IBM 2007 Annual Report Download - page 87

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85
Notes to Consolidated Financial Statements
International Business Machines Corporation and Subsidiary Companies
Goodwill
The changes in the carrying amount of goodwill, by reportable segment, for the year ended December 31, 2007, are presented in the table
below. There was no impairment of goodwill recorded in 2007:
($ in millions)
FOREIGN
BALANCE PURCHASE CURRENCY BALANCE
JANUARY 1, GOODWILL PRICE TRANSLATION DECEMBER 31,
SEGMENT 2007 ADDITIONS ADJUSTMENTS DIVESTITURES ADJUSTMENTS 2007
Global Business Services $ 3,811 $ 14 $ (5) $ — $221 $ 4,041
Global Technology Services 2,700 77 27 — 110 2,914
Systems and Technology 214 269 — — 1 484
Software 6,129 639 54 — 24 6,846
Total $12,854 $999 $76 $ — $356 $14,285
The net carrying amount of intangible assets decreased by $95
million for the year ended December 31, 2007, primarily due to the
amortization of acquired intangibles, partially offset by net increases
in capitalized software.
Total amortization was $1,163 million and $1,076 million for the
years ended December 31, 2007 and 2006, respectively. The aggregate
amortization expense for acquired intangibles (excluding capitalized
software) was $367 million and $316 million for the years ended
December 31, 2007 and 2006, respectively. In addition, in 2007 the
company retired $1,066 million of fully amortized intangible assets,
impacting both the gross carrying amount and accumulated amorti-
zation for this amount.
The future amortization expense for each of the five succeeding
years related to all intangible assets that are currently recorded in the
Consolidated Statement of Financial Position is estimated to be as
follows at December 31, 2007:
($ in millions)
CAPITALIZED ACQUIRED
SOFTWARE INTANGIBLES TOTAL
2008 $670 $324 $995
2009 338 266 604
2010 92 174 266
2011 — 124 124
2012 — 57 57
Note J. Borrowings
Short-Term Debt
($ in millions)
AT DECEMBER 31: 2007 2006
Commercial paper $ 5,831 $3,779
Short-term loans 2,714 2,355
Long-term debt — current maturities 3,690 2,768
Total $12,235 $8,902
The weighted-average interest rates for commercial paper at December
31, 2007 and 2006, were 4.4 percent and 5.3 percent, respectively. The
weighted-average interest rates for short-term loans were 4.8 percent
and 3.0 percent at December 31, 2007 and 2006, respectively.