Ca (CA) 10-Q 29 Jan 10 2010 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	9 Months Ended Dec. 31, 2009	Jan. 22, 2010	Sep. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	CA, INC.
Entity Central Index Key	0000356028
Document Type	10-Q
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			7.7
Entity Common Stock, Shares Outstanding		520,026,576

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions	Dec. 31, 2009	Mar. 31, 2009
CURRENT ASSETS
Cash and cash equivalents	$2,624	$2,712	[1]
Trade and installment accounts receivable, net	932	839	[1]
Deferred income taxes - current	518	513	[1]
Other current assets	144	105	[1]
TOTAL CURRENT ASSETS	4,218	4,169	[1]
Installment accounts receivable, due after one year, net	46	128	[1]
Property and equipment, net of accumulated depreciation of $1,112 and $1,015, respectively	454	442	[1]
Purchased software products, net	150	155	[1]
Goodwill	5,513	5,364	[1]
Deferred income taxes - noncurrent	234	268	[1]
Other noncurrent assets, net	779	715	[1]
TOTAL ASSETS	11,394	11,241	[1]
CURRENT LIABILITIES
Current portion of long-term debt and loans payable	15	621	[1]
Accounts payable	79	120	[1]
Accrued salaries, wages and commissions	284	306	[1]
Accrued expenses and other current liabilities	342	340	[1]
Deferred revenue (billed or collected) - current	2,287	2,431	[1]
Taxes payable, other than income taxes payable - current	80	85	[1]
Federal, state and foreign income taxes payable - current	89	84	[1]
Deferred income taxes - current	50	40	[1]
TOTAL CURRENT LIABILITIES	3,226	4,027	[1]
Long-term debt, net of current portion	1,530	1,287	[1]
Federal, state and foreign income taxes payable - noncurrent	359	284	[1]
Deferred income taxes - noncurrent	121	136	[1]
Deferred revenue (billed or collected) - noncurrent	1,006	1,000	[1]
Other noncurrent liabilities	132	145	[1]
TOTAL LIABILITIES	6,374	6,879	[1]
STOCKHOLDERS' EQUITY
Preferred stock, no par value, 10,000,000 shares authorized; No shares issued and outstanding	0	0	[1]
Common stock, $0.10 par value, 1,100,000,000 shares authorized; 589,695,081 and 589,695,081 shares issued; 514,916,677 and 514,292,558 shares outstanding, respectively	59	59	[1]
Additional paid-in capital	3,630	3,686	[1]
Retained earnings	3,280	2,673	[1]
Accumulated other comprehensive loss	(111)	(183)	[1]
Treasury stock, at cost, 74,778,404 shares and 75,402,523 shares, respectively	(1,838)	(1,873)	[1]
TOTAL STOCKHOLDERS' EQUITY	5,020	4,362	[1]
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$11,394	$11,241	[1]
[1]The Condensed Consolidated Balance Sheet as of March 31, 2009 has been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, "Basis of Presentation," in the Notes to these Condensed Consolidated Financial Statements.

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Mar. 31, 2009
ASSETS
Accumulated depreciation	$1,112	$1,015	[1]
STOCKHOLDERS' EQUITY
Preferred stock, no par value	0	0	[1]
Preferred stock, shares authorized	10,000,000	10,000,000	[1]
Preferred stock, shares issued	0	0	[1]
Preferred stock, shares outstanding	0	0	[1]
Common stock, par value	0.1	0.1	[1]
Common stock, shares authorized	1,100,000,000	1,100,000,000	[1]
Common stock, shares issued	589,695,081	589,695,081	[1]
Common stock, shares outstanding	514,916,677	514,292,558	[1]
Treasury stock, shares	74,778,404	75,402,523	[1]
[1]The Condensed Consolidated Balance Sheet as of March 31, 2009 has been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, "Basis of Presentation," in the Notes to these Condensed Consolidated Financial Statements.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008		9 Months Ended Dec. 31, 2009	9 Months Ended Dec. 31, 2008
REVENUE
Subscription and maintenance revenue	$1,000	$919	[2]	$2,919	$2,859	[2]
Professional services	74	87	[2]	216	274	[2]
Software fees and other	54	36	[2]	115	103	[2]
TOTAL REVENUE	1,128	1,042	[2]	3,250	3,236	[2]
EXPENSES
Costs of licensing and maintenance	73	70	[2]	212	225	[2]
Cost of professional services	67	76	[2]	193	239	[2]
Amortization of capitalized software costs	34	31	[2]	102	91	[2]
Selling and marketing	316	307	[2]	883	915	[2]
General and administrative	129	110	[2]	359	342	[2]
Product development and enhancements	119	115	[2]	353	358	[2]
Depreciation and amortization of other intangible assets	40	36	[2]	118	109	[2]
Other (gains) expenses, net	(3)	(14)	[2]	11	4	[2]
Restructuring and other	2	2	[2]	4	6	[2]
TOTAL EXPENSES BEFORE INTEREST AND INCOME TAXES	777	733	[2]	2,235	2,289	[2]
Income before interest and income taxes	351	309	[2]	1,015	947	[2]
Interest expense, net	23	16	[2]	62	40	[2]
Income before income taxes	328	293	[2]	953	907	[2]
Income tax expense	71	85	[2]	283	301	[2]
NET INCOME	$257	$208	[2]	$670	$606	[1],[2]
BASIC INCOME PER COMMON SHARE	0.49	0.4	[2]	1.28	1.17	[2]
Basic weighted average shares used in computation	515	514	[2]	516	513	[2]
DILUTED INCOME PER COMMON SHARE	0.49	0.39	[2]	1.27	1.15	[2]
Diluted weighted average shares used in computation	535	538	[2]	539	537	[2]
[1]The Condensed Consolidated Statement of Cash Flows for the nine months ended December 31, 2008 has been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, "Basis of Presentation," in the Notes to these Condensed Consolidated Financial Statements.
[2]The Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2008 have been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, "Basis of Presentation," in the Notes to these Condensed Consolidated Financial Statements.

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Dec. 31, 2009	3 Months Ended Dec. 31, 2008		9 Months Ended Dec. 31, 2009	9 Months Ended Dec. 31, 2008
OPERATING ACTIVITIES:
Net income	$257	$208	[2]	$670	$606	[1],[2]
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization				220	200	[1]
Provision for deferred income taxes				52	55	[1]
Provision for bad debts				3	10	[1]
Share based compensation expense				75	68	[1]
Amortization of discount on convertible debt				29	26	[1]
Loss (gain) on sale and disposal of assets				3	(2)	[1]
Foreign currency transaction (gains) losses, before taxes, net				(3)	62	[1]
Changes in other operating assets and liabilities, net of effect of acquisitions:
Decrease in trade and installment accounts receivable, net				13	175	[1]
Decrease in deferred revenue (billed or collected)				(266)	(414)	[1]
Increase in taxes payable, net				14	7	[1]
Decrease in accounts payable, accrued expenses and other				(39)	(77)	[1]
Decrease in accrued salaries, wages and commissions				(2)	(61)	[1]
Decrease in accrued restructuring charges				(40)	(79)	[1]
Changes in other operating assets and liabilities				(5)	(12)	[1]
NET CASH PROVIDED BY OPERATING ACTIVITIES				724	564	[1]
INVESTING ACTIVITIES:
Acquisitions, primarily goodwill, purchased software, and other intangible assets, net of cash acquired				(203)	(54)	[1]
Purchases of property and equipment				(57)	(64)	[1]
Capitalized software development costs				(133)	(102)	[1]
Other investing activities				(3)	7	[1]
NET CASH USED IN INVESTING ACTIVITIES				(396)	(213)	[1]
FINANCING ACTIVITIES:
Dividends paid				(63)	(62)	[1]
Purchases of common stock				(90)	(4)	[1]
Debt repayments				(1,203)	(501)	[1]
Debt borrowings				744	0	[1]
Debt issuance costs				(6)	0	[1]
Proceeds from call spread option				55	0	[1]
Exercise of common stock options and other				6	7	[1]
NET CASH USED IN FINANCING ACTIVITIES				(557)	(560)	[1]
DECREASE IN CASH AND CASH EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES ON CASH				(229)	(209)	[1]
Effect of exchange rate changes on cash				141	(217)	[1]
DECREASE IN CASH AND CASH EQUIVALENTS				(88)	(426)	[1]
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD				2,712	2,795	[1]
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$2,624	$2,369	[1]	$2,624	$2,369	[1]
[1]The Condensed Consolidated Statement of Cash Flows for the nine months ended December 31, 2008 has been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, "Basis of Presentation," in the Notes to these Condensed Consolidated Financial Statements.
[2]The Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2008 have been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, "Basis of Presentation," in the Notes to these Condensed Consolidated Financial Statements.

Basis of Presentation

Basis of Presentation
	9 Months Ended Dec. 31, 2009 USD / shares
Basis of Presentation [Abstract]
BASIS OF PRESENTATION	NOTE A BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements of CA, Inc. (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) 270, for interim financial information and with the instructions to Rule10-01 of RegulationS-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the Companys Consolidated Financial Statements and Notes thereto for the fiscal year ended March31, 2009 included in the Companys Current Report on Form 8-K dated November9, 2009 (2009 Annual Financial Statements). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal, recurring nature. 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 managements knowledge of current events and actions it may undertake in the future, these estimates may ultimately differ from actual results. Operating results for the three and nine months ended December31, 2009 are not necessarily indicative of the results that may be expected for the fiscal year ending March31, 2010. Certain prior year balances have been reclassified to conform to the current periods presentation. Basis of Revenue Recognition: The Company generates revenue from the following primary sources: (1)licensing software products; (2)providing customer technical support (referred to as maintenance); and (3)providing professional services, such as product implementation, consulting and education. Revenue is recorded net of applicable sales taxes. The Company begins to recognize revenue from 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 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. The Companys 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, if not notified by the customer to cancel the license agreement, the expiration of the acceptance period. Under the Companys subscription model, implemented in October2000, software license agreements typically combine the right to use specified software products, the right to maintenance, and the right to receive unspecified future software products for no additional fee during the term of the agree

Comprehensive Income

Comprehensive Income
	9 Months Ended Dec. 31, 2009 USD / shares
Comprehensive Income [Abstract]
COMPREHENSIVE INCOME	NOTE B COMPREHENSIVE INCOME Comprehensive income includes net income, unrealized gains on cash flow hedges and foreign currency translation adjustments. The components of comprehensive income for the three and nine months ended December31, 2009 and 2008 are as follows: Three Months Nine Months Ended December 31, Ended December 31, 2009 2008(1) 2009 2008(1) (in millions) Net income $ 257 $ 208 $ 670 $ 606 Net unrealized gain (loss)on cash flow hedges, net of tax 1 (5 ) 2 (5 ) Foreign currency translation adjustments (3 ) (21 ) 70 (68 ) Total comprehensive income $ 255 $ 182 $ 742 $ 533 (1) Net income for the three and nine months ended December31, 2008 has been revised to reflect the retrospective adoption of new accounting standards. For further information refer to Note A, Basis of Presentation, in the Notes to these Condensed Consolidated Financial Statements.

Income Per Common Share

Income Per Common Share
	9 Months Ended Dec. 31, 2009 USD / shares
Income Per Common Share [Abstract]
INCOME PER COMMON SHARE	NOTE C INCOME PER COMMON SHARE Effective April1, 2009, the Company adopted the requirements of FASB ASC 260-10-45 (previously FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities) for unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). These awards are treated as participating securities and are included in the computation of earnings per share under the two-class method. This adoption required all prior-period earnings per share data to be adjusted retrospectively. The implementation of this accounting standard and the adoption of FASB ASC 470-20 (previously FSP APB 14-1) resulted in a reduction of $0.01 and $0.04 in basic earnings per common share as reported in the Condensed Consolidated Statement of Operations for the three and nine months ended December31, 2008, respectively. Diluted earnings per common share for the three and nine months ended December31, 2008 was decreased by $0.01 for both periods. Under the two-class method, net earnings are allocated to common stock and participating securities. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards and convertible notes. The following table reconciles earnings per common share under the new methodology for the three and nine months ended December31, 2009 and 2008. Three Nine Months Ended Months Ended December 31, December 31, 2009 2008(1) 2009 2008(1) (in millions, except per share amounts) Basic earnings per common share: Net income $ 257 $ 208 $ 670 $ 606 Less: Net income allocable to participating securities (3 ) (2 ) (7 ) (7 ) Net income allocable to common shares $ 254 $ 206 $ 663 $ 599 Weighted-average common shares outstanding 515 514 516 513 Basic earnings per common share $ 0.49 $ 0.40 $ 1.28 $ 1.17 Diluted earnings per common share: Net income $ 257 $ 208 $ 670 $ 606 Add: Interest expense associated with Convertible Senior Notes, net of tax 7 6 22 19 Less: Net income allocable to participating securities (3 ) (2 ) (7 ) (7 ) Net income allocable to common shares $ 261 $ 212 $ 685 $ 618 Weighted-average shares outstanding and common share equivalents Weighted-average common shares outstandin

Accounting For Share-Based Comp

Accounting For Share-Based Compensation
	9 Months Ended Dec. 31, 2009 USD / shares
Accounting For Share-Based Compensation [Abstract]
ACCOUNTING FOR SHARE-BASED COMPENSATION	NOTE D ACCOUNTING FOR SHARE-BASED COMPENSATION The Company recognized share-based compensation in the following line items on the Condensed Consolidated Statements of Operations for the periods indicated: Three Months Nine Months Ended December 31, Ended December 31, 2009 2008 2009 2008 (in millions) Costs of licensing and maintenance $ (1) $ (1) $ 2 $ 2 Cost of professional services 1 1 2 3 Selling and marketing 8 7 25 21 General and administrative 7 7 29 23 Product development and enhancements 6 5 17 19 Share-based compensation expense before tax 22 20 75 68 Income tax benefit 8 6 26 22 Net share-based compensation expense $ 14 $ 14 $ 49 $ 46 (1) Less than $1million. There were no capitalized share-based compensation costs at December31, 2009 or 2008. The following table summarizes information about unrecognized share-based compensation costs as of December31, 2009: Weighted Unrecognized Average Period Compensation Expected to be Costs Recognized (in millions) (in years) Restricted stock units $ 10 2.2 Restricted stock awards 63 2.0 Performance share units 48 2.6 Stock option awards (1) 0.5 Total unrecognized share-based compensation costs $ 121 2.3 (1) Unrecognized compensation costs amounted to less than $0.1million. The value of performance share unit (PSU)awards are marked to the closing price of the Companys common stock on the last trading day of the quarter until the PSUs are granted. 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 for the PSUs, the applicable number of shares of restricted stock awards (RSAs), restricted stock units (RSUs) or unrestricted shares granted may vary based upon the level of achievement of the performance targets and the approval of the Companys Compensation and Human Resources Committee (which has discretion to reduce any award for any reason). For the three months ended December31, 2009 and 2008 and the nine months ended December31, 2008, the Company did not issue stock options. For the nine months ended December31, 2009, the Company issued options covering 0.1million shares of its common stock. The weighted average fair value and assumptions used for options granted in the nine months ended December31, 2009 were: fair value, $6.81; dividend yield, 0.77%; expected volatility factor, 0.33; risk-free interest rate, 2.3%; and expected term, 6years. The table below summarizes all of the RSUs and RSAs, including grants provided pursuant to the long-term incentive plans discussed above, granted during the three and nine months ended December 31, 200

Trade and Installment Accounts

Trade and Installment Accounts Receivable
	9 Months Ended Dec. 31, 2009 USD / shares
Trade and Installment Accounts Receivable [Abstract]
TRADE AND INSTALLMENT ACCOUNTS RECEIVABLE	NOTE E TRADE AND INSTALLMENT ACCOUNTS RECEIVABLE The Company uses installment license agreements as a standard business practice and has a history of successfully collecting substantially all amounts due under the original payment terms without making concessions on payments, software products, maintenance, or professional services. Trade and installment accounts receivable, Net represent amounts due from the Companys customers. These accounts receivable balances are presented net of allowances for doubtful accounts and unamortized discounts. Unamortized discounts reflect imputed interest for the time value of money for license agreements signed prior to October2000 (prior business model). These balances include revenue recognized in advance of customer billings but do not include unbilled contractual commitments executed under license agreements implemented since October2000. The components of Trade and installment accounts receivable, Net are as follows: December 31, March 31, 2009 2009 (in millions) Current: Accounts receivable billed $ 773 $ 658 Accounts receivable unbilled 72 71 Other receivables 19 34 Unbilled amounts due within the next 12months prior business model 96 108 Less: Allowance for doubtful accounts (24 ) (25 ) Less: Unamortized discounts (4 ) (7 ) Trade and installment accounts receivable, Net $ 932 $ 839 Noncurrent: Unbilled amounts due beyond the next 12months prior business model $ 47 $ 132 Less: Unamortized discounts (1 ) (4 ) Installment accounts receivable, due after one year, Net $ 46 $ 128

Goodwill, Capitalized Software

Goodwill, Capitalized Software and Other Intangible Assets
	9 Months Ended Dec. 31, 2009 USD / shares
Goodwill, Capitalized Software and Other Intangible Assets [Abstract]
GOODWILL, CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS	NOTE F GOODWILL, CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS The gross carrying amounts and accumulated amortization for capitalized software and other intangible assets at December31, 2009 were approximately $6,612million and $5,826million, respectively. These amounts include fully amortized intangible assets of approximately $5,121 million, which is composed of purchased software of approximately $4,589million, internally developed software of approximately $412million and other identified intangible assets subject to amortization of approximately $120million. The remaining gross carrying amounts and accumulated amortization for capitalized software and other intangible assets that are not fully amortized are as follows: As of December 31, 2009 Gross Amortizable Accumulated Net Assets Amortization Assets (in millions) Capitalized software: Purchased $ 317 $ 167 $ 150 Internally developed 577 175 402 Other identified intangible assets subject to amortization 583 363 220 Other identified intangible assets not subject to amortization 14 14 Total $ 1,491 $ 705 $ 786 Internally developed capitalized software costs and other identified intangible asset costs are included in Other noncurrent assets, net in the Condensed Consolidated Balance Sheets. Based on the capitalized software and other intangible assets recorded through December31, 2009, the annual amortization expense over the next five fiscal years is expected to be as follows: Year Ended March 31, 2010 2011 2012 2013 2014 (in millions) Capitalized software: Purchased $ 53 $ 47 $ 35 $ 27 $ 19 Internally developed 84 101 93 79 60 Other identified intangible assets subject to amortization 57 61 39 32 28 Total $ 194 $ 209 $ 167 $ 138 $ 107 The carrying value of goodwill was approximately $5,513million and $5,364million as of December 31, 2009 and March31, 2009, respectively. During the nine months ended December31, 2009, goodwill increased by approximately $149million, primarily due to the acquisition of NetQoS, Inc. in November2009. See Note K, Acquisitions for additional information regarding the Companys acquisition of NetQoS, Inc.

Derivatives and Fair Value Meas

Derivatives and Fair Value Measurements
	9 Months Ended Dec. 31, 2009 USD / shares
Derivatives and Fair Value Measurements [Abstract]
DERIVATIVES AND FAIR VALUE MEASUREMENTS	NOTE G DERIVATIVES AND FAIR VALUE MEASUREMENTS The Company is exposed to certain financial market risks relating to its business operations, including changes in interest rates, which could impact the value of its financial assets and liabilities, and foreign exchange rate risks associated with the Companys foreign operations, which could affect 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. During the first nine months of fiscal years 2010 and 2009, the Company did not designate its foreign exchange derivatives as hedges. Accordingly, all foreign exchange derivatives are recognized in the Condensed Consolidated Balance Sheets at fair value and unrealized and realized changes in fair value from these contracts are recorded as Other (gains)expenses, net in the Condensed Consolidated Statements of Operations. During the third quarter of fiscal year 2010, the Company entered into two $100million interest rate swap transactions to hedge a total of $200million of its 6.125% Senior Notes due December 2014 through December1, 2014. Under the terms of the swaps, the Company will pay quarterly interest at a rate of 2.915% and 2.779% on the first and second swap, respectively, plus the three-month LIBOR rate and will receive interest payments at 5.625%. The LIBOR based rate is set quarterly three months prior to the date of the interest payment. The Company designated these swaps as fair value hedges and is accounting for them in accordance with the shortcut method of FASB ASC 815 (previously SFAS No.133). The change in the fair value of the interest rate swaps from inception to December31, 2009 was approximately $2million and is reflected in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheet. The carrying value of the debt was adjusted by an equal and offsetting amount. During fiscal year 2009, the Company entered into interest rate swaps with a total notional value of $250million to hedge a portion of its variable interest rate payments. These derivatives are designated as cash flow hedges. The effective portion of these cash flow hedges are recorded as Accumulated other comprehensive loss in the Condensed Consolidated Balance Sheets and reclassified into Interest expense, net, in the Condensed Consolidated Statements of Operations in the same period during which the hedged transaction affects earnings. Any ineffective portions of the cash flow hedges are recorded immediately to Interest expense, net. No ineffectiveness existed at December31, 2009 or at March31, 2009. The following tables present the Companys assets and liabilities that are measured at fair value on a recurring basis at December31, 2009 and March31, 2009: Fair Value Measurement at Reporting Date Using (in millions) Significant Estimated Fair Quoted Prices in Other Value at Active Markets for Observable December 31, Identical Assets Inputs Description 2009 (Level 1)(1) (Level

Restructuring

Restructuring
	9 Months Ended Dec. 31, 2009 USD / shares
Restructuring [Abstract]
RESTRUCTURING	NOTE H RESTRUCTURING Fiscal 2007 Plan: In August2006, the Company announced the Fiscal 2007 plan to significantly improve the Companys expense structure and increase its competitiveness. The Fiscal 2007 plans objectives included a workforce reduction, global facilities consolidations and other cost reduction initiatives. The Company has recognized substantially all of the costs associated with the Fiscal 2007 plan. The workforce reduction included approximately 3,100 individuals under the Fiscal 2007 plan. Most of these actions have been completed; however, final payment of the severance amounts is dependent upon settlement with the works councils in certain international locations. The Company has also recognized substantially all of the facilities abandonment costs associated with the Fiscal 2007 plan. For the nine months ended December31, 2009, restructuring activity under the Fiscal 2007 plan was as follows: Facilities Severance Abandonment (in millions) Accrued balance as of March31, 2009 $ 45 $ 71 Payments (29 ) (14 ) Accretion and other adjustments 5 Accrued balance as of December31, 2009 $ 16 $ 62 The Accretion and other adjustments line item includes accretion of the Companys lease obligations related to facilities abandonment, as well as changes in the assumptions related to future sublease income. These costs are included in the General and administrative expense line in the Condensed Consolidated Statement of Operations. The liability balance for the severance portion of the remaining reserve is included in the Accrued salaries, wages and commissions line in the Condensed Consolidated Balance Sheets. The liability for the facilities abandonment portion of the remaining reserve is included in the Accrued expenses and other current liabilities and Other noncurrent liabilities line items in the Condensed Consolidated Balance Sheets.

Income Taxes

Income Taxes
	9 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
INCOME TAXES	NOTE I INCOME TAXES Income tax expense for the three and nine months ended December31, 2009 was $71million and $283 million, respectively, compared with the three and nine months ended December31, 2008 of $85 million and $301million, respectively. For the three and nine months ended December31, 2009, the Companys income tax provision included net benefits of approximately $23million and $30million, respectively, resulting from reconciliations of tax returns to tax provisions, the resolution of uncertain tax positions relating to non-U.S. jurisdictions, and refinements of estimates ascribed to tax positions taken in prior periods relating to the Companys international tax profile. For the three and nine months ended December31, 2008, the Companys income tax provision included a net benefit of approximately $12million, primarily arising from the resolution of uncertain tax provisions and the reinstatement of the U.S. Research and Development Tax Credit. For the nine months ended December31, 2008, the Companys income tax provision included a benefit from the settlement of a U.S. federal income tax audit for the fiscal years 2001 through 2004, which resulted in a decrease in the liability for uncertain tax positions of $55million. As a result of this settlement, during the first quarter of fiscal year 2009, the Company recognized a tax benefit of $11million and a reduction of goodwill by $10million, with the remainder offset against existing tax refund claims and deferred tax assets previously recorded.

Commitments and Contingencies

Commitments and Contingencies
	9 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE J COMMITMENTS AND CONTINGENCIES Certain legal proceedings in which the Company is involved are discussed in Note 8, Commitments and Contingencies, in the Notes to the Consolidated Financial Statements included in the Companys 2009 Annual Financial Statements. The following discussion should be read in conjunction with the 2009 Annual Financial Statements. Stockholder Derivative Litigation Background In June and July2004, three purported derivative actions were filed in the Federal Court by Ranger Governance, Ltd. (Ranger), Bert Vladimir and Irving Rosenzweig against certain current or former employees and/or directors of the Company. In November2004, the Federal Court issued an order consolidating the three actions into Computer Associates International, Inc., Derivative Litigation, No.04 Civ. 2697 (E.D.N.Y.) (the Derivative Action). The derivative plaintiffs filed a consolidated amended complaint (the Consolidated Complaint) on January7, 2005. The Consolidated Complaint names as defendants Messrs.Wang, Kumar, Zar, McWade, Schwartz, de Vogel, Grasso, Pieper, Artzt, DAmato, and Ranieri, Stephen Richards, Steven Woghin, David Kaplan, David Rivard, Lloyd Silverstein, Michael A. McElroy, Gary Fernandes, Robert E. La Blanc, Jay W. Lorsch, Kenneth Cron, Walter P. Schuetze, KPMG LLP, and Ernst Young LLP. The Company is named as a nominal defendant. The Consolidated Complaint seeks from one or more of the defendants (1)contribution towards the consideration the Company had previously agreed to provide then current and former stockholders in settlement of certain class action litigation commenced against the Company and certain officers and directors in 1998 and 2002, (2)compensatory and consequential damages in an amount not less than $500million in connection with the investigations giving rise to the Deferred Prosecution Agreement (DPA)entered into between the Company and the United States Attorneys Office (USAO)in 2004 and a consent to enter into a final judgment (Consent Judgment) in a parallel proceeding brought by the SEC regarding certain of the Companys past accounting practices, including its revenue recognition policies and procedures during certain periods prior to the adoption of the Companys new business model in October2000. (In May2007, based upon the Companys compliance with the terms of the DPA, the Federal Court ordered dismissal of the charges that had been filed against the Company in connection with the DPA, and the DPA expired. The injunctive provisions of the Consent Judgment permanently enjoining the Company from violating certain provisions of the federal securities laws remain in effect.), (3)unspecified relief for violations of Section 14(a) of the Exchange Act for alleged false and material misstatements made in the Companys proxy statements issued in 2002 and 2003, (4)relief for alleged breach of fiduciary duty, (5) unspecified compensatory, consequential and punitive damages based upon allegations of corporate waste and fraud, (6)unspecified damages for breach of duty of reasonable care, (7)restitution and rescission of the compensation earned under the Companys executive compensation plan and (8) p

Acquisitions

Acquisitions
	9 Months Ended Dec. 31, 2009 USD / shares
Acquisitions [Abstract]
ACQUISITIONS	NOTE K ACQUISITIONS On November19, 2009, the Company completed the acquisition of 100% of the voting equity interests of NetQoS, Inc. (NetQoS). NetQoS is a provider of network performance management and service delivery solutions. NetQoS solutions will extend the Companys capabilities in the areas of Application Performance Management and Network and System Management. The total purchase price of the acquisition was approximately $200million. The acquisition of NetQoS has been accounted for as a purchase and, accordingly, its results of operations have been included in the Consolidated Financial Statements since the date of its acquisition. Inclusion of NetQoS activities on a pro-forma basis as of the beginning of the current or prior year would not have a material impact on the Companys reported revenues or net earnings. The total purchase price was allocated to the net tangible and intangible assets and liabilities based upon their estimated fair values as of November19, 2009. The Company is utilizing a valuation specialist to assist in the valuation of the acquired intangible assets. The allocation of purchase price to acquired identifiable assets, including intangible assets, is preliminary because the Company has not completed its analysis of the final fair value report of the specialist and historical tax records of NetQoS. The excess purchase price over the value of the net tangible and identifiable intangible assets was recorded as goodwill. The preliminary allocation of a significant portion of the purchase price to goodwill was predominantly due to the relatively short useful lives of the acquired technology assets, whereby a substantial amount of the purchase price was based on anticipated cash flows occurring beyond the life of the acquired identifiable intangible assets. None of the goodwill is expected to be deductible for tax purposes. Transaction costs for the acquisition were immaterial. The following represents the preliminary allocation of the purchase price and estimated useful lives to the acquired net assets of NetQoS: Estimated (in millions) Amount Useful Life Finite-lived intangible assets(1) $ 33 5 to 6 years Purchased software 35 5 years Goodwill 146 Indefinite Deferred tax liabilities (16 ) Other assets net of other liabilities assumed 2 Purchase Price $ 200 (1) Includes customer relationships and tradenames.