Computer Associates 2007 Annual Report Download - page 100

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relating to a certain identifiable intangible asset that was acquired in conjunction with a prior year acquisition and not subject
to amortization. For fiscal year 2007, the impairment charge was reported in the “Restructuring and other” line item in the
Consolidated Statements of Operations. The balance of these identified intangible assets with indefinite lives at March 31,
2007 and 2006 was $14 million and $26 million, respectively.
The Company amortizes all other identified intangible assets over their remaining economic lives, estimated to be between six
and twelve years. The Company recorded amortization of other identified intangible assets of $57 million, $51 million and
$40 million in the fiscal years ended March 31, 2007, 2006 and 2005, respectively. The net carrying value of other identified
intangible assets as of March 31, 2007 and 2006 was $348 million and $388 million, respectively, and was included in the
“Other noncurrent assets” line item on the Consolidated Balance Sheets.
The gross carrying amounts and accumulated amortization for identified intangible assets are as follows:
(IN MILLIONS)
GROSS
ASSETS
ACCUMULATED
AMORTIZATION
NET
ASSETS
AT MARCH 31, 2007
Capitalized software:
Purchased $ 4,803 $ 4,600 $ 203
Internally developed 639 413 226
Other identified intangible assets subject to amortization 657 323 334
Other identified intangible assets not subject to amortization 14 — 14
Total $ 6,113 $ 5,336 $ 777
(IN MILLIONS)
GROSS
ASSETS
ACCUMULATED
AMORTIZATION
NET
ASSETS
AT MARCH 31, 2006
Capitalized software:
Purchased $ 4,760 $ 4,299 $ 461
Internally developed 558 363 195
Other identified intangible assets subject to amortization 628 266 362
Other identified intangible assets not subject to amortization 26 — 26
Total $ 5,972 $ 4,928 $ 1,044
Based on the identified intangible assets recorded through March 31, 2007, the annual amortization expense over the next five
fiscal years is expected to be as follows:
(IN MILLIONS) 2008 2009 2010 2011 2012
YEAR ENDED MARCH 31,
Capitalized software:
Purchased $58$48$37$25$15
Internally developed 59 56 48 37 21
Other identified intangible assets subject to amortization 62 56 51 51 31
Total $ 179 $ 160 $ 136 $ 113 $ 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.
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