Computer Associates 2013 Annual Report Download - page 88

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During fiscal years 2013 and 2012, the Company recorded impairments of approximately $3 million and $9 million,
respectively, for internally developed software products. No impairment was recorded for internally developed software
products during fiscal year 2011.
The Company evaluates the useful lives and recoverability of capitalized software and other intangible assets when events or
changes in circumstances indicate that an impairment may exist. These evaluations require complex assumptions about key
factors such as future customer demand, technology trends and the impact of those factors on the technology the Company
acquires and develops for its products. Impairments or revisions to useful lives could result from the use of alternative
assumptions that reflect reasonably possible outcomes related to future customer demand or technology trends for assets
within the Enterprise Solutions segment.
Depreciation and Amortization Expense: A summary of depreciation and amortization expense is as follows:
YEAR ENDED MARCH 31,
(in millions) 2013 2012 2011
Depreciation $ 104 $ 111 $ 114
Amortization of purchased software products 163 103 88
Amortization of internally developed software products 156 122 104
Amortization of other intangible assets 54 65 73
Total $ 477 $ 401 $ 379
Based on the capitalized software and other intangible assets recognized at March 31, 2013, the annual amortization
expense over the next five fiscal years is expected to be as follows:
YEAR ENDED MARCH 31,
(in millions) 2014 2015 2016 2017 2018
Purchased software products $ 100 $ 89 $ 88 $ 86 $ 83
Internally developed software products 164 144 113 80 33
Other intangible assets 49 41 27 10 5
Total $ 313 $ 274 $ 228 $ 176 $ 121
Goodwill: The accumulated goodwill impairment losses previously recognized by the Company totaled approximately
$111 million at March 31, 2013 and 2012. These losses were recognized in fiscal years 2003 and 2002. There were no
impairments recognized for fiscal years 2013, 2012 and 2011.
Goodwill activity for fiscal years 2013 and 2012 was as follows:
AT MARCH 31,
(in millions) 2013 2012
Balance at beginning of year $ 5,856 $ 5,686
Amounts allocated to loss on discontinued operations — (7)
Acquisitions 17 179
Foreign currency translation adjustment (2) (2)
Balance at end of year $ 5,871 $ 5,856
72