| Statement Of Financial Position Classified (USD $) | ||
| In Millions | Dec. 31, 2009
| Mar. 31, 2009
|
| Current assets: | ||
| Cash and cash equivalents | 1079.5 | 1023.3 |
| Short-term investments | 128 | 73.6 |
| Trade accounts receivable, net | 208.9 | 217.8 |
| Trade finance receivables, net | 121.7 | 99.3 |
| Deferred tax assets | 63.8 | 68 |
| Other current assets | 83.8 | 78.5 |
| Total current assets | 1685.7 | 1560.5 |
| Property and equipment, net | 97.9 | 103 |
| Software development costs | 144.1 | 122.6 |
| Long-term investments | 62.3 | 72.3 |
| Long-term trade finance receivables, net | 123.8 | 92.1 |
| Intangible assets, net | 179.7 | 189.9 |
| Goodwill | 1368.7 | 1288.7 |
| Other long-term assets | 252.4 | 268.4 |
| Total assets | 3914.6 | 3697.5 |
| Current liabilities: | ||
| Trade accounts payable | 34.1 | 57.2 |
| Finance payables | 15.1 | 13.7 |
| Accrued liabilities | 282.8 | 285.1 |
| Deferred revenue | 922.6 | 977.3 |
| Total current liabilities | 1254.6 | 1333.3 |
| Long-term deferred revenue | 804.5 | 810.6 |
| Long-term borrowings | 340.9 | 313.6 |
| Other long-term liabilities | 210 | 191.5 |
| Total liabilities | 2,610 | 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 | 944 | 881.2 |
| Retained earnings | 2270.6 | 1985.4 |
| Accumulated other comprehensive income (loss) | 9.2 | -25.5 |
| Stockholders Equity Subtotal Before Treasury Stock, Total | 3226.3 | 2843.6 |
| Treasury stock, at cost (66.4 and 64.4 shares) | -1921.7 | -1795.1 |
| Total stockholders' equity | 1304.6 | 1048.5 |
| Total liabilities and stockholders' equity | 3914.6 | 3697.5 |
| Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
| Share data in Millions, except Per Share data | Dec. 31, 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 | 66.4 | 64.4 |
| Statement Of Income Alternative (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: | ||||
| License | 216.1 | 192.8 | 557.1 | 517.7 |
| Maintenance | 260.2 | 255.7 | 768.8 | 765.5 |
| Professional services | 31.8 | 39.9 | 94 | 109.4 |
| Total revenue | 508.1 | 488.4 | 1419.9 | 1392.6 |
| Operating expenses: | ||||
| Cost of license revenue | 28.7 | 28.8 | 83.3 | 85.9 |
| Cost of maintenance revenue | 40.8 | 37.2 | 114.8 | 124.3 |
| Cost of professional services revenue | 34.9 | 37.2 | 99.9 | 108.7 |
| Selling and marketing expenses | 147.6 | 130.7 | 404.1 | 407.8 |
| Research and development expenses | 47.8 | 52 | 143.2 | 167.5 |
| General and administrative expenses | 51.4 | 49.3 | 157.2 | 151 |
| In-process research and development | 0 | 0 | 0 | 50.3 |
| Amortization of intangible assets | 8.3 | 8.5 | 24.3 | 25.7 |
| Severance, exit costs and related charges | 1 | 16 | 2.5 | 23.9 |
| Total operating expenses | 360.5 | 359.7 | 1029.3 | 1145.1 |
| Operating income | 147.6 | 128.7 | 390.6 | 247.5 |
| Other income (loss), net: | ||||
| Interest and other income, net | 3.8 | 5.8 | 9.1 | 25.3 |
| Interest expense | -5.1 | -5.8 | -15.9 | -13.7 |
| Gain (loss) on investments | 0.4 | (9) | 3 | -9.3 |
| Total other income (loss), net | -0.9 | (9) | -3.8 | 2.3 |
| Earnings before income taxes | 146.7 | 119.7 | 386.8 | 249.8 |
| Provision for income taxes | 36 | 35.9 | 99.5 | 95 |
| Net earnings | 110.7 | 83.8 | 287.3 | 154.8 |
| Basic earnings per share | 0.6 | 0.45 | 1.56 | 0.82 |
| Diluted earnings per share | 0.59 | 0.44 | 1.53 | 0.81 |
| Shares used in computing basic earnings per share | 182.8 | 186 | 183.5 | 188 |
| Shares used in computing diluted earnings per share | 186.5 | 188.3 | 187.1 | 191.3 |
| Comprehensive income: | ||||
| Net earnings | 110.7 | 83.8 | 287.3 | 154.8 |
| Net changes in accumulated comprehensive income (loss): | ||||
| Foreign currency translation adjustment | -3.6 | -18.9 | 31.4 | -33.8 |
| Unrealized gain (loss) on available-for-sale securities | 1.5 | -4.1 | 3.3 | -7.1 |
| Comprehensive income | 108.6 | 60.8 | $322 | 113.9 |
| Statement Of Cash Flows Indirect (USD $) | ||
| In Millions | 9 Months Ended
Dec. 31, 2009 | 9 Months Ended
Dec. 31, 2008 |
| Cash flows from operating activities: | ||
| Net earnings | 287.3 | 154.8 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| In-process research and development | 0 | 50.3 |
| Depreciation and amortization | 129.3 | 135.5 |
| Share-based compensation expense | 65.1 | 62.2 |
| Other | -2.9 | 9.3 |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Trade finance receivables | (52) | (16) |
| Accrued liabilities | -5.6 | 13.6 |
| Deferred revenue | -65.5 | -56.3 |
| Other operating assets and liabilities | -23.8 | 28 |
| Net cash provided by operating activities | 331.9 | 381.4 |
| Cash flows from investing activities: | ||
| Proceeds from maturities / sales of investments | 256.2 | 134.9 |
| Purchases of investments | (283) | -130.6 |
| Cash paid for acquisitions, net of cash acquired, and other investments | -92.3 | -783.7 |
| Capitalization of software development costs | -63.3 | -49.8 |
| Purchases of property and equipment | -17.9 | -20.8 |
| Other investing activities | 0 | 6.5 |
| Net cash used in investing activities | -200.3 | -843.5 |
| Cash flows from financing activities: | ||
| Treasury stock acquired | (200) | (280) |
| Repurchases of stock to satisfy employee tax withholding obligations | -8.4 | -16.2 |
| Proceeds from stock options exercised and other | 67.8 | 75.3 |
| Excess tax benefit from share-based compensation | 9.7 | 21.8 |
| Repayments of borrowings and capital lease obligations | -13.1 | -12.1 |
| Proceeds from borrowings, net of issuance costs | 42 | 295.6 |
| Net cash provided by (used in) financing activities | (102) | 84.4 |
| Effect of exchange rate changes on cash and cash equivalents | 26.6 | -39.1 |
| Net change in cash and cash equivalents | 56.2 | -416.8 |
| Cash and cash equivalents, beginning of period | 1023.3 | 1288.3 |
| Cash and cash equivalents, end of period | 1079.5 | 871.5 |
| Supplemental disclosure of cash flow information: | ||
| Cash paid for interest | 22.7 | 11.4 |
| Cash paid for income taxes, net of amounts refunded | 66.8 | 40.3 |
| Basis of Presentation | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| 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 January 28, 2010, 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 July2009, the Financial Accounting Standards Board (FASB) released the final version of its new Accounting Standards Codification (Codification) as the single authoritative source for GAAP. While not intended to change GAAP, the Codification significantly changes the way in which the accounting literature is organized, combining all authoritative standards into a comprehensive, topically organized database. All existing accounting standard documents were superseded and all other accounting literature not included in the Codification is considered nonauthoritative, other than guidance issued by the SEC. The Codification is effective for interim and annual periods ending on or after September15, 2009. We adopted the Codification in our interim financial statements for the second quarter of fiscal 2010, which had no impact on our financial position, results of operations or cash flows. In May 2009, the FASB issued guidance that provides general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. This topic was previously addressed only in auditing literature. This guidance was effective for us beginning in fiscal 2010 and did not have a material impact on our financial position, results of operations or cash flows. In April 2009, the FASB issued guidance for estimating fair value when the volume or level of activity in a market for an asset or liability has decreased significantly. This guidance also provides information on identifying circumstances that indicate a transaction is not orderly (i.e., a forced liquidation or distressed sale). |
| Business Combinations | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| 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. During the nine months ended December31, 2009, we completed the acquisitions of MQSoftware, Inc., a leading provider of middleware and enterprise application transaction management software, Tideway Systems Limited, a leading provider of IT discovery solutions, and Phurnace Software, Inc., a leading developer of software that automates the deployment and configuration of business-critical Java EE applications, for combined purchase consideration of $94.3 million. The purchase consideration was allocated to acquired assets and liabilities under the current accounting requirements for business combinations adopted April1, 2009, consisting primarily of approximately $36.3 million of acquired technology and $9.4 million of customer relationships, with weighted average economic lives of approximately three years, in addition to other tangible assets and liabilities. These acquisitions resulted in a preliminary allocation of $67.0 million to goodwill, of which $18.5 million was assigned to the Mainframe Service Management segment and $48.5 million was assigned to the Enterprise 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 allocations when finalized. |
| Financial Instruments | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| 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: December31, 2009 Total QuotedPrices inActive Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level2) Significant Unobservable Inputs (Level 3) Valuation Technique (In millions) Assets Cash equivalents Money-market funds $ 625.0 $ 625.0 $ $ A U.S. Treasury securities 133.0 133.0 A Certificates of deposit 63.5 63.5 A Short-term and long-term investments U.S. Treasury securities 59.1 59.1 A Auction rate securities 61.4 61.4 B Certificates of deposit 53.1 53.1 A Mutual funds and other 16.7 16.7 A Foreign currency exchange derivatives 3.9 3.9 A Auction rate securities put option 1.0 1.0 B Total $ 1,016.7 $ 950.4 $ 3.9 $ 62.4 Liabilities Foreign currency exchange derivatives $ (0.2 ) $ $ (0.2 ) $ A Total $ (0.2 ) $ $ (0.2 ) $ 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 December 31, 2009 Nine MonthsEnded December 31, 2009 Auction Rate Securities Put Option Total Auction Rate Securities Put Option Total (In millions) Balance at the beginning of period $ 60.9 $ 1.9 $ 62.8 $ 60.0 $ 2.0 $ 62.0 Redemption of auction rate securities (2.6 ) (2.6 ) (4.4 ) (4.4 ) |
| Long-Term Borrowings | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| Long-Term Borrowings | (4) Long-Term Borrowings Long-term borrowings consist of the following: December31, 2009 March31, 2009 (In millions) Senior unsecured notes due 2018 (net of $1.5 million and $1.6 million of unamortized discount at December31, 2009 and March31, 2009, respectively) $ 298.5 $ 298.4 Capital leases and other obligations 60.6 23.1 Total 359.1 321.5 Less current maturities of capital leases and other obligations (included in accrued liabilities) 18.2 7.9 Long-term borrowings $ 340.9 $ 313.6 At December31, 2009, we were in compliance with all debt covenants. |
| Income Taxes | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| Income Taxes | (5) Income Taxes Income tax expense was $36.0 million and $35.9 million for the quarters ended December31, 2009 and 2008, respectively, resulting in effective tax rates of 24.5% and 30.0%, respectively. Income tax expense was $99.5 million and $95.0 million for the nine months ended December31, 2009 and 2008, respectively, resulting in effective tax rates of 25.7% and 38.0%, 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 nine months ended December31, 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. During the quarter ended December31, 2009, the United States Tax Court scheduled a trial date in early next fiscal year. We have had settlement discussions with the IRS on certain issues and believe it is reasonably possible that discussions on these issues 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 began settlement discussions with the IRS Office of Appeals during the quarter ended December31, 2009. 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. |
| Share-Based Compensation | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| Share-Based Compensation | (6) Share-Based Compensation During the nine months ended December31, 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 2.8million shares of time-based nonvested stock units. The time-based nonvested stock units vest in annual increments over three years. At December31, 2009, we have approximately $221.1 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 2 years. Share-based compensation expense as recorded in our condensed consolidated statements of operations is summarized as follows: QuarterEnded December31, NineMonthsEnded December31, 2009 2008 2009 2008 (In millions) Cost of license revenue $ 0.7 $ 0.4 $ 1.7 $ 1.1 Cost of maintenance revenue 1.7 1.9 5.8 7.0 Cost of professional services revenue 1.0 0.9 2.8 2.4 Selling and marketing expenses 8.1 6.6 23.2 21.9 Research and development expenses 3.1 3.0 7.7 9.8 General and administrative expenses 8.0 6.1 23.9 20.0 Total share-based compensation expense $ 22.6 $ 18.9 $ 65.1 $ 62.2 |
| Stockholders' Equity | |
| 4/1/2009 - 12/31/2009
USD / shares | |
| 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 nine months ended December 31, 2009 and 2008: QuarterEnded December 31, NineMonthsEnded December 31, 2009 2008 2009 2008 (Inmillions,exceptpershare data) Basic earnings per share: Net earnings $ 110.7 $ 83.8 $ 287.3 $ 154.8 Less earnings allocated to participating securities (0.2 ) (0.3 ) (0.6 ) (0.8 ) Net earnings allocated to common shares $ 110.5 $ 83.5 $ 286.7 $ 154.0 Weighted average number of common shares outstanding 182.8 186.0 183.5 188.0 Basic earnings per share $ 0.60 $ 0.45 $ 1.56 $ 0.82 QuarterEnded December 31, NineMonthsEnded December 31, 2009 2008 2009 2008 (Inmillions,exceptpershare data) Diluted earnings per share: Net earnings $ 110.7 $ 83.8 $ 287.3 $ 154.8 Less earnings allocated to participating securities (0.2 ) (0.3 ) (0.6 ) (0.8 ) Net earnings allocated to common shares $ 110.5 $ 83.5 $ 286.7 $ 154.0 Weighted average number of common shares outstanding 182.8 186.0 183.5 188.0 Incremental shares from assumed conversions of stock options and other 3.7 2.3 3.6 3.3 Adjusted weighted average number of common shares outstanding 186.5 188.3 187.1 191.3 Diluted earnings per share $ 0.59 $ 0.44 $ 1.53 $ 0.81 For the quarters ended December31, 2009 and 2008, 4.9million and 12.0million weighted average potential common shares, respectively, have been excluded from the calculation of diluted EPS, as they were anti-dilutive. For the nine months ended December31, 2009 and 2008, 5.8million and 9.6million w |
| Guarantees and Contingencies | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| 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. We previously disclosed a lawsuit filed against us by Data Detection Systems, LLC in the United States District Court for the Southern District of Texas, Houston Division. On December17, 2009, we entered into a Non-Exclusive Patent License and Settlement Agreement with Data Detection Systems, LLC which grants us a perpetual license to the asserted patent, settles all outstanding claims among the parties and releases us and our customers from any and all claims or liability for infringement or alleged infringement of th |
| Segment Reporting | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| 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 nine months ended December31, 2009 and 2008. The prior year information has been reclassified to conform to our current segment reporting methodology. Enterprise Mainframe Service Service Management Management Consolidated Quarter Ended December31, 2009 (In millions) Revenue: License $ 136.5 $ 79.6 $ 216.1 Maintenance 140.5 119.7 260.2 Professional services 31.8 31.8 Total revenue 308.8 199.3 508.1 Direct and allocated indirect segment operating expenses 232.0 85.3 317.3 Segment operating income 76.8 114.0 190.8 Unallocated operating expenses (43.2 ) Other loss, net (0.9 ) Earnings before income taxes $ 146.7 Enterprise Mainframe Service Service Management Management Consolidated Quarter Ended December31, 2008 (In millions) Revenue: License $ 126.7 $ 66.1 $ 192.8 Maintenance 139.0 116.7 255.7 Professional services 39.9 |
| Severance, Exit Costs and Related Charges | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| 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 during fiscal 2010, principally as a result of macroeconomic conditions.Related to these collective actions, we recorded charges of $1.0million and $2.5million during the quarter and nine months ended December31, 2009, respectively, and $16.0 million and $23.9 million during the quarter and nine months ended December31, 2008, respectively. These expenses were attributable primarily to identified workforce reductions and associated cash separation packages. Activity related to the above initiatives during the nine months ended December31, 2009 is summarized as follows: Balanceat March31, 2009 Charged toExpense Adjustments toEstimates Foreign Exchange Adjustments Accretion CashPayments, Net of Sublease Income Balanceat December31, 2009 (In millions) Process and realignment initiatives: Severance and related costs $ 1.2 $ 0.1 $ (0.6 ) $ $ $ (0.3 ) $ 0.4 Facilities costs 7.7 0.6 (0.4 ) (0.1 ) 0.1 (5.9 ) 2.0 8.9 0.7 (1.0 ) (0.1 ) 0.1 (6.2 ) 2.4 General workforce reduction: Severance and related costs 7.6 4.5 (1.7 ) 0.3 (9.3 ) 1.4 Total accrued $ 16.5 $ 5.2 $ (2.7 ) $ 0.2 $ 0.1 $ (15.5 ) $ 3.8 The accruals for severance and related costs at December31, 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 2011. 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 December31, 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 2015. Projected sublease income is based on managements estimates, which are subject to change. We may incur additional facilities charges subsequent to December31, 2009 as a result of the initiatives described above. |
| New Accounting Pronouncements Not Yet Adopted | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| New Accounting Pronouncements Not Yet Adopted | (11) New Accounting Pronouncements Not Yet Adopted 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 | |
| 9 Months Ended
Dec. 31, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-12-31 |
| Entity Information (USD $) | ||
| 9 Months Ended
Dec. 31, 2009 | Jan. 25, 2010
| |
| 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 | 182,621,000 |
