Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | ||
In Millions | Sep. 30, 2009
| Mar. 31, 2009
|
Current assets: | ||
Cash and cash equivalents | 1137.8 | 1023.3 |
Short-term investments | 74.7 | 73.6 |
Trade accounts receivable, net | 174.6 | 217.8 |
Trade finance receivables, net | 85.3 | 99.3 |
Deferred tax assets | 71.2 | 68 |
Other current assets | 77 | 78.5 |
Total current assets | 1620.6 | 1560.5 |
Property and equipment, net | 104.3 | 103 |
Software development costs | 135.5 | 122.6 |
Long-term investments | 76.3 | 72.3 |
Long-term trade finance receivables, net | 52.5 | 92.1 |
Intangible assets, net | 168.8 | 189.9 |
Goodwill | 1,322 | 1288.7 |
Other long-term assets | 267.3 | 268.4 |
Total assets | 3747.3 | 3697.5 |
Current liabilities: | ||
Trade accounts payable | 50.1 | 57.2 |
Finance payables | 13.9 | 13.7 |
Accrued liabilities | 236.2 | 285.1 |
Deferred revenue | 934.1 | 977.3 |
Total current liabilities | 1234.3 | 1333.3 |
Long-term deferred revenue | 762.5 | 810.6 |
Long-term debt | 309.8 | 313.6 |
Other long-term liabilities | 215.7 | 191.5 |
Total liabilities | 2522.3 | 2,649 |
Stockholders' equity: | ||
Preferred stock, $.01 par value, 1.0 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, 600.0 shares authorized, 249.1 shares issued | 2.5 | 2.5 |
Additional paid-in capital | 918.3 | 881.2 |
Retained earnings | 2159.8 | 1985.4 |
Accumulated other comprehensive income (loss) | 11.3 | -25.5 |
Subtotal of stockholder's Equity before deducting treasury stock | 3091.9 | 2843.6 |
Treasury stock, at cost (65.5 and 64.4 shares) | -1866.9 | -1795.1 |
Total stockholders' equity | 1,225 | 1048.5 |
Total liabilities and stockholders' equity | 3747.3 | 3697.5 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | Sep. 30, 2009
| Mar. 31, 2009
|
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | 0.01 | 0.01 |
Common stock, shares authorized | 600 | 600 |
Common stock, shares issued | 249.1 | 249.1 |
Treasury stock, shares | 65.5 | 64.4 |
Statement Of Income Alternative
Statement Of Income Alternative (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Sep. 30, 2009 | 3 Months Ended
Sep. 30, 2008 | 6 Months Ended
Sep. 30, 2009 | 6 Months Ended
Sep. 30, 2008 |
Revenue: | ||||
License | $174 | 175.5 | $341 | 324.9 |
Maintenance | 257.4 | 255.5 | 508.6 | 509.8 |
Professional services | 30.4 | 35.7 | 62.2 | 69.5 |
Total revenue | 461.8 | 466.7 | 911.8 | 904.2 |
Operating expenses: | ||||
Cost of license revenue | 26.5 | 29.5 | 54.6 | 57.1 |
Cost of maintenance revenue | 36.7 | 46.6 | 74 | 87.1 |
Cost of professional services revenue | 31.8 | 36.3 | 65 | 71.5 |
Selling and marketing expenses | 130.6 | 136.7 | 256.5 | 277.1 |
Research and development expenses | 41.7 | 53.7 | 95.4 | 115.5 |
General and administrative expenses | 51.2 | 48.2 | 105.8 | 101.7 |
In-process research and development | 0 | 0 | 0 | 50.3 |
Amortization of intangible assets | 8 | 8.7 | 16 | 17.2 |
Severance, exit costs and related charges | 0.5 | 1.5 | 1.5 | 7.9 |
Total operating expenses | 327 | 361.2 | 668.8 | 785.4 |
Operating income | 134.8 | 105.5 | 243 | 118.8 |
Other income (loss), net: | ||||
Interest and other income, net | 1.7 | 10.5 | 5.3 | 19.5 |
Interest expense | -5.3 | -5.8 | -10.8 | -7.9 |
Gain (loss) on investments | 1.4 | -1.5 | 2.6 | -0.3 |
Total other income (loss), net | -2.2 | 3.2 | -2.9 | 11.3 |
Earnings before income taxes | 132.6 | 108.7 | 240.1 | 130.1 |
Provision for income taxes | 38.4 | 38.9 | 63.5 | 59.1 |
Net earnings | 94.2 | 69.8 | 176.6 | 71 |
Basic earnings per share | 0.51 | 0.37 | 0.96 | 0.37 |
Diluted earnings per share | 0.5 | 0.36 | 0.94 | 0.37 |
Shares used in computing basic earnings per share | 183.5 | 188.8 | 183.9 | 189.1 |
Shares used in computing diluted earnings per share | 187 | 192.2 | 187.4 | 192.8 |
Comprehensive income: | ||||
Net earnings | 94.2 | 69.8 | 176.6 | 71 |
Net changes in accumulated comprehensive income (loss): | ||||
Foreign currency translation adjustment | 15 | -20.6 | 35 | -14.9 |
Unrealized gain (loss) on available-for-sale securities | 1.1 | -0.5 | 1.8 | (3) |
Comprehensive income | 110.3 | 48.7 | 213.4 | 53.1 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||
In Millions | 6 Months Ended
Sep. 30, 2009 | 6 Months Ended
Sep. 30, 2008 |
Cash flows from operating activities: | ||
Net earnings | 176.6 | $71 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
In-process research and development | 0 | 50.3 |
Depreciation and amortization | 84.8 | 90.3 |
Share-based compensation expense | 42.5 | 43.3 |
Other | -2.6 | 0.3 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Trade finance receivables | 53.6 | -11.2 |
Accrued liabilities | -45.8 | 1.3 |
Deferred revenue | -93.7 | -24.7 |
Other operating assets and liabilities | 33.3 | 6 |
Net cash provided by operating activities | 248.7 | 226.6 |
Cash flows from investing activities: | ||
Proceeds from maturities / sales of investments | 229.4 | 107.2 |
Purchases of investments | -221.7 | -122.2 |
Cash paid for acquisitions, net of cash acquired, and other investments | -24.7 | -783.7 |
Capitalization of software development costs | -40.4 | -26.8 |
Purchases of property and equipment | -13.8 | -16.8 |
Other investing activities | 0 | -0.2 |
Net cash used in investing activities | -71.2 | -842.5 |
Cash flows from financing activities: | ||
Treasury stock acquired | (125) | (200) |
Repurchases of stock to satisfy employee tax withholding obligations | -7.3 | -16.1 |
Proceeds from stock options exercised and other | 47.4 | 62.5 |
Excess tax benefit from share-based compensation | 5.4 | 21 |
Payments on debt and capital leases | -9.6 | (6) |
Proceeds from issuance of long-term debt, net of debt issuance costs | 0 | 295.6 |
Net cash provided by (used in) financing activities | -89.1 | 157 |
Effect of exchange rate changes on cash and cash equivalents | 26.1 | -19.1 |
Net change in cash and cash equivalents | 114.5 | (478) |
Cash and cash equivalents, beginning of period | 1023.3 | 1288.3 |
Cash and cash equivalents, end of period | 1137.8 | 810.3 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 11.5 | 2.3 |
Cash paid for income taxes, net of amounts refunded | 63.5 | 34.1 |
Sheet1
(1) Basis of Presentation | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(1) Basis of Presentation | (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of BMC Software, Inc. and its subsidiaries (collectively, we, us, our or BMC). All significant intercompany balances and transactions have been eliminated in consolidation. These financial statements reflect all normal recurring adjustments necessary to fairly present our financial position and results of operations as of and for the periods presented herein. We have evaluated subsequent events through October 30, 2009, the date the financial statements were issued. These financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (SEC). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim results are not necessarily indicative of results for a full year. Our results generally tend to be stronger in the third and fourth quarters of our fiscal year, as compared to the first and second quarters of our fiscal year. These financial statements should be read in conjunction with our annual audited consolidated financial statements for the fiscal year ended March31, 2009, as filed with the SEC on Form 10-K. Recently Adopted Accounting Pronouncements In September 2006, the Financial Accounting Standards Board (FASB) issued a new accounting standard which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. In February 2008, the FASB delayed the effective date of this standard to April1, 2009 for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (that is, at least annually). We adopted the new standard relating to assets and liabilities recognized or disclosed in the financial statements at fair value on a recurring basis on April1, 2008, and on April1, 2009 with regard to non-financial assets and non-financial liabilities. The adoption of these provisions did not have a material impact on our financial position, results of operations or cash flows. In December 2007, the FASB issued a revision to previously issued accounting literature which changes the accounting for business combinations including: (i)the measurement of acquirer shares issued in consideration for a business combination, (ii)the recognition of contingent consideration, (iii)the accounting for preacquisition gain and loss contingencies, (iv)the recognition of capitalized in-process research and development (IPRD), (v)the accounting for acquisition-related restructuring costs, (vi)the treatment of acquisition-related transaction costs, and (vii)the recognition of changes in the acquirers income tax valuation allowance. This guidance applies prospectively to all business combinations beginning in fiscal 2010. The impact of a |
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(2) Business Combinations | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(2) Business Combinations | (2) Business Combinations In April 2008, we acquired all of the outstanding capital stock of BladeLogic, Inc. (BladeLogic), a leading provider of data center automation software, for $28 per share. This acquisition expanded our offerings for server provisioning, application release management, automation and compliance. The acquisition of BladeLogics outstanding common stock and other equity instruments resulted in total purchase consideration of $854.0 million, including approximately $19.9 million of direct acquisition costs. Approximately $50.3 million of the purchase price was allocated to purchased IPRD and was expensed as of the acquisition date. In August 2009, we acquired all of the outstanding capital stock of MQSoftware, Inc. (MQSoftware), a leading provider of middleware and enterprise application transaction management software, for purchase consideration of $26.5 million. This acquisition expanded our offerings for middleware infrastructure software. The acquisition of MQSoftware included approximately $7.3 million of acquired technology and $7.9 million of customer relationships, with weighted average economic lives of approximately three years, in addition to other tangible assets and liabilities. This acquisition resulted in a preliminary allocation of $18.5 million to goodwill that was assigned to the Mainframe Service Management segment. We are in the process of finalizing our assessment of the fair value of certain acquired assets and assumed liabilities, principally related to tax loss carryforwards and other deferred tax attributes, and will adjust the purchase price allocation when finalized. |
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(3) Financial Instruments | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(3) Financial Instruments | (3) Financial Instruments We measure certain financial instruments at fair value on a recurring basis using the following valuation techniques: (A) Market approach Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. (B) Income approach Uses valuation techniques to convert future estimated cash flows to a single present amount based on current market expectations about those future amounts, using present value techniques. The fair values of our financial instruments were determined using the following input levels and valuation techniques: September30, 2009 Total QuotedPricesinActive Markets for Identical Assets (Level 1) Significant Other ObservableInputs (Level2) Significant Unobservable Inputs (Level 3) Valuation Technique (In millions) Assets Cash equivalents Money-market funds $ 558.4 $ 558.4 $ $ A United States treasury securities 302.0 302.0 A Certificates of deposit 57.9 57.9 A Short-term and long-term investments United States treasury securities 16.0 16.0 A Auction rate securities 60.9 60.9 B Certificates of deposit 58.7 58.7 A Mutual funds and other 15.4 15.4 A Foreign currency exchange derivatives 0.4 0.4 A Auction rate securities put option 1.9 1.9 B Total $ 1,071.6 $ 1,008.4 $ 0.4 $ 62.8 Liabilities Foreign currency exchange derivatives $ (3.2 ) $ $ (3.2 ) $ A Total $ (3.2 ) $ $ (3.2 ) $ Level 1 classification is applied to any asset or liability that has a readily available quoted market price from an active market where there is significant transparency in the executed/quoted price. Level 2 classification is applied to assets and liabilities that have evaluated prices where the data inputs to these valuations are observable either directly or indirectly, but do not represent quoted market prices from an active market. Level 3 classification is applied to assets and liabilities when prices are not derived from existing market data and requires us to develop our own assumptions about how market participants would price the asset or liability. The following table summarizes the activity in Level 3 financial instruments: QuarterEnded September30, 2009 Six MonthsEnded September30, 2009 Auction Rate Securities Put Option Total Auction Rate Securities Put Option Total Balance at the beginning of period $ 60.4 $ 2.6 $ 63.0 $ 60.0 $ 2.0 $ 62.0 Redemption of auction rate securities (1.8 ) (1.8 ) (1.8 ) (1.8 ) Unre |
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(4) Long-Term Debt | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(4) Long-Term Debt | (4) Long-Term Debt Long-term debt consists of the following: September30, 2009 March31, 2009 (In millions) Senior unsecured notes due 2018 (net of $1.6 million of unamortized discount at September30, 2009 and March31, 2009) $ 298.4 $ 298.4 Capital leases and other obligations 20.3 23.1 Total 318.7 321.5 Less current maturities of capital leases and other obligations (included in accrued liabilities) 8.9 7.9 Long-term debt $ 309.8 $ 313.6 At September30, 2009, we were in compliance with all debt covenants. |
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(5) Income Taxes | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(5) Income Taxes | (5) Income Taxes Income tax expense was $38.4 million and $38.9 million for the quarters ended September30, 2009 and 2008, respectively, resulting in effective tax rates of 29.0% and 35.8%, respectively. Income tax expense was $63.5 million and $59.1 million for the six months ended September30, 2009 and 2008, respectively, resulting in effective tax rates of 26.4% and 45.4%, respectively. The effective tax rate is impacted primarily by the worldwide mix of estimated consolidated earnings before taxes and our policy of indefinitely re-investing earnings from certain low tax jurisdictions, additional accruals and changes in estimates related to our uncertain tax positions, benefits associated with income attributable to both domestic production activities and the extraterritorial income exclusion and the non-deductible expense from the write-off of IPRD assets associated with certain acquisitions. The higher effective tax rate for the six months ended September30, 2008 was attributable primarily to the non-deductible expense from the write-off of IPRD assets in connection with our acquisition of BladeLogic, Inc. We file a federal income tax return in the United States as well as income tax returns in various local, state and foreign jurisdictions. Our tax years are closed with the United States Internal Revenue Service (IRS) through the tax year ended March31, 2003. During fiscal 2009, we filed a petition with the United States Tax Court in response to a Notice of Deficiency received from the IRS for the tax years ended March31, 2004 and 2005 and during the quarter ended June30, 2009 the United States Tax Court scheduled a trial date for later in the current fiscal year. During the quarter ended September30, 2009, we jointly filed a motion for continuance with the IRS to the tax court which was granted. However, we have not received notice on a new trial date. We have recently begun settlement discussions with the IRS on certain issues and believe it is reasonably possible they will be concluded in the next twelve months; however, the ultimate outcome of these discussions cannot be reasonably estimated at this time. During fiscal 2009, the IRS completed its examination of our United States federal income tax returns for the tax years ended March31, 2006and 2007 and issueda Revenue Agent Report (RAR) thereon. We have filed a protest letter contesting certain adjustments included in the RAR and settlement discussions with the IRS Office of Appeals are scheduled to begin later in the current fiscal year. The IRS has initiated an examination of our federal income tax return for the tax year ended March31, 2008. In addition, certain tax years related to state, local and foreign jurisdictions remain subject to examination. To provide for potential tax exposures, we maintain a liability for unrecognized tax benefits which we believe is adequate. |
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(6) Share-Based Compensation | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(6) Share-Based Compensation | (6) Share-Based Compensation During the six months ended September30, 2009, we granted share-based awards to our executive officers and non-executive employees consisting of 0.2million options to purchase our common stock and 1.4million shares of time-based nonvested stock units. The time-based nonvested stock units vest in annual increments over three years. The fair value of share-based payments was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: QuarterEnded September30, SixMonthsEnded September30, 2009* 2008 2009 2008 Expected volatility 34 % 35 % 32 % Risk-free interest rate % 3.4 % 2.0 % 3.0 % Expected term (in years) 5 4 4 Dividend yield * There were no options to purchase our common stock issued during the quarter ended September30, 2009. At September30, 2009, we have approximately $164.8 million of total unrecognized share-based compensation expense related to stock options, nonvested stock and nonvested stock units that is expected to be recognized as expense over a weighted-average period of two years. Share-based compensation expense as recorded in our condensed consolidated statements of operations is summarized as follows: Quarter Ended September30, SixMonthsEnded September30, 2009 2008 2009 2008 (Inmillions) Cost of license revenue $ 0.5 $ 0.4 $ 1.0 $ 0.7 Cost of maintenance revenue 2.4 2.6 4.1 5.1 Cost of professional services revenue 0.9 0.8 1.8 1.5 Selling and marketing expenses 8.0 7.4 15.1 15.3 Research and development expenses 2.2 3.0 4.6 6.8 General and administrative expenses 7.9 6.7 15.9 13.9 Total share-based compensation expense $ 21.9 $ 20.9 $ 42.5 $ 43.3 |
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(7) Stockholders' Equity | |
4/1/2009 - 9/30/2009
USD / shares | |
Notes to Financial Statements [Abstract] | |
(7) Stockholders' Equity | (7) Stockholders Equity Earnings Per Share The two-class method is utilized for the computation of earnings per share (EPS). The two-class method requires a portion of net income be allocated to participating securities, which are unvested awards of share-based payments with nonforfeitable rights to receive dividends or dividend equivalents, if declared. Income allocated to these participating securities is excluded from net earnings allocated to common shares, as shown in the table below. Basic earnings per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and other dilutive securities using the treasury stock method. The following table summarizes the basic and diluted EPS computations for the quarters and six months ended September30, 2009 and 2008: QuarterEnded September30, SixMonthsEnded September30, 2009 2008 2009 2008 (Inmillions,exceptpershare data) Basic earnings per share: Net earnings $ 94.2 $ 69.8 $ 176.6 $ 71.0 Less earnings allocated to participating securities (0.2 ) (0.2 ) (0.4 ) (0.4 ) Net earnings allocated to common shares $ 94.0 $ 69.6 $ 176.2 $ 70.6 Weighted average number of common shares outstanding 183.5 188.8 183.9 189.1 Basic earnings per share $ 0.51 $ 0.37 $ 0.96 $ 0.37 QuarterEnded September30, SixMonthsEnded September30, 2009 2008 2009 2008 (Inmillions,exceptpershare data) Diluted earnings per share: Net earnings $ 94.2 $ 69.8 $ 176.6 $ 71.0 Less earnings allocated to participating securities (0.2 ) (0.2 ) (0.4 ) (0.4 ) Net earnings allocated to common shares $ 94.0 $ 69.6 $ 176.2 $ 70.6 Weighted average number of common shares outstanding 183.5 188.8 183.9 189.1 Incremental shares from assumed conversions of stock options and other 3.5 3.4 3.5 3.7 Adjusted weighted average number of common shares outstanding 187.0 192.2 187.4 192.8 Diluted earnings per share $ 0.50 $ 0.36 $ 0.94 $ 0.37 For the quarters ended September30, 2009 and 2008, 5.9million and 10.2million weighted average potential common shares, respectively, have been excluded from the calculation of diluted EPS, as they were anti-dilutive. For the six months ended September30, 2009 and 2008, 8.1million and 8.8m |
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(8) Guarantees and Contingencies | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(8) Guarantees and Contingencies | (8) Guarantees and Contingencies Guarantees Under our standard software license agreements, we agree to indemnify, defend and hold harmless our licensees from and against certain losses, damages and costs arising from claims alleging the licensees use of our software infringes the intellectual property rights of a third party. Also, under these standard license agreements, we represent and warrant to licensees that our software products operate substantially in accordance with published specifications. Other guarantees include promises to indemnify, defend and hold harmless each of our executive officers, non-employee directors and certain key employees from and against losses, damages and costs incurred by each such individual in administrative, legal or investigative proceedings arising from alleged wrongdoing by the individual while acting in good faith within the scope of his or her job duties on our behalf. Historically, we have not incurred significant costs related to such indemnifications, warranties and guarantees. As such, and based on other factors, no provision or accrual for these items has been made. Contingencies We have received claims from a third party alleging that we infringe on one or more of the third partys patents. We believe that we have meritorious defenses to the claims and intend to vigorously contest them. Additionally, we have asserted counter-claims against the third party alleging infringement on certain of our patents. No formal proceedings have been initiated by either party and the ultimate outcome of this matter cannot be estimated at this time. We are party to various labor claims brought by certain former international employees alleging that amounts are due such employees for unpaid commissions and other compensation. The claims are in various stages and are not expected to be fully resolved in the near future. We intend to vigorously contest all of the claims. However, the ultimate outcome of all of the claims cannot be estimated at this time. In June 2006, we sought clarification from a Brazilian court as to whether a tax applies to the remittance of software payments from our Brazilian operations. The matter is currently being litigated in Brazilian courts. In February 2007, a law was enacted that clarified that this particular tax did not apply to the remittance of software payments, retroactive to January1, 2006. We continue to pursue a favorable resolution on this matter for years prior to January1, 2006. While we believe we will ultimately prevail based on the merits of our position, we cannot predict or estimate the timing or ultimate outcome of this matter. In April 2009, a lawsuit was filed against us by Data Detection Systems, LLC in the United States District Court for the Southern District of Texas, Houston Division. The complaint seeks monetary damages in unspecified amounts and permanent injunction based upon claims for alleged patent infringement. We believe that we have meritorious defenses and intend to vigorously defend this matter. However, we cannot predict or estimate the timing or ultimate outcome of this matter. We are subject to various other legal proceedi |
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(9) Segment Reporting | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(9) Segment Reporting | (9) Segment Reporting We are organized into two business segments, Enterprise Service Management (ESM) and Mainframe Service Management (MSM). The ESM segment derives its revenue from our service support, service assurance and service automation solutions, along with professional services revenue derived from consulting, implementation, integration and educational services related to our software products. The MSM segment derives its revenue from products for mainframe database management, monitoring and automation, enterprise scheduling and output management solutions. Segment performance is measured based on segment operating income, reflecting segment revenue less direct and allocated indirect segment operating expenses. Direct segment operating expenses primarily include cost of revenue, selling and marketing, research and development and general and administrative expenses that can be specifically identified to a particular segment and are directly controllable by segment management, while allocated indirect segment operating expenses primarily include indirect costs within these operating expense categories that are not specifically identified to a particular segment or controllable by segment management. The indirect operating expenses are allocated to the segments based on budgeted bookings, revenue and other allocation methods that management believes to be reasonable. Our measure of segment operating income does not include the effect of share-based compensation expenses, amortization of acquired technology and other intangible assets, the write-off of purchased IPRD or the costs associated with severance and exit activities described in Note 10, which are collectively included in unallocated operating expenses below. Assets and liabilities are reviewed by management at the consolidated level only. The table below summarizes segment performance for the quarters and six months ended September30, 2009 and 2008. Quarter Ended September30, 2009 Enterprise Service Management Mainframe Service Management Consolidated (In millions) Revenue: License $ 106.1 $ 67.9 $ 174.0 Maintenance 138.9 118.5 257.4 Professional services 30.4 30.4 Total revenue 275.4 186.4 461.8 Direct and allocated indirect segment operating expenses 204.1 82.5 286.6 Segment operating income 71.3 103.9 175.2 Unallocated operating expenses (40.4 ) Other loss, net (2.2 ) Earnings before income taxes $ 132.6 Quarter Ended September30, 2008 Enterprise Service Management Mainframe Service Management Consolidated (In millions) Revenue: License $ 104.8 $ 70.7 $ 175.5 Maintenance 138.1 117.4 255.5 Professional services 35.7 35.7 Total revenue 278.6 188.1 466.7 Direct and allocated indirect segment operating expenses 238.9 79 |
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(10) Severance, Exit Costs and Related Charges | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(10) Severance, Exit Costs and Related Charges | (10) Severance, Exit Costs and Related Charges We have undertaken various restructuring and process improvement initiatives in recent years through the realignment of resources to focus on growth areas and the simplification, standardization and automation of key business processes. Additionally, we undertook general workforce reductions in the latter half of fiscal 2009 and in the first half of fiscal 2010, principally as a result of macroeconomic conditions.Related to these collective actions, we recorded charges of $0.5million and $1.5million during the quarter and six months ended September30, 2009, respectively, and $1.5 million and $7.9 million during the quarter and six months ended September30, 2008, respectively. These expenses were attributable primarily to identified workforce reductions and associated cash separation packages. Activity related to the above initiatives during the six months ended September30, 2009 is summarized as follows: Balanceat March31, 2009 Charged toExpense Adjustments toEstimates Foreign Exchange Adjustments Accretion CashPayments, Net of Sublease Income Balanceat September30, 2009 (In millions) Process and realignment initiatives: Severance and related costs $ 1.2 $ 0.1 $ (0.6 ) $ $ $ (0.1 ) $ 0.6 Facilities costs 7.7 0.6 (0.2 ) (0.1 ) (5.1 ) 2.9 8.9 0.7 (0.8 ) (0.1 ) (5.2 ) 3.5 General workforce reduction: Severance and related costs 7.6 3.3 (1.7 ) 0.3 (8.6 ) 0.9 Total accrued $ 16.5 $ 4.0 $ (2.5 ) $ 0.2 $ $ (13.8 ) $ 4.4 The accruals for severance and related costs at September30, 2009 represent the amounts to be paid to employees that have been terminated or identified for termination as a result of the initiatives described above. These amounts are expected to be paid during fiscal 2010. We continue to review the impact of these actions and will determine if, based on future operating results, additional actions to reduce operating expenses are necessary. The amount of any potential future charges for such actions will depend upon the nature, timing, and extent of those actions. The accruals for facilities costs at September30, 2009 represent the remaining fair value of lease obligations for exited locations, as determined at the cease-use dates or lease modification dates of those facilities, net of projected sublease income that could be reasonably obtained in the future, and will be paid out over the remaining lease terms, the last of which ends in fiscal 2014. Projected sublease income is based on managements estimates, which are subject to change. We may incur additional facilities charges subsequent to September30, 2009 as a result of the initiatives described above. |
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(11) Recently Issued Accounting Pronouncements | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
(11) Recently Issued Accounting Pronouncements | (11) Recently Issued Accounting Pronouncements In June 2009, the FASB issued new guidance on accounting for transfers of financial assets, which amended previous GAAP literature. The amendment includes: (i)elimination of the qualifying special-purpose entity concept, (ii)a new unit of account definition that must be met for transfers of portions of financial assets to be eligible for sale accounting, (iii)clarifications and changes to the derecognition criteria for a transfer to be accounted for as a sale, (iv)a change to the amount of recognized gain or loss on a transfer of financial assets accounted for as a sale when beneficial interests are received by the transferor, and (v)extensive new disclosures. This guidance will be effective for us beginning in fiscal 2011. We have not determined whether its adoption will have a material effect on our financial position, results of operations or cash flows. |
Document Information
Document Information | |
6 Months Ended
Sep. 30, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-09-30 |
Entity Information
Entity Information (USD $) | ||
6 Months Ended
Sep. 30, 2009 | Oct. 26, 2009
| |
Entity [Text Block] | ||
Trading Symbol | BMC | |
Entity Registrant Name | BMC SOFTWARE INC | |
Entity Central Index Key | 0000835729 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 183,392,000 |