Computer Associates 2009 Annual Report Download - page 83

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approximately $116 million. The remaining gross carrying amounts and accumulated amortization for identified
intangible assets that are not fully amortized are as follows:
(IN MILLIONS)
GROSS
AMORTIZABLE
ASSETS
ACCUMULATED
AMORTIZATION
NET
ASSETS
AS OF MARCH 31, 2009
Capitalized software:
Purchased $ 322 $ 167 $ 155
Internally developed 481 148 333
Other identified intangible assets subject to amortization 549 326 223
Other identified intangible assets not subject to amortization 14 — 14
Total $ 1,366 $ 641 $ 725
The gross carrying amounts and accumulated amortization for identified intangible assets at March 31, 2008 was
approximately $6,249 million and $5,517 million, respectively. These amounts include fully amortized intangible assets
of approximately $4,943 million, which is composed of purchased software of approximately $4,488 million, internally
developed software of approximately $345 million and other identified intangible assets subject to amortization of
approximately $110 million. The remaining gross carrying amounts and accumulated amortization for identified
intangible assets that are not fully amortized are as follows:
(IN MILLIONS)
GROSS
AMORTIZABLE
ASSETS
ACCUMULATED
AMORTIZATION
NET
ASSETS
AS OF MARCH 31, 2008
Capitalized software:
Purchased $ 345 $ 174 $ 171
Internally developed 397 121 276
Other identified intangible assets subject to amortization 550 279 271
Other identified intangible assets not subject to amortization 14 — 14
Total $ 1,306 $ 574 $ 732
Based on the identified intangible assets recorded through March 31, 2009, the annual amortization expense over the
next five fiscal years is expected to be as follows:
(IN MILLIONS) 2010 2011 2012 2013 2014
YEAR ENDED MARCH 31,
Capitalized software:
Purchased $ 51 $ 40 $ 28 $ 20 $ 12
Internally developed 87 83 67 53 34
Other identified intangible assets subject to amortization 53 52 32 26 21
Total $ 191 $ 175 $ 127 $ 99 $ 67
Accounting for Long-Lived Assets: The carrying values of purchased software products, other intangible assets, and other
long-lived assets, including investments, are reviewed on a regular basis for the existence of facts or circumstances, both
internally and externally, that may suggest impairment. If an impairment is deemed to exist, any related impairment loss
is calculated based on net realizable value for capitalized software and fair value for all other intangibles.
Goodwill: Goodwill represents the excess of the aggregate purchase price over the fair value of the net tangible and
identifiable intangible assets and in-process research and development acquired by the Company in a purchase business
combination. Goodwill is not amortized into results of operations but instead is reviewed for impairment. During the
fourth quarter of fiscal year 2009, the Company performed its annual impairment review of goodwill and concluded that
there was no impairment in fiscal year 2009. Similar impairment reviews were performed during the fourth quarter of
fiscal years 2008 and 2007. The Company concluded that there was no impairment to be recorded in those fiscal years.
The carrying value of goodwill was approximately $5,364 million and $5,351 million as of March 31, 2009 and
March 31, 2008, respectively. During fiscal year 2009, goodwill increased by approximately $26 million as a result of
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