CA, INC. - 10-Q filing on 2015-01-21

Fair Value Measurements (Tables)

9 Months Ended

Dec. 31, 2014

Assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s assets and liabilities that were measured at fair value on a recurring basis at December 31, 2014 and March 31, 2014:



	At December 31, 2014							At March 31, 2014
	Fair Value Measurement Using Input Types				Estimated Fair Value			Fair Value Measurement Using Input Types				Estimated Fair Value
(in millions)	Level 1		Level 2		Total			Level 1		Level 2		Total
Assets:
Money market funds	$	515	$	—	$	515	⁽¹⁾	$	1,277	$	—	$	1,277	⁽²⁾
Foreign exchange derivatives ⁽³⁾	—		30		30			—		2		2
Interest rate derivatives ⁽³⁾	—		—		—			—		8		8
Total assets	$	515	$	30	$	545		$	1,277	$	10	$	1,287
Liabilities:
Foreign exchange derivatives ⁽³⁾	$	—	$	8	$	8		$	—	$	1	$	1
Total liabilities	$	—	$	8	$	8		$	—	$	1	$	1


(1)	At December 31, 2014, the Company had approximately $515 million and less than $1 million of investments in money market funds classified as “Cash and cash equivalents” and “Other noncurrent assets, net” for restricted cash amounts, respectively, in its Condensed Consolidated Balance Sheet.


(2)	At March 31, 2014, the Company had approximately $1,277 million and less than $1 million of investments in money market funds classified as “Cash and cash equivalents” and “Other noncurrent assets, net” for restricted cash amounts, respectively, in its Condensed Consolidated Balance Sheet.


(3)	See Note H, “Derivatives” for additional information. Interest rate derivatives fair value excludes accrued interest.

Carrying amounts and estimated fair values of other financial instruments not measured at fair value on a recurring basis

The following table presents the carrying amounts and estimated fair values of the Company’s other financial instruments that were not measured at fair value on a recurring basis at December 31, 2014 and March 31, 2014:



	At December 31, 2014				At March 31, 2014
(in millions)	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Liabilities:
Total debt ⁽¹⁾	$	1,260	$	1,366	$	1,766	$	1,884
Facility exit reserve ⁽²⁾	$	21	$	23	$	29	$	33


(1)	Estimated fair value of total debt is based on quoted prices for similar liabilities for which significant inputs are observable except for certain long-term lease obligations, for which fair value approximates carrying value (Level 2).

(2)

Estimated fair value for the facility exit reserve is determined using the Company’s incremental borrowing rate at December 31, 2014 and March 31, 2014. At December 31, 2014 and March 31, 2014, the facility exit reserve included approximately $8 million and $11 million, respectively, in “Accrued expenses and other current liabilities” and approximately $13 million and $18 million, respectively, in “Other noncurrent liabilities” in the Company’s Condensed Consolidated Balance Sheets (Level 3).