cost | 16 | 16 | |||
Fiscal 2015 Severance Actions | Severance | Selling and Marketing | |||||
Restructuring and Related Activities | |||||
Expected cost | 10 | 10 | |||
Fiscal 2015 Severance Actions | Severance | Cost of Professional Services | |||||
Restructuring and Related Activities | |||||
Expected cost | 8 | 8 | |||
Fiscal 2015 Severance Actions | Severance | General and Administrative | |||||
Restructuring and Related Activities | |||||
Expected cost | 5 | 5 | |||
Fiscal 2015 Severance Actions | Severance | Costs of Licensing and Maintenance | |||||
Restructuring and Related Activities | |||||
Expected cost | 1 | 1 | |||
Fiscal 2014 Plan | |||||
Restructuring and Related Activities | |||||
Expected number of employees terminated | 1,900 | ||||
Expected cost | 190 | 190 | |||
Fiscal 2014 Plan | Severance | |||||
Restructuring and Related Activities | |||||
Cost incurred to date | 166 | 166 | |||
Fiscal 2014 Plan | Facility Exit | |||||
Restructuring and Related Activities | |||||
Cost incurred to date | 22 | 22 | |||
Plans and Actions Prior to Fiscal 2015 Severance Actions | Severance | |||||
Restructuring and Related Activities | |||||
Accrued balance | 5 | $5 |
Trade_Accounts_Receivable_Deta
Trade Accounts Receivable (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Components of trade accounts receivable, net | ||
Accounts receivable - billed | $591 | $739 |
Accounts receivable - unbilled | 63 | 61 |
Other receivables | 15 | 19 |
Less: Allowances | -17 | -19 |
Trade accounts receivable, net | $652 | $800 |
LongLived_Assets_1_Details
Long-Lived Assets 1 (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | |||
Property and equipment | |||
Property and equipment, gross | $1,064 | $1,123 | |
Accumulated depreciation and amortization | -812 | -828 | |
Property and equipment, net | 252 | 295 | 311 |
Land and Buildings | |||
Property and equipment | |||
Property and equipment, gross | 190 | 222 | |
Equipment, Software Developed For Internal Use, Furniture and Leasehold Improvements | |||
Property and equipment | |||
Property and equipment, gross | $874 | $901 |
LongLived_Assets_2_Details
Long-Lived Assets 2 (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Capitalized software and other intangible assets | ||
Gross amortizable assets | $8,039 | $8,113 |
Less: Fully amortized assets | 6,250 | 6,095 |
Remaining amortizable assets | 1,789 | 2,018 |
Accumulated amortization on remaining amortizable assets | 1,058 | 955 |
Net assets | 731 | 1,063 |
Purchased Software Products | ||
Capitalized software and other intangible assets | ||
Gross amortizable assets | 5,717 | 5,706 |
Less: Fully amortized assets | 4,859 | 4,849 |
Remaining amortizable assets | 858 | 857 |
Accumulated amortization on remaining amortizable assets | 413 | 309 |
Net assets | 445 | 548 |
Internally Developed Software Products | ||
Capitalized software and other intangible assets | ||
Gross amortizable assets | 1,486 | 1,561 |
Less: Fully amortized assets | 835 | 757 |
Remaining amortizable assets | 651 | 804 |
Accumulated amortization on remaining amortizable assets | 414 | 397 |
Net assets | 237 | 407 |
Other Intangible Assets | ||
Capitalized software and other intangible assets | ||
Gross amortizable assets | 836 | 846 |
Less: Fully amortized assets | 556 | 489 |
Remaining amortizable assets | 280 | 357 |
Accumulated amortization on remaining amortizable assets | 231 | 249 |
Net assets | $49 | $108 |
LongLived_Assets_3_Details
Long-Lived Assets 3 (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Depreciation and amortization expense | ||||
Depreciation | $71 | $84 | $104 | |
Total depreciation and amortization expense | 402 | 415 | 463 | |
Purchased Software Products | ||||
Depreciation and amortization expense | ||||
Amortization of intangible assets | 124 | 116 | 162 | [1] |
Internally Developed Software Products | ||||
Depreciation and amortization expense | ||||
Amortization of intangible assets | 149 | 155 | 143 | |
Other Intangible Assets | ||||
Depreciation and amortization expense | ||||
Amortization of intangible assets | $58 | $60 | $54 | |
[1] | Amount includes impairment recorded in fiscal year 2013 of approximately $55 million relating to purchased software (see NoteB 6, bLong Lived Assets,b in the Notes to the Consolidated Financial Statements for additional information). |
LongLived_Assets_4_Details
Long-Lived Assets 4 (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Expected annual amortization expense over next five fiscal years | |
2016 | $256 |
2017 | 197 |
2018 | 145 |
2019 | 76 |
2020 | 47 |
Purchased Software Products | |
Expected annual amortization expense over next five fiscal years | |
2016 | 110 |
2017 | 109 |
2018 | 106 |
2019 | 65 |
2020 | 46 |
Internally Developed Software Products | |
Expected annual amortization expense over next five fiscal years | |
2016 | 109 |
2017 | 79 |
2018 | 37 |
2019 | 10 |
2020 | 1 |
Other Intangible Assets | |
Expected annual amortization expense over next five fiscal years | |
2016 | 37 |
2017 | 9 |
2018 | 2 |
2019 | 1 |
2020 | $0 |
LongLived_Assets_5_Details
Long-Lived Assets 5 (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill activity by segment | ||
Balance at beginning of year | $5,922 | $5,864 |
Acquisitions | 55 | |
Divestitures | -109 | |
Foreign currency translation adjustment | -7 | 3 |
Balance at end of year | 5,806 | 5,922 |
Mainframe Solutions | ||
Goodwill activity by segment | ||
Balance at beginning of year | 4,178 | 4,178 |
Acquisitions | 0 | |
Divestitures | 0 | |
Foreign currency translation adjustment | 0 | 0 |
Balance at end of year | 4,178 | 4,178 |
Enterprise Solutions | ||
Goodwill activity by segment | ||
Balance at beginning of year | 1,663 | 1,605 |
Acquisitions | 55 | |
Divestitures | -109 | |
Foreign currency translation adjustment | -7 | 3 |
Balance at end of year | 1,547 | 1,663 |
Services | ||
Goodwill activity by segment | ||
Balance at beginning of year | 81 | 81 |
Acquisitions | 0 | |
Divestitures | 0 | |
Foreign currency translation adjustment | 0 | 0 |
Balance at end of year | $81 | $81 |
LongLived_Assets_6_Details
Long-Lived Assets 6 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Long-Lived Assets [Abstract] | |||
Accumulated goodwill impairment losses | $111 | $111 | |
Goodwill impairments | 0 | 0 | 0 |
Enterprise Solutions | |||
Finite-Lived Intangible Assets | |||
Impairment | 21 | ||
Uncertainty, Continued marketability of goods and services | The Company evaluates the useful lives and recoverability of capitalized software and other intangible assets when events or changes in circumstances indicate that an impairment may exist. These evaluations require complex assumptions about key factors such as future customer demand, technology trends and the impact of those factors on the technology the Company acquires and develops for its products.B Impairments or revisions to useful lives could result from the use of alternative assumptions that reflect reasonably possible outcomes related to future customer demand or technology trends for assets within the Enterprise Solutions segment. | ||
Internally Developed Software Products | Enterprise Solutions | |||
Finite-Lived Intangible Assets | |||
Impairment | 9 | 6 | 2 |
Purchased Software Products | |||
Finite-Lived Intangible Assets | |||
Impairment | 0 | 55 | |
Purchased Software Products | Enterprise Solutions | |||
Finite-Lived Intangible Assets | |||
Impairment | $12 | $55 |
Deferred_Revenue_Details
Deferred Revenue (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Current: | ||
Total deferred revenue (billed or collected) - current | $2,114 | $2,419 |
Noncurrent: | ||
Total deferred revenue (billed or collected) - noncurrent | 863 | 872 |
Total deferred revenue (billed or collected) | 2,977 | 3,291 |
Subscription and Maintenance | ||
Current: | ||
Total deferred revenue (billed or collected) - current | 1,966 | 2,237 |
Noncurrent: | ||
Total deferred revenue (billed or collected) - noncurrent | 832 | 845 |
Professional Services | ||
Current: | ||
Total deferred revenue (billed or collected) - current | 115 | 149 |
Noncurrent: | ||
Total deferred revenue (billed or collected) - noncurrent | 28 | 26 |
Software Fees and Other | ||
Current: | ||
Total deferred revenue (billed or collected) - current | 33 | 33 |
Noncurrent: | ||
Total deferred revenue (billed or collected) - noncurrent | $3 | $1 |
Debt_1_Details
Debt 1 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Aug. 31, 2013 |
Debt obligations | |||
Other indebtedness, primarily capital leases | $13 | $17 | |
Unamortized discount for Senior Notes | -5 | -4 | |
Total debt outstanding | 1,766 | 1,263 | |
Less the current portion | -514 | -10 | |
Total long-term debt portion | 1,252 | 1,253 | |
Revolving Credit Facility | |||
Debt obligations | |||
Long-term debt, gross | 0 | 0 | |
5.375% Senior Notes due December 2019 | |||
Debt obligations | |||
Long-term debt, gross | 750 | 750 | |
6.125% Senior Notes due December 2014 | |||
Debt obligations | |||
6.125% Senior Notes due December 2014, net of unamortized premium from fair value hedge of $8 at March 31, 2014 | 508 | 0 | |
Unamortized premium from fair value hedge | 8 | ||
2.875% Senior Notes due August 2018 | |||
Debt obligations | |||
Long-term debt, gross | 250 | 250 | |
Unamortized discount for Senior Notes | -1 | ||
4.500% Senior Notes due August 2023 | |||
Debt obligations | |||
Long-term debt, gross | 250 | 250 | |
Unamortized discount for Senior Notes | ($1) |
Debt_2_Details
Debt 2 (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Maturities of outstanding debt | |
Amount due in 2016 | $10 |
Amount due in 2017 | 5 |
Amount due in 2018 | 1 |
Amount due in 2019 | 250 |
Amount due in 2020 | 748 |
Amount due thereafter | $249 |
Debt_3_Details
Debt 3 (Details) (Revolving Credit Facility) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revolving Credit Facility | ||
Rates applicable to revolving credit facility | ||
Applicable margin on Base Rate borrowing | 0.13% | 0.13% |
Weighted average interest rate on outstanding borrowings | 0.00% | 0.00% |
Applicable margin on Eurocurrency Rate borrowing | 1.00% | 1.00% |
Facility commitment fee | 0.13% | 0.13% |
Debt_4_Details
Debt 4 (Details) (Notional Pooling Arrangement, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Notional Pooling Arrangement | ||||
Notional pooling arrangement | ||||
Total borrowings outstanding at beginning of year | $139 | [1] | $136 | [1] |
Borrowings | 5,371 | 3,702 | ||
Repayments | -5,207 | -3,734 | ||
Foreign exchange effect | -165 | 35 | ||
Total borrowings outstanding at end of year | $138 | [1] | $139 | [1] |
[1] | Included in bAccrued expenses and other current liabilitiesb in the Companybs Consolidated Balance Sheets. |
Debt_5_Details
Debt 5 (Details) (USD $) | 12 Months Ended | 1 Months Ended | 2 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | Aug. 31, 2013 | Dec. 01, 2014 | Dec. 31, 2009 | |
Debt Disclosure [Abstract] | |||||||
Interest expense | $77,000,000 | $75,000,000 | $64,000,000 | ||||
Debt Instruments | |||||||
Debt issuance costs | 0 | 5,000,000 | 0 | ||||
Proceeds from issuance of Senior Notes | 0 | 498,000,000 | 0 | ||||
Senior Notes, Discount | 4,000,000 | 5,000,000 | |||||
Revolving Credit Facility | |||||||
Debt Instruments | |||||||
Maximum committed amount available under revolving credit facility | 1,000,000,000 | ||||||
Maximum available credit increase under revolving credit facility | 500,000,000 | ||||||
Borrowings outstanding | 0 | 0 | |||||
Debt issuance costs | 1,000,000 | ||||||
Borrowing activity | 0 | 0 | 0 | ||||
Revolving credit facility, Covenant description | The revolving credit facility contains customary covenants for borrowings of this type, including two financial covenants: (i)B as of any date, for the period of four fiscal quarters ended on or immediately prior to such date, the ratio of consolidated debt for borrowed money to consolidated cash flow, each as defined in the revolving credit facility agreement, must not exceed 4.00 to 1.00; and (ii)B as of any date, for the period of four fiscal quarters ended on or immediately prior to such date, the ratio of consolidated cash flow to the sum of interest payable on, and amortization of debt discount in respect of, all consolidated debt for borrowed money, as defined in the credit agreement, must not be less than 3.50 to 1.00. | ||||||
Revolving credit facility, Financial covenant, Ratio of consolidated debt for borrowed money to consolidated cash flow | 400.00% | ||||||
Revolving credit facility, Financial covenant, Ratio of consolidated cash flow to the sum of interest payable and amortization of debt discount on all consolidated debt for borrowed money | 350.00% | ||||||
Revolving credit facility, Covenant compliance | At MarchB 31, 2015, the Company was in compliance with all covenants. | ||||||
Base Rate Borrowings | |||||||
Debt Instruments | |||||||
Interest rate that would have applied at year end under revolving credit facility | 3.38% | ||||||
Eurocurrency Rate Borrowings | |||||||
Debt Instruments | |||||||
Interest rate that would have applied at year end under revolving credit facility | 1.18% | ||||||
2.875% Senior Notes due August 2018 (2.875% Notes) | |||||||
Debt Instruments | |||||||
Debt issuance costs | 2,000,000 | ||||||
Senior Notes, Face amount | 250,000,000 | ||||||
Senior Notes, Interest rate | 2.88% | ||||||
Proceeds from issuance of Senior Notes | 249,000,000 | ||||||
Senior Notes, Discount | 1,000,000 | ||||||
Additional basis points for redemption of Senior Notes | 0.25% | ||||||
Repurchase percentage of principal amount with accrued and unpaid interest | 101.00% | ||||||
4.500% Senior Notes due August 2023 (4.500% Notes) | |||||||
Debt Instruments | |||||||
Debt issuance costs | 2,000,000 | ||||||
Senior Notes, Face amount | 250,000,000 | ||||||
Senior Notes, Interest rate | 4.50% | ||||||
Proceeds from issuance of Senior Notes | 249,000,000 | ||||||
Senior Notes, Discount | 1,000,000 | ||||||
Additional basis points for redemption of Senior Notes | 0.30% | ||||||
Repurchase percentage of principal amount with accrued and unpaid interest | 101.00% | ||||||
5.375% Senior Notes due December 2019 (5.375% Notes) | |||||||
Debt Instruments | |||||||
Senior Notes, Face amount | 750,000,000 | ||||||
Senior Notes, Interest rate | 5.38% | ||||||
Additional basis points for redemption of Senior Notes | 0.30% | ||||||
Repurchase percentage of principal amount with accrued and unpaid interest | 101.00% | ||||||
6.125% Senior Notes due December 2014 (6.125% Notes) | |||||||
Debt Instruments | |||||||
Senior Notes, Face amount | 500,000,000 | ||||||
Senior Notes, Interest rate | 6.13% | ||||||
Repayment of debt obligations | 500,000,000 | ||||||
Multi-Currency Line of Credit | |||||||
Debt Instruments | |||||||
Borrowings outstanding | 0 | ||||||
Amount pledged in support of bank guarantees and other local credit lines | $27,000,000 | $49,000,000 | |||||
Borrowings outstanding | less than $1 million |
Derivatives_1_Details
Derivatives 1 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Rate Swaps | Fair Value Hedges | Interest Expense, Net | |||
Effect of interest rate and foreign exchange derivatives on Consolidated Statements of Operations | |||
Amount of net (gain)/loss from derivative instruments recognized in the Consolidated Statements of Operations | ($8) | ($12) | ($12) |
Foreign Currency Contracts | Other Expenses (Gains), Net | |||
Effect of interest rate and foreign exchange derivatives on Consolidated Statements of Operations | |||
Amount of net (gain)/loss from derivative instruments recognized in the Consolidated Statements of Operations | ($31) | ($20) | $11 |
Derivatives_2_Details
Derivatives 2 (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 01, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Collateral posted under collateralized security arrangements | $0 | $0 | |
Interest Rate Swaps | Fair Value Hedges | |||
Derivatives, Fair Value | |||
Notional value of derivative instruments | 500 | ||
Fair value of interest rate derivative assets | 0 | ||
Interest Rate Swaps | Fair Value Hedges | Other Current Assets | |||
Derivatives, Fair Value | |||
Fair value of interest rate derivative assets | 8 | ||
Foreign Currency Contracts | |||
Derivatives, Fair Value | |||
Notional value of derivative instruments | 298 | 250 | |
Tenure of foreign currency contracts outstanding | less than three months | less than three months | |
Net fair value of foreign currency contracts | 2 | 1 | |
Foreign Currency Contracts | Other Current Assets | |||
Derivatives, Fair Value | |||
Fair value of foreign currency contracts included in "Other current assets" | 5 | 2 | |
Foreign Currency Contracts | Accrued Expenses and Other Current Liabilities | |||
Derivatives, Fair Value | |||
Fair value of foreign currency contracts included in "Accrued expenses and other current liabilities" | 3 | 1 | |
6.125% Senior Notes due December 2014 (6.125% Notes) | |||
Derivatives, Fair Value | |||
Senior Notes, Interest rate | 6.13% | ||
Senior Notes, Face amount | $500 |
Fair_Value_Measurements_1_Deta
Fair Value Measurements 1 (Details) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2015 | Mar. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Assets: | ||||
Foreign exchange derivatives | $5 | [1] | $2 | [1] |
Interest rate derivatives | 0 | [1] | 8 | [1] |
Total assets | 754 | 1,287 | ||
Liabilities: | ||||
Foreign exchange derivatives | 3 | [1] | 1 | [1] |
Total liabilities | 3 | 1 | ||
Money Market Funds | Cash and Cash Equivalents | ||||
Assets: | ||||
Money market funds | 749 | [2] | 1,277 | [2] |
Fair Value, Inputs, Level 1 | ||||
Assets: | ||||
Foreign exchange derivatives | 0 | [1] | 0 | [1] |
Interest rate derivatives | 0 | [1] | 0 | [1] |
Total assets | 749 | 1,277 | ||
Liabilities: | ||||
Foreign exchange derivatives | 0 | [1] | 0 | [1] |
Total liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 1 | Money Market Funds | Cash and Cash Equivalents | ||||
Assets: | ||||
Money market funds | 749 | [2] | 1,277 | [2] |
Fair Value, Inputs, Level 2 | ||||
Assets: | ||||
Foreign exchange derivatives | 5 | [1] | 2 | [1] |
Interest rate derivatives | 0 | [1] | 8 | [1] |
Total assets | 5 | 10 | ||
Liabilities: | ||||
Foreign exchange derivatives | 3 | [1] | 1 | [1] |
Total liabilities | 3 | 1 | ||
Fair Value, Inputs, Level 2 | Money Market Funds | Cash and Cash Equivalents | ||||
Assets: | ||||
Money market funds | 0 | [2] | 0 | [2] |
Fair Value, Inputs, Level 3 | ||||
Assets: | ||||
Total assets | 0 | 0 | ||
Liabilities: | ||||
Total liabilities | $0 | $0 | ||
[1] | See Note 9, bDerivativesb for additional information. Interest rate derivatives fair value excludes accrued interest. | |||
[2] | The Company's investments in money market funds are classified as bCash and cash equivalentsb in its Consolidated Balance Sheets. |
Fair_Value_Measurements_2_Deta
Fair Value Measurements 2 (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
Liabilities: | ||||||
Total debt | $1,263 | $1,766 | ||||
Facility exit reserve | 49 | 84 | 39 | 53 | ||
Facility Exit | ||||||
Liabilities: | ||||||
Facility exit reserve | 21 | 29 | 23 | 40 | ||
Carrying Value | ||||||
Liabilities: | ||||||
Total debt | 1,263 | [1] | 1,766 | [1] | ||
Carrying Value | Facility Exit | ||||||
Liabilities: | ||||||
Facility exit reserve | 21 | [2] | 29 | [2] | ||
Estimated Fair Value | ||||||
Liabilities: | ||||||
Total debt | 1,376 | [1] | 1,884 | [1] | ||
Estimated Fair Value | Facility Exit | ||||||
Liabilities: | ||||||
Facility exit reserve | $23 | [2] | $33 | [2] | ||
[1] | Estimated fair value of total debt is based on quoted prices for similar liabilities for which significant inputs are observable except for certain long-term lease obligations, for which fair value approximates carrying value (Level 2). | |||||
[2] | Estimated fair value for the facility exit reserve is determined using the Companybs incremental borrowing rate at MarchB 31, 2015 and 2014. At MarchB 31, 2015 and 2014, the facility exit reserve included approximately $4 million and $11 million, respectively, in bAccrued expenses and other current liabilitiesb and approximately $17 million and $18 million, respectively, in bOther noncurrent liabilitiesb in the Companybs Consolidated Balance Sheets (Level 3). |
Fair_Value_Measurements_3_Deta
Fair Value Measurements 3 (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Facility exit reserve | $49 | $84 | $39 | $53 |
Facility Exit | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Facility exit reserve | 21 | 29 | 23 | 40 |
Facility Exit | Accrued Expenses and Other Current Liabilities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Facility exit reserve | 4 | 11 | ||
Facility Exit | Other Noncurrent Liabilities | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Facility exit reserve | $17 | $18 |
Commitments_and_Contingencies_1
Commitments and Contingencies 1 (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Future minimum lease payments under non-cancelable operating leases | |
Fiscal Year 2016 | $80 |
Fiscal Year 2017 | 71 |
Fiscal Year 2018 | 64 |
Fiscal Year 2019 | 52 |
Fiscal Year 2020 | 47 |
Thereafter | 85 |
Total | 399 |
Less income from sublease | -23 |
Net minimum operating lease payments | $376 |
Commitments_and_Contingencies_2
Commitments and Contingencies 2 (Details) (USD $) | 10 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense, net | $144 | $144 | $148 | |
Future purchase commitments | 235 | |||
Future purchase commitments due within five years | 220 | 220 | ||
Alleged damages suffered | excess of $100 million | |||
Loss contingency, Range of reasonably possible loss, Minimum | 0 | 0 | ||
Loss contingency, Range of reasonably possible loss, Maximum | $30 | $30 |
Stockholders_Equity_1_Details
Stockholders' Equity 1 (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Cash dividends | |||||||||||
Declaration date | 5-Feb-15 | 6-Nov-14 | 31-Jul-14 | 15-May-14 | 5-Feb-14 | 6-Nov-13 | 1-Aug-13 | 9-May-13 | |||
Dividend per share (in dollars per share) | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | $0.25 | |||
Record date | 19-Feb-15 | 20-Nov-14 | 21-Aug-14 | 29-May-14 | 20-Feb-14 | 21-Nov-13 | 22-Aug-13 | 23-May-13 | |||
Total amount | $111 | $111 | $111 | $111 | $112 | $113 | $114 | $114 | $444 | $453 | $463 |
Payment date | 17-Mar-15 | 9-Dec-14 | 9-Sep-14 | 17-Jun-14 | 18-Mar-14 | 10-Dec-13 | 10-Sep-13 | 11-Jun-13 |
Stockholders_Equity_2_Details
Stockholders' Equity 2 (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2012 | 14-May-14 | Jan. 31, 2012 | |
Equity [Abstract] | ||||||
Accumulated other comprehensive loss | ($418,000,000) | ($155,000,000) | ($171,000,000) | |||
Rights plan, Beneficial ownership with exclusion | 20% or more | |||||
Rights plan, Grandfathered maximum shares | 126,562,500 | |||||
Rights plan, Grandfathered affiliates percentage of shares outstanding | 0.10% | |||||
Rights plan, Beneficial ownership | more than 50% | |||||
Rights plan, Effect of tender offer | 20% or more | |||||
Rights plan, Shares | 0.001 shares | |||||
Rights plan, Purchase price (in dollars per share) | 100 | |||||
Rights plan, Exercise price (in dollars per share) | 100 | |||||
Rights plan, Qualifying offer percentage | 10.00% | |||||
Rights plan, Redemption price and term | $0.001 per Right, and the Rights Agreement expire November 30, 2015 | |||||
Stock Repurchase Program [Line Items] | ||||||
Accelerated share repurchase, Value | 0 | |||||
Additional Paid-in Capital | ||||||
Stock Repurchase Program [Line Items] | ||||||
Accelerated share repurchase, Value | -125,000,000 | |||||
Treasury Stock | ||||||
Stock Repurchase Program [Line Items] | ||||||
Accelerated share repurchase, Value | 125,000,000 | |||||
Stock Repurchase Program | ||||||
Stock Repurchase Program [Line Items] | ||||||
Stock repurchase program, Authorized amount | 1,000,000,000 | |||||
Shares of common stock repurchased | 7,200,000 | |||||
Value of common stock repurchased | 215,000,000 | |||||
Remaining authorized common stock repurchase amount | 785,000,000 | |||||
Previous Stock Repurchase Program | ||||||
Stock Repurchase Program [Line Items] | ||||||
Shares of common stock repurchased | 16,300,000 | |||||
Value of common stock repurchased | 505,000,000 | |||||
Remaining authorized common stock repurchase amount | 0 | |||||
Accelerated Share Repurchase Agreement | ||||||
Stock Repurchase Program [Line Items] | ||||||
Stock repurchase program, Authorized amount | 500,000,000 | |||||
Number of additional shares received under accelerated share repurchase agreement | 3,700,000 | |||||
Accelerated Share Repurchase Agreement | Additional Paid-in Capital | ||||||
Stock Repurchase Program [Line Items] | ||||||
Accelerated share repurchase, Value | -125,000,000 | |||||
Accelerated Share Repurchase Agreement | Treasury Stock | ||||||
Stock Repurchase Program [Line Items] | ||||||
Accelerated share repurchase, Value | 125,000,000 |
Income_from_Continuing_Operati2
Income from Continuing Operations Per Common Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Basic income from continuing operations per common share: | |||
Income from continuing operations | $810 | $887 | $921 |
Less: Income from continuing operations allocable to participating securities | -8 | -9 | -11 |
Income from continuing operations allocable to common shares | 802 | 878 | 910 |
Weighted average common shares outstanding | 439 | 446 | 456 |
Basic income from continuing operations per common share (in dollars per share) | $1.83 | $1.97 | $2 |
Diluted income from continuing operations per common share: | |||
Income from continuing operations | 810 | 887 | 921 |
Less: Income from continuing operations allocable to participating securities | -8 | -9 | -11 |
Income from continuing operations allocable to common shares | $802 | $878 | $910 |
Weighted average shares outstanding and common share equivalents: | |||
Weighted average common shares outstanding | 439 | 446 | 456 |
Weighted average effect of share-based payment awards | 2 | 2 | 1 |
Denominator in calculation of diluted income per share | 441 | 448 | 457 |
Diluted income from continuing operations per common share (in dollars per share) | $1.82 | $1.96 | $1.99 |
Income from continuing operations per common share, Other disclosures [Abstract] | |||
Number of anti-dilutive restricted stock awards and options excluded from calculation | 1 | 2 | 4 |
Weighted average restricted stock awards considered participating securities | 4 | 5 | 5 |
Stock_Plans_1_Details
Stock Plans 1 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Recognized share-based compensation | |||
Share-based compensation expense before tax | $87 | $81 | $77 |
Income tax benefit | -28 | -26 | -25 |
Net share-based compensation expense | 59 | 55 | 52 |
Costs of Licensing and Maintenance | |||
Recognized share-based compensation | |||
Share-based compensation expense before tax | 5 | 4 | 3 |
Cost of Professional Services | |||
Recognized share-based compensation | |||
Share-based compensation expense before tax | 4 | 4 | 4 |
Selling and Marketing | |||
Recognized share-based compensation | |||
Share-based compensation expense before tax | 30 | 28 | 30 |
General and Administrative | |||
Recognized share-based compensation | |||
Share-based compensation expense before tax | 29 | 26 | 23 |
Product Development and Enhancements | |||
Recognized share-based compensation | |||
Share-based compensation expense before tax | $19 | $19 | $17 |
Stock_Plans_2_Details
Stock Plans 2 (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Unrecognized share-based compensation costs | |
Unrecognized share-based compensation costs | $100 |
Weighted average period expected to be recognized (in years) | 2 years 0 months 0 days |
Stock Option Awards | |
Unrecognized share-based compensation costs | |
Unrecognized share-based compensation costs | 6 |
Weighted average period expected to be recognized (in years) | 1 year 9 months 18 days |
Restricted Stock Units | |
Unrecognized share-based compensation costs | |
Unrecognized share-based compensation costs | 16 |
Weighted average period expected to be recognized (in years) | 1 year 10 months 24 days |
Restricted Stock Awards | |
Unrecognized share-based compensation costs | |
Unrecognized share-based compensation costs | 55 |
Weighted average period expected to be recognized (in years) | 1 year 10 months 24 days |
Performance Share Units | |
Unrecognized share-based compensation costs | |
Unrecognized share-based compensation costs | $23 |
Weighted average period expected to be recognized (in years) | 2 years 3 months 18 days |
Stock_Plans_3_Details
Stock Plans 3 (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | |
Options outstanding vested and expected to vest | ||
Number of shares | 3 | |
Weighted average exercise price (in dollars per share) | $26.92 | |
Weighted average remaining contractual life (in years) | 7 years 4 months 24 days | |
Aggregate intrinsic value | $16.90 | [1] |
Options Outstanding Vested | ||
Options outstanding vested and expected to vest | ||
Number of shares | 1.2 | |
Weighted average exercise price (in dollars per share) | $25.92 | |
Weighted average remaining contractual life (in years) | 6 years 8 months 12 days | |
Aggregate intrinsic value | 7.8 | [1] |
Options Outstanding Expected to Vest | ||
Options outstanding vested and expected to vest | ||
Number of shares | 1.8 | [2] |
Weighted average exercise price (in dollars per share) | $27.56 | [2] |
Weighted average remaining contractual life (in years) | 7 years 10 months 24 days | [2] |
Aggregate intrinsic value | $9.10 | [1],[2] |
[1] | These amounts represent the difference between the exercise price and $32.61, the closing price of the Companybs common stock on MarchB 31, 2015, the last trading day of the Companybs fiscal year as reported on the NASDAQ Stock Market for all in-the-money options. | |
[2] | Outstanding options expected to vest are net of estimated future forfeitures. |
Stock_Plans_4_Details
Stock Plans 4 (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Stock option activity | |||
Number of shares, Outstanding beginning balance | 3.7 | 6 | 5.8 |
Weighted average exercise price, Outstanding beginning balance (in dollars per share) | $26.13 | $25.17 | $23.52 |
Number of shares, Granted | 0.9 | 1.7 | 1.8 |
Weighted average exercise price, Granted (in dollars per share) | $29.13 | $27.86 | $24.39 |
Number of shares, Exercised | -0.9 | -3.5 | -1.2 |
Weighted average exercise price, Exercised (in dollars per share) | $25.46 | $25.06 | $17.17 |
Number of shares, Expired or terminated | -0.5 | -0.5 | -0.4 |
Weighted average exercise price, Expired or terminated (in dollars per share) | $26.81 | $25.95 | $22.09 |
Number of shares, Outstanding ending balance | 3.2 | 3.7 | 6 |
Weighted average exercise price, Outstanding ending balance (in dollars per share) | $27.02 | $26.13 | $25.17 |
Options exercisable | |||
Number of shares, Options exercisable | 1.2 | 0.7 | 3.7 |
Weighted average exercise price, Options exercisable (in dollars per share) | $25.92 | $26.07 | $26.18 |
Stock_Plans_5_Details
Stock Plans 5 (Details) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Summary of stock option information by exercise price range | |
Shares, Options outstanding | 3.2 |
Aggregate intrinsic value, Options outstanding | $17.60 |
Weighted average remaining contractual life, Options outstanding (in years) | 7 years 6 months 0 days |
Weighted average exercise price, Options outstanding (in dollars per share) | $27.02 |
Shares, Options exercisable | 1.2 |
Aggregate intrinsic value, Options exercisable | 7.8 |
Weighted average remaining contractual life, Options exercisable (in years) | 6 years 8 months 12 days |
Weighted average exercise price, Options exercisable (in dollars per share) | $25.92 |
Exercise Price Range $19.93 - $25.00 | |
Summary of stock option information by exercise price range | |
Range of exercise prices, Minimum (in dollars per share) | $19.93 |
Range of exercise prices, Maximum (in dollars per share) | $25 |
Shares, Options outstanding | 0.9 |
Aggregate intrinsic value, Options outstanding | 7.9 |
Weighted average remaining contractual life, Options outstanding (in years) | 6 years 9 months 18 days |
Weighted average exercise price, Options outstanding (in dollars per share) | $23.56 |
Shares, Options exercisable | 0.6 |
Aggregate intrinsic value, Options exercisable | 5.2 |
Weighted average remaining contractual life, Options exercisable (in years) | 7 years 0 months 0 days |
Weighted average exercise price, Options exercisable (in dollars per share) | $23.46 |
Exercise Price Range $25.01 - $30.00 | |
Summary of stock option information by exercise price range | |
Range of exercise prices, Minimum (in dollars per share) | $25.01 |
Range of exercise prices, Maximum (in dollars per share) | $30 |
Shares, Options outstanding | 1.5 |
Aggregate intrinsic value, Options outstanding | 8.1 |
Weighted average remaining contractual life, Options outstanding (in years) | 7 years 8 months 12 days |
Weighted average exercise price, Options outstanding (in dollars per share) | $27.31 |
Shares, Options exercisable | 0.4 |
Aggregate intrinsic value, Options exercisable | 2.2 |
Weighted average remaining contractual life, Options exercisable (in years) | 6 years 10 months 24 days |
Weighted average exercise price, Options exercisable (in dollars per share) | $26.50 |
Exercise Price Range $30.01 - over | |
Summary of stock option information by exercise price range | |
Range of exercise prices, Minimum (in dollars per share) | $30.01 |
Shares, Options outstanding | 0.8 |
Aggregate intrinsic value, Options outstanding | 1.6 |
Weighted average remaining contractual life, Options outstanding (in years) | 7 years 10 months 24 days |
Weighted average exercise price, Options outstanding (in dollars per share) | $30.52 |
Shares, Options exercisable | 0.2 |
Aggregate intrinsic value, Options exercisable | $0.40 |
Weighted average remaining contractual life, Options exercisable (in years) | 5 years 7 months 6 days |
Weighted average exercise price, Options exercisable (in dollars per share) | $31.05 |
Stock_Plans_6_Details
Stock Plans 6 (Details) (USD $) | 12 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | ||||
Weighted average estimated values and assumptions for employee stock option grants | ||||||
Weighted average fair value (in dollars per share) | $5.61 | $5.20 | $4.26 | |||
Dividend yield | 3.32% | 4.05% | 4.06% | |||
Expected volatility factor | 27.00% | [1] | 30.00% | [1] | 31.00% | [1] |
Risk-free interest rate | 2.00% | [2] | 1.50% | [2] | 1.00% | [2] |
Expected life (in years) | 6 years | [3] | 6 years | [3] | 4 years 10 months 24 days | [3] |
[1] | Expected volatility is measured using historical daily price changes of the Companybs stock over the respective expected term of the options and the implied volatility derived from the market prices of the Companybs traded options. | |||||
[2] | The risk-free rate for periods within the contractual term of the stock options is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||
[3] | The expected life is the number of years the Company estimates that options will be outstanding prior to exercise. The Companybs computation of expected life was determined based on the simplified method (the average of the vesting period and option term). |
Stock_Plans_7_Details
Stock Plans 7 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Summary of information on options exercised | |||
Cash received from options exercised | $22 | $88 | $21 |
Intrinsic value of options exercised | $3 | $19 | $10 |
Stock_Plans_8_Details
Stock Plans 8 (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted Stock Awards (RSAs) | |||
Summary of RSA and RSU activity under the Plans | |||
Shares, Outstanding beginning balance | 4.3 | 5 | 5.7 |
Weighted average grant date fair value, Outstanding beginning balance (in dollars per share) | $26.38 | $24.98 | $22.41 |
Shares, Granted | 3.1 | 2.7 | 3.5 |
Weighted average grant date fair value, Granted (in dollars per share) | $28.97 | $27.06 | $26.21 |
Shares, Released | -2.2 | -2.6 | -3.6 |
Weighted average grant date fair value, Released (in dollars per share) | $26.36 | $24.49 | $22.22 |
Shares, Forfeitures | -0.9 | -0.8 | -0.6 |
Weighted average grant date fair value, Forfeitures (in dollars per share) | $27.79 | $26.14 | $24.69 |
Shares, Outstanding ending balance | 4.3 | 4.3 | 5 |
Weighted average grant date fair value, Outstanding ending balance (in dollars per share) | $27.99 | $26.38 | $24.98 |
Restricted Stock Units (RSUs) | |||
Summary of RSA and RSU activity under the Plans | |||
Shares, Outstanding beginning balance | 1.4 | 1.4 | 1.2 |
Weighted average grant date fair value, Outstanding beginning balance (in dollars per share) | $24.47 | $23.28 | $21.91 |
Shares, Granted | 0.8 | 0.7 | 0.9 |
Weighted average grant date fair value, Granted (in dollars per share) | $26.99 | $25.45 | $23.72 |
Shares, Released | -0.6 | -0.6 | -0.6 |
Weighted average grant date fair value, Released (in dollars per share) | $24.64 | $23.01 | $21.03 |
Shares, Forfeitures | -0.2 | -0.1 | -0.1 |
Weighted average grant date fair value, Forfeitures (in dollars per share) | $25.59 | $24.41 | $23.38 |
Shares, Outstanding ending balance | 1.4 | 1.4 | 1.4 |
Weighted average grant date fair value, Outstanding ending balance (in dollars per share) | $25.74 | $24.47 | $23.28 |
Stock_Plans_9_Details
Stock Plans 9 (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 3.1 | 2.7 | 3.5 |
Weighted average grant date fair value (in dollars per share) | $28.97 | $27.06 | $26.21 |
Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.8 | 0.7 | 0.9 |
Weighted average grant date fair value (in dollars per share) | $26.99 | $25.45 | $23.72 |
Fiscal Year 2014 Incentive Plan Year | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 1 year | ||
Fiscal Year 2014 Incentive Plan Year | Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.7 | ||
Weighted average grant date fair value (in dollars per share) | $29.91 | ||
Fiscal Year 2014 Incentive Plan Year | Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.1 | ||
Weighted average grant date fair value (in dollars per share) | $28.92 | ||
Fiscal Year 2013 Incentive Plan Year | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 1 year | ||
Fiscal Year 2013 Incentive Plan Year | Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.4 | ||
Weighted average grant date fair value (in dollars per share) | $27.11 | ||
Fiscal Year 2013 Incentive Plan Year | Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.1 | ||
Weighted average grant date fair value (in dollars per share) | $26.12 | ||
Fiscal Year 2012 Incentive Plan Year | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 1 year | ||
Fiscal Year 2012 Incentive Plan Year | Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 1.2 | ||
Weighted average grant date fair value (in dollars per share) | $26.39 | ||
Fiscal Year 2012 Incentive Plan Year | Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.2 | ||
Weighted average grant date fair value (in dollars per share) | $25.40 | ||
Fiscal Year 2010 Incentive Plan Year | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 3 years | ||
Shares | 0.2 | ||
Weighted average grant date fair value (in dollars per share) | $26.39 | ||
Fiscal Year 2014 Sales Retention Equity Program | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 1 year | ||
Fiscal Year 2014 Sales Retention Equity Program | Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.2 | ||
Weighted average grant date fair value (in dollars per share) | $28.69 | ||
Fiscal Year 2014 Sales Retention Equity Program | Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.1 | ||
Weighted average grant date fair value (in dollars per share) | $25.73 | ||
Fiscal Year 2013 Sales Retention Equity Program | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 1 year | ||
Fiscal Year 2013 Sales Retention Equity Program | Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.2 | ||
Weighted average grant date fair value (in dollars per share) | $27.11 | ||
Fiscal Year 2013 Sales Retention Equity Program | Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.1 | ||
Weighted average grant date fair value (in dollars per share) | $24.13 | ||
Fiscal Year 2012 Sales Retention Equity Program | |||
Summary of PSUs granted under long-term incentive plans | |||
Performance period (in years) | 1 year | ||
Fiscal Year 2012 Sales Retention Equity Program | Restricted Stock Awards (RSAs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.2 | ||
Weighted average grant date fair value (in dollars per share) | $26.39 | ||
Fiscal Year 2012 Sales Retention Equity Program | Restricted Stock Units (RSUs) | |||
Summary of PSUs granted under long-term incentive plans | |||
Shares | 0.1 | ||
Weighted average grant date fair value (in dollars per share) | $23.41 |
Stock_Plans_10_Details
Stock Plans 10 (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Tax benefit from share-based incentive awards deductible for tax purposes | $1 | $5 | $2 |
Capitalized share-based compensation costs | 0 | 0 | 0 |
Closing price of Company's common stock (in dollars per share) | $32.61 | ||
Computation of expected life, Simplified method | The Companybs computation of expected life was determined based on the simplified method (the average of the vesting period and option term). | ||
Total fair value on the vesting date of RSAs and RSUs released | $75 | $77 | $92 |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards vesting per year | one-third | ||
Award vesting period from grant date (in years) | 3 years | ||
Restricted Stock Awards (RSAs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period from grant date (in years) | 3 years | ||
Restricted Stock Awards (RSAs) | 1-year PSUs for Incentive Plan Years | Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 34.00% | ||
Restricted Stock Awards (RSAs) | 1-year PSUs for Incentive Plan Years | First Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
Restricted Stock Awards (RSAs) | 1-year PSUs for Incentive Plan Years | Second Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
Restricted Stock Awards (RSAs) | 1-year PSUs for Sales Retention Equity Programs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period from grant date (in years) | 3 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period from grant date (in years) | 3 years | ||
Restricted Stock Units (RSUs) | 1-year PSUs for Incentive Plan Years | Grant Date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 34.00% | ||
Restricted Stock Units (RSUs) | 1-year PSUs for Incentive Plan Years | First Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
Restricted Stock Units (RSUs) | 1-year PSUs for Incentive Plan Years | Second Anniversary | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
Restricted Stock Units (RSUs) | 1-year PSUs for Sales Retention Equity Programs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period from grant date (in years) | 3 years | ||
Maximum | Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term from grant date (in years) | 10 years | ||
2011 Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 45 | ||
2011 Incentive Plan | Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 10 | ||
2011 Incentive Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term from grant date (in years) | 10 years | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of stock closing price on last day of offer period that ESPP participants can purchase Company stock | 95.00% | ||
Number of shares issued under ESPP | 0.2 | 0.2 | 0.2 |
Average price per share issued under ESPP (in dollars per share) | $28.06 | $29.62 | $22.65 |
Number of shares available for future issuances under ESPP | 29.4 |
Income_Taxes_1_Details
Income Taxes 1 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Income from continuing operations before income taxes attributable to domestic and foreign operations | |||
Domestic | $737 | $683 | $877 |
Foreign | 378 | 333 | 383 |
Income from continuing operations before income taxes | $1,115 | $1,016 | $1,260 |
Income_Taxes_2_Details
Income Taxes 2 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Current: | |||
Federal | $284 | $184 | $261 |
State | 37 | 33 | 39 |
Foreign | 56 | -19 | 26 |
Total current | 377 | 198 | 326 |
Deferred: | |||
Federal | -74 | -82 | -18 |
State | -12 | -12 | 3 |
Foreign | 14 | 25 | 28 |
Total deferred | -72 | -69 | 13 |
Total: | |||
Federal | 210 | 102 | 243 |
State | 25 | 21 | 42 |
Foreign | 70 | 6 | 54 |
Income tax expense from continuing operations | $305 | $129 | $339 |
Income_Taxes_3_Details
Income Taxes 3 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of effective income tax rate reconciliation | |||
Tax expense at U.S. federal statutory tax rate | $390 | $356 | $440 |
Effect of international operations | -91 | -147 | -131 |
U.S. federal and state tax contingencies | 1 | -123 | -8 |
Domestic manufacturing deduction | -23 | -24 | -21 |
State taxes, net of U.S. federal tax benefit | 15 | 19 | 23 |
Valuation allowance | 8 | 23 | 11 |
Other, net | 5 | 25 | 25 |
Income tax expense from continuing operations | $305 | $129 | $339 |
Income_Taxes_4_Details
Income Taxes 4 (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Share-based compensation | $31 | $30 |
Accrued expenses | 36 | 36 |
Net operating losses | 96 | 131 |
Total deferred tax assets | 604 | 659 |
Valuation allowances | -85 | -87 |
Total deferred tax assets, net of valuation allowance | 519 | 572 |
Deferred tax liabilities: | ||
Depreciation | 3 | 6 |
Other intangible assets | 17 | 34 |
Total deferred tax liabilities | 161 | 274 |
Net deferred tax asset | 358 | 298 |
Modified Accrual Basis Accounting for Revenue | ||
Deferred tax assets: | ||
Deferred tax assets, Other | 349 | 373 |
Intangible Assets Amortizable for Tax Purposes | ||
Deferred tax assets: | ||
Deferred tax assets, Other | 3 | 4 |
Deductible State Tax and Interest Benefits | ||
Deferred tax assets: | ||
Deferred tax assets, Other | 20 | 20 |
Other | ||
Deferred tax assets: | ||
Deferred tax assets, Other | 69 | 65 |
Purchased Software | ||
Deferred tax liabilities: | ||
Capitalized software | 48 | 76 |
Internally Developed Software | ||
Deferred tax liabilities: | ||
Capitalized software | $93 | $158 |
Income_Taxes_5_Details
Income Taxes 5 (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Roll-forward of uncertain tax positions | ||
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 | $170 |
Income_Taxes_6_Details
Income Taxes 6 (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Nov. 30, 2013 | Mar. 31, 2015 |
USD ($) | USD ($) | Brazilian Tax Authority | Brazilian Tax Authority | |
BRL | USD ($) | |||
Income Tax Disclosure [Abstract] | ||||
Total deferred tax assets, net of valuation allowance | $519 | $572 | ||
U.S. federal, state and foreign net operating loss carryforwards | 542 | 672 | ||
Net operating loss carryforwards subject to expiration | 412 | |||
Net operating loss carryforwards expiration period | between 2015 and 2034 | |||
Net operating loss carryforwards not subject to expiration | 130 | |||
Change in valuation allowance | -2 | 4 | ||
Unremitted earnings of foreign subsidiaries | 2,759 | 2,349 | ||
Determination of tax on unremitted foreign earnings is not practicable | It is not practicable to determine the amount of tax associated with such unremitted earnings. | |||
Liability for uncertain tax positions, Gross | 162 | 202 | ||
Liability for uncertain tax positions, Current | 3 | 0 | ||
Deferred tax assets related to uncertain tax positions | 16 | 17 | ||
Unrecognized tax benefits that would affect effective tax rate | 109 | 127 | ||
Amount of interest and penalties accrued | 28 | 32 | ||
Decrease in amount of interest and penalties | -4 | -72 | ||
Period of unrecognized tax benefit adjustment (in months) | 12 months | |||
Income Tax Examination [Line Items] | ||||
Tax assessment including interest and penalties | 211 | $66 |
Supplemental_Statement_of_Cash1
Supplemental Statement of Cash Flows Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Cash Flow Information [Abstract] | |||
Interest payments, net | $75 | $70 | $61 |
Income taxes paid, net from continuing operations | 411 | 489 | 309 |
Excess tax benefits from share-based incentive awards included in financing activities from continuing operations | 3 | 6 | 8 |
Share-based incentive awards, Non-cash financing activities | 44 | 48 | 64 |
Withholding taxes on share-based incentive awards, Non-cash financing activities | 28 | 28 | 34 |
Discretionary stock contributions to CA, Inc. Savings Harvest Plan, Non-cash financing activities | 26 | 28 | 29 |
Treasury common shares issued in connection with Employee Stock Purchase Plan, Non-cash financing activities | $5 | $4 | $6 |
Segment_and_Geographic_Informa2
Segment and Geographic Information 1 (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Segment information | ||||||
Revenue | $4,262 | $4,412 | $4,504 | |||
Income from continuing operations before interest and income taxes | 1,162 | 1,070 | 1,304 | |||
Depreciation | 71 | 84 | 104 | |||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Segment profit | 1,162 | 1,070 | 1,304 | |||
Software development costs capitalized | 0 | -33 | -152 | |||
Share-based compensation expense | 87 | 81 | 77 | |||
Other expenses (gains), net | 17 | [1] | 170 | [1] | 0 | |
Interest expense, net | 47 | 54 | 44 | |||
Income from continuing operations before income taxes | 1,115 | 1,016 | 1,260 | |||
Purchased Software Products | ||||||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Amortization of intangible assets | 124 | 116 | 162 | [2] | ||
Other Intangible Assets | ||||||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Amortization of intangible assets | 58 | 60 | 54 | |||
Internally Developed Software Products | ||||||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Amortization of intangible assets | 149 | 155 | 143 | |||
Mainframe Solutions | ||||||
Segment information | ||||||
Revenue | 2,392 | 2,478 | 2,489 | |||
Expenses | 970 | 996 | 1,038 | |||
Income from continuing operations before interest and income taxes | 1,422 | 1,482 | 1,451 | |||
Segment operating margin | 59.00% | 60.00% | 58.00% | |||
Depreciation | 43 | 52 | 63 | |||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Segment profit | 1,422 | 1,482 | 1,451 | |||
Enterprise Solutions | ||||||
Segment information | ||||||
Revenue | 1,519 | 1,555 | 1,633 | |||
Expenses | 1,353 | 1,440 | 1,520 | |||
Income from continuing operations before interest and income taxes | 166 | 115 | 113 | |||
Segment operating margin | 11.00% | 7.00% | 7.00% | |||
Depreciation | 28 | 32 | 41 | |||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Segment profit | 166 | 115 | 113 | |||
Services | ||||||
Segment information | ||||||
Revenue | 351 | 379 | 382 | |||
Expenses | 342 | 357 | 358 | |||
Income from continuing operations before interest and income taxes | 9 | 22 | 24 | |||
Segment operating margin | 3.00% | 6.00% | 6.00% | |||
Depreciation | 0 | 0 | 0 | |||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Segment profit | 9 | 22 | 24 | |||
Total Reportable Segments | ||||||
Segment information | ||||||
Revenue | 4,262 | 4,412 | 4,504 | |||
Expenses | 2,665 | 2,793 | 2,916 | |||
Income from continuing operations before interest and income taxes | 1,597 | 1,619 | 1,588 | |||
Segment operating margin | 37.00% | 37.00% | 35.00% | |||
Depreciation | 71 | 84 | 104 | |||
Reconciliation of segment profit to income from continuing operations before income taxes | ||||||
Segment profit | $1,597 | $1,619 | $1,588 | |||
[1] | Other expenses (gains), net consists of costs associated with the Fiscal 2014 Plan and other miscellaneous costs. | |||||
[2] | Amount includes impairment recorded in fiscal year 2013 of approximately $55 million relating to purchased software (see NoteB 6, bLong Lived Assets,b in the Notes to the Consolidated Financial Statements for additional information). |
Segment_and_Geographic_Informa3
Segment and Geographic Information 2 (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Information about Company by geographic area | ||||||
Total revenue | $4,262 | $4,412 | $4,504 | |||
Property and equipment, net | 252 | 295 | 311 | |||
Total assets | 10,979 | 12,016 | 11,815 | |||
Total liabilities | 5,354 | 6,446 | 6,365 | |||
From Unaffiliated Customers | ||||||
Information about Company by geographic area | ||||||
Total revenue | 4,262 | 4,412 | 4,504 | |||
Between Geographic Areas | ||||||
Information about Company by geographic area | ||||||
Total revenue | 0 | [1] | 0 | [1] | 0 | [1] |
United States | ||||||
Information about Company by geographic area | ||||||
Total revenue | 3,053 | 3,091 | 3,139 | |||
Property and equipment, net | 112 | 125 | 138 | |||
Total assets | 8,128 | 8,908 | 8,897 | |||
Total liabilities | 4,047 | 4,919 | 4,802 | |||
United States | From Unaffiliated Customers | ||||||
Information about Company by geographic area | ||||||
Total revenue | 2,615 | 2,645 | 2,679 | |||
United States | Between Geographic Areas | ||||||
Information about Company by geographic area | ||||||
Total revenue | 438 | [1] | 446 | [1] | 460 | [1] |
EMEA | ||||||
Information about Company by geographic area | ||||||
Total revenue | 1,008 | [2] | 1,093 | [2] | 1,106 | [2] |
Property and equipment, net | 97 | [2] | 116 | [2] | 108 | [2] |
Total assets | 1,874 | [2] | 2,076 | [2] | 1,911 | [2] |
Total liabilities | 809 | [2] | 890 | [2] | 939 | [2] |
EMEA | From Unaffiliated Customers | ||||||
Information about Company by geographic area | ||||||
Total revenue | 1,008 | [2] | 1,093 | [2] | 1,106 | [2] |
EMEA | Between Geographic Areas | ||||||
Information about Company by geographic area | ||||||
Total revenue | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Other | ||||||
Information about Company by geographic area | ||||||
Total revenue | 639 | 674 | 719 | |||
Property and equipment, net | 43 | 54 | 65 | |||
Total assets | 977 | 1,032 | 1,007 | |||
Total liabilities | 498 | 637 | 624 | |||
Other | From Unaffiliated Customers | ||||||
Information about Company by geographic area | ||||||
Total revenue | 639 | 674 | 719 | |||
Other | Between Geographic Areas | ||||||
Information about Company by geographic area | ||||||
Total revenue | 0 | [1] | 0 | [1] | 0 | [1] |
Eliminations | ||||||
Information about Company by geographic area | ||||||
Total revenue | -438 | -446 | -460 | |||
Property and equipment, net | 0 | 0 | 0 | |||
Total assets | 0 | 0 | 0 | |||
Total liabilities | 0 | 0 | 0 | |||
Eliminations | From Unaffiliated Customers | ||||||
Information about Company by geographic area | ||||||
Total revenue | 0 | 0 | 0 | |||
Eliminations | Between Geographic Areas | ||||||
Information about Company by geographic area | ||||||
Total revenue | ($438) | [1] | ($446) | [1] | ($460) | [1] |
[1] | Represents royalties from foreign subsidiaries determined as a percentage of certain amounts invoiced to customer. | |||||
[2] | Consists of Europe, the Middle East and Africa. |
Segment_and_Geographic_Informa4
Segment and Geographic Information 3 (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Customer | Customer | Customer | |
Segment Reporting Information, Additional Information [Abstract] | |||
Number of customers accounting for 10% or more of total revenue | 0 | 0 | 0 |
Purchased Software | |||
Segment Reporting Information [Line Items] | |||
Impairment | 0 | 55 | |
Fiscal 2014 Plan | |||
Segment Reporting Information [Line Items] | |||
Rebalancing charges | 168 | ||
Mainframe Solutions | |||
Segment Reporting Information [Line Items] | |||
Severance costs | 3 | ||
Mainframe Solutions | Fiscal 2015 Severance Actions | |||
Segment Reporting Information [Line Items] | |||
Severance costs | 17 | ||
Enterprise Solutions | |||
Segment Reporting Information [Line Items] | |||
Intellectual property assets transaction value | 35 | ||
Severance costs | 10 | ||
Impairment | 21 | ||
Enterprise Solutions | Purchased Software | |||
Segment Reporting Information [Line Items] | |||
Impairment | 12 | 55 | |
Enterprise Solutions | Fiscal 2015 Severance Actions | |||
Segment Reporting Information [Line Items] | |||
Severance costs | 15 | ||
Services | |||
Segment Reporting Information [Line Items] | |||
Severance costs | 2 | ||
Services | Fiscal 2015 Severance Actions | |||
Segment Reporting Information [Line Items] | |||
Severance costs | 8 |
Profit_Sharing_Plan_Details
Profit Sharing Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Defined contribution plan, Costs recognized | $38 | $41 | $43 |
Discretionary stock contributions | $24 | $26 | $28 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at beginning of period | $19 | $24 | $16 | |||
Additions/(deductions) charged/(credited) to costs and expenses | 1 | 4 | 9 | |||
Deductions | -3 | [1] | -9 | [1] | -1 | [1] |
Balance at end of period | $17 | $19 | $24 | |||
[1] | Write-off of amounts against allowance provided |