Xerox 2006 Annual Report Download - page 78

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
Internal Use Software: Capitalized direct costs
associated with developing, purchasing or otherwise
acquiring software for internal use are amortized on a
straight-line basis over the expected useful life of the
software, beginning when the software is implemented.
Useful lives of the software generally vary from 3 to 5
years. Amortization expense, including applicable
impairment charges, was $73, $92, and $107 for the years
ended December 31, 2006, 2005 and 2004, respectively.
Note 11 – Debt
Short-term borrowings at December 31, 2006 and
2005 were as follows (in millions):
2006 2005
Current maturities of long-term
debt ....................... $1,465 $1,099
Notes payable .................. 20 40
Total ........................ $1,485 $1,139
We classify our debt based on the contractual
maturity dates of the underlying debt instruments or as
of the earliest put date available to the debt holders.
We defer costs associated with debt issuance over the
applicable term or to the first put date, in the case of
convertible debt or debt with a put feature. These costs
are amortized as interest expense in our Consolidated
Statements of Income.
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